Thread by @Innovestor_

$GHVI a thread! 👇👇👇
1)Key points
•250k+ customers
•$100M predicted revenue
•Founder Led
•Present in 150+ countries
•10B Sq Ft. Captured

2)Overview

Matterport were founded in 2011 and are to be brought public by $GHVI as a SPAC. Matterport allow customers to produce, store and distribute 3D Virtual Tours, most often used in real-estate and construction.
matterport.com/industries/gal…

They offer a native high-quality camera ($2,995) or allow you to use a handful of other 360 cameras on the market – including an iphone.

Matterport are arguably the $APPL of the 3D virtual tour business – boasting strong, slick branding with a nicely integrated product offering.

In order to store and distribute the virtual tours, you will need to sign up for a plan.

The lower end plan allows only a handful of ‘live’ virtual tours, whilst the higher-end plan limits you to 100 live tours.

3)Market Opportunity

Even before the pandemic, the virtual Tour industry was beginning to take off, however since March the demand for 3D Virtual tours has skyrocketed, with physical meetings being limited. This tech enabled real-estate to stay alive.

• March to June saw 157% increase in models created per week
• $ZG said it saw a 191% increase in the creation of 3D home tours in 1 week
• At the beginning of March $RDFN saw a 494% increase in requests for agent-led VT’s

One of Matterport’s goals is to digitize the built world which consists of over 20 billion spaces and over $430 Trillion in value.
Market report by MarketQuest indicate a market size of $406 M by 2025.

The image below is fairly exaggerated. However it shows the goal of the company is to become the go-to solution within the 3D virtual tour space. The equivalent of Netflix in streaming, or Zoom in Video conferencing.

4)Competition

Matterport are pretty much the OG in this space and a clear market leader. Competition includes…
•Zillow 3D home Tour
•VPiX
•EyeSpy360
•Pano2VR
•TourWeaver Standard
•3D Vista
•Kuula
…amongst many others. However few match Matterport’s quality.

5)Clients

The current and potential client base of the Matterport software/service is impressive, with multiple upsell opportunities – ranging from real-estate companies like Redfin, to Travel & Hospitality customers like $ABNB and apartments.com.

6)Innovation

Matterport are a big proponent of Artificial Intelligence and Deep Learning, as it is likely to add significant value to the product offering and potential business longer-term. The current software is able to use AI to measure surfaces, identify objects, etc.

Longer-term, we may see automatic property appraisals being carried out on the Matterport system, alongside a whole host of other use-cases I’m not smart enough to think up right now. The use-cases for this sort of technology throughout a wide variety of sectors is endless.

7)Future growth

Matterport have a clear plan to accelerate growth over the next 5 years.
•Unlock saas flywheel by enabling smartphone capture.
•Introduce new applications.
•Aquire new, larger customers.
•Scale Globally.
•Developer integration.

8)Leadership

The leadership team here looks really strong, with high-quality talent from $APPL $GOOG $PYPL $EBAY and more. Most importantly, it is still founder-led which really gives me confidence here and is a big green tick for me when looking at SPAC’s.

9)Financials

Looking at the financials surrounding SPAC’s is a tricky task, and something that consists mainly of speculation + guess-work. However, if projections are relatively accurate, we could see profitability by 2024.

Digging a bit deeper, we can see the mix of revenue source shift significantly from about 50/50 product/subscription to about 80% subscription.

This change, is likely the main driving factor behind the increase in total growth margin from 48.4% in 2020 to 73% in 2025.

Valuation-wise, I’ll leave it to @plantmath1 who has done an exceptional job here…

https://twitter.com/plantmath1/status/1360707880702406657

10)$GHVI

It’s good to see $GHVI having experience in the SPAC game. Most encouraging has got to be Luminar $LAZR who operate within the lidar sector. This could be a good synergy with Matterport’s core business and could lend itself nicely to the AI/machine learning aspect.

11)Moat

I'm not 100% convinced by the moat present here, though this is something that will show over time. There are already a bunch of similar companies offering good 3D tour services. If Matterport can Innovate effectively, they should be capable of breaking away.

12)Final thoughts

Overall I’m extremely excited about the potential of Matterport. I think 3D scanning is the future for so many industries, and Matterport are truly industry leaders when it comes to this space...

This SPAC seems pricy at the moment, however if they can execute their strategy, then we could easily see this being a multi-bagger over the next couple of years.

Thanks for reading! If you enjoyed, please do take a look at some of my other articles on Substack where I have deep-dived into companies like:

$RDFN
$SPOT
$TTCF
$PINS
...and many more.

innovestor.substack.com