Well now — a bit of perspective, then: if we include the three years of audited historical financial results that were prepared in order to spin what was then eLoyalty off to the public shareholders, in February 2000, we have now reached over 20 years this year of this company (though renamed) reporting audited GAAP losses per share, from continuing operations.
I will confidently predict the string will remain unbroken into mid-2019 — minimium — given the latest disclosed travails. More specifically, for Q2 2017 we expect GAAP LPS to hit $0.22 per share (see Bob’s fine “realistic case” model below left — click to enlarge it).
I decided to post today though, primarily to mention that the goofy notion, floated back in late-February 2017 (i.e., at the 20 year anniversary I refer to above) that Mattersight might partner with Amazon Echo — or Alexa, or Apple’s Siri, even less probably — is now pretty much a dead letter.
Based on this VentureBeat report overnight, we learn that Alexa has changed its “ad rules” — to prevent third parties from using the sound and feel of Alexa — in ads.
This highlights the danger of building entire business models that are dependent on the “permission” of a powerful first mover in a given space. Think here of Mattersight, and its three or four gargantuan clients.
Whenever the client doesn’t love the way the engagement is going, Mattersight must rip up the old contract, and give away lots more “free stuff“, in order to avoid losing the relationship.
New CFO (and board member) Mullen flat out admitted this, on the Q1 2017 call.
So you are now well-warned. And to complete the record — here’s the bit of that VentureBeat story which mentions hapless lil’ Mattersight (as an entirely tangential footnote):
…Companies like VoiceLabs and Mattersight, who wants to create personality profiles for the users of voice apps based on their word usage, have expressed interest in advertising with intelligent assistants, but for Siri, Alexa, and other assistants that want to be part of everything you do in life, advertising has been a somewhat prickly subject.
In April, a Burger King commercial that invasively, purposely said “OK Google” to set off Google Homes all over the place sent the internet into a tizzy. A Beauty and the Beast ad also had a negative response….
Y A W N — no news there. Trying to reinvent itself — again — twenty three years later (the 23 years descriptor relies on the fact that it was incorporated in 1994 — by its then parent, and that parent has been renamed… eLoyalty). Ugh.