Delaware |
7372 |
85-1695048 | ||
(State or other jurisdiction of incorporation or organization) |
(Primary Standard Industrial Classification Code Number) |
(I.R.S. Employer Identification Number) |
Large accelerated filer |
☐ |
Accelerated filer |
☐ | |||
Non-accelerated filer |
☒ | Smaller reporting company | ||||
Emerging growth company |
4 |
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5 |
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1 |
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6 |
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30 |
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31 |
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32 |
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46 |
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71 |
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78 |
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78 |
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85 |
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87 |
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91 |
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95 |
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101 |
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102 |
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106 |
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106 |
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106 |
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F-1 |
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II-1 |
• | “Bylaws” are to our second amended and restated bylaws dated July 22, 2021; |
• | “Closing” are to the consummation of the Merger; |
• | “Code” are to the Internal Revenue Code of 1986, as amended; |
• | “DGCL” are to the Delaware General Corporation Law, as amended; |
• | “Exchange Act” are to the Securities Exchange Act of 1934, as amended; |
• | “First Merger” are to the merger of First Merger Sub with and into Legacy Matterport; |
• | “First Merger Sub” are to Maker Merger Sub, Inc.; |
• | “Founder Shares” are to shares of GHVI’s Class F common stock, par value $0.0001 per share, and Matterport’s common stock issued upon the automatic conversion thereof at Closing; |
• | “GHVI” are to Gores Holdings VI, Inc., a Delaware corporation; |
• | “GHVI IPO” are to the initial public offering by GHVI which closed on December 15, 2020; |
• | “Legacy Matterport” are to Matterport, Inc., a Delaware corporation, prior to the consummation of the Merger; |
• | “Matterport” are to GHVI following the consummation of the Merger and its name change from Gores Holdings VI, Inc. to Matterport, Inc.; |
• | “Merger” are to, together, (i) the First Merger and (ii) the Second Merger; |
• | “Merger Agreement” are to that certain Agreement and Plan of Merger, dated as of February 7, 2021, by and among GHVI, Legacy Matterport, First Merger Sub and Second Merger Sub; |
• | “PIPE Investment” are to the purchase of shares of Matterport common stock pursuant to the Subscription Agreements; |
• | “PIPE Investors” are to the investors participating in the PIPE Investment; |
• | “Private Placement Warrants” are to the warrants issued by GHVI to the Sponsor in a private placement simultaneously with the closing of the GHVI IPO; |
• | “public shares” are to shares of GHVI’s Class A common stock sold as part of the units in the GHVI IPO (whether they were purchased in the GHVI IPO or thereafter in the open market); |
• | “Public Warrants” are to the warrants originally sold as part of the units in the GHVI IPO (whether they were purchased in the GHVI IPO or thereafter in the open market); |
• | “SEC” are to the United States Securities and Exchange Commission; |
• | “Second Amended and Restated Certificate of Incorporation” are to the second amended and restated certificate of incorporation of Matterport, Inc., dated July 22, 2021; |
• | “Second Merger Sub” are to Maker Merger Sub II, LLC; |
• | “Sponsor” are to Gores Sponsor VI, LLC, a Delaware limited liability company; |
• | “Subscription Agreements” are to the subscription agreements entered into by and between GHVI and the PIPE Investors, in each case, dated as of February 7, 2021 and entered into in connection with the PIPE Investment; |
• | “Warrants” are to the Public Warrants and the Private Placement Warrants. |
• | our public securities’ potential liquidity and trading; |
• | our ability to raise financing in the future; |
• | our success in retaining or recruiting our officers, key employees or directors, or changes required for the retention or recruitment of our officers, key employees or directors; |
• | the impact of the regulatory environment and complexities with compliance related to such environment; |
• | our ability to remediate our material weaknesses; |
• | factors relating to our business, operations and financial performance, including: |
• | the impact of the ongoing COVID-19 public health emergency or other infectious diseases, health epidemics and pandemics; |
• | our ability to maintain an effective system of internal controls over financial reporting; |
• | our ability to grow market share in our existing markets or any new markets we may enter; |
• | our ability to respond to general economic conditions; |
• | our ability to manage our growth effectively; |
• | our ability to achieve and maintain profitability in the future; |
• | our ability to access sources of capital; |
• | our ability to maintain and enhance our products and brand, and to attract and retain customers; |
• | our ability to manage, develop and refine our technology platform; |
• | the success of our strategic relationships with third parties; |
• | our history of losses and whether we will continue to incur losses for the foreseeable future; |
• | our ability to protect and enforce our intellectual property rights; |
• | our ability to implement business plans, forecasts, and other expectations to realize additional opportunities; |
• | our ability to attract and retain new subscribers; |
• | the size of the total addressable market for our products and services; |
• | the continued adoption of spatial data; |
• | any inability to complete acquisitions and integrate acquired businesses; |
• | general economic uncertainty and the effect of general economic conditions in our industry; |
• | environmental uncertainties and risks related to adverse weather conditions and natural disasters; |
• | the volatility of the market price and liquidity of our Class A common stock, par value $0.0001 per share (“Common Stock”) and other securities; |
• | the increasingly competitive environment in which we operate; and |
• | other factors detailed under the section entitled “Risk Factors” in this prospectus. |
• | If we fail to manage growth effectively, our business, operating results and financial condition could be adversely affected. |
• | If the assumptions, analyses or estimates underlying our forecasts and projections prove to be incorrect or inaccurate, our actual operating results may differ materially from those forecasted or projected. |
• | We have a history of losses and expect to incur significant expenses and continuing losses at least for the near term. |
• | Certain of our estimates of market opportunity and forecasts of market growth may prove to be inaccurate. |
• | We currently face competition from a number of companies and expect to face significant competition in the future as the market for spatial data develops. |
• | Global economic conditions and instability related to COVID-19 may adversely affect our business if existing and prospective clients reduce or postpone discretionary spending significantly. |
• | We may not be able to obtain sufficient components to meet our needs, or obtain such materials on favorable terms or at all, which could impair our ability to fulfill orders or increase our costs of production. |
• | If we are unable to attract and retain key employees and hire qualified management, technical, engineering and sales personnel, our ability to compete and successfully grow our business would be adversely affected. |
• | An earthquake, wildfire or other natural disaster or resource shortage, including public safety power shut-offs that have occurred and will continue to occur in California or other states, could disrupt and harm our operations. |
• | If we fail to retain current subscribers or add new subscribers, our business would be seriously harmed. |
• | We may be unable to build and maintain successful relationships with our strategic alliances and reseller partners, which could adversely affect our business, financial condition, results of operations and growth prospects. |
• | Potential future acquisitions, strategic investments, partnerships or alliances could be difficult to identify and integrate. Such projects may adversely affect our financial condition and results of operations. |
• | We may need to raise additional funds to finance our operations and these funds may not be available when needed. |
• | We expect to incur research and development costs in developing new products, which could significantly reduce our profitability and may never result in revenue. |
• | If we are unable to remediate identified material weaknesses or if additional material weaknesses are identified, we may not be able to accurately or timely report our financial position or results of operations, which may adversely affect our business. |
• | We are currently involved in litigation with one of our stockholders relating to the lock-up restrictions included in our Amended and Restated Bylaws. |
• | We may from time to time be involved in other lawsuits and litigation matters that are expensive and time-consuming. If resolved adversely, such lawsuits and other litigation matters could seriously harm our business. |
• | We cannot predict the duration or ultimate resolution of the investigation by the Division of Enforcement of the SEC, and cooperating with the request may require significant time and resources, which could have an adverse effect on our business and financial position. |
• | We rely significantly on the use of information technology. Cybersecurity risks—any technology failures causing a material disruption to operational technology or cyber-attacks on our systems affecting our ability to protect the integrity and security of customer and employee information—could harm our reputation and/or could disrupt our operations and negatively impact our business. |
• | Failure to comply with laws and regulations regarding data privacy and security matters could have a material adverse effect on our reputation, results of operations or financial condition. |
• | Our products are highly technical and may contain undetected software bugs or hardware errors, which could manifest in ways that could seriously harm our reputation and our business. |
• | Our products contain third-party open source software components, and a failure to comply with the terms of the underlying licenses could restrict our ability to deliver our platform or subject us to litigation or other actions. |
• | Our future growth and success are dependent upon the continuing rapid adoption of spatial data. |
• | Any delays in development of new services, products and service/product innovations could adversely affect market adoption of our products and services, thereby adversely affecting our business and financial results. |
• | We may need to defend against intellectual property infringement or misappropriation claims, which may be time-consuming and expensive, and adversely affect our business. |
• | Our business may be adversely affected if we are unable to protect our spatial data technology and intellectual property from unauthorized use by third parties. |
• | Changes to applicable U.S. tax laws and regulations or exposure to additional income tax liabilities could affect our business and future profitability. |
• | Our tax rates may fluctuate, our tax obligations may become significantly more complex and subject to greater risk of examination by taxing authorities and we may be subject to future changes in tax law, the impacts of which could adversely affect our after-tax profitability and financial results. |
• | Our ability to use our net operating loss carryforward and certain other tax attributes may be limited. |
• | We are an “emerging growth company” and a “smaller reporting company,” which could make our common stock less attractive to investors and may make it more difficult to compare our performance with other public companies. |
• | We have incurred and will continue to incur significant expenses and administrative burdens as a public company, which could have an adverse effect on our business, financial condition and results of operations. |
• | Failure to comply with laws relating to employment could subject us to penalties and other adverse consequences. |
• | Provisions in the Amended and Restated Bylaws designate the Court of Chancery of the State of Delaware as the sole and exclusive forum for certain types of actions and proceedings, which could limit the ability of our stockholders to obtain a favorable judicial forum for disputes and may discourage stockholders from bringing such claims. |
• | Unanticipated changes in effective tax rates or adverse outcomes resulting from examination of our income or other tax returns could adversely affect our financial condition and results of operations. |
• | Changes in laws, regulations or rules, or a failure to comply with any laws, regulations or rules, may adversely affect our business, investments and results of operations. |
• | The private placement warrants to legacy Matterport stockholders are recorded at fair value upon issuance/grant with changes in fair value reported in our earnings, which could have an adverse effect on the market price of our common stock and/or an adverse effect on our financial results. |
• | Our financial condition and results of operations are likely to fluctuate on a quarterly basis in future periods, which could cause our results for a particular period to fall below expectations, resulting in a decline in the price of our common stock. |
• | We do not intend to pay cash dividends for the foreseeable future. |
• | Our quarterly operating results may fluctuate significantly and could fall below the expectations due to seasonality and other factors, some of which are beyond our control, resulting in a decline in our stock price. |
• | The market price and trading volume of our common stock may be volatile and could decline significantly. |
• | If securities or industry analysts do not publish or cease publishing research or reports about us, our business, or our market, or if they change their recommendations regarding our common stock adversely, then the price and trading volume of our common stock could decline. |
• | Future issuances of debt securities and equity securities may adversely affect us, including the market price of our common stock and may be dilutive to existing stockholders. |
• | our competitors attempt to mimic our products, which could harm our subscriber engagement and growth; |
• | we fail to introduce new products and services or those we introduce are poorly received; |
• | we are unable to continue to develop products that work with a variety of mobile operating systems, networks, smartphones and computers; |
• | there are changes in subscriber sentiment about the quality or usefulness of our existing products; |
• | there are concerns about the privacy implications, safety, or security of our platform or products; |
• | there are changes in our platform or products that are mandated by legislation, regulatory authorities or litigation, including settlements or consent decrees that adversely affect the subscriber’s experience; |
• | technical or other problems frustrate subscribers’ experiences with our platform or products, particularly if those problems prevent us from delivering our products in a fast and reliable manner; or |
• | we fail to provide adequate service to subscribers. |
• | diversion of management time and focus from operating our business to addressing acquisition integration challenges; |
• | coordination of research and development and sales and marketing functions; |
• | integration of products and service offerings; |
• | retention of key employees from acquired companies; |
• | changes in relationships with strategic partners as a result of product acquisitions or strategic positioning resulting from such acquisitions; |
• | cultural challenges associated with integrating employees from acquired companies into our organization; |
• | integration of acquired companies’ accounting, management information, human resources and other administrative systems in our existing operations; |
• | the need to implement or improve controls, procedures, and policies at a business that, prior to acquisition, may have lacked sufficiently effective controls, procedures and policies; |
• | additional legal, regulatory or compliance requirements; |
• | financial reporting, revenue recognition or other financial or control deficiencies of acquired companies that we do not adequately address and that cause our reported results to be incorrect; |
• | liability for activities of acquired companies, including intellectual property infringement claims, violations of laws, commercial disputes, tax liabilities and other known and unknown liabilities; |
• | unanticipated write-offs or charges; and |
• | litigation or other claims in connection with acquired companies, including claims from terminated employees, customers, former stockholders or other third parties. |
• | We did not effectively design and maintain control environment commensurate with our financial reporting requirements. Specifically, we did not maintain a sufficient complement of personnel with an appropriate degree of internal controls and accounting knowledge, experience, and training commensurate with our accounting and reporting requirements. This material weakness contributed to the following additional material weaknesses. |
• | We did not effectively design and maintain controls over the period-end financial reporting process, to achieve complete, accurate and timely financial accounting, reporting and disclosures, including segregation of duties and adequate controls related to journal entries, account reconciliations and accounting for significant, or unusual transactions. This material weakness resulted in material audit adjustments to debt and derivatives, and immaterial audit adjustments to property and equipment, prepaid expenses, |
depreciation expense and selling, general and administrative (“SG&A”) expenses in the consolidated financial statements for the years ended December 31, 2020 and 2019, and immaterial misstatements to the consolidated financial statements for the year ended December 31, 2021. |
• | We did not effectively design and maintain controls over information technology (“IT”) general controls for information systems that are relevant to the preparation of our consolidated financial statements. Specifically, we did not design and maintain (i) program change management controls to ensure that information technology program and data changes affecting financial IT applications and underlying accounting records are identified, tested, authorized and implemented appropriately; (ii) user access controls to ensure appropriate segregation of duties and that adequately restrict user and privileged access to our financial applications, programs and data to appropriate personnel; (iii) computer operations controls to ensure that critical batch jobs are monitored, and data backups are authorized and monitored; and (iv) testing and approval controls for program development to ensure that new software development is aligned with business and IT requirements. |
• | any patent applications we submit may not result in the issuance of patents; |
• | the scope of issued patents may not be broad enough to protect proprietary rights; |
• | any issued patents may be challenged by competitors and/or invalidated by courts or governmental authorities; |
• | the costs associated with enforcing patents or other intellectual property rights may make aggressive enforcement impracticable; |
• | current and future competitors may circumvent patents or independently develop similar proprietary designs or technologies; and |
• | know-how and other proprietary information we purport to hold as a trade secret may not qualify as a trade secret under applicable laws. |
• | the availability of tax deductions, credits, exemptions, refunds and other benefits to reduce tax liabilities, |
• | changes in the valuation of deferred tax assets and liabilities, if any, |
• | expected timing and amount of the release of any tax valuation allowances, the tax treatment of stock-based compensation, |
• | changes in the relative amount of earnings subject to tax in the various jurisdictions, |
• | the potential business expansion into, or otherwise becoming subject to tax in, additional jurisdictions, |
• | changes to existing intercompany structure (and any costs related thereto) and business operations, |
• | the extent of intercompany transactions and the extent to which taxing authorities in relevant jurisdictions respect those intercompany transactions and |
• | the ability to structure business operations in an efficient and competitive manner. |
• | any derivative action or proceeding brought on behalf of us; |
• | any action asserting a claim of breach of a fiduciary duty owed by any of our directors, officers or other employees or our stockholders; |
• | any action asserting a claim against us, our directors, officers or employees arising pursuant to any provision of the DGCL, the Second Amended and Restated Certificate of Incorporation or the Amended and Restated Bylaws; or |
• | any action asserting a claim against us, our directors, officers or employees governed by the internal affairs doctrine. |
• | changes in the valuation of our deferred tax assets and liabilities; |
• | expected timing and amount of the release of any tax valuation allowances; |
• | tax effects of stock-based compensation; |
• | costs related to intercompany restructurings; |
• | changes in tax laws, regulations or interpretations thereof; or |
• | lower than anticipated future earnings in jurisdictions where we have lower statutory tax rates and higher than anticipated future earnings in jurisdictions where we have higher statutory tax rates. |
• | our ability to attract new subscribers and retain existing subscribers, including in a cost-effective manner; |
• | our ability to accurately forecast revenue and losses and appropriately plan our expenses; |
• | the timing of new product introductions, which can initially have lower gross margins; |
• | the effects of increased competition on our business; |
• | our ability to successfully maintain our position in and expand in existing markets as well as successfully enter new markets; |
• | our ability to protect our existing intellectual property and to create new intellectual property; |
• | supply chain interruptions and manufacturing or delivery delays; |
• | the length of the installation cycle for a particular location or market; |
• | the impact of COVID-19 on our workforce, or those of our customers, suppliers, vendors or business partners; |
• | disruptions in sales, production, service or other business activities or our inability to attract and retain qualified personnel; and |
• | the impact of, and changes in, governmental or other regulation affecting our business. |
• | labor availability and costs for hourly and management personnel; |
• | profitability of our products, especially in new markets and due to seasonal fluctuations; |
• | changes in interest rates; |
• | impairment of long-lived assets; |
• | macroeconomic conditions, both nationally and locally; |
• | negative publicity relating to products we serve; |
• | changes in consumer preferences and competitive conditions; |
• | expansion to new markets; and |
• | fluctuations in commodity prices. |
• | the realization of any of the risk factors presented in this prospectus; |
• | actual or anticipated differences in our estimates, or in the estimates of analysts, for our revenues, results of operations, level of indebtedness, liquidity or financial condition; |
• | additions and departures of key personnel; |
• | failure to comply with the requirements of Nasdaq; |
• | failure to comply with the Sarbanes-Oxley Act or other laws or regulations; |
• | future issuances, sales, resales or repurchases or anticipated issuances, sales, resales or repurchases, of our securities; |
• | publication of research reports about us; |
• | the performance and market valuations of other similar companies; |
• | commencement of, or involvement in, litigation involving us; |
• | broad disruptions in the financial markets, including sudden disruptions in the credit markets; |
• | speculation in the press or investment community; |
• | actual, potential or perceived control, accounting or reporting problems; |
• | changes in accounting principles, policies and guidelines; and |
• | other events or factors, including those resulting from infectious diseases, health epidemics and pandemics (including the ongoing COVID-19 public health emergency), natural disasters, war, acts of terrorism or responses to these events. |
• | Bringing offline buildings online. in-person site visits to understand and assess their buildings and spaces. While photographs and floor plans can be helpful, these forms of two-dimensional (“2D”) representation have limited information and tend to be static and rigid, and thus lack the interactive element critical to a holistic understanding of each building and space. With the AI-powered capabilities of Cortex, our proprietary AI software, representation of physical objects is no longer confined to static 2D images and physical visits can be eliminated. Cortex helps to move the buildings and spaces from offline to online and makes them accessible to our customers in real-time and on demand from anywhere. After subscribers scan their buildings, our visualization algorithms accurately infer spatial positions and depths from flat, 2D imagery captured through the scans and transform them into high- fidelity and precise digital twin models. This creates a fully automated image processing pipeline to ensure that each digital twin is of professional grade image quality. |
• | Driven by spatial data. |
• | Powered by AI and ML. |
• | Matterport Pro2 |
• | 360 Cameras. |
• | LEICA BLK360. |
• | Smartphone Capture. |
• | Deep learning: |
• | Dynamic 3D reconstruction: |
• | Computer Vision: 2D-from-3D |
• | Advanced image processing: de-noising, haze removal, sharpening, saturation and other adjustments to improve image quality. |
• | Add-ons: Encircle (easy-to-use WP Matterport Shortcode WP3D Models Rela (all-in-one CAPTUR3D (all-in-one |
• | Services: Matterport ADA Compliant Digital Twin |
• | Breadth and depth of the Matterport platform all-in-one |
• | Market leadership and first-mover advantage |
As of December 31, 2021, we had over 503,000 subscribers on our platform and approximately 6.7 million spaces under management. Our leadership is primarily driven by the fact that we were the first mover in digital twin creation. As a result of our first mover advantage, we have amassed a deep and rich library of spatial data that continues to compound and enhance our leadership position. |
• | Significant network effect |
• | Massive spatial data library as the raw material for valuable property insights low-cost digital and smartphone cameras. As of December 31, 2021, our data came from approximately 6.7 million spaces under management and approximately 20 billion captured square feet. As a result, we have taken property insights and analytics to new levels, benefiting subscribers across various industries. For example, facilities managers significantly reduce the time needed to create building layouts, leading to a significant decrease in the cost of site surveying and as-built modeling. AEC subscribers use the analytics of each as-built space to streamline documentation and collaborate with ease. |
• | Global reach and scale AI-powered spatial data platform worldwide. We have a significant presence in North America, Europe and Asia, with leadership teams and a go-to-market |
• | Broad patent portfolio supporting 10 years of R&D and innovation |
• | Superior capture technology AI-powered Cortex engine to automatically generate accurate digital twins from photos captured with a smartphone or 360 camera. |
• | Scale the enterprise across industry verticals. AI-powered capabilities, we pride ourselves on our ability to deliver value across the property lifecycle to subscribers from various end markets, including residential and commercial real estate, facilities management, retail, AEC, insurance and repair, and travel and hospitality. Going forward, we will continue to improve our proprietary data library and AI-powered platform to address the workflows of the industries we serve, while expanding our solutions and reaching new industries such as manufacturing and oil and gas. We also plan to increase investments in industry-specific sales and marketing initiatives to increase sales efficiency and drive subscriber and recurring revenue growth, particularly from large enterprise subscribers. |
• | Expand Internationally. |
• | Invest in research and development. AI-powered software engine, expand our solutions portfolio, and support seamless integration of our platform with third-party systems. We plan to concentrate on in-house innovation and expect to consider acquisitions on an opportunistic basis. We have a robust pipeline of new product releases. For example, in May 2020, we launched Matterport for iPhone |
• | Expand partner integrations and third-party developer platform |
scalable and secure enterprise platform, organizations across numerous industries have been able to automate workflows, enhance subscriber experiences and create custom extensions for high-value vertical applications. For example, in May 2020, we rolled out integration capability with Autodesk to help construction teams streamline documentation across workflows and collaborate virtually. In July 2021, by partnering with PTC, we offer a joint solution that gives customers a highly visual and interactive way to deliver digital content onto the environments capture by our platform. Going forward, we plan to develop additional strategic partnerships with leading software providers to enable more effective integrations and enlarge our marketplace of third-party applications. In November 2021, we launched a new plugin for Autodesk Revit customers, allowing them to upload a Matterport Scan-to-BIM add-ons that potentially increase the value of digitization. |
• | Online direct sales and downloads. Matterport for iPhone |
• | Direct sales. |
• | Subscriber success. |
• | Channel sales. |
• | Scale of data. |
• | Automation and scale of spaces under management. |
• | Capture ubiquity. Matterport for iPhone |
• | Open ecosystem. |
• | Brand recognition. |
• | Be a Leader: Generate Energy, Create Clarity, Deliver Success |
• | Be Inclusive: Seek Different Perspectives, Foster an Open Dialog, Create a Sense of Belonging |
• | Be the Customer: Understand Them, Delight Them, Help Them Win |
• | Bringing offline buildings online: visits in-person to understand and assess their buildings and spaces. With the AI-powered capabilities of Cortex, our proprietary AI software engine, the world’s building stock can move from offline to online and be accessible to our customers real-time and on demand from anywhere. |
• | Driven by spatial data: |
• | Powered by AI and ML: AI ML |
Year ended December 31, |
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2021 |
2020 |
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Spaces under management |
6.7 | 4.3 |
Year ended December 31, |
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2021 |
2020 |
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Free subscribers |
448 | 210 | ||||||
Paid subscribers |
55 | 44 | ||||||
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|
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Total subscribers |
503 | 254 | ||||||
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|
Three Months Ended December 31, |
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2021 |
2020 |
|||||||
Net dollar expansion rate |
110 | % | 112 | % |
Year ended December 31, |
||||||||
2021 |
2020 |
|||||||
GAAP loss from operations |
$ | (147,768 | ) | $ | (11,562 | ) | ||
Add back: stock based compensation expense, net |
100,844 | 2,505 | ||||||
Add back: acquisition-related costs |
887 | — | ||||||
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Non-GAAP loss from operations |
$ | (46,037 | ) | $ | (9,057 | ) | ||
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Year ended December 31, |
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2021 |
2020 |
|||||||
Net cash used in operating activities |
$ | (38,808 | ) | $ | (3,597 | ) | ||
Less: purchases of property and equipment |
810 | 30 | ||||||
Less: capitalized software and development costs |
7,200 | 4,854 | ||||||
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|
|
|
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Free cash flow |
$ | (46,818 | ) | $ | (8,481 | ) | ||
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Year Ended December 31, |
Change |
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2021 |
2020 |
$ |
% |
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Revenue: |
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Subscription |
$ | 61,275 | $ | 41,558 | $ | 19,717 | 47 | % | ||||||||
License |
4,761 | 3,500 | 1,261 | 36 | % | |||||||||||
Services |
12,592 | 7,702 | 4,890 | 63 | % | |||||||||||
Product |
32,546 | 33,124 | (578 | ) | (2 | )% | ||||||||||
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Total revenue |
111,174 | 85,884 | 25,290 | 29 | % | |||||||||||
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Costs of revenue: |
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Subscription |
14,754 | 11,445 | 3,309 | 29 | % | |||||||||||
License |
— | 69 | (69 | ) | (100 | )% | ||||||||||
Services |
10,046 | 6,131 | 3,915 | 64 | % | |||||||||||
Product |
26,403 | 20,300 | 6,103 | 30 | % | |||||||||||
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Total costs of revenue |
51,203 | 37,945 | 13,258 | 35 | % | |||||||||||
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|
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|
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Gross profit |
59,971 | 47,939 | 12,032 | 25 | % | |||||||||||
Gross margin |
54 |
% |
56 |
% |
||||||||||||
Operating expenses: |
||||||||||||||||
Research and development |
55,379 | 17,710 | 37,669 | 213 | % | |||||||||||
Selling, general, and administrative |
152,360 | 41,791 | 110,569 | 265 | % | |||||||||||
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|
|
|
|
|
|
|
|||||||||
Total operating expenses |
207,739 | 59,501 | 148,238 | 249 | % | |||||||||||
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|
|
|
|
|
|||||||||
Loss from operations |
(147,768 | ) | (11,562 | ) | (136,206 | ) | 1178 | % | ||||||||
Other income (expense): |
||||||||||||||||
Interest income |
1,811 | 19 | 1,792 | 9,432 | % | |||||||||||
Interest expense |
(676 | ) | (1,501 | ) | 825 | (55 | )% | |||||||||
Transaction costs |
(565 | ) | — | (565 | ) | — | % | |||||||||
Change in fair value of warrants liabilities |
(48,370 | ) | — | (48,370 | ) | — | % | |||||||||
Change in fair value of contingent earn-out liability |
(140,454 | ) | — | (140,454 | ) | — | % | |||||||||
Other expense, net |
(2,255 | ) | (900 | ) | (1,355 | ) | 151 | % | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Total expense |
(190,509 | ) | (2,382 | ) | (188,127 | ) | 7,898 | % | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Loss before provision (benefit) for income taxes |
(338,277 | ) | (13,944 | ) | (324,333 | ) | 2,326 | % | ||||||||
Provision (benefit) for income taxes |
(217 | ) | 77 | (294 | ) | (382 | )% | |||||||||
|
|
|
|
|
|
|
|
|||||||||
Net loss |
$ | (338,060 | ) | $ | (14,021 | ) | $ | (324,039 | ) | 2,311 | % | |||||
|
|
|
|
|
|
|
|
Year Ended December 31, |
||||||||||||||||
2021 |
2020 |
Change |
||||||||||||||
Amount |
Amount |
Amount |
% |
|||||||||||||
(dollars in thousands) |
||||||||||||||||
Subscription |
$ | 61,275 | $ | 41,558 | $ | 19,717 | 47 | % | ||||||||
License |
4,761 | 3,500 | 1,261 | 36 | % | |||||||||||
Services |
12,592 | 7,702 | 4,890 | 63 | % | |||||||||||
Product |
32,546 | 33,124 | (578 | ) | (2 | )% | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total revenue |
$ | 111,174 | $ | 85,884 | $ | 25,290 | 29 | % | ||||||||
|
|
|
|
|
|
|
|
Year Ended December 31, |
||||||||||||||||
2021 |
2020 |
Change |
||||||||||||||
Amount |
Amount |
Amount |
% |
|||||||||||||
(dollars in thousands) |
||||||||||||||||
Cost of subscription revenue |
$ | 14,754 | $ | 11,445 | $ | 3,309 | 29 | % | ||||||||
Cost of license revenue |
— | 69 | (69 | ) | (100 | )% | ||||||||||
Cost of services revenue |
10,046 | 6,131 | 3,915 | 64 | % | |||||||||||
Cost of products revenue |
26,403 | 20,300 | 6,103 | 30 | % | |||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total cost of revenue |
$ | 51,203 | $ | 37,945 | $ | 13,258 | 35 | % | ||||||||
|
|
|
|
|
|
|
|
Year Ended December 31, |
||||||||
2021 |
2020 |
|||||||
(dollars in thousands) |
||||||||
Gross profit |
$ | 59,971 | $ | 47,939 | ||||
Gross margin |
54 | % | 56 | % |
Year Ended December 31, |
||||||||||||||||
2021 |
2020 |
Change |
||||||||||||||
Amount |
Amount |
Amount |
% |
|||||||||||||
(dollars in thousands) |
||||||||||||||||
Research and development expenses |
$ | 55,379 | $ | 17,710 | $ | 37,669 | 213 | % |
Year Ended December 31, |
||||||||||||||||
2021 |
2020 |
Change |
||||||||||||||
Amount |
Amount |
Amount |
% |
|||||||||||||
(dollars in thousands) |
||||||||||||||||
Selling, general and administrative expenses |
$ | 152,360 | $ | 41,791 | $ | 110,569 | 265 | % |
Year Ended December 31, |
||||||||
2021 |
2020 |
|||||||
(dollars in thousands) |
||||||||
Interest income |
$ | 1,811 | $ | 19 |
Year Ended December 31, |
||||||||
2021 |
2020 |
|||||||
(dollars in thousands) |
||||||||
Interest expense |
$ | (676 | ) | $ | (1,501 | ) |
Year Ended December 31, |
||||||||
2021 |
2020 |
|||||||
(dollars in thousands) |
||||||||
Transaction costs |
$ | (565 | ) | $ | — |
Year Ended December 31, |
||||||||
2021 |
2020 |
|||||||
(dollars in thousands) |
||||||||
Change in fair value of warrants liabilities |
$ | (48,370 | ) | $ | — |
Year Ended December 31, |
||||||||
2021 |
2020 |
|||||||
(dollars in thousands) |
||||||||
Change in fair value of contingent earn-out liability |
$ | (140,454 | ) | $ | — |
Year Ended December 31, |
||||||||
2021 |
2020 |
|||||||
(dollars in thousands) |
||||||||
Other expense, net |
$ | (2,255 | ) | $ | (900 | ) |
Year Ended December 31, |
||||||||
2021 |
2020 |
|||||||
(dollars in thousands) |
||||||||
Provision for income taxes |
$ | (217 | ) | $ | 77 |
Year Ended December 31, |
||||||||
2021 |
2020 |
|||||||
(dollars in thousands) |
||||||||
Cash, cash equivalents, and investments: |
||||||||
Cash and cash equivalents |
$ | 139,519 | $ | 51,850 | ||||
Restricted cash |
468 | 400 | ||||||
Investments |
528,590 | — | ||||||
|
|
|
|
|||||
Total cash, cash equivalents, and investments |
$ | 668,577 | $ | 52,250 | ||||
|
|
|
|
Year Ended December 31, |
||||||||
2021 |
2020 |
|||||||
Cash provided by (used in): |
||||||||
Operating activities |
(38,808 | ) | (3,597 | ) | ||||
Investing activities |
(541,821 | ) | (4,884 | ) | ||||
Financing activities |
668,449 | 50,462 |
• | relevant precedent transactions involving our capital stock; |
• | external market conditions affecting the industry and trends within the industry; |
• | the rights, preferences and privileges of our redeemable convertible preferred stock relative to those of our common stock; |
• | our financial condition and operating results, including our levels of available capital resources; |
• | the progress of our research and development efforts, our stage of development and business strategy; |
• | the likelihood of achieving a liquidity event, such as an initial public offering or a sale of our given prevailing market conditions; |
• | the history and nature of our business, industry trends and competitive environment; |
• | the lack of marketability of our common stock; |
• | recent secondary stock sales and tender offers; |
• | equity market conditions affecting comparable public companies; and |
• | general U.S. and global market conditions. |
Name |
Age |
Position | ||||
Executive Officers and Employee Directors |
||||||
R.J. Pittman |
52 | Chief Executive Officer and Chairman | ||||
James D. Fay |
49 | Chief Financial Officer | ||||
Peter Presunka |
64 | Chief Accounting Officer | ||||
Jay Remley |
51 | Chief Revenue Officer | ||||
Japjit Tulsi |
46 | Chief Technology Officer | ||||
Non-Employee Directors |
||||||
Peter Hébert |
44 | Director | ||||
Mike Gustafson |
55 | Director | ||||
Jason Krikorian |
50 | Director | ||||
Key Employees |
||||||
Jean Barbagelata |
61 | Chief People Officer | ||||
David Gausebeck |
45 | Chief Scientist | ||||
Dave Lippman |
47 | Chief Design Officer | ||||
Lou Marzano |
55 | Vice President of Hardware R&D and Manufacturing |
• | Class I consists of R.J. Pittman and Peter Hébert, whose terms will expire at the Company’s first annual meeting of stockholders to be held after consummation of the Merger; |
• | Class II consists of Jason Krikorian, whose term will expire at the Company’s second annual meeting of stockholders to be held after consummation of the Merger; and |
• | Class III consists of Mike Gustafson, whose term will expire at the Company’s third annual meeting of stockholders to be held after consummation of the Merger. |
• | selecting a qualified firm to serve as the independent registered public accounting firm to audit the Company’s financial statements; |
• | helping to ensure the independence and overseeing the performance of the independent registered public accounting firm; |
• | reviewing and discussing the results of the audit with the independent registered public accounting firm and reviewing, with management and that firm, the Company’s interim and year-end operating results; |
• | reviewing the Company’s financial statements and critical accounting policies and estimates; |
• | reviewing the adequacy and effectiveness of the Company’s internal controls; |
• | developing procedures for employees to submit concerns anonymously about questionable accounting, internal accounting controls, or audit matters; |
• | overseeing the Company’s policies on risk assessment and risk management; |
• | overseeing compliance with the Company’s code of business conduct and ethics; |
• | reviewing related party transactions; and |
• | approving or, as permitted, pre-approving all audit and all permissible non-audit services (other than de minimis non-audit services) to be performed by the independent registered public accounting firm. |
• | reviewing, approving and determining, or making recommendations to the board of Company regarding, the compensation of the Company’s executive officers, including the Chief Executive Officer; |
• | making recommendations regarding non-employee director compensation to the Company’s full board of directors; |
• | administering the Company’s equity compensation plans and agreements with the Company executive officers; |
• | reviewing, approving and administering incentive compensation and equity compensation plans; and |
• | reviewing and approving the Company’s overall compensation philosophy. |
• | identifying, evaluating and selecting, or making recommendations to the Company board regarding nominees for election to the board of directors and its committees; |
• | considering and making recommendations to the Company board regarding the composition of the board of directors and its committees; |
• | developing and making recommendations to the Company board regarding corporate governance guidelines and matters; |
• | overseeing the Company’s corporate governance practices; |
• | overseeing the evaluation and the performance of the Company board and individual directors; and |
• | contribute to succession planning. |
• | R.J. Pittman, our Chief Executive Officer; |
• | James D. Fay, our Chief Financial Officer; and |
• | Japjit Tulsi, our Chief Technology Officer |
Name and Principal Position |
Year |
Salary ($) |
Bonus ($) (1) |
Options Awards ($) |
Stock Awards ($) (2) |
Non-Equity Incentive Plan Compensation ($) (3) |
All Other Compensation ($) (4) |
Total ($) |
||||||||||||||||||||||||
R.J. Pittman |
2021 | 390,000 | — | — | 157,368,502 | 163,691 | — | 157,922,193 | ||||||||||||||||||||||||
Chief Executive Officer |
2020 | 375,000 | — | — | — | 152,859 | — | 527,859 | ||||||||||||||||||||||||
James D. Fay |
2021 | 368,000 | — | — | 67,887,128 | 198,869 | — | 68,453,997 | ||||||||||||||||||||||||
Chief Financial Officer |
2020 | 360,500 | — | 248,750 | — | 162,356 | 4,807 | 776,413 | ||||||||||||||||||||||||
Japjit Tulsi |
2021 | 282,500 | 50,000 | — | 36,459,347 | 119,683 | — | 36,911,530 | ||||||||||||||||||||||||
Chief Technology Officer |
2020 | 254,506 | 50,000 | 756,000 | — | 87,429 | — | 1,147,935 |
(1) | Amount represents a sign-on bonus paid to Mr. Tulsi in connection with his commencement of employment with us that 50% was paid in January 2020 and the remaining 50% was paid to him in January 2021 pursuant to his employment offer letter with us. |
(2) | Amounts represent the aggregate grant date fair value of restricted stock units (“RSUs”) and Earn-out awards granted to our named executive officers computed in accordance with ASC Topic 718. Assumptions used to calculate these amounts are included in Item 8 Note 14 included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021. |
(3) | Amounts represent bonuses earned under our annual bonus plan for 2021. For additional information on these amounts, see “—Narrative to Summary Compensation Table – 2021 Bonuses” below. |
(4) | Amounts represent employer matching contributions under our 401(k) plan. |
• | medical, dental and vision benefits; |
• | medical and dependent care flexible spending accounts; |
• | short-term and long-term disability insurance; and |
• | life insurance |
Option Awards |
Stock Awards |
|||||||||||||||||||||||||||||||||
Name |
Grant Date |
Vesting Start Date |
|
Number of Securities Underlying Unexercised Options (#) Exercisable |
Number of Securities Underlying Unexercised Options (#) Unexercisable |
Option Exercise Price ($) |
Option Expiration Date |
Stock Awards— Number of Shares or Units of Stock That Have Not Vested (#) |
Stock Awards— Market Value of Shares or Units of Stock That Have Not Vested ($) (1) |
|||||||||||||||||||||||||
R.J. Pittman |
03/21/2019 | 12/3/2018 | (2) (3)(5) | 11,526,565 | 0.66 | 3/21/2029 | — | — | ||||||||||||||||||||||||||
03/21/2019 | — | (4) | 866,597 | — | 0.66 | 3/21/2029 | — | — | ||||||||||||||||||||||||||
03/21/2019 | 12/3/2018 | (2)(5) | 454,329 | 151,444 | 0.66 | 3/21/2029 | — | — | ||||||||||||||||||||||||||
07/22/2021 | 07/22/2021 | (8) | — | — | — | — | 1,440,701 | $ | 29,736,069 | |||||||||||||||||||||||||
10/1/2021 | 07/15/2021 | (6)(7) | — | — | — | — | 7,004,277 | $ | 144,568,277 |
Option Awards |
Stock Awards |
|||||||||||||||||||||||||||||||||
Name |
Grant Date |
Vesting Start Date |
|
Number of Securities Underlying Unexercised Options (#) Exercisable |
Number of Securities Underlying Unexercised Options (#) Unexercisable |
Option Exercise Price ($) |
Option Expiration Date |
Stock Awards— Number of Shares or Units of Stock That Have Not Vested (#) |
Stock Awards— Market Value of Shares or Units of Stock That Have Not Vested ($) (1) |
|||||||||||||||||||||||||
James D. Fay |
10/5/2017 | 09/11/2017 | (2) | 1,473,881 | — | 0.35 | 10/05/2027 | — | — | |||||||||||||||||||||||||
10/14/2020 | 10/14/2020 | (2)(9) | 125,213 | 364,728 | 1.14 | 10/14/2030 | — | — | ||||||||||||||||||||||||||
07/22/2021 | 07/22/2021 | (8) | — | — | — | — | 238,779 | $ | 4,928,399 | |||||||||||||||||||||||||
10/1/2021 | 07/15/2021 | (6)(7) | — | — | — | — | 3,263,470 | $ | 67,358,021 | |||||||||||||||||||||||||
Japjit Tulsi |
02/6/2020 | 01/21/2020 | (2)(6) | 1,381,675 | 1,501,821 | 0.66 | 2/06/2030 | — | — | |||||||||||||||||||||||||
07/22/2021 | 07/22/2021 | (8) | — | — | — | — | 319,584 | $ | 6,596,214 | |||||||||||||||||||||||||
10/1/2021 | 07/15/2021 | (6)(7) | — | — | — | — | 1,631,735 | $ | 33,679,010 |
(1) | Amount determined by multiplying the number of RSUs that have not vested by $20.64, the closing price of our Class A common stock on December 31, 2021. |
(2) | Represents an option vesting with respect to 25% of the shares subject to the option on the first anniversary of the vesting start date, and with respect to 1/48th of the shares subject to the option monthly thereafter, subject to the applicable executive’s continued service through the applicable vesting date. |
(3) | Represents an option that may be exercised as to all of the shares subject thereto before vesting, with any shares purchased subject to the Company’s right of repurchase at the original exercise price upon a termination of service, which repurchase right lapses in accordance with the option vesting schedule (described in Note (2) above). |
(4) | This option vested in full upon the closing of the Merger. |
(5) | (i) If the Company undergoes a change in control and the executive’s employment is terminated without “cause” (as defined in the executive’s offer letter) in connection with or following the change in control, the option shall vest in full, and (ii) if the Company undergoes a change in control and executive resigns his employment for “good reason” (as defined in the executive’s offer letter) in connection with or following the change in control, or the executive’s employment is terminated without “cause” other than in connection with or following a change in control, the option shall vest as to the number of shares that would have vested over the 12 months following the executive’s date of termination. Additionally, if the Company undergoes a change in control and the successor entity does not assume or substitute the option, the executive remains in continued employment with us through the closing of the change in control, and the executive’s employment with the successor entity does not continue following the change in control (other than due to the executive’s resignation without “good reason”), then the option shall vest immediately prior to the change in control to the same extent such option would have vested upon the executive’s termination of employment. |
(6) | If the Company undergoes a change in control and the executive’s employment is terminated by us or a successor entity without “cause” (as defined in the applicable award agreement) or the executive resigns due to certain material adverse changes to the executive’s position, work location, base compensation or working conditions, in either case, within 12 months following such change in control, then the option shall vest as to the number of shares that would have vested over the 12 months following the executive’s date of termination. |
(7) | Represents an RSU award vesting with respect to 1/16th of the total RSUs subject thereto on each quarterly anniversary of the vesting start date, subject to the applicable executive’s continued service through the applicable vesting date. |
(8) | Represents Earn-out shares that are issuable during the period beginning on the 180th day following the Closing and ending on the fifth anniversary of such date (the “Earn-out Period”), if the Common Share Price exceeds $13.00, $15.50, $18.00, $20.50, $23,00 and $25.50. Pursuant to the Merger Agreement, Common Share Price means the share price equal to the volume weighted average price of the Matterport Class A Stock for a period of at least 10 days out of 30 consecutive trading days ending on the trading day |
immediately prior to the date of determination. The Earn-out shares are subject to early release if a change of control that will result in the holders of the Company common stock receiving a per share price equal to or in excess of the price target as above (collectively, the “Earn-Out Triggering Events”). The estimated fair value of the total Earn-out Shares was determined based on a Monte Carlo simulation valuation model using a distribution of potential outcomes on monthly basis over the Earn-out Period using the most reliable information available to be issued include events that are not solely indexed to the common stock of the Company, see Note 14. Stock Plan under item 8 for more information. |
(9) | If the Company undergoes a change in control and the executive’s employment is terminated by us or a successor entity without “cause” or the executive resigns due to certain material adverse changes to the executive’s position, work location, base compensation or working conditions at any time following such change in control, then the option shall fully vest. |
Chair |
Non-Chair |
|||||||
Audit Committee |
$ | 20,000 | $ | 10,000 | ||||
Compensation Committee |
$ | 14,000 | $ | 7,000 | ||||
Nominating and Corporate Governance Committee |
$ | 8,000 | $ | 4,000 |
• | each person who is known to be the beneficial owner of more than 5% of our voting shares; |
• | each of our executive officers and directors; and |
• | all of our executive officers and directors as a group. |
Name and Address of Beneficial Owners |
Number of Shares of Common Stock |
% of Common Stock |
||||||
Directors and Executive Officers of the Company |
||||||||
R.J. Pittman (1)(2) |
14,134,778 | 5.0% | ||||||
James D. Fay (1)(3) |
1,481,054 | * | ||||||
Jay Remley (1)(4) |
1,664,578 | * | ||||||
Japjit Tulsi (1)(5) |
1,856,597 | * | ||||||
Mike Gustafson (1)(6) |
619,280 | * | ||||||
Peter Presunka (1) |
— | * | ||||||
Peter Hébert (7) |
21,938,167 | 7.8% | ||||||
Jason Krikorian (8) |
22,062,456 | 7.8% | ||||||
|
|
|
|
|||||
All Directors and Executive Officers of the Company as a Group (8 individuals) |
63,756,910 | 22.7% | ||||||
|
|
|
|
|||||
Five Percent Holders of the Company |
||||||||
Entities affiliated with Lux Capital Management (7) |
21,938,167 | 7.8% | ||||||
DCM VI, L.P. (8) |
22,062,456 | 7.8% |
* | Less than one percent. |
(1) | The principal business address is c/o Matterport, Inc., 352 East Java Drive, Sunnyvale, California 94089. |
(2) | Consists of (a) 1,249,426 shares of Common Stock and (b) 12,885,352 options exercisable for shares of Common Stock |
(3) | Consists of (a) 602,906 shares of Common Stock and (b) 878,148 options exercisable for shares of Common Stock. |
(4) | Consists of (a) 306,590 shares of Common Stock and (b) 1,357,988 options exercisable for shares of Common Stock. |
(5) | Consists of (a) 294,704 shares of Common Stock and (b) 1,561,893 options exercisable for shares of Common Stock. |
(6) | Consists of (a) 143,635 shares of Common Stock and (b) 475,645 options exercisable for shares of Common Stock. |
(7) | Consists of (a) 229,793 shares of Common Stock held by Peter Hebert (b) 15,174,620 shares of Common Stock held by Lux Ventures III, L.P., (c) 5,806,341 shares of Common Stock held by Lux Co-Invest Opportunities, L.P., (d) 719,947 shares of Common Stock held by Lux Ventures Cayman III, L.P. and (e) 7,466 shares of Common Stock held by Lux Ventures III Special Founders Fund, L.P. Lux Venture Partners III, LLC is the general partner of each of Lux Ventures III L.P. and Lux Ventures III Special Founders |
Fund, L.P. and exercises voting and dispositive power over the shares noted herein held thereby. Lux Co-Invest Partners, LLC is the general partner of Lux Co-Invest Opportunities, L.P. and exercises voting and dispositive power over the shares noted herein held by Lux Co-Invest Opportunities, L.P. Lux Ventures Cayman III General Partner Limited is the general partner of Lux Ventures Cayman III, L.P. and exercises voting and dispositive power over the shares noted herein held by Lux Ventures Cayman III, L.P. Peter Hébert and Josh Wolfe are the individual managing members of Lux Venture Partners III, LLC, Lux Co-Invest Partners, LLC and Lux Ventures Cayman III General Partner Limited. The individual managers, as the sole managers of Lux Venture Partners III, LLC, Lux Co-Invest Partners, LLC and Lux Ventures Cayman III General Partner Limited, may be deemed to share voting and dispositive power for the shares noted herein held by Lux Ventures III, L.P., Lux Co-Invest Opportunities, L.P., Lux Ventures Cayman III, L.P. and Lux Ventures III Special Founders Fund, L.P. Each of Lux Venture Partners III, LLC, Lux Co-Invest Partners, LLC and Lux Ventures Cayman III General Partner Limited, and the individual managers separately disclaim beneficial ownership over the shares noted herein except to the extent of their pecuniary interest therein. The address for these entities and individuals is c/o Lux Capital Management, 920 Broadway, 11th Floor, New York, NY 10010. |
(8) | Consists of shares of Common Stock held by DCM VI, L.P. Jason Krikorian is a general partner at DCM, which is an affiliate of DCM VI, L.P. Mr. Krikorian disclaims beneficial ownership of all shares held by DCM VI, L.P. except to the extent of his pecuniary interest therein. The address of DCM VI, L.P. and Mr. Krikorian is 2420 Sand Hill Road, Suite 200, Menlo Park, CA 94025. |
• | the resale of 89,156,827 shares of common stock issued to certain of the Selling Securityholders in connection with the consummation of the Merger by certain of the Selling Securityholders; and |
• | the resale of up to 1,707,886 outstanding warrants originally issued in a private placement concurrent with the initial public offering of the Company. |
Before the Offering |
After the Offering |
|||||||||||||||||||||||||||||||
Name of Selling Security holders |
Number of Shares of Common Stock |
Number of Warrants |
Number of Shares of Common Stock Being Offered (1) |
Number of Warrants Being Offered (2) |
Number of Shares of Common Stock |
Percentage of Outstanding Shares of Common Stock |
Number of Warrants |
Percentage of Outstanding Warrants |
||||||||||||||||||||||||
2016 Evan D. Metropoulos Trust (3) |
200,000 | — | 200,000 | — | — | — | — | — | ||||||||||||||||||||||||
C. Dean Metropoulos 2015 Delaware Trust (3) |
100,000 | — | 100,000 | — | — | — | — | — | ||||||||||||||||||||||||
2016 J. Daren Metropoulos Trust (3) |
200,000 | — | 200,000 | — | — | — | — | — | ||||||||||||||||||||||||
Tiger Global Investments, L.P. (3) |
3,600,000 | — | 3,600,000 | — | — | — | — | — | ||||||||||||||||||||||||
AEG Holdings, LLC (4) |
4,529,646 | 1,691,000 | 4,529,646 | 1,691,000 | — | — | — | — | ||||||||||||||||||||||||
Justin Wilson (3) |
1,006,286 | — | 1,006,286 | — | — | — | — | — | ||||||||||||||||||||||||
Andrew McBride (3)(6) |
43,564 | — | 43,564 | — | — | — | — | — | ||||||||||||||||||||||||
Mark Stone (3)(5) |
441,128 | — | 441,128 | — | — | — | — | — | ||||||||||||||||||||||||
Mag & Co fbo Fidelity Securities Fund: Fidelity Small Cap Growth Fund (3)(7) |
56,700 | — | 56,700 | — | — | — | — | — | ||||||||||||||||||||||||
ISLANDMOORING & CO FBO Fidelity Capital Trust: Fidelity Flex Small Cap Fund—Small Cap Growth Subportfolio (3)(7) |
500 | — | 500 | — | — | — | — | — | ||||||||||||||||||||||||
Powhatan & Co., LLC fbo Fidelity Securities Fund: Fidelity Small Cap Growth K6 Fund (3)(7) |
12,700 | — | 12,700 | — | — | — | — | — | ||||||||||||||||||||||||
Randall Bort (8) |
25,000 | — | 25,000 | — | — | — | — | — | ||||||||||||||||||||||||
Nancy Tellem (8) |
40,000 | — | 40,000 | — | — | — | — | — | ||||||||||||||||||||||||
Elizabeth Marcellino (8 ) |
25,000 | — | 25,000 | — | — | — | — | — | ||||||||||||||||||||||||
DCM VI, L.P. (9) |
22,062,456 | — | 19,858,056 | — | 2,204,400 | * | — | — |
Before the Offering |
After the Offering |
|||||||||||||||||||||||||||||||
Name of Selling Security holders |
Number of Shares of Common Stock |
Number of Warrants |
Number of Shares of Common Stock Being Offered (1) |
Number of Warrants Being Offered (2) |
Number of Shares of Common Stock |
Percentage of Outstanding Shares of Common Stock |
Number of Warrants |
Percentage of Outstanding Warrants |
||||||||||||||||||||||||
David Gausebeck |
11,882,022 | — | 10,504,164 | — | 1,377,858 | — | — | — | ||||||||||||||||||||||||
iGlobe Platinum Fund III Limited |
2,477,582 | — | 2,477,582 | — | — | — | — | — | ||||||||||||||||||||||||
iGlobe Platinum Fund II Pte Ltd |
1,744,815 | — | 1,547,815 | 170,000 | * | — | — | |||||||||||||||||||||||||
iGlobe Treasury Management Pte Ltd. |
2,139,850 | — | 2,139,850 | — | — | — | — | — | ||||||||||||||||||||||||
Lux Co-Invest Opportunities, L.P. (10) |
5,806,341 | — | 5,067,412 | — | 738,929 | * | — | — | ||||||||||||||||||||||||
Lux Ventures Cayman III, L.P. (10) |
719,947 | — | 627,126 | — | 92,821 | * | — | — | ||||||||||||||||||||||||
Lux Ventures III, L.P. (10) |
15,174,620 | — | 13,218,189 | — | 1,956,431 | * | — | — | ||||||||||||||||||||||||
Lux Ventures III Special Founders Fund, L.P. (10) |
7,466 | — | 6,483 | — | 983 | * | — | — | ||||||||||||||||||||||||
Matthew Tschudy Bell, as Trustee of the Matt Bell Living Trust Dated April 2, 2021 |
7,320,307 | — | 6,363,125 | — | 957,182 | * | — | — | ||||||||||||||||||||||||
Helen Lurie |
245,885 | — | 187,958 | — | 57,927 | * | — | — | ||||||||||||||||||||||||
The Bryn Mawr Trust Company of Delaware, trustee of the Bell Family 2021 Gift Trust, dated May 11, 2021 |
500,071 | — | 428,795 | — | 71,276 | * | — | — | ||||||||||||||||||||||||
The Bryn Mawr Trust Company of Delaware, trustee of the Bell-Lurie Family 2021 Gift Trust, dated May 11, 2021 |
498,798 | — | 4,217,522 | — | 71,276 | * | — | — | ||||||||||||||||||||||||
Navitas Capital Co-Invest II-B, L.P. |
1,101,044 | — | 991,032 | — | 110,012 | * | — | — | ||||||||||||||||||||||||
Navitas Capital Co-Invest II-D, LP |
275,261 | — | 247,758 | — | 27,053 | * | — | — | ||||||||||||||||||||||||
Navitas Capital I, LP |
1,049,347 | — | 860,570 | — | 188,777 | * | — | — | ||||||||||||||||||||||||
Navitas Capital II, LP |
1,101,145 | — | 991,123 | — | 110,022 | * | — | — | ||||||||||||||||||||||||
Navitas Capital II-A, LP |
130,934 | — | 117,852 | — | 13,082 | * | — | — | ||||||||||||||||||||||||
Navitas Capital II-D, LP |
616,041 | — | 554,488 | — | 61,553 | * | — | — | ||||||||||||||||||||||||
QUALCOMM Incorporated |
7,646,988 |
— | 7,646,988 | — | 1,944,112 | * | — | — | ||||||||||||||||||||||||
Wafra Venture Master Fund V LLC |
3,027,644 | — | 2,477,582 | — | 550,062 | * | — | — | ||||||||||||||||||||||||
Additional Selling Securityholders (11) |
1,939,813 |
16,886 | 1,939,813 |
16,886 | — | — | — | — |
* | Less than 1%. |
(1) | The amounts set forth in this column are the number of shares of common stock that may be offered by such Selling Securityholder using this prospectus. These amounts do not represent any other shares of our common stock that the Selling Securityholder may own beneficially or otherwise. |
(2) | The amounts set forth in this column are the number of warrants that may be offered by such Selling Securityholder using this prospectus. These amounts do not represent any other warrants that the Selling Securityholder may own beneficially or otherwise. |
(3) | These shares are being registered in accordance with the terms of a Subscription Agreement, dated as of February 7, 2021, by and between the Company and the Selling Securityholder. The shares were issued to the Selling Securityholder on July 22, 2021 in connection with the closing of the Transactions. |
(4) | Represents 2,301,418 shares held of record by AEG Holdings, LLC (“AEG”) and 2,228,228 shares and 1,691,000 warrants held of record by Gores Sponsor VI LLC (“Sponsor”). Alec Gores is the managing member of AEG. AEG is the managing member of the Sponsor. As such, Alec Gores may be deemed to have beneficial ownership of the securities beneficially owned by AEG. Additionally, each of AEG and Alec Gores may be deemed to have beneficial ownership of the securities beneficially owned by the Sponsor. Voting and disposition decisions with respect to such securities are made by Alec Gores. Alec Gores disclaims beneficial ownership of these securities except to the extent of any pecuniary interest therein. |
(5) | Mark Stone is the former Chief Executive Officer of GHVI. |
(6) | Andrew McBride is the former Chief Financial Officer and Secretary of GHVI. |
(7) | These accounts are managed by direct or indirect subsidiaries of FMR LLC. Abigail P. Johnson is a Director, the Chairman, the Chief Executive Officer and the President of FMR LLC. Members of the Johnson family, including Abigail P. Johnson, are the predominant owners, directly or through trusts, of Series B voting common shares of FMR LLC, representing 49% of the voting power of FMR LLC. The Johnson family group and all other Series B shareholders have entered into a shareholders’ voting agreement under which all Series B voting common shares will be voted in accordance with the majority vote of Series B voting common shares. Accordingly, through their ownership of voting common shares and the execution of the shareholders’ voting agreement, members of the Johnson family may be deemed, under the Investment Company Act of 1940, to form a controlling group with respect to FMR LLC. Neither FMR LLC nor Abigail P. Johnson has the sole power to vote or direct the voting of the shares owned directly by the various investment companies registered under the Investment Company Act (“Fidelity Funds”) advised by Fidelity Management & Research Company (“FMR Co”), a wholly owned subsidiary of FMR LLC, which power resides with the Fidelity Funds’ Boards of Trustees. Fidelity Management & Research Company carries out the voting of the shares under written guidelines established by the Fidelity Funds’ Boards of Trustees. |
(8) | The selling securityholder listed is a former director of GHVI. |
(9) | Consists of shares of Class A common stock held by DCM VI, L.P. Jason Krikorian is a general partner at DCM, which is an affiliate of DCM VI, L.P. Mr. Krikorian disclaims beneficial ownership of all shares held by DCM VI, L.P. except to the extent of his pecuniary interest therein. The address of DCM VI, L.P. and Mr. Krikorian is 2420 Sand Hill Road, Suite 200, Menlo Park, CA 94025. |
(10) | All holdings by entities associated with Lux Capital Management consist of (a) 15,174,620 shares of Class A common stock held by Lux Ventures III, L.P., (b) 5,806,341 shares of Class A common stock held by Lux Co-Invest Opportunities, L.P., (c) 719,947 shares of Class A common stock held by Lux Ventures Cayman III, L.P., and (d) 7,466 shares of Class A common stock held by Lux Ventures III Special Founders Fund, L.P. Lux Venture Partners III, LLC is the general partner of each of Lux Ventures III L.P. and Lux Ventures III Special Founders Fund, L.P. and exercises voting and dispositive power over the shares noted herein held thereby. Lux Co-Invest Partners, LLC is the general partner of Lux Co-Invest Opportunities, L.P. and exercises voting and dispositive power over the shares noted herein held by Lux Co-Invest Opportunities, L.P. Lux Ventures Cayman III General Partner Limited is the general partner of Lux Ventures Cayman III, L.P. and exercises voting and dispositive power over the shares noted herein held by Lux Ventures Cayman III, L.P. Peter Hébert and Josh Wolfe are the individual managing members of Lux Venture Partners III, LLC, Lux Co-Invest Partners, LLC and Lux Ventures Cayman III General Partner Limited. The individual managers, as the sole managers of Lux Venture Partners III, LLC, Lux Co-Invest Partners, LLC and Lux Ventures Cayman III General Partner Limited, may be deemed to share voting and dispositive power for the shares noted herein held by Lux Ventures III, L.P., Lux Co-Invest Opportunities, L.P., Lux Ventures Cayman III, L.P. and Lux Ventures III Special Founders Fund, L.P. Each of Lux Venture Partners III, LLC, |
Lux Co-Invest Partners, LLC and Lux Ventures Cayman III General Partner Limited, and the individual managers separately disclaim beneficial ownership over the shares noted herein except to the extent of their pecuniary interest therein. The address for these entities and individuals is c/o Lux Capital Management, 920 Broadway, 11th Floor, New York, NY 10010. |
(11) | The disclosure with respect to the remaining selling securityholders is being made on an aggregate basis, as opposed to an individual basis, because their aggregate holdings are less than 1% of the outstanding shares of our Class A common stock. |
• | we, GHVI or Legacy Matterport have been or are to be a participant; |
• | the amounts involved exceeded or exceeds $120,000; and |
• | any of our directors, executive officers or holders of more than 5% of our outstanding capital stock, or any immediate family member of, or person sharing the household with, any of these individuals or entities, had or will have a direct or indirect material interest. |
Name |
Shares of Series D Preferred Stock (1) |
Total Purchase Price |
||||||
Lux Co-Invest Opportunities, L.P.(2) |
5,498,666 | $ | 11,096,833 | |||||
DCM VI, L.P. (3) |
2,071,973 | $ | 4,181,439 | |||||
QUALCOMM Ventures LLC (4) |
1,734,888 | $ | 3,501,170 |
(1) | The shares of Series D Preferred Stock prior to the Merger have been retroactively restated to reflect the exchange ratio of approximately 4.1193 established in the Merger. |
(2) | Lux Co-Invest Opportunities, L.P. is an affiliate of Peter Hébert, a member of Legacy Matterport’s board of directors. |
(3) | DCM VI, L.P. is an affiliate of Jason Krikorian, a member of Legacy Matterport’s board of directors. |
(4) | QUALCOMM Ventures LLC is an affiliate of Carlos Kokron, a member of Legacy Matterport’s board of directors. |
Name |
Shares of Series D Preferred Stock issued upon conversion of the 2020 Notes (1) |
|||
Lux Co-Invest Opportunities, L.P.(2) |
1,116,078 | |||
DCM VI, L.P. (3) |
558,039 | |||
QUALCOMM Ventures LLC (4) |
223,216 |
(1) | The shares of Series D Preferred Stock prior to the Merger have been retroactively restated to reflect the exchange ratio of approximately 4.1193 established in the Merger. |
(2) | Lux Co-Invest Opportunities, L.P. is an affiliate of Peter Hébert, a member of Matterport’s board of directors. |
(3) | QUALCOMM Ventures LLC is an affiliate of Carlos Kokron, a member of Matterport’s board of directors. |
(4) | DCM VI, L.P. is an affiliate of Jason Krikorian, a member of Matterport’s board of directors. |
• | 640,000,000 shares of Common Stock, $0.0001 par value per share; and |
• | 30,000,000 shares of undesignated preferred stock, $0.0001 par value per share (“ Preferred Stock |
• | if we were to seek to amend the Second Amended and Restated Certificate of Incorporation to increase or decrease the par value of a class of the capital stock, then that class would be required to vote separately to approve the proposed amendment; and |
• | if we were to seek to amend the Second Amended and Restated Certificate of Incorporation in a manner that alters or changes the powers, preferences, or special rights of a class of capital stock in a manner that affected its holders adversely, then that class would be required to vote separately to approve the proposed amendment. |
• | prior to the date of the transaction, the board of directors of the corporation approved either the business combination or the transaction which resulted |
• | the interested stockholder owned at least 85% of the voting stock of the corporation outstanding at the time the transaction commenced, excluding |
• | at or subsequent to the date of the transaction, the business combination is approved by the board of directors of the corporation and authorized at an annual or special meeting of stockholders, and not by written consent, by the affirmative vote of at least two-thirds of the outstanding voting stock that is not owned by the interested stockholder. |
• | Board of Directors Vacancies |
• | Classified Board third-party from making a tender offer or otherwise attempting to obtain control of Matterport as it is more difficult and time consuming for stockholders to replace a majority of the directors on a classified board of directors. |
• | Directors Removed Only for Cause |
• | Supermajority Requirements for Amendments of The Second Amended and Restated Certificate of Incorporation and Amended and Restated Bylaws |
• | Stockholder Action; Special Meeting of Stockholders |
• | Notice Requirements for Stockholder Proposals and Director Nominations |
• | No Cumulative Voting |
• | Issuance of Undesignated Preferred Stock |
• | Choice of Forum |
Amended and Restated Bylaws; or (4) any action asserting a claim against Matterport, its directors, officers or employees governed by the internal affairs doctrine, except for, as to each of (1) through (4) above, any claim as to which the Court of Chancery determines that there is an indispensable party not subject to the jurisdiction of the Court of Chancery (and the indispensable party does not consent to the personal jurisdiction of the Court of Chancery within ten days following such determination), which is vested in the exclusive jurisdiction of a court or forum other than the Court of Chancery, or for which the Court of Chancery does not have subject matter jurisdiction. Unless Matterport consents in writing to the selection of an alternative forum, to the fullest extent permitted by law, the federal district courts of the United States is the exclusive forum for resolving any complaint asserting a cause of action arising under the federal securities laws of the United States against Matterport, its officers, directors, employees and/or underwriters. |
• | 1% of the total number of shares of our common stock then outstanding; or |
• | the average weekly reported trading volume of our common stock during the four calendar weeks preceding the filing of a notice on Form 144 with respect to the sale. |
• | the issuer of the securities that was formerly a shell company has ceased to be a shell company; |
• | the issuer of the securities is subject to the reporting requirements of Section 13 or 15(d) of the Exchange Act; |
• | the issuer of the securities has filed all Exchange Act reports and material required to be filed, as applicable, during the preceding 12 months (or such shorter period that the issuer was required to file such reports and materials), other than Form 8-K reports; and |
• | at least one year has elapsed from the time that the issuer filed current Form 10 type information with the SEC reflecting its status as an entity that is not a shell company. |
• | ordinary brokerage transactions and transactions in which the broker-dealer solicits purchasers; |
• | one or more underwritten offerings on a firm commitment or best efforts basis; |
• | block trades in which the broker-dealer will attempt to sell the shares of common stock or warrants as agent, but may position and resell a portion of the block as principal to facilitate the transaction; |
• | purchases by a broker-dealer as principal and resale by the broker-dealer for its accounts; |
• | an exchange distribution in accordance with the rules of the applicable exchange; |
• | privately negotiated transactions; |
• | distributions or transfers to their members, partners or shareholders; |
• | short sales effected after the date of the registration statement of which this prospectus is a part is declared effective by the SEC; |
• | through the writing or settlement of options or other hedging transactions, whether through an options exchange or otherwise; |
• | in market transactions, including transactions on a national securities exchange or quotations service or over-the-counter |
• | through trading plans entered into by a Selling Securityholder pursuant to Rule 10b5-1 under the Exchange Act that are in place at the time of an offering pursuant to this prospectus and any applicable prospectus supplement hereto that provide for periodic sales of their securities on the basis of parameters described in such trading plans |
• | directly to one or more purchasers, including through a specific bidding, auction or other process or in privately negotiated transactions; |
• | in “at the market” offerings, as defined in Rule 415 under the Securities Act, at negotiated prices, at prices prevailing at the time of sale or at prices related to such prevailing market prices, including sales made directly on a national securities exchange or sales made through a market maker other than on an exchange or other similar offerings through sales agents; |
• | through agents; |
• | through broker-dealers who may agree with the Selling Securityholders to sell a specified number of such shares of common stock or warrants at a stipulated price per share or warrant; |
• | by entering into transactions with third parties who may (or may cause others to) issue securities convertible or exchangeable into, or the return of which is derived in whole or in part from the value of, our shares of common stock; and |
• | a combination of any such methods of sale or any other method permitted pursuant to applicable law. |
F-2 | ||||
F-3 | ||||
F-4 | ||||
F-5 | ||||
F-6 | ||||
F-7 | ||||
F-9 |
Year Ended December 31, |
||||||||
2021 |
2020 |
|||||||
ASSETS |
||||||||
Current assets: |
||||||||
Cash and cash equivalents |
$ | $ | ||||||
Restricted cash |
||||||||
Short-term investments |
||||||||
Accounts receivable, net of allowance of $ |
||||||||
Inventories |
||||||||
Prepaid expenses and other current assets |
||||||||
Total current assets |
||||||||
Property and equipment, net |
||||||||
Long-term investments |
||||||||
Other assets |
||||||||
Total assets |
$ | $ | ||||||
LIABILITIES, REDEEMABLE CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS’ EQUITY (DEFICIT) |
||||||||
Current liabilities |
||||||||
Accounts payable |
$ | $ | ||||||
Current portion of long-term debt |
||||||||
Deferred revenue |
||||||||
Accrued expenses and other current liabilities |
||||||||
Total current liabilities |
||||||||
Warrants liability |
— | |||||||
Contingent earn-out liability |
||||||||
Long-term debt |
||||||||
Deferred revenue, non-current |
||||||||
Other long-term liabilities |
||||||||
Total liabilities |
||||||||
Commitments and contingencies (Note 8) |
||||||||
Redeemable convertible preferred stock, $ |
||||||||
Stockholders’ equity (deficit): |
||||||||
Common stock, $ |
||||||||
Additional paid-in capital |
||||||||
Accumulated other comprehensive income (loss) |
( |
) | ||||||
Accumulated deficit |
( |
) | ( |
) | ||||
Total stockholders’ equity (deficit) |
( |
) | ||||||
Total liabilities, redeemable convertible preferred stock and stockholders’ equity (deficit) |
$ | $ | ||||||
Year Ended December 31, |
||||||||
2021 |
2020 |
|||||||
Revenue: |
||||||||
Subscription |
$ | $ | ||||||
License |
||||||||
Services |
||||||||
Product |
||||||||
Total revenue |
||||||||
Costs of revenue: |
||||||||
Subscription |
||||||||
License |
||||||||
Services |
||||||||
Product |
||||||||
Total costs of revenue |
||||||||
Gross profit |
||||||||
Operating expenses: |
||||||||
Research and development |
||||||||
Selling, general, and administrative |
||||||||
Total operating expenses |
||||||||
Loss from operations |
( |
) | ( |
) | ||||
Other income (expense): |
||||||||
Interest income |
||||||||
Interest expense |
( |
) | ( |
) | ||||
Transaction costs |
( |
) | ||||||
Change in fair value of warrants liabilities |
( |
) | ||||||
Change in fair value of contingent earn-out liability |
( |
) | ||||||
Other expense, net |
( |
) | ( |
) | ||||
Total expense |
( |
) | ( |
) | ||||
Loss before provision (benefit) for income taxes |
( |
) | ( |
) | ||||
Provision (benefit) for income taxes |
( |
) | ||||||
Net loss |
$ | ( |
) | $ | ( |
) | ||
Net loss per share, basic and diluted |
$ | ( |
) | $ | ( |
) | ||
Weighted-average shares used in per share calculation, basic and diluted |
Year Ended December 31, |
||||||||
2021 |
2020 |
|||||||
Net loss |
$ | ( |
) | $ | ( |
) | ||
Other comprehensive income (loss), net of taxes: |
||||||||
Foreign currency translation gain (loss) |
( |
) | ||||||
Unrealized loss on available-for-sale |
( |
) | ||||||
Other comprehensive income (loss) |
$ | ( |
) | $ | ||||
Comprehensive loss |
$ | ( |
) | $ | ( |
) | ||
Redeemable Convertible Preferred Stock |
Common Stock |
Additional Paid-In Capital |
Accumulated Other Comprehensive Income (loss) |
Accumulated Deficit |
Total Stockholders’ Equity (Deficit) |
|||||||||||||||||||||||||||||||
Shares (1) |
Amount |
Shares (1) |
Amount |
|||||||||||||||||||||||||||||||||
Balance as of December 31, 2019 |
$ |
$ |
$ |
$ |
$ |
( |
) |
$ |
( |
) | ||||||||||||||||||||||||||
Net loss |
— | — | — | — | — | — | ( |
) | ( |
) | ||||||||||||||||||||||||||
Other comprehensive income |
— | — | — | — | — | — | ||||||||||||||||||||||||||||||
Conversion of convertible note to Series D redeemable convertible preferred stock |
— | — | — | — | — | |||||||||||||||||||||||||||||||
Issuance of Series D redeemable convertible preferred stocks net of issuance costs |
— | — | — | — | — | — | ||||||||||||||||||||||||||||||
Issuance of common stock upon exercise of stock options |
— | — | — | — | ||||||||||||||||||||||||||||||||
Issuance of common stock warrants net of issuance costs |
— | — | — | — | — | — | ||||||||||||||||||||||||||||||
Settlement of vested stock options |
— | — | — | — | ( |
) | — | — | ( |
) | ||||||||||||||||||||||||||
Repurchase and Retirement of common stock |
— | — | ( |
) | — | — | — | ( |
) | ( |
) | |||||||||||||||||||||||||
Stock-based compensation |
— | — | — | — | — | — | ||||||||||||||||||||||||||||||
Balance as of December 31, 2020 |
$ |
$ |
$ |
$ |
$ |
( |
) |
$ |
( |
) | ||||||||||||||||||||||||||
Net loss |
— | — | — | — | — | — | ( |
) | ( |
) | ||||||||||||||||||||||||||
Other comprehensive loss |
— | — | — | — | — | ( |
) | — | ( |
) | ||||||||||||||||||||||||||
Conversion of convertible note to Series D redeemable convertible preferred stock |
( |
) | ( |
) | — | — | ||||||||||||||||||||||||||||||
Issuance of Series D redeemable convertible preferred stock to a customer |
— | — | — | — | — | — | ||||||||||||||||||||||||||||||
Issuance of common stock upon exercise of stock options |
— | — | — | — | — | |||||||||||||||||||||||||||||||
Issuance of common stock upon exercise of legacy Matterport common stock warrants |
— | — | — | — | — | — | — | |||||||||||||||||||||||||||||
Issuance of common stock upon the reverse recapitalization, net of transaction costs |
— | — | — | — | ||||||||||||||||||||||||||||||||
Issuance of common stock upon exercise of public and private warrants |
— | — | — | — | ||||||||||||||||||||||||||||||||
Earn-out liability recognized upon the closing of the reverse recapitalization |
— | — | — | — | ( |
) | — | — | ( |
) | ||||||||||||||||||||||||||
Stock-based compensation |
— | — | — | — | — | — | ||||||||||||||||||||||||||||||
Balance as of December 31, 2021 |
$ |
$ |
$ |
$ |
( |
) |
$ |
( |
) |
$ |
||||||||||||||||||||||||||
(1) | The shares of the Company’s common and redeemable convertible preferred stock, prior to the Merger (as defined in Note 1) have been retroactively restated to reflect the exchange ratio of approximately |
Year Ended December 31, |
||||||||
2021 |
2020 |
|||||||
CASH FLOWS FROM OPERATING ACTIVITIES |
||||||||
Net Loss |
$ | ( |
) | $ | ( |
) | ||
Adjustments to reconcile net loss to net cash used in operating activities: |
||||||||
Depreciation and amortization |
||||||||
Amortization of debt discount |
||||||||
Amortization of investment premiums, net of accretion of discounts |
||||||||
Stock-based compensation, net of amounts capitalized |
||||||||
Change in fair value of warrants liabilities |
||||||||
Change in fair value of contingent earn-out liability |
||||||||
Transaction costs |
||||||||
Deferred income taxes |
( |
) | ||||||
Loss on extinguishment of debt and convertible notes |
||||||||
Allowance for doubtful accounts |
||||||||
Other |
( |
) | ( |
) | ||||
Changes in operating assets and liabilities: |
||||||||
Accounts receivable |
( |
) | ( |
) | ||||
Inventories |
( |
) | ( |
) | ||||
Prepaid expenses and other assets |
( |
) | ( |
) | ||||
Accounts payable |
||||||||
Deferred revenue |
||||||||
Accrued expenses and other liabilities |
||||||||
Net cash used in operating activities |
( |
) | ( |
) | ||||
CASH FLOWS FROM INVESTING ACTIVITIES: |
||||||||
Purchases of property and equipment |
( |
) | ( |
) | ||||
Capitalized software and development costs |
( |
) | ( |
) | ||||
Purchase of investments |
( |
) | ||||||
Investment in privately held companies |
( |
) | ||||||
Investment in convertible notes |
( |
) | ||||||
Net cash used in investing activities |
( |
) | ( |
) | ||||
CASH FLOW FROM FINANCING ACTIVITIES: |
||||||||
Proceeds from reverse recapitalization and PIPE financing, net |
||||||||
Payment of transaction costs related to reverse recapitalization |
( |
) | ||||||
Proceeds from issuance of redeemable convertible preferred stock, net |
||||||||
Proceeds from exercise of stock options |
||||||||
Proceeds from exercise of warrants |
||||||||
Proceeds from debt, net |
||||||||
Proceeds from convertible notes, net of issuance costs |
||||||||
Repayment of debt |
( |
) | ( |
) | ||||
Settlement of vested stock options |
( |
) | ||||||
Repurchase of common stock |
( |
) | ||||||
Net cash provided by financing activities |
||||||||
Net change in cash, cash equivalents, and restricted cash |
||||||||
Effect of exchange rate changes on cash |
( |
) | ||||||
Cash, cash equivalents, and restricted cash at beginning of year |
||||||||
Cash, cash equivalents, and restricted cash at end of period |
$ | |
$ | |
||||
Year Ended December 31, |
||||||||
2021 |
2020 |
|||||||
Supplemental disclosures of cash flow information |
||||||||
Cash paid for interest |
$ | $ | ||||||
Cash paid for taxes |
$ | $ | ||||||
Supplemental disclosures of non-cash investing and financing information |
||||||||
Contingent earn-out liability recognized upon the closing of the reverse recapitalization and re-allocation |
$ | $ | ||||||
Conversion of redeemable convertible preferred stock into common stock in connection with the reverse recapitalization |
$ | |
$ | |||||
Exchange of convertible notes for redeemable convertible preferred stock |
$ | $ | |
Machinery and equipment | ||
Furniture and fixtures | ||
Capitalized software and development costs | ||
Leasehold improvements | Shorter of remaining lease term or 10 years |
• | Immediately prior to the Closing, |
• | each issued and outstanding share of Legacy Matterport preferred stock was canceled and converted into the right to receive a total of |
• | each Legacy Matterport warrant was exercised in full in exchange for the issuance of |
• | each issued and outstanding share of Legacy Matterport common stock (including the items mentioned in above points) was canceled and converted into the right to receive an aggregate number of shares of Class A common stock equal to the Per Share Matterport Stock Consideration; |
• | each outstanding vested and unvested Legacy Matterport common stock option was converted into a rollover option, exercisable for shares of Matterport Class A common stock with the same terms except for the number of shares exercisable and the exercise price, each of which was adjusted using the Per Share Matterport Stock Consideration; and |
• | each outstanding and unvested Legacy Matterport RSU was converted into a rollover RSU for shares of Matterport Class A common stock with the same terms except for the number of shares, which were adjusted using the Per Share Matterport Stock Consideration |
Shares |
||||
Legacy Matterport Stockholders (1) |
||||
Public Stockholders of Gores |
||||
Initial Stockholders (defined below) of Class F Stock (2) |
||||
PIPE Investors (3) |
||||
Total |
||||
(1) | Excludes earn-out arrangement as they are not issuable until |
(2) | Represents shares of Class A common stock issued into which shares of Class F common stock of the Company (“Class F Stock”) were converted upon the consummation of the Merger. Excludes |
(3) | Includes the Initial Stockholders’ ownership of |
Year Ended December 31, |
||||||||
2021 |
2020 |
|||||||
Revenue: |
||||||||
United States |
$ | $ | ||||||
International |
||||||||
Total revenue |
$ | $ | ||||||
Year Ended December 31, |
||||||||
2021 |
2020 |
|||||||
Over time revenue |
$ | $ | ||||||
Point-in-time |
||||||||
Total |
$ | $ | ||||||
Year Ended December 31, |
||||||||
2021 |
2020 |
|||||||
Accounts receivable, net |
$ | $ | ||||||
Unbilled accounts receivable |
$ | $ | ||||||
Deferred revenue |
$ | $ |
Year Ended December 31, |
||||||||
2021 |
2020 |
|||||||
Balance—beginning of period |
$ | ( |
) | $ | ( |
) | ||
Increase in reserves |
( |
) | ( |
) | ||||
Write-offs |
||||||||
Balance—end of period |
$ | ( |
) | $ | ( |
) | ||
Year Ended December 31, |
||||||||
2021 |
2020 |
|||||||
Finished Goods |
$ | $ | ||||||
Work in process |
||||||||
Purchased parts and raw materials |
||||||||
Total inventories |
$ | $ | ||||||
Year Ended December 31, |
||||||||
2021 |
2020 |
|||||||
Machinery and equipment |
$ | $ | ||||||
Furniture and fixtures |
||||||||
Leasehold improvements |
||||||||
Capitalized software and development costs |
||||||||
Total property and equipment |
||||||||
Accumulated depreciation and amortization |
( |
) | ( |
) | ||||
Total property and equipment, net |
$ | $ | ||||||
Year Ended December 31, |
||||||||
2021 |
2020 |
|||||||
Accrued compensation |
$ | $ | ||||||
Tax payable |
||||||||
ESPP Contribution |
||||||||
Transaction cost payable |
||||||||
Other current liabilities |
||||||||
Total accrued expenses and other current liabilities |
$ | $ | ||||||
December 31, 2021 |
||||||||||||||||
Level 1 |
Level 2 |
Level 3 |
Total |
|||||||||||||
Financial Assets: |
||||||||||||||||
Cash equivalents: |
||||||||||||||||
Money market funds |
$ | $ | $ | $ | ||||||||||||
Total cash equivalents |
$ | $ | $ | $ | ||||||||||||
Short-term investments: |
||||||||||||||||
Non-U.S. government and agency securities |
||||||||||||||||
Corporate debt securities |
||||||||||||||||
Commercial paper |
||||||||||||||||
Total short-term investments |
$ | $ | $ | $ | ||||||||||||
Long-term investments: |
||||||||||||||||
U.S. government and agency securities |
$ | $ | $ | $ | ||||||||||||
Corporate debt securities |
||||||||||||||||
Total long-term investments |
$ | $ | $ | $ | ||||||||||||
Other assets: |
||||||||||||||||
Convertible notes receivable |
$ | $ | $ | $ | ||||||||||||
Total other assets: |
$ | $ | $ | $ | ||||||||||||
Total assets measured at fair value |
$ | $ | $ | $ | ||||||||||||
Financial Liabilities: |
||||||||||||||||
Public warrants liability |
$ | $ | $ | $ | ||||||||||||
Private warrants liability |
||||||||||||||||
Contingent earn-out liability |
||||||||||||||||
Total liabilities measured at fair value |
$ | $ | $ | $ | ||||||||||||
December 31, 2020 |
||||||||||||||||
Level 1 |
Level 2 |
Level 3 |
Total |
|||||||||||||
Financial Assets: |
||||||||||||||||
Cash equivalents: |
||||||||||||||||
Money market funds |
$ | $ | |
$ | |
$ | ||||||||||
Total cash equivalents |
$ | $ | $ | $ | ||||||||||||
Total assets measured at fair value |
$ | $ | $ | $ | ||||||||||||
December 31, 2021 |
||||||||||||||||
Amortized Cost |
Unrealized Gains |
Unrealized Losses |
Fair Value |
|||||||||||||
Investments: |
||||||||||||||||
U.S. government and agency securities |
$ | $ | $ | ( |
) | $ | ||||||||||
Non-U.S. government and agency securities |
( |
) | ||||||||||||||
Corporate debt securities |
( |
) | ||||||||||||||
Commercial paper |
( |
) | ||||||||||||||
Convertible notes receivable |
||||||||||||||||
Total available-for-sale |
$ | $ | $ | ( |
) | $ | ||||||||||
Amortized Cost |
Fair Value |
|||||||
Due within one year |
$ | $ | ||||||
Due between one and three years |
||||||||
Total |
$ | $ |
December 31, 2020 |
||||
Line of credit |
$ | |||
2019 term loan |
||||
2018 term loan |
||||
2020 term loan |
||||
Total debt |
$ | |||
Less: unamortized debt discount |
( |
) | ||
Total debt, net of debt discount |
||||
Less: Current portion of long-term debt |
( |
) | ||
Long-term debt |
$ | |||
Operating Leases |
Purchase Obligations |
Total Lease and Purchase Obligations |
||||||||||
2022 |
$ | $ | $ | |||||||||
2023 |
||||||||||||
2024 |
||||||||||||
2025 |
||||||||||||
Thereafter |
||||||||||||
Total |
$ | $ | $ | |||||||||
December 31, 2020 |
||||||||||||||||||||||||||||
Convertible preferred stock: |
Original Issuance Price |
Shares Authorized |
Shares Issued and Outstanding |
Shares of Common Stock if converted |
Carrying Value |
Aggregate Liquidation Preference |
Dividend Rate |
|||||||||||||||||||||
Series Seed redeemable |
$ | $ | $ | % | ||||||||||||||||||||||||
Series A-1 redeemable |
$ | % | ||||||||||||||||||||||||||
Series B redeemable |
$ | % | ||||||||||||||||||||||||||
Series C redeemable |
$ | % | ||||||||||||||||||||||||||
Series D redeemable |
$ | $ | % | |||||||||||||||||||||||||
$ | $ | |||||||||||||||||||||||||||
December 31, 2021 |
||||
Common stock reserved for Earn-out |
||||
Public and private warrants to purchase common stock |
||||
Common stock options outstanding and unvested RSUs |
||||
Shares available for future grant under 2021 Employee Stock Purchase Plan |
||||
Shares available for future grant under 2021 Incentive Award Plan |
||||
Total shares of common stock reserved |
||||
Foreign Currency Translation, Net of Tax |
Unrealized Losses on Available-for-Sale Debt Securities, Net of Tax |
Total |
||||||||||
Balance at December 31, 2020 |
$ | $ | $ | |||||||||
Net unrealized loss |
( |
) | ( |
) | ( |
) | ||||||
Balance at December 31, 2021 |
$ | ( |
) | $ | ( |
) | $ | ( |
) | |||
Foreign Currency Translation, Net of Tax |
Unrealized Gains on Available-for-Sale Debt Securities, Net of Tax |
Total |
||||||||||
Balance at December 31, 2019 |
$ | $ | $ | |||||||||
Net unrealized gain |
||||||||||||
Balance at December 31, 2020 |
$ | $ | $ | |||||||||
Public Warrants |
Private Warrants |
Total Warrants |
||||||||||
Warrants assumed upon the Closing of the Merger |
||||||||||||
Warrants Exercised |
( |
) | ( |
) | ( |
) | ||||||
Outstanding as of December 31, 2021 |
Public Warrants |
Private Warrants |
Total Warrant Liabilities |
||||||||||
Fair value at Closing of the Merger |
$ | $ | $ | |||||||||
Change in fair value |
||||||||||||
Warrants Exercised |
( |
) | ( |
) | ( |
) | ||||||
Fair value at December 31, 2021 |
$ | $ | $ |
As of |
||||||||
December 31, 2021 |
July 22, 2021 |
|||||||
Current stock price |
$ | $ | ||||||
Expected term (in years) |
||||||||
Expected volatility |
% | % | ||||||
Risk-free interest rate |
% | % | ||||||
Expected dividend yield |
% | % |
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) |
||||
Balance at December 31, 2020 |
$ | |||
Contingent earn-out liability recognized upon the closing of the Merger |
||||
Reallocation of Earn-out Shares to earn-out liability upon forfeitures |
||||
Change in fair value of earn-out liability |
||||
Balance at December 31, 2021 |
$ | |||
Options Outstanding |
||||||||||||||||
Number of Shares |
Weighted- Average Exercise Price Per Share |
Weighted- Average Remaining Contractual Term (Years) |
Aggregate Intrinsic Value |
|||||||||||||
Balance—December 31, 2019 |
$ | $ | ||||||||||||||
Granted |
||||||||||||||||
Expired or canceled |
( |
) | ||||||||||||||
Exercised |
( |
) | ||||||||||||||
Balance—December 31, 2020 |
$ | $ | ||||||||||||||
Expired or canceled |
( |
) | ||||||||||||||
Exercised |
( |
) | $ | |||||||||||||
Balance—December 31, 2021 |
$ | $ | ||||||||||||||
Options vested and exercisable—December 31, 2021 |
$ | $ | ||||||||||||||
RSUs and PRSUs |
||||||||
Number of Shares |
Weighted- Average Grant- Date Fair Value Price Per Share |
|||||||
Balance-December 31, 2020 |
$ | |||||||
Granted |
||||||||
Vested |
( |
) | ||||||
Canceled or forfeited |
( |
) | ||||||
Balance-December 31, 2021 |
$ | |||||||
Earn-out Award Outstanding |
||||||||
Number of Shares |
Weighted- Average Grant- Date Fair Value Price Per Share |
|||||||
Balance - December 31, 2020 |
$ | |||||||
Granted |
||||||||
Forfeited |
( |
) | ||||||
Balance - December 31, 2021 |
$ | |||||||
Year Ended December 31, | ||
2020 | ||
Expected term |
||
Expected volatility |
||
Risk-free interest rate |
||
Expected dividend yield |
Inception to December 31, | ||
2021 | ||
Current stock price |
$ | |
Expected term |
||
Expected volatility |
||
Risk-free interest rate |
||
Expected dividend yield |
Year Ended December 31, | ||
2021 | ||
Expected term |
||
Expected volatility |
||
Risk-free interest rate |
||
Expected dividend yield |
||
Grant-date fair value per share |
$ |
Year Ended December 31, |
||||||||
2021 |
2020 |
|||||||
Costs of revenue |
$ | $ | ||||||
Research and development |
||||||||
Selling, general, and administrative |
||||||||
Stock-based compensation, net of amounts capitalized |
||||||||
Capitalized stock-based compensation |
||||||||
Total stock-based compensation |
$ | $ | ||||||
Year Ended December 31, |
||||||||
2021 |
2020 |
|||||||
United States |
$ | ( |
) | $ | ( |
) | ||
Foreign |
||||||||
Loss before income taxes |
$ | ( |
) | $ | ( |
) | ||
Year Ended December 31, |
||||||||
2021 |
2020 |
|||||||
Current |
||||||||
State |
$ | $ | ||||||
International |
||||||||
Total current tax expense |
||||||||
United States |
||||||||
International |
( |
) | ||||||
Total deferred tax expense |
( |
) | ||||||
Total tax expense |
$ | ( |
) | $ | ||||
Year Ended December 31, |
||||||||
2021 |
2020 |
|||||||
Deferred tax assets: |
||||||||
Net operating loss carryforwards |
$ | $ | ||||||
Research and development credits carryforward |
||||||||
Accruals |
||||||||
Other |
||||||||
Interest expense carryforward |
||||||||
Fixed assets |
||||||||
Stock-based compensation |
||||||||
Total deferred tax assets |
$ | $ | ||||||
Less: valuation allowance |
( |
) | ( |
) | ||||
Deferred tax liabilities: |
||||||||
Intangibles |
( |
) | ( |
) | ||||
Deferred commissions |
( |
) | ( |
) | ||||
Total deferred tax liabilities |
( |
) | ( |
) | ||||
Net deferred tax assets |
$ | $ | ||||||
Description |
Balance at beginning of period |
Additions charges to costs and expenses |
Write-offs and deductions |
Balance at end of period |
||||||||||||
Valuation allowance for deferred tax assets |
||||||||||||||||
For the Year Ended December 31, 2021 |
||||||||||||||||
For the Year Ended December 31, 2020 |
Amount |
Expiration Years |
|||||||
NOLs, federal (Post December 31, 2017) |
$ | Do Not Expire | ||||||
NOLs, federal (Pre January 1, 2018) |
||||||||
NOLs, state |
||||||||
Tax credits, federal |
||||||||
Tax credits, state |
$ | Do Not Expire |
Year Ended December 31, |
||||||||
2021 |
2020 |
|||||||
Statutory federal income benefit rate |
% | % | ||||||
State income tax rate |
||||||||
Change in valuation allowance |
( |
) | ( |
) | ||||
Research and development credits |
||||||||
Other |
( |
) | ( |
) | ||||
Convertible notes — nondeductible |
( |
) | ||||||
Stock-based compensation |
( |
) | ( |
) | ||||
Change in fair value of contingent earn-out liability |
( |
) | ||||||
Change in fair value of warrants liabilities |
( |
) | ||||||
Foreign rate differential |
||||||||
Effective tax rate |
% | ( |
)% | |||||
Year Ended December 31, |
||||||||
2021 |
2020 |
|||||||
Unrecognized tax benefits — beginning |
$ | $ | ||||||
Gross Increases — prior-year unrecognized tax benefits |
||||||||
Gross Increases — current-year unrecognized tax benefits |
||||||||
Unrecognized tax benefits — ending |
$ | $ | ||||||
Year Ended December 31, |
||||||||
2021 |
2020 |
|||||||
Numerator : |
||||||||
Net loss attributable to common stockholders, basic and diluted |
$ | ( |
) | $ | ( |
) | ||
Denominator: |
||||||||
Weighted average shares used in computing net loss per share attributable to common stockholders, basic and diluted |
||||||||
Net loss per share attributable to common stockholders, basic and diluted |
$ | ( |
) | $ | ( |
) | ||
As of December 31, |
||||||||
2021 |
2020 |
|||||||
Public and private warrants |
||||||||
Earn-out shares |
||||||||
Redeemable convertible preferred stock, all series |
||||||||
Warrants to purchase common stock |
||||||||
Common stock options outstanding |
||||||||
Unvested RSUs |
||||||||
ESPP Shares |
||||||||
Total potentially dilutive common stock equivalents |
||||||||
Amount |
||||
SEC registration fee |
$ | 221,592.43 | ||
Legal fees and expenses |
* | |||
Accounting fees and expenses |
* | |||
Miscellaneous |
* | |||
|
|
|||
Total |
$ |
* |
||
|
|
* | These fees are calculated based on the securities offered and the number of issuances and accordingly cannot be determined at this time. |
• | On July 24, 2020, the Sponsor purchased an aggregate of 17,250,000 shares of Class F common stock, for an aggregate offering price of $25,000, or approximately $0.001 per share. On October 1, 2020, the Sponsor surrendered shares of Class F common stock to us for no consideration, on October 23, 2020, we effected a stock dividend with respect to the Class F common stock of 6,468,750 shares thereof and on November 13, 2020 the Sponsor surrendered 6,468,750 shares of Class F common stock to us for no consideration, resulting in an aggregate of 8,625,000 outstanding shares of Class F common stock; |
• | On December 15, 2020, we issued 4,450,000 warrants, at a price of $2.00 per warrant, to the Sponsor concurrently with the closing of the GHVI IPO; |
• | On July 22, 2021, we issued 96,627,736 shares of common stock to certain Legacy Matterport stockholders in connection with the Merger; |
• | On July 22, 2021, we issued 29,500,000 shares of common stock to certain qualified institutional buyers and accredited investors that agreed to purchase such shares in connection with the Merger for aggregate consideration of $295,000,000 and |
• | On January 5, 2022, we consummated the acquisition of 100% of the issued and outstanding equity interests in Enview, Inc. for an aggregate purchase price of approximately 1.59 million shares of our common stock and $35.5 million in cash. |
Incorporation by Reference |
||||||||||||
Exhibit Number |
Description |
Form |
File No. |
Exhibit |
Filing Date |
Filed Herewith | ||||||
10.6† | Matterport, Inc. 2021 Employee Stock Purchase Plan. | 8-K |
001-39790 |
10.4 | 7/28/2021 | |||||||
10.7 | Form of Individual Investor Subscription Agreement. | 8-K |
001-39790 |
10.1 | 2/8/2021 | |||||||
10.8 | Form of Institutional Investor Subscription Agreement. | 8-K |
001-39790 |
10.2 | 2/8/2021 | |||||||
10.9 | Offer Letter, dated November 20, 2018, by and between Matterport, Inc. and R.J. Pittman. | S-4 |
333-255050 |
10.6 | 4/6/2021 | |||||||
10.10 | Offer Letter, dated July 28, 2017, by and between Matterport, Inc. and James D. Fay. | S-4 |
333-255050 |
10.7 | 4/6/2021 | |||||||
10.11 | Offer Letter, dated January 16, 2020, by and between Matterport, Inc. and Japjit Tulsi. | S-4 |
333-255050 |
10.8 | 4/6/2021 | |||||||
10.12+ | Matterport, Inc. Amended and Restated 2011 Stock Incentive Plan. | 8-K |
001-39790 |
10.5 | 7/28/2021 | |||||||
10.13+ | Form of Option Agreement under the Matterport, Inc. Amended and Restated 2011 Stock Incentive Plan. | S-4 |
333-255050 |
10.10 | 4/6/2021 | |||||||
10.14+ | Form of Restricted Stock Unit Agreement under the Matterport, Inc. Amended and Restated 2011 Stock Incentive Plan. | S-4 |
333-255050 |
10.11 | 4/6/2021 | |||||||
10.15 | Matterport, Inc. Non-Employee Director Compensation Program | 10-K | 001-39790 |
10.15 | 3/18/2022 | |||||||
16.1 | Letter to the Securities and Exchange Commission from KPMG LLP | 8-K |
001-39790 |
16.1 | 7/28/2020 | |||||||
21.1 | List of Subsidiaries. | 10-K |
001-39790 |
21.1 | 3/18/2022 | |||||||
23.1 | Consent of PricewaterhouseCoopers LLP, independent registered public accounting firm of Matterport, Inc. | * | ||||||||||
23.2 | Consent of Latham & Watkins, LLP (included in Exhibit 5.1). | S-1 |
333-258936 |
5.1 | 8/19/2021 | |||||||
101.INS | Inline XBRL Instance Document - the instance document does not appear in the Interactive Data file because its XBRL tags are embedded within the Inline XBRL document. | * | ||||||||||
101.SCH | Inline XBRL Taxonomy Extension Schema Document. | * | ||||||||||
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document. | * | ||||||||||
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document. | * | ||||||||||
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document. | * |
Incorporation by Reference |
||||||||||||
Exhibit Number |
Description |
Form |
File No. |
Exhibit |
Filing Date |
Filed Herewith | ||||||
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document. | * | ||||||||||
104 | Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101) |
† | The schedules to this Exhibit have been omitted in accordance with Regulation S-K Item 601(b)(2). The Company agrees to furnish supplementally a copy of any omitted schedule to the Securities and Exchange Commission upon its request. |
+ | Indicates a management contract or compensatory plan, contract or arrangement. |
* | Filed herewith |
MATTERPORT, INC. | ||
By: | /s/ R.J. Pittman | |
Name: R.J. Pittman | ||
Title: Chief Executive Officer |
Signature |
Title | |
/s/ R.J. Pittman |
Chief Executive Officer and Chairman of the Board (Principal Executive Officer) | |
R.J. Pittman | ||
/s/ James D. Fay |
Chief Financial Officer (Principal Financial Officer) | |
James D. Fay | ||
/s/ Peter Presunka |
Chief Accounting Officer (Principal Accounting Officer) | |
Peter Presunka | ||
* |
Director | |
Michael B. Gustafson | ||
* |
Director | |
Peter Hébert | ||
* |
Director | |
Jason Krikorian |
*By: | /s/ R.J. Pittman | |
R.J. Pittman Attorney-in-fact |
Exhibit 23.1
CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
We hereby consent to the use in this Registration Statement on Form S-1 of Matterport, Inc. of our report dated March 18, 2022 relating to the financial statements of Matterport, Inc., which appears in this Registration Statement. We also consent to the reference to us under the heading Experts in such Registration Statement.
/s/ PricewaterhouseCoopers LLP
Atlanta, Georgia
April 6, 2022
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Cover Page |
12 Months Ended |
---|---|
Dec. 31, 2021 | |
Document Information [Line Items] | |
Document Type | POS AM |
Entity Registrant Name | Matterport, Inc./DE, |
Amendment Flag | false |
Entity Filer Category | Non-accelerated Filer |
Entity Central Index Key | 0001819394 |
Entity Small Business | true |
Entity Emerging Growth Company | true |
Entity Ex Transition Period | false |
Consolidated Balance Sheets (Parenthetical) - USD ($) |
Dec. 31, 2021 |
Dec. 31, 2020 |
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Statement of Financial Position [Abstract] | ||||
Allowance for credit loss | $ 291,000 | $ 799,000 | ||
Redeemable convertible preferred stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 | ||
Redeemable convertible preferred, authorized (in shares) | 30,000,000 | 125,405,000 | ||
Redeemable convertible preferred, issued (in shares) | 0 | 124,979,000 | ||
Redeemable convertible preferred, outstanding (in shares) | [1] | 0 | 124,979,000 | |
Redeemable convertible preferred liquidation preference | $ 0 | $ 166,131,000 | ||
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 | ||
Common stock, authorized (in shares) | 640,000,000 | 230,680,000 | ||
Common stock, issued (in shares) | 250,173,000 | 38,981,000 | ||
Common stock, outstanding (in shares) | 250,173,000 | 38,981,000 | ||
|
Consolidated Statements of Comprehensive Loss (Statement) - USD ($) $ in Thousands |
12 Months Ended | |
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Dec. 31, 2021 |
Dec. 31, 2020 |
|
Statement of Comprehensive Income [Abstract] | ||
Net loss | $ (338,060) | $ (14,021) |
Other comprehensive income (loss), net of taxes: | ||
Foreign currency translation gain (loss) | (187) | 99 |
Unrealized loss on available-for-sale securities, net of tax | (1,487) | 0 |
Other comprehensive income (loss) | (1,674) | 99 |
Comprehensive loss | $ (339,734) | $ (13,922) |
Consolidated Statements of Redeemable Convertible Preferred Stock and Stockholders' Equity (Deficit) (Parenthetical) |
Jul. 22, 2021 |
Jul. 21, 2021 |
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Statement of Stockholders' Equity [Abstract] | ||
Recapitalization exchange ratio | 4.1193 | 4.1193 |
Consolidated Statements of Cash Flows - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
|
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net loss | $ (338,060) | $ (14,021) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 5,824 | 4,778 |
Amortization of debt discount | 135 | 223 |
Amortization of investment premiums, net of accretion of discounts | 1,370 | 0 |
Stock-based compensation, net of amounts capitalized | 100,605 | 2,505 |
Change in fair value of warrants liabilities | 48,370 | 0 |
Change in fair value of contingent earn-out liability | 140,454 | 0 |
Transaction costs | 565 | 0 |
Deferred income taxes | (385) | 0 |
Loss on extinguishment of debt and convertible notes | 210 | 955 |
Allowance for doubtful accounts | 222 | 846 |
Other | (102) | (4) |
Changes in operating assets and liabilities: | ||
Accounts receivable | (7,170) | (3,264) |
Inventories | (1,946) | (1,731) |
Prepaid expenses and other assets | (7,751) | (1,109) |
Accounts payable | 8,812 | 616 |
Deferred revenue | 7,602 | 2,524 |
Accrued expenses and other liabilities | 2,437 | 4,085 |
Net cash used in operating activities | (38,808) | (3,597) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchases of property and equipment | (810) | (30) |
Capitalized software and development costs | (7,200) | (4,854) |
Purchase of investments | (532,561) | 0 |
Investment in privately held companies | (250) | 0 |
Investment in convertible notes | (1,000) | 0 |
Net cash used in investing activities | (541,821) | (4,884) |
CASH FLOW FROM FINANCING ACTIVITIES: | ||
Proceeds from reverse recapitalization and PIPE financing, net | 612,854 | 0 |
Payment of transaction costs related to reverse recapitalization | (10,013) | 0 |
Proceeds from issuance of redeemable convertible preferred stock, net | 0 | 43,689 |
Proceeds from exercise of stock options | 2,068 | 1,538 |
Proceeds from exercise of warrants | 76,607 | 0 |
Proceeds from debt, net | 0 | 6,221 |
Proceeds from convertible notes, net of issuance costs | 0 | 8,457 |
Repayment of debt | (13,067) | (8,049) |
Settlement of vested stock options | 0 | (956) |
Repurchase of common stock | 0 | (438) |
Net cash provided by financing activities | 668,449 | 50,462 |
Net change in cash, cash equivalents, and restricted cash | 87,820 | 41,981 |
Effect of exchange rate changes on cash | (83) | 117 |
Cash, cash equivalents, and restricted cash at beginning of year | 52,250 | 10,152 |
Cash, cash equivalents, and restricted cash at end of period | 139,987 | 52,250 |
Supplemental disclosures of cash flow information | ||
Cash paid for interest | 753 | 1,071 |
Cash paid for taxes | 80 | 52 |
Supplemental disclosures of non-cash investing and financing information | ||
Contingent earn-out liability recognized upon the closing of the reverse recapitalization and re-allocation | 237,122 | 0 |
Conversion of redeemable convertible preferred stock into common stock in connection with the reverse recapitalization | 164,461 | 0 |
Exchange of convertible notes for redeemable convertible preferred stock | $ 0 | $ 9,501 |
Organization and Description of Business |
12 Months Ended |
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Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Description of Business | ORGANIZATION AND DESCRIPTION OF BUSINESS Matterport, Inc. and its subsidiaries (collectively, “Matterport” or the “Company”) is leading the digitization and datafication of the built world. Matterport’s pioneering technology has set the standard for digitizing, accessing and managing buildings, spaces and places online. Matterport’s platform comprising innovative software, spatial data-driven data science, and 3D capture technology has broken down the barriers that have kept the largest asset class in the world, buildings and physical spaces, offline and underutilized for so long. The Company was incorporated in the state of Delaware in 2011. The Company is headquartered at Sunnyvale, California. On July 22, 2021 (the “Closing Date”), the Company consummated the merger (collectively with the other transactions described in the Merger Agreement, the “Merger”, “Closing”, or “Transactions”) pursuant to an Agreement and Plan of Merger, dated February 7, 2021 (the “Merger Agreement”), by and among the Company (formerly known as Gores Holdings VI, Inc.) (the “Company”), the
pre-Merger Matterport, Inc. (now known as Matterport Operating, LLC) (“Legacy Matterport”), Maker Merger Sub, Inc. (“First Merger Sub”), a direct, wholly owned subsidiary of the Company, and Maker Merger Sub II, LLC (“Second Merger Sub”), a direct, wholly owned subsidiary of the Company, pursuant to which First Merger Sub merged with and into Legacy Matterport, with Legacy Matterport continuing as the surviving corporation (the “First Merger”), and immediately following the First Merger and as part of the same overall transaction as the First Merger, Legacy Matterport merged with and into Second Merger Sub, with Second Merger Sub continuing as the surviving entity as a wholly owned subsidiary of the Company, under the new name “Matterport Operating, LLC” (the “Mergers”). Upon the closing of the Merger, we changed our name to Matterport, Inc. See Note 3 “ Reverse Recapitalization” for additional information. |
Summary of Significant Accounting Policies |
12 Months Ended | |||||||||||||||
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Dec. 31, 2021 | ||||||||||||||||
Accounting Policies [Abstract] | ||||||||||||||||
Summary of Significant Accounting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). Reclassification Certain prior-period amounts have been reclassified in the accompanying Consolidated Financial Statements and Notes thereto in order to conform to the current period presentation. Principles of Consolidation The accompanying consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. Use of Estimates The preparation of the accompanying consolidated financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions that affect the reported amounts and disclosures in the consolidated financial statements and accompanying notes. Significant estimates include assumptions related to the fair value of common stock and other assumptions used to measure stock-based compensation, valuation of deferred tax assets, the estimate of net realizable value of inventory, allowance for doubtful accounts, the fair value of common stock warrants, public and private warrants liability, and earn-out shares, and the determination of stand-alone selling price (“SSP”) of various performance obligations. As of December 31, 2021, future impact of the COVID-19 pandemic on the Company’s operational and financial performance will depend on certain developments, including the duration and spread of the pandemic, impact on the Company’s subscribers and their spending habits, impact on the Company’s marketing efforts, and effect on the Company’s suppliers, all of which are uncertain and cannot be predicted with certainty. As a result, many of the Company’s estimates and assumptions required increased judgment and these estimates may change materially in future periods. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and various other factors, including the current economic environment and the impact of COVID-19, which management believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. The Company adjusts such estimates and assumptions when dictated by facts and circumstances. Changes in those estimates resulting from continuing changes in the economic environment will be reflected in the consolidated financial statements in future periods. Actual results may differ materially from those estimates. Segment information The Company has a single operating segment and reportable segment. The Company’s chief operating decision-maker is its Chief Executive Officer, who reviews financial information presented on a consolidated basis for purposes of making operating decisions, assessing financial performance, and allocating resources. Refer to Note 4, for information regarding the Company’s revenue by geography. Substantially all of the Company’s long-lived assets are located in the United States. Concentration of Credit Risk and Other Risks and Uncertainties Financial instruments that subject the Company to concentrations of credit risk consist primarily of cash and cash equivalents, investments, and accounts receivable. The Company maintains its cash balances in accounts held by major banks and financial institutions located in the United States. Such bank deposits from time to time may be exposed to credit risk in excess of the Federal Deposit Insurance Corporation insurance limit, and the Company considers such risk to be minimal. We invest only in high-quality credit instruments and maintain our cash and cash equivalents and available-for-sale The Company’s accounts receivable is derived from customers located both inside and outside the United States. The Company mitigates its credit risks by performing ongoing credit evaluations of the financial condition of its customers and requires advance payment from customers in certain circumstances. The Company generally does not require collateral from its customers. No customer accounted for more than 10% of the Company’s total accounts receivable at December 31, 2021 and 2020. No customer accounted for more than 10% of the Company’s total revenue for the years ended December 31, 2021 and 2020. Cash, Cash Equivalents, and Restricted Cash The Company considers all highly liquid investments purchased with an original maturity of 90 days or less to be cash equivalents. Cash and cash equivalents include cash on hand and amounts on deposit with financial institutions. Amounts receivable from credit card processors of approximately $0.7 million and $0.8 million as of December 31, 2021 and 2020, respectively, are also considered cash equivalents because they are both short-term and highly-liquid in nature and are typically converted to cash approximately to business days from the date of the underlying transaction. The Company had restricted cash of $0.5 million and $0.4 million as of December 31, 2021 and 2020. The restricted cash is cash deposits restricted under the 2020 Term Loan. Refer to Note 7. Debt for additional information. Accounts Receivable, Net Accounts receivable consists of current trade receivables due from customers recorded at the invoiced amount, net of allowances for doubtful accounts. The Company’s accounts receivable represent amounts due from customers arising from revenue and are stated at the amount the Company expects to collect from outstanding balances. On a periodic basis, the Company evaluates accounts receivable estimated to be uncollectible and provides allowances, as necessary, for doubtful accounts. As of December 31, 2021 and 2020, the allowance for doubtful accounts was $0.3 million and $0.8 million, respectively. Fair Value Measurement The Company accounts for certain of its financial assets and liabilities at fair value. The Company uses a three-level hierarchy, which prioritizes, within the measurement of fair value, the use of market-based information over entity-specific information for fair value measurements based on the nature of inputs used in the valuation of an asset or liability as of the measurement date. Fair value focuses on an exit price and is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities which are required to be recorded at fair value, the Company considers the principal or most advantageous market in which the Company would transact and the market-based risk measurements or assumptions that market participants would use in pricing the asset or liability, such as risks inherent in valuation techniques, transfer restrictions and credit risks. The inputs or methodology used for valuing financial instruments are not necessarily an indication of the risk associated with investing in those financial instruments. Accounts receivable and accounts payable are carried at cost, which approximates fair value due to the short maturity of these instruments. Short-term and long-term debt is carried at amortized cost, which approximates its fair value based on borrowing rates as of December 31, 2020 available to the Company for loans with similar terms. The fair value of the Company’s debt is determined based on Level 2 inputs using primarily observable markets. Inventories Inventories consist primarily of finished goods, assemblies, and raw materials. Assemblies are generally purchased from contract manufacturers. Inventories are valued at the lower of cost or net realizable value. Costs are determined using standard cost, which approximates actual cost on a first-in, first-out basis. The Company assesses the valuation of inventory and periodically adjusts the value for estimated excess and obsolete inventory based upon estimates of future demand and market conditions, as well as damaged or otherwise impaired goods. The Company recorded a provision for excess and obsolete inventory of nil and $0.1 million for the years ended December 31, 2021 and 2020, respectively. Property and Equipment, Net Property and equipment are stated at cost, less accumulated depreciation and are depreciated on a straight-line basis over their estimated useful lives as follows:
Upon retirement or sale, the cost and related accumulated depreciation are removed from the consolidated balance sheets and the resulting gain or loss is reflected in general and administrative expenses in the consolidated statements of operations. Maintenance and repairs are charged to operations as incurred. Long-Lived Assets, Net The Company evaluates the recoverability of its property and equipment and finite-lived intangible assets for possible impairment whenever events or circumstances indicate that the carrying amount of such assets may not be recoverable. The evaluation is performed at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. Recoverability of these assets is measured by a comparison of the carrying amounts to the future undiscounted cash flows the assets are expected to generate. If such review determines that the carrying amount of specific property and equipment is not recoverable, the carrying amount of such assets is reduced to its fair value. There was no impairment of long-lived assets for the years ended December 31, 2021 and 2020. Acquired property and equipment and finite-lived intangible assets are amortized over their useful lives. The Company evaluates the estimated remaining useful life of these assets when events or changes in circumstances warrant a revision to the remaining period of amortization. If the Company revises the estimated useful life assumption for any asset, the remaining unamortized balance is amortized or depreciated over the revised estimated useful life on a prospective basis. Investments The Company classifies its investments in marketable and non-marketable securities as available-for-sale Unrealized gains and losses on available-for-sale amortized cost basis. When we determine that the decline in fair value of an investment is below our accounting basis and the decline is other-than-temporary, we reduce the carrying value of the security we hold and record a loss for the amount of such decline. The Company also has certain private equity investments without readily determinable fair values due to the absence of quoted market prices, the inherent lack of liquidity, and the fact that inputs used to measure fair value are unobservable and require management’s judgment. The Company elected the measurement alternative to record these investments at cost and to adjust for impairments and observable price changes resulting from transactions with the same issuer within the statement of operations. Refer to Note 6. Fair Value Measurements for additional information. Transaction costs Transaction costs consist of direct legal, accounting and other fees relating to the consummation of the Merger. These costs were initially capitalized as incurred in other assets on the consolidated balance sheets. Upon the Closing, transaction costs related to the issuance of shares were recognized in stockholders’ equity (deficit) while costs associated with the public and private warrants liabilities were expensed in the consolidated statements of operations. The Company and Gores incurred $10.0 million and $26.3 million transaction costs, respectively. The total transaction cost was $36.3 million, consisting of underwriting, legal, and other professional fees, of which $35.7 million was recorded to additional paid-in capital as a reduction of proceeds and the remaining $0.6 million was expensed immediately upon the Closing. As of December 31, 2020, $0.1 million of deferred transaction costs were included within other assets in the consolidated balance sheet. Business Combination Business acquisitions are accounted for using the acquisition method under Accounting Standards Codifications (“ASC”) 805, Business Combinations Warrants Liability The Company assumed publicly-traded warrants (“Public Warrants”) and private warrants (“Private Warrants”) upon the Closing. The Company accounts for warrants for shares of the Company’s Class A common stock that are not indexed to its own stock as liabilities at fair value on the balance sheet. The warrants are subject to remeasurement at each balance sheet date and any change in fair value is recognized in the Company’s statement of operations. For issued or modified warrants that meet all of the criteria for equity classification, the warrants are required to be recorded as a component of additional paid-in capital at the time of issuance. For issued or modified warrants that do not meet all the criteria for equity classification, the warrants are required to be recorded as a liability at their initial fair value on the date of issuance, and each balance sheet date thereafter. Changes in the estimated fair value of the warrants are recognized as a non-cash gain or loss on the statements of operations. Earn-out Arrangement In connection with the reverse recapitalization and pursuant to the Merger Agreement, eligible Legacy Matterport stockholders and Legacy Matterport stock option and restricted share unit (“RSU”) holders are entitled to receive an aggregate of 23,460,000 shares of the Company’s Class A common stock (“Earn-out Shares”) upon the Company achieving certain Earn-out Triggering Events during the Earn-out Period (as described in Note 13). In accordance with ASC 815-40, Earn-out Shares issuable to Legacy Matterport common stockholders in respect of such common stock are not solely indexed to the common stock and therefore are accounted for as contingent earn-out liability on the consolidated balance sheet at the reverse recapitalization date and subsequently remeasured at each reporting date with changes in fair value recorded a component of other income (expense), net in the consolidated statements of operations. Earn-out Shares issuable to certain holders of Legacy Matterport stock options and RSUs in respect of such stock options and RSUs (the “Earn-out Awards”) are subject to forfeiture and are accounted for in accordance with ASC 718. The Company measures and recognizes stock-compensation expense based on the fair value of the Earn-out Awards over the derived service period for each tranche. Forfeitures are accounted for as they occur. Upon the forfeiture of Earn-out Shares issuable to any eligible holder of Legacy Matterport stock options and RSUs, the forfeited Earn-out awards are subject to reallocation and grant on a pro rata basis to the remaining eligible Legacy Matterport stockholders and stock options and RSUs holders. The reallocated issuable shares to Legacy Matterport common stockholders are recognized as contingent earn-out liability, and the reallocated issuable shares to Legacy Matterport stock options and RSUs holders are recognized as stock-based compensation expense over the remaining derived service period based on the fair value on the date of the reallocation. The estimated fair value of the Earn-out Shares is allocated proportionally to contingent earn-out liability and the grant date fair value of the Earn-out Awards. The estimated fair value of the Earn-out Shares is determined using a Monte Carlo simulation prioritizing the most reliable information available. The assumptions utilized in the calculation are based on the achievement of certain stock price milestones, including the current Company common stock price, expected volatility, risk-free rate, expected term and dividend rate. The contingent earn-out liability is categorized as a Level 3 fair value measurement because the Company estimates projections during the Earn-out Period utilizing unobservable inputs. See Note 6 “Fair Value Measurement” and Note 13 “Contingent Earn-Out Liability” for additional information. If the applicable earn-out triggering event is achieved for a tranche, the Company will account for the Earn-out Shares for such tranche as issued and outstanding common stock. As of December 31, 2021, the earn-out triggering events have not yet been achieved, the Earn-out Shares are contingently issuable and not reflected in the consolidated financial statements. Refer to Note 19. Subsequent Events for additional information. Comprehensive Loss and Foreign Currency Translation The functional currency of Matterport, Inc. and its wholly owned subsidiary in Singapore is the U.S. dollar. Matterport, Inc.’s United Kingdom (“U.K.”) subsidiary uses the British Pound as its functional currency to maintain its books and records. Matterport, Inc., therefore, translates its monetary assets and liabilities for its subsidiaries with a functional currency other than the U.S. dollar by using the applicable exchange rate as of the consolidated balance sheet date, and the consolidated statements of comprehensive loss and consolidated statements of cash flows are translated at average exchange rates during the reporting period. Equity accounts are translated at historical rates. Adjustments resulting from the translation of the consolidated financial statements are recorded as accumulated other comprehensive income or loss. For transactions that occur in a foreign currency other than the functional currency of Matterport, Inc. or its subsidiaries, the Company records the transaction at the applicable rate on the date of recognition. Monetary assets and liabilities are remeasured at each consolidated balance sheet date until settled and changes are reported as transaction gains or losses in other income (expense), net in the consolidated statements of comprehensive loss. Revenue Recognition The Company adopted Accounting Standards Codification (“ASC”) Topic 606, Revenue from Contracts with Customers, on January 1, 2019, using the full retrospective method. The Company determines the amount of revenue to be recognized through the application of the following steps: (1) identify the contract; (2) identify the performance obligations; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations; and (5) recognize revenue when (or as) performance obligations are satisfied. In accordance with ASC 606, the Company recognizes revenue upon transfer of control of goods or services to customers, in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services. Nature of Revenue The Company recognizes revenue from subscription, license, services and sale of products. Subscription add-ons that are available to the user at any time during the subscription term. Subscription fees are invoiced in advance of the service being provided to the customer. Typical payment terms provide that customers pay within 30 days of invoice. The portion of the transaction price allocated to the subscription is recognized ratably over the subscription term, which typically ranges from one month to a year as the Company’s management has concluded that the nature of the Company’s promise to the customer is to provide continuous access to the Matterport platform, which represents a stand-ready obligation provided throughout the subscription period. Annual and monthly subscriptions are renewed automatically at the end of each term. The Company’s contracts with customers typically do not include termination rights for convenience, nor do they include terms with a significant financing component. License right-to-use Services add-on services to existing subscription customers. Capture services and other add-on services are typically invoiced in arrears on a monthly basis as services are provided. The Company recognizes revenue as the services are delivered. Product upon control transferring to the customer. Revenue from sales to end users is recognized upon shipment, net of estimates of returns, as these buyers are entitled to return the camera within 30 days from the date of purchase for a full refund. These rights are accounted for as variable consideration and recognized as a reduction to the revenue recognized. Estimates of returns are made at contract inception and updated each reporting period. Revenue from sales to value-added resellers is recognized upon shipment and resellers do not have rights of return. The Company accounts for shipping and handling activities related to contracts with customers as costs to fulfill the Company’s promise to transfer the associated products, rather than as a separate performance obligation. Accordingly, the Company records amounts billed for shipping and handling costs as a component of net product sales, and classifies such costs as a component of cost of products. Arrangements with Multiple Performance Obligations The Company’s contracts with customers frequently include multiple performance obligations that may consist of subscription, license, services and products. For these contracts, the transaction price is allocated to each performance obligation on a relative SSP. The SSP is the price at which the Company would sell a promised product or service separately to a customer. Judgment is required to determine the SSP for each distinct performance obligation. The Company determines SSP based on the Company’s best estimates and judgments by considering its pricing strategies, historical selling price of these performance obligations in similar transactions, bundling and discounting practices, customer and geographic information, and other factors. More than one SSP may exist for individual goods and services due to the stratification of those goods and services, considering attributes such as the size of the customer and geographic region. The allocation of transaction price among performance obligations in a contract may impact the amount and timing of revenue recognized in the consolidated statements of operations during a given period. Deferred Commission, Net Incremental costs of obtaining a contract with a customer consist primarily of direct sales commissions incurred upon execution of the contract. These costs require capitalization under ASC 340-40, Other Assets and Deferred Costs — Contracts and Customers Advertising Costs Advertising costs are expensed as incurred and included in selling, general, and administrative in the consolidated statements of operations. Advertising expense was $10.5 million and $4.1 million for the years ended December 31, 2021 and 2020, respectively. Research and Development Costs Research and development costs are expensed as incurred and consist primarily of salaries, consulting services, and other direct expenses. Internal-Use Software Development Costs The Company capitalizes certain costs related to developed or modified software solely for its internal use and cloud-based applications used to deliver the Matterport platform. The Company capitalizes costs during the application development stage once the preliminary project stage is complete, management authorizes and commits to funding the project, and it is probable that the project will be completed and that the software will be used to perform the function intended. Costs related to preliminary project activities and post-implementation activities are expensed as incurred. Stock-Based Compensation The Company measures and records the expense related to stock-based payment awards based on the fair value of those awards as determined on the date of grant. The Company recognizes stock-based compensation expense over the requisite service period of the individual grant, generally equal to the vesting period and uses the straight-line method to recognize stock-based compensation. For stock options with performance conditions, the Company records compensation expense when it is deemed probable that the performance condition will be met. The Company accounts for forfeitures as they occur. The Company selected the Black-Scholes option-pricing model as the method for determining the estimated fair value for stock options. The Black-Scholes option-pricing model requires the use of highly subjective and complex assumptions, which determine the fair value of stock-based awards, including the option’s expected term and the price volatility of the underlying stock. The Company calculates the fair value of options granted by using the Black-Scholes option-pricing model with the following assumptions: Expected Volatility Expected Term Risk-Free Interest Rate Dividend Yield Common Stock Valuation In the absence of a public trading market for the Company’s common stock prior to the Merger, on each grant date, the fair value of the Company’s common stock was determined by the Company’s board of directors with inputs from management, taking into account the most recent valuations from an independent third-party valuation specialist. The valuations of the Company’s common stock were determined in accordance with the guidelines outlined in the American Institute of Certified Public Accountants Practice Aid, Valuation of Privately-Held-Company Equity Securities Issued as Compensation. The Company used a hybrid method utilizing a combination of the option-pricing model and the probability weighted expected return method (“PWERM”) to allocate the Company’s equity value among outstanding common stock. After the allocation to the various classes of equity securities, a discount for lack of marketability was applied to arrive at a fair value of common stock. Application of these approaches and methodologies involved the use of estimates, judgments and assumptions that are highly complex and subjective, such as those regarding the Company’s expected future revenue, expenses and future cash flows, discount rates, market multiples, the selection of comparable public companies, and the probability of and timing associated with possible future events. Redeemable Convertible Preferred Stock The Company records redeemable convertible preferred stock at fair value on the dates of issuance, net of issuance costs. The Company classifies its redeemable convertible preferred stock as mezzanine equity outside of stockholders’ deficit when the stock contains contingent redemption features that are not solely within the Company’s control. The Company does not adjust the carrying values of shares of its redeemable convertible preferred stock to the liquidation preferences of such shares until it is reasonably certain that the event that would obligate the Company to pay the liquidation preferences to the holders of the redeemable convertible preferred stock will occur. Common Stock Warrants The Company generally accounts for warrants issued in connection with debt and equity financings as a component of equity unless the warrants include a conditional obligation to issue a variable number of shares or if there is a deemed possibility that the Company may need to settle the warrants in cash, in which case the Company records the fair value of the warrants as a liability. All the Company’s outstanding common stock warrants as of December 31, 2020, were classified as equity. Income Taxes The Company utilizes the asset and liability method for computing its income tax provision. Deferred tax assets and liabilities reflect the expected future consequences of temporary differences between the financial reporting and tax bases of assets and liabilities as well as operating loss, capital loss, and tax credit carryforwards, using enacted tax rates. The Company’s management makes estimates, assumptions, and judgments to determine the Company’s provision for income taxes, deferred tax assets and liabilities, and any valuation allowance recorded against deferred tax assets. The Company assesses the likelihood that its deferred tax assets will be recovered from future taxable income and, to the extent the Company believes recovery is not likely, establishes a valuation allowance. The Company recognizes the tax benefit from an uncertain tax position only if it is more likely than not the tax position will be sustained on examination by the taxing authorities based on the technical merits of the position. The tax benefits recognized from such positions are then measured based on the largest benefit that has a greater than 50% likelihood of being realized upon settlement. Net Loss per Share Attributable to Common Stockholders Basic and diluted net loss per share attributable to common stockholders is presented in conformity with the two-class method required for participating securities. The Company considers all series of redeemable convertible preferred stock to be participating securities. Under the two-class method, the net loss attributable to common stockholders is not allocated to the redeemable convertible preferred stock as the holders of the Company’s redeemable convertible preferred stock do not have a contractual obligation to share in the losses. Under the two-class method, basic net loss per share attributable to common stockholders is computed by dividing the net loss attributable to common stockholders by the weighted-average number of shares of common stock outstanding during the period. Diluted earnings per share attributable to common stockholders adjusts basic earnings per share for the potentially dilutive impact of stock options, warrants, and redeemable convertible preferred stock. As the Company has reported loss for the periods presented, all potentially dilutive securities are antidilutive, and accordingly, basic net loss per share equals diluted net loss per share. Comprehensive Income (loss) Comprehensive income (loss) consists of net income (loss) and other comprehensive income (loss). Other comprehensive income (loss) reflects gains and losses that are recorded as a component of stockholders’ equity (deficit) and are excluded from net income (loss). Other comprehensive income (loss) consists of foreign currency translation adjustments related to consolidation of foreign entities and unrealized gain (loss) on marketable securities classified as available-for-sale. Accounting Pronouncements The Company is provided the option to adopt new or revised accounting guidance as an “emerging growth company” under the Jumpstart Our Business Startups Act of 2012 either (1) within the same periods as those otherwise applicable to public business entities or (2) within the same time periods as nonpublic business entities, including early adoption when permissible. With the exception of standards the Company elected to early adopt, when permissible, the Company has elected to adopt new or revised accounting guidance within the same time period as non-public business entities, as indicated below. As a result, the Company’s financial statements may not be comparable to companies that comply with public company effective dates because of this election. Recently Adopted Accounting Standards In August 2018, the FASB issued ASU No. 2018-15, Intangibles — Goodwill and Other — Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract, which requires customers to apply internal-use software guidance to determine the implementation costs that are able to be capitalized. Under the new standard, capitalized implementation costs are generally amortized over the term of the arrangement, beginning when the module or component of the hosting arrangement is ready for its intended use. All capitalized implementation amounts will be required to be presented in the same line items of the consolidated financial statements as the related hosting fees. The Company adopted ASU No. 2018-15 beginning January 1, 2021 on a prospective method. The adoption did not have a material impact on the Company’s consolidated financial statements. Recently Issued Accounting Standards Not yet Adopted In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). right-to-use asset No. 2018-11, Leases (Topic 842): Targeted Improvements basis, thereby recognizing the cumulative effect of initially applying Topic 842 as an adjustment to opening retained earnings on the adoption date, without revising the balances of comparative periods. The Company plans on electing the package of transitional practical expedients upon adoption which, among other provisions, allows the Company to not reassess under the new standard prior conclusions about lease identification, lease classification and initial direct costs, for any existing leases on the adoption date. In addition, for the facility leases, the Company intends to elect to account for lease and non-lease components as a single lease component. The Company will also make an accounting policy election not to record leases that, at the lease commencement date, have a lease term of 12 months or less on the balance sheet. The Company has substantially completed its evaluation of the effect that the adoption of this guidance will have on its consolidated financial statements. In connection with the adoption of the new guidance, the Company expects to recognize ROU assets of approximately $3.6 million and lease liabilities of approximately $3.8 million on its statement of financial position for operating leases, with limited impact to its results of operations and cash flows. The Company believes that substantially all of its undiscounted future minimum operating lease commitments based on its current lease portfolio that were not recognized on its consolidated balance sheet as of December 31, 2021 and as disclosed in Note 8 to the consolidated financial statements, will be subject to the new standard. In June 2016, the FASB issued ASU No. 2016-13, Financial instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments No. 2016-13 beginning January 1, 2023, and is currently evaluating the impact on the Company’s consolidated financial statements. In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes 2019-12 removes certain exceptions to the general principles in Topic 740 and also clarifies and amends existing guidance to improve consistent application. ASU No. 2019-12 will be effective for public entities for interim and annual periods beginning after December 15, 2020, with early adoption permitted. ASU No. 2019-12 will be effective for all other entities, including emerging growth companies, for annual periods beginning after December 15, 2021, and interim periods beginning after December 15, 2022, with early adoption permitted. The Company expects to adopt ASU No. 2019-12 beginning January 1, 2022, and does not expect the adoption will have a material impact on the Company’s consolidated financial statements. In October 2021, the FASB issues ASU
No. 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. 2021-08 requires an acquirer in a business combination to recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with ASC 606, Revenue from Contract with Customers, as if it had originated the contracts. This ASU is effective for pubic entities for interim and annual periods beginning after December 15, 2022. ASU No. 2021-08 will be effective for all other entities, including emerging growth companies, for annual periods beginning after December 15, 2023, including interim periods within those fiscal years. Early adoption is permitted. The Company expects to adopt ASU 2021-08 beginning January 1, 2023, and is currently assessing the impact the guidance will have on the Company’s consolidated financial statements. |
Reverse Recapitalization |
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Reverse Recapitalization [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reverse Recapitalization | REVERSE RECAPITALIZATION On July 22, 2021, in connection with the Merger, the Company raised gross proceeds of $640.1 million, including the contribution of $345.1 million of cash held in Gores’ trust account from its initial public offering and an aggregate purchase price of $295.0 million in a private placement pursuant to the subscription agreements (“Private Investment in Public Equity” or “PIPE) at $10.00 per share of Gores’ Class A common stock. The Company paid $0.9 million to Gores’ stockholders who redeemed Gores’ Class A common stock immediately prior to the Closing. The Company and Gores incurred $10.0 million and $26.3 million transaction costs, respectively. The total transaction cost was $36.3 million, consisting of underwriting, legal, and other professional fees, of which $35.7 million was recorded to additional paid-in capital as a reduction of proceeds and the remaining $0.6 million was expensed immediately upon the Closing. The aggregate consideration paid to Legacy Matterport stockholders in connection with the Merger (excluding any potential Earn-Out Shares), was 218,875,000 shares of the Company Class A common stock, par value $0.0001 per share. The Per Share Matterport Stock Consideration was equal to approximately 4.1193 (the “Exchange Ratio”). The following transactions were completed concurrently upon the Closing:
The Merger was accounted for as a reverse recapitalization in accordance with U.S. GAAP. Under this method of accounting, Gores was treated as the “acquired” company for financial reporting purposes. This determination was primarily based on holders of Matterport capital stock comprising a relative majority of the voting power of the combined entity upon consummation of the Merger and having the ability to nominate the majority of the governing body of the combined entity, Matterport’s senior management comprising the senior management of the combined entity, and Matterport’s operations comprising the ongoing operations of the combined entity. Accordingly, for accounting purposes, the financial statements of the combined entity upon consummation of the Merger represented a continuation of the financial statements of Matterport with the Merger being treated as the equivalent of Matterport issuing stock for the net assets of Gores, accompanied by a recapitalization. The net assets of Gores were stated at historical cost, with no goodwill or other intangible assets recorded. Operations prior to the Merger were presented as those of Matterport in this prospectus. All periods prior to the Merger have been retroactively adjusted using the Exchange Ratio for the equivalent number of shares outstanding immediately after the Merger to effect the reverse recapitalization. The number of shares of Class A common stock issued immediately following the consummation of the Merger was as follows (shares are in thousands):
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Revenue |
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Revenue | REVENUE Disaggregated Revenue
No country other than the United States accounted for more than 10% of the Company’s revenue for the years ended December 31, 2021 and 2020, respectively. The geographical revenue information is determined by the ship-to address of the products and the billing address of the customers of the services. The following table shows over time versus point-in-time revenue
Contract Balances
During fiscal years 2021 and 2020, the Company recognized revenue of $4.5 million and $2.2 million that was included in the deferred revenue balance at the beginning of the fiscal year, respectively. Contracted but unsatisfied performance obligations were $25.9 million and $12.2 million at the end of fiscal years 2021 and 2020 and consisted of deferred revenue and backlog, respectively. The contracted but unsatisfied or partially unsatisfied performance obligations expected to be recognized over the next at the end of fiscal year 2021 were $21.6 million and the remaining thereafter. |
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Balance Sheet Components | BALANCE SHEET COMPONENTS Allowance for Doubtful Accounts
Inventories
Property and Equipment, Net
Depreciation and amortization expenses were $5.8 million and $4.8 million for the years ended December 31, 2021 and 2020, respectively. Additions to capitalized software and development costs, inclusive of stock-based compensation in the years ended December 31, 2021 and 2020, was $10.8 million and $5.0 million, respectively. These are recorded as part of property and equipment, net on the consolidated balance sheets. Amortization expense was $5.5 million and $4.5 million for years ended December 31, 2021 and 2020, respectively, of which $4.7 million and $3.9 million was recorded to costs of revenue related to subscription and $0.8 million and $0.6 million to selling, general and administrative in the consolidated statements of operations, respectively. Accrued Expenses and Other Current Liabilities
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Fair Value Measurements |
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Fair Value Measurements | FAIR VALUE MEASUREMENTS We categorize assets and liabilities recorded or disclosed at fair value on the consolidated balance sheets based upon the level of judgment associated with inputs used to measure their fair value. The categories are as follows: Level 1 Level 2 Level 3 The Company’s financial assets and liabilities that were measured at fair value on a recurring basis were as follows (in thousands):
Available-for-sale The following table summarizes the amortized cost, unrealized gains and losses, and fair value of our available-for-sale
Unrealized losses related to these securities are due to interest rate fluctuations as opposed to credit quality. In addition, we do not intend to sell and it is not likely that we would be required to sell these securities before recovery of their amortized cost basis, which may be at maturity. As a result, there were no other-than-temporary impairments recorded for these securities at December 31, 2021. In January 2021, Legacy Matterport entered a convertible note agreement with a privately held company as a strategic investment for a principal of $1.0 million. The note bears an interest rate of 5.0% per annum and matures in January 2023. The convertible note receivable is accounted for as available-for-sale The following table summarizes the amortized cost and fair value of our available-for-sale years-to-maturity
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Debt | DEBT The Company’s short-term and long-term debt is secured by substantially all the assets of the Company and subject the Company to certain affirmative and negative covenants. Failure to comply with these covenants could result in an event of default, which may lead to an acceleration of the amounts owed and other remedies. 2015 Term Loan and Line of Credit — The Company borrowed the full $4.0 million term loan on September 23, 2016. The term loan matured on September 30, 2019. The Company was required to make 36 equal installment payments of principal starting October 2016 through September 2019. The term loan bore interest at a floating per annum rate equal to 1.0% above the prime rate published by Wall Street Journal (the “Prime Rate”). Interest was payable monthly. The Company repaid the 2015 Term Loan by September 2019. The agreement also allowed the Company to borrow under financing of eligible accounts, for up to $1.0 million (“2015 Account Financing”). The Company did not borrow any amount under the 2015 Account Financing. On May 22, 2017, the Company amended and restated the 2015 Agreement with the lender (the “2015 Amended and Restated Agreement”) for an additional revolving line of credit up to $2.0 million. The line of credit bore interest at a floating per annum rate equal to 0.5% above the Prime Rate. The line of credit matured on May 22, 2019. On October 26, 2017, the Company amended the 2015 Amended and Restated Agreement with the lender (the “2017 Amendment”) for an additional term loan up to $1.5 million (“2017 Term Loan”). The Company borrowed the full $1.5 million on November 3, 2017. The Company was required to make monthly interest-only payments starting December 2017 and 36 equal installment payments of principal starting October 2018 through September 2021. The term loan bore interest at a floating per annum rate equal to the greater of (a) 1.0% above the Prime Rate; and (b) 5.25%. Interest was payable monthly. On September 16, 2019, the Company amended and restated the 2015 Amended and Restated Agreement and the 2017 Amendment with the lender (the “2017 Second Amended and Restated Agreement”). The agreement provided the Company with a term loan up to $3.0 million (“2019 Term Loan”). The loan must be first used to repay the prior term loan and accrued interest. The Company borrowed the full $3.0 million on September 16, 2019, and $1.0 million of the amount was used to repay in full the outstanding principal and interest under the 2017 Term Loan. The term loan matures on May 1, 2023. The Company was required to make 36 equal installments payments of principal, plus monthly payment of accrued interest starting in June 2020 through May 2023. The term loan bears interest at a floating per annum rate equal to the greater of (a) 1.0% above the Prime Rate and (b) 5.25%. The amendment also provided the Company with a revolving line of credit up to $3.0 million due in September 2020. The Company borrowed $3.0 million under the line of credit on September 27, 2019. The principal amount outstanding under the revolving line of credit bears interest at a floating per annum rate equal to the greater of (a) 0.5% above the Prime Rate and (b) 5.25%. Interest is payable monthly. The restructuring of the term loan was accounted for as an extinguishment. The loss on extinguishment was not material. On April 28, 2020, the Company amended the 2017 Second Amended and Restated Agreement with the lender (the “2020 Amendment”) to increase the limit of the revolving line of credit from $3.0 million to $5.0 million and extend the maturity date of the revolving line to December 15, 2020. On December 22, 2020, the Company amended and extended the line of credit maturity date from December 15, 2020, through December 14, 2021. The interest rates for the term loan and the revolving line of credit were 5.25%. As of December 31, 2020, $3.0 million of principal was outstanding under the 2020 Amendment revolving line of credit. In July 2021, the Company repaid in full the Line of Credit of $3.0 million. For years ended December 31, 2021 and 2020, the Company recorded $0.2 million and $0.3 million of interest expenses under the 2019 Term Loan and the Line of Credit. The Company repaid $2.4 million and $0.6 million of principal outstanding under the 2019 Term Loan during the years ended December 31, 2021 and 2020, respectively. The 2015 Term Loan was fully repaid as of September 30, 2021. 2018 Term Loan — installments commencing on May 1, 2018. The Company was required to make interest-only payments for the first 12 months starting May 2018 and thereafter to make 36 equal installment payments through the maturity date of the loan. The interest rate was fixed at 11.5% per annum. The Company accreted the final payment liability up to the redemption amount as part of the 2018 Agreement term loan balance and recognized interest expense over the term of the loan. The Company incurred certain debt issuance costs in connection with the above loan agreements. Such cost was capitalized against the loan proceeds. The Company also issued warrants to purchase common stock in conjunction with the above loan agreements. The Company determined the fair value of the warrants using the Black-Scholes option-pricing model, which was recorded to additional paid-in capital and an adjustment against the loan proceeds. The debt issuance cost was capitalized and amortized as interest expense over the initial term of the agreement. For the years ended December 31, 2021 and 2020, the Company recorded $0.3 million and $0.8 million of interest expense, respectively, and repaid $5.6 million and $3.2 million of principal outstanding under the 2018 Agreement, respectively. As of December 31, 2020, there was $5.1 million of principal outstanding under the 2018 Agreement. The amount repaid in the year ended December 31, 2021 included a $0.5 million required final payment fee pursuant to the 2018 Agreement and $0.1 million prepayment fee as the Company fully repaid the 2018 Term Loan in July 2021. The Company recorded $0.1 million loss on the extinguishment for the year ended December 31, 2021. 2020 Term Loan — The Company incurred certain debt issuance costs in connection with the above loan agreements. Such cost was capitalized against the loan proceeds. The Company also issued warrants to purchase common stock in conjunction with the above loan agreements. The Company determined the fair value of the warrants using the Black-Scholes option-pricing model, which is recorded to additional paid-in capital and an adjustment against the loan proceeds. The debt issuance costs were amortized as additional interest expense over the term of the agreement. For the years ended December 31, 2021 and 2020, the Company recorded $0.2 million and $0.1 million of interest expense, respectively. The Company started repayment of principal in May 2021 and repaid $2.0 million of principal outstanding in year ended December 31, 2021. The Company fully repaid the 2020 Term Loan and recorded $0.1 million loss on the 2018 Term Loan extinguishment for year ended December 31, 2021. For the year ended December 31, 2020, the Company did not repay any principal outstanding under the 2020 Term Loan. 2020 Note payable monthly and could be prepaid by the Company at any time prior to maturity with no prepayment penalties. The Company repaid in full the PPP Note in May 2020. The Company recorded $0.1 million of interest expense for year ended December 31, 2020. The Company fully repaid all debt as of December 31, 2021. Debt obligations as of December 31, 2020, consisted of the following (in thousands):
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Commitment and Contingencies |
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Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Lease and Purchase Obligation non-cancelable payment terms to purchase goods and services. As of December 31, 2021, future minimum operating lease payments and purchase obligations are as follows (in thousands):
Litigation On July 23, 2021, plaintiff William J. Brown, a former employee and a shareholder of Matterport, Inc. (now known as Matterport Operating, LLC) (“Legacy Matterport”), sued Legacy Matterport, Gores Holdings VI, Inc. (now known as Matterport, Inc.), Maker Merger Sub Inc., Maker Merger Sub II, LLC, and Legacy Matterport directors R.J. Pittman, David Gausebeck, Matt Bell, Peter Hebert, Jason Krikorian, Carlos Kokron and Michael Gustafson (collectively, the “Defendants”) in the Court of Chancery of the State of Delaware. The plaintiff’s complaint claims that Defendants imposed invalid transfer restrictions on his shares of Matterport stock in connection with the merger transactions between Matterport, Inc. and Legacy Matterport (the “Transfer Restrictions”), and that Legacy Matterport’s board of directors violated their fiduciary duties in connection with a purportedly misleading letter of transmittal. The plaintiff is seeking damages and costs, as well as a declaration from the court that he may freely transfer his shares of Class A common stock of Matterport received in connection with the merger transactions. An expedited trial regarding the facial validity of the Transfer Restrictions took place from December 1-2, 2021. On January 11, 2022, the court issued a ruling that the Transfer Restrictions did not apply to the plaintiff. The opinion did not address the validity of the Transfer Restrictions. Matterport filed a notice of appeal of the court’s ruling on February 8, 2022. Separate proceedings regarding plaintiff’s remaining claims are pending. On May 11, 2020, Redfin Corporation (“Redfin”) was served with a complaint by Appliance Computing, Inc. III, d/b/a Surefield (“Surefield”), filed in the United States District Court for the Western District of Texas, Waco Division. In the complaint, Surefield asserted that Redfin’s use of Matterport’s 3D-Walkthrough technology infringes four of Surefield’s patents. Redfin has asserted defenses in the litigation that the asserted patents are invalid and not infringed. We have agreed to indemnify Redfin for the matter pursuant to our existing agreements with Redfin. The parties are vigorously defending this litigation. The case is tentatively set for trial in May 2022. On January 29, 2021, Legacy Matterport received a voluntary request for information from the Division of Enforcement of the SEC relating to certain sales and repurchases of its securities in the secondary market. We believe we have complied fully with the request. We have not received any updates from the SEC as to the scope, duration or ultimate resolution of the investigation. The Company monitors developments in these legal matters that could affect the any estimate if the Company had previously accrued. As of December 31, 2021 and 2020, there were no amounts accrued that the Company believes would be material to its financial position. Indemnification |
Convertible Notes |
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Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Convertible Notes | CONVERTIBLE NOTES The Company issued convertible notes between January 2020 and March 2020 to various investors amounting to $8.5 million (“2020 Notes”). The convertible notes carry an interest rate of 5.0% per annum. The notes mature in January 2022 and cannot be prepaid without written consent. As per the terms of the convertible note agreement, if a qualified financing , defined as a transaction or series of transactions by which the Company sells redeemable convertible preferred stock for aggregate gross proceeds of at least $10.0 million, occurs prior to the payment of the notes, then the notes plus accrued and unpaid interest shall automatically convert into shares of redeemable convertible preferred stock at a price paid by the other purchasers of the redeemable convertible preferred stock sold in the qualified financing discounted by 10.0% if converted prior to January 2021, and on or after January 2021 by 15.0%. If no qualified financing occurs on or prior to the maturity date, then the outstanding principal amount of these convertible notes and all accrued and unpaid interest shall be converted into Series D redeemable convertible preferred stock at a conversion price of $2.0181 per share. During April and June 2020, the Company completed the Series D redeemable convertible preferred stock financing and subsequently issued 21,708,519 shares of Series D redeemable convertible preferred stock at $2.0181 per share for total cash proceeds of $43.8 million. Accordingly, as this meets the qualified financing requirement, all of the convertible notes, including unpaid accrued interest of $8.6 million converted into 4,728,975 shares of Series D redeemable convertible preferred stock at $1.8163 per share in April 2020. The combined aggregate amount of the proceeds from the Series D redeemable convertible preferred stock financing and the converted notes was $52.4 million. The 2020 Notes contain an embedded derivative. The fair value of the derivative was recorded as a liability with an offsetting amount recorded as a debt discount, and the debt discount is recorded against the carrying amount of the related convertible notes outstanding. The amortization of the debt discount was recorded as interest expense. The embedded derivative liability was
re-valued to the current fair value at the end of each reporting period using the income-based approach. Upon conversion, the embedded derivative liability was re-valued at the conversion, and then the related fair value amount was recorded to other (expense) income in the consolidated statements of operations as part of loss on debt extinguishment. The fair value of the embedded derivative upon issuance was $1.0 million and was adjusted to $0.9 million upon conversion in April 2020. Interest expense was accreted on the convertible notes between issuance and conversion. Interest expense on the convertible notes that are included in interest expense are nil and $0.1 million for the years ended December 31, 2021 and 2020, respectively. |
Redeemable Convertible Preferred Stock |
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Temporary Equity Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Redeemable Convertible Preferred Stock | REDEEMABLE CONVERTIBLE PREFERRED STOCK Upon the Closing on July 22, 2021, all issued and outstanding shares of Legacy Matterport redeemable convertible preferred stock was cancelled and converted into the right to receive an aggregate 126,460,926 shares of Matterport Class A common stock. A total of $164.5 million redeemable convertible preferred stock was reclassified into common stock and additional paid-in capital on the consolidated balance sheet. As of December 31, 2020, the Company’s redeemable convertible preferred stock consisted of the following (in thousands, except per share data):
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Stockholders' Equity |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders' Equity | STOCKHOLDERS’ EQUITY On July 22, 2021, the Company issued 72.5 million Matterport Class A common shares to public stockholders of Gores, Initial Stockholders of Class F Stock, and PIPE investors for an aggregate gross proceeds of $640.1 million. The Company paid $0.9 million to Gores’ stockholders who redeemed Gores’ Class A common stock immediately prior to the Closing. The Company and Gores incurred $10.0 million and $26.3 million transaction costs, respectively. The total transaction cost was $36.3 million, consisting of underwriting, legal and other professional fees, of which $35.7 million was recorded to additional paid-in capital as a reduction of proceeds and the remaining $0.6 million was expensed immediately. The Company has retroactively adjusted the shares issued and outstanding prior to July 22, 2021 to give effect to the exchange ratio established in the Merger Agreement to determine the number of shares of common stock into which they were converted. Immediately prior to the Closing, 232.7 million shares were authorized to issue at $0.001 par value. Immediately following the Closing, 670 million share were authorized to issue at $0.0001 par value, including 640 million shares of common stock and 30 million shares of preferred stock. There were 242.0 million shares of common stock outstanding with a par value of $0.0001 upon the Closing. The holder of each share of common stock is entitled to one vote. The Company had reserved shares of common stock for future issuance as of December 31, 2021 as follows (in thousands):
Common Stock Warrants additional paid-in capital. The warrants have a contractual 10-year life from the issuance date. All previously issued common stock warrants were fully vested and exercisable as of December 31, 2020. In February 2021, the holders of all of the Company’s outstanding warrants entered into agreement with the Company to exercise their warrants contingent upon, and effective immediately prior to, the consummation of the First Merger. In the event of an acquisition in which the fair market value of one share is greater than the warrant exercise price as of the date of the acquisition, all outstanding and unexercised warrants shall automatically be deemed to be cashless exercised immediately prior to the consummation of the acquisition. In the event of an acquisition where the fair market value per share is less than the warrant exercise price in effect immediately prior to the acquisition, then warrants will expire immediately prior to the consummation of the acquisition. On July 22, 2021, all the common stock warrants were exercised. The Company issued 1.0 million shares of the Class A common stock to the holders of the common stock warrants upon the Closing. As of December 31, 2020, the unamortized debt discount related to the above warrants were $0.2 million. The company fully amortized the remaining debt discount associated with the above warrants of $0.2 million during the year ended December 31, 2021 upon the full repayment of the debt as discussed Note 7 “Debt”. Accumulated Other Comprehensive Income The following table summarizes the changes in accumulated other comprehensive income (loss) by component, net of tax (in thousands):
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Public and Private Warrants |
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Public and Private Warrants | PUBLIC AND PRIVATE WARRANTS Prior to the Closing, GHVI issued 6,900,000 Public Warrants and 4,450,000 Private Warrants. Each whole warrant entitles the holder to purchase one share of the Company’s common stock at a price of $11.50 per share, subject to adjustments. The Warrants are exercisable from December 15, 2021 and will expire on July 22, 2026, which is five years after the Closing. Redemption of Public Warrants Once the Public Warrants become exercisable, the Company may redeem the outstanding warrants for cash, in whole and not in part, upon not less than 30 days’ prior written notice of redemption (“Redemption Period”) at a price of $0.01 per warrant, if, and only if, the reported last sale price of the common stock equals or exceeds $18.00 per share for any 20 trading days within a 30-trading day period ending business day before we send the notice of redemption to the Public Warrant holders. If the Company calls the Public Warrants for redemption, the Company will have the option to require all holders that wish to exercise the Public Warrants to do so on a “cashless basis”, as described in the warrant agreement. The warrants holders have the right to exercise their outstanding warrants prior to the scheduled redemption date during the Redemption Period at $11.50 per share. Commencing 90 days after the Public Warrants become exercisable, we may redeem the outstanding Public Warrants, in whole and not in part, for a price equal to a number of shares of the Company’s Class A common stock to be determined based on a predefined rate based on the redemption date and the “fair market value” of the Company’s Class A common stock. The “fair market value” of our Class A common stock shall mean the average last reported sale price of our common stock for the 10 trading days ending on the third trading day prior to the date on which the notice of redemption is sent to the holders of Public Warrants upon a minimum of 30 days’ prior written notice of redemption to each warrant holder, if, and only if, the last reported sale price of our Class A common stock equals or exceeds $10.00 per share on the trading day prior to the date on which we send the notice of redemption to the warrant holders. The Private Warrants have terms and provisions that are identical to those of the Warrants sold as part of the Units in the Public Offering, except that the Sponsor has agreed not to transfer, assign or sell any of the Private Warrants (except to certain permitted transferees) until 30 days after the completion of the Merger. Additionally, the Private Warrants are exercisable on a cashless basis and are non-redeemable so long as they are held by the initial purchasers or their permitted transferees. The Private Placement Warrants are non-redeemable for cash so long as they are held by the initial purchasers or their permitted transferees. The Company filed a Registration Statement on Form S-1 on August 19, 2021 related to the issuance of an aggregate of up to 11,350,000 shares of Class A common stock issuable upon the exercise of the Warrants, which was declared effective by the SEC on August 26, 2021. On December 15, 2021, the Company announced to redeem all outstanding Matterport public warrants that remain outstanding at 5:00 p.m. New York City time on January 14, 2022 (the “Redemption Date”) for a redemption price of $0.01 per warrant. The Public Warrants may be exercised by the holders thereof until 5:00 p.m. New York City time on the Redemption Date to purchase fully paid and non-assessable shares of Common Stock underlying such warrants, at the exercise price of $11.50 per share. Any Public Warrants that remain unexercised at 5:00 p.m. New York City time on the Redemption Date will be void and no longer exercisable, and the holders of those Public Warrants will be entitled to receive only the redemption price of $0.01 per warrant. The following table summarizes the Public and Private Warrants activities during the year ended December 31, 2021 (in thousands):
The Public Warrants have been classified as Level 1 as the Public Warrants have adequate trading volume to provide a reliable indication of value since the Closing Date. The Private Warrants have been classified as Level 2 since the Closing Date. Public Warrants and the Private Warrants were valued at $9.14 and $9.16 as of December 31, 2021, respectively. The fair value of the Private Warrants was deemed to be substantially the same as the fair value of the Public Warrants because the Private Warrants have similar terms and are subject to substantially the same redemption features as the Public Warrants. The Warrants are measured at fair value on a recurring basis. The following table presents the changes in the fair value of warrant liabilities (in thousands):
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Contingent Earn-out Awards |
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Reverse Recapitalization [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Contingent Earn-out Awards | CONTINGENT EARN-OUT AWARDSLegacy Matterport Stockholders and certain holders of Legacy Matterport Stock Options and RSUs are entitled to receive a number of Earn-out Shares comprising up to 23,460,000 shares of Class A common stock in the aggregate. There are six distinct tranches, and each tranche has 3,910,000 Earn-out shares. Pursuant to the Merger Agreement, Common Share Price means the share price equal to the volume weighted average price of the Matterport Class A Stock for a period of at least 10 days out of 30 consecutive trading days ending on the trading day immediately prior to the date of determination. If the Common Share Price exceeds $13.00, $15.50, $18.00, $20.50, $23.00, and $25.50, the Earn-out shares are issuable during the period beginning on the 180th day following the Closing and ending on the fifth anniversary of such date (the “Earn-out Period”). The Earn-out shares are subject to early release if a change of control that will result in the holders of the Company common stock receiving a per share price equal to or in excess of the price target as above (collectively, the “Earn-Out Triggering Events”). Any Earn-out Shares issuable to any holder of Matterport Stock Options and Matterport RSUs in respect of such Matterport Stock Options and Matterport RSUs shall be issued to such holder only if such holder continues to provide services to the Post-Combination Company through the date of the occurrence of the corresponding triggering event that causes such Earn-out Shares to become issuable. Any Earn-out Shares that are forfeited pursuant to the preceding sentence shall be reallocated to the other Legacy Matterport Stockholders and Legacy Matterport Stock Options and RSUs holders who remain entitled to receive Earn-out Shares in accordance with their respective Earn-out pro rata shares. The estimated fair value of the total Earn-out Shares was determined based on a Monte Carlo simulation valuation model using a distribution of potential outcomes on monthly basis over the Earn-out Period using the most reliable information available to be issued include events that are not solely indexed to the common stock of the Company. Assumptions used in the valuation are described below:
At the Closing, the estimated fair value of the total Earn-out Shares was $294.8 million. The contingent obligation to issue Earn-out Shares to Matterport legacy Stockholders was accounted for as a liability because the Earn-out Triggering Events that determine the number of Earn-out Shares required. The Earn-out pro rata Shares issuable to holders of Legacy Matterport’s RSUs and holders of Legacy Matterport’s Stock Options for such holders with respect to such holders’ Legacy RSUs and Options are accounted as stock-based compensation expense as they are subject to forfeiture based on the satisfaction of certain employment conditions, see Note 14. Stock Plan for more information. The Company recognized $231.6 million contingent earn-out liability attributable to the Earn-out Shares to Matterport legacy Stockholders upon the Closing on July 22, 2021. The following table sets forth a summary of the changes in the estimated fair value of the earn-out liabilities, which are measured at fair value on a recurring basis using significant unobservable inputs (in thousands):
As of December 31, 2021, the
Earn-out triggering events have not yet been achieved, the Earn-out Shares are contingently issuable and not reflected in the consolidated financial statements. On January 18, 2022, all six Earn-out Triggering Events for issuing up to 23,460,000 Earn-out Shares occurred. Refer to Note 19. Subsequent Events for additional information. |
Stock Plan |
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Share-based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock Plan | STOCK PLAN Amended and Restated 2011 Stock Incentive Plan (“ISOs”), non-qualified stock options (“NSOs”), the issuance of restricted stock awards (“RSAs”), and the sale of stock to its employees, the Board, and consultants. As of December 31, 2020, the Company had granted primarily ISOs. On February 12, 2021, the Company amended and restated the 2011 Stock Plan to allow the Company to grant restricted stock units (“RSUs”) and extended the terms of the plan until February 12, 2022, unless terminated earlier. No shares are available for future grant under the 2011 Plan due to the termination of the 2011 Plan in connection with the Closing. There were 67.8 million shares authorized under the 2011 Stock Plan prior to its termination, and 2.1 million shares were assumed under the 2021 Incentive Award Plan. 2021 Incentive Award Plan In connection with the Closing on July 22, 2021, the Company approved the 2021 Incentive Award Plan (“2021 Plan”), an incentive compensation plan for the benefit of eligible employees, consultants, and directors of the Company and its subsidiaries. The Company concurrently assumed the 2011 Plan and all outstanding awards thereunder, effective as of the Closing, and no further awards shall be granted under the 2011 Plan. The 2021 Plan provides that the initial aggregate number of shares of Class A common stock, available for issuance pursuant to awards thereunder shall be the sum of (a) 10% of the outstanding shares of Class A common stock as of the Closing, which is equivalent to 24.2 million shares of Class A common stock (the “Initial Plan Reserve”), (b) any shares of Class A common stock subject to outstanding equity awards under the amended and restated 2011 Stock Plan which, following the effective date of the 2021 Plan, become available for issuance under the 2021 Plan and (c) an annual increase on the first day of each calendar year beginning on January 1, 2022 and ending on and including January 1, 2031 equal to a number of shares equal to 5% of the aggregate number of shares of Class A common stock outstanding on the final day of the immediately preceding calendar year. The maximum aggregate number of shares of common stock that may be issued under the 2021 Plan upon the exercise of ISOs is 181.5 million shares of Class A common stock. Shares forfeited due to employee termination or expiration are returned to the share pool. Similarly, shares withheld upon exercise to provide for the exercise price and/or taxes due and shares repurchased by the Company are also returned to the pool. 2021 Employee Stock Purchase Plan In connection with the Closing on July 22, 2021, as discussed in Note 3, the Company approved the 2021 Employee Stock Purchase Plan (“2021 ESPP”). The 2021 ESPP provides that the aggregate number of shares of Class A common stock available for issuance pursuant to awards under the 2021 ESPP shall be the sum of (a) 3% of the number of outstanding shares of Class A common stock as of the Closing, which is equivalent to 7.3 million shares of Class A common stock (the “Initial ESPP Reserve”), and (b) an annual increase on the first day of each calendar year beginning on January 1, 2022 and ending on and including January 1, 2031 equal to the lesser of (i) 1% of the aggregate number of shares of Class A common stock outstanding on the last day of the immediately preceding fiscal year and (ii) such smaller number of shares of common stock as may be determined by the Company; provided, however, that the number of shares of common stock that may be issued or transferred pursuant to the rights granted under the 2021 ESPP shall not exceed 15.25% of the outstanding shares of Class A common stock as of the Closing, which is equivalent to 36.9 million shares. Our 2021 ESPP permits eligible employees to acquire shares of our common stock at 85% of the lower of the fair market value of our common stock on the first trading day of each offering period or on the purchase date. If the fair market value of our common stock on the purchase date is lower than the first trading day of the offering period, the current offering period will be cancelled after purchase and a new 24-month offering period will begin. Participants may purchase shares of common stock through payroll deductions of up to 15% of their eligible compensation, subject to purchase limits of 3,000 shares per each purchase period and $25,000 worth of stock for each calendar year. The 2021 ESPP provides for consecutive offering periods that will typically have a duration of approximately 24 months in length and is comprised of purchase periods of approximately six months in length. The offering periods are scheduled to start on the first trading day on or after June 1 and December 1 of each year, except for the first offering period commenced on which began on July 23, 2021 and will end on May 31, 2022. As of December 31, 2021, a total of 7.3 million shares of our common stock are available for sale under our 2021 ESPP. For the year ended December 31, 2021, there were no shares of common stock purchased under the 2021 ESPP. Shares Available for Future Grant Stock Option Activities
As of December 31, 2021, unrecognized stock-based compensation expense related to unvested options was $3.7 million, which is expected to be amortized over a weighted-average vesting period of 1.9 years. On April 1, 2021, the Company amended the performance condition of the 866,597 performance-based stock option (PSO) awards previously granted to a senior executive in March 2019. Originally, the PSO awards were eligible to vest and become exercisable upon the consummation of the earlier of a change in control or an initial public offering (“IPO”), subject to certain share price targets. The vesting of the award also required continued employment up to the consummation of the change in control or IPO. As a result of the modification, the PSO awards shall vest and become exercisable upon the closing of the Merger. Upon the Closing, the Company recognized $8.1 million stock-based compensation expense related to the 866,597 PSOs as they became fully vested and exercisable. RSU and PRSU Activities
Stock-based compensation expense for awards with only service conditions are recognized on a straight-line basis over the requisite service period of the related award. The PRSU awards have both service-based and performance-based vesting conditions. The service-based vesting condition for these awards is typically satisfied over four years with a cliff vesting period of one year and continued vesting quarterly thereafter, subject to continued service. The performance-based vesting condition is satisfied upon the occurrence of a liquidity event, as defined in the Amended and Restated 2011 Stock Plan. The performance based vesting condition was deemed satisfied upon the Closing. The Company recognized $6.1 million stock-based compensation expenses on the Closing for the portion of these RSUs for which the service-based vesting condition had been satisfied and the performance condition of the RSUs was met. As of December 31, 2021, unrecognized compensation costs related to unvested RSUs and PRSUs were $387.9 million and $15.4 million, respectively. The remaining unrecognized compensation costs for RSUs and RSUs are expected to be recognized over a weighted-average period of 3.6 years and 1.8 years, respectively, excluding additional stock-based compensation expense related to any future grants of stock-based awards. Earn-out Award Activities As discussed in Note 13 “Contingent Earn-Out Liability”, the pro rata Earn-out Shares issuable to holders of Legacy Matterport’s RSUs and holders of Legacy Matterport’s Stock Options for such holders with respect to such holders’ Legacy RSUs and Options are expected to be accounted as stock-based compensation expense as they are subject both a market condition and a service condition to the eligible employees. The following table summarizes the Earn-out Award activity under the Earn-out Arrangement pursuant to the Merger Agreement during the year ended December 31, 2021 (in thousands, except for per share data):
As of December 31, 2021, unrecognized compensation cost related to Earn-out Awards was $28.0 million. As of December 31, 2021, the Earn-out Triggering Events have not yet been achieved, the Earn-out Shares are contingently issuable and not reflected in the consolidated financial statements. On January 18, 2022, all six Earn-out Triggering Events for issuing up to 23,460,000 Earn-out Shares occurred. Refer to Note 19, Subsequent Events, for additional information. Employee Stock Options Valuation
Earn-out Awards ValuationEarn-out Awards granted during the year ended December 31, 2021 were as follows:
Employee Stock Purchase Plan
The expected volatility is based on the average volatility of a peer group of representative public companies with sufficient trading history over the expected term. The expected term represents the term from the first day of the offering period to the purchase dates within each offering period. The dividend yield assumption is based on our expectations about our anticipated dividend policy. The risk-free interest rate is based on the implied yield available on U.S. Treasury zero-coupon issues with maturities that approximate the expected term. During the three months ended December 31, 2021, the Company recorded of $1.8 million stock-based compensation expense related to the ESPP. As of December 31, 2021, unrecognized compensation cost related to the ESPP was $8.4 million, which is expected to be recognized over the remaining weighted-average service period of 1.4 years. Stock-based Compensation Earn-out Awards are recognized on a straight-line basis over the derived services period during which the market conditions are expected to be met. Forfeitures are accounted for in the period in which they occur. The amount of stock-based compensation related to stock-based awards to employees in the Company’s consolidated statements of operations for the years ended December 31, 2021 and 2020 were as follows (in thousands):
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Income Taxes |
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Income Tax Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Taxes | INCOME TAXES The components of the net loss before income taxes, determined by jurisdiction, for the years ended December 31, 2021 and 2020 were as follows (in thousands):
The provision for income taxes for the years ended December 31, 2021 and 2020 were as follows (in thousands):
Deferred income taxes reflect the net effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The components of the deferred tax assets for the years ended December 31, 2021 and 2020 consisted of the following (in thousands):
The table below presents the changes in the valuation allowance for deferred tax assets for the years ended December 31, 2021 and 2020 (in thousands):
Net operating loss and tax credit carryforwards as of December 31, 2021 were as follows (in thousands):
The effective tax rate of the Company’s provision for income taxes differed from the federal statutory rate as of December 31, 2021 and 2020, and was as follows:
The Company had net operating loss carryovers (“NOLs”) for federal and state income tax purposes of approximately, $169.4 million and $89.4 million, respectively, as of December 31, 2021. $61.4 million of federal NOLs will expire beginning in 2031, while $108.0 million generated after the Tax Cuts and Jobs Act (the “TCJA”), will have an indefinite life. The state NOLs will expire if unused in years 2031 through 2032. The Company’s utilization of NOLs is subject to an annual limitation due to ownership changes that have occurred previously or that could occur in the future as provided in Section 382 of the Code (“Section 382”), as well as similar state provisions. Section 382 limits the utilization of NOLs when there is a greater than 50% change of ownership as determined under the regulations. Since its formation, the Company has raised capital through the issuance of capital stock and various convertible instruments which, combined with the purchasing shareholders’ subsequent disposition of these shares, has resulted in multiple ownership changes as defined by Section 382, and could result in an ownership change in the future upon subsequent disposition. The Company has not undertaken an analysis of whether the Merger constituted an “ownership change” for purposes of Section 382 and Section 383 of the U.S. Tax Code. Our ability to utilize our net operating loss carryforwards and other tax attributes to offset future taxable income or tax liabilities may be limited as a result of ownership changes, including changes in connection with the Merger or other transactions. The Company’s utilization of NOLs may also be adversely affected by future changes in federal and state tax laws and regulations. As of December 31, 2021, the Company has not undertaken any analyses in respect of Section 382 to determine the annual limitation and if any of the tax attributes are subject to a permanent limitation. In assessing the realization of deferred tax assets, management considers whether it is more likely than not that some portion or all the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon future generation for taxable income during the periods in which temporary differences representing net future deductible amounts become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment. In making such determination, the Company considered all available positive and negative evidence and continued to conclude that as of December 31, 2021, it is not more likely than not that the Company will realize the benefits of its remaining net deferred tax assets and no valuation allowance should be released in the current period. As of December 31, 2021, the Company has a valuation allowance for federal, state, and foreign deferred tax assets that the Company believes will, more likely than not, be unrealizable. The Company evaluated the provisions of ASC 740 related to the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements. ASC 740 prescribes a comprehensive model for how a company should recognize, present, and disclose uncertain positions that the Company has taken or expects to take in its tax return. For those benefits to be recognized, a tax position must be more-likely-than-not to be sustained upon examination by taxing authorities. Differences between tax positions taken or expected to be taken in a tax return and the net benefit recognized and measured pursuant to the interpretation are referred to as “unrecognized benefits.” A liability is recognized (or amount of net operating loss carry forward or amount of tax refundable is reduced) for unrecognized tax benefit because it represents an enterprise’s potential future obligation to the taxing authority for a tax position that was not recognized as a result of applying the provisions of ASC 740. If applicable, interest costs related to the unrecognized tax benefits are required to be calculated and would be classified as income tax expenses in the Consolidated Statement of Operations. Penalties would be recognized as a component of “Selling, general and administrative expenses” in the Consolidated Statement of Operations. A reconciliation of the Company’s unrecognized tax benefits for the years ended December 31, 2021 and 2020, was as follows (in thousands):
The entire amount of the unrecognized tax benefits would not impact the Company’s effective tax rate if recognized. During the years ended December 31, 2021 and 2020, the Company did not recognize accrued interest and penalties related to unrecognized tax benefits. The Company does not anticipate that the amount of existing unrecognized tax benefits will significantly increase or decrease during the next 12 months. The Company files income tax returns in the U.S. federal and state jurisdictions. Due to net operating loss carryforwards, all years since the inception of incorporation remain open for income tax authorities’ examination. The Company is not currently under examination by income tax authorities in federal, state, or other foreign jurisdictions. |
Net Loss Per Share Attributable To Common Stockholders |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Loss Per Share Attributable To Common Stockholders | NET LOSS PER SHARE ATTRIBUTABLE TO COMMON STOCKHOLDERS As a result of the Reverse Recapitalization, the Company has retroactively adjusted the weighted-average number of shares of common stock outstanding prior to the Closing Date by multiplying them by the exchange ratio of approximately 4.1193 used to determine the number of shares of common stock into which they converted. The common stock issued as a result of the redeemable convertible preferred stock conversion on the Closing Date was included in the basic net loss per share calculation on a prospective basis. Net loss per share attributable to common stockholders was computed by dividing loss by the weighted-average number of common shares outstanding for the years ended December 31, 2021 and 2020 (in thousands, except for per share data):
The following potentially dilutive outstanding securities were excluded from the computation of diluted net loss per share attributable to common stockholders, basic and diluted, because their effect would have been anti-dilutive or issuance of such shares is contingent upon the satisfaction of certain conditions which were not satisfied by the end of the period (shares in thousands):
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Related Party Transactions |
12 Months Ended |
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Dec. 31, 2021 | |
Related Party Transactions [Abstract] | |
Related-Party Transactions | RELATED-PARTY TRANSACTIONS From January 2020 to March 2020, Matterport issued convertible promissory notes in an aggregate principal amount of $8.5 million (“2020 Notes”) to investors, including (i) $400,000 aggregate principal amount to DCM VI, L.P., an affiliate of Jason Krikorian, a member of the Matterport board of directors, (ii) $2.0 million aggregate principal amount to
Lux Co-Invest Opportunities, L.P., an affiliate of Peter Hébert, a member of the Matterport board of directors, and (iii) $1,000,000 aggregate principal amount to QUALCOMM Ventures LLC, an affiliate of Carlos Kokron, a member of the Matterport board of directors. The 2020 Notes accrued interest at a rate of 5% per annum. Refer to Note 9. Convertible Notes. |
Employee Benefit Plans |
12 Months Ended |
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Dec. 31, 2021 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | EMPLOYEE BENEFITS PLANS The Company has a defined contribution retirement and savings plan intended to qualify under Section 401 of the Internal Revenue Code (the “401(k) Plan”) covering substantially all US employees. The 401(k) Plan allows each participant to contribute up to an amount not to exceed an annual statutory maximum. The Company contracted with a third-party provider to act as a custodian and trustee and to process and maintain the records of participant data. Substantially all of the expenses incurred for administering the 401(k) Plan are paid by the Company. The Company discontinued providing contributions in the 401(k) Plan match since May 1, 2020. For the year ended December 31, 2020, the Company made $0.2 million of discretionary matching contribution. The Company contributes to a defined contribution pension plan for eligible employees in the U.K. Pension plan benefits are based primarily on participants’ compensation and years of service credited as specified under the terms of the plan. The Company made $0.3 million and $0.2 million matching contributions to the U.K. pension plan for the year ended December 31, 2021 and 2020. |
Subsequent Events |
12 Months Ended |
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Dec. 31, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENTS In December 2021, we entered into a definitive agreement to acquire Enview, Inc. (“Enview”), a privately-held company engaged in the development of artificial intelligence algorithms to identify natural and man-made features in geospatial data using various techniques, for total consideration of approximately 1.6 million shares of the Company’s Class A common stock, par value $0.0001 per share (“Common Stock”), and $35.5 million in cash. All shares of Common Stock issued in the transaction are subject to a lock-up period expiring 180 days following the closing of the transaction. The acquisition closed on January 5, 2022. The Company is still in the process of preparing the initial accounting for the transaction and expects to establish a preliminary purchase price allocation with respect to this transaction by the end of the first quarter of fiscal year 2022. On January 14, 2022, the Public Warrants ceased trading on the Nasdaq Global Market. As of the Redemption Date of January 14, 2022, 9.1 million shares of Common Stock have been issued upon the exercise of Public Warrants and Private Warrants by the holders thereof at an exercise price of $11.50 per share, resulting in aggregate proceeds to Matterport of $104.5 million, including 7.1 million shares issued upon the exercise of Public Warrants and Private Warrants by the holders with a total proceeds of $76.6 million received during the year ended December 31, 2021. The remaining 0.6 million unexercised and outstanding Public Warrants as of 5:00 p.m. January 14, 2022 New York City time were redeemed at a price of $0.01 per Public Warrant and, as a result, no Public Warrants remained outstanding thereafter. Warrants to purchase Common Stock that were issued under the Warrant Agreement in a private placement simultaneously with the Company’s initial public offering and that are still held by the initial holders thereof or their permitted transferees were not subject to this redemption and remain outstanding. A total of 2.8 million private warrants were exercised as of the Redemption Date, resulting in 1.7 million private warrants unexercised and outstanding . On January 18, 2022, all six
Earn-out Triggering Events for issuing up to 23.5 million Earn-out Shares occurred. A total of 21.5 million Earn-out Shares were issued on February 1, 2022 after withholding some of these Earn-out Shares to cover tax withholding obligations. We will recognize the unamortized stock-based compensation related to the Earn-out Shares amounted to $28.0 million as of December 31, 2021 in the quarter ended March 31, 2022, as both Triggering event condition satisfied and the service condition was met. No further Earn-out Shares remained contingently issuable thereafter. |
Summary of Significant Accounting Policies (Policies) |
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Dec. 31, 2021 | ||||||||||||||||
Accounting Policies [Abstract] | ||||||||||||||||
Basis of Presentation | Basis of PresentationThe accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). | |||||||||||||||
Reclassification | Reclassification Certain prior-period amounts have been reclassified in the accompanying Consolidated Financial Statements and Notes thereto in order to conform to the current period presentation. |
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Principles of Consolidation | Principles of Consolidation The accompanying consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. |
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Use of Estimates | Use of Estimates The preparation of the accompanying consolidated financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions that affect the reported amounts and disclosures in the consolidated financial statements and accompanying notes. Significant estimates include assumptions related to the fair value of common stock and other assumptions used to measure stock-based compensation, valuation of deferred tax assets, the estimate of net realizable value of inventory, allowance for doubtful accounts, the fair value of common stock warrants, public and private warrants liability, and earn-out shares, and the determination of stand-alone selling price (“SSP”) of various performance obligations. As of December 31, 2021, future impact of the COVID-19 pandemic on the Company’s operational and financial performance will depend on certain developments, including the duration and spread of the pandemic, impact on the Company’s subscribers and their spending habits, impact on the Company’s marketing efforts, and effect on the Company’s suppliers, all of which are uncertain and cannot be predicted with certainty. As a result, many of the Company’s estimates and assumptions required increased judgment and these estimates may change materially in future periods. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and various other factors, including the current economic environment and the impact of
COVID-19, which management believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. The Company adjusts such estimates and assumptions when dictated by facts and circumstances. Changes in those estimates resulting from continuing changes in the economic environment will be reflected in the consolidated financial statements in future periods. Actual results may differ materially from those estimates. |
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Segment Information | Segment information The Company has a single operating segment and reportable segment. The Company’s chief operating decision-maker is its Chief Executive Officer, who reviews financial information presented on a consolidated basis for purposes of making operating decisions, assessing financial performance, and allocating resources. Refer to Note 4, for information regarding the Company’s revenue by geography. Substantially all of the Company’s long-lived assets are located in the United States. |
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Concentration of Credit Risk and Other Risks and Uncertainties | Concentration of Credit Risk and Other Risks and Uncertainties Financial instruments that subject the Company to concentrations of credit risk consist primarily of cash and cash equivalents, investments, and accounts receivable. The Company maintains its cash balances in accounts held by major banks and financial institutions located in the United States. Such bank deposits from time to time may be exposed to credit risk in excess of the Federal Deposit Insurance Corporation insurance limit, and the Company considers such risk to be minimal. We invest only in high-quality credit instruments and maintain our cash and cash equivalents and available-for-sale The Company’s accounts receivable is derived from customers located both inside and outside the United States. The Company mitigates its credit risks by performing ongoing credit evaluations of the financial condition of its customers and requires advance payment from customers in certain circumstances. The Company generally does not require collateral from its customers. No customer accounted for more than 10% of the Company’s total accounts receivable at December 31, 2021 and 2020. No customer accounted for more than 10% of the Company’s total revenue for the years ended December 31, 2021 and 2020. |
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Cash and Cash Equivalents and Restricted Cash | Cash, Cash Equivalents, and Restricted Cash The Company considers all highly liquid investments purchased with an original maturity of 90 days or less to be cash equivalents. Cash and cash equivalents include cash on hand and amounts on deposit with financial institutions. Amounts receivable from credit card processors of approximately $0.7 million and $0.8 million as of December 31, 2021 and 2020, respectively, are also considered cash equivalents because they are both short-term and highly-liquid in nature and are typically converted to cash approximately to business days from the date of the underlying transaction. The Company had restricted cash of $0.5 million and $0.4 million as of December 31, 2021 and 2020. The restricted cash is cash deposits restricted under the 2020 Term Loan. Refer to Note 7. Debt for additional information. |
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Accounts Receivable, Net | Accounts Receivable, Net Accounts receivable consists of current trade receivables due from customers recorded at the invoiced amount, net of allowances for doubtful accounts. The Company’s accounts receivable represent amounts due from customers arising from revenue and are stated at the amount the Company expects to collect from outstanding balances. On a periodic basis, the Company evaluates accounts receivable estimated to be uncollectible and provides allowances, as necessary, for doubtful accounts. As of December 31, 2021 and 2020, the allowance for doubtful accounts was $0.3 million and $0.8 million, respectively. |
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Fair Value Measurement | Fair Value Measurement The Company accounts for certain of its financial assets and liabilities at fair value. The Company uses a three-level hierarchy, which prioritizes, within the measurement of fair value, the use of market-based information over entity-specific information for fair value measurements based on the nature of inputs used in the valuation of an asset or liability as of the measurement date. Fair value focuses on an exit price and is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities which are required to be recorded at fair value, the Company considers the principal or most advantageous market in which the Company would transact and the market-based risk measurements or assumptions that market participants would use in pricing the asset or liability, such as risks inherent in valuation techniques, transfer restrictions and credit risks. The inputs or methodology used for valuing financial instruments are not necessarily an indication of the risk associated with investing in those financial instruments. Accounts receivable and accounts payable are carried at cost, which approximates fair value due to the short maturity of these instruments. Short-term and long-term debt is carried at amortized cost, which approximates its fair value based on borrowing rates as of December 31, 2020 available to the Company for loans with similar terms. The fair value of the Company’s debt is determined based on Level 2 inputs using primarily observable markets. |
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Inventories | Inventories Inventories consist primarily of finished goods, assemblies, and raw materials. Assemblies are generally purchased from contract manufacturers. Inventories are valued at the lower of cost or net realizable value. Costs are determined using standard cost, which approximates actual cost on a first-in, first-out basis. The Company assesses the valuation of inventory and periodically adjusts the value for estimated excess and obsolete inventory based upon estimates of future demand and market conditions, as well as damaged or otherwise impaired goods. The Company recorded a provision for excess and obsolete inventory of nil and $0.1 million for the years ended December 31, 2021 and 2020, respectively. |
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Property and Equipment, Net | Property and Equipment, Net Property and equipment are stated at cost, less accumulated depreciation and are depreciated on a straight-line basis over their estimated useful lives as follows:
Upon retirement or sale, the cost and related accumulated depreciation are removed from the consolidated balance sheets and the resulting gain or loss is reflected in general and administrative expenses in the consolidated statements of operations. Maintenance and repairs are charged to operations as incurred. |
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Long-Lived Assets, Net | Long-Lived Assets, Net The Company evaluates the recoverability of its property and equipment and finite-lived intangible assets for possible impairment whenever events or circumstances indicate that the carrying amount of such assets may not be recoverable. The evaluation is performed at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. Recoverability of these assets is measured by a comparison of the carrying amounts to the future undiscounted cash flows the assets are expected to generate. If such review determines that the carrying amount of specific property and equipment is not recoverable, the carrying amount of such assets is reduced to its fair value. There was no impairment of long-lived assets for the years ended December 31, 2021 and 2020. Acquired property and equipment and finite-lived intangible assets are amortized over their useful lives. The Company evaluates the estimated remaining useful life of these assets when events or changes in circumstances warrant a revision to the remaining period of amortization. If the Company revises the estimated useful life assumption for any asset, the remaining unamortized balance is amortized or depreciated over the revised estimated useful life on a prospective basis. |
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Investments | Investments The Company classifies its investments in marketable and non-marketable securities as available-for-sale Unrealized gains and losses on available-for-sale amortized cost basis. When we determine that the decline in fair value of an investment is below our accounting basis and the decline is other-than-temporary, we reduce the carrying value of the security we hold and record a loss for the amount of such decline. The Company also has certain private equity investments without readily determinable fair values due to the absence of quoted market prices, the inherent lack of liquidity, and the fact that inputs used to measure fair value are unobservable and require management’s judgment. The Company elected the measurement alternative to record these investments at cost and to adjust for impairments and observable price changes resulting from transactions with the same issuer within the statement of operations. Refer to Note 6. Fair Value Measurements for additional information. |
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Transaction costs and Business Combination | Transaction costs Transaction costs consist of direct legal, accounting and other fees relating to the consummation of the Merger. These costs were initially capitalized as incurred in other assets on the consolidated balance sheets. Upon the Closing, transaction costs related to the issuance of shares were recognized in stockholders’ equity (deficit) while costs associated with the public and private warrants liabilities were expensed in the consolidated statements of operations. The Company and Gores incurred $10.0 million and $26.3 million transaction costs, respectively. The total transaction cost was $36.3 million, consisting of underwriting, legal, and other professional fees, of which $35.7 million was recorded to additional paid-in capital as a reduction of proceeds and the remaining $0.6 million was expensed immediately upon the Closing. As of December 31, 2020, $0.1 million of deferred transaction costs were included within other assets in the consolidated balance sheet. Business Combination Business acquisitions are accounted for using the acquisition method under Accounting Standards Codifications (“ASC”) 805, Business Combinations
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Warrants Liability | Warrants Liability The Company assumed publicly-traded warrants (“Public Warrants”) and private warrants (“Private Warrants”) upon the Closing. The Company accounts for warrants for shares of the Company’s Class A common stock that are not indexed to its own stock as liabilities at fair value on the balance sheet. The warrants are subject to remeasurement at each balance sheet date and any change in fair value is recognized in the Company’s statement of operations. For issued or modified warrants that meet all of the criteria for equity classification, the warrants are required to be recorded as a component of additional
paid-in capital at the time of issuance. For issued or modified warrants that do not meet all the criteria for equity classification, the warrants are required to be recorded as a liability at their initial fair value on the date of issuance, and each balance sheet date thereafter. Changes in the estimated fair value of the warrants are recognized as a non-cash gain or loss on the statements of operations. |
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Earn-out Arrangement | Earn-out Arrangement In connection with the reverse recapitalization and pursuant to the Merger Agreement, eligible Legacy Matterport stockholders and Legacy Matterport stock option and restricted share unit (“RSU”) holders are entitled to receive an aggregate of 23,460,000 shares of the Company’s Class A common stock (“Earn-out Shares”) upon the Company achieving certain Earn-out Triggering Events during the Earn-out Period (as described in Note 13). In accordance with ASC 815-40, Earn-out Shares issuable to Legacy Matterport common stockholders in respect of such common stock are not solely indexed to the common stock and therefore are accounted for as contingent earn-out liability on the consolidated balance sheet at the reverse recapitalization date and subsequently remeasured at each reporting date with changes in fair value recorded a component of other income (expense), net in the consolidated statements of operations. Earn-out Shares issuable to certain holders of Legacy Matterport stock options and RSUs in respect of such stock options and RSUs (the “Earn-out Awards”) are subject to forfeiture and are accounted for in accordance with ASC 718. The Company measures and recognizes stock-compensation expense based on the fair value of the Earn-out Awards over the derived service period for each tranche. Forfeitures are accounted for as they occur. Upon the forfeiture of Earn-out Shares issuable to any eligible holder of Legacy Matterport stock options and RSUs, the forfeited Earn-out awards are subject to reallocation and grant on a pro rata basis to the remaining eligible Legacy Matterport stockholders and stock options and RSUs holders. The reallocated issuable shares to Legacy Matterport common stockholders are recognized as contingent earn-out liability, and the reallocated issuable shares to Legacy Matterport stock options and RSUs holders are recognized as stock-based compensation expense over the remaining derived service period based on the fair value on the date of the reallocation. The estimated fair value of the Earn-out Shares is allocated proportionally to contingent earn-out liability and the grant date fair value of the Earn-out Awards. The estimated fair value of the Earn-out Shares is determined using a Monte Carlo simulation prioritizing the most reliable information available. The assumptions utilized in the calculation are based on the achievement of certain stock price milestones, including the current Company common stock price, expected volatility, risk-free rate, expected term and dividend rate. The contingent earn-out liability is categorized as a Level 3 fair value measurement because the Company estimates projections during the Earn-out Period utilizing unobservable inputs. See Note 6 “Fair Value Measurement” and Note 13 “Contingent Earn-Out Liability” for additional information. If the applicable
earn-out triggering event is achieved for a tranche, the Company will account for the Earn-out Shares for such tranche as issued and outstanding common stock. As of December 31, 2021, the earn-out triggering events have not yet been achieved, the Earn-out Shares are contingently issuable and not reflected in the consolidated financial statements. Refer to Note 19. Subsequent Events for additional information. |
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Comprehensive Loss and Foreign Currency Translation | Comprehensive Loss and Foreign Currency Translation The functional currency of Matterport, Inc. and its wholly owned subsidiary in Singapore is the U.S. dollar. Matterport, Inc.’s United Kingdom (“U.K.”) subsidiary uses the British Pound as its functional currency to maintain its books and records. Matterport, Inc., therefore, translates its monetary assets and liabilities for its subsidiaries with a functional currency other than the U.S. dollar by using the applicable exchange rate as of the consolidated balance sheet date, and the consolidated statements of comprehensive loss and consolidated statements of cash flows are translated at average exchange rates during the reporting period. Equity accounts are translated at historical rates. Adjustments resulting from the translation of the consolidated financial statements are recorded as accumulated other comprehensive income or loss. For transactions that occur in a foreign currency other than the functional currency of Matterport, Inc. or its subsidiaries, the Company records the transaction at the applicable rate on the date of recognition. Monetary assets and liabilities are remeasured at each consolidated balance sheet date until settled and changes are reported as transaction gains or losses in other income (expense), net in the consolidated statements of comprehensive loss. |
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Revenue Recognition | Revenue Recognition The Company adopted Accounting Standards Codification (“ASC”) Topic 606, Revenue from Contracts with Customers, on January 1, 2019, using the full retrospective method. The Company determines the amount of revenue to be recognized through the application of the following steps: (1) identify the contract; (2) identify the performance obligations; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations; and (5) recognize revenue when (or as) performance obligations are satisfied. In accordance with ASC 606, the Company recognizes revenue upon transfer of control of goods or services to customers, in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services. Nature of Revenue The Company recognizes revenue from subscription, license, services and sale of products. Subscription add-ons that are available to the user at any time during the subscription term. Subscription fees are invoiced in advance of the service being provided to the customer. Typical payment terms provide that customers pay within 30 days of invoice. The portion of the transaction price allocated to the subscription is recognized ratably over the subscription term, which typically ranges from one month to a year as the Company’s management has concluded that the nature of the Company’s promise to the customer is to provide continuous access to the Matterport platform, which represents a stand-ready obligation provided throughout the subscription period. Annual and monthly subscriptions are renewed automatically at the end of each term. The Company’s contracts with customers typically do not include termination rights for convenience, nor do they include terms with a significant financing component. License right-to-use Services add-on services to existing subscription customers. Capture services and other add-on services are typically invoiced in arrears on a monthly basis as services are provided. The Company recognizes revenue as the services are delivered. Product upon control transferring to the customer. Revenue from sales to end users is recognized upon shipment, net of estimates of returns, as these buyers are entitled to return the camera within 30 days from the date of purchase for a full refund. These rights are accounted for as variable consideration and recognized as a reduction to the revenue recognized. Estimates of returns are made at contract inception and updated each reporting period. Revenue from sales to value-added resellers is recognized upon shipment and resellers do not have rights of return. The Company accounts for shipping and handling activities related to contracts with customers as costs to fulfill the Company’s promise to transfer the associated products, rather than as a separate performance obligation. Accordingly, the Company records amounts billed for shipping and handling costs as a component of net product sales, and classifies such costs as a component of cost of products. Arrangements with Multiple Performance Obligations The Company’s contracts with customers frequently include multiple performance obligations that may consist of subscription, license, services and products. For these contracts, the transaction price is allocated to each performance obligation on a relative SSP. The SSP is the price at which the Company would sell a promised product or service separately to a customer. Judgment is required to determine the SSP for each distinct performance obligation. The Company determines SSP based on the Company’s best estimates and judgments by considering its pricing strategies, historical selling price of these performance obligations in similar transactions, bundling and discounting practices, customer and geographic information, and other factors. More than one SSP may exist for individual goods and services due to the stratification of those goods and services, considering attributes such as the size of the customer and geographic region. The allocation of transaction price among performance obligations in a contract may impact the amount and timing of revenue recognized in the consolidated statements of operations during a given period. |
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Deferred Commission, Net | Deferred Commission, Net Incremental costs of obtaining a contract with a customer consist primarily of direct sales commissions incurred upon execution of the contract. These costs require capitalization under ASC
340-40, Other Assets and Deferred Costs — Contracts and Customers |
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Advertising Costs | Advertising Costs Advertising costs are expensed as incurred and included in selling, general, and administrative in the consolidated statements of operations. Advertising expense was $10.5 million and $4.1 million for the years ended December 31, 2021 and 2020, respectively. |
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Research and Development Costs | Research and Development Costs Research and development costs are expensed as incurred and consist primarily of salaries, consulting services, and other direct expenses. |
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Internal-Use Software Development Costs | Internal-Use Software Development Costs The Company capitalizes certain costs related to developed or modified software solely for its internal use and cloud-based applications used to deliver the Matterport platform. The Company capitalizes costs during the application development stage once the preliminary project stage is complete, management authorizes and commits to funding the project, and it is probable that the project will be completed and that the software will be used to perform the function intended. Costs related to preliminary project activities and post-implementation activities are expensed as incurred. |
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Stock-Based Compensation | Stock-Based Compensation The Company measures and records the expense related to stock-based payment awards based on the fair value of those awards as determined on the date of grant. The Company recognizes stock-based compensation expense over the requisite service period of the individual grant, generally equal to the vesting period and uses the straight-line method to recognize stock-based compensation. For stock options with performance conditions, the Company records compensation expense when it is deemed probable that the performance condition will be met. The Company accounts for forfeitures as they occur. The Company selected the Black-Scholes option-pricing model as the method for determining the estimated fair value for stock options. The Black-Scholes option-pricing model requires the use of highly subjective and complex assumptions, which determine the fair value of stock-based awards, including the option’s expected term and the price volatility of the underlying stock. The Company calculates the fair value of options granted by using the Black-Scholes option-pricing model with the following assumptions: Expected Volatility Expected Term Risk-Free Interest Rate Dividend Yield |
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Common Stock Valuation | Common Stock Valuation In the absence of a public trading market for the Company’s common stock prior to the Merger, on each grant date, the fair value of the Company’s common stock was determined by the Company’s board of directors with inputs from management, taking into account the most recent valuations from an independent third-party valuation specialist. The valuations of the Company’s common stock were determined in accordance with the guidelines outlined in the American Institute of Certified Public Accountants Practice Aid, Valuation of Privately-Held-Company Equity Securities Issued as Compensation. The Company used a hybrid method utilizing a combination of the option-pricing model and the probability weighted expected return method (“PWERM”) to allocate the Company’s equity value among outstanding common stock. After the allocation to the various classes of equity securities, a discount for lack of marketability was applied to arrive at a fair value of common stock. Application of these approaches and methodologies involved the use of estimates, judgments and assumptions that are highly complex and subjective, such as those regarding the Company’s expected future revenue, expenses and future cash flows, discount rates, market multiples, the selection of comparable public companies, and the probability of and timing associated with possible future events. |
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Redeemable Convertible Preferred Stock | Redeemable Convertible Preferred Stock The Company records redeemable convertible preferred stock at fair value on the dates of issuance, net of issuance costs. The Company classifies its redeemable convertible preferred stock as mezzanine equity outside of stockholders’ deficit when the stock contains contingent redemption features that are not solely within the Company’s control. The Company does not adjust the carrying values of shares of its redeemable convertible preferred stock to the liquidation preferences of such shares until it is reasonably certain that the event that would obligate the Company to pay the liquidation preferences to the holders of the redeemable convertible preferred stock will occur. |
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Common Stock Warrants | Common Stock Warrants The Company generally accounts for warrants issued in connection with debt and equity financings as a component of equity unless the warrants include a conditional obligation to issue a variable number of shares or if there is a deemed possibility that the Company may need to settle the warrants in cash, in which case the Company records the fair value of the warrants as a liability. All the Company’s outstanding common stock warrants as of December 31, 2020, were classified as equity. |
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Income Taxes | Income Taxes The Company utilizes the asset and liability method for computing its income tax provision. Deferred tax assets and liabilities reflect the expected future consequences of temporary differences between the financial reporting and tax bases of assets and liabilities as well as operating loss, capital loss, and tax credit carryforwards, using enacted tax rates. The Company’s management makes estimates, assumptions, and judgments to determine the Company’s provision for income taxes, deferred tax assets and liabilities, and any valuation allowance recorded against deferred tax assets. The Company assesses the likelihood that its deferred tax assets will be recovered from future taxable income and, to the extent the Company believes recovery is not likely, establishes a valuation allowance. The Company recognizes the tax benefit from an uncertain tax position only if it is more likely than not the tax position will be sustained on examination by the taxing authorities based on the technical merits of the position. The tax benefits recognized from such positions are then measured based on the largest benefit that has a greater than 50% likelihood of being realized upon settlement. |
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Net Loss per Share Attributable to Common Stockholders | Net Loss per Share Attributable to Common Stockholders Basic and diluted net loss per share attributable to common stockholders is presented in conformity with the two-class method required for participating securities. The Company considers all series of redeemable convertible preferred stock to be participating securities. Under the two-class method, the net loss attributable to common stockholders is not allocated to the redeemable convertible preferred stock as the holders of the Company’s redeemable convertible preferred stock do not have a contractual obligation to share in the losses. Under the two-class method, basic net loss per share attributable to common stockholders is computed by dividing the net loss attributable to common stockholders by the weighted-average number of shares of common stock outstanding during the period. Diluted earnings per share attributable to common stockholders adjusts basic earnings per share for the potentially dilutive impact of stock options, warrants, and redeemable convertible preferred stock. As the Company has reported loss for the periods presented, all potentially dilutive securities are antidilutive, and accordingly, basic net loss per share equals diluted net loss per share. |
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Comprehensive Income (loss) | Comprehensive Income (loss) Comprehensive income (loss) consists of net income (loss) and other comprehensive income (loss). Other comprehensive income (loss) reflects gains and losses that are recorded as a component of stockholders’ equity (deficit) and are excluded from net income (loss). Other comprehensive income (loss) consists of foreign currency translation adjustments related to consolidation of foreign entities and unrealized gain (loss) on marketable securities classified as
available-for-sale. |
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Accounting Pronouncements | Accounting Pronouncements The Company is provided the option to adopt new or revised accounting guidance as an “emerging growth company” under the Jumpstart Our Business Startups Act of 2012 either (1) within the same periods as those otherwise applicable to public business entities or (2) within the same time periods as nonpublic business entities, including early adoption when permissible. With the exception of standards the Company elected to early adopt, when permissible, the Company has elected to adopt new or revised accounting guidance within the same time period as non-public business entities, as indicated below. As a result, the Company’s financial statements may not be comparable to companies that comply with public company effective dates because of this election. Recently Adopted Accounting Standards In August 2018, the FASB issued ASU No. 2018-15, Intangibles — Goodwill and Other — Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract, which requires customers to apply internal-use software guidance to determine the implementation costs that are able to be capitalized. Under the new standard, capitalized implementation costs are generally amortized over the term of the arrangement, beginning when the module or component of the hosting arrangement is ready for its intended use. All capitalized implementation amounts will be required to be presented in the same line items of the consolidated financial statements as the related hosting fees. The Company adopted ASU No. 2018-15 beginning January 1, 2021 on a prospective method. The adoption did not have a material impact on the Company’s consolidated financial statements. Recently Issued Accounting Standards Not yet Adopted In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). right-to-use asset No. 2018-11, Leases (Topic 842): Targeted Improvements basis, thereby recognizing the cumulative effect of initially applying Topic 842 as an adjustment to opening retained earnings on the adoption date, without revising the balances of comparative periods. The Company plans on electing the package of transitional practical expedients upon adoption which, among other provisions, allows the Company to not reassess under the new standard prior conclusions about lease identification, lease classification and initial direct costs, for any existing leases on the adoption date. In addition, for the facility leases, the Company intends to elect to account for lease and non-lease components as a single lease component. The Company will also make an accounting policy election not to record leases that, at the lease commencement date, have a lease term of 12 months or less on the balance sheet. The Company has substantially completed its evaluation of the effect that the adoption of this guidance will have on its consolidated financial statements. In connection with the adoption of the new guidance, the Company expects to recognize ROU assets of approximately $3.6 million and lease liabilities of approximately $3.8 million on its statement of financial position for operating leases, with limited impact to its results of operations and cash flows. The Company believes that substantially all of its undiscounted future minimum operating lease commitments based on its current lease portfolio that were not recognized on its consolidated balance sheet as of December 31, 2021 and as disclosed in Note 8 to the consolidated financial statements, will be subject to the new standard. In June 2016, the FASB issued ASU No. 2016-13, Financial instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments No. 2016-13 beginning January 1, 2023, and is currently evaluating the impact on the Company’s consolidated financial statements. In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes 2019-12 removes certain exceptions to the general principles in Topic 740 and also clarifies and amends existing guidance to improve consistent application. ASU No. 2019-12 will be effective for public entities for interim and annual periods beginning after December 15, 2020, with early adoption permitted. ASU No. 2019-12 will be effective for all other entities, including emerging growth companies, for annual periods beginning after December 15, 2021, and interim periods beginning after December 15, 2022, with early adoption permitted. The Company expects to adopt ASU No. 2019-12 beginning January 1, 2022, and does not expect the adoption will have a material impact on the Company’s consolidated financial statements. In October 2021, the FASB issues ASU
No. 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. 2021-08 requires an acquirer in a business combination to recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with ASC 606, Revenue from Contract with Customers, as if it had originated the contracts. This ASU is effective for pubic entities for interim and annual periods beginning after December 15, 2022. ASU No. 2021-08 will be effective for all other entities, including emerging growth companies, for annual periods beginning after December 15, 2023, including interim periods within those fiscal years. Early adoption is permitted. The Company expects to adopt ASU 2021-08 beginning January 1, 2023, and is currently assessing the impact the guidance will have on the Company’s consolidated financial statements. |
Summary of Significant Accounting Policies (Tables) |
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Accounting Policies [Abstract] | ||||||||||||||||
Schedule of Property, Plant and Equipment, Net | Property and equipment are stated at cost, less accumulated depreciation and are depreciated on a straight-line basis over their estimated useful lives as follows:
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Reverse Recapitalization (Tables) |
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Reverse Recapitalization [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Common Stock Issued Immediately Following Consummation of the Merger | The number of shares of Class A common stock issued immediately following the consummation of the Merger was as follows (shares are in thousands):
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Revenue (Tables) |
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Revenue from Contract with Customer [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disaggregation of Revenue | The following table shows the revenue by geography for the years ended December 31, 2021 and 2020, respectively (in thousands):
The following table shows over time versus point-in-time revenue
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Contract Balances | The contract balances as of December 31, 2021 and 2020 were as follows (in thousands):
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Balance Sheet Components (Tables) |
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Balance Sheet Related Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for Doubtful Accounts | Allowance for doubtful accounts as of December 31, 2021 and 2020 were as follows (in thousands):
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Inventories | Inventories
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Schedule of Property, Plant and Equipment, Net | Property and equipment as of December 31, 2021 and 2020, consisted of the following (in thousands):
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Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities as of December 31, 2021 and 2020, consisted of the following (in thousands):
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Fair Value Measurements (Tables) |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Financial Assets Measured at Fair Value on a Recurring Basis | The Company’s financial assets and liabilities that were measured at fair value on a recurring basis were as follows (in thousands):
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Schedule of Amortized Cost, Unrealized Gains and Losses, and Fair Value of AFS Debt Securities | The following table summarizes the amortized cost, unrealized gains and losses, and fair value of our available-for-sale
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Amortized Cost and Fair Value of AFS Securities by Contractual Maturity Date | The following table summarizes the amortized cost and fair value of our available-for-sale years-to-maturity
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Debt (Tables) |
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Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Debt Obligations | The Company fully repaid all debt as of December 31, 2021. Debt obligations as of December 31, 2020, consisted of the following (in thousands):
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Commitment and Contingencies (Tables) |
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Future Minimum Operating Lease Payments and Purchase Obligations | As of December 31, 2021, future minimum operating lease payments and purchase obligations are as follows (in thousands):
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Redeemable Convertible Preferred Stock (Tables) |
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Temporary Equity Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Redeemable Convertible Preferred Stock | As of December 31, 2020, the Company’s redeemable convertible preferred stock consisted of the following (in thousands, except per share data):
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Stockholders' Equity (Tables) |
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Common Stock Reserved for Future Issuance | The Company had reserved shares of common stock for future issuance as of December 31, 2021 as follows (in thousands):
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Schedule of Accumulated Other Comprehensive Income (Loss) | The following table summarizes the changes in accumulated other comprehensive income (loss) by component, net of tax (in thousands):
|
Public and Private Warrants (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Warrant Liability | The following table summarizes the Public and Private Warrants activities during the year ended December 31, 2021 (in thousands):
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Warrants Measured at Fair Value | The Warrants are measured at fair value on a recurring basis. The following table presents the changes in the fair value of warrant liabilities (in thousands):
|
Contingent Earn-out Awards (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Contingent Earn Out Awards [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earn-out Shares Valuation | Assumptions used in the valuation are described below:
|
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Changes in Estimated Fair Value of the Company's Level 3 Financial Liabilities | The following table sets forth a summary of the changes in the estimated fair value of the earn-out liabilities, which are measured at fair value on a recurring basis using significant unobservable inputs (in thousands):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earn Out Awards [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Contingent Earn Out Awards [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earn-out Shares Valuation | The assumptions used to estimate the fair value of Earn-out Awards granted during the year ended December 31, 2021 were as follows:
|
Stock Plan (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share Based Payment Arrangement [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Stock Option Activity | The following table summarizes the stock option activities under the Company’s stock plans for year ended December 31, 2021 (in thousands, except for per share data):
|
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Schedule of RSU and PRSU Activity | The following table summarizes the time-based restricted stock unit (RSU) and performance-based restricted stock unit (PRSU) activity under the Company’s stock plans for the year ended December 31, 2021 (in thousands, except per share data):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Earn-out Award Activity | The following table summarizes the Earn-out Award activity under the Earn-out Arrangement pursuant to the Merger Agreement during the year ended December 31, 2021 (in thousands, except for per share data):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Employee Stock Option Valuation | The assumptions used to estimate the fair value of stock options granted during the year ended December 31, 2020 were as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earn-out Shares Valuation | Assumptions used in the valuation are described below:
|
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Employee Stock Purchase Plan Valuation | The following table summarizes the assumptions used and the resulting grant-date fair values of our ESPP:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based Compensation Arrangement | The amount of stock-based compensation related to stock-based awards to employees in the Company’s consolidated statements of operations for the years ended December 31, 2021 and 2020 were as follows (in thousands):
|
Income Taxes (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Loss before Income Taxes | The components of the net loss before income taxes, determined by jurisdiction, for the years ended December 31, 2021 and 2020 were as follows (in thousands):
|
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Schedule of Provision for Income Taxes | The provision for income taxes for the years ended December 31, 2021 and 2020 were as follows (in thousands):
|
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Schedule of Deferred Tax Assets | The components of the deferred tax assets for the years ended December 31, 2021 and 2020 consisted of the following (in thousands):
|
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Schedule of Valuation Allowance Deferred Tax Assets | The table below presents the changes in the valuation allowance for deferred tax assets for the years ended December 31, 2021 and 2020 (in thousands):
|
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Summary of Net Operating Loss Credit Carryforwards | Net operating loss and tax credit carryforwards as of December 31, 2021 were as follows (in thousands):
|
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Schedule of Effective Income Tax Rate Reconciliation | The effective tax rate of the Company’s provision for income taxes differed from the federal statutory rate as of December 31, 2021 and 2020, and was as follows:
|
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Schedule of Unrecognized Tax Benefits | A reconciliation of the Company’s unrecognized tax benefits for the years ended December 31, 2021 and 2020, was as follows (in thousands):
|
Net Loss Per Share Attributable To Common Stockholders (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Loss Per Share Attributable to Common Stockholders, Basic and Diluted | Net loss per share attributable to common stockholders was computed by dividing loss by the weighted-average number of common shares outstanding for the years ended December 31, 2021 and 2020 (in thousands, except for per share data):
|
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Potentially Dilutive Securities Excluded from the Computation of Diluted Net Loss Per Share Attributable to Common Stockholders | The following potentially dilutive outstanding securities were excluded from the computation of diluted net loss per share attributable to common stockholders, basic and diluted, because their effect would have been anti-dilutive or issuance of such shares is contingent upon the satisfaction of certain conditions which were not satisfied by the end of the period (shares in thousands):
|
Summary of Significant Accounting Policies - Cash (Details) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2021
USD ($)
Day
|
Dec. 31, 2020
USD ($)
|
|
Cash and Cash Equivalents [Line Items] | ||
Receivables from credit card processors | $ | $ 700 | $ 800 |
Restricted cash | $ | $ 468 | $ 400 |
Minimum | ||
Cash and Cash Equivalents [Line Items] | ||
Number of business days to convert credit card receivables to cash | Day | 3 | |
Maximum | ||
Cash and Cash Equivalents [Line Items] | ||
Number of business days to convert credit card receivables to cash | Day | 5 |
Summary of Significant Accounting Policies - Estimated Useful Lives (Details) |
12 Months Ended |
---|---|
Dec. 31, 2021 | |
Machinery and equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives (in years) | 2 years |
Machinery and equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives (in years) | 7 years |
Furniture and fixtures | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives (in years) | 3 years |
Capitalized software and development costs | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives (in years) | 3 years |
Summary of Significant Accounting Policies - Additional Information (Details) |
12 Months Ended | ||||
---|---|---|---|---|---|
Jul. 22, 2021
USD ($)
shares
|
Dec. 31, 2021
USD ($)
d
|
Dec. 31, 2020
USD ($)
d
|
Jan. 01, 2022
USD ($)
|
Dec. 31, 2019
USD ($)
|
|
Reverse Recapitalization [Line Items] | |||||
Allowance for doubtful accounts (less than $0.1 million in current period) | $ 291,000 | $ 799,000 | $ 337,000 | ||
Inventory provision | 0 | 100,000 | |||
Impairment of long-lived assets | 0 | 0 | |||
Deferred transaction costs | 100,000 | ||||
Transaction costs paid | $ 36,300,000 | $ 10,013,000 | $ 0 | ||
Additional paid in capital, reduction of proceeds | 35,700,000 | ||||
Transaction costs paid at closing | $ 600,000 | ||||
Number of acquisitions closed | d | 0 | 0 | |||
Acquisition related cost | $ 900,000 | ||||
Earn-out (in shares) | shares | 23,460,000 | ||||
Deferred sales commission | 1,600,000 | $ 800,000 | |||
Advertising costs | $ 10,500,000 | $ 4,100,000 | |||
Subsequent Event | |||||
Reverse Recapitalization [Line Items] | |||||
Right-of-use asset | $ 3,600,000 | ||||
Lease liability | $ 3,800,000 | ||||
Matterport, Inc. | |||||
Reverse Recapitalization [Line Items] | |||||
Transaction costs paid | $ 10,000,000.0 | ||||
Gores Holdings VI, Inc. | |||||
Reverse Recapitalization [Line Items] | |||||
Transaction costs paid | $ 26,300,000 |
Reverse Recapitalization - Narrative (Details) $ / shares in Units, $ in Thousands |
12 Months Ended | ||||||
---|---|---|---|---|---|---|---|
Jul. 22, 2021
USD ($)
$ / shares
shares
|
Dec. 31, 2021
USD ($)
$ / shares
shares
|
Dec. 31, 2020
USD ($)
$ / shares
shares
|
Jul. 21, 2021
$ / shares
|
Jun. 30, 2020
$ / shares
|
|||
Reverse Recapitalization [Line Items] | |||||||
Gross proceeds received in business combination | $ 640,100 | ||||||
Proceeds from cash held in trust account | 345,100 | ||||||
Redemption of common stock | $ 0 | $ 438 | |||||
Transaction costs paid | 36,300 | 10,013 | 0 | ||||
Additional paid in capital, reduction of proceeds | 35,700 | ||||||
Transaction costs | $ 600 | $ 565 | $ 0 | ||||
Issuance of common stock upon the reverse recapitalization, net of transaction costs (in shares) | shares | 72,500,000 | ||||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.0001 | $ 0.0001 | $ 0.0001 | $ 0.001 | |||
Recapitalization exchange ratio | 4.1193 | 4.1193 | |||||
Issuance of Series D redeemable convertible preferred stocks net of issuance costs (in shares) | shares | [1] | 52,000 | 21,708,000 | ||||
Legacy Matterport Common Stock Warrants | |||||||
Reverse Recapitalization [Line Items] | |||||||
Shares issued upon exercise of warrants (in shares) | shares | 1,038,444 | ||||||
Series D redeemable convertible preferred stock | |||||||
Reverse Recapitalization [Line Items] | |||||||
Common stock, par value (in dollars per share) | $ / shares | $ 2.0181 | ||||||
Issuance of Series D redeemable convertible preferred stocks net of issuance costs (in shares) | shares | 52,236 | ||||||
Legacy Matterport Preferred Stock | |||||||
Reverse Recapitalization [Line Items] | |||||||
Conversion of convertible securities (in shares) | shares | 126,460,926 | ||||||
Matterport, Inc. | |||||||
Reverse Recapitalization [Line Items] | |||||||
Transaction costs paid | $ 10,000 | ||||||
Gores Holdings VI, Inc. | |||||||
Reverse Recapitalization [Line Items] | |||||||
Transaction costs paid | 26,300 | ||||||
Gores Holdings VI, Inc. | Common Class A | |||||||
Reverse Recapitalization [Line Items] | |||||||
Additional PIPE | $ 295,000 | ||||||
Common stock, par value (in dollars per share) | $ / shares | $ 10.00 | ||||||
Gore Holdings VI, Inc. Public Stockholders | |||||||
Reverse Recapitalization [Line Items] | |||||||
Redemption of common stock | $ 900 | ||||||
Legacy Matterport Stockholders | |||||||
Reverse Recapitalization [Line Items] | |||||||
Issuance of common stock upon the reverse recapitalization, net of transaction costs (in shares) | shares | 218,875,000 | ||||||
|
Reverse Recapitalization - Shares Issued Immediately following Consummation of Merger (Details) - shares |
Jul. 22, 2021 |
Dec. 31, 2021 |
Dec. 31, 2020 |
---|---|---|---|
Reverse Recapitalization [Line Items] | |||
Common stock, outstanding (in shares) | 241,956,000 | 250,173,000 | 38,981,000 |
Issuance of common stock (shares) | 29,500,000 | ||
Earnout shares excluded (in shares) | 23,460,000 | ||
Earnout period | 180 days | ||
Legacy Matterport Stockholders | |||
Reverse Recapitalization [Line Items] | |||
Common stock, outstanding (in shares) | 169,425,000 | ||
Public Stockholders of Gores | |||
Reverse Recapitalization [Line Items] | |||
Stock Issued during period (shares) | 34,406,000 | ||
Initial Stockholders' Class F Stock | |||
Reverse Recapitalization [Line Items] | |||
Stock Issued during period (shares) | 8,625,000 | ||
Initial Stockholders' Class F Stock, Subscription Shares Excluded | |||
Reverse Recapitalization [Line Items] | |||
Issuance of common stock (shares) | 4,079,000,000 | ||
Initial Stockholders' Class F Stock, PIPE Investment Shares Excluded | |||
Reverse Recapitalization [Line Items] | |||
Issuance of common stock (shares) | 15,000,000 | ||
PIPE Investors, Subscription Shares Included | |||
Reverse Recapitalization [Line Items] | |||
Issuance of common stock (shares) | 4,079,000,000 | ||
PIPE Investors, Investment Shares Included | |||
Reverse Recapitalization [Line Items] | |||
Issuance of common stock (shares) | 15,000,000 |
Revenue - Disaggregated Revenue (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Disaggregation of Revenue [Line Items] | ||
Total revenue | $ 111,174 | $ 85,884 |
Over time revenue | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 73,867 | 49,260 |
Point-in-time revenue | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 37,307 | 36,624 |
United States | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 67,544 | 52,093 |
International | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | $ 43,630 | $ 33,791 |
Revenue - Contract Balances (Details) - USD ($) $ in Thousands |
Dec. 31, 2021 |
Dec. 31, 2020 |
---|---|---|
Revenue from Contract with Customer [Abstract] | ||
Accounts receivable, net | $ 8,898 | $ 2,700 |
Unbilled accounts receivable | 1,981 | 1,224 |
Deferred revenue | $ 11,948 | $ 4,903 |
Revenue - Additional Information (Details) - USD ($) $ in Millions |
12 Months Ended | |
---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Revenue from Contract with Customer [Abstract] | ||
Deferred revenue recognized | $ 4.5 | $ 2.2 |
Revenue - Remaining Performance Obligation (Details) - USD ($) $ in Millions |
Dec. 31, 2021 |
Dec. 31, 2020 |
---|---|---|
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Contracted but unsatisfied performance obligations | $ 25.9 | $ 12.2 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Contracted but unsatisfied performance obligations | $ 21.6 | |
Contracted but unsatisfied performance obligations, period | 1 year | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Contracted but unsatisfied performance obligations, period | 1 year |
Balance Sheet Components - Allowance for Doubtful Accounts (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance—beginning of period | $ (799) | $ (337) |
Increase in reserves | (222) | (846) |
Write-offs | 730 | 384 |
Balance—end of period | $ (291) | $ (799) |
Balance sheet Components - Inventories (Details) - USD ($) $ in Thousands |
Dec. 31, 2021 |
Dec. 31, 2020 |
---|---|---|
Balance Sheet Related Disclosures [Abstract] | ||
Finished Goods | $ 295 | $ 538 |
Work in process | 2,043 | 2,219 |
Purchased parts and raw materials | 3,255 | 889 |
Total inventories | $ 5,593 | $ 3,646 |
Balance Sheet Components - Property, Plant and Equipment, Net (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 32,371 | $ 20,653 |
Accumulated depreciation and amortization | (18,253) | (12,443) |
Total property and equipment, net | 14,118 | 8,210 |
Depreciation and amortization | 5,824 | 4,778 |
Capitalized computer software additions | 10,800 | 5,000 |
Capitalized computer software amortization | 5,500 | 4,500 |
Costs of revenue | ||
Property, Plant and Equipment [Line Items] | ||
Capitalized computer software amortization | 4,700 | 3,900 |
Selling, general, and administrative | ||
Property, Plant and Equipment [Line Items] | ||
Capitalized computer software amortization | 800 | 600 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 2,324 | 1,435 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 355 | 359 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 728 | 733 |
Capitalized software and development costs | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 28,964 | $ 18,126 |
Balance Sheet Components - Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands |
Dec. 31, 2021 |
Dec. 31, 2020 |
---|---|---|
Balance Sheet Related Disclosures [Abstract] | ||
Accrued compensation | $ 2,754 | $ 3,208 |
Tax payable | 1,063 | 1,164 |
ESPP Contribution | 693 | 0 |
Transaction cost payable | 0 | 135 |
Other current liabilities | 5,516 | 2,488 |
Total accrued expenses and other current liabilities | $ 10,026 | $ 6,995 |
Fair Value Measurements - Assets on a Recurring Basis (Details) - USD ($) $ in Thousands |
Dec. 31, 2021 |
Jul. 22, 2021 |
Dec. 31, 2020 |
---|---|---|---|
Short-term investments: | |||
Short-term investments | $ 264,931 | $ 0 | |
Other assets: | |||
Convertible notes receivable | 529,697 | ||
Financial Liabilities: | |||
Warrants liability | 38,974 | 64,127 | |
Contingent earn-out liability | $ 231,600 | ||
Public warrants liability | |||
Financial Liabilities: | |||
Warrants liability | 23,329 | 38,984 | |
Private warrants liability | |||
Financial Liabilities: | |||
Warrants liability | 15,645 | 25,143 | |
Non-U.S. government and agency securities | |||
Other assets: | |||
Convertible notes receivable | 24,317 | ||
Corporate debt securities | |||
Other assets: | |||
Convertible notes receivable | 171,321 | ||
Commercial paper | |||
Other assets: | |||
Convertible notes receivable | 147,877 | ||
U.S. government and agency securities | |||
Other assets: | |||
Convertible notes receivable | 185,075 | ||
Fair Value, Recurring | |||
Cash equivalents: | |||
Cash equivalents, fair value | 44,142 | 43,116 | |
Short-term investments: | |||
Short-term investments | 264,931 | ||
Long-term investments: | |||
Long-term investments | 263,659 | ||
Other assets: | |||
Convertible notes receivable | 1,107 | ||
Total assets measured at fair value | 573,839 | 43,116 | |
Financial Liabilities: | |||
Contingent earn-out liability | 377,576 | ||
Total liabilities measured at fair value | 416,550 | ||
Fair Value, Recurring | Public warrants liability | |||
Financial Liabilities: | |||
Warrants liability | 15,645 | ||
Fair Value, Recurring | Private warrants liability | |||
Financial Liabilities: | |||
Warrants liability | 23,329 | ||
Fair Value, Recurring | Non-U.S. government and agency securities | |||
Short-term investments: | |||
Short-term investments | 24,317 | ||
Fair Value, Recurring | Corporate debt securities | |||
Short-term investments: | |||
Short-term investments | 92,737 | ||
Long-term investments: | |||
Long-term investments | 78,584 | ||
Fair Value, Recurring | Commercial paper | |||
Short-term investments: | |||
Short-term investments | 147,877 | ||
Fair Value, Recurring | U.S. government and agency securities | |||
Long-term investments: | |||
Long-term investments | 185,075 | ||
Fair Value, Recurring | Convertible notes receivable | |||
Other assets: | |||
Convertible notes receivable | 1,107 | ||
Fair Value, Recurring | Money market funds | |||
Cash equivalents: | |||
Cash equivalents, fair value | 44,142 | 43,116 | |
Level 1 | Fair Value, Recurring | |||
Cash equivalents: | |||
Cash equivalents, fair value | 44,142 | 43,116 | |
Short-term investments: | |||
Short-term investments | 0 | ||
Long-term investments: | |||
Long-term investments | 185,075 | ||
Other assets: | |||
Convertible notes receivable | 0 | ||
Total assets measured at fair value | 229,217 | 43,116 | |
Financial Liabilities: | |||
Contingent earn-out liability | 0 | ||
Total liabilities measured at fair value | 15,645 | ||
Level 1 | Fair Value, Recurring | Public warrants liability | |||
Financial Liabilities: | |||
Warrants liability | 15,645 | ||
Level 1 | Fair Value, Recurring | Private warrants liability | |||
Financial Liabilities: | |||
Warrants liability | 0 | ||
Level 1 | Fair Value, Recurring | Non-U.S. government and agency securities | |||
Short-term investments: | |||
Short-term investments | 0 | ||
Level 1 | Fair Value, Recurring | Corporate debt securities | |||
Short-term investments: | |||
Short-term investments | 0 | ||
Long-term investments: | |||
Long-term investments | 0 | ||
Level 1 | Fair Value, Recurring | Commercial paper | |||
Short-term investments: | |||
Short-term investments | 0 | ||
Level 1 | Fair Value, Recurring | U.S. government and agency securities | |||
Long-term investments: | |||
Long-term investments | 185,075 | ||
Level 1 | Fair Value, Recurring | Convertible notes receivable | |||
Other assets: | |||
Convertible notes receivable | 0 | ||
Level 1 | Fair Value, Recurring | Money market funds | |||
Cash equivalents: | |||
Cash equivalents, fair value | 44,142 | 43,116 | |
Level 2 | Fair Value, Recurring | |||
Cash equivalents: | |||
Cash equivalents, fair value | 0 | 0 | |
Short-term investments: | |||
Short-term investments | 264,931 | ||
Long-term investments: | |||
Long-term investments | 78,584 | ||
Other assets: | |||
Convertible notes receivable | 0 | ||
Total assets measured at fair value | 343,515 | 0 | |
Financial Liabilities: | |||
Contingent earn-out liability | |||
Total liabilities measured at fair value | 23,329 | ||
Level 2 | Fair Value, Recurring | Public warrants liability | |||
Financial Liabilities: | |||
Warrants liability | 0 | ||
Level 2 | Fair Value, Recurring | Private warrants liability | |||
Financial Liabilities: | |||
Warrants liability | 23,329 | ||
Level 2 | Fair Value, Recurring | Non-U.S. government and agency securities | |||
Short-term investments: | |||
Short-term investments | 24,317 | ||
Level 2 | Fair Value, Recurring | Corporate debt securities | |||
Short-term investments: | |||
Short-term investments | 92,737 | ||
Long-term investments: | |||
Long-term investments | 78,584 | ||
Level 2 | Fair Value, Recurring | Commercial paper | |||
Short-term investments: | |||
Short-term investments | 147,877 | ||
Level 2 | Fair Value, Recurring | U.S. government and agency securities | |||
Long-term investments: | |||
Long-term investments | 0 | ||
Level 2 | Fair Value, Recurring | Convertible notes receivable | |||
Other assets: | |||
Convertible notes receivable | 0 | ||
Level 2 | Fair Value, Recurring | Money market funds | |||
Cash equivalents: | |||
Cash equivalents, fair value | 0 | 0 | |
Level 3 | Fair Value, Recurring | |||
Cash equivalents: | |||
Cash equivalents, fair value | 0 | 0 | |
Short-term investments: | |||
Short-term investments | 0 | ||
Long-term investments: | |||
Long-term investments | 0 | ||
Other assets: | |||
Convertible notes receivable | 1,107 | ||
Total assets measured at fair value | 1,107 | 0 | |
Financial Liabilities: | |||
Contingent earn-out liability | 377,576 | ||
Total liabilities measured at fair value | 377,576 | ||
Level 3 | Fair Value, Recurring | Public warrants liability | |||
Financial Liabilities: | |||
Warrants liability | 0 | ||
Level 3 | Fair Value, Recurring | Private warrants liability | |||
Financial Liabilities: | |||
Warrants liability | 0 | ||
Level 3 | Fair Value, Recurring | Non-U.S. government and agency securities | |||
Short-term investments: | |||
Short-term investments | 0 | ||
Level 3 | Fair Value, Recurring | Corporate debt securities | |||
Short-term investments: | |||
Short-term investments | 0 | ||
Long-term investments: | |||
Long-term investments | 0 | ||
Level 3 | Fair Value, Recurring | Commercial paper | |||
Short-term investments: | |||
Short-term investments | 0 | ||
Level 3 | Fair Value, Recurring | U.S. government and agency securities | |||
Long-term investments: | |||
Long-term investments | 0 | ||
Level 3 | Fair Value, Recurring | Convertible notes receivable | |||
Other assets: | |||
Convertible notes receivable | 1,107 | ||
Level 3 | Fair Value, Recurring | Money market funds | |||
Cash equivalents: | |||
Cash equivalents, fair value | $ 0 | $ 0 |
Fair Value Measurements - Amortized Cost, Unrealized Gains and Losses, and FV of AFS Debt Securities (Details) $ in Thousands |
Dec. 31, 2021
USD ($)
|
---|---|
Investments: | |
Total available-for-sale investments | $ 531,184 |
Available-for-sale investments, unrealized gains | 107 |
Available-for-sale investments, unrealized losses | (1,594) |
Available-for-sale, fair value | 529,697 |
U.S. government and agency securities | |
Investments: | |
Total available-for-sale investments | 186,113 |
Available-for-sale investments, unrealized gains | 0 |
Available-for-sale investments, unrealized losses | (1,038) |
Available-for-sale, fair value | 185,075 |
Non-U.S. government and agency securities | |
Investments: | |
Total available-for-sale investments | 24,385 |
Available-for-sale investments, unrealized gains | 0 |
Available-for-sale investments, unrealized losses | (68) |
Available-for-sale, fair value | 24,317 |
Corporate debt securities | |
Investments: | |
Total available-for-sale investments | 171,772 |
Available-for-sale investments, unrealized gains | 0 |
Available-for-sale investments, unrealized losses | (451) |
Available-for-sale, fair value | 171,321 |
Commercial paper | |
Investments: | |
Total available-for-sale investments | 147,914 |
Available-for-sale investments, unrealized gains | 0 |
Available-for-sale investments, unrealized losses | (37) |
Available-for-sale, fair value | 147,877 |
Convertible notes receivable | |
Investments: | |
Total available-for-sale investments | 1,000 |
Available-for-sale investments, unrealized gains | 107 |
Available-for-sale investments, unrealized losses | 0 |
Available-for-sale, fair value | $ 1,107 |
Fair Value Measurements - Narrative (Details) |
Dec. 31, 2021
USD ($)
|
Jan. 31, 2021
USD ($)
|
---|---|---|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other-than-temporary impairments | $ 0 | |
Measurement Input, Probability of Repayment | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Convertible notes receivable, measurement input | 70 | |
Measurement Input, Probability of Conversion | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Convertible notes receivable, measurement input | 30 | |
Measurement Input, Discount Rate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Convertible notes receivable, measurement input | 16.2 | |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term investments | $ 1,000,000.0 | |
Convertible notes receivable, interest rate (percent) | 5.0 |
Fair Value Measurements - Amortized Cost and Fair Value by Maturity (Details) $ in Thousands |
Dec. 31, 2021
USD ($)
|
---|---|
Fair Value Disclosures [Abstract] | |
Amortized cost, due within one year | $ 265,216 |
Amortized cost, due between one and three years | 265,968 |
Total available-for-sale investments | 531,184 |
Fair value, due within one year | 264,931 |
Fair value, due between one and three years | 264,766 |
Total available-for-sale investments | $ 529,697 |
Debt - Narrative (Details) |
1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Oct. 12, 2020
USD ($)
|
Apr. 17, 2020
USD ($)
|
Feb. 20, 2020
USD ($)
payment
loanFacility
|
Sep. 27, 2019
USD ($)
|
Sep. 16, 2019
USD ($)
payment
|
Apr. 20, 2018
USD ($)
payment
|
Nov. 03, 2017
USD ($)
payment
|
Oct. 26, 2017
USD ($)
|
May 22, 2017
USD ($)
|
Sep. 23, 2016
USD ($)
payment
|
May 20, 2015
USD ($)
|
Jul. 31, 2021
USD ($)
|
Apr. 30, 2020
USD ($)
|
Dec. 31, 2021
USD ($)
|
Dec. 31, 2020
USD ($)
|
Dec. 31, 2021
USD ($)
|
Dec. 31, 2020
USD ($)
|
Apr. 28, 2020
USD ($)
|
Apr. 27, 2020
USD ($)
|
|
Debt Instrument [Line Items] | |||||||||||||||||||
Proceeds from debt, net | $ 0 | $ 6,221,000 | |||||||||||||||||
Amortization of debt discount | 135,000 | 223,000 | |||||||||||||||||
Principal amount | $ 4,502,000 | 4,502,000 | |||||||||||||||||
Loss on extinguishment of debt | 210,000 | 955,000 | |||||||||||||||||
2019 Term Loan and Line of Credit | |||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||
Amortization of debt discount | 200,000 | 300,000 | |||||||||||||||||
Term Loan | 2015 Term Loan | |||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||
Term loan, maximum amount | $ 4,000,000.0 | ||||||||||||||||||
Proceeds from debt, net | $ 4,000,000.0 | ||||||||||||||||||
Number of equal installment payments | payment | 36,000,000 | ||||||||||||||||||
Term Loan | 2015 Term Loan | Prime Rate | |||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||
Basis spread on floating rate (percent) | 1.00% | ||||||||||||||||||
Term Loan | 2017 Term Loan | |||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||
Term loan, maximum amount | $ 1,500,000 | ||||||||||||||||||
Proceeds from debt, net | $ 1,500,000 | ||||||||||||||||||
Number of equal installment payments | payment | 36,000,000 | ||||||||||||||||||
Stated interest rate (percent) | 5.25% | ||||||||||||||||||
Debt repaid in full | $ 1,000,000.0 | ||||||||||||||||||
Term Loan | 2017 Term Loan | Prime Rate | |||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||
Basis spread on floating rate (percent) | 1.00% | ||||||||||||||||||
Term Loan | 2019 Term Loan | |||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||
Term loan, maximum amount | 3,000,000.0 | ||||||||||||||||||
Proceeds from debt, net | $ 3,000,000.0 | ||||||||||||||||||
Number of equal installment payments | payment | 36,000,000 | 36 | |||||||||||||||||
Stated interest rate (percent) | 5.25% | 5.25% | |||||||||||||||||
Repayment of term loan | 2,400,000 | 600,000 | |||||||||||||||||
Term Loan | 2019 Term Loan | Prime Rate | |||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||
Basis spread on floating rate (percent) | 1.00% | ||||||||||||||||||
Term Loan | 2018 Agreement | |||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||
Term loan, maximum amount | $ 10,000,000.0 | ||||||||||||||||||
Stated interest rate (percent) | 11.50% | ||||||||||||||||||
Principal amount | 5,100,000 | 5,100,000 | |||||||||||||||||
Repayment of term loan | 5,600,000 | 3,200,000 | |||||||||||||||||
Number of monthly scheduled installment payments | payment | 48 | ||||||||||||||||||
Payment of final payment fee | $ 500,000 | ||||||||||||||||||
Final payment due at maturity or prepayment date | 100,000 | ||||||||||||||||||
Period of interest-only payments | 12 months | ||||||||||||||||||
Interest expense | 300,000 | 800,000 | |||||||||||||||||
Loss on extinguishment of debt | 100,000 | ||||||||||||||||||
Term Loan | 2020 Term Loan | |||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||
Term loan, maximum amount | $ 2,000,000.0 | ||||||||||||||||||
Number of equal installment payments | payment | 24,000,000 | ||||||||||||||||||
Stated interest rate (percent) | 4.75% | ||||||||||||||||||
Repayment of term loan | 2,000,000.0 | ||||||||||||||||||
Interest expense | $ 200,000 | 100,000 | |||||||||||||||||
Loss on extinguishment of debt | $ 100,000 | ||||||||||||||||||
Number of term loan facilities | loanFacility | 2 | ||||||||||||||||||
Aggregated annual coupon payment | $ 100,000 | ||||||||||||||||||
Term Loan | 2020 Term Loan - Facility A | |||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||
Term loan, maximum amount | $ 1,000,000.0 | ||||||||||||||||||
Proceeds from debt, net | $ 1,000,000.0 | ||||||||||||||||||
Debt maturity period | 36 months | ||||||||||||||||||
Term Loan | 2020 Term Loan - Facility B | |||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||
Term loan, maximum amount | $ 1,000,000.0 | ||||||||||||||||||
Proceeds from debt, net | $ 1,000,000.0 | ||||||||||||||||||
Debt maturity period | 30 months | ||||||||||||||||||
Line of Credit | 2015 Account Financing | Revolving Credit Facility | |||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||
Maximum borrowing capacity | $ 1,000,000.0 | ||||||||||||||||||
Line of Credit | 2015 Amended and Restated Agreement | Revolving Credit Facility | |||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||
Maximum borrowing capacity | $ 2,000,000.0 | ||||||||||||||||||
Line of Credit | 2015 Amended and Restated Agreement | Prime Rate | Revolving Credit Facility | |||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||
Basis spread on floating rate (percent) | 0.50% | ||||||||||||||||||
Line of Credit | 2017 Second Amended and Restated Agreement | Revolving Credit Facility | |||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||
Maximum borrowing capacity | $ 3,000,000.0 | $ 3,000,000.0 | |||||||||||||||||
Stated interest rate (percent) | 5.25% | ||||||||||||||||||
Proceeds from line of credit | $ 3,000,000.0 | ||||||||||||||||||
Line of Credit | 2017 Second Amended and Restated Agreement | Prime Rate | Revolving Credit Facility | |||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||
Basis spread on floating rate (percent) | 0.50% | ||||||||||||||||||
Line of Credit | 2020 Amendment | |||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||
Principal amount | 3,000,000.0 | $ 3,000,000.0 | |||||||||||||||||
Line of Credit | 2020 Amendment | Revolving Credit Facility | |||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||
Maximum borrowing capacity | $ 5,000,000.0 | ||||||||||||||||||
Stated interest rate (percent) | 5.25% | ||||||||||||||||||
Debt repaid in full | $ 3,000,000.0 | ||||||||||||||||||
Notes Payable to Banks | Paycheck Protection Program CARES Act | |||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||
Interest expense | $ 100,000 | ||||||||||||||||||
Debt maturity period | 2 years | ||||||||||||||||||
Notes payable | $ 4,300,000 | ||||||||||||||||||
Fixed annual interest rate (percent) | 1.00% |
Debt - Schedule of Debt Obligations (Details) - USD ($) $ in Thousands |
Dec. 31, 2021 |
Dec. 31, 2020 |
---|---|---|
Debt Instrument [Line Items] | ||
Total debt | $ 13,067 | |
Less: unamortized debt discount | (350) | |
Total debt, net of debt discount | 12,717 | |
Current portion of long-term debt | $ 0 | (8,215) |
Long-term debt | 4,502 | |
Line of Credit | Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Total debt | 3,000 | |
Term Loan | 2019 Term Loan | ||
Debt Instrument [Line Items] | ||
Total debt | 2,417 | |
Term Loan | 2018 Term Loan | ||
Debt Instrument [Line Items] | ||
Total debt | 5,650 | |
Long-term debt | 5,100 | |
Term Loan | 2020 Term Loan | ||
Debt Instrument [Line Items] | ||
Total debt | $ 2,000 |
Commitment and Contingencies - Narrative (Details) |
12 Months Ended | ||
---|---|---|---|
May 11, 2020
d
|
Dec. 31, 2021
USD ($)
|
Dec. 31, 2020
USD ($)
|
|
Commitments and Contingencies Disclosure [Abstract] | |||
Rent expense | $ 1,800,000 | $ 2,500,000 | |
Number of patents allegedly infringed | d | 4 | ||
Estimated litigation liability | $ 0 | $ 0 |
Commitment and Contingencies - Future Minimum Operating Lease Payments and Purchase Obligations (Details) $ in Thousands |
Dec. 31, 2021
USD ($)
|
---|---|
Operating Leases | |
2022 | $ 1,312 |
2023 | 1,339 |
2024 | 1,306 |
2025 | 207 |
Thereafter | 0 |
Total | 4,164 |
Purchase Obligations | |
2022 | 11,505 |
2023 | 308 |
2024 | 175 |
2025 | 0 |
Thereafter | 0 |
Total | 11,988 |
Total Lease and Purchase Obligations | |
2021 | 12,817 |
2022 | 1,647 |
2023 | 1,481 |
2024 | 207 |
Thereafter | 0 |
Total | $ 16,152 |
Convertible Notes - Additional Information (Details) |
1 Months Ended | 3 Months Ended | 12 Months Ended | ||
---|---|---|---|---|---|
Apr. 30, 2020
USD ($)
$ / shares
shares
|
Jun. 30, 2020
USD ($)
$ / shares
shares
|
Mar. 31, 2020
USD ($)
$ / shares
|
Dec. 31, 2021
USD ($)
|
Dec. 31, 2020
USD ($)
|
|
Series D redeemable convertible preferred stock | |||||
Debt Instrument [Line Items] | |||||
Conversion of convertible debt plus interest into Series D redeemable convertible preferred stock (in dollars per share) | $ / shares | $ 1.8163 | ||||
Redeemable convertible preferred, issued (in shares) | shares | 21,708,519 | ||||
Redeemable convertible preferred issued (in dollars per share) | $ / shares | $ 2.0181 | ||||
Proceeds from issuance of redeemable convertible preferred stock | $ 43,800,000 | ||||
Conversion of debt, shares issued (in shares) | shares | 4,728,975 | ||||
Aggregate proceeds from convertible preferred stock financing and converted notes | $ 52,400,000 | ||||
2020 Notes | |||||
Debt Instrument [Line Items] | |||||
Conversion of debt to redeemable convertible preferred stock, trigger amount | $ 10,000,000.0 | ||||
Conversion of debt to redeemable convertible preferred stock, discount rate (percent) | 15.0 | 10.0 | |||
2020 Notes | Series D redeemable convertible preferred stock | |||||
Debt Instrument [Line Items] | |||||
Conversion of convertible debt plus interest into Series D redeemable convertible preferred stock (in dollars per share) | $ / shares | $ 2.0181 | ||||
2020 Notes | Convertible Notes | |||||
Debt Instrument [Line Items] | |||||
Proceeds from issuance of convertible notes | $ 8,500,000 | ||||
Stated interest rate (percent) | 5.00% | ||||
Unpaid accrued interest | 8,600,000 | ||||
Fair value of embedded derivative | $ 900,000 | $ 1,000,000.0 | |||
Interest expense | $ 0 | $ 100,000 |
Redeemable Convertible Preferred Stock - Narrative (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Jul. 22, 2021 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Class of Stock [Line Items] | |||
Conversion of Legacy Matterport preferred shares | $ 164,461 | $ 0 | |
Common Stock | |||
Class of Stock [Line Items] | |||
Aggregate shares issued upon conversion of Legacy Matterport preferred stock (in shares) | 126,460,926 | ||
Conversion of Legacy Matterport preferred shares | $ 164,500 |
Redeemable Convertible Preferred Stock (Details) $ / shares in Units, $ in Thousands |
12 Months Ended | ||||
---|---|---|---|---|---|
Dec. 31, 2020
USD ($)
$ / shares
shares
|
Dec. 31, 2021
USD ($)
shares
|
Dec. 31, 2019
USD ($)
shares
|
|||
Class of Stock [Line Items] | |||||
Shares Authorized (in shares) | 125,405,000 | 30,000,000 | |||
Shares Issued (in shares) | 124,979,000 | 0 | |||
Shares Outstanding (in shares) | [1] | 124,979,000 | 0 | 98,542,000 | |
Shares of Common Stock if converted (in shares) | 126,409 | ||||
Carrying Value | $ | $ 164,168 | $ 0 | $ 110,978 | ||
Aggregate Liquidation Preference | $ | $ 166,131 | $ 0 | |||
Series Seed redeemable | |||||
Class of Stock [Line Items] | |||||
Original Issuance Price (in dollars per share) | $ / shares | $ 0.3507 | ||||
Shares Authorized (in shares) | 24,861,000 | ||||
Shares Issued (in shares) | 24,861,000 | ||||
Shares Outstanding (in shares) | 24,861,000 | ||||
Shares of Common Stock if converted (in shares) | 24,861 | ||||
Carrying Value | $ | $ 7,350 | ||||
Aggregate Liquidation Preference | $ | $ 8,720 | ||||
Dividend Rate (percent) | 8.0 | ||||
Series A-1 redeemable | |||||
Class of Stock [Line Items] | |||||
Original Issuance Price (in dollars per share) | $ / shares | $ 0.4261 | ||||
Shares Authorized (in shares) | 7,570,000 | ||||
Shares Issued (in shares) | 7,570,000 | ||||
Shares Outstanding (in shares) | 7,570,000 | ||||
Shares of Common Stock if converted (in shares) | 7,570 | ||||
Carrying Value | $ | $ 3,165 | ||||
Aggregate Liquidation Preference | $ | $ 3,226 | ||||
Dividend Rate (percent) | 8.0 | ||||
Series B redeemable | |||||
Class of Stock [Line Items] | |||||
Original Issuance Price (in dollars per share) | $ / shares | $ 0.8194 | ||||
Shares Authorized (in shares) | 19,527,000 | ||||
Shares Issued (in shares) | 19,527,000 | ||||
Shares Outstanding (in shares) | 19,527,000 | ||||
Shares of Common Stock if converted (in shares) | 20,957 | ||||
Carrying Value | $ | $ 15,905 | ||||
Aggregate Liquidation Preference | $ | $ 16,000 | ||||
Dividend Rate (percent) | 8.0 | ||||
Series C redeemable | |||||
Class of Stock [Line Items] | |||||
Original Issuance Price (in dollars per share) | $ / shares | $ 1.7194 | ||||
Shares Authorized (in shares) | 30,730,000 | ||||
Shares Issued (in shares) | 30,727,000 | ||||
Shares Outstanding (in shares) | 30,727,000 | ||||
Shares of Common Stock if converted (in shares) | 30,727 | ||||
Carrying Value | $ | $ 52,696 | ||||
Aggregate Liquidation Preference | $ | $ 52,832 | ||||
Dividend Rate (percent) | 8.0 | ||||
Series D redeemable | |||||
Class of Stock [Line Items] | |||||
Original Issuance Price (in dollars per share) | $ / shares | $ 2.0181 | ||||
Shares Authorized (in shares) | 42,717,000 | ||||
Shares Issued (in shares) | 42,294,000 | ||||
Shares Outstanding (in shares) | 42,294,000 | ||||
Shares of Common Stock if converted (in shares) | 42,294 | ||||
Carrying Value | $ | $ 85,052 | ||||
Aggregate Liquidation Preference | $ | $ 85,353 | ||||
Dividend Rate (percent) | 8.0 | ||||
|
Stockholders' Equity - Narrative (Details) $ / shares in Units, $ in Thousands |
12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|
Jul. 22, 2021
USD ($)
$ / shares
shares
|
Dec. 31, 2021
USD ($)
lender
$ / shares
shares
|
Dec. 31, 2020
USD ($)
$ / shares
shares
|
Jul. 21, 2021
$ / shares
shares
|
Dec. 31, 2019
shares
|
[1] | |||||
Class of Stock [Line Items] | ||||||||||
Issuance of common stock upon the reverse recapitalization, net of transaction costs (in shares) | shares | 72,500,000 | |||||||||
Gross proceeds received in business combination | $ 640,100 | |||||||||
Redemption of common stock | $ 0 | $ 438 | ||||||||
Transaction costs paid | 36,300 | 10,013 | 0 | |||||||
Additional paid in capital, reduction of proceeds | 35,700 | |||||||||
Transaction costs | $ 600 | $ 565 | $ 0 | |||||||
Common stock, authorized (in shares) | shares | 640,000,000 | 640,000,000 | 230,680,000 | 232,700,000 | ||||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.0001 | $ 0.0001 | $ 0.0001 | $ 0.001 | ||||||
Stock, authorized (in shares) | shares | 670,000,000 | |||||||||
Stock, par value (in dollars per share) | $ / shares | $ 0.0001 | |||||||||
Preferred stock, authorized (in shares) | shares | 30,000,000 | |||||||||
Common stock, outstanding (in shares) | shares | 241,956,000 | 250,173,000 | 38,981,000 | |||||||
Warrants, contractual life | 5 years | |||||||||
Unamortized debt discount | $ 350 | |||||||||
Amortization of debt discount | $ 135 | $ 223 | ||||||||
Common Stock | ||||||||||
Class of Stock [Line Items] | ||||||||||
Issuance of common stock upon the reverse recapitalization, net of transaction costs (in shares) | shares | [1] | 72,531,000 | ||||||||
Common stock, outstanding (in shares) | shares | 242,000,000.0 | 250,173,000 | [1] | 38,981,000 | [1] | 32,132,000 | ||||
Number of lenders | lender | 3 | |||||||||
Warrants, contractual life | 10 days | |||||||||
Shares issued upon exercise of warrants (in shares) | shares | 1,000,000.0 | |||||||||
Warrants | ||||||||||
Class of Stock [Line Items] | ||||||||||
Unamortized debt discount | $ 200 | |||||||||
Amortization of debt discount | $ 200 | |||||||||
Matterport, Inc. | ||||||||||
Class of Stock [Line Items] | ||||||||||
Transaction costs paid | $ 10,000 | |||||||||
Gore Holdings VI, Inc. Public Stockholders | ||||||||||
Class of Stock [Line Items] | ||||||||||
Redemption of common stock | 900 | |||||||||
Gores Holdings VI, Inc. | ||||||||||
Class of Stock [Line Items] | ||||||||||
Transaction costs paid | $ 26,300 | |||||||||
|
Stockholders' Equity - Shares Reserved for Future Issuance (Details) |
Dec. 31, 2021
shares
|
---|---|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Total shares of common stock reserved | 105,365 |
Common stock reserved for Earn-out | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Total shares of common stock reserved | 23,460 |
Public and private warrants to purchase common stock | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Total shares of common stock reserved | 4,260 |
Common stock options outstanding and unvested RSUs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Total shares of common stock reserved | 66,971 |
Shares available for future grant under 2021 Employee Stock Purchase Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Total shares of common stock reserved | 7,259 |
Shares available for future grant under 2021 Incentive Award Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Total shares of common stock reserved | 3,415 |
Stockholders' Equity - Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
|
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | $ (120,700) | $ (109,629) |
Ending balance | 268,163 | (120,700) |
Total | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | 135 | 36 |
Net unrealized gain | (1,674) | 99 |
Ending balance | (1,539) | 135 |
Foreign Currency Translation, Net of Tax | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | 135 | 36 |
Net unrealized gain | (187) | 99 |
Ending balance | (52) | 135 |
Unrealized Losses on Available-for-Sale Debt Securities, Net of Tax | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | 0 | 0 |
Net unrealized gain | (1,487) | 0 |
Ending balance | $ (1,487) | $ 0 |
Public and Private Warrants (Details) |
12 Months Ended | |||
---|---|---|---|---|
Jul. 21, 2021
Day
$ / shares
shares
|
Dec. 31, 2021
$ / shares
shares
|
Jan. 14, 2022
$ / shares
|
Jul. 22, 2021
shares
|
|
Class of Warrant or Right [Line Items] | ||||
Warrants issued (in shares) | 4,260,000 | 11,350,000 | ||
Number of shares purchasable with each warrant (in shares) | 1 | |||
Warrant, exercise price (in dollars per share) | $ / shares | $ 11.50 | |||
Warrants, contractual life | 5 years | |||
Days between end of trading-day period and notice of redemption to warrant holders | 3 days | |||
Warrant Activity [Abstract] | ||||
Warrants Exercised (in shares) | (7,090,000) | |||
Outstanding as of December 31, 2021 | 4,260,000 | 11,350,000 | ||
Public warrants liability | ||||
Class of Warrant or Right [Line Items] | ||||
Warrants issued (in shares) | 2,552,000 | 6,900,000 | ||
Redemption price per warrant (in dollars per share) | $ / shares | $ 0.01 | |||
Prior written notice of redemption, period | 30 days | |||
Warrant redemption, trigger price (in dollars per share) | $ / shares | $ 18.00 | |||
Warrant redemption, number of trading days at or above trigger price | Day | 20 | |||
Days included in warrant redemption trading day period | Day | 30 | |||
Warrant redemption, period after warrants become exercisable | 90 days | |||
Warrant redemption, number of trading days Included in fair market value average | Day | 10 | |||
Warrant, fair value redemption (in dollars per share) | $ / shares | $ 10.00 | |||
Warrant Activity [Abstract] | ||||
Warrants Exercised (in shares) | (4,348,000) | |||
Outstanding as of December 31, 2021 | 2,552,000 | 6,900,000 | ||
Warrants, fair value (in dollars per share) | $ / shares | $ 9.14 | |||
Public warrants liability | Subsequent Event | ||||
Class of Warrant or Right [Line Items] | ||||
Redemption price per warrant (in dollars per share) | $ / shares | $ 0.01 | |||
Warrant, exercise price (in dollars per share) | $ / shares | $ 11.50 | |||
Private warrants liability | ||||
Class of Warrant or Right [Line Items] | ||||
Warrants issued (in shares) | 1,708,000 | 4,450,000 | ||
Private placement warrant vesting period | 30 days | |||
Warrant Activity [Abstract] | ||||
Warrants Exercised (in shares) | (2,742,000) | |||
Outstanding as of December 31, 2021 | 1,708,000 | 4,450,000 | ||
Warrants, fair value (in dollars per share) | $ / shares | $ 9.16 |
Public and Private Warrants - Fair Value (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Warrant Liability [Roll Forward] | ||
Fair value at Closing of the Merger | $ 64,127 | |
Change in fair value of warrants liabilities | 48,370 | $ 0 |
Warrants Exercised | (73,523) | |
Fair value at December 31, 2021 | 38,974 | 64,127 |
Public warrants liability | ||
Warrant Liability [Roll Forward] | ||
Fair value at Closing of the Merger | 38,984 | |
Change in fair value of warrants liabilities | 29,431 | |
Warrants Exercised | (45,086) | |
Fair value at December 31, 2021 | 23,329 | 38,984 |
Private warrants liability | ||
Warrant Liability [Roll Forward] | ||
Fair value at Closing of the Merger | 25,143 | |
Change in fair value of warrants liabilities | 18,939 | |
Warrants Exercised | (28,437) | |
Fair value at December 31, 2021 | $ 15,645 | $ 25,143 |
Contingent Earn-out Awards - Narrative (Details) $ / shares in Units, $ in Millions |
Feb. 01, 2022
shares
|
Jan. 18, 2022
event
shares
|
Jul. 22, 2021
USD ($)
Day
tranche
$ / shares
shares
|
---|---|---|---|
Reverse Recapitalization [Line Items] | |||
Earn-out (in shares) | 23,460,000 | ||
Number of tranches of earn-out shares | tranche | 6 | ||
Earn-out share release, number of trading days above trigger price | Day | 10 | ||
Earn-out share release, number of consecutive trading days in trigger period | Day | 30 | ||
Equity earn-out period start, number of days after Closing | Day | 180 | ||
Estimated fair value of total earn-out shares at Closing | $ | $ 294.8 | ||
Contingent earn-out liability | $ | $ 231.6 | ||
Subsequent Event | |||
Reverse Recapitalization [Line Items] | |||
Earn-outshares | 21,500,000 | 23,460,000 | |
Number of earnout triggers | event | 6 | ||
Weighted Average Share Price in Excess of $13.00 | |||
Reverse Recapitalization [Line Items] | |||
Earn-out (in shares) | 3,910,000 | ||
Earn-out period stock price trigger (in dollars per share) | $ / shares | $ 13.00 | ||
Weighted Average Share Price in Excess of $15.50 | |||
Reverse Recapitalization [Line Items] | |||
Earn-out (in shares) | 3,910,000 | ||
Earn-out period stock price trigger (in dollars per share) | $ / shares | $ 15.50 | ||
Weighted Average Share Price in Excess of $18.00 | |||
Reverse Recapitalization [Line Items] | |||
Earn-out (in shares) | 3,910,000 | ||
Earn-out period stock price trigger (in dollars per share) | $ / shares | $ 18.00 | ||
Weighted Average Share Price in Excess of $20.50 | |||
Reverse Recapitalization [Line Items] | |||
Earn-out (in shares) | 3,910,000 | ||
Earn-out period stock price trigger (in dollars per share) | $ / shares | $ 20.50 | ||
Weighted Average Share Price in Excess of $23.00 | |||
Reverse Recapitalization [Line Items] | |||
Earn-out (in shares) | 3,910,000 | ||
Earn-out period stock price trigger (in dollars per share) | $ / shares | $ 23.00 | ||
Weighted Average Share Price in Excess of $25.50 | |||
Reverse Recapitalization [Line Items] | |||
Earn-out (in shares) | 3,910,000 | ||
Earn-out period stock price trigger (in dollars per share) | $ / shares | $ 25.50 |
Contingent Earn-out Awards - Valuation Assumptions (Details) |
Dec. 31, 2021
yr
|
Jul. 22, 2021
yr
|
---|---|---|
Current stock price | ||
Reverse Recapitalization [Line Items] | ||
Derivative liability, measurement input | 20.64 | 14.47 |
Expected term (in years) | ||
Reverse Recapitalization [Line Items] | ||
Derivative liability, measurement input | 5.1 | 5.5 |
Expected volatility | ||
Reverse Recapitalization [Line Items] | ||
Derivative liability, measurement input | 67.0 | 51.5 |
Risk-free interest rate | ||
Reverse Recapitalization [Line Items] | ||
Derivative liability, measurement input | 1.3 | 0.8 |
Expected dividend yield | ||
Reverse Recapitalization [Line Items] | ||
Derivative liability, measurement input | 0 | 0 |
Contingent Earn-out Awards - Rollforward of Contingent Earn-out Liability (Details) $ in Thousands |
12 Months Ended |
---|---|
Dec. 31, 2021
USD ($)
| |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |
Balance at December 31, 2020 | $ 0 |
Contingent earn-out liability recognized upon the closing of the Merger | 231,627 |
Reallocation of Earn-out Shares to earn-out liability upon forfeitures | 5,495 |
Change in fair value of earn-out liability | 140,454 |
Balance at December 31, 2021 | $ 377,576 |
Stock Plan - Narrative (Details) $ in Thousands |
3 Months Ended | 12 Months Ended | ||||
---|---|---|---|---|---|---|
Feb. 01, 2022
shares
|
Jan. 18, 2022
event
shares
|
Jul. 22, 2021
USD ($)
shares
|
Dec. 31, 2021
USD ($)
shares
|
Dec. 31, 2021
USD ($)
purchasePeriod
shares
|
Dec. 31, 2020
USD ($)
shares
|
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Unrecognized stock-based expense related to unvested options | $ | $ 3,700 | $ 3,700 | ||||
Stock-based compensation expense | $ | $ 100,605 | $ 2,505 | ||||
Exercisable (in shares) | 29,351 | 29,351 | ||||
Granted (in shares) | 0 | 13,349 | ||||
Subsequent Event | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Earn-outshares | 21,500,000 | 23,460,000 | ||||
Number of earnout triggers | event | 6 | |||||
ISOs | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Unrecognized stock-based expense, period for recognition | 1 year 10 months 24 days | |||||
Modified PSOs | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Modified performance-based options outstanding (in shares) | 866,597 | 866,597 | ||||
Stock-based compensation expense | $ | $ 8,100 | |||||
Exercisable (in shares) | 866,597 | |||||
PRSUs | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Unrecognized stock-based expense, period for recognition | 1 year 9 months 18 days | |||||
Stock-based compensation expense | $ | $ 6,100 | |||||
Unrecognized stock-based expense, other than options | $ | $ 15,400 | $ 15,400 | ||||
PRSUs | Service-based Vesting | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period | 4 years | |||||
PRSUs | Service-based Cliff Vesting Period | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period | 1 year | |||||
RSUs | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Unrecognized stock-based expense, period for recognition | 3 years 7 months 6 days | |||||
Unrecognized stock-based expense, other than options | $ | 387,900 | $ 387,900 | ||||
Earn-out shares | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Unrecognized stock-based expense, other than options | $ | $ 28,000 | $ 28,000 | ||||
2011 Stock Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares available for grant under the plan (in shares) | 0 | 0 | ||||
2011 Stock Plan | ISOs | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares authorized under the plan (in shares) | 67,800,000 | 67,800,000 | ||||
2021 Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares available for grant under the plan (in shares) | 3,400,000 | 3,400,000 | ||||
2021 Plan | Common Class A | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares available for grant under the plan (in shares) | 24,200,000 | 24,200,000 | ||||
Shares available for grant under the plan, as percentage of shares outstanding at closing (percent) | 10.00% | 10.00% | ||||
Annual increase to shares available for grant under the plan as percentage of shares outstanding at prior year end (percent) | 5.00% | |||||
2021 Plan | ISOs | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares available for grant under the plan (in shares) | 181,500,000 | 181,500,000 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Assumed | 2,100,000 | 2,100,000 | ||||
2021 ESPP | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares available for grant under the plan (in shares) | 7,300,000 | 7,300,000 | 7,300,000 | |||
Shares available for grant under the plan, as percentage of shares outstanding at closing (percent) | 3.00% | 15.25% | 15.25% | |||
Annual increase to shares available for grant under the plan as percentage of shares outstanding at prior year end (percent) | 1.00% | |||||
Purchase price of common stock under the plan (percent) | 85.00% | |||||
Offering period length under the plan | 24 months | |||||
Maximum employee subscription rate as a percentage of eligible compensation under the plan (percent) | 15.00% | 15.00% | ||||
Maximum number of shares per employee (in shares) | 3,000 | |||||
Maximum employee contribution amount | $ | $ 25,000 | |||||
Number of purchase periods | purchasePeriod | 4 | |||||
Purchase period | 6 months | |||||
Shares purchased during the period (in shares) | 0 | |||||
Unrecognized stock-based expense, period for recognition | 1 year 4 months 24 days | |||||
Stock-based compensation expense | $ | $ 1,800 | |||||
Unrecognized stock-based expense, other than options | $ | $ 8,400 | $ 8,400 | ||||
2021 ESPP | ISOs | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares available for grant under the plan (in shares) | 36,900,000 |
Stock Plan - Stock Option Activities (Details) - USD ($) $ / shares in Units, $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
Dec. 31, 2019 |
|
Number of Shares | |||
Balance, beginning (in shares) | 49,206 | 48,762 | |
Granted (in shares) | 0 | 13,349 | |
Expired or canceled (in shares) | (2,907) | (5,612) | |
Exercised (in shares) | (4,072) | (7,293) | |
Balance, ending (in shares) | 42,227 | 49,206 | 48,762 |
Exercisable (in shares) | 29,351 | ||
Weighted- Average Exercise Price Per Share | |||
Beginning balance (in dollars per share) | $ 0.62 | $ 0.50 | |
Granted ($ per share) | 0.81 | ||
Exercised (in dollars per share) | 0.51 | 0.21 | |
Expired or canceled (in dollars per share) | 0.69 | 0.54 | |
Exercisable (in dollars per share) | 0.58 | ||
Ending Balance (in dollars per share) | $ 0.63 | $ 0.62 | $ 0.50 |
Options outstanding, weighted-average remaining contractual term (in years) | 6 days 21 hours | 8 days 2 hours | 8 days 2 hours |
Options exercisable, weighted-average remaining contractual term (in years) | 6 days 12 hours | ||
Options outstanding, aggregate intrinsic value | $ 844,909 | $ 245,565 | $ 7,698 |
Options exercised, aggregate intrinsic value | 48,660 | ||
Options exercisable, aggregate intrinsic value | $ 588,842 |
Stock Plan - RSU and PRSU Activities (Details) - RSUs and PRSUs |
12 Months Ended |
---|---|
Dec. 31, 2021
$ / shares
shares
| |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | |
Beginning balance (in shares) | shares | 0 |
Granted (in shares) | shares | 27,036 |
Vested (in shares) | shares | (1,474) |
Canceled or forfeited (in shares) | shares | (818) |
Ending balance (in shares) | shares | 24,744 |
Weighted-Average Grant Date Fair Value | |
Outstanding, beginning, weighted-average grant date fair value (in dollars per share) | $ / shares | $ 0 |
Granted (in dollars per share) | $ / shares | 17.47 |
Vested (in dollars per share) | $ / shares | 17.31 |
Canceled or forfeited (in dollars per share) | $ / shares | 10.54 |
Outstanding, ending, weighted-average grant date fair value (in dollars per share) | $ / shares | $ 17.70 |
Stock Plan - Earn-out Shares Activity (Details) - Earn-out shares - $ / shares |
12 Months Ended | |
---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | ||
Beginning balance (in shares) | 0 | |
Granted (in shares) | 5,112 | |
forfeited (in shares) | (412) | |
Ending balance (in shares) | 4,700 | |
Weighted-Average Grant Date Fair Value | ||
Outstanding, weighted-average grant date fair value (in dollars per share) | $ 12.64 | $ 0 |
Granted (in dollars per share) | 12.63 | |
Forfeited (in dollars per share) | $ 12.58 |
Stock Plan - Fair Value Assumptions, Options and Earn-out Shares (Details) |
12 Months Ended |
---|---|
Dec. 31, 2021
$ / shares
| |
Common stock options outstanding | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected volatility, minimum (percent) | 38.50% |
Expected volatility, maximum (percent) | 44.90% |
Risk-free interest rate, minimum (percent) | 0.30% |
Risk-free interest rate, maximum (percent) | 1.50% |
Expected dividend yield (percent) | 0.00% |
Common stock options outstanding | Minimum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected term | 5 years 6 months |
Common stock options outstanding | Maximum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected term | 6 years 1 month 6 days |
Earn-out shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected volatility, minimum (percent) | 40.00% |
Expected volatility, maximum (percent) | 67.00% |
Risk-free interest rate, minimum (percent) | 0.80% |
Risk-free interest rate, maximum (percent) | 1.30% |
Expected dividend yield (percent) | 0.00% |
Grant-date fair value per share (in dollars per share) | $ 12.63 |
Earn-out shares | Minimum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Current stock price (in dollars per share) | $ 13.93 |
Expected term | 5 years 1 month 6 days |
Earn-out shares | Maximum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Current stock price (in dollars per share) | $ 27.86 |
Expected term | 5 years 6 months |
Employee Stock Purchase Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected volatility, minimum (percent) | 27.90% |
Expected volatility, maximum (percent) | 43.40% |
Risk-free interest rate, minimum (percent) | 0.10% |
Risk-free interest rate, maximum (percent) | 0.60% |
Expected dividend yield (percent) | 0.00% |
Employee Stock Purchase Plan | Minimum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected term | 6 months |
Grant-date fair value per share (in dollars per share) | $ 7.59 |
Employee Stock Purchase Plan | Maximum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected term | 2 years |
Grant-date fair value per share (in dollars per share) | $ 14.36 |
Stock Plan - Stock-based Compensation (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock-based compensation, net of amounts capitalized | $ 100,605 | $ 2,505 |
Capitalized stock-based compensation | 3,632 | 146 |
Total stock-based compensation | 104,237 | 2,651 |
Costs of revenue | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock-based compensation, net of amounts capitalized | 3,083 | 135 |
Research and development | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock-based compensation, net of amounts capitalized | 25,691 | 624 |
Selling, general, and administrative | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock-based compensation, net of amounts capitalized | $ 71,831 | $ 1,746 |
Income Taxes - Schedule of Loss before Income Tax (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Income Tax Disclosure [Abstract] | ||
United States | $ (339,094) | $ (14,294) |
Foreign | 817 | 350 |
Loss before provision (benefit) for income taxes | $ (338,277) | $ (13,944) |
Income Taxes - Current and Deferred Income Taxes (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Current | ||
State | $ 22 | $ 8 |
International | 146 | 69 |
Total current tax expense | 168 | 77 |
United States | 0 | 0 |
International | (385) | 0 |
Total deferred tax expense | (385) | 0 |
Total tax expense | $ (217) | $ 77 |
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands |
Dec. 31, 2021 |
Dec. 31, 2020 |
---|---|---|
Deferred tax assets: | ||
Net operating loss carryforwards | $ 41,555 | $ 29,734 |
Research and development credits carryforward | 6,858 | 5,009 |
Accruals | 317 | 988 |
Other | 348 | 62 |
Interest expense carryforward | 562 | 566 |
Fixed assets | 112 | 128 |
Stock-based compensation | 10,580 | 604 |
Total deferred tax assets | 60,332 | 37,091 |
Less: valuation allowance | (56,344) | (35,023) |
Deferred tax liabilities: | ||
Intangibles | (3,214) | (1,876) |
Deferred commissions | (389) | (192) |
Total deferred tax liabilities | (3,603) | (2,068) |
Net deferred tax assets | $ 385 | $ 0 |
Income Taxes - Schedule of Valuation Allowance Deferred Tax Assets (Details) - Valuation allowance for deferred tax assets - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
|
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | ||
Balance at beginning of period | $ 35,023 | $ 31,081 |
Additions charges to costs and expenses | 21,321 | 3,942 |
Write-offs and deductions | 0 | 0 |
Balance at end of period | $ 56,344 | $ 35,023 |
Income Taxes - Net Operating Loss Credit Carryforwards (Details) $ in Thousands |
12 Months Ended |
---|---|
Dec. 31, 2021
USD ($)
| |
Domestic Tax Authority | |
Tax Credit Carryforward [Line Items] | |
Operating loss carryforwards | $ 169,400 |
Tax credit carryforward amount | $ 7,378 |
Tax credit carryforward expiration date | Dec. 31, 2032 |
State and Local Jurisdiction | |
Tax Credit Carryforward [Line Items] | |
Operating loss carryforwards | $ 89,392 |
Operating loss carryforwards expiration date | Dec. 31, 2032 |
Tax credit carryforward amount | $ 5,130 |
Post December 31, 2017 | Domestic Tax Authority | |
Tax Credit Carryforward [Line Items] | |
Operating loss carryforwards | 108,007 |
Pre January 1, 2018 | Domestic Tax Authority | |
Tax Credit Carryforward [Line Items] | |
Operating loss carryforwards | $ 61,397 |
Operating loss carryforwards expiration date | Dec. 31, 2031 |
Income Taxes - Effective Income Tax Rate (Details) |
12 Months Ended | |
---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Income Tax Disclosure [Abstract] | ||
Statutory federal income benefit rate | 21.00% | 21.00% |
State income tax rate | 1.10% | 7.00% |
Change in valuation allowance | (6.30%) | (28.30%) |
Research and development credits | 0.30% | 2.90% |
Other | (4.20%) | (0.80%) |
Convertible notes — nondeductible | 0.00% | (1.60%) |
Stock-based compensation | (0.20%) | (0.90%) |
Change in fair value of contingent earn-out liability | (8.70%) | 0.00% |
Change in fair value of warrants liabilities | (3.00%) | 0.00% |
Foreign rate differential | 0.10% | 0.00% |
Effective tax rate | 0.10% | (0.60%) |
Income Taxes - Narrative (Details) |
12 Months Ended |
---|---|
Dec. 31, 2021
USD ($)
| |
Tax Credit Carryforward [Line Items] | |
Operating loss carryforwards, expiring beginning 2031 | $ 61,400,000 |
Operating loss carryforwards with indefinite life | 108,000,000.0 |
Valuation allowance released in current period | 0 |
Federal | |
Tax Credit Carryforward [Line Items] | |
Operating loss carryforwards | 169,400,000 |
State | |
Tax Credit Carryforward [Line Items] | |
Operating loss carryforwards | $ 89,392,000 |
Income Taxes - Schedule of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Unrecognized tax benefits — beginning | $ 3,662 | $ 2,906 |
Gross Increases — prior-year unrecognized tax benefits | 0 | 0 |
Gross Increases — current-year unrecognized tax benefits | 1,341 | 756 |
Unrecognized tax benefits — ending | $ 5,003 | $ 3,662 |
Net Loss Per Share Attributable To Common Stockholders (Details) $ / shares in Units, shares in Thousands, $ in Thousands |
12 Months Ended | |||
---|---|---|---|---|
Dec. 31, 2021
USD ($)
$ / shares
shares
|
Dec. 31, 2020
USD ($)
$ / shares
shares
|
Jul. 22, 2021 |
Jul. 21, 2021 |
|
Earnings Per Share [Abstract] | ||||
Recapitalization exchange ratio | 4.1193 | 4.1193 | ||
Numerator : | ||||
Net loss attributable to common stockholders, basic | $ | $ 338,060 | $ 14,021 | ||
Net loss available to common stockholders, diluted | $ | $ 338,060 | $ 14,021 | ||
Denominator: | ||||
Weighted average shares used in computing net loss per share attributable to common stockholders, basic (in shares) | shares | 131,278 | 32,841 | ||
Weighted average shares used in computing net loss per share attributable to common stockholders, diluted (in shares) | shares | 131,278 | 32,841 | ||
Net loss attributable to common stockholders, basic (in dollars per share) | $ / shares | $ 2.58 | $ 0.43 | ||
Net loss attributable to common stockholders, diluted (in dollars per share) | $ / shares | $ 2.58 | $ 0.43 |
Net Loss Per Share Attributable To Common Stockholders - Antidilutive Securities (Details) - shares shares in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total potentially dilutive common stock equivalents | 95,397 | 176,696 |
Public and private warrants | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total potentially dilutive common stock equivalents | 4,260 | 0 |
Earn-out shares | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total potentially dilutive common stock equivalents | 23,460 | 0 |
Redeemable convertible preferred stock, all series | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total potentially dilutive common stock equivalents | 0 | 126,409 |
Warrants to purchase common stock | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total potentially dilutive common stock equivalents | 0 | 1,081 |
Common stock options outstanding | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total potentially dilutive common stock equivalents | 42,227 | 49,206 |
Unvested RSUs | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total potentially dilutive common stock equivalents | 24,744 | 0 |
ESPP Shares | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total potentially dilutive common stock equivalents | 706 | 0 |
Related Party Transactions (Details) - 2020 Notes - Convertible Notes $ in Thousands |
3 Months Ended |
---|---|
Mar. 31, 2020
USD ($)
| |
Related Party Transaction [Line Items] | |
Proceeds from issuance of convertible notes | $ 8,500 |
Stated interest rate (percent) | 5.00% |
Affiliated Entity | |
Related Party Transaction [Line Items] | |
Proceeds from issuance of convertible notes | $ 8,500 |
Stated interest rate (percent) | 5.00% |
DCM VI, L.P. | Affiliated Entity | |
Related Party Transaction [Line Items] | |
Proceeds from issuance of convertible notes | $ 400,000 |
Lux Co-Invest Opportunities, L.P. | Affiliated Entity | |
Related Party Transaction [Line Items] | |
Proceeds from issuance of convertible notes | 2,000 |
QUALCOMM Ventures LLC | Affiliated Entity | |
Related Party Transaction [Line Items] | |
Proceeds from issuance of convertible notes | $ 1,000,000 |
Employee Benefit Plans (Details) - USD ($) $ in Millions |
12 Months Ended | |
---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
|
United States | Other Postretirement Benefits Plan | ||
Defined Contribution Plan Disclosure [Line Items] | ||
Discretionary matching contribution | $ 0.2 | |
United Kingdom | Pension Plan | ||
Defined Contribution Plan Disclosure [Line Items] | ||
Discretionary matching contribution | $ 0.3 | $ 0.2 |
Subsequent Events (Details) $ / shares in Units, $ in Thousands |
12 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|
Feb. 01, 2022
shares
|
Jan. 18, 2022
event
shares
|
Jan. 14, 2022
USD ($)
$ / shares
shares
|
Jan. 05, 2022
USD ($)
$ / shares
|
Dec. 31, 2021
USD ($)
$ / shares
shares
|
Dec. 31, 2020
USD ($)
$ / shares
|
Jan. 31, 2022
$ / shares
|
Jul. 22, 2021
$ / shares
shares
|
Jul. 21, 2021
$ / shares
|
|
Subsequent Event [Line Items] | |||||||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.0001 | $ 0.0001 | $ 0.0001 | $ 0.001 | |||||
Warrant, exercise price (in dollars per share) | $ / shares | $ 11.50 | ||||||||
Proceeds from exercise of warrants | $ | $ 76,607 | $ 0 | |||||||
Unexercised and outstanding warrants (in shares) | 4,260,000 | 11,350,000 | |||||||
Earn-out shares | |||||||||
Subsequent Event [Line Items] | |||||||||
Unrecognized stock-based expense, other than options | $ | $ 28,000 | ||||||||
Public and private warrants | |||||||||
Subsequent Event [Line Items] | |||||||||
Shares issued upon exercise of warrants (in shares) | 7,100,000 | ||||||||
Proceeds from exercise of warrants | $ | $ 76,600 | ||||||||
Subsequent Event | |||||||||
Subsequent Event [Line Items] | |||||||||
Number of earnout triggers | event | 6 | ||||||||
Earn-outshares | 21,500,000 | 23,460,000 | |||||||
Subsequent Event | Enview, Inc. | |||||||||
Subsequent Event [Line Items] | |||||||||
Cash paid for acquisition | $ | $ 35,500 | ||||||||
Lock up period expirations | 180 days | ||||||||
Subsequent Event | Public and private warrants | |||||||||
Subsequent Event [Line Items] | |||||||||
Shares issued upon exercise of warrants (in shares) | 9,100,000 | ||||||||
Warrant, exercise price (in dollars per share) | $ / shares | $ 11.50 | ||||||||
Proceeds from exercise of warrants | $ | $ 104,500 | ||||||||
Unexercised and outstanding warrants (in shares) | 600,000 | ||||||||
Redemption price per warrant (in dollars per share) | $ / shares | $ 0.01 | ||||||||
Subsequent Event | Private warrants | |||||||||
Subsequent Event [Line Items] | |||||||||
Unexercised and outstanding warrants (in shares) | 1,700,000 | ||||||||
Exercised warrants outstanding (in shares) | 2,800,000 | ||||||||
Subsequent Event | Common Class A | Enview, Inc. | |||||||||
Subsequent Event [Line Items] | |||||||||
Equity issued in acquisition (in shares) | $ | $ 1,600 | ||||||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.0001 |
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