Matterport, Inc. (MTTR): BCG Matrix [Dec-2025 Updated]

You're digging into Matterport, Inc.'s portfolio right after the CoStar Group acquisition, trying to see where the real value sits now. Honestly, the BCG map shows a clear split: the Subscription Platform is a Star, driving $104.2 million in Annual Recurring Revenue by Q4 2024, while the low-margin hardware business is definitely a Dog, making up only 17.0% of total FY2024 revenue. The core challenge, and where the big upside or risk lies, is balancing the predictable Cash Cow from established real estate against the high-growth, high-investment Question Marks like Service Revenue, which hit $41.26 million, and the whole strategic unknown of the CoStar integration. Keep reading to see the precise placement of every major segment.

Background of Matterport, Inc. (MTTR)

You're looking at Matterport, Inc. (MTTR), which, as of late 2025, is no longer trading publicly; it became a subsidiary of CoStar Group, Inc. following a deal that closed in February 2025. Before that, Matterport, headquartered in Sunnyvale, California, was known as a pioneer in spatial data, focused on digitizing and indexing the built world. Founded way back in 2011, the company's core mission was to turn physical buildings into dimensionally accurate, immersive digital twins using its proprietary Cortex AI software engine.

The technology platform processes data from various capture devices-ranging from professional 3D cameras like the Pro3 to simple smartphone captures-to create these digital assets. This platform serves a wide array of markets, including residential and commercial real estate, facilities management, retail, and the Architecture, Engineering, and Construction (AEC) sectors.

To give you a sense of the scale just before the transition, the company reported its full-year 2024 results on February 26, 2025. For fiscal year 2024, Matterport achieved a record full-year subscription revenue of $99.6 million, which was a 14% increase year-over-year. Total revenue for that same period hit $169.7 million, marking an 8% jump from the prior year.

The stickiness of the platform is reflected in the subscriber growth; total subscribers reached 1.2 million by the end of 2024, a 23% increase from the year before. Furthermore, the total square footage digitized and managed hit a significant milestone of 50.7 billion square feet, up 33% year-over-year. The Annualized Recurring Revenue (ARR) closed 2024 strong at $104.2 million.

Despite this growth in subscription revenue, the company was still operating at a loss, posting a net loss of $257 million for fiscal year 2024. You'll remember that the company went public in 2021 via a SPAC merger, riding the wave of metaverse enthusiasm, but like many unprofitable tech firms, it faced significant stock price pressure before the CoStar acquisition.

Strategically, Matterport continued to push innovation right up to the acquisition. For instance, their 2025 Winter Release was a big deal, introducing the Matterport Marketing Cloud. This was designed as an all-in-one platform for real estate agents, promising a complete, ready-to-use digital marketing package-including a 3D tour, images, and AI-generated descriptions-in as little as one to two business days in major metros. This focus on streamlining workflows, like with their one-click defurnish tool, shows where the product development was heading.

So, you're looking at a company that built the world's largest spatial data library, which was valuable enough for CoStar Group to acquire it for about $1.6 billion in April 2024, leading to its delisting in February 2025. Finance: draft the pro-forma cash flow statement reflecting the CoStar acquisition structure by next Tuesday.

Matterport, Inc. (MTTR) - BCG Matrix: Stars

You're looking at the core growth engine for Matterport, Inc. (MTTR) right now, the segment that commands high market share in a market that's still expanding rapidly. These are the units we need to feed with capital because they are the future Cash Cows, provided the growth rate doesn't slow down before they mature.

The Subscription Platform is definitely in this category. For the full year 2024, this segment brought in a record $99.6 million in total subscription revenue. That's a 14% increase year-over-year, showing strong, sticky customer value in a massive, still-growing digital transformation market. Honestly, that growth rate is what keeps it firmly in the Star quadrant.

We see this momentum clearly when looking at the recurring revenue base. Annual Recurring Revenue (ARR) hit $104.2 million as of the fourth quarter of 2024. That figure shows customers are sticking around and increasing their commitment, which is exactly what you want to see from a Star. If this trend continues, we expect this unit to transition nicely into a Cash Cow as the overall market growth rate eventually moderates.

The investment in innovation is what fuels this high market share. Matterport, Inc. is pouring resources into new, sticky features that drive platform adoption. The recent releases showcase this focus on high-growth areas:

• Unveiled Matterport Marketing Cloud, powered by Property Intelligence.
• Launched the AI-powered one-click defurnish tool.
• Introduced generative AI tools in the Fall 2024 Release.
• New features like tag management and Model Merge boost workflow efficiency.

These AI-powered features are critical because they increase the utility of the core asset-the digital twin. Speaking of that asset, the Digital Twin Library is Matterport, Inc.'s moat. By the end of fiscal year 2024, the total square feet digitized and managed reached a significant milestone of 50.7 billion square feet. That's up 33% year-over-year, cementing their position as having the world's largest spatial data library. This scale is hard for any competitor to match right now.

Here's a quick look at the key metrics defining this Star performance as of the end of FY2024:

The strategy here is clear: invest heavily to maintain that market share lead while these markets are hot. What this estimate hides, though, is the cash burn required to keep this pace; Stars consume a lot of cash to fuel their growth, often resulting in net losses, which Matterport, Inc. experienced in 2024 with a net loss of $0.80 per share for the full year. Finance: draft the Q1 2026 investment allocation proposal by next Tuesday.

Matterport, Inc. (MTTR) - BCG Matrix: Cash Cows

You're looking at the core, established revenue streams for Matterport, Inc. (MTTR) as of early 2025, right after its acquisition by CoStar Group, Inc. in February 2025. These are the business components that generate more cash than they consume, which is the classic definition of a Cash Cow in the Boston Consulting Group framework.

Core Real Estate Vertical

The most established use case, which is heavily weighted toward real estate, provides the most predictable, high-margin recurring revenue base. This segment is mature, meaning growth is slower but market share is high, leading to strong cash generation. For the full year 2024, the Subscription and Circulation revenue stream, which captures this recurring model, hit a record of $99.6 million, representing 58.7% of the total $169.70 million revenue for the year. This subscription revenue alone grew 14% year-over-year.

Here's a snapshot of the recurring revenue base as of the end of fiscal year 2024:

The stickiness of this base is evident; you don't just stop paying for access to your digital twins.

Cortex AI Engine

The proprietary technology that processes 3D data, the Cortex AI Engine, is the key competitive moat and a cost-saver, even if we don't have a specific margin improvement figure attached to it yet. The platform's ability to automate processing and deliver insights like the Property Intelligence report-a feature available on higher-tier plans-is what keeps high-value customers locked in. The 2025 Winter Release emphasized new automation, like the one-click defurnish tool, which directly lowers the operational cost for users, reinforcing the value proposition without requiring massive new placement investments.

• Processes captured data into dimensionally accurate digital twins.
• Enables features like automatic face blurring.
• Supports purchase of technical files like CAD, BIM, and e57.
• Unlocks efficiencies for large or complex projects.

This technology underpins the high market share you see in the established segments.

Enterprise Customer Base

Large contracts with major property owners and facility managers are the bedrock of stable cash flow, characterized by high switching costs. The sheer scale of adoption shows this moat is wide. As of the end of 2024, the total square footage digitized and managed reached 50.7 billion square feet, a 33% year-over-year increase. This massive library of spatial data is incredibly difficult for a competitor to replicate quickly. Furthermore, the total subscriber base grew to 1.2 million, up 23% year-over-year, indicating strong adoption across the board, from small agents to large enterprises.

US Market Operations

The US segment represents the most mature geographic area, which aligns perfectly with the low-growth, high-share Cash Cow profile. This segment accounted for 64.4% of the total revenue in 2024, translating to $109.22 million of the $169.70 million total. Because this market is mature, Matterport, Inc. would focus investments here on efficiency improvements-like supporting infrastructure upgrades-rather than aggressive promotion to capture new, untapped growth, which is exactly what a Cash Cow strategy dictates.

The US revenue breakdown for FY2024 was:

Finance: draft 13-week cash view by Friday.

Matterport, Inc. (MTTR) - BCG Matrix: Dogs

You're looking at the parts of Matterport, Inc. (MTTR) that aren't driving the high-growth narrative, the hardware sales that fit squarely into the Dog quadrant: low market share in a mature or slow-growth segment, meaning they don't consume much cash but also don't generate much profit to reinvest.

Product Revenue (Hardware) represents these low-margin camera sales. For the full fiscal year 2024, this segment brought in only $28.84 million, which was just 17.0% of the total reported revenue for that year, which stood at $169.7 million. This low contribution percentage signals a deliberate strategic pivot away from hardware dependency.

To give you a clearer picture of this positioning relative to the company's focus, here's a quick comparison of the main revenue streams based on FY2024 figures:

The strategic deemphasis on Legacy Pro Camera Models is a direct consequence of placing hardware here. Matterport, Inc. is actively pushing for ubiquity through mobile capture and third-party hardware integrations, effectively signaling that the proprietary camera line, especially older models, is not the future growth engine. Expensive turn-around plans for these older hardware SKUs are generally avoided because the return on investment is unlikely when the market shifts to software and mobile-first scanning.

The subscriber base also contains elements that act like Dogs. While total subscribers reached 1.2 million by the end of FY2024, a 23% year-over-year increase, a significant portion of these users are on low-tier or free subscriptions. These high-volume, low-monetization users represent low market share in the revenue-generating sense, even if they have high unit volume. They consume platform resources without providing meaningful cash flow to offset costs.

Here's what this Dog classification implies for resource allocation:

• Avoid significant new capital investment in this segment.
• Minimize operational expenditure related to legacy hardware support.
• Focus on migrating users from free tiers to paid subscriptions.
• Divestiture or phase-out of non-core, low-margin product lines is a prime consideration.

Honestly, the goal here isn't to make the camera business a Star; it's about managing the decline or harvesting the remaining value while the company focuses its energy on the Subscription segment, which is clearly the Cash Cow or Star candidate, given its 58.7% revenue share. The pending acquisition by CoStar Group, Inc. further complicates any independent, expensive turn-around effort for these low-growth assets.

Finance: review the Q4 2024 cost-to-serve for the free subscriber tier by next Tuesday.

Matterport, Inc. (MTTR) - BCG Matrix: Question Marks

You're looking at the new products or business units for Matterport, Inc. that are operating in high-growth markets but currently hold a low market share. These are the cash consumers, the ones that require heavy investment to capture market share before they stagnate and become Dogs. For Matterport, now integrated with CoStar Group, Inc. as of February 28, 2025, these areas represent the future potential.

Service Revenue: Capture and processing services, a high-growth segment at $41.26 million in FY2024, but less scalable than pure SaaS.

The Capture and Processing Services segment is characterized by high touch and lower inherent scalability compared to the pure Software as a Service (SaaS) offerings. You have a specific benchmark for this area, which is reported at $41.26 million for the full fiscal year 2024. This revenue stream is crucial for generating initial digital twin assets but requires significant operational overhead to scale, contrasting with the high-margin potential of the subscription base. The goal here is to transition these service users into higher-tier, more scalable subscription plans quickly.

Here's a look at the revenue composition based on the last full fiscal year before the merger:

The subscription revenue, which was $99.6 million in FY2024, represents the more desirable, scalable part of the business, while the services component needs rapid conversion to maintain its Question Mark status rather than slipping into the Dog quadrant.

International Expansion: Non-US revenue is a smaller share, requiring heavy investment to capture high-growth global markets.

While Matterport's digital twin library spans 177 countries, the revenue concentration likely remains heavily weighted toward the US market, typical for early-stage global tech plays. Capturing the high-growth markets outside the US demands substantial, sustained investment in local sales channels, marketing, and compliance, which consumes cash now for potential future scale. This is a classic Question Mark scenario: the market is massive-with an estimated $327 trillion global building stock opportunity-but market share acquisition is expensive and slow.

The growth potential is evident in the scale already achieved:

• Total Subscribers (End of 2024): 1.2 million
• Spaces Under Management (End of 2024): 14.1 million
• Square Feet Under Management (End of 2024): 50.7 billion

You need to see international revenue growth outpace domestic growth to shift this segment toward Star status.

AEC/Industrial Verticals: Expanding into Architecture, Engineering, and Construction (AEC) is a huge opportunity but requires significant capital to gain share.

The Architecture, Engineering, and Construction (AEC) and Industrial segments represent a clear high-growth market where digital twins offer immediate workflow improvements, such as reducing rework and site visits. Matterport explicitly targets these verticals alongside residential/commercial real estate, facilities management, and insurance. The estimated Total Addressable Market (TAM) for the built world is cited as more than $240 billion globally, suggesting ample room for growth. However, penetrating these specialized enterprise sectors requires tailored sales strategies and often longer sales cycles, meaning high upfront capital expenditure to secure market penetration.

The investment required is substantial, as evidenced by the company's overall financial profile:

• FY2024 Net Loss: $256.6 million
• Q4 2024 Net Loss: $40.5 million

These losses underscore the cash burn associated with developing and pushing these new vertical solutions.

CoStar Group Integration: The strategic direction and resource allocation under the new parent company is defintely a high-risk, high-reward unknown.

The acquisition by CoStar Group, Inc. completed on February 28, 2025, for an enterprise value of approximately $1.6 billion, fundamentally changes the risk profile of these Question Marks. CoStar's resources and massive data ecosystem are the intended fuel for rapid market share gain. The integration itself is the immediate high-risk factor; Q1 2025 saw $31 million in one-time integration and amortization expenses for CoStar Group. The reward is leveraging CoStar's scale to accelerate adoption across its platforms, like Homes.com, which already had 104 million monthly visitors in Q1 2025. The success of these former Matterport segments now hinges entirely on the execution of this synergy.

Consider the immediate financial impact on the acquirer:

Finance: draft 13-week cash view by Friday.