- Rosetta Stone (NYSE:RST) saw revenues decline by double digits in Q4 earnings amid a transition to an all-subscription model in its consumer language segment, as declines in product sales more than offset sub gains.
- Sub revenue grew reflecting double-digit growth in the Lexia segment, which rose to $12M.
- Net income swung to a gain of $2.4M from a year-ago loss of $5.6M, with the help of a one-time tax benefit of $5.5M. The prior year's loss also included lease termination costs of $1.6M.
- Revenue breakout: Subscription and service, $42.9M (up 8.4%); Product, $1.9M (down 84.3%).
- Revenue by segment: Literacy, $12M (up 23%); E&E Language, $14.98M (down 16%); Consumer language, $17.77M (down 26%).
- Earnings call slides
- Press release