Matterport: Digital Transformation Hiccups
- Matterport growth has been clipped, but the company maintains the long-term potential in digital spaces.
- The business is quickly shifting to subscription services and mobile apps to overcome some supply constraint issues.
- The stock trades at a more reasonable valuation with the forward EV/S multiple dipping below 10x.
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Within months, immersive realty play (MTTR) has fallen over 70%. The company has been an interesting play since going public in early 2021, but the stock valuation never worked until after this massive selloff. My investment thesis tilts more Bullish on the stock on this weakness below $10.
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Update - Feb. 16, 2022
Not what the market wanted to see. Can't imagine the people holding from $30 when the stock was priced for insane growth.
-Matterport press release (NASDAQ:MTTR): Q4 Non-GAAP EPS of -$0.10 in-line.
-Revenue of $27.08M (+14.8% Y/Y) .
-Total subscribers increased 98% to 503,000 from year-ago period
-Annualized recurring revenue (NYSE:ARR) grew to $66 million
-Spaces Under Management (NYSE:SUM) grew to 6.7 million, up 54% compared to fourth quarter of 2020 the company expects continued growth in 2022, with total revenue between $125 and $135 million. Recurring subscription revenue is expected to be between $80 and $82 million, translating to 31% to 34% year-over-year growth.
-For the first quarter, the company expects total revenue to be between $25.5 and $27.5 million. Recurring subscription revenue is expected to be between $17.1 and $17.4 million, translating to 24% to 26% year-over-year growth.