Q2 2017 Ends In Under 15 Days — Mattersight’s Been At This For Over 20 (Or 23!) Years… With No Results.

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.

One thought on “Q2 2017 Ends In Under 15 Days — Mattersight’s Been At This For Over 20 (Or 23!) Years… With No Results.”

  1. I did some research a little while ago and went back through the SEC filings from 2000 through 2016 and compiled the executive compensation for Conway, the named executive officers and an estimate for all the non-officer “VPs”.

    $ 26M for Kelly Conway

    $ 66M + for all named executive officers (including Conway)

    $272M+ estimated for all VP-level leaders (not Conway or named executive officers

    That makes it at least $338M for the “Leadership and Executive” talent that has brought us the massive accrued deficit that is the only real asset the company has.

    Of particular note is the constantly changing cast of characters listed as executive officers under Conway’s leadership. Other than Danson and Gustafson, few have lasted long. It’s unclear how many of these left on their on accord or were shown the door. Remember these were hand-picked by Conway and approved by Coxe and the board of directors. The board of directors has remained fairly consistent over the years. Their ability to select or develop leaders that would enable success has been dismal, at best.

    Both Conway and Coxe need to share responsibility for the horrendous mess that is ELOY and MATR and the long-serving board members should not escape scrutiny or blame. I don’t see a path forward to success with these people remaining in their current positions. If they could have made a positive impact for shareholders, they would have done so by now.

    I’ll close this by saying, until they make any bonus of any kind for any employee dependent on the company making a true, lasting GAAP profit, nothing will change. Any new money will merely be flushed down the drain.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.