Mattersight Corp - FORM 8-K - EX-99.2

Attached files

file	filename
8-K - 8-K - Mattersight Corp	d767449d8k.htm
EX-99.1 - EX-99.1 - Mattersight Corp	d767449dex991.htm

Mattersight Q2 2014

August 6, 2014

Earnings Webinar

Exhibit 99.2

Confidential & Restricted ©

2014 Mattersight Corporation

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, 2013, 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.

Summary

•

Strong Core Business

$35M

core

business,

built

around

robust

analytics

platform

and

premier

set

very large customers

Bookings are up 55% year over year, and Book of Business is up 40% YTD on an

annualized basis

Several very large pilots in progress for these applications

•

Explosive Routing Opportunity

Creating a new software category

All of the initial data points on our routing product are positive, and the pipeline

for routing is exploding

•

Improving Business Metrics

Combining our core business with the huge upside of routing, we expect to

achieve best in class SaaS metrics over the next few quarters

Much of this story is obscured by the loss of a government contract which was

~25% of our business in Q4 of 2013

•

Strong Balance Sheet

Ended

the

quarter

with

$13M

cash

(including

$7M

from

our

line

credit)

Raised $12M in new equity capital in July

Confidential & Restricted ©

2014 Mattersight Corporation

Rolling 4Q Bookings / Quarterly Book of Business Trends

Sequential Change

40% Annualized Growth Rate YTD

-21%

4Q YoY Change

Q2 Bookings = $3.8M

85%

98%

55%

15%

90%

Rolling 4Q IACV ($M)

8.4

11.8

11.9

12.9

13.0

Q2 '13

Q3 '13

Q4 '13

Q1 '14

Q2 '14

Book of Business ($M)

8.8

9.3

7.3

8.0

8.7

Q2 '13

Q3 '13

Q4 '13

Q1 '14

Q2 '14

Confidential & Restricted ©

2014 Mattersight Corporation

Rolling 4Q Bookings Composition Trend

4Q YoY Change

Q2 = $1.7M

32%

57%

68%

4Q YoY Change

Q2 = $2.1M

171%

145%

130%

110%

Rolling 4 Quarter Add-On

ACV ($M)

Rolling 4 Quarter Pilot Conversion

ACV ($M)

55%

-20%

Confidential & Restricted ©

2014 Mattersight Corporation

Q2 '13

Q3 '13

Q4 '13

Q1 '14

Q2 '14

3.3

6.1

6.5

7.1

7.6

Q2 '13

Q3 '13

Q4 '13

Q1 '14

Q2 '14

5.1

5.7

5.4

5.8

5.4

Revenue / Gross Margin Trends

Sequential Change

-24%

-7%

Confidential & Restricted ©

2014 Mattersight Corporation

Q2 '13

Q3 '13

Q4 '13

Q1 '14

Q2 '14

7.9

8.6

9.2

7.0

7.3

Quarterly Revenues ($M)

66%

75%

68%

69%

60%

62%

64%

66%

68%

70%

72%

74%

76%

Q2 '13

Q3 '13

Q4 '13

Q1 '14

Q2 '14

Gross Margin %

Revenue Composition

Subscription Revenue Retention

Rate

(Ex-GDIT)

Subscription as a Percentage of

Total Revenue

(Ex-GDIT)

100%

98%

97%

Q2 '13

Q3 '13

Q4 '13

Q1 '14

Q2 '14

81%

80%

84%

87%

86%

Q2 '13

Q3 '13

Q4 '13

Q1 '14

Q2 '14

Confidential & Restricted ©

2014 Mattersight Corporation

Pilot Trends

Up 229% YoY

Up 259% YoY

Q2 Pilots = 21

•

21 Pilots were added in Q2 (20 Routing)

•

3 Pilots were converted in Q2 (all Routing)

•

5 Pilots were cancelled in Q2 (all Impact Analysis)

Q2 '13

Q3 '13

Q4 '13

Q1 '14

Q2 '14

Number of Pilots

Q2 '13

Q3 '13

Q4 '13

Q1 '14

Q2 '14

$12

$21

$28

$35

$39

Pilot Follow-On ACV

($M)

Confidential & Restricted ©

2014 Mattersight Corporation

Pilot Composition Trends

Appliance

Pilots in

Progress

PM/

Analytics

IA’s

Pilot Composition

Q2 2014

79 Ending Pilots

Appliance

Backlog

PM/

Analytics

IA’s

Pilot Composition

Q2 2013

22 Ending Pilots

Appliance

Backlog

$12M Pilot Follow-On ACV

$39M Pilot Follow-On ACV

Confidential & Restricted ©

2014 Mattersight Corporation

•

Routing

Appliances

$1M

ACV

•

PM/Analytics

$6M

ACV

•

IA’s

$5M

ACV

•

Routing

Appliances

$10M

ACV

•

PM/Analytics

$14M

ACV

•

IA’s

$15M

ACV

2014 Mattersight Corporation

Performance of Recent Routing Implementations

% Impact of PBR Routed Calls

Service

Sales

16.4

13.5

14.4

16.0

7.1

14.3

23.2

13.5

13.2

15.0

15.6

Q2 Operating Metrics Dashboard

*New Accounts are defined as new logo accounts in the first 12 months

of subscription

Measurement

Best in Class

Target

2014

Comments

Annualized Book of Business

$50.0M

$34.8M

Growing 40% YTD in 2014

Yr/Yr Book of Business

Growth

30%

20% Revenue growth lags BoB growth

(Ex GDIT)

by 1-2 quarters

% Recurring Revs

90%

86%

Increased from 81% in 2012

Yr/Yr Revenue Growth

30%

14%

(Ex GDIT)

Yr/Yr growth should accelerate in

Q4 and continue into 2015

Subscription Revenue

Retention

90%

97%

Has averaged ~98% over last 4

quarters (ex-GDIT)

% of Revs from New

Accounts*

15%

Numerous new logo opportunities

in progress

Yr/Yr Net Account Growth

$1.10

$1.15

Selling our full suite of products,

very strategic

Gross Margin

70%

69%

Increased from 61% in 2012

2014 Mattersight Corporation

Balance Sheet Discussion

•

Q2 Ending Cash

$13M in ending cash in Q2

Includes $7M drawn from our Line of Credit, which has been

repaid

•

Equity Raise

Raised $12M in new equity in July

Growth capital to fund our current pilots, and ramp up

marketing and sales

Get Mattersight to cash flow positive by the end of 2015

•

Lines of Credit

SVB -

$10M

PfG -

$3M

•

2014 Cash Burn

We expect to burn ~$2M over the remainder of 2014

2014 Mattersight Corporation

Q3 Business Outlook

2014 Mattersight Corporation

•

Revenue Drivers

Bookings are driven by pilot conversions and add-on bookings

Add-on bookings have averaged $1.9M per quarter over the

last 4 quarters

Revenue growth follows growth in Book of Business by 1-2

quarters

•

Expense Drivers

Incremental gross margins are expected to be 70%-75% for

Total operating expenses are expected to increase by ~3-5%

sequentially, driven by nominal hiring and slightly increased

marketing spend

Thank You

2014 Mattersight Corporation

•

Kelly Conway

847.582.7200

kelly.conway@mattersight.com

•

Mark Iserloth

312.454.3613

mark.iserloth@mattersight.com

Attached files

Stock widget

Investing forum

Mattersight Corp Reports