Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - Mattersight Corp | d252692d8k.htm |
| EX-99.1 - PRESS RELEASE - Mattersight Corp | d252692dex991.htm |
 Mattersight
Q3 2011 Earnings Webinar
November 09, 2011
Exhibit 99.2 |
 2
Safe Harbor Language
During today’s call we will be making both historical and
forward-looking statements in order to help you better
understand our business. These forward-looking statements
include references to our plans, intentions, expectations,
beliefs, strategies and objectives. Any forward-looking
statements speak only as of today’s date. In addition, these
forward-looking statements are subject to risks and
uncertainties that could cause actual results to differ
materially from those stated or implied by the forward-
looking statements. The risks and uncertainties associated
with our business are highlighted in our filings with the SEC,
including our Annual Report filed on Form 10-K for the year
ended January 1, 2011, our quarterly reports on Form 10-Q,
as well as our press release issued earlier today.
Mattersight undertakes no obligation to publicly update or
revise any forward-looking statements in this call. Also, be
advised that this call is being recorded and is copyrighted by
Mattersight Corporation. |
 Q3
Overview |
 Q3
Highlights •
Revenues
Grew Subscription Revenues by 9% sequentially to $5.3 million
Grew Total revenues by 6% sequentially to $7.0 million
•
Contracts and Backlog
Signed $9.6 million of Managed Services contracts
Grew Backlog to a record $102.3 million
Increased Backlog 74% year/year
•
Operating Performance
Expanded gross margins by 200 bps
Improved operating performance by 600 bps
•
Continued to Grow Pipeline
Signed 2 new pilots in Q3
Signed 3 new pilots in Q4 to date (including our first telco/cable client)
4 |
 Revenue
Review
Revenue
Type
Q3
Actual
Sequential
Change
Subscription Revenues
$5.3 m
9%
Amortized Deployment
Fees and Add On
Consulting Revenues
$1.2m
-4%
Total Behavioral Analytics
Revenues
$6.5m
6%
Other Revenues
$0.5m
8%
Total Revenues
$7.0m
6%
5 |
 Bookings Review
Contract
Type
Q3 2011
Bookings
Last Four Quarter
Bookings
Add On Contracts with
Existing Customers
$2.0m
$33.7m
Expansions within Existing
Customers
$1.8m
$6.6m
Renewals
$5.8m
$22.8m
New Logos
$0
$7.7m
Total
$9.6m
$70.8m
6
Application
Q3
2011
Bookings
Last Four Quarter
Bookings
Call
Center
Customer Service
$5.2m
$54.1m
Call
Center
Sales and Collections
$0.4m
$10.3m
Other Applications
$4.0m
$6.4m
Total
$9.6m
$70.8m |
 Backlog (in
Millions) Notes
Backlog up ~74% year over year
Revenue retention rate of Behavioral Analytics subscriptions is ~95%
7 |
 Pilot
Pipeline 8
2011
Q3
2011 |
 Headcount
Business
Function
Q3
Headcount
Sequential
Change
Development and
Operations
179
10%
Sales and
Marketing
24
4%
G&A
16
(11%)
Total
219
8%
9 |
 Discussion of
Operating Results 10
Income Statement
Category
Q2
2011
Q3
2011
Target
Model
Comments
Subscription
Revenues As a % of
Total Revenues
73%
75%
90%
Subscription revenues will grow faster
than other revenue categories
Gross Margin
52%
54%
65%
Core Subscription and Add On
Revenues have higher margins than
other revenues
Sales and Marketing
33%
34%
20%
Driven by Scale
Development
28%
30%
13%
Driven by Scale
G&A
26%
19%
7%
Driven by Scale
Adjusted EBITDA
-35%
-29%
25%
We currently expect our Q4 operating performance will improve by
an additional 900 to 1,100 bps |
 Arbitration
with TCV •
Background
On July 29th Mattersight entered into Arbitration with Technology Crossover
Ventures (TCV)
TCV owns 53% of the Series B Preferred and has expressed the position that the
sale of the ICS business triggers the requirement of a cash payment equal to the
full amount of the Series B liquidation preference
The liquidation preference is $5.10 per share of outstanding Series B Stock
(approximately $18 million)
The
Company
and
Sutter
Hill
Ventures
(who
owns
38%
of
the
Series
B)
disagree
with TCV’s position
Until the resolution of the Arbitration, we have agreed to hold $18.4 million as
Restricted Cash (liquidation preference plus accrued dividends)
•
Arbitration
The issue remains in arbitration
11 |
 Q4 Guidance
and Summary |
 Q4
Guidance 13
•
18% to 22% sequential increase in Subscription Revenues
•
16% to 20% sequential increase in Total Revenues |
 Investment
Highlights •
Large, Untapped Market
US TAM of $10+ billion per year
<5% penetrated
•
Significant Opportunity with Existing Customers
Installed base TAM of ~$200 million
~15% penetrated
•
Enterprise Analytics Footprint Delivered in the Cloud
Analytics for service, sales, and collections call centers
Mattersight also has analytics applications for fraud, customer retention and the back
office The company’s analytics are delivered in the cloud and virtually all of its
revenues are recurring •
Significant Customer Returns and Impressive Customer List
Mattersight’s unique analytics and delivery model generates significant returns for its
customers Customers
include
3
of
the
top
5
HMOs;
3
of
the
top
4
Property
&
Casualty
Insurance
companies;
1
of
the 3 largest retail banks; and 1 of the 2 largest Prescription Benefit Management
companies •
Large and Sticky Customer Relationships
Average revenue per customer is in excess of $1 million per year
Average initial contract duration of 3 to 5 years
•
Significant Revenue Visibility
Large Contract Backlog
95%+ revenue retention rate
14 |
 15
Thank You
•
Kelly Conway
-
847.582.7200
-
kelly.conway@mattersight.com
•
Tyson Marian
-
312.454.3527
-
tyson.marian@mattersight.com
•
Bill Noon
-
847.582.7019
-
bill.noon@mattersight.com |