Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - Mattersight Corp | d579877d8k.htm |
| EX-99.1 - EX-99.1 - Mattersight Corp | d579877dex991.htm |
 Confidential
&
Restricted
©
2013
Mattersight
Corporation
Mattersight Q2 2013
Earnings Webinar
August 7, 2013
Exhibit 99.2 |
 Confidential
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©
2013
Mattersight
Corporation
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
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©
2013
Mattersight
Corporation
Significant Progress on All Fronts
•
Strong bookings quarter
•
Closed 7 new pilots
•
Very encouraging progress on the Predictive Behavioral Routing
launch
•
Streamlined expenses and significantly improved the P&L
•
Achieved record gross margins
•
Increased Book of Business by 10% sequentially
•
Expect to increase total revenues by approximately 5% in Q3
•
We also currently expect Adjusted EBITDA to be approximately
breakeven in Q3
3 |
 Confidential
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©
2013
Mattersight
Corporation
Q2 Bookings Highlights
Strong overall bookings
$3.7m in ACV
$14.6m in TCV
Excellent bookings breadth
6 deals over $300k in ACV
No deal over $900k in ACV
Converted 2 major Performance Management Pilots
New logos, not existing accounts
Top 5 Hotel chain and prominent P&C
Signed several significant Add-ons with existing large accounts
Grew Pilot base
7 new pilots (including Impact Analysis pilots)
Ended quarter with record of 22 active pilots
Added 6 new logos
4 |
 Confidential
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©
2013
Mattersight
Corporation
Moving Away From Backlog As A Metric
5
Backlog has been used as a metric to give confidence in future
revenue projections and as an early indicator of growth
While useful in part, it can be misleading due to a variety of
factors
Renewal and New contracts both add to backlog but only one
adds to revenue
Small changes in user assumptions are magnified over multi-year
contracts and can result in small swings in quarterly revenue but
large swings in backlog
Large multiyear contracts can have a disproportionate impact on
the size of backlog
Implementing a better metric to be used in the context of
forward-looking guidance |
 Confidential
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©
2013
Mattersight
Corporation
Incremental ACV / Ending Quarter Book of Business
6
2012 Q2
2012 Q3
2012 Q4
2013 Q1
2013 Q2
End of Quarter Revenue
7,932
7,990
8,628
8,516
7,915
Incremental ACV
463
100
465
602
933
Deployment/Cons Run Off
(224)
(124)
(543)
(340)
(201)
Subscription ACV Adj
(55)
(17)
(223)
(939)
(23)
Ending Qtr Book of Business
8,116
7,949
8,327
7,839
8,624
Note: Current quarter revenues may differ from run rate due to timing of
deployments |
 Confidential
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©
2013
Mattersight
Corporation
Financial Performance Discussion
Q2 Revenues of $7.9M
Total revenue down 7%
Subscription revenues down 10%
Consistent with guidance
Record Gross Margins
Overall GM of 66%, up 20 bps from Q1
Subscription GM of 74%, up 50 bps from Q1
Expense Reductions Visible
COS, Development and SG&A expenses down $1.2M, or 10%,
from Q1
Adjusted EBITDA of ($0.4M)
An improvement of $1.1M from Q1
7 |
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2013
Mattersight
Corporation
Pilot Review
Routing
Performance
Management
Add-on/Other
Total
Beginning Pilots
3
6
10
19
Added
5
1
1
7
Converted
-
2
-
2
Dropped
-
1
1
2
Total
8
4
10
22
New Logo Pilots
4
2
-
6
8 |
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©
2013
Mattersight
Corporation
Routing Update
Signed 5 pilots
4 new logos
2 pilots from partners
Increased pipeline
~60% sequential growth in Q2 and ~33% sequential pipeline
growth Q3 to date
Strong activity across numerous verticals: Health Care; P&C;
Tech and Telecom; and Education
Broad application interest: sales; customer retention; and cost
reduction
Signed 6 re-seller partners
9 |
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2013
Mattersight
Corporation
Predictive Behavioral Routing Sales Process
Sales Step
Comment
Revenue Impact
Q2
Add Prospects
to Pipeline
•
2/3 of prospects are expected
to come from
partners
•
1/3 from direct
None
Increased
prospect
pipeline 60%
Close Initial
Impact Analysis
Pilot
•
Analysis of client data takes ~2
weeks to
complete
•
We expect ~80% of these
pilots will convert
Minimal
4
Sign Appliance
Pilot
•
Installation of Routing
Appliance takes ~6 weeks to
complete
•
We expect ~80% of these will
convert to a subscription
Minimal
1
Turn Up
Subscription
•
We expect subscription roll out
will take 6-8 weeks to complete
Average annual
subscription is
expected to be
~$400k+
-
10
Note:
A
pilot
is
only
counted
once
–
either
as
an
Impact
Analysis
Pilot
or
an
Appliance
Pilot |
 Confidential
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©
2013
Mattersight
Corporation
Routing Simplifies Our Whole Business Model
Routing
Performance
Management
Comments
Target Market
All Call Centers
>200 Seats
Large Enterprises
>1,000 Seats
Routing opens SMB market which has
thousands of potential customers who typically
buy through partners
Initial Pilot Sales
Cycle
30 Days+
6-9 Months
Last 2 Routing pilots have sold in one call
Business Impact
Pilot Time
2 Weeks
No Such Pilot
Our Impact Analysis Pilot seems to persuasively
convince people of the potential benefits
Technology
Implementation
~6 Weeks
3-5 Months
Initial implementation is an appliance without
call capture
Technology
Footprint
2 Servers
~20 Servers
See above
Client Effort
Extremely Low
High
Routing is a ‘low touch’
offering requiring no
training or change in any process
Security Concerns
Minimal
Very High
Significantly reduces the number of client touch
points during sales process
Time to Prove
Business Case
2-4 Weeks
3 to 6 Months
The results from Routing are immediate and
visible
Standard Contract
Term
90 Days
3 Years
Shorter contracts should simplify approvals
11 |
 Confidential
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©
2013
Mattersight
Corporation
Sales Organization Change
We announced last week Karen Bolton is leaving Mattersight
Kelly Conway will oversee the Sales Organization, which will
have three teams
A team focused on large telco, cable, technology, and travel
and hospitality companies
A team focused on large health care, insurance and financial
services companies
And a team leveraging our partner channel to penetrate
medium and small businesses
12 |
 Confidential
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©
2013
Mattersight
Corporation
Q3 Outlook
•
We currently expect total Q3 revenues will increase by
approximately 5% sequentially in Q3
•
We also currently expect Adjusted EBITDA to be
approximately breakeven in Q3
13 |
 Confidential
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©
2013
Mattersight
Corporation
Summary
•
Strong bookings performance
•
Record pilot activity
•
Excellent progress with Routing
•
Significantly improved operating performance
•
Strengthened Balance Sheet
•
Market opportunity and competitive position strengthened
14 |
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©
2013
Mattersight
Corporation
15
Thank You
Kelly Conway
847.582.7200
kelly.conway@mattersight.com
Mark Iserloth
312.454.3613
mark.iserloth@mattersight.com |