Mattersight 8K Announces Second Quarter 2015 Results | SEC 5 Aug 15

Q2 2015

Earnings Webinar

August 5, 2015

Exhibit 99.2

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.

Mattersight

Corporation

Discussion Topics

•

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

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

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

Business

was

$49.0M

for

the

second

quarter,

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

Mattersight

Corporation

Q2 2015 Key Operating Metrics

Measurement

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%

bps

Year/Year Net Account Growth*

105%

122%

16%

Gross Margin

69%

73%

340 bps

Customer

Acquisition Cost (CAC) Ratio*

50%

141%

182%

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

Mattersight

Corporation

Bookings Trends

12.9

13.0

12.5

17.4

17.1

19.0

Q1 '14

Q2 '14

Q3 '14

Q4 '14

Q1 '15

Q2 '15

Rolling 4 Quarters ACV Bookings ($M)

Mattersight

Corporation

Revenue Trends

28.1

29.4

30.7

33.1

37.3

39.0

Q1 '14

Q2 '14

Q3 '14

Q4 '14

Q1 '15

Q2 '15

Annualized Revenues ($M)

Mattersight

Corporation

Book of Business Trends

32.8

35.7

38.0

42.9

45.3

49.0

Q1 '14

Q2 '14

Q3 '14

Q4 '14

Q1 '15

Q2 '15

Revs in

Deployment

Revenue

Annualized Book of Business ($M)

Mattersight

Corporation

Total Account Opportunity Trends

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

Mattersight

Corporation

Operating Model

Cash Expense Allocation of Each Dollar of Incremental Revenue

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%

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

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

Mattersight

Corporation

Recent Offering and Cash

•

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

Mattersight

Corporation

New Marcomm

•

Interactive ROI calculator

vetted against Forrester

calculations

•

7 client testimonials + 5

case studies

•

Rich video throughout

Mattersight

Corporation

TrustRadius Ratings & Reviews

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

Mattersight

Corporation

PR Traction: 2014 vs. 1H’15

Media Coverage

Contributed Articles

2014

2015

Mattersight

Corporation

2015 Outlook

•

33%-38% total revenue growth

•

38%-43% subscription revenue growth

•

30%-35% growth in our Book of Business metric

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

Mattersight Inactive 8-KMattersight Announces Second Quarter 2015 Results