ARLINGTON, Va., March 06, 2019 (GLOBE NEWSWIRE) -- Rosetta Stone Inc. (NYSE:RST), a world leader in technology-based learning solutions, today announced financial results for the fourth quarter and full year ended December 31, 2018.

Fourth Quarter 2018 Highlights

  • Revenue at Lexia Learning ("Lexia"), the Company's Literacy segment, increased 20% year-over-year to a record high $14.5 million.
  • Revenue within the Consumer Language segment declined 13% year-over-year to $15.5 million. The expected revenue decline reflects the transition to a full subscription model in which revenue is recognized ratably over the subscription period, which was completed in the first quarter 2018. Consumer Lifetime Value (“LTV”) added was $58.9 million in the full year 2018, an increase of 6% from the year-ago period.
  • Revenue within the Enterprise & Education (“E&E”) Language segment decreased 3% year-over-year to $14.6 million, the lowest year-over-year decline in 6 quarters.
  • Total operating expenses increased 1% year-over-year, to $39.2 million.
  • At December 31, 2018 the Company had zero debt outstanding and cash and cash equivalents totaled $38.1 million.

“2018 was a transformative year for Rosetta Stone, marked by exceptional growth in our Literacy business, re-imaged products in our Language business and the completion of the transition of our company to subscription sales,” said John Hass, Chairman and Chief Executive Officer. “The result is a more balanced, and better positioned Rosetta Stone, with a future clearly focused on leveraging our two biggest assets - our growing presence in U.S. K12 schools and our iconic brand.”

Mr. Hass continued, “The fourth quarter of 2018 was the inflection point we have been working towards. As we look ahead, we are excited to continue our transformation into a global leader in digital learning solutions that served over five million paid learners in 2018. We expect our focus will result in a company with accelerating growth and expanding margins that will become more apparent as we move through 2019.”

Fourth Quarter 2018 Review

Revenue: Total revenue in the fourth quarter was $44.6 million, compared to $44.8 million in the fourth quarter 2017, as growth in the Company’s Literacy Segment was offset by a decline in the Company’s Consumer Language segment, largely the result of the transition from perpetual product sales to subscription-based sales. Revenue before Fit Brains, which was decommissioned mid-2018, grew slightly year-over-year in the fourth quarter for the first time since 2014.

Revenue at Lexia increased 20% year-over-year to $14.5 million. Lexia's sustained revenue growth reflects strong demand for its product portfolio, high retention rates, and increased effectiveness of the Company's direct sales force. Literacy bookings grew 13% over the prior year period reflecting a consistently high renewal rate of 100% in the current period. It also reflected a continuing trend of both new and renewal bookings moving to the third calendar quarter which is the beginning of the school operating year.

E&E Language segment revenue decreased 3% year-over-year to $14.6 million. E&E language bookings decreased $1.6 million, or 9% year-over-year, with lower bookings from our reseller channel.

Consumer Language segment revenue declined 13% year-over-year to $15.5 million. The decline was driven by the SaaS transition across all channels in the segment. Subscribers grew 32% year-over-year to 487,000 at December 31, 2018. Subscriber growth was largely driven by the inclusion of lower priced, shorter initial duration subscriptions in the Company’s portfolio. Subscriptions with a duration of one year or less totaled 44% of the subscription unit mix at the end of the fourth quarter 2018, up from 34% at the end of the same quarter last year. Consumer Language bookings before prior-year SOURCENEXT and Fit Brains, which has been decommissioned, totaled $17.2 million in Q4 2018, down from $18.6 million in Q4 2017.

US$ thousands, except for percentages

  Three Months Ended December 31,     
  2018  Mix %  2017  Mix %  % change 
Revenue from:                    
Literacy $14,472   32% $12,040   27%  20%
E&E Language  14,594   33%  14,978   33%  (3)%
Consumer Language  15,508   35%  17,771   40%  (13)%
Total Revenue $44,574   100% $44,789   100%  (0)%

Net (Loss) Income: In the fourth quarter 2018, the Company reported a net loss of $4.4 million, or $(0.19) per diluted share. In the comparable period a year ago, the Company reported net income of $2.4 million, or $0.10 per diluted share. Included in net income for the fourth quarter 2017 was a one-time, non-cash $5.5 million tax benefit associated with the Tax Cuts and Jobs Act.

Total operating expenses increased $0.3 million, or 1% year-over-year, to $39.2 million as increased investment in sales and marketing and research and development expenses were partially offset by declines in general and administrative expense.

Full Year 2018 Review

Revenue: Full year 2018 revenue totaled $173.6 million, down 6% from $184.6 million in 2017, as growth in the Company’s Lexia segment was more than offset by declines in the Company’s Consumer Language and E&E Language segments.  

Revenue at Lexia totaled $52.8 million in 2018, up 21% from $43.6 million in 2017. Literacy bookings grew 23% over the prior year reflecting a consistently high renewal rate of 100% in 2018.

Revenue in the E&E Language segment totaled $60.4 million in 2018, down 7% compared to $65.3 million in 2017. The decrease reflects lower performance from non-strategic affiliate sales channels and a decline in K-12 education bookings.

Consumer Language segment revenue was down 20% to $60.5 million in 2018, compared to $75.7 million in 2017, reflecting both the shift to SaaS-based revenue in the DTC channel and lower unit sales in the retail channel following the conversion of various retail partners to sell the Company's subscriptions. The percent of perpetual sales units in 2018 was 3%, compared to 46% last year. The percent of full year bookings recognized as revenue in the year declined to 46% in 2018, compared to 54% in 2017. Consumer Language bookings before prior-year SOURCENEXT and Fit Brains, which has been decommissioned, totaled $63.1 million for the full year 2018, down from $67.6 million in the prior year.

US$ thousands, except for percentages

  Twelve Months Ended December 31,     
  2018  Mix %  2017  Mix %  % change 
Revenue from:                    
Literacy $52,766   30% $43,608   24%  21%
E&E Language  60,376   35%  65,267   35%  (7)%
Consumer Language  60,492   35%  75,718   41%  (20)%
Total Revenue $173,634   100% $184,593   100%  (6)%

Net Loss: Full year 2018 net loss totaled $21.5 million, or $(0.95) per diluted share, compared to a net loss of $1.5 million, or $(0.07) per diluted share in 2017. Included in the 2017 net loss was a one-time, non-cash $5.5 million tax benefit associated with the Tax Cuts and Jobs Act.

Total operating expenses increased $1.9 million, or 1%, to $157.3 million, as increased investment in sales and marketing and research and development were partially offset by declines in general and administrative expenses.

Balance Sheet: The Company had cash and cash equivalents of $38.1 million and zero debt at December 31, 2018. Deferred revenue totaled $162.9 million at December 31, 2018, compared to $151.3 million at December 31, 2017. Short-term deferred revenue, which will be recognized as revenue over the next 12 months, totaled $113.4 million, or approximately 70% of the total December 31, 2018 balance.

Free Cash Flow and Adjusted EBITDA: Free cash flow, a non-GAAP financial measure, was $5.5 million in the fourth quarter 2018, compared to $2.6 million in the same period a year ago. For the full year 2018, free cash flow was $6.4 million outflow compared to $6.0 million inflow for the full year 2017. Included in the full year 2017 free cash flow was $13.2 million received from the transaction with SOURCENEXT.

Adjusted EBITDA, a non-GAAP financial measure, was $0.7 million in the fourth quarter 2018, a decline of $0.9 million, compared to $1.6 million in the year-ago period. For the full year, Adjusted EBITDA was $0.2 million, compared to $13.3 million in 2017.

2019 Outlook

The Company is providing the following guidance for the full year ending December 31, 2019:

 Full Year
2018 Actual
Full Year
2019 Guidance
Revenue$173.6~$191.0
Literacy Revenue$52.8~63.0
Language Revenue$120.8~$128.0
Net Loss$(21.5)~$(15.0)
Adjusted EBITDA$0.2~$8.0
Operating Cash Flow1$10.4~$19.0
Capital Expenditures$16.9~$20.0
Ending Cash Balance2$38.1~$38.0

1 Includes approximately $4.5 million of SOURCENEXT cash receipts in 2018.
2 Assumes no debt.

Additionally, the Company is providing first quarter 2019 guidance for consolidated revenue of $43 to $44 million, net loss of $5 to $6 million, break-even Adjusted EBITDA, operating cash outflow of $19 million and capital expenditures of $5 million. The first quarter represents the Company’s seasonal low point with 14% of the expected bookings for the year. Revenue growth and operating profitability are expected to accelerate through 2019, in-line with seasonal bookings growth.

Earnings Conference Call

In conjunction with this announcement, Rosetta Stone will host a conference call today at 5:00 p.m. ET during which time there will be a discussion of the results and the business outlook. Investors may dial into the live conference call using 1-201-689-8470 (toll / international) or 1-877-407-9039 (toll-free). A live webcast will also be available in the investor relations section of the Company’s website at http://investors.rosettastone.com. A replay will be made available soon after the live conference call is completed and will remain available until midnight on March 13. Investors may dial into the replay using 1-412-317-6671 and passcode 13686922.

Caution on Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by non-historical statements and often include words such as "outlook," "potential," "believes," "expects," "anticipates," "estimates," "intends," "plans," "seeks" or words of similar meaning, or future-looking or conditional verbs, such as "will," "should," "could," "may," "might," "aims," "intends," "projects," or similar words or phrases. These statements may include, but are not limited to, statements relating to: our business strategy; guidance or projections related to revenue, Adjusted EBITDA, sales, and other measures of future economic performance; the contributions and performance of our businesses including acquired businesses and international operations; projections for future capital expenditures; and other guidance, projections, plans, objectives, and related estimates and assumptions. A forward-looking statement is neither a prediction nor a guarantee of future events or circumstances. In addition, forward-looking statements are based on the Company’s current assumptions, expectations and beliefs and are subject to certain risks and uncertainties that could cause actual results to differ materially from our present expectations or projections. Some important factors that could cause actual results, performance or achievement to differ materially from those expressed or implied by these forward-looking statements include, but are not limited to: the risk that we are unable to execute our business strategy; declining demand for our language learning solutions; the risk that we are not able to manage and grow our business; the impact of any revisions to our pricing strategy; the risk that we might not succeed in introducing and producing new products and services; the impact of foreign exchange fluctuations; the adequacy of internally generated funds and existing sources of liquidity, such as bank financing, as well as our ability to raise additional funds; the risk that we cannot effectively adapt to and manage complex and numerous technologies; the risk that businesses acquired by us might not perform as expected; and the risk that we are not able to successfully expand internationally. We expressly disclaim any obligation to update or revise any forward-looking statements, whether as a result of new information, future developments or otherwise, except as required by law. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements, risks and uncertainties that are more fully described in the Company's filings with the U.S. Securities and Exchange Commission (SEC), including those described under the section entitled “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018, and those updated from time to time in our future reports filed with the Securities and Exchange Commission.

Non-GAAP Financial and Statistical Measures

To supplement the condensed consolidated financial statements, which are prepared and presented in accordance with accounting principles generally accepted in the United States ("GAAP"), the Company uses, and this press release contains references to, the non-GAAP financial measures of financial performance listed below.

  • Bookings represents executed contracts received by the Company that are either recorded immediately as revenue or deferred revenue. Therefore, bookings is an operational metric and in any one period is equal to revenue plus the change in deferred revenue.
  • Adjusted EBITDA is GAAP net income/loss plus interest income and expense, other income/expense, income tax benefit/expense, impairment, lease abandonment and termination, depreciation, amortization, stock-based compensation, restructuring, and strategy and cost-reduction related consulting expenses. In addition, Adjusted EBITDA excludes "Other" items related to non-restructuring wind down and severance 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 operating activities minus cash used in purchases of property and equipment.
  • Segment contribution is calculated as segment revenue less expenses directly incurred by or allocated to the segment. Direct segment expenses include costs and expenses that are directly incurred by or allocated to the segment and include materials costs, service costs, customer care and coaching costs, sales and marketing expenses, and bad debt expense. In addition to the previously referenced expenses, the Literacy segment includes direct research and development expenses and Combined Language includes shared research and development expenses, cost of revenue, and sales and marketing expenses applicable to the Consumer Language and E&E Language segments. Prior periods have been reclassified to reflect our current segment presentation and definition of segment contribution.

The definitions, GAAP comparisons, and reconciliation of those measures with the most directly comparable GAAP financial measures are available in this press release or in the corresponding earnings presentation, which are posted on our website at www.rosettastone.com.

Management believes that these non-GAAP measures of financial results provide useful information to management and investors regarding certain financial and business trends relating to the Company’s financial condition and results of operations, enabling a better understanding of the long-term performance of the Company’s business. Management uses these non-GAAP measures to compare the Company’s performance to that of prior periods for trend analysis, and for budgeting and planning purposes. 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.

The presentation of this additional financial information is not intended to be considered in isolation from, as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. 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, or in corresponding earnings presentations, and not to rely on any single financial measure to evaluate the Company’s business. The Company’s non-GAAP measures may not be comparable to those used by other companies, and we encourage you to review and understand all our financial reporting before making any investment decision.

In addition, this press release contains references to the following statistical measures:

  • North America Consumer DTC and Global App Sales LTV per Unit: The Lifetime Value per unit, or LTV per unit, is an operating metric calculated as the combined value of customers' initial purchases plus an estimate of future renewals based on the median renewal rates observed for recent renewals of similar products. The per unit metric is expressed as the weighted average LTV per unit of all products sold during a given period
  • LTV Added is the LTV per unit multiplied by total new unit sales net of returns.

About Rosetta Stone Inc.

Rosetta Stone Inc. (NYSE: RST) is dedicated to changing people's lives through the power of language and literacy education. The company's innovative digital solutions drive positive learning outcomes for the inspired learner at home or in schools and workplaces around the world.

Founded in 1992, Rosetta Stone's language division uses cloud-based solutions to help all types of learners read, write and speak more than 30 languages. Lexia Learning, Rosetta Stone's literacy education division, was founded more than 30 years ago and is a leader in the literacy education space. Today, Lexia helps students build fundamental reading skills through its rigorously researched, independently evaluated, and widely respected instruction and assessment programs.

For more information, visit www.rosettastone.com. "Rosetta Stone" is a registered trademark or trademark of Rosetta Stone Ltd. in the United States and other countries.

Investors:
Laura Bainbridge / Jason Terry
Addo Investor Relations
1-310-829-5400
IR@rosettastone.com 

Media Contact:
Andrea Riggs
1-917-572-5555
ariggs@rosettastone.com 


 


ROSETTA STONE INC.
CONSOLIDATED BALANCE SHEETS
(in thousands, except per share amounts)
(unaudited)

  As of December 31, 
  2018  2017 
Assets        
Current assets:        
Cash and cash equivalents $38,092  $42,964 
Restricted cash  82   72 
Accounts receivable (net of allowance for doubtful accounts of $372 and $375, at        
December 31, 2018 and December 31, 2017, respectively)  21,950   24,517 
Inventory  933   3,536 
Deferred sales commissions  11,597   14,466 
Prepaid expenses and other current assets  4,041   4,543 
Total current assets  76,695   90,098 
Deferred sales commissions  6,933   3,306 
Property and equipment, net  36,405   30,649 
Goodwill  49,239   49,857 
Intangible assets, net  15,850   19,184 
Other assets  2,136   1,661 
Total assets $187,258  $194,755 
Liabilities and stockholders' (deficit) equity        
Current liabilities:        
Accounts payable $8,938  $8,984 
Accrued compensation  9,046   10,948 
Income tax payable  328   384 
Obligations under capital lease  450   450 
Other current liabilities  13,475   16,454 
Deferred revenue  113,378   110,670 
Total current liabilities  145,615   147,890 
Deferred revenue  49,507   40,593 
Deferred income taxes  2,776   1,968 
Obligations under capital lease  1,337   1,850 
Other long-term liabilities  31   31 
Total liabilities  199,266   192,332 
Commitments and contingencies        
Stockholders' (deficit) equity:        
Preferred stock, $0.001 par value; 10,000 and 10,000 shares authorized, zero and zero        
shares issued and outstanding at December 31, 2018 and December 31, 2017,        
respectively)      
Non-designated common stock, $0.00005 par value, 190,000 and 190,000 shares        
authorized, 24,426 and 23,783 shares issued, and 23,426 and 22,783 shares        
outstanding, at December 31, 2018 and December 31, 2017, respectively)  2   2 
Additional paid-in capital  202,355   195,644 
Treasury stock, at cost; 1,000 and 1,000 shares at December 31, 2018 and        
December 31, 2017, respectively)  (11,435)  (11,435)
Accumulated loss  (199,592)  (178,890)
Accumulated other comprehensive loss  (3,338)  (2,898)
Total stockholders' (deficit) equity  (12,008)  2,423 
Total liabilities and stockholders' (deficit) equity $187,258  $194,755 


ROSETTA STONE INC.

CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(unaudited) 

  Three Months Ended  Twelve Months Ended 
  December 31,  December 31, 
  2018  2017  2018  2017 
Revenue:                
Subscription and service $43,983  $42,890  $170,685  $168,442 
Product  591   1,899   2,949   16,151 
Total revenue  44,574   44,789   173,634   184,593 
Cost of revenue:                
Cost of subscription and service revenue  9,174   6,991   32,010   26,082 
Cost of product revenue  616   1,450   3,912   7,539 
Total cost of revenue  9,790   8,441   35,922   33,621 
Gross profit  34,784   36,348   137,712   150,972 
Operating expenses                
Sales and marketing  24,898   24,801   98,911   96,660 
Research and development  6,420   5,604   25,210   24,747 
General and administrative  7,844   8,412   33,210   34,066 
Total operating expenses  39,162   38,817   157,331   155,473 
Loss from operations  (4,378)  (2,469)  (19,619)  (4,501)
Other income and (expense):                
Interest income  32   23   103   66 
Interest expense  (67)  (108)  (313)  (491)
Other income and (expense)  295   60   165   881 
Total other income and (expense)  260   (25)  (45)  456 
Loss before income taxes  (4,118)  (2,494)  (19,664)  (4,045)
Income tax expense (benefit)  306   (4,860)  1,809   (2,499)
Net (loss) income $(4,424) $2,366  $(21,473) $(1,546)
(Loss) earnings per share:                
Basic $(0.19) $0.11  $(0.95) $(0.07)
Diluted $(0.19) $0.10  $(0.95) $(0.07)
Common shares and equivalents outstanding:                
Basic weighted average shares  22,877   22,316   22,705   22,244 
Diluted weighted average shares  22,877   23,248   22,705   22,244 


ROSETTA STONE INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited) 

  Three Months Ended  Twelve Months Ended 
  December 31,  December 31, 
  2018  2017  2018  2017 
CASH FLOWS FROM OPERATING ACTIVITIES:                
Net (loss) income $(4,424) $2,366  $(21,473) $(1,546)
Adjustments to reconcile net (loss) income to cash provided by                
operating activities:                
Stock-based compensation expense  1,087   1,083   4,475   4,141 
Gain on foreign currency transactions  (324)  (112)  (298)  (573)
Bad debt expense (recovery)  58   92   168   (51)
Depreciation and amortization  3,725   2,932   14,616   12,009 
Deferred income tax expense (benefit)  355   (5,164)  792   (4,201)
Loss (gain) on disposal of equipment  9   (10)  21   (5)
Amortization of deferred financing costs  12   58   114   296 
Loss from equity method investments           100 
Gain on divestiture of subsidiary           (506)
  Net change in:                
  Accounts receivable  10,533   5,226   2,219   7,584 
  Inventory  747   661   2,603   3,266 
  Deferred sales commissions  412   170   (781)  491 
  Prepaid expenses and other current assets  (500)  276   375   (604)
  Income tax receivable or payable  337   (151)  (60)  (447)
  Other assets  (118)  (522)  (525)  (455)
  Accounts payable  40   319   4   (1,765)
  Accrued compensation  (884)  (376)  (1,863)  69 
  Other current liabilities  1,084   51   (2,885)  (6,450)
  Other long-term liabilities     (493)     (1,243)
  Deferred revenue  (1,443)  242   12,941   8,850 
   Net cash provided by operating activities  10,706   6,648   10,443   18,960 
CASH FLOWS FROM INVESTING ACTIVITIES:                
Purchases of property and equipment  (5,189)  (4,041)  (16,889)  (12,944)
Proceeds from sale of fixed assets     10   17   12 
Proceeds on divestiture of subsidiary           110 
  Net cash used in investing activities  (5,189)  (4,031)  (16,872)  (12,822)
CASH FLOWS FROM FINANCING ACTIVITIES:                
Proceeds from the exercise of stock options  689   213   2,236   676 
Payment of deferred financing costs        (4)  (232)
Payments under capital lease obligations  (105)  (109)  (441)  (562)
  Net cash provided by (used in) financing activities  584   104   1,791   (118)
Increase (decrease) in cash, cash equivalents, and restricted cash  6,101   2,721   (4,638)  6,020 
Effect of exchange rate changes in cash, cash equivalents, and                
restricted cash  176   119   (224)  419 
Net increase (decrease) in cash, cash equivalents, and restricted cash  6,277   2,840   (4,862)  6,439 
Cash, cash equivalents, and restricted cash—beginning of period  31,897   40,196   43,036   36,597 
Cash, cash equivalents, and restricted cash—end of period $38,174  $43,036  $38,174  $43,036 


ROSETTA STONE INC.

Reconciliation of GAAP Net (Loss) Income to Adjusted EBITDA
(in thousands)
(unaudited)

  Three Months Ended  Twelve Months Ended 
  December 31,  December 31, 
  2018  2017  2018  2017 
GAAP net (loss) income $(4,424) $2,366  $(21,473) $(1,546)
Total other non-operating (income) and expense, net  (260)  25   45   (456)
Income tax expense (benefit)  306   (4,860)  1,809   (2,499)
Depreciation and amortization  3,725   2,932   14,616   12,009 
Stock-based compensation expense  1,087   1,083   4,475   4,141 
Restructuring expense  (3)  26   (3)  1,207 
Strategy consulting expense           169 
Other EBITDA adjustments  252   (7)  681   296 
Adjusted EBITDA* $683  $1,565  $150  $13,321 

* Adjusted EBITDA is GAAP net income/loss plus interest income and expense, other income/expense, income tax benefit/expense, impairment, lease abandonment and termination, depreciation, amortization, stock-based compensation, restructuring, and strategy and cost-reduction related consulting expenses. In addition, Adjusted EBITDA excludes “Other” items related to non-restructuring wind down and severance 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.


ROSETTA STONE INC.

Reconciliation of Cash Provided by Operating Activities to Free Cash Flow
(in thousands)
(unaudited)

  Three Months Ended  Twelve Months Ended 
  December 31,  December 31, 
  2018  2017  2018  2017 
Net cash provided by operating activities $10,706  $6,648  $10,443  $18,960 
Purchases of property and equipment  (5,189)  (4,041)  (16,889)  (12,944)
Free cash flow * $5,517  $2,607  $(6,446) $6,016 

* Free cash flow is cash flow from operations minus cash used in purchases of property and equipment.

Rosetta Stone Inc.
Supplemental Information
(unaudited)

  Quarter-Ended

  Year
Ended
  Quarter-Ended

  Year
Ended
 
  Mar 31  Jun 30  Sep 30  Dec 31  Dec 31  Mar 31  Jun 30  Sep 30  Dec 31  Dec 31 
  2017  2017  2017  2017  2017  2018  2018  2018  2018  2018 
Revenue by Segment (in thousands,                                        
except percentages)                                        
                                         
Literacy  10,170   10,370   11,028   12,040   43,608   12,384   12,695   13,215   14,472   52,766 
E&E Language  16,500   17,260   16,529   14,978   65,267   15,436   15,356   14,990   14,594   60,376 
Consumer Language  21,023   18,275   18,649   17,771   75,718   14,988   15,451   14,545   15,508   60,492 
Total  47,693   45,905   46,206   44,789   184,593   42,808   43,502   42,750   44,574   173,634 
                                         
YoY Growth (%)                                        
Literacy  34%  30%  26%  23%  28%  22%  22%  20%  20%  21%
E&E Language  (10)%  (1)%  (10)%  (16)%  (9)%  (6)%  (11)%  (9)%  (3)%  (7)%
Consumer Language  (5)%  (10)%  (14)%  (26)%  (14)%  (29)%  (15)%  (22)%  (13)%  (20)%
Total  (1)%    (5)%  (13)%  (5)%  (10)%  (5)%  (7)%  (0)%  (6)%
                                         
% of Total Revenue                                        
Literacy  21%  22%  24%  27%  24%  29%  29%  31%  32%  30%
E&E Language  35%  38%  36%  33%  35%  36%  35%  35%  33%  35%
Consumer Language  44%  40%  40%  40%  41%  35%  36%  34%  35%  35%
Total  100%  100%  100%  100%  100%  100%  100%  100%  100%  100%
                                         
Revenues by Geography                                        
                                         
United States  41,241   39,384   39,661   38,539   158,825   36,965   37,759   37,747   39,936   152,407 
International  6,452   6,521   6,545   6,250   25,768   5,843   5,743   5,003   4,638   21,227 
Total  47,693   45,905   46,206   44,789   184,593   42,808   43,502   42,750   44,574   173,634 
                                         
Revenues by Geography (as a %)                                        
United States  86%  86%  86%  86%  86%  86%  87%  88%  90%  88%
International  14%  14%  14%  14%  14%  14%  13%  12%  10%  12%
Total  100%  100%  100%  100%  100%  100%  100%  100%  100%  100%

Prior period data has been modified where applicable to conform to current presentation for comparative purposes. Immaterial rounding differences may be present in this data in order to conform to Financial Statement totals.