Matterport, Inc.

Good day and welcome to the Matterport Fiscal Fourth Quarter 2022 Results Conference Call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your touch-tone phone. To withdraw your question, please press star then two. Please note today's event is being recorded. I would now like to turn the conference over to Mike Knapp, Vice President of Investor Relations. Please go ahead, sir.

Thanks, and welcome to Matterport's fourth quarter and full year 2022 financial results conference call. After the market closed today, Matterport released results for the quarter and year ended December 31st, 2022. The release is available on the company's website at investors.matterport.com. This call is being recorded and webcast live. and a link to the recording can be found on the Investor Relations section of the Matterport website. Before we begin, I'd like to remind you that today's call contains forward-looking statements within the meaning of the federal 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 call. Additional information regarding the risks and uncertainties can be found in our filings with the SEC. All forward-looking statements are made as of the date of this call, and Matterport assumes no obligation to update or revise them except as required by law. In addition, financial references on this call will be on a non-GAAP basis unless otherwise indicated. These measures should be considered as a supplement to, and not a substitute for gap financial measures. Reconciliation of each of these non-gap financial measures to the most directly comparable gap measure can be found in today's earnings slides, which are available on the company's website. Hosting today's call are R.J. Pittman, Chairman and Chief Executive Officer, and J.D. Fay, Chief Financial Officer. And with that, I'd like to turn it over to R.J. to begin.

Thanks, Mike. Good afternoon, everyone, and thank you for joining us today. I am pleased to share that we have delivered record revenue of $41.1 million in the fourth quarter, up 52% from the year-ago period, with subscription revenue hitting a record of $19.3 million. Both of these figures exceeded the high end of our guidance range and demonstrate the success we can achieve as we execute on our plan to digitize the built world. This top-line increase, combined with our continued focus on operating effectiveness enabled us to post a net loss per share of $0.09 at the top end of our guidance range. In addition, our subscriber base crossed another milestone in the fourth quarter, surpassing 700,000 subs for a total of 701,000, up 39% from the year-ago quarter, while spaces under management increased to over 9.2 million spaces, up 37% over the same period. For the full year 2022, we delivered record total revenue of $136 million as enterprise demand was robust during the calendar year and more than offset a subdued US real estate market. We see the current economic environment driving more customers across facilities management, retail, AEC, insurance, and travel and hospitality towards our solutions to improve productivity and reduce costs. Increasingly, we are seeing Matterport's digital twin platform being viewed by our customers as an essential tool to maximize efficiency and unlock critical insights about the real estate worldwide. I believe the momentum we saw in the second half of 2022 is carrying through to 2023 and sets the stage for another record-breaking year. At Matterport, efficiency is a key focus for us, as it is for many other organizations facing the current economic challenges. We not only strive to improve the way we run our company, but also to support our customers in their efforts to tackle their most pressing business challenges. Our customers come from a range of industries, and many are just starting to discover the potential of our digital twin platform. That's why in the coming fiscal year, we are reinforcing our commitment to enhancing products and service adoption amongst our existing customer base. We aim to expand the ways in which our customers utilize our platform, enabling them to overcome cross-functional issues and gain new insight that will propel their businesses forward. Here are two examples. Through the acquisition of VHT Studios last year, we recently introduced Digital Pro to provide real estate professionals with a simple, all-in-one solution to market and sell properties with more speed and efficiency. We also partner with companies like AWS TwinMaker to help enterprise customers effectively manage their operations by seamlessly integrating IoT data into Matterport Digital Twins that are both photorealistic and dimensionally accurate. In simpler terms, Matterport is helping businesses and real estate firms save more time and money with their properties than ever. Later in the year, we will make property intelligence available to the public, a cutting edge AI that can analyze any property or portfolio with speed and efficiency, producing tailored insights to meet the needs of any business. We have already begun collaborating with some customers such as Airbnb, which I will touch upon later. Next, I'd like to discuss the great progress we made during the fourth quarter in more detail. Then I'll hand it over to JD Fay to discuss our financial results and outlook for 2023. We introduced the Pro3 camera in September, which has revolutionized 3D capture for the built world, setting new benchmarks for speed, accuracy, versatility, and fidelity. Equipped with cutting-edge LiDAR technology and advanced onboard software, the Pro3 offers exceptional performance in a compact and portable design. The Pro3's impressive features were well received by our customers, leading to a 51% increase in product revenue from the previous quarter. The Pro3 is just one aspect of our universal capture strategy, which allows us to create 3D digital twins from almost any capture device. This is because our solution is powered by Cortex, our AI-powered 3D reconstruction software that automatically generates thousands of digital twins every day with no humans in the process. Companies choose Matterport because of our unique ability to deliver precision results with such incredible speed and efficiency. And because of Matterport turns buildings into data, our digital twins comprise so much more than photography. We have the data to unlock new information about a building or space of any shape and size. making it available to our customers instantly from anywhere in the world. One instance of our value added insight was highlighted in Airbnb's 2022 winter release in November. Airbnb announced that it is using our property intelligence solution to analyze and verify a selection of Airbnb homes to confirm they meet accessibility standards for guests with mobility requirements. The new collection of listings is called the adaptive category. showcasing listings that have step-free access to the home and to one or more bedrooms and bathrooms, as well as other accessibility features. These property insights on Airbnb's platform are made possible through Matterport's AI-powered property intelligence technology. This proprietary technology automatically converts digital twins into valuable insights on a large scale, performing tasks such as identifying objects, including chairs, or light fixtures, measuring door frame widths, pathways, room size, and much more. This technology will help companies improve their operational efficiency by allowing them to access essential insights and manage their properties from their digital twin from anywhere in the world. During the quarter, we were thrilled to attend the AWS reInvent 2022 conference hosted by Amazon to jointly unveil our new solution with AWS TwinMaker. This integration allows enterprise clients to effortlessly integrate IoT data into visually immersive, dimensionally accurate Matterport digital twins. The new solution supports the digital transformation efforts of enterprise customers and provides a convenient and cost-effective method for optimizing building operations, enhancing production, and improving equipment performance. The integration enables real-time remote monitoring, predictive maintenance, root cause analysis, virtual equipment design, and virtual training. There is an immense opportunity for enterprise customers, particularly in the manufacturing and smart building sectors, to leverage digital twins to gain deeper insights into their operations while increasing efficiency across the organization. And it didn't take long to catch on. Just last month, we announced that John Deere selected Matterport's digital twin platform and 3D capture technology to build a virtual operations center for remote management of over 60 facilities across North America, Europe, and India. Matterport's high-fidelity digital twins enable John Deere's facilities and operations teams to remotely track assets, materials, and project progress, plan for site changes, monitor factory vehicles, integrate real-time IoT data streams, and enable a single source of truth for effective global remote collaboration. Collaboration can occur in real time or across working time zones within the Matterport Digital Twin to improve productivity and accelerate cycle times, all while reducing the need for costly site visits. The digital transformation of the built world is just beginning, and our enterprise customers are quickly realizing the potential of our technology. and we are continuing to see significant expansion with our enterprise customers. And in the fourth quarter, nearly half of our subscription revenue came from industries outside of residential real estate, and nearly a quarter of the Fortune 1000 companies were using Matterport. Moving on to services. With the successful integration of BHT, we are extending our industry leadership with a more integrated, customer-focused approach to marketing properties online. Our new offering includes a comprehensive digital marketing solution that enhances our ability to promote property listings to their full potential. We call it Matterport Digital Pro. Introduced to the market last week, Digital Pro is the most innovative and affordable all-in-one property marketing solution available. Offering professional grade, high definition photos, a 2D floor plan, a 3D tour, and a preview video for customers that's perfect for sharing on social media, all delivered within one to two business days. Everything is produced entirely from one digital twin in one appointment for one flat rate. Digital Pro is designed for agents who want to stand out at the listing presentation and use a more tech-forward approach to their marketing. Marketing and promoting real estate has never been easier and more comprehensive. The initial response to DigitalPro has been extremely encouraging, and we're just getting started. Now, before I hand it over to JD, I would like to bring attention to our inaugural ESG report, which, among many important aspects, showcases our company's values and dedication to making every building, every space more valuable and accessible. We are driving the digitization of the built world and making it virtually accessible to everyone. At Matterport, creating a more accessible and equitable world is not just a goal, but it's at the core of our business model. We believe in making our 3D capture technology widely available to anyone with a smartphone to reach more people and break down barriers. This purpose is reflected in our workplace culture, where we have always strived to attract diverse talent provide equitable career growth opportunities, and create a welcoming and inclusive environment for all of our employees. Moreover, our digital twins have the potential to play a crucial role in reducing carbon footprint. This is truly inspiring. In 2021, our solution helped prevent the release of approximately 374 tons of CO2 into the atmosphere. which is the equivalent to the emissions of over 80,000 cars driven for a year straight. From this seminal report, it is clear that our digital twins hold tremendous power in combating carbon emissions and promoting sustainability. By facilitating remote operations and reducing the need for business travel, our platform is fast becoming a quantifiable testament to this. With continued efforts, our platform has the potential to play an important role in the fight against climate change and help businesses achieve their sustainability goals while saving time and money all along the way. I would now like to turn it over to JD to discuss our financial performance for the fourth quarter in the outlook for Q1 and the full year 2023.