Attached files
| file | filename |
|---|---|
| EX-99.1 - EX-99.1 - Mattersight Corp | d534046dex991.htm |
| 8-K - FORM 8-K - Mattersight Corp | d534046d8k.htm |
 Mattersight
Q1 2013 Earnings Webinar
May 8, 2013
Confidential
&
Restricted
©
2013
Mattersight
Corporation
Exhibit 99.2 |
 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
December 31, 2012, our quarterly reports on Form 10-Q, as well as our
press release issued earlier today.
Mattersight Corporation 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.
Confidential
&
Restricted
©
2013
Mattersight
Corporation
2 |
 Summary
3
•
Converted 2 significant pilots in Q1
•
Signed 3 pilots in Q1 (including one of the world’s three largest
technology companies)
•
Signed 4
pilots to date in Q2 and we have a record 23 pilots in
progress
•
Predictive Routing is hot
•
Very encouraging progress building a partner channel
•
Significantly reducing expenses and expanding gross margins
•
Delays in the ACA project are impacting our revenue outlook
•
Continue to expect to achieve Adjusted EBITDA profitability by
Q4
Confidential
&
Restricted
©
2013
Mattersight
Corporation |
 Q1 Highlights
•
2 Pilot Conversions
DeVry
–
enhance the student experience
Insurance client converted a pilot to enhance the customer experience
and predict / improve Net Promoter Score
®
of each call
•
Revenue
Subscription revenue up 4% from Q4
Overall revenue down 1% from Q4 due to lower deployment revenue
•
Record Gross Margins
Q1 overall GM was 66%, up ~500 bps from Q4
Q1 subscription GM was 74%, up ~500 bps from Q4
•
Backlog / Bookings
Backlog decreased to $79.5M from $89.1M in Q4
•
The partial cancellation of a contract received in June due to budget
constraints
Added $6.7M TCV and $2.4m ACV in incremental contracts
Highest quarter of ‘new’
ACV in 7 quarters
4
Net Promoter, NPS, and Net Promoter Score are trademarks of Satmetrix Systems,
Inc., Bain & Company, Inc., and Fred Reichheld, used under license.
Confidential
&
Restricted
©
2013
Mattersight
Corporation |
 Pipeline Update,
Predictive Routing, Partner and ACA Update
5
•
Pilot Update
–
Signed 3 pilots in Q1, including a pilot with one of the world’s 3 largest
technology companies
–
Signed 4 pilots Q2 to date, including 2 routing pilots
–
Currently have a record 23 active pilots in progress
–
The estimated initial conversion value of these pilots would create annual
incremental
contract
value
(ACV)
of
approximately
$10
million
to
$12
million
•
Predictive Routing
–
Pipeline grew by approximately 4X from ~15 to ~60 accounts in Q1
–
Very impressive initial deployment results
•
18% decrease in talk time for an HMO
•
1 minute (~11%) reduction in talk time for a second HMO
•
14% increase in sales conversion rate for a Pharmaceutical Company
•
Partners
–
Routing message strongly resonates with Call Center Systems Integrators
–
Signed 3 partners to date (~150 installed accounts)
–
Expect to have 5-6 partners signed by end of Q2 (~300+ installed accounts)
–
Partners registered 12 leads in the last 30 days
•
ACA
–
Our partner has been selected to provide ACA customer care service
–
They
are
in
discussions
with
the
government
on
the
bid
award
and
their
contract
–
We expect to get clarity on this project by the end of June
Confidential
&
Restricted
©
2013
Mattersight
Corporation |
 Expense
Reductions •
Reduced total expenses by 10-12% in Q1 which will be
visible in Q2 results
•
Expect to further reduce expenses by 4-5% sequentially by
Q3
•
These expense reductions will enable us to drive significant
operating leverage as revenues grow
6
Confidential
&
Restricted
©
2013
Mattersight
Corporation |
 Business
Outlook •
Q2 Revenue Discussion
Q2 revenues will be impacted by previously discussed
reductions in backlog
Delays in ACA project
•
Q2 Revenue Guidance
We currently expect Q2 subscription revenues will be
approximately 10% lower than Q1
•
Q3 / Q4 Revenue Outlook
Looking out to Q3 and Q4, we expect revenues, separate from
our
business
related
to
the
ACA,
will
grow
8%
-
10%
sequentially each quarter
7
Confidential
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©
2013
Mattersight
Corporation |
 Summary
•
The addition of routing and predictive models has created a
unique and very valuable position for us
•
Our routing message is resonating with both major accounts
and SMBs
•
Routing is shortening sales cycles
•
Rapidly building a partner channel
•
Our cost structure is being reduced so that a lift in revenues
will drive significant operating leverage
8
Confidential
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2013
Mattersight
Corporation |
 9
Thank You
•
Kelly Conway
847.582.7200
•
Mark Iserloth
312.454.3613
kelly.conway@mattersight.com
mark.iserloth@mattersight.com
Confidential
&
Restricted
©
2013
Mattersight
Corporation |