Investment Idea: Matterport, Inc. (MTTR)
Matterport, Inc. (MTTR): Investment Idea
Price (as of Oct 26, 2023): $5.38
1. Executive Summary
Matterport (MTTR) offers a compelling investment opportunity based on its leadership in the burgeoning spatial data market. The company's robust digital twin platform, targeting a diverse range of industries from real estate to industrial management, positions it to capitalize on the increasing demand for efficient space digitization and datafication.
2. Investment Thesis (Bull Case)
Matterport's core strength lies in its comprehensive digital twin platform, enabling the creation of accurate 3D models of real-world spaces. This platform provides significant value across multiple verticals, as highlighted in the company's description.
- Broad Applicability & Market Growth: Matterport serves a diverse customer base, spanning real estate, insurance, retail, and industrial management. This diversification reduces reliance on any single industry and positions the company to benefit from the overall growth of the spatial data market, driven by increased adoption of digital twins for design, operation, and marketing. The company's focus on facilitating not only visualization but also understanding of spaces through data analytics provides a competitive advantage.
- Technological Advantage & Scalability: The "Matterport Capture" application, compatible with various capture devices from iPhones to specialized 3D cameras, lowers the barrier to entry for creating digital twins. This accessibility, combined with the platform's scalability, enables Matterport to rapidly expand its user base and build a network effect, whereby the value of the platform increases with each new space digitized.
- Potential for Recurring Revenue: Matterport’s subscription-based model generates recurring revenue streams, enhancing the predictability and stability of its financial performance. As the number of digitized spaces on the platform grows, the company can leverage this data to offer value-added services such as space analytics, asset management tools, and virtual staging, further boosting revenue and stickiness. The applications described, Matterport Workshop and Matterport Showcase, showcase opportunities for subscription tiers and additional services.