Acquisition of Tell Me More. Investor Presentation December 11, 2013

Similar documents
INFORMATION SERVICES GROUP ANNOUNCES SECOND QUARTER FINANCIAL RESULTS

First Quarter 2015 Earnings Conference Call. April 28, 2015

HILLENBRAND A GLOBAL DIVERSIFIED INDUSTRIAL COMPANY

Financial results Q Numericable-SFR returns to growth, EBITDA up by 21%

EQUINIX, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - GAAP PRESENTATION (in thousands, except per share data) (unaudited)

Mitel Q Earnings Call Presentation. November 5, 2015

4Q and FYE 2014 Results Conference Call

For personal use only CREATE, SUPPLY AND SUPPORT

Contact: Marcel Goldstein CSC PRESS RELEASE Corporate Public Relations August 6, 2013 CSC

The future of M&A in telecom

Q Financial Results Conference Call

Entercom Communications Corp. Reports First Quarter Results and Announces $0.075 Quarterly Dividend

FOR IMMEDIATE RELEASE

August 11, Q Earnings Presentation

Oceaneering Reports First Quarter 2016 Results

Hudson Highland Group. Investor Presentation

Equifax Reports Fourth Quarter and Full Year 2008 Results; Provides First Quarter 2009 Guidance

COMPANY CONTACTS: Jay S. Hennick Founder & CEO. D. Scott Patterson President & COO (416)

Hudson Highland Group. Investor Presentation

OpenText Announces Acquisition of GXS Transaction Summary Presentation

Fiscal Year 2015 Fourth Quarter Conference Call

IAC REPORTS Q RESULTS

Veritiv Corporation 2Q14 Financial Results. August 13, 2014

4th QUARTER FY 2016 EARNINGS PRESENTATION

Zynga Q1 14 Financial Results April 23, 2014

Numerex Reports First Quarter 2015 Financial Results

GAIN Capital to Acquire City Index

BlackBerry Reports 2015 Fiscal First Quarter GAAP Profitability

Third Quarter 2015 Financial Highlights:

Projecting the 3 Statements & 3-Statement Modeling Quiz Questions

JOHN WILEY & SONS, INC. UNAUDITED SUMMARY OF OPERATIONS FOR THE FIRST QUARTER ENDED JULY 31, 2011 AND 2010 (in thousands, except per share amounts)

Mergers and Acquisitions Trends in the Global Property and Casualty Insurance Industry

HP INC. AND SUBSIDIARIES CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS (Unaudited) (In millions, except per share amounts)

Weyerhaeuser Company Exhibit 99.2 Q Analyst Package Preliminary results, subject to audit Consolidated Statement of Operations

Consolidated Income Statements SAP-Group 3rd quarter

Second Quarter 2015 Investor Conference Call

ENDURING VALUES. INSPIRED PERFORMANCE. Fourth Quarter FY 2016 Earnings Conference Call

United Rentals Announces Fourth Quarter and Full Year 2015 Results and Provides 2016 Outlook

Regal Beloit Corporation Third Quarter 2014 Earnings Conference Call

BlackBerry Reports Software and Services Growth of 106 Percent for Q4 and 113 Percent for Fiscal 2016

Q1 Fiscal Year 2016 Earnings Conference Call

BlackBerry Reports Strong Software Revenue and Positive Cash Flow for the Fiscal 2016 First Quarter

Driving Shareholder Value

2012 Southwest IDEAS Investor Conference

Hudson Highland Group. February 24, 2005

Global Telecom & Technology Reports Fourth Quarter and Full Year 2010 Results

Definitions of Terms

Staples, Inc. Announces First Quarter 2016 Performance

Midwest Investment Conference

CFO Commentary on Full Year 2015 and Fourth-Quarter Results

N E W S R E L E A S E

Investor Deck Q3 2013

Consolidated sales of 6,347 million euros, up 10% on a like-for-like basis (7% as reported)

Regulation G Reconciliations

Performance Food Group Company Reports First-Quarter Fiscal 2016 Earnings

Safe Harbor Statement

Sierra Wireless Reports Second Quarter 2015 Results

So with these formalities out of the way, I d now like to turn the call over to our Co-Founder and CEO, Avishai Abrahami.

Cytec Announces First Quarter 2010 Results. As-Adjusted EPS of $0.66, Significantly Above Prior Year As-Adjusted EPS of $0.06

TripAdvisor Reports Fourth Quarter and Full Year 2013 Financial Results

2Q 14 Investor Presentation and Proposed Acquisition of Symmetry Medical OEM Solutions and Creation of a Standalone Symmetry Surgical August 4, 2014

Performance Food Group Company Reports Second-Quarter and First-Half Fiscal 2016 Results; Reaffirms Full-Year Fiscal 2016 Adjusted EBITDA Outlook

INTERIM REPORT Q1/2015

INFORMATION RELATED TO THIS COMMUNICATION

ITW Conference Call Third Quarter 2013

BlackBerry Reports Fiscal 2016 Second Quarter Results

Q Financial Results

Diodes Incorporated Reports Record Fourth Quarter and Full Year 2005 Results

Ferrari posted a record Q performance

2015 Fourth Quarter and Full Year Results Acquisition of TransFirst

Acquisition of Canexus Creating significant value for shareholders

SEAGATE TECHNOLOGY PLC CONDENSED CONSOLIDATED BALANCE SHEETS

Sapiens results in the first quarter represent a solid start to achieving our financial targets for the full year.

Regal Beloit Corporation Second Quarter 2014 Earnings Conference Call

Hungarian Telephone and Cable Corp.

BlackBerry Reports Record Software and Services Revenue for Q1 Fiscal 2017

Capmark Financial Group Inc. Announces Stand Alone Third Quarter 2014 Earnings Results for its Wholly Owned Subsidiary, Bluestem Brands, Inc.

2014 HALF YEAR RESULTS 4 September 2014

Neopost. FY 2002 results

AT&T to Acquire DIRECTV May 19, 2014

REPUBLIC SERVICES, INC. REPORTS THIRD QUARTER RESULTS

Luxottica s net income from continuing operations for fiscal year 2006 rises by 100 million or by 30% Cash dividend for FY 2006 to increase by 45%

Investor Presentation

Bats Reports First Quarter Adjusted Earnings Growth of 77%

Morgan Stanley TMT Conference. Barcelona November 12, 2015

Historical Quarterly Financials (Q1-14 through Q2-15)

! "#$ %&!& "& ' &*!&-.,,5///2!(.//+ & $!- )!* & % +, -).//0)& 7+00///2 *&&.4 &*!&- 7.00///2 )!*.//+ 8 -!% %& "#$ ) &!&.

Descartes Uniting Business in Commerce

Monster Worldwide Reports Third Quarter 2015 Results

Burlington Stores, Inc. Announces Operating Results for the Fourth Quarter and Fiscal Year Ended February 1, 2014

Belden. Leading the Way to an Interconnected World. August Belden Inc.

High Yield Market and Bumble Bee Credit Analysis. Amil V. Schiaffino, CFA High Yield Strategist

Hungarian Telephone and Cable Corp.

AMAG to Acquire Cord Blood Registry

Sierra Wireless Corporate Overview. February 2015

SunGard Announces Third Quarter 2006 Results

Executive Summary. 1. Volumes:

Regal Beloit s acquisition of A.O. Smith s Electrical Products Company A Strategically Important Acquisition

DELL INC. Condensed Consolidated Statement of Income and Related Financial Highlights (in millions, except per share data and percentages) (unaudited)

33% increase in ADSL Free Cash Flow to 436 million. Successful integration of Alice with a positive contribution of 83 million to the Group s EBITDA

Transcription:

Acquisition of Tell Me More Investor Presentation December 11, 2013

Transaction Summary Agreement to acquire leading international language-learning software company, Tell Me More ( TMM ) 20.75MM ($28MM) purchase price, including assumed net debt for 100% of Tell Me More S.A. stock Expected to close in early January 2014 Average annual bookings of ~ 20MM over last 3 years A leader in the B2B market 2

Company Profile Tell Me More is a ~ 20MM ($27MM) language-learning software provider with 7 offices worldwide in 6 countries Based outside Paris, France ~250 worldwide employees Core product is an online, SaaS language learning platform covering 9 languages sold to the B2B market 19 Interface languages Extensive content and activities 8,000+ hours of total content and over 35 different activity types Offers training services: Tutoring, Coaching, Virtual Classrooms, and Telephone lessons to complement software Bookings 1 B2C 6% B2B 94% Corporate 54% 46% Education B2B Bookings 1 1. Bookings represent executed sales contracts received by the Company that are either recorded immediately as revenue or as deferred revenue. 3

2013 2014 Strategic Rationale: Tell Me More Is A Natural & Complementary Fit 1 Bolsters Rosetta Stone s position in the Global B2B language market Creates leading player in several markets Serve more customers and deliver more complete solutions around the world 3 Delivers Intermediate & Advanced Language Solutions for E&E and Consumer 2 4 Expands Geographic footprint for our European business and adds China Leverages Rosetta Stone Brand, Scale and Infrastructure Combined capabilities will create global opportunities for growth Significant synergy potential Captures significant EBITDA and cash flow benefits 4

Combination Creates a More Global Footprint and Expands B2B Presence RST Markets TMM Markets Shared Markets 5

Complementary Suite of Products and Services: Delivering A Full Spectrum of Learner Solutions TMM has Advanced & Intermediate content for 9 languages with Placement, Assessment and Certification that aligns with standards English Spanish French German Italian Dutch Japanese Mandarin Arabic Beginner thru Advanced Content Up to 2,000 hours per language, 8,000 total content hours 16,000 Words 5,000 Phrases Sources: U.S. Consumer Segmentation Study by Rosetta Stone (June 2013); TopTenReviews.com ESL Software Category (Accessed August 29 th 2013); Rosetta Stone Research & Analysis. 6

Leverage & Scale Opportunities Scale Advantage from Sales & Marketing Infrastructure Unify Direct Sales Forces Cross-selling and Up-selling Opportunities Leverage Rosetta Stone Brand Drive Growth & Cash Flow Introduce New Products into Consumer Markets 7

Financials & Outlook

Tell Me More Historical Financials Overview Historical B2B and B2C Bookings TMM has had modest B2B bookings 1 growth De-emphasized B2C business resulted in declining B2C metrics Flat to slightly-positive Adjusted Operating EBITDA 2 and margin Key Historical Financial Metrics Historical Bookings & EBITDA ($ in millions) Bookings 2010 2011 2012 B2B $22.6 $24.8 $24.5 B2C $5.7 $4.5 $2.6 Total Bookings $28.4 $29.3 $27.1 Book ings Growth 2% 3% -8% Adj. Operating EBITDA ($0.7) $1.3 $0.5 Margin % (2%) 4% 2% 1.Bookings represent executed sales contracts received by the Company that are either recorded immediately as revenue or as deferred revenue. 2.Adjusted Operating EBITDA is GAAP net income or loss plus interest income and expense, income tax benefit and expense, depreciation, amortization and stock-based compensation expenses, plus the change in deferred revenue. Adjusted EBITDA excludes any items related to the litigation with Google Inc., restructuring costs and transaction and other costs, including integration expenses, associated with mergers and acquisitions. 9

Financial Outlook General Commentary Expected closing is early January 2014 Fully integrate into Rosetta Stone Quickly move to operate under RS brand Expect significant synergies Unify sales forces Leverage sales and marketing infrastructure Leverage combined customer database to cross-sell and up-sell 2014 Impact/Contribution 2015 & Beyond Bookings 1 of $25MM to $27MM Adjusted Operating EBITDA 2 of $3MM to $4MM Neutral to cash from operations due to integration expenses Modest top line growth expectations 25%+ Adjusted Operating EBITDA margin contribution 1.Bookings represent executed sales contracts received by the Company that are either recorded immediately as revenue or as deferred revenue. 2.Adjusted Operating EBITDA is GAAP net income or loss plus interest income and expense, income tax benefit and expense, depreciation, amortization and stock-based compensation expenses, plus the change in deferred revenue. Adjusted EBITDA excludes any items related to the litigation with Google Inc., restructuring costs and transaction and other costs, including integration expenses, associated with mergers and acquisitions. 10