Mattersight 8-K Mattersight Announces Third Quarter 2012 Results

Mattersight Q3 2012

Earnings Webinar

November 7, 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.

Discussion Topics

3

•

Summary

•

Q3 Review

•

Predictive Routing Application

•

Business Model Discussion

•

Q4 Outlook

Summary

4

•

Project Delays Continue to Impact Revenues

•

Revenues from All Delayed Projects Are Moving Forward and

We Will Begin to Recognize Revs in Late Q4 or Q1

•

Encouraging Q4 Bookings Outlook

•

Very Positive Response to Predictive Routing Application

•

Bending Expenses Down

•

Looking to Cross Chasm by Q4 2013

Status of Project Delays

5

Project

Impact on               

Q3/Q4 2012

Status

Desktop Analytics

Projects

$1.0m

Ramping in late Q4

and Q1

Major Expansion

$0.4m

Expansion Starting

Late in Q4

Total

$1.4m

Pilot Review

6

Q3 2012

Year/Year

Beginning Pilots

17

5

New Logos Added

1

6

Other Pilots Added

0

10

Pilots Converted

0

(2)

Pilots Non Converted

0

(1)

Pilots Cancelled Due to

Budget Issues

(2)

(2)

Ending Pilots

16

16

Year/Year Pilots increased from 5 to 16

Expect to convert 3-4 Pilots in Q4

Backlog Review

7

Q3 2012

Beginning Backlog

$104.6m

Bookings

$8.6m

Recognized Revenues

$7.7m

Backlog Adjustments

($8.7m)

Ending Backlog

$96.8m

Behavioral Connection and Business Outcome

8

•

Discovered a Powerful Insight Regarding the Impact of Behavioral

Connections and Business Outcome

•

There is Significant Variability Between Business Outcomes and

Employee/Customer Behavioral Connections

•

Sample Outcomes Data

•

Feeding this Data to Mattersight’s Predictive Routing Engine Can

Drive Significant Benefits

Business Outcome

Impact of Behavioral Connections

Customer Service Costs

35%-40%

Customer Attrition Rates

25%-50%

Sales Conversion Rates

85%-230%

Private Sector Education App Rates

200%-300%

Why Predictive Routing Could Be A Game Changer for Mattersight

9

•

Reduce Sales Friction…

“It’s Simple and Compelling”

-

Much larger benefits

-

No client effort required to achieve benefits

-

Easy to explain and understand

-

Opens up Analytics to SMB Market

•

Reduce Timeframe to Revenue

-

1-2 month shorter deployment time

-

Benefits realization is immediate

•

Potentially Better Economics

-

Higher per user revenues

-

Lower cost per user

•

Simplify Contracting

-

Can move away from long contract commitments to shorter commitments

•

Risks

-

New integration points

-

Not all companies have needed infrastructure

Business Model

10

•

Drivers of Subscription Revenue Growth

-

We continue to believe we will convert ~75% of our Pilots

-

Add-Ons should increase revenues by 8%-10% on an annual basis

-

We expect revenue retention rates will be ~95%

-

We remain in the hunt for a very large contract associated with the

implementation of the Affordable Care Act

•

Gross Margin Expansion

-

Gross Margins will expand ~700bps in 2012 to ~61%

-

We currently expect Gross Margins will expand an additional 200-300 bps in 2013

•

Expense Management

-

We

currently

expect

total

SG&A

expenses

will

be

flat

to

down

~5%

in

2013

as

compared to 2012

-

We expect our headcount will be basically flat over the next four quarters at

~235 employees

•

Breakeven Point

-

We currently expect our Adjusted Earnings Breakeven will be ~$10.0m to

$10.5m in quarterly revenues

•

Cash

-

We expect our cash balance will be essentially flat in Q4 at ~$14.5m

-

In

addition

to

our

cash,

we

have

~$5.0m

available

on

our

Line

of

Credit

Q4 Outlook

11

•

Q4 Bookings

–

Good Start to Q4

•

~$2m in total Bookings

•

2 Pilot conversions

•

2 other deals awaiting signature

–

Q4 Outlook

•

3-4 Pilot conversions

•

1-2 new Logos

•

3-5 total new Pilots

•

4% to 6% Sequential Revenue Growth in Q4

Summary

12

•

Leader in an Emerging Big Data Market

•

Highly Differentiated Product

•

Products and Delivery Model Analytics Drives Significant

Tangible ROI

•

Significant Potential Value of Our Predictive Routing

Application

•

Pipeline Continues to Strengthen

13

Thank You

•

Kelly Conway

-

847.582.7200

-

kelly.conway@mattersight.com

•

Mark Iserloth

-

312.454.3613

-

mark.iserloth@mattersight.com