Q2 2021 Matterport Inc Earnings Call
[music].
Okay.
Thank you for standing by and welcome to the matter for second quarter 2021 earnings Conference call. At this time, all participants are in a listen only mode.
After the Speakers' presentation there'll be a question and answer session to ask a question at that time. Please press Star then one when you touch tone telephone.
As a reminder, today's conference call is being recorded.
I will now turn the call to your host do want Kim.
Vice President of Investor Relations.
It again.
Thank you before we begin I would like to remind you that today's call contains forward looking statements with meeting Ocado securities laws, including but not limited to statements regarding <unk> future financial results and management's expectations and plans for the business.
These forward looking statements are subject to numerous risks and uncertainties that may cause actual results to differ materially from those discussed on today's calls.
Additional information regarding the risks and uncertainties that could cause actual results differ from forward looking statements can be found in our filings with the SEC any forward looking statements made on this call including responses to your questions speak only as of today and Madhepura assumes no obligation to update or revise them, whether as a result of new developments or otherwise except as required by law.
In addition, todays call may include discussion of non-GAAP financial measures. These measures should be considered as a supplement to and not a substitute for GAAP financial measures reconciliation of each of these non-GAAP financial measures to most directly comparable GAAP measure can be found in today's earnings press release, which is available on the Companys website hosting todays call are RJ Pittman.
Chairman and Chief Executive Officer of Mad reported J D Fay Chief Financial Officer.
Now I would like to turn it over to RJ to begin.
Thanks, Juan good afternoon, everyone and thank you for joining us today I'm very excited to share our second quarter financial results with you. This was another record quarter for matter port as our subscriber base grew to over 400000.
And we delivered $30 million in total revenue up 10% sequentially from the March quarter.
J D. Fay will discuss our strong second quarter financial results in more detail a bit later.
I'm delighted to be joining you today on our first earnings call as a public company, we began trading on the NASDAQ under the symbol <unk> on July 23rd.
This transaction generated $640 million in gross proceeds to fuel our sizeable ambitions to digitize the built world.
This is a long term opportunity and we believe we are well positioned to seize it.
Starting in Q3, we began investing the proceeds to capture the market opportunity for years to come.
We remain focused on the long term for matter Port and this has served us well as the market for Digitization of the built world continues to expand.
As a public company, we will continue to invest in the future by laying the foundation for the next stage of growth across our platform.
Since this is our first earnings call as a public company I'd like to provide a brief overview of matter port and the market opportunity ahead.
Founded in 2011 matter Port has been digitizing that built world for a decade.
It began with our market, leading <unk> platform that lets anyone turn of physical space into an immersive digital twin we.
We have been relentlessly perfecting our craft to create the most detailed accurate and data rich digital twins in the industry.
Our three D. Reconstruction process is fully automated powered by advanced computer vision, and artificial intelligence, allowing our solution to scale with equal precision to hundreds of millions of buildings and spaces of any kind anywhere in the world.
Matter Port digital twins are captured from any compatible camera.
From sophisticated three D imaging equipment, such as a matter of ports groundbreaking pro two camera to the smartphone in your pocket.
Our customer base has grown to over 400000 subscribers digitizing spaces in more than 150 countries and growing.
We call each digital twin captured by our customers our space.
And our total spaces under management or some as we refer to it has increased to $5.6 million up over 75% from a year ago.
We have digitized more than 15 billion square feet of space across multiple industries.
Homes offices museums and schools to factories hospitals and retail stores.
Our total addressable market is enormous retail is the largest asset class in the world with an estimated value of 230 trillion dollars.
This is more than three times the value of all global equities combined.
With an estimated 4 billion buildings worldwide. The built world is the largest undistracted market with less than 1% digitized today.
Within many of the 4 billion buildings, there are multiple unique spaces to digitize, yielding as many as 20 billion total spaces to capture.
We believe the total addressable market opportunity for digitizing the built world has over $240 billion.
With first mover and first scalar advantages matter pork is poised to define this vast market for years to come.
With the help of artificial intelligence machine learning and deep learning technologies, we believe additional growth opportunities are available to us as we continue to unlock powerful spatial data driven property insights and analytics.
This increases the total addressable market for Digitization and data vacation of the built world to more than one trillion dollars.
Our software provides customers with critical tools and insights to drive material ROI improvements across every aspect of the building lifecycle, including design build operate remodel and repair.
Our platform and data solutions, our universal across industries and building types, giving matter poured a significant advantage as we scale into this huge market to help increase the value of the largest asset class in the world.
The matter of Port spatial data platform delivers value across a diverse set of industries and use cases.
Large retailers can manage thousands of store locations remotely.
Real estate agencies can provide virtual open houses for hundreds of properties and thousands of visitors at the same time.
And property developers and insurance companies can more precisely documents.
And assess building integrity and the construction process every step of the way with greater speed efficiency and precision.
Matter of ports value proposition deliver significant time and cost savings for our customers, while providing the data insights they need to manage their spaces more effectively.
Here are two examples.
First in real estate, we work at the top residential and commercial real estate companies in the business.
Large residential real estate customers like redfin compass apartments, Dot com and Keller Williams use matter port to dramatically increase engagement attract more prospects and close business online without time consuming physical site visits.
Research shows that homes with three D digital twin sell 30% faster and realize up to 9% higher price compared to homes without digital twins Sim.
Similarly in commercial real estate companies like J L L and cushman and Wakefield excuse matter port to digitize thousands of buildings globally by taking these assets online our platform enables these customers to manage their global portfolio anywhere on any device.
Cushman and Wakefield has increased its bookings with us by 26 times over two years as they were able to prove out tremendous hard dollar cost savings.
Second.
Global Telecom leaders like Ericsson, Verizon and AT&T are leveraging matter part to manage construction and scale facilities management of their vast telecom locations globally.
As you can imagine the time expense and carbon emissions of travel to manage and develop tens of thousands of structures worldwide is very costly.
With a strategic partner, we have integrated matter port into Ericsson's enterprise systems to speed up the upgrade and rollout of five G cell sites worldwide, while improving the efficiency of large scale facilities management we.
We have grown this business by more than 60% in the past year with much more to accomplish.
We believe we can continue to grow the company by executing on our well established go to market playbook I'd like to briefly walk you through our four vectors of growth.
First scale, our enterprise business across industry verticals.
Matter of Port will continue to drive customer growth by expanding use cases, and introducing new applications. We are particularly focused on acquiring and retaining enterprise customers with our massive spatial data library and pioneering AI powered capabilities.
Pride ourselves on our ability to deliver value across the property lifecycle for a wide range of industries. This includes real estate architecture engineering, and construction travel and hospitality insurance industrial retail and facilities.
I'll also increased investments in industry specific sales and marketing initiatives to increase sales efficiency and drive customer growth and recurring revenue growth in our enterprise customer segment.
Second accelerate our international expansion.
The majority of the world's buildings are located outside of the United States and we foresee massive opportunities in pursuing the digitization and data vacation of the building stock worldwide.
Well, we already serve customers in more than a 150 countries. We will seek to further penetrate these existing geographies in order to add their unique spatial data to our platform as more customers are acquired and more use cases adopted.
This creates a powerful network effect that will allow us to expand further into the underpenetrated countries and unlock additional properties in spaces.
Third increase our investment in research and development, we will continue to invest in R&D to improve our core AI technology and data science expand our solutions portfolio and support seamless integration of our platform with third party systems.
We have a robust pipeline of new product releases and development for the foreseeable future.
A little over a year ago, we launched matter port for iPhone, making matter port accessible to hundreds of millions of people Andy.
Anyone with an iPhone can download the free app to capture and collaborate on three of these spaces.
Matter port for iPhone help fuel, our subscriber growth over tenfold and less than one year in the market.
And just as Apple announced its new iPad and iPhone with Lidar, We released a new version of matter Port that takes advantage of apples new depth sensor to increase the fidelity and accuracy of our digital twins.
We also launched a strategic initiative to develop an offering for the other 85% of the world's smartphones that run the Android operating system and not surprisingly our customers have been asking for this too.
We listened and we recently launched the matter port capture App for Android, making our technology available to billions of Android users and significantly reducing their cost of ownership.
This release for Android dramatically expands our market reach and has the power to accelerate our international expansion efforts across Asia Pacific Europe, The Middle East and Africa, where Android market share is especially concentrated.
We see significant potential for future customer growth as we release more products and create additional upselling opportunities.
Our final growth vector is focused on expanding partner integrations and our third party developer ecosystem we.
We are fostering a strong network of partners and developers for the matter Port technology platform.
Built on top of our open scalable and secure enterprise platform organizations across numerous industries have been automating project workflows, enhancing customer experiences and creating customer applications for high value vertical use cases.
We have recently announced some exciting partnerships and I'd like to spend a few minutes highlighting three of them PTC Facebook and apex.
Starting with PTC, we announced the platform integration with their view for you augmented reality software offerings. As you May know PTC is a global software leader, enabling industrial companies to digitally transform product and service creation.
Our joint solution will give P. T C customers, a highly visual and interactive way to deliver digital content onto the environment's captured by the matter Port platform.
Our solution is commercially available through both PTC sales channels as well as a matter of port direct sales channels.
PTC will send us leads or their customers will come to us for their API key when they want to activate area targeting which is a feature inside euphoria that we enabled.
Moving on to Facebook, we announced a collaboration with Facebook AI research through which we made the largest ever dataset of three D indoor spaces available exclusively for academic noncommercial uses.
Home robots, and AI assistance need to be trained on actual spaces to get better and this rich spatial dataset has been glaringly absent before matter port.
I believe this collaboration validates the unique data that we have in our data set continues to improve as our customers digitize more spaces.
And finally, we announced our partnership with apex, a leading provider of digital store surveys to enable retail brands across the U S and Canada to capture organize and evaluate building data and information from all of their stores in one place.
Apex has an impressive client roster, including household brand names like Starbucks C. D S home depot 711 and Chipotle.
Working together with matter port in apex retail and restaurant brands can do full audit of our space essentially turning imagery into structured data for usage analysis.
Through object recognition building characteristics will become searchable for better facilities management across a fleet of locations.
Similar to PTC, we have a joint go to market motion with apex.
These are just three examples to demonstrate matter ports strength as the spatial data platform of choice, we are rapidly expanding our developer and partner ecosystem with more announcements forthcoming.
Matter part has a unique business, leading the digital transformation of an entire industry. We believe the growth opportunity ahead will be measured in years and decades to be captured through our proprietary technology thoughtful execution and bold leadership.
Quarter to quarter, we expect the market to be very dynamic as the industry evolves and the transformation takes hold.
I will now turn it over to J D, who will talk about the strength of our business model and financial performance for the second quarter.
Thank you RJ Q2 was another record quarter for matter Port I am excited to share our quarterly financial results today.
Before I dive into detailed financials I would like to highlight the strength of our subscription based business model and performance metrics.
We have the largest subscriber base in our industry with over 400000 subscribers on our platform at the end of Q2.
This is up an incredible 158% from the end of Q2.2020.
A key driver of this growth is our freemium flywheel.
Our freemium flywheel approach includes both free and paid subscriptions to the matter port platform the.
The free plan is an important part of our business model as it provides subscribers away to try matter port using any compatible device, including the smartphone in their pocket for free.
Many of these subscribers trade up to paid plans over time on their own or by connecting with our sales team to form an enterprise level relationships.
Our strategy for flexibly, enabling customers to join our platform has resulted in a highly efficient subscriber acquisition model, yielding long term sticky customer relationships.
In addition to strong year over year subscriber growth. Our subscribers are also increasing their spend with us at a healthy rate.
Our net dollar expansion rate was 132% in Q2, a record up from what was then a record 129% in Q1.
We calculate this metric on a quarterly basis by comparing the aggregate subscription revenue attributable to a subscriber cohort.
For the year ago period to the aggregate subscription revenue attributable to that same cohort and the most recent quarter.
Historically, our net dollar expansion rate has been above 110%, which we see as an attractive level. While this metric may fluctuate from quarter to quarter. We expect this metric will remain attractive as customers continued to digitize additional spaces in their portfolios and expand their use cases for matter Port <unk>.
D Digital twins.
I will now discuss our Q2 financial results in more detail.
Total revenue was a record $29.5 million up 21% from Q2 last year.
This was in line with our internal forecasts.
This growth was on top of one of the company's all time best quarters last year when revenue increased 117% over Q2.2019.
During the early days of the Covid pandemic in the U S. In 2020, we saw rapid adoption of matter Port digital twins, particularly in residential real estate and which we believe accelerated the digital transformation of real estate by several years.
That trend continued in 2020 through the summer and Q3.
Thus Q3 will be another tough year over year comparison quarter.
But we expect to start to normalize year over year comparisons beginning with Q4.
The majority of our revenue was comprised of recurring subscription revenue and license revenue.
Subscription revenue was up 53% from a year ago to $15.3 million and represented 52% of total revenue in the second quarter.
In addition license revenue was $2.1 million.
As we continue to drive sales of our data licensing products.
Note that license revenue can be very lumpy from quarter to quarter, depending on the timing of completed transactions and any associated implementation work that we must perform to recognize revenue.
Our annual recurring revenue run rate of subscription revenue or <unk> was $61.1 million.
Importantly, our <unk> provides us visibility into approximately 90% of subscription revenue for the balance of 2021.
While the majority of our revenue is derived from subscriptions and licenses. We also have a services business and the product business.
Both of these businesses are designed to accelerate the speed at which customers come onto our platform as new subscribers.
Starting with services, our services revenue was $2.9 million up 29% year on year.
We provide a variety of services, including in App purchases and capture services.
In App purchases provide our customers additional digital assets further spaces.
Such a schematic floor plans or true plan in the insurance industry.
Matter of Port capture services, as an offering by which enterprise customers hire us to subcontract the capture of their spaces and high volume, enabling them to get onto our platform more quickly and at scale.
We also recently expanded capture services on demand extending our offerings to more small businesses real estate agents and consumers.
We offer capture services around the world by leveraging our large network of service partners.
Taken together capture services revenue is a leading indicator for future subscription revenue growth.
Our product revenue was $9.2 million up 13% from the first quarter of this year and compares to $12.1 million in the second quarter of 2020.
Product revenue primarily comes from the sales of our high precision <unk> spatial data camera called the matter Port Pro two.
We saw tremendous demand for the pro two camera last year during the early days of the Covid pandemic in the U S.
Since then our capture ubiquity strategy has provided more options for customers seeking to capture matter port spaces.
And along with expanding our production capabilities provided relief to the supply chain in late 2020.
For example in May of 2020, we launched matter port for iPhone, which allowed everyone to use the phone in their pocket to create digital twins, leading to a dramatic increase in our subscriber growth.
In addition to the pro two camera and the iPhone customers can also create matter port <unk> digital twins using a number of third party cameras, such as inexpensive 360 degree cameras and the Lidar camera.
Our capture services initiative has also provided customers a way to create an out of port spaces without purchasing a camera at all as customers can now rely on our service partners to create digital twins on their behalf.
Moving onto our gross margin our total gross margin for the second quarter was 60% up 740 basis points from a year ago.
In addition, our subscription gross margin was 78% of 690 basis points from a year ago.
We expect subscription gross margin to vary by 100 to 200 basis points from quarter to quarter as we invest in additional research and development activities.
R&D expense relating to the development of our subscription platform is capitalized and then amortized in the subscription cost of goods sold line typically over three years.
Further as we expand our customer success support function in anticipation of future subscriber growth those costs are recognized in the subscription cost of goods sold line as well.
Reviewing operating expenses in Q2 research and development expenses were $7.1 million up 56%.
From $4.5 million in the prior year period per our existing plans to scale.
The growth in spending is primarily attributable to investments in head count to increase our product development capabilities and throughput.
SG&A expenses were $16.1 million as compared to $10.5 million a year ago.
We continue to invest in our sales and marketing head count and programs to drive further growth.
We have also added head count and other capabilities in our G&A organization in preparation for public company operations.
Operating loss was $5.8 million in the second quarter as we expected compared to a loss of $2.2 million in the year ago period.
We have a capital efficient business model and have demonstrated in prior periods that we can run our business on a cash flow breakeven basis.
And notwithstanding these attributes and given the massive market opportunity available to us.
We plan to increase our investments to continue to drive rapid growth.
Net loss was $6.2 million and diluted EPS was <unk> 62 cent loss for the quarter using the pre merger share count of roughly 10 million shares.
Moving on to our balance sheet, we ended the quarter with $42 million in cash and equivalents.
Since the end of the second quarter, we closed the merger with Gores holdings, six and added $640 million before transaction expenses onto our balance sheet.
With the additional capital raise in putting that capital to work. We believe we can accelerate our growth both organically and inorganically over time.
We have already put some of the cash to work by identifying companies that are building upon and expanding the matter port platform.
And investing in the company Sim lab.
<unk> is an innovative European company that specializes in the digitization of buildings throughout the design and construction phases.
We saw an opportunity to accelerate growth for the whole <unk> industry taken advantage of our new financial firepower to invest for a result that is one plus one equals 10.
Now turning to our outlook, we are focused on realizing the opportunity to digitize and index the built world.
This is a multi year effort and we are focused on effective capital allocation to put the internal capabilities and infrastructure in place to drive significant growth for the business and deliver lasting magical product experiences for our customers around the globe.
Additionally, this quarter, we are beginning our life as a public company.
Taken together, we are now introducing revenue guidance for the company, which will be provided as a range.
This range is intended to express the set of anticipated outcomes for revenue for the period indicated.
While we know we are building something unique and that there may be volatility in our results in the short term our.
Our intention is to share with you how we believe we are doing on this mission.
Opportunities and risks, we foresee along the way.
And achieving a high say do ratio relative to our stated goals.
Accordingly, starting with revenue.
We are today, introducing a range for our expectation for the full year 2021, total revenue, which is $120 million to $126 million.
This compares to 2020 revenue of $86 million in 2019 revenue of $46 million.
One element to highlight again as we have said in past conference calls.
Is that our license revenue can be lumpy.
This is because these transactions are typically larger bespoke transactions that require a longer lead time to cultivate and then deploy.
During the third quarter, we are in the defined and implementation phases of several such license transactions.
Accordingly, we may not recognize license revenue in the third quarter, but would expect to do so in the fourth quarter.
Moving to earnings per share, we expect non-GAAP EPS to be in the range of 17% to 25% loss.
This assumes a share count of approximately 204 million shares.
Just on an estimate of weighted average shares.
The share count could change based on warrant and stock option exercise activity.
And please refer to our second quarter Investor presentation on our website for more information about the share count.
In sum I am very pleased with our second quarter financial performance and notwithstanding this record performance in Q2, we have only scratched the surface in our mission to digitally transform the built world.
Now I would like to turn the call back over to RJ.
Thank you JD.
[noise] matter Port is a once in a decade company with extraordinary potential to revolutionize the way the world's largest asset class is created managed and valued over its lifetime.
Our second quarter results Mark another milestone for our company as we drive acceleration across our business and create tremendous growth opportunities for our customers partners and our employees.
Matter of poor created this category for the World and we are the market leader.
In many respects, we're just getting started and we believe our best years are still to come.
We can't wait to get started on this next stage of growth for matter part and our next decade of innovation. We welcome you all to this exciting journey ahead.
Before I turn the call over to the operator for questions I would like to highlight a great customer video we have at the end of our quarterly investor presentation on our website.
I would encourage everyone to take a couple of minutes to watch the video.
<unk> is a large commercial construction company headquartered in San Francisco with 4000 employees in.
In the video Swinnerton explains how matter port is a true game changer for its operations and the construction industry at large and we couldn't agree more.
Operator, we are now ready for questions.
Thank you again, ladies and gentlemen, if you like to ask a question. Please press Star then one on your touch tone telephone again to ask a question Star then one one moment for our first question.
Our first question comes from Dan Ives with Wedbush. Your line is open.
Yes. Thanks.
And congrats.
Coming out of the gate can you just walk me through what you think the biggest areas of incremental monetization.
The customer base are over the next 12 to 18 months.
Sure. Thanks, Dan.
So a couple of things just.
To reiterate.
One.
From a growth perspective.
Really.
Encouraging to see the continued acceleration in the key metrics of this business number one.
Total subscriber growth up 158% year on year.
Our subscription revenue up 53% year on year.
And more importantly to your question net dollar expansion hitting a record of 132%.
Is a strong testament to.
Our existing customers continue to invest and expand their business with us over time, you know we've been at this.
For a number of years now over a decade and to see that kind of expansion continuing.
Continuing to accelerate and increase quarter over quarter.
Is really remarkable and I think thats, what setting us up for tremendous.
Growth in the next decade ahead.
Couple of areas to focus in on.
Where we're seeing tremendous momentum is first in the enterprise.
This is Ben.
The fastest growing category for matter port over the last year I see it being.
Continuing for a quite a bit of time into the future.
For a couple of reasons, but.
First and foremost the enterprise represents an enormous swath building square footage and these facilities all have different reason it needs to be managed more efficiently and matter port is penetrating this market opportunity with with great scale.
And so each enterprise company represents perhaps not just one building or one home or one individual property from which we can monetize but typically fleets of hundreds or thousands or even tens of thousands of physical locations.
So that gives us also a tremendous leverage in.
And great revenue growth efficiency.
The second one is international expansion.
As mentioned, we have matter ported buildings at over 150 countries around the world, but we're by no means fully penetrated in those markets.
Some countries alone.
Such as India that have over 3 billion spaces.
Can be monetized and we're just scratching the surface in Asia Pacific.
We have more headway.
In our European locations.
But even in that region, just enormous growth opportunities.
And part of the way that we're going to accelerate that growth in the international theater is leveraging the freemium flywheel that J D talked about and that flywheel has also not yet even gotten to full strength.
With Android joining the mix for smartphone capture later this quarter.
In doing so we basically will have.
The vast majority of the smartphone platforms compatible with matter Port and as a reminder, there's over $5.5 billion smartphones in circulation in the world today, and $1.5 billion new ones being added every year. So that is a tremendous network of capture.
Endpoints for matter part and it's a key part of our mission to democratize <unk> capture for all verticals all use cases.
In all Geos and so the combination of those things I think spell.
Strong momentum for quite a bit of time to come.
Okay.
Super Insightful and then just as a follow up your J D.
Just when you think about the accretive paid conversion because that trajectory or even a piece of that like what what's the best way I think about that or even how you guys think about it.
Terms of modeling and where the sort of the variables.
Especially as it potentially could accelerate as the product offering expands thanks.
Sure.
This is a critical one for us and.
To sort of put some things in perspective when we.
<unk> launched smartphone capture it was basically a matter of pork for iPhone in May of 2020 is a very early data.
And it was a relatively quiet beta launch but.
In the first three days of deploying that product, making it available to the world, We signed up more subscribers to matter ports in three days than we did in the first eight years of the company.
And that demonstrates I think the unmet demand for a more accessible product to digitize.
Spaces out there in the world and that again was with just one platform being iOS in the Apple platform now going to Android, we're going to five or six ex that.
Available market to really expand the funnel of the freemium tier and all along through that process and over the course of the last year, we've had incredibly strong conversion rates and conversion rates that I would describe.
Organic conversion, meaning.
Not influenced or funded by marketing dollars from matter ports, but these are customers that would come onto the platform download the matter part app to their iPhone and convert to a paying subscription tier within 30 to 45 days, which is the time window that the vast majority.
You already have them converted but at extraordinary rates all on their own.
And what they are converting into is also quite interesting, they're converting not just into a starter tier or approach here, but all the way up into enterprise tiers and smartphone capture has been equally.
Equally powerful for matter poor and useful and not only helping to capture the long tail of the built world, but it's also a driver for converting enterprise companies in the Fortune 1000, because it is a very convenient mechanism to do a free try before you buy on a space of.
Any kind of any size, including a large factory or production facility.
Our technology works great.
Right out of the box that a download with your smartphone.
And so looking ahead.
I think one of the key elements is going to be expanding our reach to more capture endpoints with Android expanding our capture them points, even with iPhone as it comes out of beta.
The product experience and the capture experience and the performance is just getting better and better and I think that's going to drive exceptional adoption for us in the future and I'd really be looking at how.
Matter of pork gets behind putting.
Smartphone capture truly out there into all of our global regions.
In a very forward and intentional way.
Thank you.
Thank you.
Our next question comes from Yun Kim of loop capital markets. Your line is open.
Thank you congrats on a solid execution Arjun.
J D. So RJ can.
Can you give us update on the Android catheter product what is your expectation regarding the initial uptake of the Android product purchase obviously, what was a very highly successful iPhone really hot shot and I'll, just mention and Georgia more partner outside of the U S than an iPhone.
So.
And then on top of that it does have a higher mix of the low end of the market.
So.
Two factors impact.
Initial adoption rate.
And also you under converted to pesos.
Oh iPhone.
Hum do you think about that.
And the adoption.
It's between iPhone and Android Willie.
Thanks.
Sure.
So Android comprises roughly.
80% of the smartphone platform market.
So it's big.
It's it's no question, you're going to have a material impact on how we grow the top of funnel for our business.
And the first way to think about it is that the introduction of Android capture.
Really.
Deployed earlier this year to do the first of two things. The first thing that Android capture does which is very important.
Is controls the matter core capture experience for our our own camera the matter Port Pro two but also the third party cameras, we support 360 cameras.
Like a BLK.
And that's an important addition, because we have so many customers out there.
Large small and enterprise.
Our committed to the Android platform and so from a cost of ownership point of view, just getting the Android controller in place, which we call intra capture.
Out into the market.
Gonna have huge implications, especially for the SMB market, which is large and highly distributed and its also very global.
There are alternative today is if they own Android devices, but they want to go start capturing something with matter parts.
They have to go out and buy an iOS device to do so they have to get an iPad or an iPhone to get started and thats a pretty expensive proposition in many cases more expensive than a three D capture device itself more expensive then surely a free SaaS plan of ours, our free tier but even.
More expensive than our startups here, so that's a pretty important.
Upgrade for us to get that into the market. That's been a long time coming it's in beta right now and the second part of Android that comes forward is.
Theres Android capture and then Android smartphone capture in that that one distinction is enabling the device itself and the cameras that are onboard to actually become a capture device capable of just like we did for iPhone. That's what's come in a little bit later this quarter and what we absolutely intend to do is execute a rolling.
<unk> global rollout, so it's not going to be kind of a single event that.
Causes.
Dynamic movements in the market, but it is going to be a steady drumbeat as we carried across North America, Europe, and Asia and bring it out into all of our important verticals.
Youre right in that there is an especially strong concentration of Android devices in the international Theater, we're very cognizant of that and we think that that's going to be important for us to be armed with a fully compatible Android offering before we push even our broader regional marketing activities.
More aggressively which we fully intend to do we really want to do it when we have the full momentum of our capture Arsenal ready to go and Android is a critical part of that for international. So this is going to be an unlock across the board from outer port.
Thanks, so much looking forward to the rollout or J D.
So we love talking about the.
And our art.
Base net retention rate, which came in very strong.
Can you explain the dynamics behind the continued strength that you saw over the last couple of quarters from your traditional 110% rate and.
And in terms of going forward, how should we think about the iPhone users coming coming into the picture because I think starting in Q3, you're going to have meaningful number of them coming into the picture.
We'll dose iPhone users necessarily changed our land.
Land and expand dynamics.
And start.
Having an impact on your numbers.
Yes. Thanks.
We're very pleased with that.
What we call the net dollar expansion rate number or as you noted.
It's very strong largely because the enterprise customers in the business are growing with us and expanding their business with us in at least two ways. One is they're continuing.