Mattersight 8-K Results of Operations and Financial Condition

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Q4 2009

Earnings Webinar

February 10, 2010

Exhibit 99.2

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Safe Harbor Language

2

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 27, 2008, our quarterly reports on Form

10-Q, as well as our press release issued earlier today.

eLoyalty

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

eLoyalty

Corporation.

Agenda

Business Overview

Q4 and 2009 Highlights

Q1 Guidance

Q&A

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Business Overview

4

eLoyalty

has three Services Lines

2009 Actual and 2010 Outlook by Service Line

–

…a revolutionary analytics software service that

turns large volumes of recorded conversations into actionable business insight

–

…consulting services, managed services

and product resale around Cisco’s VoIP Contact Center offerings

–

…primarily project based CRM consulting revenues

Legacy Revenues

Integrated Contact Solutions (ICS)

Behavioral Analytics™

(BA)

Service          

Line

Revenue 

Source

2009         

Actual

2010      

Outlook

Commentary

BA

BA

Subscriptions

+58%

+40% to +50%

Expect Strong Growth in 2010

ICS

ICS Managed

Services

+14%

0% to +5%

Termination of 2 Large

Contracts…Expect to Regain

Momentum in Last Half of Year

ICS

ICS

Consulting

+21%

-5% to -10%

Lengthy Sales Cycles &

Uncertain Macroeconomic

Conditions

Legacy

Various

-41%

-40% to -50%

Legacy Revenues are only ~10%

of Total Services Revenues

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Recurring Revenues >70% of Total Services Revenues

0%

10%

20%

30%

40%

50%

60%

70%

80%

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

$14,000

$16,000

Q1

05

Q3

05

Q1

06

Q3

06

Q1

07

Q3

07

Q1

08

Q3

08

Q1

09

Q3

09

Managed Services Revenue

% of Services Revenue

5

Managed Services Revenues

Agenda

Business Overview

Q4 and 2009 Review

Q1 Guidance

Q&A

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Q4 and 2009 Highlights

7

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Q4 Income Statement Commentary

2% sequential increase in Services revenues

–

14% sequential increase in Managed Services revenues

1% increase in ICS Managed Services revenues

–

19% sequential decrease in Consulting revenues

Planned ramp down of a large ICS project

Fewer billing days

Lengthy sales cycles

$143k sequential increase in Adjusted Earnings

–

–

Lower ICS profitability

–

Slightly higher G&A expenses

8

Significant

improvement

in

the

Behavioral

Analytics

Service

P&L

37% increase in Behavioral Analytics  

Service

subscriptions

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9

Backlog Review

Q4 Managed Services Backlog²

Factors Impacting Q4 Backlog

-

Delays in signing 6 deals in Q4 totaling ~$20m…~$11.5m of these

deals have been signed in Q1

-

Cancellation

of

Behavioral

Analytics 

Service

Contract

with

a

Sub

Prime Credit Company due to extreme stress on the client’s

business

-

Early termination of pilot with a large HMO due to uncertainties

associated with health care reform

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Other Key Metrics

Total Cash balance increased $2.0m in 2009

Slight decrease of $0.4m in Q4

Favorable cash impact

–

$2.0m decrease in Accounts Receivables

–

$1.9m decrease in Prepaid Expenses

Unfavorable cash impact

–

$4.5m decrease in Unearned Revenue

DSO improved 10 days to 35 days

Ending Headcount of 431 employees…down from 436 employees at

the

end of Q3, 2009

10

Agenda

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Q4 and 2009 Review

Q1 Guidance

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12

Q1 2010 Guidance

Factors Impacting Q1 Outlook

–

Termination of two significant ICS Managed Services contracts

–

Delays in closing/ramping up of ICS projects

–

~ 5% reduction in headcount

Q1 Services Revenue Guidance is $18.0m

Q1 Managed Services Bookings

–

TM

–

Expect Q1 bookings will be $22m to $25m

Strong ICS and Behavioral Analytics    Service pipelines

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14

Thank You

Kelly Conway

–

(847) 582-7200

–

Kelly_Conway@eLoyalty.com

Bill Noon

–

(847) 582-7019

–

Bill_Noon@eLoyalty.com

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15

Notes

1

eLoyalty

presents Adjusted Earnings, a non-GAAP measure that represents cash earnings performance, excluding

the impact of non-cash expenses and expense reduction activities, because management believes that Adjusted

Earnings

provide

investors

with

a

better

understanding

of

the

results

of

eLoyalty’s

operations.

Management

believes

that Adjusted Earnings reflect eLoyalty’s

resources available to invest in its business and strengthen its balance

sheet.  In addition, expense reduction activities can vary significantly between periods on the basis of factors that

management does not believe reflect current period operating performance.  Although similar adjustments for

expense reduction activities may be recorded in future periods, the size and frequency of these adjustments cannot

be predicted.  The Adjusted Earnings measure should be considered in addition to, not as a substitute for or superior

to, operating income, cash flows or other measures of financial performance prepared in accordance with GAAP.

2

eLoyalty

uses the term “backlog”

to reflect the estimated future amount of Managed services revenue related to its

Managed services contracts.  The value of these contracts is based on anticipated usage volumes over the

anticipated

term

of

the

agreement.

The

anticipated

term

of

the

agreement

is

based

on

the

contractually

agreed

fixed term of the contract, plus agreed upon, but optional, extension periods.  Anticipated volumes may be greater

or

less

than

anticipated.

In

addition,

these

contracts

typically

are

cancellable

without

cause

based

on

the

customer

making a substantial early termination payment or forfeiture of prepaid contract amounts.  The reported backlog is

expected

to

be

recognized

as

follows:

$37.4m

in

2010;

$23.9m

in

2011;

$16.2m

in

2012;

$10.2m

in

2013

and

thereafter.