As we continue to shift towards digital solutions, Matterport (MTTR, Financial) is putting itself in a great position with its pioneering technology. Digital twins are becoming increasingly popular for businesses, and more and more companies are turning to Matterport for their renderings. With the growing adoption of this technology and further developments in the coming years, it's hard to believe Matterport stock has been suffering in 2022, but there appears to be light at the end of the tunnel. With an expected acceleration in positive growth, 2023 could be a great year for Matterport.
2022 was another down year for stocks
This year has been a challenging one for the stock market. After a tumultuous second half of 2021, most investors hoped to see solid gains in 2022 and more stability overall. Instead, the economic issues, high inflation and the Federal Reserve's hawkish stance combined to give the markets a bearish tilt and high volatility, factors which could persist into 2023 as well.
A respite from the market turbulence felt this year would surely be welcome by many traders. Yet, to get there, it's essential that economic growth also returns and provides an atmosphere of confidence within which investors can move forward with certainty.
In this environment, I think Matterport is a great value opportunity, especially after shares have fallen more than 86% this year. The company already has over 657,000 subscribers, a solid base to build on in the future, and it expects huge growth in its total addressable market.
Finishing off the year on a high note
Matterport's success in 3D digital twin technology has been unparalleled. It is the go-to source for real estate photography and virtual tours, utilizing its Pro3 camera, Matterport Axis hardware products, and other third-party cameras. This ability to effectively utilize multiple products sets it apart in the tech sphere. For those looking to make an investment choice with a bright future ahead, Matterport should be a strong consideration. With a well-established presence in one of the fastest-growing segments in tech and a dedication to embracing new technology, its success looks likely to continue into the foreseeable future.
In the last few months, Matterport has given investors plenty of reasons to smile despite the issues surrounding the broader market.
First, it hired two key executives, Matthew Zinn as joining as Chief Legal Officer. He is a leader in many spheres of the corporate and legal world. His impressive work experience includes serving at 8x8 (EGHT, Financial) a leading Software-as-a-Service provider of voice and video solutions, as Chief Legal Officer. He also spent 16 years at TiVo, handling some of the most crucial and demanding roles in their digital video recording pioneer. With such experience and exposure under his belt, Matthew Zinn is a good hire for the company.
Meanwhile, Mike Knapp joins as Vice President and Head of Investor Relations. He has built a successful career in investor relations and finance over the last two decades, serving as the Vice President of Investor Relations of two leading companies. His most recent role was at Knowles Corporation (KN, Financial), a market leader in advanced audio solutions. With several accomplishments under his belt, Knapp is well-positioned to excel in his current role at Matterport.
These hires come on the heels of a very successful quarterly report for Matterport. The third quarter of 2022 saw growth across the board for Matterport. Record gains in the company's subscription and services business drove a 37% increase in top-line revenue year over year, bringing it to $38 million. But that was only the beginning – looking forward, fourth-quarter estimates predict a 48% increase to $40 million as more firms adopt Matterport's digital twin platform. This platform creates 3D versions of real-world objects and spaces, giving customers an entirely new way to interact with the environment around them. Whether it's real estate brokers using virtual home tours or builders leveraging improved safety protocols, there's no slowing down this innovative technology from Matterport.
The rapid growth of Matterport's subscriber base should indicate to many investors that the company has a massive opportunity for further growth. In the last quarter, the number of subscribers rose by 50%, reaching 657,000 users, highlighting how strongly the service has gained traction. With such a promising sign, it looks like Matterport is on its way to becoming a major player in their field; although expected, there could be some short-term hiccups along the way; experience indicates that this strong base provides solid support for long-term gains.
A huge addressable market
3D mapping and modeling technology are necessary for many industries to succeed in today's digital-driven world. This is evidenced by the incredibly high rate at which the global 3D mapping and modeling market is expanding, projected to reach new heights in the decades to come.
The global digital map market has seen tremendous growth over the past decade, and this trend is set to continue. According to a report from Straits Research, the market size was valued at $9.13 billion in 2022 and is projected to reach $55.2 billion by 2031, with a CAGR of 12.5%. North America has been the leading contributor to this growth and will likely remain so in the foreseeable future. Digital maps are becoming increasingly essential for various industries, such as automotive, defense & security, energy & utilities, and logistics & transportation, due to their capability of providing real-time location data about assets within these sectors. The increasing use of mapping solutions for navigation is also driving the market demand for digital maps over other geographical database solutions. However, stringent data ownership and privacy regulations may impede the growth of this efficient technology in certain markets worldwide. Apart from regulation, though, it is full steam ahead.
Companies such as Matterport are sure to reap the benefits of this success, growing their services and technologies exponentially alongside the ever-increasing demand for 3D models. As businesses scramble to stay competitive, using 3D mapping and modeling to simplify complex processes continues to be a hugely beneficial investment that will certainly continue into the foreseeable future.
Takeaway
Matterport has been described as revolutionary for the real estate industry. Not only does it cut back on the time required to walk through properties, but it also allows real estate agents and potential buyers to view every square inch of a potential property from the comfort of their homes.
What's more, Matterport is relatively simple and cost-effective, making this technology too valuable to ignore for anyone in the real estate world. It can help take businesses to the next level by giving customers a realistic representation of a property before they even set foot in it. For this reason and many others, Matterport is quickly becoming an essential part of the real estate industry.
Despite being beaten down by the bearish market conditions, this is an ideal time for investors to step in and capitalize on the rare opportunity arising from a stock price currently trading at depressed levels. This presents a unique opportunity for investors with patience and foresight to purchase shares of a company whose market value has been adverse while its true fundamentals remain intact. Taking advantage of this window now could serve as a great boon for savvy investors years later when Matterport's stock inevitably recovers.
