Exhibit 99.1
Rosetta Stone Inc. Reports Fourth Quarter 2013 Results
47% Growth in Enterprise and Education Business Demonstrates Momentum of Transformation
ARLINGTON, Va.—(BUSINESS WIRE)— Rosetta Stone Inc. (NYSE:RST), a leading provider of technology-based language-learning, reading and brain fitness solutions, today announced financial results for the fourth quarter of 2013, as summarized below:
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| Three Months Ended |
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US$ thousands |
| December 31, |
| % |
| ||||
except per-share data |
| 2013 |
| 2012 |
| change |
| ||
|
|
|
| (As Adjusted) * |
|
|
| ||
Total revenue |
| $ | 77,711 |
| $ | 78,701 |
| -1 | % |
Total bookings |
| $ | 83,987 |
| $ | 84,327 |
| 0 | % |
|
|
|
|
|
|
|
| ||
Net income (loss) |
| $ | (3,848 | ) | $ | 4,635 |
| -183 | % |
Net income (loss) per share |
| $ | (0.18 | ) | $ | 0.22 |
| -182 | % |
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Adjusted EBITDA (new definition) |
| $ | 7,899 |
| $ | 14,753 |
| -46 | % |
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| ||
Pro forma revenue |
| $ | 81,663 |
| $ | 78,701 |
| 4 | % |
Pro forma adjusted EBITDA |
| $ | 6,020 |
| $ | 9,767 |
| -38 | % |
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Pro forma adjusted net income |
| $ | 1,101 |
| $ | 3,761 |
| -71 | % |
Pro forma adjusted net income per share |
| $ | 0.05 |
| $ | 0.17 |
| -71 | % |
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|
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Cash flow from operations |
| $ | 11,802 |
| $ | 23,409 |
| -50 | % |
Purchases of property and equipment |
| $ | (2,526 | ) | $ | (1,248 | ) | 102 | % |
Free cash flow |
| $ | 9,276 |
| $ | 22,161 |
| -58 | % |
*Certain amounts have been adjusted for the retrospective change in accounting principle for sales commissions.
Definitions and reconciliations for all non-GAAP measures are provided in this press release.
“The transformation that we have been undertaking at Rosetta Stone really started to gather momentum in the fourth quarter. Recent efforts focusing on our Enterprise and Education (“E&E”) segment began to evidence themselves with 47% E&E bookings growth including the addition of Lexia,” said Steve Swad, President and Chief Executive Officer of Rosetta Stone. Swad continued, “We also experienced 7% growth in the North America direct-to-consumer (“DTC”) channel, our largest, which partially offset a 23% decline in our North America retail channel. We also furthered our strategy in the fourth quarter by launching a new product, Advanced English for Business, in our E&E segment, announced the acquisitions of Tell Me More and Fit Brains (Vivity Labs), which will broaden and diversify our product portfolio. We also repurchased one million shares of stock.”
“Overall, 2013 was an active and transformational year for Rosetta Stone. We remade our product development capabilities, launched new products and apps, deepened our commitment to language while also moving beyond language to extend our reach. We continued our shift to more digital and mobile product delivery, and moved away from lower-yielding channels like kiosks, while at the same time investing in our E&E business. We believe that all of these actions have positioned Rosetta Stone to deliver higher quality top line growth and margin enhancement over the next couple of years,” concluded Swad.
Fourth Quarter 2013 Operational and Financial Highlights
Bookings: Total consolidated bookings of $84.0 million decreased slightly from $84.3 million in the year-ago period. North American Consumer segment (“NA Consumer”) bookings decreased 9% to $52.6 million from $57.9 million, reflecting the absence of $3.4 million of bookings from our kiosk channel, which was closed early in the second quarter of 2013 and a decrease in retail channel bookings. Bookings from the direct-to-consumer channel grew at a mid-single digit percentage rate, partially offsetting the declines from retail and kiosk. Excluding the kiosk channel, NA Consumer bookings decreased 3% year-over-year. Rest of World Consumer segment (“ROW”) bookings declined 27%, primarily reflecting a continuation of declines in Asia, partially offset by growth in Germany. Bookings in the Global Enterprise & Education (“E&E”) segment increased 47% compared with a year-ago. Core E&E bookings, which exclude bookings from Lexia and certain de-emphasized network product, increased 24% year-over-year. Bookings from Lexia registered 18% pro forma growth in the fourth quarter compared with the fourth quarter of 2012.
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| Three Months Ended |
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|
| December 31, |
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US$ thousands |
| 2013 |
| 2012 |
| % change |
| ||
Bookings from: |
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North America Consumer |
| $ | 52,620 |
| $ | 57,870 |
| -9 | % |
Rest of World Consumer |
| 7,300 |
| 10,034 |
| -27 | % | ||
Total Consumer |
| 59,920 |
| 67,904 |
| -12 | % | ||
Global Enterprise and Education |
| 24,067 |
| 16,423 |
| 47 | % | ||
Total |
| $ | 83,987 |
| $ | 84,327 |
| 0 | % |
Revenue: Total revenue of $77.7 million decreased 1% year-over-year from $78.7 million. NA Consumer revenue increased 2%, reflecting the absence of sales from the kiosk channel and decreases in the retail channel, partially offset by growth in the direct-to-consumer channel. Excluding kiosk, core NA Consumer revenue increased 9% year-over-year. ROW Consumer revenue decreased 29% due mainly to decreases in Japan and Korea, partially offset by growth in Germany. E&E revenue grew 5% in the fourth quarter compared with a year ago.
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| Three Months Ended |
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|
| December 31, |
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US$ thousands |
| 2013 |
| 2012 |
| % change |
| ||
Revenue from: |
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|
|
|
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North America Consumer |
| $ | 53,999 |
| $ | 52,946 |
| 2 | % |
Rest of World Consumer |
| 7,207 |
| 10,088 |
| -29 | % | ||
Total Consumer |
| 61,206 |
| 63,034 |
| -3 | % | ||
Global Enterprise and Education |
| 16,505 |
| 15,667 |
| 5 | % | ||
Total |
| $ | 77,711 |
| $ | 78,701 |
| -1 | % |
· Adjusted EBITDA: Note: In the fourth quarter, the Company changed its definition of Adjusted EBITDA. Adjusted EBITDA, as referred to in this release, starts with the same definition that we had previously but adds back the change in deferred revenue excluding increase in deferred revenue from acquisitions and subtracts the change in deferred commissions to arrive at the new definition. Please see the definitions below for a complete definition of Adjusted EBITDA.
Adjusted EBITDA in the fourth quarter was $7.9MM vs. $14.8MM a year ago. The decrease in the quarter is due to a limited number of factors.
First, fourth quarter 2013 NA retail bookings decreased $4.3 million versus fourth quarter 2012. Second, media spend in North American consumer increased $3.0 million, helping to drive higher traffic to our website and an 11% increase in product units. Finally, we spent about $3.2 million more on R&D than in the year-ago period. This reflected additional investment to develop new products as well as additional spending related to the inclusion of Livemocha and Lexia.
· Balance Sheet and Cash Flow: Cash at the end of the year was $98.8 million, a $14.3 million decrease from $113.1 million at September 30, 2013. The decrease in cash was mainly due to the pending acquisition of Vivity Labs for which $12.3 million in cash was placed in escrow (included in restricted cash) as of December 31, 2013 and the repurchase of 1 million shares of stock for $11.4 million, partially offset by free cash flow of $9.3 million in the quarter. The balance sheet continues to be solid with no debt. Deferred revenue increased $6.3 million in the quarter to $78.9 million. Free cash flow in the fourth quarter was $9.3 million compared with $22.2 million ($13.6 million before a tax refund of $8.6 million) a year ago. The decline in free
cash flow reflects the lower Adjusted EBITDA and a decrease in working capital, an increase in capital expenditures to $2.5 million in the fourth quarter compared with $1.2 million a year ago. In addition, in the first quarter of 2014 we paid $28 million in cash related to the acquisition of Tell Me More.
Guidance
The company is providing the following guidance for the full year 2014:
FY 2014 Guidance
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| Amount/Range |
| Commentary |
Consolidated Bookings |
| $315MM to $325MM |
| Mid-single digit % growth |
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Adjusted EBITDA |
| $18MM to $22MM |
| ~5% margin |
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Shares outstanding |
| ~22MM |
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Capital Expenditures |
| $10MM to $14MM |
| Acquisitions & Acquisition Integrations |
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Long-term effective tax rate |
| 39% |
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Non-GAAP Financial Measures
This press release contains several non-GAAP financial measures.
· Bookings represent executed sales contracts received by the Company that are either recorded immediately as revenue or as deferred revenue.
· Adjusted EBITDA is GAAP net income/(loss) plus interest income and expense, income tax benefit and expense, depreciation, amortization and stock-based compensation expense plus the change in deferred revenue excluding increase in deferred revenue from acquisitions less the change in deferred commissions. In addition, Adjusted EBITDA excludes any items related to the litigation with Google Inc., restructuring costs and transaction and other costs associated with mergers and acquisitions as well as all adjustments related to recording the non-cash tax valuation allowance for deferred tax assets. Adjusted EBITDA for prior periods has been revised to conform to current definition.
· Free cash flow is cash flow from operations less cash used in purchases of property and equipment.
· Pro Forma Revenue is GAAP revenue plus the purchase accounting impact on acquired deferred revenue.
· Pro forma adjusted EBITDA is GAAP net income/(loss) plus interest income and expense, income tax benefit and expense, depreciation, amortization and stock-based compensation expenses. Pro forma adjusted EBITDA excludes any items related to the litigation with Google Inc., restructuring costs and transaction and other costs associated with mergers and acquisitions as
well as all adjustments related to recording the non-cash tax valuation allowance for deferred tax assets, plus the purchase accounting impact on acquired deferred revenue less the purchase accounting impact on acquired deferred commissions. Pro forma adjusted EBITDA for prior periods has been revised to conform to current definition.
· Pro forma adjusted net income/(loss) and pro forma adjusted net income (loss) per share exclude the impact of items related to its litigation with Google Inc., restructuring costs and transaction and other costs associated with mergers and acquisitions as well as all adjustments related to recording the non-cash tax valuation allowance for deferred tax assets, plus the purchase accounting impact on acquired deferred revenue less the purchase accounting impact on acquired deferred commissions. Pro forma adjusted net income/(loss) and pro forma adjusted EPS for prior periods has been revised to conform to current definition.
Management believes that these non-GAAP measures of financial results provide useful information to investors regarding certain financial and business trends relating to the Company’s financial condition and results of operations. Management uses these non-GAAP measures to compare the Company’s performance to that of prior periods for trend analyses, for purposes of determining executive incentive compensation, and for budgeting and planning purposes. These measures are used in monthly financial reports prepared for management and in quarterly financial reports presented to the Company’s board of directors. Management believes that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing the Company’s financial measures with other software and education-technology companies, many of which present similar non-GAAP financial measures to investors.
Management typically excludes the amounts described below when evaluating the Company’s operating performance and believes that the resulting non-GAAP measures are useful to investors and financial analysts in assessing the Company’s operating performance, due to the following factors:
· Amortization of Acquired Intangibles. Amortization costs and the related tax effects are fixed at the time of an acquisition, and then amortized over a period of several years after the acquisition and generally cannot be changed or influenced by management after the acquisition.
· Stock-based Compensation. Although stock-based compensation is an important aspect of compensation of the Company’s employees and executives, stock-based compensation expense is generally fixed at the time of grant, then amortized over a period of several years after the grant of the stock-based instrument, and generally cannot be changed or influenced by management after the grant. In addition, the impact of shares granted under these plans is considered in the Company’s EPS calculation to the extent the shares are dilutive.
· Bookings. Although revenue is an important aspect of measuring Company performance, the Company believes total sales bookings can be a valuable indicator of the Company’s performance. The Company is transitioning to a greater amount of subscription sales, which results in an increasing portion of sales being recorded as deferred revenue.
Management does not consider these non-GAAP measures in isolation or as an alternative to financial measures determined in accordance with GAAP. The principal limitation of these non-GAAP financial measures is that they exclude significant expenses and income that are required by GAAP to be recorded in the Company’s financial statements. In addition, they are subject to
inherent limitations, because they reflect the exercise of judgments by management about which expenses and items of income are excluded from these non-GAAP financial measures and may not be calculated in the same manner as other companies’ similarly titled non-GAAP measures.
In order to compensate for these limitations, management presents its non-GAAP financial measures in connection with its GAAP results. The company urges investors to review the reconciliation of its non-GAAP financial measures to the comparable GAAP financial measures, which it includes in press releases announcing earnings information, including this press release, and not to rely on any single financial measure to evaluate the company’s business.
Reconciliation tables of the most comparable GAAP financial measures to the non-GAAP measures used in this press release are included at the end of this release.
Investor Day Webcast
This news release and the accompanying tables should be read in conjunction with the additional content that is available on the company’s website.
In conjunction with this announcement, Rosetta Stone will host an Investor Day webcast today at 9:00 a.m. eastern time (ET) during which time there will be a discussion of the results and the company’s business outlook.
The webcast will be available live on the Investor Relations page of the company’s website at http://investors.rosettastone.com.
A recorded replay of the webcast will be available on the “Investor Relations” page of the company’s web site http://investors.rosettastone.com after the live discussion.
About Rosetta Stone
Rosetta Stone Inc. (NYSE: RST) is dedicated to changing the way the world learns. The company’s innovative technology-driven language and reading solutions are used by thousands of schools, businesses, government organizations and millions of individuals around the world. Founded in 1992, Rosetta Stone pioneered the use of interactive software to accelerate language learning. Today the company offers courses in 30 languages, from the most commonly spoken (such as English, Spanish and Mandarin) to the less prominent (including Swahili, Swedish and Tagalog). In 2013, Rosetta Stone expanded beyond language and deeper into education-technology with its acquisitions of Livemocha, Lexia Learning, Vivity Labs, and Tell Me More. Rosetta Stone is based in Arlington, VA, and has offices around the world.
Cautionary Statement Regarding Forward-Looking Statements
Certain statements in this press release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including our guidance for future financial performance and operating targets, and our long-term growth prospects. In this context, forward-looking statements often address our expected future business and financial performance, and
often contain words such as “project,” “believe,” “plan,” “expect,” “anticipate,” “estimate,” “intend,” “should,” “would,” “could,” “potentially,” “seek,” “may,” “likely,” “will,” “financial outlook,” “guidance,” “strategy,” or “continue.” These forward-looking statements reflect the company’s current views with respect to future events and are subject to certain risks, uncertainties, and assumptions. A number of important factors could cause actual results or events to differ materially from those indicated by such forward-looking statements, including demand for language learning solutions; the advantages of our products, services, technology, brand and business model as compared to others; our strategic focus; our ability to maintain effective internal controls or to remediate material weaknesses; our cash needs and expectations regarding cash flow from operations; our product development plans; the appeal and efficacy of our products and services; our expectations regarding capturing lifetime value and a broader range of market segments through such offerings; our plans regarding expansion of our marketing initiatives and sales force; our international operations and growth plans; our plans regarding our retail relationships; our plans regarding our E&E business; the impact of any revisions to our pricing strategy; our ability to manage and grow our business and execute our business strategy; our financial performance; our actions to realign our cost structure and revitalize our go-to-market strategy; our plans to transition our distribution to more online in the Consumer business; our mergers and acquisitions plans; our ability to successfully integrate Lexia, Livemocha, FitBrains (Vivity Labs) and Tell Me More into our business; adverse trends in general economic conditions and the other factors described more fully in the company’s filings with the U.S. Securities and Exchange Commission (SEC), including the company’s annual report on Form 10-K for the fiscal year ended December 31, 2012, which is on file with the SEC. The company assumes no obligation to update the information in this communication, except as otherwise required by law. Readers are cautioned not to place undue reliance on these forward-looking statements that speak only as of the date hereof.
ROSETTA STONE INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except per share amounts)
(unaudited)
|
| December |
| December |
| ||
|
| 2013 |
| 2012 |
| ||
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| (As Adjusted)* |
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Assets |
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Current assets: |
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Cash and cash equivalents |
| $ | 98,825 |
| $ | 148,190 |
|
Restricted cash |
| 12,424 |
| 73 |
| ||
Accounts receivable (net of allowance for doubtful accounts of $1,000 and $1,297, respectively) |
| 60,342 |
| 49,946 |
| ||
Inventory |
| 6,639 |
| 6,581 |
| ||
Prepaid expenses and other current assets |
| 12,294 |
| 8,681 |
| ||
Income tax receivable |
| 197 |
| 1,104 |
| ||
Total current assets |
| 190,721 |
| 214,575 |
| ||
|
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|
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|
| ||
Property and equipment, net |
| 17,766 |
| 17,213 |
| ||
Goodwill |
| 50,059 |
| 34,896 |
| ||
Intangible assets, net |
| 29,006 |
| 10,825 |
| ||
Other assets |
| 3,224 |
| 1,937 |
| ||
Total assets |
| $ | 290,776 |
| $ | 279,446 |
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Liabilities and stockholders’ equity |
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Current liabilities: |
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Accounts payable |
| $ | 10,326 |
| $ | 6,064 |
|
Accrued compensation |
| 16,380 |
| 16,830 |
| ||
Other current liabilities |
| 42,192 |
| 36,387 |
| ||
Deferred revenue |
| 67,173 |
| 59,195 |
| ||
Total current liabilities |
| 136,071 |
| 118,476 |
| ||
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|
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Deferred revenue |
| 11,684 |
| 4,221 |
| ||
Deferred income taxes |
| 9,022 |
| 8,400 |
| ||
Other long-term liabilities |
| 2,756 |
| 155 |
| ||
Total liabilities |
| 159,533 |
| 131,252 |
|
Commitments and contingencies |
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Stockholders’ equity: |
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Preferred stock, $0.001 par value; 10,000 and 10,000 authorized; zero and zero shares issued and outstanding December 31, 2013 and December 31, 2012, respectively |
| — |
| — |
| ||
Non-designated common stock, $0.00005 par value, 190,000 and 190,000 shares authorized, 22,588 and 21,951 shares issued and 21,588 and 21,951 shares outstanding at December 31, 2013 and December 31, 2012, respectively |
| 2 |
| 2 |
| ||
Additional paid-in capital |
| 171,123 |
| 160,693 |
| ||
Accumulated loss |
| (29,292 | ) | (13,158 | ) | ||
Accumulated other comprehensive income |
| 845 |
| 657 |
| ||
Treasury stock, at cost, 1,000 shares at December 31, 2013 and zero shares at December 31, 2012 |
| (11,435 | ) | — |
| ||
Total stockholders’ equity |
| 131,243 |
| 148,194 |
| ||
Total liabilities and stockholders’ equity |
| $ | 290,776 |
| $ | 279,446 |
|
* Certain amounts have been adjusted for the retrospective change in accounting principle for sales commissions.
ROSETTA STONE INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(unaudited)
|
| Three Months Ended |
| Twelve Months Ended |
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|
| December 31, |
| December 31, |
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|
| 2013 |
| 2012 |
| 2013 |
| 2012 |
| ||||
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| (As Adjusted)* |
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| (As Adjusted)* |
| ||||
Revenue: |
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Product |
| $ | 49,705 |
| $ | 53,384 |
| $ | 156,792 |
| $ | 180,919 |
|
Subscription and service |
| 28,006 |
| 25,317 |
| 107,853 |
| 92,322 |
| ||||
Total revenue |
| 77,711 |
| 78,701 |
| 264,645 |
| 273,241 |
| ||||
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Cost of revenue: |
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Cost of product revenue |
| 10,928 |
| 9,596 |
| 32,191 |
| 33,684 |
| ||||
Cost of subscription and service revenue |
| 3,554 |
| 3,335 |
| 13,523 |
| 15,226 |
| ||||
Total cost of revenue |
| 14,482 |
| 12,931 |
| 45,714 |
| 48,910 |
| ||||
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Gross profit |
| 63,229 |
| 65,770 |
| 218,931 |
| 224,331 |
| ||||
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Operating expenses |
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Sales and marketing |
| 41,200 |
| 40,364 |
| 146,104 |
| 150,882 |
| ||||
Research and development |
| 8,747 |
| 5,510 |
| 33,995 |
| 23,453 |
| ||||
General and administrative |
| 16,223 |
| 14,211 |
| 56,432 |
| 55,262 |
| ||||
Lease abandonment |
| 7 |
| — |
| 842 |
| — |
| ||||
Total operating expenses |
| 66,177 |
| 60,085 |
| 237,373 |
| 229,597 |
| ||||
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(Loss) income from operations |
| (2,948 | ) | 5,685 |
| (18,442 | ) | (5,266 | ) | ||||
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Other income and (expense): |
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Interest income |
| 12 |
| 46 |
| 117 |
| 187 |
| ||||
Interest expense |
| (7 | ) | — |
| (61 | ) | — |
| ||||
Other income (expense) |
| 263 |
| 74 |
| 368 |
| 3 |
| ||||
Total other income (expense) |
| 268 |
| 120 |
| 424 |
| 190 |
| ||||
|
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(Loss) income before income taxes |
| (2,680 | ) | 5,805 |
| (18,018 | ) | (5,076 | ) | ||||
Income tax provision (benefit) |
| 1,168 |
| 1,170 |
| (1,884 | ) | 28,909 |
| ||||
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Net (loss) income |
| $ | (3,848 | ) | $ | 4,635 |
| $ | (16,134 | ) | $ | (33,985 | ) |
|
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Net (loss) income per share: |
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Basic |
| $ | (0.18 | ) | $ | 0.22 |
| $ | (0.75 | ) | $ | (1.61 | ) |
Diluted |
| $ | (0.18 | ) | $ | 0.21 |
| $ | (0.75 | ) | $ | (1.61 | ) |
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Common shares and equivalents outstanding: |
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Basic weighted average shares |
| 21,353 |
| 21,166 |
| 21,528 |
| 21,045 |
| ||||
Diluted weighted average shares |
| 21,353 |
| 21,828 |
| 21,528 |
| 21,045 |
|
* Certain amounts have been adjusted for the retrospective change in accounting principle for sales commissions.
ROSETTA STONE INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
|
| Three Months Ended |
| Twelve Months Ended |
| ||||||||
|
| December 31, |
| December 31, |
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|
| 2013 |
| 2012 |
| 2013 |
| 2012 |
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| (As |
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| (As |
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Cash Flows From Operating Activities: |
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Net (loss) income |
| $ | (3,848 | ) | $ | 4,635 |
| $ | (16,134 | ) | $ | (33,985 | ) |
Adjustments to reconcile net (loss) income to cash provided by operating activities, net of business acquisitions |
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Stock-based compensation expense |
| 3,012 |
| 1,801 |
| 9,241 |
| 8,009 |
| ||||
Bad debt expense |
| 738 |
| 485 |
| 1,420 |
| 1,820 |
| ||||
Depreciation and amortization |
| 2,630 |
| 1,847 |
| 9,635 |
| 8,077 |
| ||||
Deferred income tax provision (benefit) |
| 658 |
| 107 |
| (3,869 | ) | 25,953 |
| ||||
Loss on disposal of equipment |
| 32 |
| 31 |
| 278 |
| 783 |
| ||||
Net change in: |
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Restricted cash |
| (28 | ) | (14 | ) | (37 | ) | 1 |
| ||||
Accounts receivable |
| (15,149 | ) | (10,840 | ) | (9,477 | ) | 309 |
| ||||
Inventory |
| 398 |
| 184 |
| (108 | ) | 185 |
| ||||
Prepaid expenses and other current assets |
| (1,918 | ) | 504 |
| (3,511 | ) | 1,165 |
| ||||
Income tax receivable |
| 436 |
| 8,595 |
| 827 |
| 6,515 |
| ||||
Other assets |
| (18 | ) | 243 |
| (1,680 | ) | 166 |
| ||||
Accounts payable |
| 2,741 |
| (863 | ) | 3,702 |
| (1,240 | ) | ||||
Accrued compensation |
| 3,283 |
| 3,617 |
| (897 | ) | 5,093 |
| ||||
Other current liabilities |
| 12,342 |
| 7,325 |
| 4,250 |
| 635 |
| ||||
Excess tax benefit from stock options exercised |
| — |
| — |
| — |
| — |
| ||||
Other long-term liabilities |
| 152 |
| (55 | ) | 481 |
| (99 | ) | ||||
Deferred revenue |
| 6,341 |
| 5,807 |
| 13,947 |
| 11,514 |
| ||||
Net cash provided by operating activities |
| 11,802 |
| 23,409 |
| 8,068 |
| 34,901 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Cash Flows From Investing Activities: |
|
|
|
|
|
|
|
|
| ||||
Purchases of property and equipment |
| (2,526 | ) | (1,248 | ) | (8,941 | ) | (4,187 | ) | ||||
Proceeds from (purchases of) available-for-sale securities |
| — |
| — |
| — |
| 9,711 |
| ||||
Increase in restricted cash for Vivity acquisition |
| (12,314 | ) | — |
| (12,314 | ) | — |
| ||||
Acquisitions, net of cash acquired |
| — |
| — |
| (25,675 | ) | — |
| ||||
Net cash (used in) provided by investing activities |
| (14,840 | ) | (1,248 | ) | (46,930 | ) | 5,524 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Cash Flows From Financing Activities: |
|
|
|
|
|
|
|
|
| ||||
Proceeds from the exercise of stock options |
| 78 |
| 32 |
| 2,457 |
| 862 |
| ||||
Repurchase of shares from exercised stock options |
| — |
| — |
| (1,040 | ) | — |
| ||||
Proceeds from equity offering, net of issuance costs |
| — |
| — |
| (228 | ) | — |
| ||||
Purchase of treasury stock |
| (11,435 | ) | — |
| (11,435 | ) | — |
| ||||
Payments under capital lease obligations |
| (28 | ) | (210 | ) | (241 | ) | (215 | ) | ||||
Net cash (used in) provided by financing activities |
| (11,385 | ) | (178 | ) | (10,487 | ) | 647 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
(Decrease) increase in cash and cash equivalents |
| (14,423 | ) | 21,983 |
| (49,349 | ) | 41,072 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Effect of exchange rate changes in cash and cash equivalents |
| 144 |
| 161 |
| (16 | ) | 602 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Net (decrease) increase in cash and cash equivalents |
| (14,279 | ) | 22,144 |
| (49,365 | ) | 41,674 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Cash and cash equivalents—beginning of period |
| 113,104 |
| 126,046 |
| 148,190 |
| 106,516 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Cash and cash equivalents—end of period |
| $ | 98,825 |
| $ | 148,190 |
| $ | 98,825 |
| $ | 148,190 |
|
* Certain amounts have been adjusted for the retrospective change in accounting principle for sales commissions.
ROSETTA STONE INC.
Reconciliation of GAAP Net Income (Loss) to Adjusted Net Income (Loss) and Pro Forma Adjusted Net Income (Loss)
(in thousands, except per share amounts)
(unaudited)
|
| Three Months Ended |
| Twelve Months Ended |
| ||||||||
|
| December 31, |
| December 31, |
| ||||||||
|
| 2013 |
| 2012 |
| 2013 |
| 2012 |
| ||||
|
|
|
| (As |
|
|
| (As |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
GAAP net income (loss) |
| $ | (3,848 | ) | $ | 4,635 |
| $ | (16,134 | ) | $ | (33,985 | ) |
|
|
|
|
|
|
|
|
|
| ||||
Items related to litigation with Google, Inc., restructuring and other related costs, and acquisition costs |
| 838 |
| 360 |
| 6,681 |
| 3,752 |
| ||||
Income tax adjustments ** |
| 1,886 |
| (1,234 | ) | 2,537 |
| 29,425 |
| ||||
Adjusted net income (loss) *** |
| $ | (1,124 | ) | $ | 3,761 |
| $ | (6,916 | ) | $ | (808 | ) |
|
|
|
|
|
|
|
|
|
| ||||
Purchase accounting impact on acquired deferred revenue |
| 3,952 |
| — |
| 7,169 |
| — |
| ||||
Purchase accounting impact on acquired deferred commissions |
| (1,727 | ) | — |
| (2,938 | ) | — |
| ||||
Pro forma adjusted net income (loss) **** |
| $ | 1,101 |
| $ | 3,761 |
| $ | (2,685 | ) | $ | (808 | ) |
|
|
|
|
|
|
|
|
|
| ||||
GAAP net income (loss) per share |
| $ | (0.18 | ) | $ | 0.21 |
| $ | (0.75 | ) | $ | (1.61 | ) |
Items related to litigation with Google, Inc. restructuring and other related costs |
| 0.04 |
| 0.02 |
| 0.31 |
| 0.18 |
| ||||
Income tax adjustments ** |
| 0.09 |
| (0.06 | ) | 0.12 |
| 1.40 |
| ||||
Adjusted net income (loss) per share *** |
| $ | (0.05 | ) | $ | 0.17 |
| $ | (0.32 | ) | $ | (0.04 | ) |
|
|
|
|
|
|
|
|
|
| ||||
Purchase accounting impact on acquired deferred revenue |
| 0.18 |
| — |
| 0.33 |
| — |
| ||||
Purchase accounting impact on acquired deferred commissions |
| (0.08 | ) | — |
| (0.14 | ) | — |
| ||||
Pro forma adjusted net income (loss) per share **** |
| $ | 0.05 |
| $ | 0.17 |
| $ | (0.12 | ) | $ | (0.04 | ) |
|
|
|
|
|
|
|
|
|
| ||||
Basic weighted average shares |
| 21,353 |
| 21,166 |
| 21,528 |
| 21,045 |
| ||||
Diluted weighted average shares |
| 21,821 |
| 21,828 |
| 21,528 |
| 21,045 |
|
* Certain amounts have been adjusted for the retrospective change in accounting principle for sales commissions.
** For adjusted net income (loss) and pro forma adjusted net income (loss) purposes, we use a 39% effective tax rate which represents the projected, long term effective tax rate on adjusted pretax income. Our adjusted tax rate assumes full use of loss and credit carryforwards without reduction for valuation allowances.
*** Adjusted net income (loss) and adjusted net income (loss) per share exclude the impact of items related to its litigation with Google Inc., restructuring costs and transaction and other costs associated with mergers and acquisitions as well as all adjustments related to recording the non-cash tax valuation allowance for deferred tax assets.
**** Pro forma adjusted net income (loss) and pro forma adjusted net income (loss) per share are adjusted net income (loss) and adjusted net income (loss) per share plus the purchase accounting impact on acquired deferred revenue less the purchase accounting impact on acquired deferred commissions.
ROSETTA STONE INC.
Reconciliation of Revenue to Pro Forma Revenue
(in thousands)
(unaudited)
|
| Three Months Ended |
| Twelve Months |
| ||||||||
|
| December 31, |
| December 31, |
| ||||||||
|
| 2013 |
| 2012 |
| 2013 |
| 2012 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
GAAP revenue |
| $ | 77,711 |
| $ | 78,701 |
| $ | 264,645 |
| $ | 273,241 |
|
Purchase accounting impact on acquired deferred revenue |
| 3,952 |
| — |
| 7,169 |
| — |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Pro Forma revenue* |
| $ | 81,663 |
| $ | 78,701 |
| $ | 271,814 |
| $ | 273,241 |
|
* Pro forma revenue is GAAP revenue plus the purchase accounting impact on acquired deferred revenue.
ROSETTA STONE INC.
Reconciliation of GAAP Net Income (Loss) to Adjusted EBITDA (old definition) and Pro Forma Adjusted EBITDA
(in thousands)
(unaudited)
|
| Three Months Ended |
| Twelve Months Ended |
| ||||||||
|
| December 31, |
| December 31, |
| ||||||||
Old Definition |
| 2013 |
| 2012 |
| 2013 |
| 2012 |
| ||||
|
|
|
| (As |
|
|
| (As |
| ||||
GAAP net income (loss) |
| $ | (3,848 | ) | $ | 4,635 |
| $ | (16,134 | ) | $ | (33,985 | ) |
Interest (income)/expense, net |
| (5 | ) | (46 | ) | (56 | ) | (187 | ) | ||||
Income tax (benefit) expense |
| 1,168 |
| 1,170 |
| (1,884 | ) | 28,909 |
| ||||
Depreciation and amortization |
| 2,630 |
| 1,847 |
| 8,968 |
| 8,077 |
| ||||
Depreciation related to restructuring |
| — |
| — |
| 667 |
| — |
| ||||
Stock-based compensation |
| 3,012 |
| 1,801 |
| 9,241 |
| 8,009 |
| ||||
Other EBITDA adjustments |
| 838 |
| 360 |
| 6,014 |
| 3,752 |
| ||||
Adjusted EBITDA (old definition)** |
| $ | 3,795 |
| $ | 9,767 |
| $ | 6,816 |
| $ | 14,575 |
|
|
|
|
|
|
|
|
|
|
| ||||
Purchase accounting impact on acquired deferred revenue |
| 3,952 |
| — |
| 7,169 |
| — |
| ||||
Purchase accounting impact on acquired deferred commissions |
| (1,727 | ) | — |
| (2,938 | ) | — |
| ||||
Pro Forma Adjusted EBITDA**** |
| $ | 6,020 |
| $ | 9,767 |
| $ | 11,047 |
| $ | 14,575 |
|
ROSETTA STONE INC.
Reconciliation of GAAP Net Income (Loss) to Adjusted EBITDA (new definition)
(in thousands)
(unaudited)
|
| Three Months Ended |
| Twelve Months Ended |
| ||||||||
|
| December 31, |
| December 31, |
| ||||||||
New Definition |
| 2013 |
| 2012 |
| 2013 |
| 2012 |
| ||||
|
|
|
| (As |
|
|
| (As |
| ||||
GAAP net income (loss) |
| $ | (3,848 | ) | $ | 4,635 |
| $ | (16,134 | ) | $ | (33,985 | ) |
Interest (income)/expense, net |
| (5 | ) | (46 | ) | (56 | ) | (187 | ) | ||||
Income tax (benefit) expense |
| 1,168 |
| 1,170 |
| (1,884 | ) | 28,909 |
| ||||
Depreciation and amortization |
| 2,630 |
| 1,847 |
| 8,968 |
| 8,077 |
| ||||
Depreciation related to restructuring |
| — |
| — |
| 667 |
| — |
| ||||
Stock-based compensation |
| 3,012 |
| 1,801 |
| 9,241 |
| 8,009 |
| ||||
Other EBITDA adjustments |
| 838 |
| 360 |
| 6,014 |
| 3,752 |
| ||||
Adjusted EBITDA (old definition)** |
| $ | 3,795 |
| $ | 9,767 |
| $ | 6,816 |
| $ | 14,575 |
|
|
|
|
|
|
|
|
|
|
| ||||
Change in Deferred Revenue |
| 6,277 |
| 5,627 |
| 13,490 |
| 11,521 |
| ||||
Change in Deferred Commission |
| (2,173 | ) | (641 | ) | (4,245 | ) | (764 | ) | ||||
Adjusted EBITDA (new definition)*** |
| $ | 7,899 |
| $ | 14,753 |
| $ | 16,061 |
| $ | 25,332 |
|
* Certain amounts have been adjusted for the retrospective change in accounting principle for sales commissions. |
|
** Adjusted EBITDA (old definition) is GAAP net income or loss plus interest income and expense, income tax benefit and expense, depreciation, amortization and stock-based compensation expenses. Adjusted EBITDA excludes any items related to the litigation with Google Inc., restructuring costs and transaction and other costs associated with mergers and acquisitions. Adjusted EBITDA for prior periods has been revised to conform to current definition. |
|
*** Adjusted EBITDA (new definition) is Adjusted EBITDA (old definition) plus the change in deferred revenue less the change in deferred commissions excluding increase in deferred revenue from acquisitions. |
|
**** Pro Forma Adjusted EBITDA is Adjusted EBITDA (old definition) plus the purchase accounting impact on acquired deferred revenue less the purchase accounting impact on acquired deferred commissions. |
Rosetta Stone Inc.
Business Metrics
(in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Quarter-Ended |
| Quarter-Ended |
| ||||||||||||||||||||||||||
|
| 3/31/12 |
| 6/30/12 |
| 9/30/12 |
| 12/31/12 |
| 2012 |
| 3/31/13 |
| 6/30/13 |
| 9/30/13 |
| 12/31/13 |
| 2013 |
| ||||||||||
Net Bookings by Market |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
North America Consumer |
| 41,733 |
| 37,295 |
| 42,283 |
| 57,870 |
| 179,181 |
| 41,303 |
| 39,321 |
| 38,629 |
| 52,620 |
| 171,873 |
| ||||||||||
Rest of World Consumer |
| 12,550 |
| 8,113 |
| 10,488 |
| 10,034 |
| 41,185 |
| 8,310 |
| 6,879 |
| 7,471 |
| 7,300 |
| 29,960 |
| ||||||||||
Worldwide Consumer |
| 54,283 |
| 45,408 |
| 52,771 |
| 67,904 |
| 220,366 |
| 49,613 |
| 46,200 |
| 46,100 |
| 59,920 |
| 201,833 |
| ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Global Enterprise and Education |
| 10,984 |
| 17,635 |
| 19,354 |
| 16,423 |
| 64,396 |
| 10,758 |
| 16,883 |
| 24,594 |
| 24,067 |
| 76,302 |
| ||||||||||
Total |
| 65,267 |
| 63,043 |
| 72,125 |
| 84,327 |
| 284,762 |
| 60,371 |
| 63,083 |
| 70,694 |
| 83,987 |
| 278,135 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
YoY Growth (%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
North America Consumer |
| 40 | % | 1 | % | 19 | % | 5 | % | 14 | % | -1 | % | 5 | % | -9 | % | -9 | % | -4 | % | ||||||||||
Rest of World Consumer |
| -16 | % | -37 | % | -12 | % | -29 | % | -24 | % | -34 | % | -15 | % | -29 | % | -27 | % | -27 | % | ||||||||||
Worldwide Consumer |
| 21 | % | -9 | % | 11 | % | -2 | % | 4 | % | -9 | % | 2 | % | -13 | % | -12 | % | -8 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Global Enterprise and Education |
| 2 | % | 4 | % | 4 | % | 6 | % | 4 | % | -2 | % | -4 | % | 27 | % | 47 | % | 18 | % | ||||||||||
Total |
| 17 | % | -5 | % | 9 | % | -1 | % | 4 | % | -8 | % | 0 | % | -2 | % | 0 | % | -2 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
% of Total Net Bookings |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
North America Consumer |
| 64 | % | 59 | % | 59 | % | 69 | % | 63 | % | 68 | % | 62 | % | 55 | % | 63 | % | 62 | % | ||||||||||
Rest of World Consumer |
| 19 | % | 13 | % | 14 | % | 12 | % | 14 | % | 14 | % | 11 | % | 10 | % | 9 | % | 11 | % | ||||||||||
Worldwide Consumer |
| 83 | % | 72 | % | 73 | % | 81 | % | 77 | % | 82 | % | 73 | % | 65 | % | 71 | % | 73 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Global Enterprise and Education |
| 17 | % | 28 | % | 27 | % | 19 | % | 23 | % | 18 | % | 27 | % | 35 | % | 29 | % | 27 | % | ||||||||||
Total |
| 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Revenue by Market |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
North America Consumer |
| 43,084 |
| 36,918 |
| 39,878 |
| 52,946 |
| 172,826 |
| 41,385 |
| 39,934 |
| 38,699 |
| 53,998 |
| 174,016 |
| ||||||||||
Rest of World Consumer |
| 12,204 |
| 8,053 |
| 9,903 |
| 10,088 |
| 40,248 |
| 8,570 |
| 7,478 |
| 7,165 |
| 7,207 |
| 30,420 |
| ||||||||||
Worldwide Consumer |
| 55,288 |
| 44,971 |
| 49,781 |
| 63,034 |
| 213,074 |
| 49,955 |
| 47,412 |
| 45,864 |
| 61,205 |
| 204,436 |
| ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Global Enterprise and Education |
| 14,161 |
| 15,841 |
| 14,498 |
| 15,667 |
| 60,167 |
| 13,969 |
| 14,727 |
| 15,008 |
| 16,505 |
| 60,209 |
| ||||||||||
Total |
| 69,449 |
| 60,812 |
| 64,279 |
| 78,701 |
| 273,241 |
| 63,924 |
| 62,139 |
| 60,872 |
| 77,710 |
| 264,645 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
YoY Growth (%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
North America Consumer |
| 54 | % | -4 | % | 6 | % | 0 | % | 10 | % | -4 | % | 8 | % | -3 | % | 2 | % | 1 | % | ||||||||||
Rest of World Consumer |
| -16 | % | -33 | % | -10 | % | -21 | % | -20 | % | -30 | % | -7 | % | -28 | % | -29 | % | -24 | % | ||||||||||
Worldwide Consumer |
| 30 | % | -11 | % | 2 | % | -5 | % | 2 | % | -10 | % | 5 | % | -8 | % | -3 | % | -4 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Global Enterprise and Education |
| -1 | % | -2 | % | -6 | % | 8 | % | 0 | % | -1 | % | -7 | % | 4 | % | 5 | % | 0 | % | ||||||||||
Total |
| 22 | % | -9 | % | 0 | % | -2 | % | 2 | % | -8 | % | 2 | % | -5 | % | -1 | % | -3 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
% of Total Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
North America Consumer |
| 62 | % | 61 | % | 62 | % | 67 | % | 63 | % | 65 | % | 64 | % | 64 | % | 69 | % | 66 | % | ||||||||||
Rest of World Consumer |
| 18 | % | 13 | % | 15 | % | 13 | % | 15 | % | 13 | % | 12 | % | 11 | % | 9 | % | 11 | % | ||||||||||
Worldwide Consumer |
| 80 | % | 74 | % | 77 | % | 80 | % | 78 | % | 78 | % | 76 | % | 75 | % | 79 | % | 77 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Global Enterprise and Education |
| 20 | % | 26 | % | 23 | % | 20 | % | 22 | % | 22 | % | 24 | % | 25 | % | 21 | % | 23 | % | ||||||||||
Total |
| 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | ||||||||||
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Unit Metrics |
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Product Unit Volume (thousands) |
| 143.0 |
| 129.7 |
| 146.5 |
| 210.7 |
| 629.8 |
| 141.8 |
| 148.6 |
| 157.7 |
| 233.5 |
| 681.6 |
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Paid Online Learners (thousands) |
| 41.2 |
| 48.7 |
| 57.4 |
| 68.4 |
| 68.4 |
| 80.6 |
| 85.1 |
| 88.6 |
| 94.1 |
| 94.1 |
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YoY Growth (%) |
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Product Units |
| 32 | % | -7 | % | 9 | % | 4 | % | 8 | % | -1 | % | 15 | % | 8 | % | 11 | % | 8 | % | ||||||||||
Paid Online Learners |
| 151 | % | 185 | % | 167 | % | 157 | % | 157 | % | 95 | % | 75 | % | 54 | % | 38 | % | 38 | % |
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Average Net Revenue Per Unit ($) |
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Average Net Revenue per Product Unit |
| $ | 367 |
| $ | 319 |
| $ | 313 |
| $ | 277 |
| $ | 315 |
| $ | 312 |
| $ | 275 |
| $ | 250 |
| $ | 234 |
| $ | 263 |
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Average Net Revenue per Online Learner (monthly) |
| $ | 28 |
| $ | 27 |
| $ | 24 |
| $ | 24 |
| $ | 26 |
| $ | 26 |
| $ | 25 |
| $ | 24 |
| $ | 23 |
| $ | 25 |
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YoY Growth (%) |
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Average Net Revenue per Product Unit |
| -3 | % | -9 | % | -9 | % | -11 | % | -8 | % | -15 | % | -14 | % | -20 | % | -15 | % | -16 | % | ||||||||||
Average Net Revenue per Online Learner |
| -6 | % | -22 | % | -37 | % | -32 | % | -25 | % | -7 | % | -6 | % | -1 | % | -5 | % | -3 | % | ||||||||||
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# of Kiosks (end of period) |
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North America |
| 57 |
| 56 |
| 57 |
| 57 |
| 57 |
| 56 |
| — |
| — |
| — |
| — |
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Europe |
| 1 |
| 1 |
| 1 |
| 1 |
| 1 |
| — |
| — |
| — |
| — |
| — |
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Asia Pacific |
| 44 |
| 42 |
| 39 |
| 29 |
| 29 |
| 22 |
| 20 |
| 9 |
| 3 |
| 3 |
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Total # of Kiosks (end of period) |
| 102 |
| 99 |
| 97 |
| 87 |
| 87 |
| 78 |
| 20 |
| 9 |
| 3 |
| 3 |
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Revenues by Geography |
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United States |
| 54,914 |
| 50,810 |
| 52,167 |
| 65,856 |
| 223,747 |
| 52,791 |
| 52,163 |
| 51,013 |
| 67,438 |
| 223,405 |
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International |
| 14,535 |
| 10,002 |
| 12,112 |
| 12,845 |
| 49,494 |
| 11,133 |
| 9,976 |
| 9,859 |
| 10,273 |
| 41,241 |
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Total |
| 69,449 |
| 60,812 |
| 64,279 |
| 78,701 |
| 273,241 |
| 63,924 |
| 62,139 |
| 60,872 |
| 77,711 |
| 264,645 |
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Revenues by Geography (as a %) |
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United States |
| 79 | % | 84 | % | 81 | % | 84 | % | 82 | % | 83 | % | 84 | % | 84 | % | 87 | % | 82 | % | ||||||||||
International |
| 21 | % | 16 | % | 19 | % | 16 | % | 18 | % | 17 | % | 16 | % | 16 | % | 13 | % | 18 | % | ||||||||||
Total |
| 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % |
Contacts
Rosetta Stone Inc.
Investor Contact:
Steve Somers, CFA, 703-387-5876
ssomers@rosettastone.com
or
Media Contact:
Jonathan Mudd, 571-357-7148
jmudd@rosettastone.com
Source: Rosetta Stone Inc.