Shares of Matterport (NASDAQ:MTTR), which specializes in 3D cameras and virtual tour software, are down 15% today after reporting earnings that missed the mark. Investors appear to be punishing MTTR stock for sharing lower-than-expected revenue guidance.
What Happened With MTTR Stock
The company announced a non-GAAP loss per share of 10 cents, which was in line with analyst expectations. Matterport also reported revenue of $27 million, which was nearly $2 million better than the $25 million analysts had been expecting. Matterport also announced that it now has more than 500,000 subscribers to its software platform.
So what is causing the selloff?
The company guided that it expects first-quarter revenue to be between $25.5 million and $27.5 million. For all of 2022, Matterport forecasts total revenue of $125 million to $135 million. Recurring subscription revenue is expected to be between $80 million and $82 million, translating to 31%-34% year-over-year growth. Those forward-looking numbers missed the mark in terms of analyst expectations.
Why It Matters
Matterport has been hit hard so far this year as investors shy away from tech-oriented investments. Year to date, MTTR stock has declined 67%. Its share price is more than 80% below its 52-week high.
Shareholders had been holding out hope that the latest earnings report would help Matterport’s stock reverse course and begin rising again. But the lackluster guidance appears to have made matters worse.
Investors should also note that Matterport has been transitioning to focus on subscriptions, and analysts were paying particular attention revenue guidance as a result.
What’s Next for Matterport
MTTR stock and the company’s shareholders will have to take their lumps today. Going forward, the company will likely need to report several quarters of results that match or beat analyst expectations before the share price begins to meaningfully recover.
On the date of publication, Joel Baglole did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
