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Rosetta Stone Inc. (RST)

  • Oct. 29, 2014, 4:28 PM
    • Rosetta Stone (NYSE:RST): Q3 EPS of -$0.76 misses by $0.42.
    • Revenue of $64.51M (+6.0% Y/Y) misses by $4.48M.
    • Press Release
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  • Aug. 5, 2014, 4:09 PM
    • Rosetta Stone (NYSE:RST): Q2 EPS of -$0.74 may not be comparable to consensus of -$0.20.
    • Revenue of $57.32M (-7.8% Y/Y) misses by $9.46M.
    • Press Release
    | Comment!
  • Jun. 16, 2014, 11:57 AM
    • Nierenberg Investment has disclosed a 1.7M-share (8%) stake in Rosetta Stone (RST +4.8%), and is calling for actions it thinks "could help tighten the company’s strategic focus and substantially improve its free cash flow."
    • The firm thinks Rosetta is "undertaking too many initiatives simultaneously," and is skeptical "all of the many product, pricing, distribution, and channel initiatives being pursued in RST’s North American consumer (NAC) business are equally worthy."
    • Nierenberg also argues Rosetta's board is too small (it currently has 6 members), and "should evolve into a 'post-venture' board which possesses relevant digital marketing expertise and customer/end-user domain experience consistent with RST’s tightened strategic focus."
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  • May. 7, 2014, 5:04 PM
    • Rosetta Stone (RST): Q1 EPS of -$0.96 misses by $0.76.
    • Revenue of $60.77M (-4.9% Y/Y) misses by $2.78M.
    • Shares -0.9% AH.
    • Press Release
    | Comment!
  • Feb. 25, 2014, 8:05 AM
    • Rosetta Stone Inc. (RST): Q4 EPS of $0.05 misses by $0.06.
    • Revenue of $77.71M (-1.3% Y/Y) misses by $4.7M.
    • Press Release
    | Comment!
  • Feb. 25, 2014, 12:05 AM
  • Feb. 24, 2014, 5:30 PM
  • Jan. 10, 2014, 4:04 PM
    • Following a rough 2013, Rosetta Stone (RST -0.7%) is shutting down its Japanese office (the company will now rely on Japanese partners) and "streamlining" its South Korean ops to make them more focused on its proctor-assisted learning products. (PR)
    • These moves will results in 66 jobs being cut, and a $2.5M-$3.5M charge being taken.
    • Rosetta also says Pragnesh Shah, the head of its Global Consumer unit, will be leaving the company by the end of March, after overseeing the Japanese/Korean restructuring. With Rosetta's international consumer ops having been downsized, no replacement is expected to be named.
    • Rosetta's Rest of World Consumer sales (12% of total revenue) fell 28% Y/Y in Q3 to $7.2M. Over the first nine months of 2013, Japan accounted for 1/4 of the business' sales.
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  • Dec. 19, 2013, 9:11 AM
    • Rosetta Stone (RST) acquires Fit Brains developer Vivity Labs for $12M cash, expanding Rosetta's offerings outside language learning into "adjacent categories of technology-driven education." Transaction close is expected in Jan.
    • Vivity's flagship app, Fit Brains Trainer, has been downloaded nearly 5M times in the last year.
    • Rosetta expects Vivity to contribute revenue of $3M-$5M in 2014 and EBITDA of $1M-$2M. Beyond 2015, Rosetta expects double-digit revenue and EBITDA growth.
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  • Dec. 11, 2013, 10:48 AM
    • Rosetta Stone (RST +0.9%) acquires Europe-focused, B2B language-learning software company Tell Me More for €20.75M ($28M).
    • 95% of Tell Me More's €18.5 million ($25 million) business is focused on corporate and higher education verticals, with a significant presence in Europe as well as in China.
    • The company has more than 3K customers worldwide and offers solutions covering 9 languages.
    • Rosetta stone expects to achieve significant cost synergies by streamlining the 2 companies' sales forces under the Rosetta Stone brand and taking advantage of Rosetta's scale.
    • Management expects the acquisition to contribute bookings of $25M-$27M in 2014. The impact to EBITDA is seen at $3M-$4M after excluding $3M-$4M in integration costs. Beyond 2014, the company sees "modest top-line growth" and EBITDA margins of 25% or greater.
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  • Nov. 7, 2013, 2:47 PM
    • Rosetta Stone (RST -18.1%) expands a distribution deal with Target to see its products gain high exposure in stores during the holiday season.
    • The firm will also have increased exposure on
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  • Nov. 6, 2013, 5:06 PM
    • SolarCity (SCTY) expects Q4 revenue of $40M-$46M ($22M-$24M in operating lease revenue, $18M-$22M in systems sale revenue) and EPS of -$0.55 to -$0.65 vs. a consensus of -$0.47. 101MW are expected to be deployed, a figure that meshes with existing full-year guidance of 278MW. 2014 guidance for 475MW-525MW in deployments has been reiterated. Shares -2.7% AH, giving back a small portion of the year's big gains. (Q3 results, PR)
    • Giant Interactive (GA) expects Q4 revenue to "grow moderately" relative to a Q3 level of $96.4M. That suggests the company could miss a Q4 revenue consensus of $101.8M. Shares unchanged AH for now. (Q3 results, PR)
    • Following a Q3 miss, Rosetta Stone (RST) expects 2013 revenue of $270M-$280M and EPS of -$0.12 to -$0.01, below a consensus of $286.5M and $0.01. The language software vendor blames "lower pricing and softness" in retail channels for its near-term issues. Shares -11.2% AH. (Q3 results, PR)
    | Comment!
  • Nov. 6, 2013, 4:40 PM
    • Rosetta Stone (RST): FQ3 EPS of -$0.12 misses by $0.02.
    • Revenue of $60.87M misses by $9.71M. (PR)
    | Comment!
  • Oct. 18, 2013, 9:25 AM
    • Rosetta Stone (RST) is moving into the mobile gaming space with the debut of "Rosetta Stone Arcade Academy" for iOS. The initial launch includes 12 freemium games that aim to teach Spanish. The games allow users to buy value packs to unlock more content and move through it more rapidly.
    • "Rosetta Stone saw some degree of success in this area with their recent children's edutainment offering, Rosetta Stone Kids Lingo Letter Sounds, which is currently the #2 most downloaded free app in the Kids section of the App Store," Forbes observes.
    | Comment!
  • Aug. 22, 2013, 5:01 PM
    • Rosetta Stone (RST +2.3%) announces its board has approved a share repurchase program of up to $25M.
    • If carried out in full, the buyback program would reduce shares outstanding by 7.4%.
    | Comment!
  • Aug. 21, 2013, 1:40 PM
    • Retail is in a state of "bifurcation" as on-trend luxury retailers (KORS, JWN, TIF) and home improvement specialists (HD, LOW) thrive, while heavyweight merchandise retailers (WMT, TGT, COST), mall-based apparel chains (AEO, ARO, LTD), and discounters (DG, DLTR, FDO) disappoint.
    • As execs with Target noted during the firm's earnings call this morning, consumers seem more than happy to buy new automobiles and fix up their houses - but have tightened up on toothbrushes, socks, and soap.
    • A few companies - through some good luck and solid execution - sit in a consumer demand sweet spot. Ross Stores (RST), TJX Companies (TJX), and Subaru (FUJHY.PK) come to mind.
    • Related ETFs: XRT, RTH, PMR, RETL.
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Company Description
Rosetta Stone Inc is a provider of technology-based language learning solutions. The Company develops, markets, and sells language learning solutions consisting of software, online services and audio practice tools under Rosetta Stone brand.