Matterport Announces Second Quarter 2022 Financial Results, With Stronger

The dividend yield assumption is based on our expectations about our anticipated dividend policy. The risk-free interest rate is based on the implied yield available on U.S. Treasury zero-coupon issues with maturities that approximate the expected term. During the three and six months ended June 30, 2022, the Company recorded of $2.4 million and $5.3 million, respectively, of stock-based compensation expense related to the 2021 ESPP. As of June 30, 2022, unrecognized compensation cost related to the 2021 ESPP was $4.8 million, which is expected to be recognized over the remaining weighted-average service period of 1.4 years.

  • The decrease in revenue is attributable to a decrease in license and product revenue, partially offset by growth from subscriptions and service revenues.
  • We also offer data license solutions that allow certain customers to use our digital twin data for their own needs.
  • As of June 30, 2022, the weighted-average remaining lease term was 2.6 years and the weighted-average discount rate was 3.3%.
  • They have that recurring revenue that Brian loves, all their subscription-based revenue.
  • Consists of non-GAAP adjustment of unweighted average common stock issued and converted from Matterport, Inc.’s previously issued and outstanding shares of convertible preferred stock and common stock warrants prior to the completion of the merger.

In recent years, however, the commercial real estate industry has begun to see the upside to using proptech. Matterport’s growth has also been helped greatly by the COVID-19 pandemic, which greatly limited in-person tours of spaces. In turn, the commercial real estate industry was prompted to adopt additional tech to fill vacancies.

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An easing to the chip crunch means automakers can have more vehicles to sell, which helps Open Lending by extension, Cramer explained. The GHVI and Matterport merger is confirmed, while a shareholder vote ultimately approves the merger. However, SPACs are made for the sole purpose of acquiring another company and shareholders don’t usually reject the merger. The Internal Revenue Service has proposed rule changes that could significantly impact how beneficiaries will manage inherited retirement accounts. The proposed regulations, which were published last month, caught some in the financial services industry by surprise, as they offer a … Continue reading → The post The IRS May Make Your Roth IRA More Valuable With This RMD Rule Change appeared first on SmartAsset Blog.

The period-to-period comparison of results is not necessarily indicative of results for future periods. We offer a comprehensive set of solutions designed to provide our customers with access to state-of-the-art capture technology that produces the high-quality data necessary to process images into dimensionally accurate digital twins. We derive product revenue from sales of our innovative 3D capture product, the Pro2 Camera, which has played an integral part in shaping the 3D building and property visualization ecosystem. Recently, we also have begun to offer capture devices and accessories manufactured by third parties and Matterport Axis, a cost-effective motor-mount for smartphones. The majority of our subscription services are billed either monthly or annually in advance and are typically non-refundable and non-cancellable.

Unity: ironSource Merger Is A Step In The Wrong Direction – Seeking Alpha

Unity: ironSource Merger Is A Step In The Wrong Direction.

Posted: Mon, 18 Jul 2022 07:00:00 GMT [source]

Investing in shares of our common stock or warrants involves risks that are described in the “Risk Factors” section of the prospectus. GHVI stock has dropped 12 percent in the past month and retreated more than 50 percent from its peak. Investors have been trading of SPAC stocks more cautiously after reports the SEC is closely monitoring SPAC deals, and SPAC stocks tend to adjust to trade near their IPO price as merger date draws close. For example, CCIV stock has retreated nearly 70 percent from its peak as Lucid Motors merger nears. IPOE stock also has pulled back as investors await SoFi merger closing date.

Matterport Spac Merger Imminent

Immediately following the Closing, 670.0 million shares were authorized for issuance at $0.0001 par value, including 640.0 million shares of common stock and 30.0 million shares of preferred stock. There were 242.0 million shares of common stock outstanding with a par value of $0.0001 upon the Closing. Indemnification—In the ordinary course of business, the Company enters into certain agreements that provide for indemnification by the Company of varying scope and terms to customers, vendors, directors, officers, employees and other parties with respect to certain matters. Indemnification includes losses from breach of such agreements, services provided by the Company, or third-party intellectual property infringement claims.

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• We did not effectively design and maintain controls over information technology (“IT”) general controls for information systems that are relevant to the preparation of our consolidated financial statements. We recognized a change in fair value of contingent earn-out liability of $136.0 million for the six months ended June 30, 2022, primarily due to the decrease in the fair value of the Company common stock. As of January 18, 2022, all Earn-out triggering events were achieved, and the Company issued a total of 21.5 million shares of common stock for Earn-out Shares, net of tax withholding to eligible recipients on February 1, 2022. Represented the fair value of the Earn-out Awards and the Company reclassified the outstanding Earn-out liability to additional paid-in capital as the Earn-out shares become issuable as a fixed number of Common Shares. There will be no incremental income in the consolidated statements of operations for the fair value adjustments for the outstanding earn-out liability as all the Earn-out Shares were issued February 1, 2022.

Legacy Matterport stockholders and certain holders of Legacy Matterport stock options and RSUs are entitled to receive a number of Earn-out Shares comprising up to 23.5 million shares of Class A common stock in the aggregate. There are six distinct tranches, and each tranche has 3,910,000 Earn-out shares. Pursuant to the Merger Agreement, Common Share Price means the share price equal to the volume weighted average price of the Matterport Class A common stock for a period of at least 10 days out of 30 consecutive trading days ending on the trading day immediately prior to the date of determination. If the Common Share Price exceeds $13.00, $15.50, $18.00, $20.50, $23.00, and $25.50, the Earn-out shares are issuable during the period beginning on the 180th day following the Closing and ending on the fifth anniversary of such date (the “Earn-out Period”). The Earn-out shares are subject to early release if a change of control that will result in the holders of the Company common stock receiving a per share price equal to or in excess of the price target as above (collectively, the “Earn-Out Triggering Events”). Current portion of operating lease liabilities is included in accrued expenses and other current liabilities in the condensed consolidated balance sheet.

In addition, the prepaid rent balance as of the date of adoption increased the opening balance of ROU assets. The deferred rent and prepaid rent balances were derecognized as of the date of adoption and no adjustment was made to retained earnings. The adoption of the standard did not have a material impact on our condensed consolidated statement of operations, comprehensive income , changes in shareholders’ equity or cash flows. • We did not effectively design and maintain controls over the period-end financial reporting process, to achieve complete, accurate and timely financial accounting, reporting and disclosures, including segregation of duties and adequate controls related to journal entries, account reconciliations and accounting for significant, or unusual transactions. We have incurred negative cash flows from operating activities and significant losses from operations in the past. We expect to continue to incur operating losses at least for the next 12 months due to the investments that we intend to make in our business.

Should You Buy Ghvi Stock Before Matterport Merger Date?

The Company was required to make monthly interest-only payments starting December 2017 and 36 equal installment payments of principal starting October 2018 through September 2021. The term loan bore interest at a floating per annum rate equal to the greater of 1.0% above the Prime Rate; and 5.25%. All six Earn-out Triggering Events occurred as of January 18, 2022, which resulted in the Company issuing an aggregate of 21.5 million Earn-out Shares to the eligible matterport merger Legacy Matterport stockholders and Legacy Matterport RSU and stock option holders, which reflects the withholding of approximately 2.0 million Earn-out Shares to cover tax obligations. Refer to Note 14 “Contingent Earn-out Awards” and Note 15 “Stock Plan” for additional information. The Company had restricted cash of nil and $0.5 million as of June 30, 2022 and December 31, 2021. The restricted cash was cash deposits restricted under the 2020 term loan.

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The Company’s chief operating decision-maker is its Chief Executive Officer, who reviews financial information presented on a consolidated basis for purposes of making operating decisions, assessing financial performance, and allocating resources. Refer to Note 4, for information regarding the Company’s revenue by geography. Substantially all of the Company’s long-lived assets are located in the United States. Our common stock trades on The Nasdaq Global Market (the “Nasdaq”) under the ticker symbol “MTTR”.

Pension plan benefits are based primarily on participants’ compensation and years of service credited as specified under the terms of the plan. The Company made $0.1 million and $0.2 million matching contributions to the U.K. Pension plan for the three and six months ended June 30, 2022, respectively. The match contributions for the three and six months ended June 30, 2021 were approximately $0.1 million.

Earn-out Shares issuable to certain holders of Legacy Matterport stock options and RSUs in respect of such stock options and RSUs (the “Earn-out Awards”) are subject to forfeiture and are accounted for in accordance with ASC 718. The Company measures and recognizes stock-compensation expense based on the fair value of the Earn-out Awards over the derived service period for each tranche. The Company’s accounts receivable represent amounts due from customers arising from revenue and are stated at the amount the Company expects to collect from outstanding balances. On a periodic basis, the Company evaluates accounts receivable estimated to be uncollectible and provides allowances, as necessary, for doubtful accounts. As of June 30, 2022 and December 31, 2021, the allowance for doubtful accounts was $0.4 million and $0.3 million, respectively. The registrant had 283,775,683 shares of Class A common stock outstanding as of August 4, 2022.

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Digital transformation has made a powerful and lasting impact across every business and industry today. Nevertheless, the global building stock remains largely offline today, and we estimate that less than 0.1% is penetrated by digital transformation. We were among the first to recognize the increasing need for digitization of the built world and the power of spatial data, the unique details underlying buildings and spaces, in facilitating the understanding of buildings and spaces. We estimate our total addressable market to be more than four billion buildings and 20 billion spaces globally, yielding a more than $240 billion market opportunity. The Company is an “emerging growth company” as defined in Section 2 of the Securities Act, and has elected to take advantage of the benefits of the extended transition period for new or revised financial accounting standards.

License revenue—We provide spatial data to customers in exchange for payment of a license fee. Under these license arrangements, customers take right to possession of the spatial data and pay a fee for an agreed scope of use. All previously issued common stock warrants were fully vested and exercisable as of December 31, 2020. Purchase Obligation—The Company has purchase obligations, which includes agreements and issued purchase orders containing non-cancelable payment terms to purchase goods and services. On October 26, 2017, the Company amended the 2015 Amended and Restated Agreement with the lender (the “2017 Amendment”) for an additional term loan up to $1.5 million (“2017 Term Loan”).

Interest expense decreased for the three and six months ended June 30, 2022 compared to the three and six months ended June 30, 2021, primarily due to the repayment of our outstanding loans during the year ended December 31, 2021. We believe that our growth and financial performance are dependent upon many factors, including the key factors described below, which are in turn subject to significant risks and challenges. We serve customers of all sizes, at every stage of maturity, from individuals to large enterprises, and we see opportunities for growth across all of our customer segments.

Matterport’s platform comprising innovative software, spatial data-driven data science, and 3D capture technology has broken down the barriers that have kept the largest asset class in the world, buildings and physical spaces, offline and underutilized for so long. The Company was incorporated in the state of Delaware in 2011 and is headquartered in Sunnyvale, California. The accompanying notes are an integral part of these unaudited condensed consolidated financial statements. Management identified material weaknesses in our internal control over financial reporting. A material weakness is a deficiency or a combination of deficiencies in a company’s internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of the company’s annual or interim financial statements will not be prevented or detected on a timely basis.

As of June 30, 2022, there were 1.7 million Private Warrants remaining outstanding as a result of the exercise or redemption activities of our Public warrants. Gross profit decreased for the three and six months ended June 30, 2022 compared to the same periods in 2021, primarily due to the decrease in license gross profit in line with the minimum license revenue transactions and the decrease in the volume of the product revenue for the periods presented. Product revenue decreased for the three and six months ended June 30, 2022 compared to the same period in 2021. Although we believe demand for our products remained strong in the quarter, based on the backlog of open orders, the decrease was primarily due to global supply chain constraints. Interest income consists of interest income earned on our cash and cash equivalents and investments.

For the three and six months ended June 30, 2022, the total operating lease costs were $0.6 million and $1.0 million, respectively, which included immaterial short-term lease costs. Total variable lease costs were immaterial during the three and six months ended June 30, 2022. The total operating and variable lease costs were included in cost of goods sold, research and development, and selling, general and administrative expenses in the Company’s unaudited condensed consolidated statement of operations. Amortization expense was $2.7 million and $1.2 million for three months ended June 30, 2022 and 2021, respectively, of which $2.4 million and $1.0 million was recorded to costs of revenue related to subscription and $0.3 million and $0.2 million to selling, general and administrative in the condensed consolidated statements of operations, respectively. Amortization expense was $4.8 million and $2.4 million for the six months ended June 30, 2022 and 2021, respectively, of which $4.2 million and $2.0 million was recorded to costs of revenue related to subscription and $0.6 million and $0.4 million to selling, general and administrative in the condensed consolidated statements of operations, respectively. With the exception of standards the Company elected to early adopt, when permissible, the Company has elected to adopt new or revised accounting guidance within the same time period as non-public business entities, as indicated below.

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