Matterport (MTTR) Reports Q3: Everything You Need To Know Ahead Of Earnings

Adam Hejl /
2022/11/09 2:15 am EST

Real estate focused virtual reality platform Matterport (NASDAQ:MTTR) will be announcing earnings results tomorrow after the bell. Here's what you need to know.

Last quarter Matterport reported revenues of $28.4 million, down 3.46% year on year, missing analyst expectations by 6.22%. It was a mixed quarter for the company, with very optimistic guidance for the next quarter but declining revenue growth. The company added 54,000 customers to a total of 616,000.

Is Matterport buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Matterport's revenue to grow 29.9% year on year to $35.9 million, improving on the 10.2% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.14 per share.

Matterport Total Revenue

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company missed Wall St's revenue estimates twice since going public.

Looking at Matterport's peers in the vertical software segment, some of them have already reported Q3 earnings results, giving us a hint of what we can expect. 2U's revenues decreased 0.05% year on year, beating analyst estimates by 0.09% and Upstart reported revenue decline of 31.2% year on year, missing analyst estimates by 7.2%. 2U traded up 1.88% on the results, and Upstart was down 24.00%. Read our full analysis of 2U's results here and Upstart's results here.

The fears around raising interest rates have been putting pressure on tech stocks and while some of the software stocks have fared somewhat better, they have not been spared, with share price declining 9.2% over the last month. Matterport is down 21.8% during the same time, and is heading into the earnings with analyst price target of $8.10, compared to share price of $2.97.

One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.

The author has no position in any of the stocks mentioned.