FactSet . In the second quarter, subscribers for its software generated $18.4 million in revenue, more than the consensus of $18.1 million. Subscriptions allow
camera owners to publish on Realtor.com, edit, and share their images elsewhere as well.
Despite the narrower loss, the company’s total revenue of $28.5 million came in below the $29.6 million Wall Street had expected. Product revenue—money from sales of equipment—came in at $5.1 million, which fell far short of the $6.9 million estimate.
Matterport (ticker: MTTR) blamed the supply chain. It gets parts for its cameras from Asia, and there is a lot of competition for those components, particularly the microprocessors. The company has had trouble getting parts, and “when we do get availability, the prices are astronomical, right?”, CEO R.J. Pittman said.
Matterport is far from the only one complaining about the component shortage. Contract chip manufacturer
‘ (GFS) said that while it continues to carry out its expansion plans, its ability to grow has been hampered by longer lead times for semiconductor-manufacturing tools.
While Matterport increased its forecasts for revenue and earnings, it adjusted its call on subscription revenue partly because supply problems are limiting its shipments of cameras. The company now expects $73 million to $74 million in subscription revenue for the full year, lower than analysts’ estimate of $78.7 million.
Losses are expected to be 46 cents to 50 cents per share for the full year, narrower than management’s prior prediction and around analysts’ expectation of 50 cents. Revenue is now expected to be $132 million to $138 million, more than management’s prior prediction and analysts’ expectation of $128.4 million.
Credit Suisse analyst John Walsh, who rates the stock at Outperform with a $10 target for the price, believes things will turn around for the subscriber business. He predicted that growth in subscriber revenue will accelerate as supply chains normalize.
Wedbush analyst Daniel Ives was also upbeat about the subscriber growth momentum in his Thursday note. The company has gained traction in shifting toward a subscription-based business model and its overall guidance shows that it is slowly turning the tide, he said. Ives has a Neutral rating and a $7 price target, up from $6 earlier.
CFO James Fay said he is seeing signs of relief in the supply chain, and that the company has already secured components to significantly increase production of its Pro2 cameras.
The stock (ticker: MTTR) shot up 16% to $6.02 mid-afternoon Thursday.
Matterport Stock Jumps on Better Outlook, Hope for Relief on Parts Shortages
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Matterport builds cameras used to take 3-D images. It can take any space—from houses to high-rises—online.
Matterport
Matterport
became the latest tech company to say a shortage of components is hurting its results, but analysts say they expect the problem to pass quickly.
After the market closed on Wednesday,
Matterport
,
which builds cameras used to take 3-D images, posted a loss of 12 cents a share for the second quarter, narrower than the 14 cents expected by analysts tracked by
FactSet
.
In the second quarter, subscribers for its software generated $18.4 million in revenue, more than the consensus of $18.1 million. Subscriptions allow
Matterport
camera owners to publish on Realtor.com, edit, and share their images elsewhere as well.
Despite the narrower loss, the company’s total revenue of $28.5 million came in below the $29.6 million Wall Street had expected. Product revenue—money from sales of equipment—came in at $5.1 million, which fell far short of the $6.9 million estimate.
Matterport (ticker: MTTR) blamed the supply chain. It gets parts for its cameras from Asia, and there is a lot of competition for those components, particularly the microprocessors. The company has had trouble getting parts, and “when we do get availability, the prices are astronomical, right?”, CEO R.J. Pittman said.
Matterport is far from the only one complaining about the component shortage. Contract chip manufacturer
GlobalFoundries
‘ (GFS) said that while it continues to carry out its expansion plans, its ability to grow has been hampered by longer lead times for semiconductor-manufacturing tools.
Nvidia
(NVDA) earlier this month shared preliminary guidance that fell short of expectations because of supply chain disruptions.
While Matterport increased its forecasts for revenue and earnings, it adjusted its call on subscription revenue partly because supply problems are limiting its shipments of cameras. The company now expects $73 million to $74 million in subscription revenue for the full year, lower than analysts’ estimate of $78.7 million.
Losses are expected to be 46 cents to 50 cents per share for the full year, narrower than management’s prior prediction and around analysts’ expectation of 50 cents. Revenue is now expected to be $132 million to $138 million, more than management’s prior prediction and analysts’ expectation of $128.4 million.
Credit Suisse analyst John Walsh, who rates the stock at Outperform with a $10 target for the price, believes things will turn around for the subscriber business. He predicted that growth in subscriber revenue will accelerate as supply chains normalize.
Wedbush analyst Daniel Ives was also upbeat about the subscriber growth momentum in his Thursday note. The company has gained traction in shifting toward a subscription-based business model and its overall guidance shows that it is slowly turning the tide, he said. Ives has a Neutral rating and a $7 price target, up from $6 earlier.
CFO James Fay said he is seeing signs of relief in the supply chain, and that the company has already secured components to significantly increase production of its Pro2 cameras.
The stock (ticker: MTTR) shot up 16% to $6.02 mid-afternoon Thursday.
Write to Karishma Vanjani at [email protected]
Source: https://www.barrons.com/articles/matterport-stock-earnings-supply-chain-51660240889?siteid=yhoof2&yptr=yahoo