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Even so, Rosetta Stone has narrowed its losses in that time, posting a net loss of $1.5 million last year, from a loss of $27.5 million the year before. In 2017, Rosetta Stone reported $184.6 million in revenue, down from $194 million the year before and $217.6 million in 2016. The shift from yellow boxes and CDs to subscription services has also changed the companyвЂ™s financial picture. Dan Holmes, senior vice president of global sales and marketing, spent 14 years at research and consulting powerhouse Gartner.Greg Spils, vice president of product for the language division, worked at Microsoft, Amazon, Rhapsody and Shazam before joining Rosetta Stone in March.Roya Salehi, vice president of literacy customer success, has been an executive at education companies Achieve3000 and Kaplan.Christine Chambers, vice president of finance, joined Rosetta Stone from RealNetworks and also worked previously for the Bill & Melinda Gates Foundation.Huang is one of several key hires the company has made in recent months to bolster its executive ranks. вЂњThe biggest opportunity is outside of United States and weвЂ™re going to be investing there,вЂќ Hulett said, pointing to the Asia-Pacific region in particular as a large opportunity to serve language learners. But in other parts of the world, itвЂ™s a must-have, and itвЂ™s not uncommon for people to speak several languages. In the U.S., a second language is often valued, but not always considered necessary.

Hulett, who is currently working on learning Spanish as a second language, said he believes the international potential is significant. The company is announcing Tuesday morning that Jerry Huang, former chief operating officer of Chinese English learning company iTutorGroup, has joined Rosetta Stone as senior vice president for international expansion of the language division, based out of the Seattle office. Rosetta Stone has since made that shift to the world of subscription services and mobile apps, and its next big push will focus on international growth.

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Livemocha was founded by serial entrepreneur Shirish Nadkarni, who was inspired to launch the startup after seeing Rosetta StoneвЂ™s boxes at the airport and asking, вЂњWhy in the world is that service not on the Internet?вЂќ Jerry Huang. The company acquired Livemocha, a Seattle-based online language community, for $8.5 million in 2013, and shut down the service in 2016. The current office isnвЂ™t Rosetta StoneвЂ™s first foray into Seattle. The companyвЂ™s other main division focuses on literacy, through Lexia, a Boston company that Rosetta Stone acquired in 2013 for $22.5 million. Within the companyвЂ™s language business, Rosetta Stone has teams that sell subscription products to enterprises, nonprofits, K-12 schools, universities and government agencies, as well as a consumer-facing language learning division. вЂњI want people to know that weвЂ™re back, that weвЂ™re a digital SaaS product thatвЂ™s vibrant, and weвЂ™re going to be growing.вЂќ вЂњMost people, when you ask them about Rosetta Stone, they have some nostalgic feeling about the yellow box and the CD,вЂќ said Matt Hulett, the Seattle tech veteran who joined the company just over a year ago as its president of language, based out of the Seattle office.

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ThatвЂ™s a small portion of Rosetta StoneвЂ™s 700 worldwide employees, but the company has been making a series of key hires in Seattle as it adapts to a new era of the cloud and mobile devices. The downtown Seattle office of the publicly traded, Arlington, Va.-based company has expanded to 30 people over the past year. Rosetta Stone is known for its iconic yellow boxes, but the company has shifted to digital subscriptions, while the cloud and mobile apps are reshaping its business. Rosetta Stone, the 26-year-old language learning company, has been quietly reinventing itself, and the companyвЂ™s growing Seattle outpost is increasingly playing a significant role in that transformation.

Matt Hulett, president of Rosetta StoneвЂ™s language division and a veteran of the Seattle tech community, in the companyвЂ™s downtown Seattle office.

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