• The metaverse is a hyper-growth market, and Matterport is an ambitious competitor in this ongoing revolution
• Matterport’s services, while robust and feature-rich, are surprisingly affordable
• Even with service affordability, Matterport is still able to generate powerful revenue

Source: Dennis Diatel / Shutterstock

Headquartered in California, Matterport (NASDAQ:MTTR) is a spatial data company that seeks to digitize the “built world.” As the metaverse expands, the company is helping to populate these exciting new realms by turning buildings and spaces into “digital twins.”

Matterport makes it possible for developers to create these digital worlds through spatial-capture technology. Meanwhile, investors are taking a strong interest in MTTR stock as a high-conviction pure play in the metaverse’s build-out.

No matter which angle you’re taking — developer, investor or metaverse enthusiast — you’ll surely want to know about Matterport’s services and their price points. This, then, leads to the billion-dollar question of whether Matterport is able to effectively monetize these services and thereby build a successful business.

What Does Matterport Cost?

First things first. Matterport’s metaverse developers work with what is known as spaces. A space is basically just a 3D model of any building or property.

Next, Matterport defines an active space as a fully functional 3D model of any building or property, and it is the default state. An active space can be viewed, customized, published and shared.

So, obviously, the more active spaces a developer has access to, the better. Thus, with the Pro & Business service tier, five users can get access to 25 active spaces. The cost? Just $69 per month — not outrageous at all, though you’ll have to provide your own camera or buy one from Matterport.

Don’t need 25 active spaces? No problem — there is also a Starter service tier in which two users can get access to five active spaces. This tier only costs $9.99 per month — not exactly a bank breaker, you must admit.

Moreover, believe it or not, there is even a no-cost service tier. With the Free tier, two users can get access to one active space. However, you wouldn’t get more advanced benefits, such as “Export Space traffic analytics reports.”

How Does Matterport Make Money?

Matterport makes money from the non-free service tiers and from selling its cameras. For example, the high-end Matterport Pro2 camera costs $3,395. The company can also deploy a network of professional Capture Technicians to do the space-capture legwork for you. This service starts at $199.

If you’re worried about Matterport losing vast amounts of money by offering a Free service tier, relax. The company is doing just fine, financially speaking.

During 2021’s fourth quarter (Q4), Matterport’s total subscriber count increased 98% year-over-year to 503,000. Consequently, the company’s Q4 2021 subscription revenue grew 32% year-over-year to $16.5 million.

Overall, there is no denying that Matterport is making money. Impressively, the company’s total Q4 2021 revenue of $27.1 million represents a 15% improvement on a year-over-year basis.

JD Fay, chief financial officer at Matterport, had his own statistic to add to the mix.

“In the fourth quarter we continued to make strong progress on the path of building our recurring subscription revenue business, which represented 61% of total revenue,” Fay observed.

Why Matterport Matters

Sure, Matterport offers a Free service tier, but that is not a bad thing. It might entice the users to graduate to a more feature-rich, paid service tier.

Besides, the company also makes money from high-end camera sales and from sending out teams of professional Capture Technicians.

So, Matterport is definitely making money, but there is more to the story than that. The company remains a powerful player in the metaverse market. Matterport will definitely be a tech company to watch for the remainder of 2022.

On the date of publication, David Moadel 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.