Matterport, Inc.

Fourth quarter 2023 total revenue was $39.5 million, in line with guidance. Subscription revenue was $23.7 million, up 23% year over year and above the high end of guidance, and represented 60% of total revenue versus 47% a year ago. Q4 total gross margin was 53% versus 36% in the year-ago period; full-year non-GAAP gross margin was 52%, up 700 basis points. Q4 non-GAAP loss per share was $0.04, a 56% improvement year over year; full-year non-GAAP loss per share was $0.22, a 46% improvement. Full-year 2023 revenue was $157.7 million, up 16% year over year, with subscription revenue up 18% and services revenue up 38%. Cash and investments ended the quarter at $423 million, with cash used in operations of $10.4 million, a 46% improvement year over year. For Q1 2024, guidance is revenue of $39 million to $41 million, subscription revenue of $24 million to $24.2 million, and non-GAAP loss per share of $0.02 to $0.04. For full-year 2024, guidance is revenue of $173 million to $183 million, subscription revenue of $104 million to $106 million, and non-GAAP loss per share of $0.07 to $0.11. Management said it expects to reach positive cash flow from operations later this year.

RJ Pittman framed 2023 as a transformation year, emphasizing restructuring, greater operating discipline, and a sharper focus on customer success and product-market fit. He repeatedly highlighted Property Intelligence and the broader AI strategy as a major growth opportunity, saying the company’s spatial data library and digital twin data set it apart. His tone was upbeat and confident, and he said 2024 should be the company’s most promising year yet, with positive cash flow expected within the year.

JD Fay emphasized the financial mix shift toward subscriptions, noting subscription revenue was 60% of total revenue in Q4, up from 47% a year earlier, and that ARR reached $94.7 million. He pointed to margin progress, including Q4 gross margin of 53% and a 300 basis point improvement in subscription gross margin, aided by pricing actions and lower cloud hosting costs. He also highlighted operating expense discipline, with Q4 OpEx at $38.2 million, down 12%, and cash used in operations improving to $10.4 million; the company ended with $423 million in cash and investments and no debt. He linked 2024 guidance to continued subscription growth, higher margins, and tighter spending, with positive cash flow from operations targeted later in the year.

Analysts focused on how Matterport plans to monetize Property Intelligence, whether the launch changes pricing, and what adoption assumptions are embedded in 2024 guidance. Management said the feature is included in current subscriptions today, so the first driver is adoption by existing customers, followed by add-on services and then incremental new customer acquisition; current pricing is unchanged for now. Questions also addressed partnerships, sales cycles, and the drivers of net dollar expansion; management said partnerships like Autodesk, AWS, and Procore act as a parallel co-selling channel, and that the 109% NDR was supported by both enterprise expansion and new customer adds. On pricing, RJ said last year’s increase contributes about half of the existing-base expansion, while future AI features could support premium tiers or add-ons, though the company wants to preserve strong customer ROI.