Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - Mattersight Corp | d67807d8k.htm |
| EX-99.1 - EX-99.1 - Mattersight Corp | d67807dex991.htm |
 Q2 2015 Earnings Webinar August 5, 2015 Exhibit 99.2 |
 ©2015 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, 2014, our
quarterly reports on Form 10-Q, as well as our earnings press release
issued earlier today. In light of Regulation FD, it is our
policy not to comment on earnings, financial guidance or operations other than through press releases, publicly announced conference calls, or other means that will constitute public
disclosure for purposes of Regulation FD.
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. 2 |
 ©2015 Mattersight Corporation Discussion Topics 3 • Q2 & Recent Business Highlights • Operating Trends and Metrics • Go Forward Operating Model • Progress Nailing It • Recent Offering and Cash Outlook • Brand Building • 2015 Outlook • Q&A |
 ©2015 Mattersight Corporation Q2 & Recent Business Highlights • Solid revenue growth and strong bookings • Continued best in class SaaS metrics • Significant growth in routing seats sold and progress with Avaya • New CFO and strong ramp in sales hires • Accelerating momentum building our brand • Completed a $16.2M financing in July 4 |
 ©2015 Mattersight Corporation Q2 Results • Bookings – Annual Contract Value (ACV) bookings for the second quarter were $5.8M
– ACV bookings for the last four quarters were $19.0M, a 46% year-over-year increase
• Book of Business – Annualized Book of Business was $49.0M for the second quarter, a 37% year-over-year increase • Revenues – Total revenue for the second quarter was a record $9.7M, a 33% year-over-year increase
– Subscription revenue was $8.9M, up 41% on a year-over-year basis
• Adjusted EBITDA – Q2 Adjusted EBITDA was ($0.8M) – Adjusted EBITDA leverage was 30% for the last four quarters 5 |
 ©2015 Mattersight Corporation Q2 2015 Key Operating Metrics Measurement Q2 2014 Q2 2015 Change ACV Total Bookings* $13.0M $19.0M 46% Annualized Book of Business $35.7M $49.0M 37% Annualized Revenue $29.4M $39.0M 33% Annualized Subscription Revenue $25.2M $35.5M 41% % Subscription Revenues 86% 91% 500 bps Subscription Retention %* 97% 98% 40 bps Year/Year Net Account Growth* 105% 122% 16% Gross Margin 69% 73% 340 bps Customer Acquisition Cost (CAC) Ratio* 50% 141% 182% 6 Of 49 public SaaS companies reviewed by Craig-Hallum, only 8 are projected to grow >30% and have >70% gross margins in
2015 * Rolling 4 Quarters |
 ©2015 Mattersight Corporation Bookings Trends 12.9 13.0 12.5 17.4 17.1 19.0 0 5 10 15 20 25 Q1 '14 Q2 '14 Q3 '14 Q4 '14 Q1 '15 Q2 '15 Rolling 4 Quarters ACV Bookings ($M) 7 |
 ©2015 Mattersight Corporation Revenue Trends 8 28.1 29.4 30.7 33.1 37.3 39.0 0 10 20 30 40 50 Q1 '14 Q2 '14 Q3 '14 Q4 '14 Q1 '15 Q2 '15 Annualized Revenues ($M) |
 ©2015 Mattersight Corporation Book of Business Trends 9 32.8 35.7 38.0 42.9 45.3 49.0 0 10 20 30 40 50 60 Q1 '14 Q2 '14 Q3 '14 Q4 '14 Q1 '15 Q2 '15 Revs in Deployment Revenue Annualized Book of Business ($M) |
 ©2015 Mattersight Corporation Total Account Opportunity Trends 10 Total Account Opportunity Annualized Book of Business $175M $36M $273M $49M Q2 2014 Q2 2015 Grew Total Account Opportunity by $57M (26%) since last quarter and $98M (56%) over last 4 quarters |
 ©2015 Mattersight Corporation Operating Model Cash Expense Allocation of Each Dollar of Incremental Revenue 11 P&L Category Our Model Q2 Year/Year Comment Cost of Service 20%-25% 16% Reduced royalties from purchase of PCM IP rights; increased subscription revenue % (lower cost of service) Sales & Marketing 30%-40% 34% Hired CMO, SVP Hunter team, SVP Farmer team, EVP Strategic Bus. Dev. Development 5%-10% 6% Built PBR connectors, PBR algorithm team, and QA application G&A 5%-10% 14% Increased legal spend and added Chief People Officer EBITDA 25%-30% 30% Summary of our operating leverage |
 ©2015 Mattersight Corporation Progress Nailing It • Scaling the Sales Team – Added Frank Suljic to run our “farmer” team – Added 1 sales person in Q2 – Q3 to date, added 3 sales people and a VP of Sales Enablement • Scaling Routing – Sold ~2,500 new routing seats across 4 customers in Q2 – 4 Avaya implementations recently complete/near completion 12 |
 ©2015 Mattersight Corporation Recent Offering and Cash 13 • Recent Equity Offering – Completed a $16.2M registered direct offering of common stock in late July
– The deal was led by a large mutual fund and included follow on from several
existing investors, as well as participation from 6 insiders
– Mattersight placed the shares directly without incurring the customary investment
banking fee
– Shares were priced at a 3% discount, but with insiders paying the current market
price • Cash Outlook – We plan to continue to invest aggressively for growth – Currently expect to reach cash flow breakeven later in 2016 – Expect ending 2016 cash should be in excess of $10M (without using LOC)
– In addition, we plan to continue to maintain a $15M line of credit with SVB |
 ©2015 Mattersight Corporation New Marcomm 14 • Interactive ROI calculator vetted against Forrester calculations • 7 client testimonials + 5 case studies • Rich video throughout |
 ©2015 Mattersight Corporation TrustRadius Ratings & Reviews 15 |
 ©2015 Mattersight Corporation Client Event Nov 2-3 • For clients and prospects • How-to’s and best practices from industry experts • Client presentations from Microsoft, CVS, UnitedHealth Group • Keynote: Matt Dixon, bestselling author of The Effortless Experience, the most provocative work on customer service in recent memory 16 |
 ©2015 Mattersight Corporation PR Traction: 2014 vs. 1H’15 11 0 22 11 0 5 10 15 20 25 Media Coverage Contributed Articles 2014 2015 17 |
 ©2015 Mattersight Corporation 2015 Outlook • 33%-38% total revenue growth • 38%-43% subscription revenue growth • 30%-35% growth in our Book of Business metric 18 |
 ©2015 Mattersight Corporation Thank You • Kelly Conway – 847.582.7200 – kelly.conway@mattersight.com • David Gustafson – 847.582.7016 – david.gustafson@mattersight.com • Sheau-ming Ross – 312.454.3594 – sheau-ming.ross@mattersight.com 19 |