Profile: Rosetta Stone Inc (RST.N)

RST.N on New York Stock Exchange

3 Aug 2015
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Rosetta Stone Inc. (Rosetta Stone), incorporated on December 23, 2005, is a provider of reading and brain fitness solutions. The Company's solutions are used by schools, businesses, government organizations and individuals around the world. The Company offers courses in 30 languages across a range of formats, including Web-based software subscriptions, digital downloads, mobile applications, and perpetual compact disc (CD) packages. The Company operates in three segments: North America Consumer (NA), Rest of World (ROW) Consumer and Global Enterprise & Education. The North America Consumer and ROW Consumer segments derive revenues from sales to individuals and retail partners. The North America Consumer segment includes sales made within the United States and Canada, and the ROW Consumer segment includes sales made in countries other than the United States and Canada. The Global Enterprise & Education segment derives revenues from sales to educational institutions, government agencies and corporations across the world.


Rosetta Stone offers a portfolio of technology-based learning products for personal use to the global consumer. The Company's learning solutions include a portfolio of language-learning, kids literacy and brain fitness solutions. Rosetta Stone consumer products and services are also available in convenient formats for tablets and smartphones. Its products are available for download through the Apple App Store, Google Play, Amazon Appstore for Android and Windows Store.

Rosetta Stone provides learning programs that are available under a Web-based software subscription and in perpetual formats, including digital download and CD. The Company's language-learning suite offers courses and practice applications in multiple languages. Rosetta Stone's beginner to intermediate language-learning products are available in 30 languages. The Company's advanced language-learning products are available in 9 of the 30 languages and focuses on improving every day and business language skills. The Company also offers online services. Its Rosetta Studio is an online service that provides conversational coaching sessions with native speakers to practice skills and experience direct interactive dialogue. The Company's Rosetta World is an online service that provides a world-wide community for users around the world with games, online chat and other features to improve language skills. Many of its perpetual language-learning packages include access to Rosetta Studio. Almost all of the Company's language-learning offerings for consumers include access to Rosetta World. The Company's suite of mobile language-learning applications includes companions to computer-based language-learning solutions, as well as a series of introductory language applications for travelers and a high-tech Spanish language-learning game called Rosetta Stone Arcade Academy.

Rosetta Stone Fit Brains solutions are designed by neuroscientists for memory, concentration, thinking and problem-solving skills using brain training exercises. The Company's brain fitness solutions include a Web-based subscription and several brain training applications that feature more than 60 scientifically designed brain training games. Rosetta Stone Fit Brains subscription includes performance tracking tools to view training progress.

Rosetta Stone Kids mobile applications provide technology-based learning solutions for children that focus on early childhood language and literacy. The Company launched Rosetta Stone Kids Lingo Letter Sounds and Rosetta Stone Kids Lingo Word Builder applications for children aged 3-6 that provide blended learning solutions to introduce kids to both basic literacy skills and a foreign language. The Company also launched Rosetta Stone Kids Reading application, which is aimed to teach children aged 3-7 how to read using self-paced games and activities that introduce core reading skills.

The Company's global consumer distribution channel comprises a mix of its call centers, Websites, third party e-commerce Websites, home shopping networks, consignment distributors, select retail resellers, and daily deal partners. Its channels include Direct to consumer, which involve sales generated through either its call centers and on Website at; Indirect to consumer, which include the sales generated through arrangements with third-party e-commerce Websites, such as Digital River and Apple App Store, home shopping networks, such as GS Home Shopping in Korea, and consignment distributors, such as Wynit Distribution and Software Packaging Associates; Retailers, which provide points of contact to educate consumers about its solutions, and its relationships include, Barnes & Noble, Target, Best Buy, Books-a-Million, Sam's Club, Costco, Staples, and others in and outside of the United States and it also partners with daily deal resellers, such as Groupon, and Home School, the Company promotes interest in the language-learning market through advertising in publications focused on home schooling, attending local trade shows, seminars and direct mailings.

Global Enterprise & Education

Rosetta Stone also offers a series of technology-based language-learning solutions for schools, businesses and other organizations, and reading and literacy solutions for schools. Rosetta Stone also offers administrator tools for performance monitoring and custom solutions. Through its services, the Company provides implementation and training services to drive critical business solutions.

Rosetta Stone provides Web-based language-learning solutions that are available online. Its core language-learning suite offers courses and practice applications in multiple languages. Its solutions are available in 24 languages and designed for beginner to intermediate language learners, its Rosetta Stone Foundations builds fundamental language skills using its context-based, immersion methodology and technology features. The Company's Rosetta Stone Advantage is available for all proficiency levels in nine of the 24 languages and focuses on improving everyday and business language skills. Its Advanced English for Business solution serves multinational companies seeking to build their employees' English language proficiency.

The Company's Lexia Learning solutions provide explicit, systematic, personalized reading instruction for students of all abilities in grades pre-K through five and a reading intervention program designed for remedial students in grades six and above. Lexia's solutions deliver norm-referenced performance data and analysis to enable teachers to monitor and modify their instruction to address specific student needs. These literacy solutions are provided under Web-based subscriptions.

The Company's Global Enterprise & Education learning programs come with a set of administrator tools to measure and track learner progress. Administrators can use these tools to access real-time dynamic reports. The Company's professional services provide its customers with access to implementation and training resources. The Company's implementation services teams work directly with its customers. The Company's training services teams help customers develop an education program to meet their specific needs. Rosetta Stone offers solutions to organizations. Its custom solutions include curriculum development, global collaboration programs that combine language education with business culture training, and language courses for mission-critical government programs.

Global Enterprise & Education language-learning distribution channel is focused on targeted sales activity through a direct sales force in five markets: K-12 schools, colleges and universities, federal government agencies, not-for-profit organizations and corporations. Its Global Enterprise & Education language-learning customers include Educational Institutions, which include primary and secondary schools and colleges and universities; U.S. Federal Government Agencies and Not-for-Profit Organizations, which include government agencies and organizations developing workforces to serve non-native speaking populations, offering literacy programs and preparing members for overseas missions; Corporations, which include onsite visits, trade show and seminar attendance, speaking engagements and direct mailing, and Third-party Resellers, which the Company utilizes third-party resellers to provide its language-learning solutions to businesses, schools, and public-sector organizations in emerging markets outside the United States. Its Global Enterprise & Education literacy distribution channel utilizes relationships with third-party resellers focused on the sale of Lexia Learning solutions to K-12 schools.

Software Developments

The Company's software development includes the design and build of software solutions across a variety of devices, pedagogy and curriculum development, and the creation of learning content. Its development team builds new solutions and enhances or maintains existing solutions. The Company is engaged in speech recognition technology, iterative and customer-focused software development, instructional design and language acquisition.

The Company competes with Benesse Holdings, CBS Corporation, Pearson, Bertelsmann, McGraw-Hill Education, Duolingo, Inc., Fluenz, Busuu Ltd., Lesson Nine GmbH, EF Englishtown, inlingua, Imagine Learning, Transparent Language, Scholastic, Inc., Achieve3000, Scientific Learning, Odyssey, Waterford Early Reading, Renaissance, Istation, Lumosity, Elevate and Posit Science.

Company Address

Rosetta Stone Inc

1919 N Lynn St Ste 700
ARLINGTON   VA   22209-1743
P: +1800.7880822
F: +1302.6555049

Company Web Links

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