Matterport, Inc.

Thank you for standing by, and welcome to the Matterport Second Quarter 2021 Earnings Conference Call. At this time, all participants are on a listen-only mode. After the speakers' presentations, there will be a question-and-answer session. To ask a question at that time, please press star then 1 on your touch-tone telephone. As a reminder, today's conference call is being recorded. I would now like to turn the call over to your host, Ms. Suwon Kim, Vice President of Vets Relations. So you may begin.

Thank you. Before I begin, I'd like to remind you that today's call contains forward-looking statements within the meaning of Fidelity Securities Laws, including but not limited to statements regarding Matterport's future financial results and management's expectations and plans for the business. These forward-looking statements are subject to numerous risks and uncertainties that may cause actual results to differ materially from those discussed on today's calls. Additional information regarding the risks and uncertainties that could cause actual results to differ from forward-looking statements can be found in our filings with the SEC. Any forward-looking statements made on this call, including responses to your questions, speak only as of today, and Matterport assumes no obligation to update or revise them, whether as a result of new developments or otherwise, except as required by law. In addition, today's call may include discussion of non-GAAP financial measures. These measures should be considered as a supplement to and not a substitute for GAAP financial measures. Reconciliation of each of these non-GAAP financial measures to the most directly comparable GAAP measure can be found in today's earnings press release, which is available on the company's website. Hosting phase call are R.J. Pittman, Chairman and Chief Executive Officer of Matterport, and J.D. Fay, Chief Financial Officer. Now I would like to turn it over to R.J. to begin.

Thanks, Suwan. Good afternoon, everyone, and thank you for joining us today. I'm very excited to share our second quarter financial results with you. This was another record quarter for Matterport, as our subscriber base grew to over 400,000. and we delivered $30 million in total revenue, up 10% sequentially from the March quarter. J.D. Fay will discuss our strong second quarter financial results in more detail a bit later. I'm delighted to be joining you today on our first earnings call as a public company. We began trading on the NASDAQ under the symbol MTTR on July 23rd. This transaction generated $640 million in gross proceeds to fuel our our sizable ambitions to digitize the built world. This is a long-term opportunity, and we believe we are well positioned to seize it. Starting in Q3, we began investing the proceeds to capture the market opportunity for years to come. We remain focused on the long-term for Matterport, and this has served us well as the market for digitization of the built world continues to expand. As a public company, we will continue to invest in the future, by laying the foundation for the next stage of growth across our platform. Since this is our first earnings call as a public company, I'd like to provide a brief overview of Matterport and the market opportunity ahead. Founded in 2011, Matterport has been digitizing the built world for a decade. It began with our market-leading 3D platform that lets anyone turn a physical space into an immersive digital twin. We have been relentlessly perfecting our craft to create the most detailed, accurate, and data-rich digital twins in the industry. Our 3D reconstruction process is fully automated, powered by advanced computer vision and artificial intelligence, allowing our solution to scale with equal precision to hundreds of millions of buildings and spaces of any kind anywhere in the world. Matterport digital twins are captured from any compatible camera, from sophisticated 3D imaging equipment, such as Matterport's groundbreaking Pro2 camera, to the smartphone in your pocket. Our customer base has grown to over 400,000 subscribers, digitizing spaces in more than 150 countries and growing. We call each digital twin captured by our customers a space. And our total spaces under management, or sum as we refer to it, has increased to 5.6 million. up over 75% from a year ago. We have digitized more than 15 billion square feet of space across multiple industries, from homes, offices, museums, and schools, to factories, hospitals, and retail stores. Our total addressable market is enormous. Retail is the largest asset class in the world with an estimated value of $230 trillion. This is more than three times the value of all global equities combined. With an estimated 4 billion buildings worldwide, the built world is the largest undisrupted market with less than 1% digitized today. Within many of the 4 billion buildings, there are multiple unique spaces to digitize, yielding as many as 20 billion total spaces to capture. We believe the total addressable market opportunity for digitizing the built world is over $240 billion. With first mover and first scaler advantages, Matterport is poised to define this vast market for years to come. With the help of artificial intelligence, machine learning, and deep learning technologies, we believe additional growth opportunities are available to us as we continue to unlock powerful, spatial, data-driven property insights and analytics. This increases the total addressable market for digitization and datafication of the built world to more than $1 trillion. Our software provides customers with critical tools and insights to drive material ROI improvements across every aspect of the building lifecycle, including design, build, operate, remodel, and repair. Our platform and data solutions are universal across industries and building types, giving Matterport a significant advantage as we scale into this huge market to help increase the value of the largest asset class in the world. The Matterport Spatial Data Platform delivers value across a diverse set of industries and use cases. Large retailers can manage thousands of store locations remotely. Real estate agencies can provide virtual open houses for hundreds of properties and thousands of visitors at the same time. and property developers and insurance companies can more precisely document and assess building integrity and the construction process every step of the way with greater speed, efficiency, and precision. Matterport's value proposition delivers significant time and cost savings for our customers while providing the data insights they need to manage their spaces more effectively. Here are two examples. First, in real estate, we work with the top residential and commercial real estate companies in the business. Large residential real estate customers like Redfin, Compass, Apartments.com, and Keller Williams use Matterport to dramatically increase engagement, attract more prospects, and close business online without time-consuming physical site visits. Research shows that homes with 3D digital twins sell 30% faster and realize up to a 9% higher price compared to homes without digital twins. Similarly, in commercial real estate, companies like JLL and Cushman & Wakefield use Matterport to digitize thousands of buildings globally. By taking these assets online, our platform enables these customers to manage their global portfolio anywhere on any device. Cushman & Wakefield has increased its bookings with us by 26 times over two years. as they were able to prove out tremendous hard dollar cost savings. Second, global telecom leaders like Ericsson, Verizon, and AT&T are leveraging Matterport to manage construction and scale facilities management of their vast telecom locations globally. As you can imagine, the time expense and carbon emissions of travel to manage and develop tens of thousands of structures worldwide is very costly. With a strategic partner, we have integrated Matterport into Ericsson's enterprise systems to speed up the upgrade and rollout of 5G cell sites worldwide while improving the efficiency of large-scale facilities management. We have grown this business by more than 60% in the past year with much more to accomplish. We believe we can continue to grow the company by executing on our well-established go-to-market playbook. I'd like to briefly walk you through our four vectors of growth. First, scale our enterprise business across industry verticals. Matterport will continue to drive customer growth by expanding use cases and introducing new applications. We are particularly focused on acquiring and retaining enterprise customers. With our massive spatial data library and pioneering AI-powered capabilities, We pride ourselves on our ability to deliver value across the property lifecycle for a wide range of industries. This includes real estate, architecture, engineering and construction, travel and hospitality, insurance, industrial, retail, and facilities. We will also increase investments in industry-specific sales and marketing initiatives to increase sales efficiency and drive customer growth and recurring revenue growth in our enterprise customer segment. Second, accelerate our international expansion. The majority of the world's buildings are located outside of the United States, and we foresee massive opportunities in pursuing the digitization and datification of the building stock worldwide. While we already serve customers in more than 150 countries, we will seek to further penetrate these existing geographies in order to add their unique spatial data to our platform as more customers are acquired and more use cases adopted. This creates a powerful network effect that will allow us to expand further into the under-penetrated countries and unlock additional properties and spaces. Third, increase our investment in research and development. We will continue to invest in R&D to improve our core AI technology and data science, expand our solutions portfolio, and support seamless integration of our platform with third-party systems. We have a robust pipeline of new product releases in development for the foreseeable future. A little over a year ago, we launched Matterport for iPhone, making Matterport accessible to hundreds of millions of people. Anyone with an iPhone can download the free app to capture and collaborate on 3D spaces. Matterport for iPhone helped fuel our subscriber growth over tenfold in less than one year in the market. And just as Apple announced its new iPad and iPhone with LiDAR, we released a new version of Matterport that takes advantage of Apple's new depth sensor to increase the fidelity and accuracy of our digital twins. We also launched a strategic initiative to develop an offering for the other 85% of the world's smartphones that run the Android operating system. And not surprisingly, our customers have been asking for this too. We listened and we recently launched the Matterport Capture app for Android. making our technology available to billions of Android users and significantly reducing their cost of ownership. This release for Android dramatically expands our market reach and has the power to accelerate our international expansion efforts across Asia Pacific, Europe, the Middle East, and Africa, where Android market share is especially concentrated. We see significant potential for future customer growth, as we release more products and create additional upselling opportunities. Our final growth vector is focused on expanding partner integrations and our third-party developer ecosystem. We are fostering a strong network of partners and developers for the Matterport technology platform. Built on top of our open, scalable, and secure enterprise platform, organizations across numerous industries have been automating project workflows, enhancing customer experiences, and creating customer applications for high-value vertical use cases. We have recently announced some exciting partnerships, and I'd like to spend a few minutes highlighting three of them, PTC, Facebook, and Apex. Starting with PTC, we announced a platform integration with their Vuforia augmented reality software offerings. As you may know, PTC is a global software leader enabling industrial companies to digitally transform product and service creations. Our joint solution will give PTC customers a highly visual and interactive way to deliver digital content onto the environments captured by the Matterport platform. Our solution is commercially available through both PTC sales channels as well as Matterport direct sales channels. PTC will send us leads or their customers will come to us for their API key when they want to activate area targeting, which is a feature inside Vuforia that we enabled. Moving on to Facebook, we announced a collaboration with Facebook AI Research, through which we made the largest ever data set of 3D indoor spaces available exclusively for academic, non-commercial uses. Home robots and AI assistants need to be trained on actual spaces to get better, and this rich spatial data set has been glaringly absent before Matterport. I believe this collaboration validates the unique data that we have and our data set continues to improve as our customers digitize more spaces. And finally, we announced our partnership with Apex, a leading provider of digital store surveys to enable retail brands across the U.S. and Canada to capture, organize, and evaluate building data and information from all of their stores in one place. Apex has an impressive client roster, including household brand names like Starbucks, CVS, Home Depot, 7-Eleven, and Chipotle. Working together with Matterport and Apex, retail and restaurant brands can do full audit of a space, essentially turning imagery into structured data for usage analysis. Through object recognition, building characteristics will become searchable for better facilities management across a fleet of locations. Similar to PTC, we have a joint go-to-market motion with Apex. These are just three examples to demonstrate Matterport's strength as the spatial data platform of choice. We are rapidly expanding our developer and partner ecosystem with more announcements forthcoming. Matterport is a unique business leading the digital transformation of an entire industry. We believe the growth opportunity ahead will be measured in years and decades to be captured through our proprietary technology, thoughtful execution, and bold leadership. Quarter to quarter, we expect the market to be very dynamic as the industry evolves and the transformation takes hold. I will now turn it over to JD, who will talk about the strength of our business model and financial performance for the second quarter.