8 Hot Penny Stocks To Invest In According to Hedge Funds

5. Matterport, Inc. (NASDAQ:MTTR)

Share Price: $4.55

Year to Date Performance: 69.14%

Number of Hedge Fund Holders: 25

Matterport (NASDAQ:MTTR) is a datafication and digitization company. Its technology platform leverages spatial data accumulated through a variety of digital capture devices to metamorphose physical spaces and buildings into photorealistic, dimensionally accurate digital twins. This provides its subscribers access to significant insights and valuable building information.

The company’s platform is specialized in digitizing, managing, and accessing buildings, places, and spaces online. It has scaled and developed its three-dimensional reconstruction technology by using the power of Cortex, its AI-driven software engine. Cortex (NASDAQ:MTTR) employs machine learning to recreate three-dimensional, photorealistic representations of entire building structures, including equipment, contents, and furnishings.

Its offerings span data licensing, software subscriptions, services, and product hardware. The company boasts a footprint across various end markets, including commercial and residential real estate, facilities management, and others.

Matterport’s (NASDAQ:MTTR) quarterly results are boosting efficient growth for the company. Subscription revenue grew by 16% year over year, reaching a record $24.2 million in the quarter. This accounts for around 57% of the company’s total revenue. The primary driver of this growth is Matterport’s (NASDAQ:MTTR)  strategic focus on expanding the recurring subscription revenue within its business.

In addition, the company is delivering value to its customers and developing new products. Project Genesis, its latest AI initiative, and its spatial data-driven efforts, like Property Intelligence from its Q1 Winter Release, have accumulated fame amongst partners and customers alike. It is actively developing its digital capabilities and is on a path to rolling out new breakthroughs in its Fall Release later in 2024.