Rosetta Stone | Learn Languages, Be More Employable

Natural language software

In a challenging economy, it’s important to be as diverse as possible in your skill set. Employers like employees who can bring something valuable to the table. Being able to communicate in multiple languages is quite valuable in a business setting. It’s like an online cash advance for expanding the sales market. It can also be culturally enriching on a personal level. Whatever the case, it doesn’t take reading the cards to credit someone who takes the initiative to improve.

The only exposure to a foreign language many Americans have is through required high school and college courses. However, if you have a computer and a bit of extra money to spend, Rosetta Stone computer software is a fun way to learn a new language (I’ve tried Spanish, Japanese and Arabic). And now that the Rosetta Stone IPO has occurred, you’re going to be seeing more of them.

A good first day

Tim Mullaney reports for Bloomberg that Rosetta Stone Inc. made a killing in its first day of trading after raising “more than expected” in its initial public offering. The stock jumped 40 percent by 4 p.m. EST in New York Stock Exchange composite trading. Underwriters from Morgan Stanley and William Blair & Co. started the price at $18 per share, which turned out to be more than the company’s own projection of $15 to $17.

Investors are optimistic Rosetta Stone will earn enough money through the sale of stock to extend their reach further outside the United States. In doing so, it seems likely that they would grab their share of the $83 billion annual share of the post-college language learning pie.

A world of sales to be had

To their credit, Rosetta Stone has boosted sales of their software more than 50 percent in each of the past two years. Yet 90 percent of their earnings still come from the United States. They are confident that this public stock offering will be their ticket to the world.

Indeed, part of the proceeds will pay for that expansion, says CEO Tom Adams. According to Mullaney, the company also “plans to supplement its product line with an online ‘socialization environment,’” which will enable customers to practices their language skills while making friends.

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