Rosetta Stone Inc.NYSE
Fri, Oct. 21, 11:10 AM
- A conservative sum-of-the-parts analysis values Rosetta Stone (NYSE:RST) at $13.45 per share, says analyst Alexander Paris, who used recent transaction data and industry multiples to arrive a that figure. That's almost a double from the stock's recent low-to-mid $7 range.
- Paris: "Despite the current headwinds (including the shift to more subscription sales, which temporarily reduces GAAP revenue), restructuring charges, negative investor sentiment and the lack of a clear near-term catalyst to drive the shares higher, we remain supportive of management's transition strategy."
- He upgrades to Outperform, with a "conservative" 12-month price target of $11.
- The upgrade helped RST to a nice pop yesterday, but it's giving back some of that gain today, -0.4%.
- h/t to SA contributor and RST bull Jim Roumell
Wed, Sep. 14, 9:06 AM
- Rosetta Stone's (NYSE:RST) new Catalyst program received an editor rating of Excellent from PCMag's Juan Martinez, says SA Pro contributor Jim Roumell.
- Martinez: "[Catalyst] made my introduction to a challenging language exciting, intellectually stimulating, and surprisingly addictive."
- A bull on Rosetta Stone, particularly thanks to its attractiveness as a buyout candidate sometime in the next year or so, Roumell says the Global English Digital market is estimated to be growing at 13%, and Catalyst should enable RST to get a piece of that.
Wed, Aug. 3, 4:59 PM
Tue, Aug. 2, 5:35 PM
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Thu, Jul. 28, 7:54 AM
- Looking for the best language apps for iOS, Macworld's Seamus Bellamy finds Rosetta Stone (NYSE:RST) tops Duolingo and Babbel, noting it has a feature set the other two can't match.
- Duolingo, of course, is free, while Rosetta Stone costs $200 per year. "Well worth your money," says Bellamy.
- SA contributor Jim Roumell, who in May touted Rosetta Stone as a buyout candidate at some point in the next 12-18 months, notes Duolingo's most recent private-market valuation was $470M, nearly triple that of RST's current market cap.
Wed, May 4, 4:54 PM
- Rosetta Stone (NYSE:RST): Q1 EPS of -$0.34 beats by $0.18.
- Revenue of $48M (-17.9% Y/Y) beats by $0.86M.
Tue, May 3, 5:35 PM
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Mon, Mar. 14, 4:22 PM
- Rosetta Stone (NYSE:RST): Q4 EPS of -$0.52 may not be comparable to consensus of -$0.67.
- Revenue of $58.01M (-26.8% Y/Y) misses by $2.33M.
Sun, Mar. 13, 5:35 PM
Fri, Jan. 22, 3:05 PM
- A partner at major Rosetta Stone (NYSE:RST) shareholder Roumell Asset Management (~5% stake) says the company may sell its Fit Brains "brain fitness" app unit as part of its efforts de-emphasize consumer products in favor of corporate and education market offerings. Shares spiked higher following the news.
- The partner adds Rosetta will probably wait to sell Fit Brains until fellow brain game maker Lumos Labs goes public or is acquired, thus helping to set a sale price for Fit Brains. Last May, Rosetta stated Fit Brains' revenue had doubled since Rosetta bought the company, reaching $4M/year.
- Rosetta bought Fit Brains for $12M in late 2013. The language software firm is 10 months removed from stating it's cutting consumer investments and carrying out layoffs. Q4 results are expected in the coming weeks.
Nov. 5, 2015, 3:26 PM
- With the help of low expectations, Rosetta Stone (NYSE:RST) has jumped after soundly beating Q3 EPS estimates and missing on revenue. A 26% Y/Y drop in operating expenses to $17.5M - the result of Rosetta's decision to pare consumer product investments - boosted EPS.
- The language software vendor's 23% Y/Y revenue decline stems from a 42% drop in consumer revenue to $24.5M. Enterprise/education revenue rose 12% to $25.3M, aided by 103% growth for the Lexia reading software platform.
- The U.S. accounted for 82% of Q3 revenue. The deferred revenue balance has risen by $11.2M this year to $139.4M.
- Q3 results, PR
Nov. 4, 2015, 4:32 PM
- Rosetta Stone (NYSE:RST): Q3 EPS of -$0.34 beats by $0.27.
- Revenue of $49.8M (-22.8% Y/Y) misses by $1.8M.
Nov. 3, 2015, 5:35 PM
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Aug. 5, 2015, 4:12 PM
- Rosetta Stone (NYSE:RST): Q2 EPS of -$0.38 misses by $0.05.
- Revenue of $51.4M (-10.3% Y/Y) beats by $6.27M.
Jul. 7, 2015, 4:17 PM
- Rosetta Stone (NYSE:RST) has hired "outside financial and legal advisors to assist management and its Board with their ongoing comprehensive review to analyze potential options to improve financial performance and enhance shareholder value."
- The language software vendor received a buyout offer from RDG Capital in May. The next month, activist Osmium Partners (9.7% stake) called for a sale, while arguing a major buyout premium is possible.
Jun. 8, 2015, 12:10 PM
- Rosetta Stone's (NYSE:RST) shares "could transact to a strategic buyer at a price of $16 per share or better," argues #2 shareholder Osmium Partners (9.7% stake) in an open letter.
- Osmium thinks Disney, Houghton Mifflin, Pearson, or InterActive Corp. (among others) could potentially bid, and that Rosetta's Enterprise & Education (E&E) software ops are especially appealing, owing to their high margins, 80%+ annual renewal rate, and 100% reliance on SaaS/subscription-based revenue. Major cross-selling opportunities are seen for strategic acquirers looking to offer Rosetta's language software to education clients.
- Rosetta jumped two weeks ago after Mergermarket reported P-E investors had made a $9-$10/share offer to buy the company. Soon afterwards, Rosetta confirmed it had received an offer, and said it would "carefully evaluate" it.