Based on the name itself, you can more or less guess what it does. The app now apparently collects data on you, such as logging the apps that you’ve installed, the amount of time spent on each app, open intent and even collects location data. The collected data is said to be then sent to a cloud where HTC or other companies will be able to use the information for their own purposes.
Based on the data collected it appears that the data will most probably be used to filter content and collect behavioral data on apps – what they’re used for and how long they’re used for which will most likely end up being used for marketing purposes. Either way it feels kind of creepy, and the kicker is that according to your phone’s legal notice (Settings > About Phone > Legal > HTC Legal), you have agreed to this.
The good news is that TrevE and Team Synergy have released a ROM that has removed the spyware, but that would mean you would have to root your device if you haven’t already. Head on down to XDA’s forums for more information about the ROM and how to install it.