Mattersight 8-K Mattersight Announces First Quarter 2013 Results

Mattersight Q1 2013

Earnings Webinar

May 8, 2013

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Exhibit 99.2

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,

2012, 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.

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2

Summary

3

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Converted 2 significant pilots in Q1

•

Signed 3 pilots in Q1 (including one of the world’s three largest

technology companies)

•

Signed 4

pilots to date in Q2 and we have a record 23 pilots in

progress

•

Predictive Routing is hot

•

Very encouraging progress building a partner channel

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Significantly reducing expenses and expanding gross margins

•

Delays in the ACA project are impacting our revenue outlook

•

Continue to expect to achieve Adjusted EBITDA profitability by

Q4

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Q1 Highlights

•

2 Pilot Conversions

DeVry

–

enhance the student experience

Insurance client converted a pilot to enhance the customer experience

and predict / improve Net Promoter Score

®

of each call

•

Revenue

Subscription revenue up 4% from Q4

Overall revenue down 1% from Q4 due to lower deployment revenue

•

Record Gross Margins

Q1 overall GM was 66%, up ~500 bps from Q4

Q1 subscription GM was 74%, up ~500 bps from Q4

•

Backlog / Bookings

Backlog decreased to $79.5M from $89.1M in Q4

•

The partial cancellation of a contract received in June due to budget

constraints

Added $6.7M TCV and $2.4m ACV in incremental contracts

Highest quarter of ‘new’

ACV in 7 quarters

4

Net Promoter, NPS, and Net Promoter Score are trademarks of Satmetrix Systems,

Inc., Bain & Company, Inc., and Fred Reichheld, used under license.

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Pipeline Update, Predictive Routing, Partner and ACA

Update

5

•

Pilot Update

–

Signed 3 pilots in Q1, including a pilot with one of the world’s 3 largest

technology companies

–

Signed 4 pilots Q2 to date, including 2 routing pilots

–

Currently have a record 23 active pilots in progress

–

The estimated initial conversion value of these pilots would create annual

incremental

contract

value

(ACV)

of

approximately

$10

million

to

$12

million

•

Predictive Routing

–

Pipeline grew by approximately 4X  from ~15 to ~60 accounts in Q1

–

Very impressive initial deployment results

•

18% decrease in talk time for an HMO

•

1 minute (~11%) reduction in talk time for a second HMO

•

14% increase in sales conversion rate for a Pharmaceutical Company

•

Partners

–

Routing message strongly resonates with Call Center Systems Integrators

–

Signed 3 partners to date (~150 installed accounts)

–

Expect to have 5-6 partners signed by end of Q2 (~300+ installed accounts)

–

Partners registered 12 leads in the last 30 days

•

ACA

–

Our partner has been selected to provide ACA customer care service

–

They

are

in

discussions

with

the

government

on

the

bid

award

and

their

contract

–

We expect to get clarity on this project by the end of June

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Expense Reductions

•

Reduced total expenses by 10-12% in Q1 which will be

visible in Q2 results

•

Expect to further reduce expenses by 4-5% sequentially by

Q3

•

These expense reductions will enable us to drive significant

operating leverage as revenues grow

6

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Business Outlook

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Q2 Revenue Discussion

Q2 revenues will be impacted by previously discussed

reductions in backlog

Delays in ACA project

•

Q2 Revenue Guidance

We currently expect Q2 subscription revenues will be

approximately 10% lower than Q1

•

Q3 / Q4 Revenue Outlook

Looking out to Q3 and Q4, we expect revenues, separate from

our

business

related

to

the

ACA,

will

grow

8%

-

10%

sequentially each quarter

7

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Summary

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The addition of routing and predictive models has created a

unique and very valuable position for us

•

Our routing message is resonating with both major accounts

and SMBs

•

Routing is shortening sales cycles

•

Rapidly building a partner channel

•

Our cost structure is being reduced so that a lift in revenues

will drive significant operating leverage

8

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9

Thank You

•

Kelly Conway

847.582.7200

•

Mark Iserloth

312.454.3613

kelly.conway@mattersight.com

mark.iserloth@mattersight.com

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