Mattersight NOW Says It Will Have $12 M to $14 M In Q4 2017 Revenue…

…That is WAY ahead of everything else in the year — it looks unrealistic to me. Here is the press release.  [Until the SEC Form 10-Q files later this week or next, we will be unable to tell whether Mattersight needs a waiver from Private Bank on the EBITDA line. It is not clear that the press release calculation of adjusted EBITDA tracks the covenant definition — in the Private Bank’s lending agreement, on that score.]

So — Mattersight says it needs a huge blow out at the revenue line, in Q4 — just to meet its Q2 2017 guidance, as a very large telco deal (sourced through a third party consultant) is drawing out — in terms of “go live” date.

It still hasn’t “gone live” yet, even though the team predicted it would, in each of the last two quarters.

Look here:

Much of the “only” $3 million in loss is due to a sharp drop in sales and marketing spend; so it is likely NOT sustainable. Here’s to hoping for a huge Q 4 — but at this point, all Mattersight is offering is more… hope — not results.

More as I listen in to the call — scratch that; there were only three real questions on the call. Nothing beyond the release and slides was disclosed: it is a “wait and see” — for Q4 to be YYYYUUUUUGGEE... uh huh.

3 thoughts on “Mattersight NOW Says It Will Have $12 M to $14 M In Q4 2017 Revenue…”

  1. I’ve been away from the computer for a while, due to circumstances beyond my control, so this will be short and sweet:

    * Echo the author’s thoughts on revenue and costs, but a better result than expected. I’m not sure what this means down the road, but expecting something different from the past is unlikely to be sustainable.

    * They drew another $1.25 million on their long-term debt instrument.

    * They received another patent of extremely dubious value (“trending topics”? You’ve got to be kidding. Isn’t just counting words?) — needlessly pissing away cash. Someone stop them. Please.

    * The Austin office was recognized for being oh-so-excellent. Too bad the work product sucks.

    * They’re back on the hunt for more greater fools to part with their money.

    * Look for some massive executive bonus awards in early 2018 because nothing spells success like a string of 72 straight quarterly losses (18 years x 4 quarters, 2000 thru 2017)

    * Product development? I don’t see no stinking product developments.

    * I guess the annual conference is kaput.

    * Kelly Conway? Why is he still here? Get a gold-watch, give him a party, take away his security badge, and escort him to the door.

    1. Thanks Bob — good to “see” you again, if even for only a brief moment!

      I think your comment is dead-on: I think the dramatic drop in marketing expense is… likely driven by the killing off of the annual conference. That will negatively impact future quarters’ revenue, if we are to believe Mr. Conway’s long-chanted mantra that building the relationships and pipeline at this confab was mission critical.

      I guess it really. wasn’t.

      [When you next surface for air man, do check your anon. email — I’ve dropped an unrelated update is in there.]


      1. The decline in sales costs may be due to really unsuccessful sales efforts. The sales commissions are reported to be pretty significant, so if sales aren’t made no commissions get paid and total sales costs decline. This could be a BIG red flag.

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