Insider transactions can give investors a more complete view of what’s going on within the world’s publicly-listed companies. No one has more information in relation to a company’s prospects than its leaders.
In this report, we are going to highlight some interesting insider buying at Matterport Inc (MTTR:US). Matterport is a leading spatial data company that is digitizing the built world. By turning buildings and spaces into digital twins, Matterport unlocks unparalleled spatial data insights for companies and individuals that allows them to better design, build, promote, and manage their real estate assets. The company is listed on the NASDAQ Global Market and currently has a market capitalization of $2.2 billion.
Matterport Inc: Insider Buying
Our data shows that between February 24 and February 25, two insiders at Matterport bought stock. Those who picked up shares were:
- Chairman & CEO Raymond Pittman (40,000 shares @ $6.80 per share)
- Director Peter Hébert (20,000 shares @ 6.38 per share)
Combined, these insiders spent around $400,000 on Matterport stock.
Both of these insiders are likely to have a good understanding of Matterport’s prospects and investment potential.
Over the past 25 years, Mr. Pittman has held senior leadership positions at eBay, Apple, and Google, creating industry-changing internet software companies and transformational products to accelerate the revolution of the digital economy. Alongside his career in technology, he has followed his passion for architecture and property development, and been involved in dozens of innovative real estate projects throughout the US and the UK that harness the profound impact of technology on the design-build process. He has served as CEO of Matterport since late 2018.
Mr. Hébert, meanwhile, is the co-founder of Lux Capital, for which he has served as the Managing Partner since 2000. Mr. Hébert began his career at Lehman Brothers, where he worked in the firm’s top-ranked Equity Research group.
Dragged Down in the Tech Sell-Off
While Matterport’s share price has been pulled down in the recent tech sell-off, the company continues to make progress.
For the fourth quarter of 2021, total revenue was $27.1 million, an increase of 15% compared to the fourth quarter of 2020. Meanwhile, subscription revenue amounted to $27.1 million, up 32% year on year.
Encouragingly, at the end of 2021 Matterport had total subscribers of 503,000, up 98% compared to the end of 2021, and Spaces Under Management (SUM) of 6.7 million, up 54% compared to the end of 2021.
“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,” commented CFO JD Fay.
Looking ahead, the company expects to generate revenue of $125 million to $135 million for 2022. That would represent top-line growth of 12% to 21%.
“Looking forward, the physical world is going digital. Every industry on every continent is embracing digitization, and I am more confident than ever about the company’s outlook for 2022 and the decade ahead,” said Mr. Pittman.
In light of the solid top-line growth here, we see the insider buying as a bullish indicator.