Matterport (MTTR 3.14 percent) was unfortunate to be becoming public through the acquisition by a special-purpose purchase company (SPAC) on the 23rd of July 2021. It was during a time where investors were beginning to be disillusioned by the risky characteristics of the SPAC. However, there are many some reasons why investors might be interested in investing in the firm, regardless of the slump in the market.
Here’s the reason Matterport has a strong upside potential.
A huge growth opportunity is ahead
Matterport is a part of a relatively unknown industry that produces digital models which accurately depict physical objects. These models are referred to by the name of digital twins. Digital twins are used by organizations in commercial and residential real estate facilities management retail architectural, engineering, construction as well as insurance and repair as well as travel and hospitality. These twins enable companies to manage their properties remotely as well as monitor the construction of buildings and even host virtual open houses to market real estate, and verify the claims.
The company estimates that its total market addressable is greater than 4 billion buildings and 20 billion space globally — more than $240 billion market which has the potential of expanding to over $1 trillion. At the time of the conclusion of the quarter, which ended on June 30, the business generated $111.7 millions in revenues on a trailing 12 month basis, which is only 0.05 percent of its market.
The company has some significant competitive advantages
Although it only covers a small fraction of its market it is a pioneer in the field of digital twins.
About a decade ago the company began its path to becoming an industry leader after being the first company to digitize and capture spatial data. Matterport scans and recorded more than 8 million squares on its platform. Additionally, it has more than 616,000 subscribers for its 3-D-capture service.
Its collection of 24 billion square feet in spatial information is 100 times more extensive than the other market. This serves as a competitive advantage making it hard for rival to get ahead. Additionally, this dataset that Matterport has accumulated does not rest in a drawer. Much like the way Google makes use of data from its searches to improve its products and services, Matterport applies analytics and artificial intelligence (AI) on the spatial data in order to improve and create new services and products for its customers way before its competitors.
The information the company gathers also is a result of a network effect that goes with it. The more spatial data it processes through its specially-designed AI, Cortex, the more information Matterport gives customers using its platform. In turn, every new customer enhances the experience for each customer, creating an extremely long-lasting service.
It also has a wide patent portfolio, which has been developed in the last 10 years. At the time of its 2021 anniversary, Matterport had 50 issued and 24 patent applications pending.