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The world is rapidly moving from offline to online. Digital transformation has made a powerful and lasting impact across every business and industry today. According to International Data Corporation, or IDC, approximately 65% of global GDP will be digitized by 2022, and over $6.8 trillion of direct investments will be made in digital transformation from 2020 to 2023. 

With this secular shift, there is also growing demand for the built world to transition from physical to digital. Nevertheless, the vast majority of buildings and spaces remain offline and undigitized. 

The global building stock, estimated by Savills to be $228 trillion in total property value as of 2017, remains offline mainly today. Matterport estimates that less than 0.1% is penetrated by digital transformation. 

Matterport is a leading platform for digitization and datafication of the built world and believes the digital transformation of the created world will fundamentally change how people interact with buildings and the physical spaces around them.

Matterport believes the total addressable market opportunity for digitizing the built world is over $240 billion and could be as high as $1 trillion as the market matures at scale. As strategy enthusiasts, we looked at the business model of Matterport and learned how Matterport works and makes money.

What is Matterport? How does Matterport work?

Founded in 2011, Matterport has built a business model around technology for digitizing, accessing, and managing buildings, spaces, and places online.

Matterport’s innovative software, spatial data-driven data science, and 3D capture technology have broken down the barriers that have kept the largest asset class in the world, buildings and physical spaces, offline and underutilized for many years. 

Matterport believes the digitization and datafication of the built world will continue to unlock significant operational efficiencies and property values and that Matterport is the platform to lead this enormous global transformation.

Matterport was among the first to recognize the increasing need for digitization of the built world and the power of spatial data, the unique details underlying buildings and spaces, in facilitating the understanding of buildings and spaces. 

In the past, technology advanced physical road maps to the data-rich digital maps and location services we all rely on today. Matterport now digitizes buildings, creating a data-rich environment to vastly increase its understanding and the full potential of every space it captures. 

Just as we can instantly, at the touch of a button, learn the fastest route from one city to another or locate the nearest coffee shops, Matterport’s spatial data for buildings works by unlocking a rich set of insights and learnings about properties and spaces worldwide. 

In addition, just as the geo-spatial mapping platforms of today have opened their mapping data to industry to create new business models such as ridesharing, e-commerce, food delivery marketplaces, and even short-term rental and home sharing, open access to structured spatial data of Matterport is enabling new opportunities and business models for hospitality, facilities management, insurance, construction, real estate, and retail, among others.

Matterport works on use cases from a diverse set of industries. Large retailers can manage thousands of store locations remotely, real estate agencies can provide virtual open houses for hundreds of properties and thousands of visitors at the same time, property developers can monitor the entirety of the construction process with greater detail and speed, and insurance companies can more precisely document and evaluate claims and underwriting assessments with efficiency and precision.

By June 2021, Matterport’s subscriber base had grown to over 404,000 subscribers, with its digital twins reaching more than 150 countries and growing. Matterport has digitized more than 10 billion square feet of space across multiple industries, representing significant scale and growth over the rest of the market.

How does Matterport make money? What is the business model of Matterport?

Value Proposition

From the early stages of design and development to marketing, operations, insurance, and building repair and maintenance, Matterport’s platform software and technology provide subscribers with critical tools and insights to drive cost savings, increase revenues, and optimally manage their buildings and spaces. 

As Matterport continues transforming buildings into data worldwide, it is extending its spatial data platform to transform further property planning, development, management, and intelligence for its subscribers across industries to become the de facto building and business intelligence engine for the built world.

Matterport’s AI-powered Cortex engine helps its subscribers answer questions like 1) what is important about their building or physical space and (2) what learnings and insights it can deliver for this space, using its spatial data library to provide aggregated property trends and operational and valuation insights.

Matterport is also developing a third-party software marketplace to extend the power of its spatial data platform. The marketplace enables developers to build new applications and spatial data mining tools, enhance the Matterport 3D experience, and create new productivity and property management tools that supplement its core offerings. 

These value-added capabilities created by third-party developers enable a scalable new revenue stream, with Matterport sharing the subscription and services revenue from each add-on that is deployed to subscribers through the online marketplace. 

Go-to-market strategy

Matterport’s fundamental go-to-market model is built upon a subscription-first, capture-device agnostic approach. This approach’s key benefit is offering subscribers a frictionless, cost-effective way to start and then scale with Matterport. 

Matterport has developed a scalable go-to-market process that opens its sales funnel to reach across industries and geographies, targeted at large enterprise subscribers, small businesses, and mid-market opportunities. 

Matterport has deployed a multi-channel sales strategy to efficiently reach its subscriber segments, from small businesses to enterprise-level subscribers. In general, Matterport employs 

  • A direct sales approach for subscribers with the most significant number of spaces or square feet under management, 
  • A channel partner approach to expand its reach where channel partners offer strong networks in particular verticals or geographies, and 
  • An online self-service approach for a frictionless, convenient entry point to Matterport for all potential subscribers. 

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Matterport Competitors and Competitive advantage

Matterport primarily competes with traditional methods of managing buildings and spaces, including 2D photography, paper-based building plans, labor-intensive computer-aided design drawings, and other static ways of visualizing and analyzing properties. 

Major competitors for Matterport as per G2 are Autodesk Construction Cloud, Procore, Oracle, Aconex, Touchplan, Real Tour Vision, Fieldwire, Newforma Project Center, and Raken.

Matterport believes its universality differentiates Matterport from vendors that offer industry-specific and building-specific point solutions geared toward narrow parts of the market. 

These point solutions address only a portion of the functionality and value that the Matterport platform provides. For example, traditional virtual tour companies create pre-recorded video tours and photo montages with background music to promote properties online. 

Vendors do not capture or produce 3D spatial data for analysis and property insights. Point solution providers also offer targeted solutions for specific markets, such as specialized solutions for surveying daily documentation for construction projects and insurance claims documentation and processing. 

However, these point solutions only represent a comprehensive and extensible platform solution with broad applicability to some industries, geographies, and vertical markets. Matterport provides a unique platform solution expressly designed to fulfill the needs of managing every building type across the property lifecycle. 

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How does Matterport make money: revenue model

Matterport made $111 Million in 2021, an increase of 29% from 2020. Matterport makes money by selling subscriptions to its AI-powered spatial data platform to customers, licensing its data to third parties, selling capture devices (including Matterport Pro2 camera), and providing services to customers from its technicians and through in-application purchases.

The business model of Matterport makes money through four segments: subscription, license, services, and product.

Subscription revenue— Matterport provides its software as a service on its Matterport platform. Subscribers use its platform under different subscription levels based on the number of active scanned spaces. Subscriptions contributed 55% to Matterport’s revenue in 2021.

License revenue— Matterport provides spatial data to customers in exchange for payment of a license fee. Under these license arrangements, customers take a right to possession of the spatial data and pay a fee for an agreed scope of use. License contributed 4% to Matterport’s revenue in 2021.

Services revenue— Services revenue consists of capture services and add-on services. Capture services consist of professional services in which a Matterport-qualified third-party technician will provide on-site digital capture services for the customer. Add-on services consist of additional software features that the customer can purchase. Services contributed 11% to Matterport’s revenue in 2021.

Product revenue— Product revenue consists of income from the sale of capture devices, including its Pro2 Camera. Product contributed 30% to Matterport’s revenue in 2021.


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A passionate writer and a business enthusiast having 6 years of industry experience in a variety of industries and functions. I just love telling stories and share my learning. Connect with me on LinkedIn. Let's chat...

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