…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.
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.