Shares of Matterport (MTTR +0.00%) fell 17.3% on Wednesday after the spatial data platform company announced weaker-than-expected quarterly revenue and a disappointing forward outlook.
NASDAQ: MTTR
Key Data Points
Matterport's decent quarter left the market underwhelmed
Matterport's fourth-quarter 2023 revenue declined 3.9% year over year to $39.5 million, technically within (but below the midpoint of) its guidance for a range of $39 million to $41 million. Most analysts were modeling revenue of exactly $40 million. On the bottom line, that translated to an adjusted (non-GAAP) net loss of $0.04 per share, in line with expectations.
Matterport Chairman and CEO RJ Pittman noted that subscription revenue growth accelerated to a better-than-expected 23% year over year, reaching $23.7 million during the quarter. Matterport also achieved a strong dollar-based net retention rate of 109%, marking the metric's highest level in two years.
What's next for Matterport investors?
For the first quarter of 2024, Matterport issued guidance for revenue ranging from $39 million to $41 million -- below Wall Street's consensus estimates for $41.2 million -- including subscription revenue of $24 million to $24.2 million. That should help its adjusted net loss per share narrow to a range of $0.04 to $0.02, which was in line with analysts' expectations.
For full-year 2024, Matterport called for revenue of $173 million to $183 million -- which is technically in line with estimates -- assuming subscription revenue of $104 million to $106 million.
It seems, then, that the market is penalizing Matterport for its slightly weaker-than-expected start to the new year. If Matterport delivers on its full-year outlook when all is said and done in 2024, this pullback might prove to be temporary.
