Rosetta Stone 8-K Rosetta Stone Inc. Reports Fourth Quarter and Full Year 2010 Results and Appointment of Non-executive Chairman

Exhibit 99.3

Rosetta Stone Inc.

Business Metrics

(in thousands)

	Quarter-Ended										Quarter-Ended
	3/31/09		6/30/09		09/30/09		12/31/09		2009		3/31/10		6/30/10		9/30/10		12/31/10		2010
Bookings by Market
US Consumer	39,364		42,592		50,685		58,900		191,541		41,631		38,746		41,138		52,243		173,758
Worldwide Institutional	8,397		13,331		21,285		10,495		53,508		9,108		17,110		22,307		14,395		62,920
International Consumer	2,482		3,054		4,188		7,861		17,585		10,029		8,177		9,860		15,176		43,242
	50,243		58,977		76,158		77,256		262,634		60,768		64,033		73,305		81,814		279,920
YoY Growth (%)
US Consumer	39	%	13	%	4	%	8	%	13	%	6	%	-9	%	-19	%	-11	%	-9	%
Worldwide Institutional	70	%	51	%	75	%	27	%	56	%	8	%	28	%	5	%	37	%	18	%
International Consumer	15	%	65	%	90	%	178	%	94	%	304	%	168	%	135	%	93	%	146	%
Total	42	%	22	%	21	%	18	%	24	%	21	%	9	%	-4	%	6	%	7	%
% of Total Bookings
US Consumer	78	%	72	%	67	%	76	%	73	%	69	%	60	%	56	%	64	%	62	%
Worldwide Institutional	17	%	23	%	28	%	14	%	20	%	15	%	27	%	30	%	18	%	23	%
International Consumer	5	%	5	%	5	%	10	%	7	%	16	%	13	%	14	%	18	%	15	%
	100	%	100	%	100	%	100	%	100	%	100	%	100	%	100	%	100	%	100	%
Revenue by Market
US Consumer	39,348		41,899		51,254		59,255		191,756		41,407		38,748		36,902		44,516		161,573
Worldwide Institutional	8,461		11,548		11,869		11,328		43,206		11,793		14,249		14,316		14,247		54,605
International Consumer	2,475		3,013		4,093		7,728		17,309		9,814		7,651		9,708		15,517		42,690
	50,284		56,460		67,216		78,311		252,271		63,014		60,648		60,926		74,280		258,868
YoY Growth (%)													��
US Consumer	44	%	13	%	5	%	8	%	14	%	5	%	-8	%	-28	%	-25	%	-16	%
Worldwide Institutional	36	%	30	%	32	%	35	%	33	%	39	%	23	%	21	%	26	%	26	%
International Consumer	21	%	65	%	89	%	168	%	94	%	297	%	154	%	137	%	101	%	147	%
Total	41	%	18	%	12	%	18	%	20	%	25	%	7	%	-9	%	-5	%	3	%
% of Total Revenue
US Consumer	78	%	74	%	76	%	76	%	76	%	66	%	64	%	61	%	60	%	62	%
Worldwide Institutional	17	%	21	%	18	%	14	%	17	%	19	%	23	%	23	%	19	%	21	%
International Consumer	5	%	5	%	6	%	10	%	7	%	15	%	13	%	16	%	21	%	17	%
	100	%	100	%	100	%	100	%	100	%	100	%	100	%	100	%	100	%	100	%

1

Rosetta Stone Inc.

Business Metrics

(in thousands)

	Quarter-Ended															Quarter-Ended
	3/31/09			6/30/09			09/30/09			12/31/09			2009			3/31/10			6/30/10			9/30/10			12/31/10			2010
Global Consumer Revenue by Channel
DTC	24,946			26,355			29,408			35,080			115,789			31,025			25,142			27,500			34,497			118,164
Kiosk	8,222			9,316			9,832			13,195			40,565			9,391			8,683			7,392			9,533			34,999
Global Retail	8,655			9,241			16,107			18,708			52,711			10,805			12,574			11,718			16,003			51,100
	41,823			44,912			55,347			66,983			209,065			51,221			46,399			46,610			60,033			204,263
YoY Growth (%)
DTC	32		%	27		%	10		%	15		%	20		%	24		%	-5		%	-6		%	-2		%	2		%
Kiosk	34		%	16		%	-2		%	9		%	12		%	14		%	-7		%	-25		%	-28		%	-14		%
Global Retail	102		%	-9		%	14		%	22		%	20		%	25		%	36		%	-27		%	-14		%	-3		%
	42		%	16		%	9		%	16		%	18		%	22		%	3		%	-16		%	-10		%	-2		%
% Revenue by Channel
DTC	59		%	59		%	53		%	52		%	55		%	61		%	54		%	59		%	57		%	58		%
Kiosk	20		%	21		%	18		%	20		%	20		%	18		%	19		%	16		%	16		%	17		%
Global Retail	21		%	20		%	29		%	28		%	25		%	21		%	27		%	25		%	27		%	25		%
Total	100		%	100		%	100		%	100		%	100		%	100		%	100		%	100		%	100		%	100		%
Unit Metrics(1)
Consumer unit volume (in thousands)	120.3			124.1			156.7			195.6			596.7			132.1			120.0			128.3			173.4			553.8
Average Net Revenue per Unit	$	348		$	368		$	350		$	341		$	350		$	391		$	391		$	397		$	389		$	392
YoY Unit Metrics Growth (%)
Consumer unit volume	9		%	-9		%	-2		%	12		%	3		%	10		%	-3		%	-18		%	-11		%	-7		%
Consumer average sales price per unit	26		%	27		%	10		%	4		%	14		%	12		%	6		%	14		%	14		%	12		%
# of Kiosks (end of period)
US	154			172			207			201			201			190			186			180			173			173
Europe	3			6			10			9			9			9			10			13			15			15
Asia Pacific	4			5			7			32			32			41			50			64			71			71
Total # of Kiosks (end of period)	161			183			224			242			242			240			246			257			259			259

(1)  Unit metrics have been adjusted from prior presentations to reflect the reclassification of home-school sales from the institutional channel to the consumer channels.

2