Rosetta Stone 2014 Annual Report Download - page 28
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Table of Contents
Revenue
$ 261,853
$ 264,645
$ 273,241
$ 268,449
$ 258,868
Cost of revenue
53,054
45,714
48,910
49,116
38,999
Gross profit
208,799
218,931
224,331
219,333
219,869
Operating expenses:
Sales and marketing
173,208
146,104
150,882
160,942
130,335
Research and development
33,176
33,995
23,453
24,218
23,437
General and administrative
57,120
56,432
55,262
62,031
53,239
Impairment
20,333
—
—
—
—
Lease abandonment and termination
3,812
842
—
—
(583)
Total operating expenses
287,649
237,373
229,597
247,191
206,428
Income (loss) from operations
(78,850)
(18,442)
(5,266)
(27,858)
13,441
Other income and expense:
Interest income
17
117
187
302
262
Interest expense
(233)
(61)
—
(5)
(66)
Other (expense) income
(1,129)
368
3
142
(220)
Interest and other income (expense), net
(1,345)
424
190
439
(24)
Income (loss) before income taxes
(80,195)
(18,018)
(5,076)
(27,419)
13,417
Income tax expense (benefit)
(6,489)
(1,884)
28,909
(7,769)
(178)
Income (loss) attributable to common
stockholders
(73,706)
(16,134)
(33,985)
(19,650)
13,595
Income (loss) per share attributable to common
stockholders:
Basic
$ (3.47)
$ (0.75)
$ (1.61)
$ (0.95)
$ 0.67
Diluted
$ (3.47)
$ (0.75)
$ (1.61)
$ (0.95)
$ 0.64
Common shares and equivalents outstanding:
Basic weighted average shares
21,253
21,528
21,045
20,773
20,439
Diluted weighted average shares
21,253
21,528
21,045
20,773
21,187
Cost of revenue
$ 108
$ 175
$ 288
$ 55
$ 39
Sales and marketing
1,975
1,840
1,185
1,932
774
Research and development
958
1,460
1,547
2,448
1,181
General and administrative
3,721
5,766
4,989
7,918
2,393
Total stock-based compensation expense
$ 6,762
$ 9,241
$ 8,009
$ 12,353
$ 4,387
Cost of revenue
$ 586
$ 244
$ —
$ —
$ —
Sales and marketing
3,677
1,028
—
45
58
Research and development
2,000
550
40
40
—
General and administrative
—
—
—
—
—
Total intangible amortization expense
$ 6,263
$ 1,822
$ 40
$ 85
$ 58
_______________________________________________________________________________
(1) As discussed in Note 5 of Item 8, , the Company acquired Vivity Labs, Inc. on January 2, 2014 and
Tell Me More S.A. on January 9, 2014. The results of operations from these entities have been included from the acquisition date.
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