Matterport (NASDAQ:MTTR) stock is up more than 20% today after the company specializing in three-dimensional (3D) technology raised its revenue guidance for the remainder of this year.
The increase to its forward guidance comes as Matterport reported mixed quarterly results that saw its revenue miss Wall Street expectations. The Sunnyvale, California-based company announced revenue for the April through June period of $28.48 million, which fell short of analyst estimates for $29.6 million in revenue. Before today’s move higher, MTTR stock had been down 74% on the year and trading at $5.19 per share.
What Happened With MTTR Stock
Matterport, which focuses on augmented reality (AR) and virtual reality (VR) technologies, also reported a quarterly loss of 12 cents per share, which was better than the loss of 14 cents per share analysts had penciled in for the company. Matterport said its revenue from subscriptions rose 20% year-over-year to $18.4 million in the quarter, while total subscribers jumped 52% to 616,000.
In terms of its forward guidance, Matterport said it now expects a third-quarter loss of 13 cents to 15 cents per share on revenue of $35 million to $37 million. For all of this year, the company raised its revenue guidance to a range of $132 million to $138 million, up from $125 million to $135 million previously.
Why It Matters
Investors are responding today to the improved outlook put forward by Matterport and betting the worst is behind it. Like a lot of unprofitable tech companies, its shares have been hit hard this year amid the market downturn. Before today’s leg higher, MTTR stock was down 86% from a 52-week high of $37.60 per share.
Investors may also like that Matterport is working in the cutting-edge fields of 3D technology, VR and AR, areas that are growing in prominence as companies ranging from Meta Platforms (NASDAQ:META) to Apple (NASDAQ:AAPL) push into the space and race to develop the metaverse.
What’s Next for MTTR Stock
MTTR stock is seeing a nice pop today following its latest quarterly results, specifically its bullish forward guidance. Whether or not today’s gains stick remains to be seen. But shareholders of Matterport will no doubt be happy to see the company’s stock price reverse higher after plummeting for most of this year.
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.