Mattersight 8-K Mattersight Announces Fourth Quarter 2013 Results

Exhibit 99.1

Mattersight Announces Fourth Quarter 2013 Results

CHICAGO, IL, February 12, 2014 – Mattersight Corporation (Nasdaq: MATR) today announced financial results for the fourth quarter ended December 31, 2013.

Mattersight’s total services revenue was $9.2 million, including $7.6 million of subscription revenue. The Company realized an “Adjusted Earnings^¹” profit of $0.8 million for the fourth quarter of 2013. Adjusted Earnings is a non-GAAP measure. For a reconciliation of operating loss to Adjusted Earnings, see the accompanying schedule. Mattersight’s net loss was $1.5 million in the fourth quarter of 2013.

Q4 Highlights

• Achieved record revenues of $9.2 million

• Achieved $0.8 million of adjusted earnings

• Attained record gross margins of 75%

• Booked contracts with incremental ACV of $2.0 million

• Signed twenty-five new pilots, including twenty-two routing pilots; fifteen of these pilots are new logos

• Ended the quarter with a record fifty-four pilots

Conference Call Information

Mattersight management will host a conference call at 5:00 p.m. ET on Wednesday, February 12, 2014. The conference call and slide presentation will be available at the Investment Community section of Mattersight’s website athttp://www.mattersight.com/investment/. To listen to the conference call via telephone, please call 800.952.4789 (domestic) or 404.665.9579 (international), conference ID: 41324412.

For those who cannot access the live broadcast, a replay of the conference call will be available beginning approximately two hours after the live call is completed until March 12, 2014, by dialing 855.859.2056 (domestic) or 404.537.3406 (international), conference ID: 41324412.

Safe Harbor for Forward-Looking Statements

Statements in this press release that are not historical facts are “forward-looking statements” that are made pursuant to the safe harbor provisions of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements, which may be identified by use of words such as “plan,” “may,” “might,” “believe,” “expect,” “intend,” “could,” “would,” “should,” and other words and terms of similar meaning, involve risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. In addition to other factors and matters contained or incorporated in this document, important factors that could cause actual results or events to differ materially from those indicated by such forward-looking statements include, among other things, the risks detailed from time to time in Mattersight’s SEC filings. You can locate these filings on the Investor Relations page

of Mattersight’s website, www.mattersight.com. Statements included or incorporated by reference into this press release are based upon information known to Mattersight as of the date of this press release, and the company assumes no obligation to publicly revise or update any forward-looking statement for any reason.

About Mattersight

Mattersight is a leader in enterprise analytics focused on customer and employee interactions and behaviors. Mattersight^® Behavioral Analytics captures and analyzes customer and employee interactions, employee desktop data, and other contextual information to optimally route customers to the best available employee, improve operational performance, and predict future customer and employee outcomes. Mattersight’s analytics are based on millions of proprietary algorithms and the application of unique behavioral models. The company’s SaaS+ delivery model combines analytics in the cloud with deep customer partnerships to drive significant business value. Mattersight’s solutions are used by leading companies in Healthcare, Insurance, Financial Services, Telecommunications, Cable, Utilities, Education, Hospitality, and Government. See What Matters™ by visitingwww.Mattersight.com.

1. Mattersight 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 Mattersight’s operations. Management believes that Adjusted Earnings reflect Mattersight’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.

Contact

Mark Iserloth

Vice President and Chief Financial Officer

312.454.3613

ir@mattersight.com

MATTERSIGHT CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited and in thousands, except per share data)

	For the						For the
	Three Months Ended						Twelve Months Ended
	Dec. 31, 2013			Dec. 31, 2012			Dec. 31, 2013			Dec. 31, 2012
Revenue:
Behavioral Analytics revenue	$	8,938		$	8,343		$	33,005		$	32,138
Other revenue		233			285			1,206			1,314
Total services revenue		9,171			8,628			34,211			33,452
Reimbursed expenses		96			97			283			411
Total revenue		9,267			8,725			34,494			33,863
Operating expenses:
Cost of Behavioral Analytics revenue		2,181			3,245			10,139			12,208
Cost of other revenue		100			156			617			702
Cost of services		2,281			3,401			10,756			12,910
Reimbursed expenses		96			97			283			411
Total cost of revenue, exclusive of depreciation and amortization shown below:		2,377			3,498			11,039			13,321
Sales, marketing and development		5,250			6,571			21,752			23,142
General and administrative		2,156			2,341			8,781			8,255
Severance and related costs		—			—			154			693
Depreciation		764			915			3,450			3,419
Amortization of intangibles		(77	)		17			66			81
Total operating expenses		10,470			13,342			45,242			48,911
Operating loss		(1,203	)		(4,617	)		(10,748	)		(15,048	)
Interest and other expense, net		(346	)		(81	)		(659	)		(384	)
Loss from continuing operations before income taxes		(1,549	)		(4,698	)		(11,407	)		(15,432	)
Income tax benefit (provision)		15			(8	)		244			(38	)
Loss from continuing operations		(1,534	)		(4,706	)		(11,163	)		(15,470	)
Income from discontinued operations, net of tax		—			21			—			249
Net loss		(1,534	)		(4,685	)		(11,163	)		(15,221	)
Series B Stock fair value over stated value		—			—			—			(69	)
Dividends related to Series B Stock		(148	)		(147	)		(589	)		(591	)
Net loss available to Common Stock holders	$	(1,682	)	$	(4,832	)	$	(11,752	)	$	(15,881	)
Per share of Common Stock:
Basic loss from continuing operations	$	(0.10	)	$	(0.30	)	$	(0.70	)	$	(1.01	)
Basic income from discontinued operations	$	—		$	—		$	—		$	0.02
Basic net loss available to Common Stock holders	$	(0.10	)	$	(0.30	)	$	(0.70	)	$	(0.99	)
Per share of Common Stock:
Diluted loss from continuing operations	$	(0.10	)	$	(0.30	)	$	(0.70	)	$	(1.01	)
Diluted income from discontinued operations	$	—		$	—		$	—		$	0.02
Diluted net loss available to Common Stock holders	$	(0.10	)	$	(0.30	)	$	(0.70	)	$	(0.99	)
Shares used to calculate basic net loss per share		17,342			16,223			16,722			16,002
Shares used to calculate diluted net loss per share		17,342			16,223			16,722			16,002
Stock-based compensation, primarily restricted stock, is included in individual line items above:
Cost of Behavioral Analytics revenue	$	59		$	2		$	267		$	16
Sales, marketing and development		780			530			3,874			2,308
General and administrative		498			349			2,151			1,405
Severance and related costs		—			—			29			268

MATTERSIGHT CORPORATION

CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

(Unaudited and in thousands)

	For the						For the
	Three Months Ended						Twelve Months Ended
	Dec. 31, 2013			Dec. 31, 2012			Dec. 31, 2013			Dec. 31, 2012
Net loss	$	(1,534	)	$	(4,685	)	$	(11,163	)	$	(15,221	)
Other comprehensive loss:
Effect of currency translation		6			2			6			(1	)
Comprehensive net loss	$	(1,528	)	$	(4,683	)	$	(11,157	)	$	(15,222	)

MATTERSIGHT CORPORATION

CONSOLIDATED BALANCE SHEETS

(Unaudited and in thousands, except share and per share data)

	December 31, 2013			December 31, 2012
ASSETS:
Current Assets:
Cash and cash equivalents	$	13,392		$	14,419
Receivables (net of allowances of $12 and $12)		2,384			2,568
Prepaid expenses		3,576			4,359
Other current assets		427			305
Total current assets		19,779			21,651
Equipment and leasehold improvements, net		5,158			4,727
Goodwill		972			972
Intangibles, net		409			236
Other long-term assets		4,431			3,776
Total assets	$	30,749		$	31,362
LIABILITIES AND STOCKHOLDERS’ EQUITY:
Current Liabilities:
Short-term debt	$	—		$	3,703
Accounts payable		752			781
Accrued compensation and related costs		1,118			1,335
Unearned revenue		7,215			5,853
Other current liabilities		4,098			2,889
Total current liabilities		13,183			14,561
Long-term unearned revenue		2,866			2,374
Other long-term liabilities		1,607			1,231
Total liabilities		17,656			18,166
Series B Stock, $0.01 par value; 5,000,000 shares authorized and designated; 1,649,122 and 1,649,201 shares issued and outstanding at December 31, 2013 and December 31, 2012, respectively, with a liquidation preference of $9,294 and $8,705 at December 31, 2013 and December 31, 2012, respectively		8,411			8,411
Stockholders’ Equity:
Preferred stock, $0.01 par value; 35,000,000 shares authorized; none issued and outstanding		—			—
Common Stock, $0.01 par value; 50,000,000 shares authorized; 20,465,984 and 18,407,848 shares issued at December 31, 2013, and December 31, 2012, respectively; and 18,886,966 and 17,114,880 outstanding at December 31, 2013 and December 31, 2012, respectively		205			184
Additional paid-in capital		228,755			216,667
Accumulated deficit		(212,163	)		(201,000	)
Treasury stock, at cost, 1,579,018 and 1,292,968 shares at December 31, 2013 and December 31, 2012, respectively		(8,082	)		(7,027	)
Accumulated other comprehensive loss		(4,033	)		(4,039	)
Total stockholders’ equity		4,682			4,785
Total liabilities and stockholders’ equity	$	30,749		$	31,362

MATTERSIGHT CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited and in thousands)

	For the
	Twelve Months Ended
	December 31, 2013			December 31, 2012
Cash Flows from Operating Activities:
Net loss	$	(11,163	)	$	(15,221	)
Less: net income from discontinued operations		—			249
Net loss from continuing operations		(11,163	)		(15,470	)
Adjustments to reconcile net loss from continuing operations to net cash provided by (used in) operating activities:
Depreciation and amortization		3,516			3,500
Stock-based compensation		6,292			3,729
Severance and related costs		29			268
Change in fair value of warrant liability		125			—
Other		2			2
Changes in assets and liabilities:
Receivables		184			(27	)
Prepaid expenses		739			1,879
Other assets		(112	)		(50	)
Accounts payable		(29	)		(31	)
Accrued compensation and related costs		(217	)		(47	)
Unearned revenue		1,854			(4,592	)
Other liabilities		330			(177	)
Total adjustments		12,713			4,454
Net cash provided by (used in) continuing operations		1,550			(11,016	)
Net cash provided by discontinued operations		—			24
Net cash provided by (used in) operating activities		1,550			(10,992	)
Cash Flows from Investing Activities:
Capital expenditures and other		(1,233	)		(2,081	)
Patents and trademarks		(239	)		(79	)
Net cash used in continuing investing activities		(1,472	)		(2,160	)
Net cash used in discontinued investing activities		—			—
Net cash used in investing activities		(1,472	)		(2,160	)
Cash Flows from Financing Activities:
Proceeds from issuance of Common Stock, net		5,621			—
Proceeds from line of credit		2,400			3,691
Repayments from line of credit		(6,096	)		—
Principal payments under capital lease obligations		(2,117	)		(2,311	)
Acquisition of treasury stock		(1,055	)		(1,136	)
Proceeds from stock compensation and employee stock purchase plans, net		138			802
Proceeds from issuance of stock warrants		4			—
Fees from issuance of Common Stock		—			(49	)
Decrease in restricted cash		—			1,500
Purchase of shares of Series B Stock		—			(3,743	)
Payment of Series B Stock dividends		—			(595	)
Net cash used in continuing financing activities		(1,105	)		(1,841	)
Net cash used in discontinued financing activities		—			—
Net cash used in financing activities		(1,105	)		(1,841	)
Effect of exchange rate changes on cash and cash equivalents by continuing operations		—			4
Effect of exchange rate changes on cash and cash equivalents by discontinued operations		—			—
Effect of exchange rate changes on cash and cash equivalents		—			4
Decrease in cash and cash equivalents		(1,027	)		(14,989	)
Cash and cash equivalents, beginning of period		14,419			29,408
Cash and cash equivalents of continuing operations, end of period	$	13,392		$	14,419
Non-Cash Investing and Financing Transactions:
Capital lease obligations incurred	$	2,973		$	1,793
Capital equipment purchased on credit		2,973			1,793
Fair value of warrants classified as liability		785			—
Supplemental Disclosures of Cash Flow Information:
Interest paid	$	403		$	371

MATTERSIGHT CORPORATION

CALCULATION OF ADJUSTED EARNINGS MEASURE

(Unaudited and in thousands)

	For the						For the
	Three Months Ended						Twelve Months Ended
	Dec. 31, 2013			Dec. 31, 2012			Dec. 31, 2013			Dec. 31, 2012
GAAP — Operating loss	$	(1,203	)	$	(4,617	)	$	(10,748	)	$	(15,048	)
Add back (reduce) the effect of:
Stock-based compensation		1,337			881			6,292			3,729
Severance and related costs		—			—			154			693
Depreciation and amortization		687			932			3,516			3,500
Adjusted earnings measure — earnings (loss)	$	821		$	(2,804	)	$	(786	)	$	(7,126	)