Despite a bunch of insider buying last week, there was only one company with an executive with a history of being on the right side of the trade… Matterport, Inc. (MTTR). Director Jason Krikorian sold more than $21.6 million of MTTR between $5.40 and $4.32 from May to September 2022. (1) After a sting of four consecutive Krikorian sales, Matterport dropped to a low of $2.20 on May 3, 2023.
Matterport focuses on digitization and datafication of the built world. The company offers Matterport Capture Services, a fully managed solution for enterprise subscribers; Smartphone Capture, a smartphone capture solution for both iOS and Android; Matterport Pro3, a 3D camera that scans properties; Matterport Pro2, a 3D camera that captures spaces; and 360 Cameras.
It also provides Matterport Axis, a motorized mount that can be used with the Matterport Capture app to capture 3D digital twins of any physical space with increased speed, precision, and consistency. It offers solutions for residential and commercial real estate, facilities management and retail, AEC, insurance and repair, and travel and hospitality. Think, those 360-degree pictures on real estate sites like Zillow.
The software as a service company’s stock price recently got smacked down following its most recent quarterly results. Despite delivering solid revenue growth and reporting results near the top end of guidance, MTTR shares fell from August 8, 2023’s closing price of $3.14 to August 9, 2023’s final print of $2.68. (2)
JD Fay, Matterport Chief Financial Officer (CFO) provided the following guidance, “Looking forward, our recent restructuring aims to fast-track our path to operational cash flow profitability to 2024, a full year ahead of our previous plan. These difficult and decisive steps reflect our dedication to constructing a sustainable business emphasizing long-term growth and profitability.” (3)
Following the fall, Krikorian and director Peter Hebert jumped in MTTR on August 22 and 18, respectively. Herbert bought 50,000 shares at $2.49, investing $124,995. (4) Krikorian acquired 100,000 shares at $2.45 for a total of $245,940. (5)
While CFO Fay expects Matterport to show operating cash flow profitability next year, Wall Street anticipates the company losing $0.14 in 2024 versus this year’s estimated loss of $0.25. Sales forecast sales are slated to rise to $181.24 million in 2024 from $156.86 this year, a 15 percent increase for both years. (6) Analysts see sales growth and reduced losses pushing the stock to $4.80 in a year. (7) MTTR trades at $2.50 as we type.
Overall: It’s been our experience that companies that transition to profitability can be highly profitable times for shareholders. Profitability could come as soon as next year, according to the company’s most recent guidance.
Matterport, Inc. (MTTR) is only appropriate for investors with above-average risk tolerance and a time horizon that extends into 2025.
Rich Meyers
1 – https://www.secform4.com/insider-trading/1826030.htm
2 – https://finance.yahoo.com/quote/MTTR/history?p=MTTR
3 – https://finance.yahoo.com/news/matterport-announces-second-quarter-2023-200500934.html
4 – https://www.secform4.com/insider-trading/1683771.htm
5 – https://www.secform4.com/insider-trading/1826030.htm
6 – https://finance.yahoo.com/quote/MTTR/analysis?p=MTTR
7 – https://finance.yahoo.com/quote/MTTR?p=MTTR