NEW YORK, March 4, 2009 (GLOBE NEWSWIRE) -- thinkorswim Group Inc. (Nasdaq:SWIM), a leading provider of online brokerage and investor education services, today announced financial results for the full year and fourth quarter ended December 31, 2008.
Full Year Highlights (year-over-year comparisons):
-- Record revenues of $371.8 million, 53 percent of which were
brokerage-based
-- Record pre-tax income of $81.0 million, 22 percent of revenues
-- Record net income of $59.4 million, or $0.87 per diluted share
-- Non-GAAP Sales Transaction Volume ("STV") of $320.7 million, 62
percent of which was brokerage-based
-- Non-GAAP Adjusted EBITDA (before certain items) of $76.5 million,
or 24 percent of STV
-- Record new accounts opened of 108,850. Total accounts of 233,025,
an increase of 88 percent
-- Record funded accounts of 97,800 at year-end, an increase of 69
percent
-- Record average retail trades per day of 54,200, an increase of
101 percent
-- Record client assets of $3.0 billion, an increase of 17 percent
Fourth Quarter Highlights (quarterly year-over- year comparisons):
-- Revenues of $85.8 million, 57 percent of which were
brokerage-based
-- Pre-tax income of $12.2 million, 14 percent of revenues
-- Net income of $9.5 million, or $0.14 per diluted share
-- Non-GAAP Sales Transaction Volume ("STV") of $76.6 million,
64 percent of which was brokerage-based
-- Non-GAAP Adjusted EBITDA (before certain items) of $15.7 million,
or 21 percent of STV; Pro forma non-GAAP Adjusted EBITDA (before
certain items) of $19.4 million, or 25 percent of STV
-- New accounts opened of 32,700, an increase of 44 percent
-- New funded accounts of 12,175 during the quarter, an increase of
10 percent
-- Average retail trades per day of approximately 61,400, an
increase of 47 percent
-- Annualized brokerage revenue per funded account of $1,800
-- Customer acquisition cost per new funded account of $440
"thinkorswim delivered strong performance in a highly volatile market, primarily driven by robust growth in new accounts and trading volume in our brokerage business. Full year revenue increased 17 percent from the prior year and reached a record $371.8 million for 2008, while non-GAAP Adjusted EBITDA was $76.5 million. These results reflect the continued appeal of thinkorswim's brokerage platform, our relevance to the needs of active traders, and our position as an industry leader," said Lee Barba, chairman and chief executive officer of thinkorswim.
Analysis of Fourth Quarter 2008 Results
(All comparisons are to the corresponding year-ago period unless otherwise indicated)
For the fourth quarter, brokerage revenue increased 18% to $48.9 million, driven by a 35% increase in transaction revenues (commissions and payment for order flow) offset by a 54% decrease in interest revenue. The increase in transaction revenue was primarily due to the 69% increase year-over-year in retail funded accounts and 47% year-over-year increase in retail DARTs. The net interest revenue decline was primarily due to the dramatic year-over-year decline in the average federal funds rate, partly offset by the 17% increase in client assets to $3.0 billion at year end, of which $1.5 billion is held in cash.
Fourth Quarter 2008 Pro Forma Results
Financial results for the quarter include approximately $3.7 million in brokerage, clearing and execution costs related to unusually large amounts of customer write-offs and trade errors, as well as approximately $1.0 million in other costs and expenses related to the proposed acquisition by TD AMERITRADE. Adjusting for these items, the Company had pro forma operating income of $19.6 million, net income of $13.2 million and earnings per diluted share of $0.20. Non-GAAP Adjusted EBITDA excluding these items was $19.4 million and 25% of STV.
Proposed Acquisition by TD AMERITRADE Announced January 8, 2009
On January 8, 2009, thinkorswim Group Inc. and TD AMERITRADE (Nasdaq:AMTD) announced that they had entered into a definitive agreement for TD AMERITRADE to acquire thinkorswim in a cash and stock deal valued at that time at approximately $606 million.
Basis of Presentation
The Company has concluded that, in an effort to provide a better understanding of its operations, the level of detail presented on the face of the Statements of Operations should be modified from the "Analysis by Function of expense" approach, to the "Analysis by Nature of Expense" approach. In the Company's opinion, this new methodology will provide greater transparency of management direction while fairly presenting its results of operations.
About thinkorswim Group Inc. (Nasdaq:SWIM)
thinkorswim Group Inc. (www.thinkorswim.com) offers market-leading online brokerage, investor education and related financial products and services for self-directed investors and active traders. thinkorswim, Inc., our award-winning online brokerage division, provides a suite of trading platforms serving self-directed and institutional traders and money managers. thinkorswim platforms have easy-to-use interfaces, sophisticated analytical and research tools, and fast and efficient order execution for even the most complex trading strategies. thinkorswim customers trade a broad range of products including stock and stock options, index options, futures and futures options, forex, mutual funds and fixed income. Investools' Education Group, a subsidiary of thinkorswim Group Inc., offers a full range of investor education products and services that provide lifelong learning in a variety of interactive delivery formats. Investools' graduates can then apply what they've learned by trading with thinkorswim's online brokerage platforms.
The thinkorswim Group Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=5555
Additional Information and Where to Find It
In connection with the proposed acquisition, TD AMERITRADE filed with the Securities and Exchange Commission (the "SEC"), a Registration Statement on Form S-4 that includes a proxy statement of thinkorswim, which also constitutes a prospectus of TD AMERITRADE. thinkorswim will mail the proxy statement/prospectus to its stockholders after the foregoing registration statement is declared effective by the SEC. TD AMERITRADE and thinkorswim urge investors and security holders to read the proxy statement/prospectus regarding the proposed acquisition because it contains important information. You may obtain a free copy of the proxy statement/prospectus and other related documents filed by thinkorswim and TD AMERITRADE with the SEC at the SEC's website at www.sec.gov. The proxy statement/prospectus (when the registration statement in which it is included is declared effective) and the other documents may also be obtained for free by accessing thinkorswim's website at www.thinkorswim.com by clicking on the link for "Investors", then clicking on the link for "Financial Reports" and then clicking on the link for "SEC Filings" or by accessing TD AMERITRADE's website at www.amtd.com and clicking on the "Investor Relations" link and then clicking on the link for "SEC Filings".
Participants in this Transaction
thinkorswim, TD AMERITRADE and their respective directors, executive officers and certain other members of management and employees may be soliciting proxies from thinkorswim stockholders in favor of the acquisition. Information regarding the persons who may, under the rules of the SEC, be considered participants in the solicitation of thinkorswim stockholders in connection with the proposed acquisition is set forth in the proxy statement/prospectus filed with the SEC by TD AMERITRADE. You can find information about thinkorswim's executive officers and directors in thinkorswim's definitive proxy statement filed with the SEC on April 29, 2008. You can find information about TD AMERITRADE's executive officers and directors in their definitive proxy statement filed with the SEC on January 6, 2009. You can obtain free copies of these documents from thinkorswim or TD AMERITRADE using the contact information above.
Safe Harbor
This press release may contain forward-looking statements. Such forward-looking statements may be identified by words such as "believe," "intend," "expect," "may," "could," "would," "will," "should," "plan," or similar statements. All forward-looking statements are based largely on current expectations, beliefs and assumptions concerning future events that are subject to substantial risks and uncertainties. These risks and uncertainties include, but are not limited to: general changes in economic conditions and changes in conditions affecting the financial services industry specifically, regulatory developments that affect the way we market or sell our products and services, our inability to protect our proprietary technology, our ability to sell existing products and services in both new and existing markets, and other factors which are more fully described in thinkorswim Group Inc.'s filings with the SEC. Should one or more of these risks or uncertainties materialize, actual results may vary in material aspects from those currently anticipated. The forward-looking statements made in this press release relate only to events as of the date of this release. We undertake no ongoing obligation to update these statements.
THINKORSWIM GROUP INC. AND SUBSIDIARIES
Consolidated Statements of Operations
(in thousands, except per share amounts)
(unaudited)
Three Months Ended
--------------------------------------------
Dec. 31, Sept. 30, June 30, March 31,
2008 2008 2008 2008
-------- -------- -------- --------
Revenue
Commissions $ 35,216 $ 39,290 $ 33,126 $ 26,258
Interest & dividends 3,659 7,109 6,198 7,668
Payment for order flow 7,386 8,451 7,869 6,574
Other brokerage
related revenue 2,594 2,140 1,764 1,966
-------- -------- -------- --------
Total brokerage
revenue 48,855 56,990 48,957 42,466
Education revenue 36,904 41,075 48,034 48,524
-------- -------- -------- --------
Net revenues 85,759 98,065 96,991 90,990
-------- -------- -------- --------
Costs and expenses
Compensation and
benefits 19,411 19,955 22,545 22,057
Brokerage, clearing
and execution costs 13,000 11,950 7,962 7,570
Marketing 7,058 8,599 10,164 13,359
Partner commissions 9,075 4,954 6,795 6,530
Events, travel and
venue 4,818 5,810 4,501 6,268
Technology and
telecommunications 6,338 5,780 6,220 6,246
Depreciation and
amortization 6,121 6,198 6,033 5,908
Other 5,003 5,605 5,382 5,336
-------- -------- -------- --------
Total costs and
expenses 70,824 68,851 69,602 73,274
-------- -------- -------- --------
Income from
operations 14,935 29,214 27,389 17,716
Other income (expense)
Interest expense, net (2,916) (2,140) (264) (4,190)
Interest income 220 384 272 455
Other (89) (13) -- 14
-------- -------- -------- --------
Other income
(expense) (2,785) (1,769) 8 (3,721)
-------- -------- -------- --------
Net income before
income taxes 12,150 27,445 27,397 13,995
Income tax provision 2,606 7,806 8,754 2,468
-------- -------- -------- --------
Net income $ 9,544 $ 19,639 $ 18,643 $ 11,527
======== ======== ======== ========
Net income per common
share:
Basic $ 0.14 $ 0.30 $ 0.28 $ 0.18
======== ======== ======== ========
Diluted $ 0.14 $ 0.29 $ 0.27 $ 0.17
======== ======== ======== ========
Weighted average common
shares outstanding:
Basic 66,500 66,406 66,043 65,846
======== ======== ======== ========
Diluted 68,283 68,531 68,754 68,860
======== ======== ======== ========
THINKORSWIM GROUP INC. AND SUBSIDIARIES
Consolidated Statements of Operations
(in thousands, except per share amounts)
(unaudited)
Three Months Ended Year Ended
December 31, December 31,
-------------------- --------------------
2008 2007 2008 2007
-------- -------- -------- --------
Revenue
Commissions $ 35,216 $ 25,310 $133,890 $ 67,734
Interest & dividends 3,659 7,985 24,634 20,961
Payment for order flow 7,386 6,186 30,280 16,293
Other brokerage
related revenue 2,594 1,960 8,464 5,894
-------- -------- -------- --------
Total brokerage
revenue 48,855 41,441 197,268 110,882
Education revenue 36,904 52,634 174,537 207,127
-------- -------- -------- --------
Net revenues 85,759 94,075 371,805 318,009
-------- -------- -------- --------
Costs and expenses
Compensation and
benefits 19,411 23,164 83,968 95,743
Brokerage, clearing
and execution costs 13,000 6,351 40,482 16,052
Marketing 7,058 13,388 39,180 51,832
Partner commissions 9,075 8,649 27,354 35,542
Events, travel and
venue 4,818 6,355 21,397 28,566
Technology and
telecommunications 6,338 4,987 24,584 18,565
Depreciation and
amortization 6,121 5,419 24,260 19,601
Other 5,003 5,155 21,326 19,339
-------- -------- -------- --------
Total costs and
expenses 70,824 73,468 282,551 285,240
-------- -------- -------- --------
Income from
operations 14,935 20,607 89,254 32,769
Other income (expense)
Interest expense, net (2,916) (3,378) (9,510) (11,059)
Interest income 220 574 1,331 1,868
Other (89) 5 (88) 7
-------- -------- -------- --------
Other expense (2,785) (2,799) (8,267) (9,184)
-------- -------- -------- --------
Net income before
income taxes 12,150 17,808 80,987 23,585
Income tax provision 2,606 -- 21,634 1,150
-------- -------- -------- --------
Net income $ 9,544 $ 17,808 $ 59,353 $ 22,435
======== ======== ======== ========
Net income per common
share:
Basic $ 0.14 $ 0.27 $ 0.90 $ 0.36
======== ======== ======== ========
Diluted $ 0.14 $ 0.26 $ 0.87 $ 0.34
======== ======== ======== ========
Weighted average common
shares outstanding:
Basic 66,500 65,510 66,202 62,942
======== ======== ======== ========
Diluted 66,283 68,497 68,485 65,790
======== ======== ======== ========
THINKORSWIM GROUP INC. AND SUBSIDIARIES
Consolidated Balance Sheets
(in thousands)
(unaudited)
Dec. 31, Dec. 31,
2008 2007
-------- --------
ASSETS
Current assets:
Cash and cash equivalents $ 82,560 $ 61,579
Marketable securities -- 1,501
Accounts receivable, net of allowance
($150 and $198, respectively) 4,980 11,131
Receivable from clearing brokers 5,738 5,503
Income tax receivable 3,207 --
Deferred tax asset 16,972 13,496
Other current assets 9,179 9,622
-------- --------
Total current assets 122,636 102,832
Long-term restricted cash 373 389
Goodwill 209,546 208,776
Intangible assets, net of accumulated
amortization ($32,278 and $17,330,
respectively) 117,639 132,587
Software development cost, net of accumulated
amortization ($8,470 and $3,363, respectively) 26,198 26,939
Furniture and equipment, net of accumulated
depreciation ($12,931 and $8,726, respectively) 6,259 8,007
Other long-term assets 25,557 29,800
-------- --------
Total assets $508,208 $509,330
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current portion of deferred revenue $ 80,391 $124,486
Other current liabilities 19,889 17,825
Accounts payable 4,196 8,896
Accrued payroll 9,463 13,278
Accrued tax liabilities 6,019 7,544
Current portion of capitalized lease
obligations 235 212
Current portion of notes payable 30,000 17,500
-------- --------
Total current liabilities 150,193 189,741
Long-term portion of deferred revenue 30,392 37,384
Long-term portion of capitalized lease
obligations 104 330
Long-term portion of notes payable 64,400 100,000
Income tax payable 2,096 --
Deferred tax liabilities 30,555 18,487
Other long-term accrued liabilities 2,579 1,493
-------- --------
Total liabilities 280,319 347,435
Stockholders' equity:
Common stock $0.01 par value (66,500 and
65,655 shares issued and outstanding,
respectively) 665 656
Additional paid-in capital 337,805 331,006
Accumulated other comprehensive (loss)
income (147) 20
Accumulated deficit (110,434) (169,787)
-------- --------
Total stockholders' equity 227,889 161,895
-------- --------
Total liabilities and stockholders' equity $508,208 $509,330
======== ========
THINKORSWIM GROUP INC. AND SUBSIDIARIES
Consolidated Statements of Cash Flows
(in thousands)
(unaudited)
Three Months Ended Year Ended
December 31, December 31,
-------------------- --------------------
2008 2007 2008 2007
-------- -------- -------- --------
Cash flows from
operating activities:
Net income $ 9,544 $ 17,808 $ 59,353 $ 22,435
Reconciling
adjustments:
Depreciation and
amortization 6,121 5,419 24,260 19,601
Deferred taxes 657 (136) 9,956 37
Stock compensation
expense 1,960 1,934 8,252 15,325
Amortization of
exclusivity rights 311 293 1,226 1,172
Contingent shares
in connection with
exclusivity rights
and intellectual
property acquired -- 1,359 -- 3,550
Amortization of
debt issue costs 240 275 1,044 1,043
Change in fair
value of interest
rate swap, included
in interest expense 1,155 999 1,086 1,478
Provision for
(recovery of) sales
return reserve (93) 471 1,032 1,363
Provision for (gain)
on lease termination -- (31) -- 105
Provision for bad
debt expense 3 70 3 313
Provision for
(recovery of)
inventory reserve -- (68) -- 2
(Gain) Loss on sale
of assets (3) (3) 1 19
Gain on marketable
securities -- (4) (7) --
Changes in operating
assets and
liabilities, net
of the effect of
acquired businesses:
Accounts
receivable 2,489 7,776 6,148 (3,641)
Receivable from
clearing brokers 6,373 4,959 (235) (1,155)
Income tax
receivable (2,403) (62) (3,207) --
Other assets 3,163 (5,492) 100 127
Accounts payable (7,356) (4,942) (5,181) (7,287)
Deferred revenue (9,179) (5,497) (51,087) 2,295
Accrued payroll (1,625) 81 (3,815) 4,758
Other liabilities 284 (1,903) 2,639 (7,750)
Accrued tax
liabilities 1,953 (498) 812 (668)
-------- -------- -------- --------
Net cash
provided by
operating
activities 13,594 22,808 52,380 53,122
-------- -------- -------- --------
Cash flows from
investing activities:
Proceeds from the
sale or maturity of
marketable securities -- 1,300 1,501 20,641
Proceeds from the
sale of equipment -- 5 -- 30
Payments for
capitalized software
development costs (918) (4,888) (6,040) (16,357)
Purchases of furniture
and equipment (450) (648) (2,105) (3,750)
Cash held in escrow 130 102 1,188 (8,298)
Cash paid in business
acquisitions, net of
cash received (130) (1,040) (1,188) (150,387)
-------- -------- -------- --------
Net cash used
in investing
activities (1,368) (5,169) (6,644) (158,121)
-------- -------- -------- --------
Cash flows from
financing activities:
Payments on capital
leases (56) (51) (203) (190)
Payments on notes
payable (2,500) (2,500) (23,100) (7,500)
Changes in restricted
cash -- (4) 16 (12)
Proceeds from notes
payable -- -- -- 125,000
Payment of debt
issuance costs -- -- -- (4,539)
Disqualifying
dispositions in
exercise of stock
options 75 -- 75 --
Minimum tax
withholding on
restricted stock
awards (4) -- (434) --
Repurchase of stock -- -- (1,455) --
Proceeds from exercise
of stock options 2 221 506 882
-------- -------- -------- --------
Net cash (used
in) provided by
financing
activities (2,483) (2,334) (24,595) 113,641
-------- -------- -------- --------
Effect of exchange rates
on cash and cash
equivalents (135) (13) (160) 14
-------- -------- -------- --------
Increase in cash and
cash equivalents 9,608 15,292 20,981 8,656
Cash and cash
equivalents:
Beginning of period 72,952 46,287 61,579 52,923
-------- -------- -------- --------
End of period 82,560 61,579 82,560 61,579
======== ======== ======== ========
THINKORSWIM GROUP INC. AND SUBSIDIARIES
Financial Summary
(unaudited)
Reconciliation of Non-GAAP Information
The following table provides a reconciliation of GAAP Net Income to non-GAAP Adjusted EBITDA for the periods presented. The Company believes Adjusted EBITDA is an important measure of operating performance given the impact of accounting for deferred revenue and certain other costs.
in (millions) Three Months Ended Years Ended
Dec. 31, Sept. 30, Dec.31, Dec. 31, Dec. 31,
2008 2008 2007 2008 2007*
------ ------ ------ ------ ------
Net income $ 9.5 $ 19.6 $ 17.8 $ 59.4 $ 16.9
Depreciation and
amortization 6.7 6.8 7.2 26.5 25.7
Stock compensation
expense 2.0 2.0 1.9 8.3 15.3
Special charges,
including deal related 1.4 1.1 -- 3.6 11.7
Interest expense, net 2.7 1.8 2.8 8.2 9.1
Income tax provision 2.6 7.8 -- 21.6 1.1
Net change in deferred
revenue (9.2) (16.3) (5.5) (51.1) 3.5
------ ------ ------ ------ ------
Adjusted EBITDA ($) 15.7 22.8 24.2 76.5 83.3
------ ------ ------ ------ ------
Adjusted EBITDA (as a
% of STV) 20.5% 27.9% 27.3% 23.9% 25.1%
------ ------ ------ ------ ------
The following table provides a breakout of Revenue on an unaudited basis for all periods presented and a reconciliation of non-GAAP Sales Transaction Volume ("STV") to GAAP Revenue. STV represents sales in a particular period before the effects of deferred revenue recognition from prior periods and the deferral of current period sales. The Company believes STV is an important measure of business volume in the Investor Education segment.
in (000s) Three Months Ended Years Ended
Dec. 31, Sept. 30, Dec. 31, Dec. 31, Dec. 31,
2008 2008 2007 2008 2007*
-------- -------- -------- -------- --------
Brokerage Services
Commissions $ 35,216 $ 39,290 $ 25,310 $133,890 $ 74,530
Interest &
dividends 3,659 7,109 7,985 24,634 22,958
Payment for
order flow 7,386 8,451 6,186 30,280 17,114
Other revenue 2,594 2,140 1,960 8,464 6,667
-------- -------- -------- -------- --------
Total brokerage
services revenue 48,855 56,990 41,441 197,268 121,269
-------- -------- -------- -------- --------
Investor Education
Sales transaction
volume 27,725 24,824 47,137 123,450 210,398
-------- -------- -------- -------- --------
Total sales
transaction volume 76,580 81,814 88,578 320,718 331,667
Change in deferred
revenue 9,179 16,251 5,497 51,087 (3,528)
-------- -------- -------- -------- --------
Revenue 85,759 98,065 94,075 371,805 328,139
======== ======== ======== ======== ========
* The Company's SEC filings for 2007 reflect Investools' merger with
thinkorswim Holdings, Inc. on February 15, 2007. However, for
comparative purposes, the year ended December 31, 2007 have
included results of operations as if the merger occurred on
January 1, 2007 (pro-forma). The Company believes that given the
size of the merger, comparing actual to actual would not be the
most representative way to explain our operating results.
Segment Information
The following table provides information on an unaudited basis concerning thinkorswim Group Inc.'s operations by reportable segment for the periods presented. The Company's SEC filings and the table below reflects consolidated results following the Company's merger with thinkorswim Holdings, Inc., on February 15, 2007 and the Company's stand-alone results through February 14, 2007.
in (000s) Three Months Ended Years Ended
December 31, December 31,
-------------------- --------------------
2008 2007 2008 2007
-------- -------- -------- --------
Revenue
-------
Brokerage Services $ 48,855 $ 41,441 $197,268 $110,882
Investor Education 36,904 52,634 174,537 207,127
-------- -------- -------- --------
Revenue 85,759 94,075 371,805 318,009
-------- -------- -------- --------
Income (Loss) from
Operations
------------------
Brokerage Services $ 15,466 $ 18,627 $ 82,361 $ 42,598
Investor Education (531) 1,980 6,893 (9,829)
-------- -------- -------- --------
Income from
operations 14,935 20,607 89,254 32,769
-------- -------- -------- --------
THINKORSWIM GROUP INC. AND SUBSIDIARIES
Operating Metrics thru December 31, 2008
Three Months Ended Year Ended
December 31, December 31,
------------------------ ------------------------
thinkorswim Inc. 2008 2007 2008 2007
---------------- ----------- ----------- ----------- -----------
Trading Days 63.0 63.0 251.5 249.5
New Retail
Accounts
Opened(1) 32,700 22,675 108,850 75,875
New Funded
Retail Accounts 12,175 11,075 45,200 38,325
Period-End
Funded Retail
Accounts 97,800 57,775 97,800 57,775
Retail DARTs(2) 61,400 41,900 54,200 27,000
Active Trader
DARTs(3) 118,300 20,400 78,400 23,300
----------- ----------- ----------- -----------
Total DARTs 179,700 62,300 132,600 50,300
Total Trades 11,325,000 3,926,000 33,361,000 12,552,000
Ending Client
Assets ($MM) $ 3,020 $ 2,580 $ 3,020 $ 2,580
Average Client
Equity/Retail
Account $ 30,900 $ 44,900 $ 30,900 $ 44,900
Retail
Commission
Per Trade $ 8.41 $ 9.01 $ 8.41 $ 9.01
Investor Education
Group
------------------
Total Paid
Graduates(4) 18,330 12,260 47,890 43,090
Ending Cumulative
Graduates(5) 398,000 337,000 398,000 337,000
Ending Active
Subscribers(6) 97,600 102,800 97,600 102,800
Upsell Rate(7) 25% 40% 32% 42%
----------- ----------- ----------- -----------
PHD program 10% 16% 10% 19%
Masters program 14% 20% 14% 24%
Associates
program 34% 31% 36% 30%
Apprentice 34% 0% 14% 0%
Trading rooms 8% 33% 26% 27%
--------------------------------------------------------------------
(1) Accounts opened are accounts that have initiated the application
process with the intent to fund.
(2) Retail DARTs are trades executed using the retail thinkorswim
platform.
(3) Active Trader DARTs are trades executed using an active trader
platform such as thinkpipes.
(4) Includes students who graduated from both the Foundation Course
and the Currency Trader Course.
(5) Cumulative graduates include graduates and their guest attendees
at workshops.
(6) Active Subscribers include subscribers to Investools Online,
prophet.net, and Investools FX.
(7) This table illustrates the workshop upsell rates during the
periods indicated. Workshop upsell rates are the sales that take
place at the workshops of advanced product sales. Upsell rates
do not include sales from the Company's other sales operations.