We’ve seen quite a few property technology, or PropTech, companies go public over the past year or so, but one that has a particularly interesting market opportunity is Matterport (NASDAQ:MTTR). In this Fool Live video clip, recorded on Sept. 10, Fool.com contributors Matt Frankel, CFP, and Lou Whiteman discuss Matterport’s business and growth potential.
Matt Frankel: It’s called Matterport. Ticker symbol is MTTR, recently went public via SPAC merger because it’s 2021, why not?
Lou Whiteman: Of course.
Frankel: Matterport, like you said, I always think of the Disneyland ride Matterhorn when I hear the name. This is what they call a spatial data company. Matterport is the best in the business when it comes to technology that can create a 3D map of the inside of a building. For example, they partner with Redfin (NASDAQ:RDFN) to provide 3D tours for their listings, Airbnb (NASDAQ:ABNB) to provide insight views of properties for them. So Matterport is pretty much the pioneer in this market. They’ll say they have over 100 times the market share of all their competitors combined, and it’s true, but it’s because they don’t really have any competitors.
Whiteman: Percentage gain, yeah.
Frankel: But Matterport does have some hardware. They have a 3D mapping camera that’s the best you’re going to find. It’s like a $3,000 camera, the Matterport Pro2 it’s called. But the real potential in this business is they sell it as a Software-as-a-Service model. The idea is the more buildings around the world they can have 3D maps or digital twins as they call them, the more valuable this becomes the software product. How big could this get? The company has mapped about 15 billion square feet of space so far. That includes homes, offices, commercial properties. They have about 250,000 subscribers, 150 companies around the world. That is 18 times as many as they did two years ago. Growing very, very fast, this is really catching on. A lot of Fortune 500 companies are Matterport users. They don’t all pay for it. There’s a free version, it’s a freemium model. So if you just want to be able to look inside one building, that’s a free membership. 3D maps of homes are just one use case for this. Because you might be asking, why would I pay for that when I can just go to Redfin or go to Airbnb or go to Zillow and see the inside of the home I want to see if there’s already a Matterport map of it? That’s only one use case. Where Matterport really has potential, it’s things like helping developers renovate a property without ever having to go in it, figuring out the most efficient use of space without having to be there. If you’re an interior decorator, there’s only so much you can do if you walk in and take a picture of someone’s living room. Having a 3D map, it’s essentially like being there. It takes your business to another level. Contractors is a big one. Insurance…
Read More: This Exciting IPO Stock Has a $240 Billion Market Opportunity