Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - Mattersight Corp | d350763d8k.htm |
| EX-99.1 - PRESS RELEASE - Mattersight Corp | d350763dex991.htm |
 Mattersight
Q1 2012 Earnings Webinar
May 10, 2012
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 December 31, 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. |
 Business
Update •
Strong Revenue Performance
•
Significant Margin Improvement
•
Solid Bookings
•
Record Pilot Activity
•
20% Sequential Increase in Total Pipeline
•
Strong Interest in Predictive Routing in Predictive Models
•
Rapidly Growing Interest in Big Data Solutions
•
Pause in Revenue Growth in Q2
3 |
 Q1
Highlights •
Grew Subscription Revs 7% sequentially and 53% yr/yr to $7.2 million
•
Improved
Gross
Margins
500
bps
sequentially
and
900
bps
yr/yr
to
62%
•
Improved
operating
performance
by
500
bps
sequentially
and
3,600
bps
yr/yr
•
Closed a record 7 new Pilots
•
Converted 2 existing Pilots
•
Increased total Pilots to a record 13
•
Signed $8.0 million of Managed Services contracts, and ended Q1 with $94.6
million in Backlog
•
Continued growth in key pipeline metrics
•
Experienced strong demand for Predictive Models and Predictive Routing
4 |
 Income Statement
Analysis Category
Q1
2011
Q1
2012
Change
Subscription
Revenues
$4.7m
$7.2m
53%
Total Revenues
$6.5m
$8.9m
37%
Gross Margin %
53%
62%
9%
Sales & Marketing
Expense %
25%
30%
(5%)
Development
Expense %
36%
21%
15%
G&A
Expense %
34%
17%
17%
EBITDA %
(42%)
(6%)
36%
5
Comments
•
57% of Q1 Subscription Revenue growth came from up-selling existing accounts
•
We remain <20% penetrated at existing accounts
•
Subscription GM was ~69% in Q1
•
We believe target gross margins can expand to 70%
•
Reviewing level of Sales/Marketing and Development expenses in light of market
opportunity and momentum
Year/Year |
 Significant
Progress Ramping Up Our Sales and Marketing Engine
•
Total Pipeline up ~3X
•
New Logo Pipeline up ~4X
•
Total Pilots up ~4X
•
New Logo Pilots up 5X
•
Predictive Model, Predictive Routing and Multi-Channel Pilots
up ~4X
•
Quota Carriers up from 7 to 17
•
Hired 2 strong RVP’s
6 |
 Q1 Bookings
Review
Deal
Type
Application
Customer
Type
Industry
Comments
Pilot Conversion
Sales Analytics
Existing
P&C
Pilot Conversion
Back Office
Analytics
Existing
HMO
2
nd
Back Office
Deployment
Existing Account
Expansion
Predictive Routing
Existing
Pharma
1
st
Production Deployment
of Predictive Routing
New Pilot
Customer
Service
New Logo*
Mutual Fund
Top 3 Mutual Fund
Company
New Pilot
Enrollment
Analytics
New Logo*
Private Sector
University
Top 3 Private Sector
University
New Pilot
Customer Service
Existing
HMO
New Pilot
Predictive CSAT
Model
Existing
P&C
New Pilot
Predictive Attrition
Model
Existing
P&C
New Pilot
Predictive Promise
to Pay Model
Existing
Fin Services
New Pilot
Multi Channel
Analytics
Existing
HMO
1
st
Multi Channel Analytics
Pilot
7
*In addition, we have signed 2 new logos Q2 to date |
 Pilot
Activity 8
*Includes signing of 2 new Pilots Q2 to date |
 Pilot
Analysis Pilot Type
Q2 to Date
2012
Q1
2012
2011
New Logos
Pilots
5
3
1
Predictive
Model Pilots
4
4
2
Predictive
Routing Pilots
1
1
0
Other Account
Expansion Pilots
5
5
1
Total
15
13
4
9
Q1 |
 Pipeline
Overview 10
Total Pipeline…January 2011 = 100
The 20% Q1 sequential pipeline increase is primarily driven by conversion
opportunities associated with new logo pilots |
 Backlog (in
Millions) 11
$84.5
$80.1
$100.0
$102.3
$96.3
$94.6
$ -
$20.0
$40.0
$60.0
$80.0
$100.0
$120.0
Q4 2010
Q1 2011
Q2 2011
Q3 2011
Q4 2011
Q1 2012 |
 Predictive
Models and Predictive Routing •
Predictive Models
–
Overview
•
Predictive Models use our data to predict future customer behavior
•
Sample models: CSAT; Attrition; Sales; Promise to Pay
–
Predictive Model Status
•
Signed Pilots to create 4 Predictive Models in Q1 for existing customers
•
Predictive Models are also embedded in 3 of our 5 New Logo Pilots
•
Predictive Routing
–
Overview
•
Predictive Routing uses our data to drive advanced call routing
•
Sample use cases: route to the most efficient CSR; route to the CSR with
the highest CSAT score/sales score; etc.
–
Predictive Routing Status
•
Signed 1 production deployment in Q1
•
Pursuing Pilot proposals at 4 other existing clients
•
Strategic Significance
–
Increases the value of our data
–
New products attack a complete green field opportunity/positioning
12
st |
 Emerging
Interest in Big Data •
What is Big Data?
High Volume
High Velocity…constantly streamed data
Variety…new kinds of data, e.g. calls, emails, desktop usage, other
structured/unstructured data
•
How to Make Big Data Valuable?
Most of this new data is of low value without structure and insight
Structure and insight is required to create value from big data
•
Mattersight Big Data Credentials
Capture
70
trillion
call
and
desktop
usage
data
attributes
daily
Apply
over
2
million
algorithms
to
every
interaction
Execute
250
billion
algorithmic
computations
daily
Process
350
TB
of
raw
and
analyzed
data
a
day
Invested
500
Man
Years
building
algorithms
and
a
robust
data
model
in
the
Cloud
Using Hadoop and Mongo DB
•
Our Emerging Big Data Solutions
Multi-Channel customer experience
Advanced Fraud detection
13 |
 Splunk
Discussion Splunk
Mattersight
Comments
Target Application Area
System Performance
Customer Interactions
Target Market Size
$32B
$10B+
Product Overview
Analysis of Machine Data
Analysis of Customer
Interactions
Business Model
License/SaaS
SaaS+
Mattersight Business
Monitoring Teams Work
Closely With Clients to
Drive Business Value
Target Buyer
IT
Business Executive
Proprietary Algorithms
No
2m-3m
Rev/Customer/Year
$30k
$1.5m
Indicative We Are Solving
a More Strategic Problem
Revenue Scale
$120m
$35m+
Gross Margins
90%
62%
At Similar Revenue Scale
as Splunk We Would
Expect to Be 70%+
Sales and Marketing
Expenses
61%
30%
Operating Margins
(4%)
(6%)
A Similar Revenue Scale
as Splunk We Would
Expect to Be 20%+
14 |
 Q2 Revenue
Growth Pause/Outlook •
Q2 Revenue Growth Pause
Q2 Subscription Revenues are expected to decrease slightly
Q2 revenues will be adversely impacted by the non-renewal of one
contract and the timing of layering on of new revenues
•
Positive Outlook
Q2 Subscription revs are expected to up ~40% yr/yr
Record number of Pilots
Strong pipeline growth
Expect to regain sequential momentum in Q3 and Q4
90%+ customer retention and strong up-sell metrics rate
underscore value of our analytics and customer stickiness
•
Focus to Drive Consistent Growth
Pilot growth and conversions
Closing significant expansions at several existing accounts
Continuing to expand our sales team and marketing campaigns to
take advantage of the opportunity and our momentum
15 |
 Q2 Guidance
and Summary 16 |
 Outlook
17
•
$7.0 million in Q2 Subscription Revenues
•
$8.4 million in Total Revenues |
 8K Filing
•
Earlier today we announced in a Form 8-K that we will be restating
our Statement of Operations for the three year period ending
December 31, 2011 to correct the calculation of Basic and Diluted
Earnings Per Share for Loss from Continuing Operations
•
We incorrectly omitted the impact of Series B Preferred dividends
and
other
distributions
related
to
the
Series
B
Preferred
shares
in
this calculation
•
All other previously reported Financial information is correct
•
The Earnings Per Share for Loss from Continuing Operations
included in our Earnings Release issued today correctly reflect the
impact of the Series B Preferred dividends
18 |
 Large, Untapped
Market •
US TAM of $10b+ per year
•
<5% penetrated
Large Opportunity with Existing Customers
•
Existing
customer
opportunity
~$200
million
•
<20%
penetrated
Sticky Customer Relationships
•
Avg.
contract
term
of
3+
years
•
Leading
companies
across
numerous
verticals
•
90+%
revenue
retention
rate
•
Large
backlog
Investment Highlights
19
We Drive Significant Customer Value
•
Avg.
ROI
to
customers
of
3x
to
5x
•
Positive Current Developments
•
Approaching $40m revenue run rate
•
Increasing Pipeline and operating leverage
Unique Analytics, SaaS+ Model
•
Best
in
class
customer
interaction
analytics
•
Significant
value
on
top
of
traditional
SaaS
•
Emerging
leader
in
Big
Customer
Data
Up/Cross-sell driving 20%-30% rev growth
|
 20
Thank You
•
Kelly Conway
–
847.582.7200
–
kelly.conway@mattersight.com
•
Bill Noon
–
847.582.7019
–
bill.noon@mattersight.com |