PR Newswire
SEATTLE, Feb. 10, 2021
SEATTLE, Feb. 10, 2021 /PRNewswire/ -- RealNetworks, Inc. (Nasdaq: RNWK), a leader in AI-powered digital media software and services, today announced its financial results* for the fourth quarter and full year ended December 31, 2020.
Management Commentary
"2020 was a year of strong achievements for RealNetworks in spite of the challenges associated with the Global Pandemic that had a huge impact on businesses and people around the globe," said Rob Glaser, Founder, Chairman, and Chief Executive Officer of RealNetworks. "Revenue from two of our key growth initiatives – free-to-play mobile Games and SAFR – grew over 110% from 2019. We are also pleased to have completed the sale of Napster to MelodyVR. We believe the sale of Napster simplifies Real and will help us deepen our focus on our growth initiatives and create long-term shareholder value."
Full Year 2020 Financial Highlights from Continuing Operations
Fourth Quarter 2020 Financial Highlights from Continuing Operations
Corporate Developments
Business Outlook
As has been the case over the past year, RealNetworks is not providing guidance for the first quarter ending March 31, 2021.
Conference Call and Webcast Information
RealNetworks will host a conference call today to review its results and discuss its performance at approximately 4:30 p.m. ET / 1:30 p.m. PT. Participants may join the conference call by dialing 1-877-451-6152 (United States) or 1-201-389-0879 (International). A telephonic replay of the call will also be available shortly after the completion of the call, until 11:59 pm ET on Wednesday, March 3, 2021, by dialing 1-844-512-2921 (United States) or 1-412-317-6671 (International) and entering the replay pin number: 13714971.
A live webcast will be available on RealNetworks' Investor Relations site under the Events & Presentations section at http://investor.realnetworks.com and will be archived online upon completion of the conference call.
About RealNetworks
Building on a rich history of digital media expertise and innovation, RealNetworks has created a new generation of products that employ best-in-class artificial intelligence and machine learning to enhance and secure our daily lives. Real's portfolio includes SAFR, the world's premier computer vision platform for live video, Kontxt, an industry leading NLP (Natural Language Processing) platform for text and multi-media analysis, and leveraging its digital media expertise, a mobile games business focused on the large free-to-play segment. For information about all of our products, visit www.realnetworks.com.
About Continuing and Discontinued Operations and Non-GAAP Financial Measures
*This release refers to "continuing" and "discontinued" operations due to the completion of the sale of Napster, RealNetworks' 84%-owned subsidiary, to MelodyVR Group PLC, which closed on December 30, 2020. Effective as of the August 25, 2020 announcement date, Napster has been treated as a discontinued operation for accounting and disclosure purposes; therefore, unless otherwise noted, results presented in this release relate to the continuing operations of RealNetworks, which exclude Napster.
To supplement RealNetworks' consolidated financial information presented in accordance with GAAP in this press release, the company also discloses certain non-GAAP financial measures, including adjusted EBITDA and contribution margin by reportable segment, which management believes provide investors with useful information.
In the financial tables of our earnings press release, RealNetworks has included reconciliations of GAAP net income (loss) from continuing operations to adjusted EBITDA and operating income (loss) by reportable segment to contribution margin by reportable segment.
The rationale for management's use of non-GAAP measures is included in the supplementary materials presented with the quarterly earnings materials. Please refer to Exhibit 99.2 ("Information Regarding Non-GAAP Financial Measures") to the company's report on Form 8-K, which is being submitted today to the SEC.
Forward-Looking Statements
This press release contains forward-looking statements that involve risks and uncertainties, including statements relating to our current expectations regarding our future growth, profitability, and market position, our financial condition and liquidity, our strategic focus and initiatives, product plans, agreements with partners, and expectations and contingencies relating to the sale of Napster. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements. These statements reflect our expectations as of today, and actual results may differ materially from the results predicted. Factors that could cause actual results for RealNetworks, on a consolidated basis, to differ from the results predicted include: our ability to realize operating efficiencies, growth and other benefits from the implementation of our growth initiatives and restructuring efforts; cash usage and conservation, and the pursuit of additional funding sources; successful monetization of our products and services; competitive risks, including the emergence or growth of competing technologies, products and services; potential outcomes and effects of claims and legal proceedings; risks associated with key customer or strategic relationships and business acquisitions; challenges caused by the COVID-19 pandemic; disruptions in the global financial markets, including changes in consumer spending and impacts to credit availability; and fluctuations in foreign currencies. More information about potential risk factors that could affect our business and financial results is included in RealNetworks' latest annual report on Form 10-K for year ended December 31, 2019 its quarterly reports on Form 10-Q and in other reports and documents filed by RealNetworks from time to time with the Securities and Exchange Commission. The preparation of our financial statements and forward-looking financial guidance requires us to make estimates and assumptions that affect the reported amount of assets and liabilities, and revenues and expenses during the reported period. Actual results may differ materially from these estimates under different assumptions or conditions. RealNetworks assumes no obligation to update any forward-looking statements or information, which are in effect as of their respective dates.
For More Information:
Investor Relations for RealNetworks
Kimberly Orlando, Addo Investor Relations
310-829-5400
IR@realnetworks.com
RNWK-F
RealNetworks, Inc. and Subsidiaries | |||||||||||||||
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| Quarter Ended December 31, | | Year ended December 31, | ||||||||||||
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| 2020 | | 2019 | | 2020 | | 2019 | ||||||||
| | | | | | | | ||||||||
| (in thousands, except per share data) | ||||||||||||||
| | | | | | | | ||||||||
Net revenue | $ | 17,601 | | | $ | 17,311 | | | $ | 68,062 | | | $ | 65,802 | |
Cost of revenue | 4,036 | | | 4,204 | | | 16,465 | | | 17,226 | | ||||
Gross profit | 13,565 | | | 13,107 | | | 51,597 | | | 48,576 | | ||||
| | | | | | | | ||||||||
Operating expenses: | | | | | | | | ||||||||
Research and development | 5,944 | | | 6,411 | | | 24,319 | | | 27,850 | | ||||
Sales and marketing | 5,073 | | | 5,515 | | | 21,042 | | | 23,016 | | ||||
General and administrative | 4,068 | | | 4,846 | | | 17,331 | | | 21,820 | | ||||
Fair value adjustments to contingent consideration liability | (8,400) | | | 300 | | | (8,600) | | | 1,000 | | ||||
Restructuring and other charges | 1,432 | | | 367 | | | 2,529 | | | 1,954 | | ||||
| | | | | | | | ||||||||
Total operating expenses | 8,117 | | | 17,439 | | | 56,621 | | | 75,640 | | ||||
| | | | | | | | ||||||||
Operating income (loss) | 5,448 | | | (4,332) | | | (5,024) | | | (27,064) | | ||||
| | | | | | | | ||||||||
Other income (expenses): | | | | | | | | ||||||||
Interest expense | (8) | | | — | | | (20) | | | — | | ||||
Interest income | 7 | | | 9 | | | 38 | | | 98 | | ||||
Gain on equity and other investments, net | 201 | | | — Werbung Mehr Nachrichten zur RealNetworks Aktie kostenlos abonnieren
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