Matterport, Inc. (MTTR): Business Model Canvas [Dec-2025 Updated]

You're looking at the digital twin pioneer, Matterport, Inc., now under CoStar Group's wing, and the business model is shifting fast. Honestly, the real story isn't just the 1.2 million subscribers or the 50.7 billion square feet of digital twins they host; it's the aggressive pivot to predictable revenue, evidenced by their $104.2 million in Annualized Recurring Revenue as of Q4 2024. We need to see if the high litigation costs-a hefty $95 million in 2024-can be absorbed as the subscription engine, which brought in $99.6 million in FY 2024, really kicks into high gear. Dive below to see the nine building blocks defining this new, subscription-first reality for Matterport, Inc.

Matterport, Inc. (MTTR) - Canvas Business Model: Key Partnerships

You're looking at the core relationships Matterport, Inc. (MTTR) needed to scale its digital twin platform, especially now that CoStar Group, Inc. has taken the reins. These alliances are what turn a cool technology into a market force, so let's break down the numbers behind the key players as of late 2025.

Strategic Integration with CoStar Group, Inc.

The biggest partnership, or rather, acquisition, is with CoStar Group, Inc., which completed the takeover of Matterport, Inc. on February 28, 2025, for $1.6 billion. This move immediately plugs Matterport's spatial data into CoStar's massive audience; CoStar's websites pulled in over 134 million average monthly unique visitors in the fourth quarter of 2024. The combined entity is aiming to digitize a global asset class valued at approximately $327 trillion. RJ Pittman, Matterport's Chairman and CEO, noted this joining of forces is set to fast-track innovation and deepen AI-driven analytics.

Ecosystem Development via Platform Partner Program

The Platform Partner Program is designed to grow the utility of the digital twins by encouraging third-party developers to build on top of the spatial data. While the program launched earlier, by June 2021, over 50 partners had already signed up to access the developer tools. Early participants have seen significant returns; for instance, Trent Clews-de Castella of PHORIA reported a 350 percent sales increase in 2020 due to their participation. These partners leverage Matterport's APIs and SDKs to create application layers and add-ons, extending capabilities beyond the core offering.

Hardware Compatibility and Ecosystem Reach

For Matterport to capture the physical world, it relies on hardware partners. The historical alignment with Leica Geosystems, particularly around the BLK360 lidar scanner, was crucial for AEC market penetration. However, as of August 2025, direct scanning with the Leica BLK360 G1 is no longer supported starting with version 5.54 of the iOS Matterport app due to key library incompatibilities. Still, users with version 5.53 or earlier can continue scanning with the G1, which takes between 2 to 9 minutes per scan depending on settings like High Dynamic Range and Scan Density.

Community Engagement and Co-Sponsorships

Co-sponsoring industry events helps solidify community engagement. Matterport and CAPTUR3D powered the 2025 Digital Twin Awards (DTAs), which featured seven categories and spanned over 170 countries. The total prize pool for the 2025 event amounted to $28,000 USD, with individual prizes valued up to $6,300 USD. This event showcases the best digital twin projects from the user and partner base.

Cloud Infrastructure for Global Scalability

The sheer volume of data requires a robust cloud backbone, and Amazon Web Services (AWS) is central to this. Matterport's platform is currently fueled by over 47+ billion square feet of spatial data hosted on AWS. This is supported by the fact that Matterport reported managing 50.7 billion square feet digitized as of the end of 2024. The integration with AWS IoT TwinMaker allows linking real-time operational data into the 3D twins. For example, Danone reported reducing in-person site visits by up to 50 percent by using digital twins in virtual meetings powered by this integration.

Here's a quick look at the scale of these key relationships:

Partner Category	Specific Partner/Program	Key Metric/Figure	Context/Year
Parent Company/Integrator	CoStar Group, Inc.	$1.6 billion acquisition price	Completed Q1 2025
Cloud Infrastructure	Amazon Web Services (AWS)	47+ billion sq. ft. hosted data	As of late 2025
Ecosystem Growth	Platform Partner Program	50+ partners signed up	By June 2021
Community/Awards	CAPTUR3D (2025 DTAs)	$28,000 USD total prize pool	2025 Awards
Hardware Integration	Leica BLK360 G1 Scanning	Direct scanning no longer supported	Starting with iOS App v5.54 (2025)

The integration with AWS IoT TwinMaker has shown measurable operational impact, with users like Danone cutting site visits by as much as 50 percent. The Platform Partner Program has a proven track record, with one early partner seeing a 350 percent sales increase in 2020. Finance: review the Q3 2025 ARR run-rate against the Q4 2024 figure of $104.2 million by next Tuesday.

Matterport, Inc. (MTTR) - Canvas Business Model: Key Activities

You're looking at the core actions Matterport, Inc. performs, especially now that it's operating as a subsidiary of CoStar Group, Inc. following the acquisition closing in February 2025.

The primary activity centers on developing and enhancing the AI-powered spatial data platform. This involves continuous work on the proprietary Cortex AI engine, which automatically processes raw 3D capture data into dimensionally accurate models, or digital twins. The 2025 Winter Release exemplified this, introducing advanced automation and AI-driven capabilities designed to streamline property workflows.

A massive operational activity is the sheer scale of data management. Matterport, Inc. is responsible for processing and hosting over 50.7 billion square feet of digital twins as of the end of fiscal year 2024. This represents the world's largest spatial data library, a key asset integrated into the combined entity.

The company continues the activity of selling and distributing Matterport Pro3 cameras and accessories, which are the hardware tools used to generate the initial 3D capture data that feeds the platform. This hardware component remains essential for expanding the library, though the focus has clearly shifted toward the recurring software revenue.

A critical, ongoing activity is the integrating its platform with CoStar Group's commercial real estate network. The successful completion of the acquisition in February 2025 means a key activity is now aligning Matterport's digital twin technology with CoStar Group's vast property data and online marketplaces to create an unparalleled real estate intelligence solution.

Finally, a major focus is driving enterprise adoption of the subscription-first SaaS model. This is where the financial engine is built. The company achieved a record subscription revenue of $99.6 million in fiscal year 2024, with Annualized Recurring Revenue (ARR) hitting $104.2 million by year-end 2024. This growth was supported by a total subscriber base reaching 1.2 million.

Here's a quick look at the scale metrics underpinning these activities as of the last full fiscal year data:

Key Metric	Value	Context/Date
Total Square Feet Digitized	50.7 billion square feet	End of FY2024
Total Spaces Under Management	14.1 million spaces	End of FY2024
Total Subscribers	1.2 million	End of FY2024
Annualized Recurring Revenue (ARR)	$104.2 million	End of FY2024
FY2024 Subscription Revenue	$99.6 million	Fiscal Year 2024

The operational output supporting the SaaS model includes several key functions:

• Creating dimensionally accurate digital twins.
• Delivering AI-powered property insights.
• Simplifying property marketing via the Marketing Cloud.
• Enabling remote property exploration for stakeholders.
• Facilitating virtual inspections and remote teamwork.

The platform's value proposition is directly tied to efficiency gains for users, such as:

• Shortening property time-on-market by a reported 3x.
• Reducing travel time and cost by 50% for management tasks.
• Increasing training efficiency by 30%.

Finance: draft 13-week cash view by Friday.

Matterport, Inc. (MTTR) - Canvas Business Model: Key Resources

You're looking at the core assets Matterport, Inc. relies on to run its business, the things it owns or controls that are essential for delivering its value proposition. Honestly, the biggest asset here is the sheer volume of data they've managed to aggregate.

The proprietary spatial data library is massive, sitting at 14.1 million spaces under management as of December 31, 2024. That's the foundation for their AI, Property Intelligence, which is a key part of the Matterport Cloud platform. This platform, along with the core AI/Computer Vision technology, is what turns raw scans into usable digital twins.

When we talk about intellectual property (IP), Matterport, LLC retains all right, title, and interest in the Matterport Digital Assets created by its team. This is protected under the Platform Subscription Agreement, which is critical for maintaining their competitive moat in 3D capture and processing.

The hardware side is shifting, which you need to track closely. While Matterport discontinued sales of the Pro2 camera and the Axis motorized mount as of October 10, 2025, the focus is squarely on the Pro3 camera to advance next-generation 3D capture. Here's a quick look at the scale and some recent hardware context:

Key Resource Metric	Value/Status as of Late 2024/Early 2025
Total Digitized Spaces	1.2 million total subscribers
Total Spaces Under Management	14.1 million spaces
Total Square Feet Under Management	50.7 billion square feet
Pro3 Camera List Price	$5,995 (Includes a 1-year subscription for 100-300 Active Spaces)
Axis Motorized Mount Sales Status	Discontinued as of October 10, 2025

The subscription base is what drives the recurring revenue engine, and that base grew to 1.2 million total subscribers by the end of 2024. This scale directly supported a record subscription revenue of $99.6 million for the full year 2024, with the Annualized Recurring Revenue (ARR) hitting $104.2 million in Q4 2024. This shift to SaaS is central to their strategy, especially given the pending acquisition by CoStar Group, Inc., which was valued at approximately $2.1 billion.

You should also note the operational metrics tied to the platform's usage, which demonstrate the depth of their resource utilization:

• FY2024 Subscription Revenue reached $99.6 million.
• Q4 2024 Annualized Recurring Revenue (ARR) was $104.2 million.
• Total Square Feet Digitized grew 33% year-over-year to 50.7 billion.
• Non-GAAP net loss per share improved 50% year-over-year in Q4 2024 to $0.02.

Matterport, Inc. (MTTR) - Canvas Business Model: Value Propositions

You're looking at the core reasons customers choose Matterport, Inc., especially now that the company is operating under CoStar Group, Inc. following the acquisition in February 2025. The value proposition centers on turning physical spaces into usable, dimensionally accurate data assets.

• - Creating dimensionally accurate, immersive digital twins (virtual copies).
• - AI-powered tools like one-click defurnish and automated property descriptions.
• - All-in-one marketing hub (Matterport Marketing Cloud) for real estate agents.
• - Streamlining property management and construction project documentation.
• - Providing a single platform for 3D capture from pro cameras to smartphones.

The foundation of the value is the sheer scale of digitization. As of the end of fiscal year 2024, Matterport, Inc. had digitized and managed over 50.7 billion square feet of space, a 33% year-over-year jump. This massive library of spatial data is processed by the proprietary Cortex AI engine to create those digital twins.

The platform's utility is clearly reflected in the growth metrics leading up to the acquisition. You can see the scale of adoption here:

Metric	Value (End of FY 2024)
Total Subscribers	1.2 million
Spaces Under Management	14.1 million
Annualized Recurring Revenue (ARR)	$104.2 million
Full Year Subscription Revenue	$99.6 million
Full Year Total Revenue	$169.7 million

The AI-powered tools, introduced heavily in the Fall 2024 Release and expanded in the 2025 Winter Release, directly address workflow friction. For instance, the one-click defurnish tool lets users instantly remove furniture from virtual views, making listings market-ready in an instant. This automation is key; the Marketing Cloud, powered by Property Intelligence, can deliver a complete digital marketing package, including AI-generated descriptions, within 1-2 business days in major metros.

For property management and construction, the value translates into tangible time and cost savings. Digital twins are proven to help reduce travel time and cost by 50% and increase training efficiency by 30%. Furthermore, collaboration is sped up with features like multi-user scanning, which allows teams to merge up to 2,000 scan points into one digital twin faster.

Finally, the platform supports capture from nearly any source, which is a major convenience factor. You aren't locked into expensive hardware; the system processes data from professional 3D cameras like the Matterport Pro3 all the way down to a simple smartphone capture solution. This flexibility helps drive the sales funnel, as digital twins have been shown to help increase sales by 14%.

Finance: draft 13-week cash view by Friday.

Matterport, Inc. (MTTR) - Canvas Business Model: Customer Relationships

You're looking at how Matterport, Inc. keeps its growing user base engaged and supported as it scales its spatial data platform. The relationship strategy clearly splits between the high-volume, lower-touch individual user and the high-value, dedicated enterprise client. This dual approach is essential for managing a base that reached 1.2 million total subscribers by the end of fiscal year 2024.

The foundation for individual users is definitely the automated self-service and freemium model. This lets users start capturing and using the platform with minimal friction, which helps drive that subscriber growth. The subscription-based model itself is designed for long-term, recurring engagement, which you can see reflected in the financial results. For instance, the company achieved a record full-year subscription revenue of $99.6 million in 2024, a 14% increase year-over-year. The stickiness of this model is further suggested by the 107% net dollar expansion rate reported in Q1 2024.

For your larger clients, the relationship shifts entirely. Matterport, Inc. deploys dedicated account management and sales resources, particularly for its Enterprise subscribers. This is where services like Matterport Capture Services, which is a fully managed solution, come into play, offering a high-touch experience for complex or large-scale deployments. This segment is crucial for maintaining high Annualized Recurring Revenue (ARR), which hit a record of $104.2 million in Q4 2024.

Community engagement is another layer of relationship building. Matterport, Inc. fosters this through its 'Find a Pro' network, connecting customers needing capture services with qualified third-party professionals, and through various awards programs that recognize platform excellence. This ecosystem helps scale service delivery beyond the company's direct employees.

Handling support for both the software platform and the proprietary hardware-like the Pro3 camera-requires a multi-channel approach. You can see the breadth of their support structure by looking at the regional contact points they maintain. If a customer needs help, they have options for software support via the Help Center or Support Center, and direct contact for hardware or plan issues.

Here's a quick look at the scale of customer activity as of the end of 2024, which dictates the support load and relationship management focus:

Metric	Value (as of Dec 31, 2024)	Context
Total Subscribers	1.2 million	Reflects the self-service/freemium reach
Full Year Subscription Revenue	$99.6 million	Indicates recurring revenue success
Q4 Annualized Recurring Revenue (ARR)	$104.2 million	Key measure of forward-looking subscription commitment
Total Spaces Under Management	14.1 million	Volume of customer assets on the platform
Total Square Feet Digitized	50.7 billion	Scale of the digital twin library

For direct assistance, Matterport, Inc. provides several avenues for customer support, which you'd expect for a company dealing with both cloud software and physical scanning equipment. For urgent help in North America, phone support is available from 5am - 5pm PT. They also list specific contact numbers for EMEA and APAC regions, showing a global commitment to service delivery, even if the primary engagement for many is automated.

The introduction of tools like the Matterport Marketing Cloud in the 2025 Winter Release is designed to enhance the value proposition for existing users, which is a key tactic for fostering long-term relationships and reducing potential churn defintely.

Finance: draft 13-week cash view by Friday.

Matterport, Inc. (MTTR) - Canvas Business Model: Channels

You're looking at how Matterport, Inc., now operating as a subsidiary of CoStar Group following the acquisition completion in February 2025, gets its digital twin technology and related services to customers as of late 2025. The channel strategy is clearly shifting to leverage the parent company's massive reach.

Online platform and app stores for self-service subscription sign-ups.

This remains the foundation for the long tail of users, from individuals to smaller firms. As of the end of 2024, the total subscriber base stood at 1.2 million, which grew by 23% year-over-year. The Annualized Recurring Revenue (ARR) for Matterport hit a record $104.2 million in Q4 2024, indicating the scale of this self-service channel.

• Total Subscribers (End of 2024): 1.2 million.
• FY2024 Subscription Revenue: $99.6 million.
• Matterport Cloud feature, Space Analytics, tracks impressions, visits, and unique visitors.

Direct sales team focused on Enterprise and AEC segments.

Post-acquisition, the channel is being amplified by CoStar Group's existing sales infrastructure. For Q3 2025, Matterport was expected to contribute approximately $40 million in revenues to CoStar Group, with bookings expected to be up 194% year-over-year for that quarter. CoStar Group management explicitly stated plans to use its large sales team to market Matterport's digital twin solutions more broadly, focusing on business-to-business opportunities.

Metric	Value/Rate	Context/Period
Matterport Q3 2025 Revenue Expectation	$40 million	Q3 2025 (Post-integration)
Matterport Bookings YoY Growth Expectation	194%	Q3 2025
CoStar Group Commercial Info/Marketplaces Margin	47%	Q3 2025

E-commerce store for selling Matterport Pro3 and Axis hardware.

The hardware sales channel has seen a significant strategic pivot under CoStar Group. Matterport has discontinued sales of the Pro2 camera and the Axis motorized mount as of October 10, 2025, to focus efforts on the next generation of capture technology. The Pro3 camera remains the prioritized hardware offering. For context, a Matterport Pro3 Bundle was listed around $5,276 in late 2024, while a Pro2 Bundle was listed at $2,195 (down from $3,795).

CoStar Group's extensive commercial real estate marketplace and sales channels.

This is the primary integration play. CoStar Group reported Q3 2025 revenue of $834 million, up 20% year-over-year, with net new bookings surging 92% year-over-year to $84 million. The integration of Matterport is intended to enhance CoStar's marketplaces like LoopNet. LoopNet itself saw annualized net new bookings surge 200% year-over-year in Q1 2025.

• CoStar Group FY2025 Revenue Guidance (Raised): $3.23 billion to $3.24 billion.
• CoStar Group Q3 2025 Revenue: $834 million.
• LoopNet Net New Bookings YoY Increase: 200% (Q1 2025).

'Find a Pro' directory connecting customers with capture technicians.

This channel facilitates service delivery, often for customers who do not own the hardware or need specialized capture. The network, powered by We Get Around, connects hundreds of Matterport Pro 3D Camera Photographers across 32 countries. The associated Matterport User Group Forum pages were viewed as many as 42,000+ times a month, with many visitors searching for a Pro for referrals.

• Technicians/Agents in Referral Network: 375+ (as of late 2024/early 2025 context).
• Geographic Coverage: 32 countries.

Finance: finalize the Q3 2025 cash flow projection incorporating the full integration costs by next Tuesday.

Matterport, Inc. (MTTR) - Canvas Business Model: Customer Segments

You're analyzing the customer base for Matterport, Inc. as of late 2025, understanding that the business now operates under the CoStar Group umbrella following the February 2025 acquisition.

The platform's value proposition is built upon digitizing and indexing the built world, which supports a wide array of professional users. By the end of fiscal year 2024, Matterport, Inc. had achieved a total subscriber base of 1.2 million, representing a 23% year-over-year growth. The total square feet digitized and managed reached 50.7 billion as of December 31, 2024, marking a 33% increase from the prior year. The core revenue driver is the subscription model, which generated a record full-year revenue of $99.6 million in 2024, making up about 58.7% of the total revenue that year.

The customer segments are diverse, spanning the entire lifecycle of a physical asset, from initial design to ongoing operations and eventual claims processing. Here's a breakdown of the key groups driving this scale:

• - Real Estate Professionals (residential and commercial agents/brokers).
• - Architecture, Engineering, and Construction (AEC) firms for documentation.
• - Facilities Managers and Property Owners for operations and maintenance.
• - Insurance and Repair companies for claims and documentation.
• - Individual photographers and service providers (Capture Technicians).

The most granular data available points to the significant adoption within the real estate and design communities from the end of 2023, which sets the baseline for the current scale:

Customer Segment	Metric Type	Reported Value (As of Q4 2023)
Real Estate Professionals	Total Professionals	310,000+
Real Estate Professionals	Average Annual Spend	$1,728
Architects and Designers	Total Professionals	42,500
Architects and Designers	Estimated Annual Revenue	$6.3 million

The focus on recurring revenue is clear, with the Annualized Recurring Revenue (ARR) hitting a record of $104.2 million by the end of Q4 2024. This subscription focus suggests that the platform's stickiness with these professional segments is high, as they rely on the digital twins for daily workflows.

The platform's utility extends beyond the initial property listing phase, directly serving operational needs for larger entities. For instance, the company's technology supports engineering design and smart manufacturing, with specific competencies recognized in Manufacturing and Industrial sectors. The overall market opportunity is framed against the estimated $327 trillion global building stock, with Matterport, Inc. targeting an addressable market exceeding $240 billion.

The service offerings directly map to these segments, with Matterport Capture Services being a fully managed solution aimed at enterprise subscribers. The 2025 Winter Release, including the Matterport Marketing Cloud, was specifically designed to streamline property marketing workflows, directly benefiting the Real Estate Professional segment by integrating media creation, editing, distribution, and analytics.

Matterport, Inc. (MTTR) - Canvas Business Model: Cost Structure

You're looking at the final reported financials for Matterport, Inc. (MTTR) before the CoStar Group acquisition closed in early 2025, so these 2024 numbers are your clearest view of their cost base. Honestly, the structure shows a company heavily invested in growth, which is typical for a platform shifting to a subscription model, but the litigation hit was a major, one-time drag on GAAP results.

The primary cost centers for Matterport, Inc. in fiscal year 2024 revolved around developing the platform, acquiring customers, and managing the infrastructure to host that massive spatial data library. The litigation expense was a significant outlier that you must separate when looking at core operational costs.

• - High Research and Development (R&D) expenses, around $60.93 million in 2024.
• - Sales and Marketing intensity reflected in Selling, General & Administrative (SG&A) expenses of $184.93 million for the full year 2024.
• - Significant Legal and litigation costs, reported at $95.0 million for fiscal year 2024.

The Cost of Revenue (CoR) captures the direct costs of delivering the service and the product sales. Cloud hosting and data processing for the spatial data library fall under this umbrella, alongside the Cost of Goods Sold (CoGS) for hardware.

Here's the quick math on the revenue and associated costs from the last full fiscal year:

Cost/Revenue Component (FY 2024)	Amount (in millions USD)	Notes
Total Revenue	$169.70 million	Total top-line figure for the year.
Total Cost of Revenue (CoR)	$86.79 million	Includes hosting, service delivery, and product CoGS.
Subscription Revenue	$99.59 million	The recurring revenue stream, which should have a lower relative CoR.
Product Revenue (Hardware Sales)	$28.84 million	Directly tied to hardware CoGS component of CoR.
Service Revenue	$41.26 million	Includes Capture Services and likely a portion of cloud/data processing.

To be fair, separating cloud hosting from hardware CoGS within the $86.79 million CoR is tough without the full breakdown, but you can see that the subscription revenue, which is the future of the business, was $99.59 million, already exceeding the total CoR for the entire business. Still, the high SG&A of $184.93 million shows where the cash burn was concentrated outside of R&D and the one-time legal charge.

The key cost structure elements for Matterport, Inc. in 2024 were:

• Research and Development: $60.93 million.
• Selling, General & Administrative (SG&A): $184.93 million.
• Litigation Expense: $95.0 million (Non-GAAP exclusion).
• Total Operating Expenses (excluding litigation): $245.86 million minus $95 million (if litigation was in OpEx, which it often is for GAAP) or just using the reported OpEx of $245.86 million.

Finance: draft 13-week cash view by Friday.

Matterport, Inc. (MTTR) - Canvas Business Model: Revenue Streams

You're looking at the core ways Matterport, Inc. brings in cash, which is essential for understanding its valuation, especially given the pending acquisition by CoStar Group, Inc. The focus here is heavily weighted toward predictable, recurring income.

The primary engine for Matterport, Inc. revenue is its Software as a Service (SaaS) offering.

• Subscription Revenue (SaaS) from hosting and platform access, which was a record $99.6 million in FY 2024.
• Annualized Recurring Revenue (ARR) reached $104.2 million in Q4 2024.

This recurring revenue stream is supported by successful upselling, which shows existing customers are finding more value and expanding their usage. For instance, the Net Dollar Expansion rate was reported at 107% in Q1 2024, meaning that even after accounting for any customer churn, the remaining customers spent more than they did the prior year. Upselling to higher-tier plans with more active spaces and users is clearly working.

Beyond the subscription core, Matterport, Inc. also generates revenue from hardware and direct services, though the mix is shifting toward software.

Revenue Segment	Q4 2024 Amount (USD Millions)	Context/Source of Data
Subscription Revenue	$26.055	Q4 2024 Reported Segment Revenue
Services Revenue	$10.195	Q4 2024 Reported Segment Revenue
Product Revenue	$7.568	Q4 2024 Reported Segment Revenue

Product Revenue comes from the sale of Matterport Pro3 and other cameras/accessories needed to capture the initial spatial data. Services Revenue is tied to Matterport Capture Services, which is the fully managed solution for enterprise subscribers needing professional scanning.

To put the scale in perspective, here are the key metrics supporting these revenue streams as of the end of 2024:

• Total Revenue for FY 2024 reached $169.7 million.
• Total subscribers grew to 1.2 million by the end of 2024, a 23% year-over-year growth.
• Total square feet digitized and managed hit 50.7 billion, up 33% year-over-year.