The virtual tour software company posted $38 million in revenue, up from $28.4 million in Q2, while avoiding headwinds that have ensnared others in the real estate space, according to earnings on Thursday.
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Matterport posted 37 percent growth in third-quarter revenue while reporting a net loss of $58.2 million, down from a $64.6 million loss during the same period last year, according to an earnings call Thursday.
The virtual tour software company posted $38 million in revenue during the third quarter of 2022, up from $28.4 million in Q2, narrowly ducking the economic headwinds that have ensnared others in the real estate industry, many of which have tallied sharp declines in the three months ending Sept. 30.
“The environment remains fluid, and we continue to carefully monitor and address challenges as they arise,” Matterport Chief Financial Officer JD Fay said during the earnings call. “Our product revenue expectations are curtailed more by supply availability than demand.”
The company completed the acquisition of VHT Studios in the third quarter, adding to its portfolio a startup specializing in high-quality photography and other marketing services for brokers and agents. It also unveiled a new camera, the Pro3, during the quarter.
In recent years, Matterport has focused on strengthening its value proposition and collecting market share by providing the technology to create “digital twins” of buildings and outdoor spaces, which can be used to offer 3D tours on listings. On Thursday, Matterport CEO RJ Pittman talked up the benefits of digitizing the built world, including sports stadiums, arenas, homes and outdoor spaces.
“Everybody that’s doing residential real estate marketing is looking for the total package,” Pittman said, adding that Matterport is prepared to weather a downturn by offering streamlined tech, hosting and services to brokerages and agents. “Sometimes they get it from one, two or three different sources. Today they can get it from a single one, and at a more competitive price.”
Fay said sales have been strong and a number of customers who were waiting for a Pro2 camera have decided to upgrade to the new version.
“It was a meaningful contributor to product revenue in the third quarter, but still a minority of the revenue,” Fay said.
Matterport has been profitable in the past and has in recent years chosen to make acquisitions and grow its top line, executives said Thursday. The company expects revenue to grow slightly in the fourth quarter, to between $39 million and $41 million.
Pittman added that the company has proof that home listings with digital twins sell faster and at a higher price than those without.
The company will continue watching its expenses while bringing in more subscribers for its services and growing its overall revenues, Pittman said. He repeated his belief that Matterport was set up for any future downturn because it offered brokerages, agents and other customers cost savings, efficiencies and productivity gains.
“More efficient and more effective property marketing is more critical than ever,” Pittman added.