Wed, 02/09/2022

REALNETWORKS ANNOUNCES FOURTH QUARTER AND FULL YEAR 2021 FINANCIAL RESULTS

SEATTLE, Feb. 9, 2022 /PRNewswire/ -- RealNetworks, Inc. (Nasdaq: RNWK), an emerging leader in AI-based software and solutions, today announced its financial results* for the fourth quarter and year ended December 31, 2021.

  • 2021 revenue of $58.2 million, net loss attributable to RealNetworks of $(21.2) million and Adjusted EBITDA loss of $(13.8) million
  • Continued revenue growth in 2021 for the Company's AI-based businesses with 44% growth in SAFR™ and 14% growth in KONTXT
  • Strong balance sheet with unrestricted cash and cash equivalents of $27.1 million and no debt as of December 31, 2021

Management Commentary

"In 2021, we continued our strategic transformation to an AI/Machine Learning based company and grew SAFR by 44 percent and KONTXT by 14 percent. At the same time, our overall financial performance did not meet our expectations. We have moved to align our AI products and investments with the biggest growth opportunities in front of us," said Rob Glaser, Founder, Chairman, and Chief Executive Officer of RealNetworks.

"Additionally, we brought in an outstanding new leader for our Games business who has hit the ground running. We believe that GameHouse will drive meaningful growth in 2023 and beyond."

Glaser concluded: "Putting it all together, we expect that the growth of our AI initiatives will accelerate in 2022, and that our Games business will do so in 2023. As a result, we believe our company will achieve double digit revenue growth in 2022, excluding Games."

Full Year 2021 Financial Results from Continuing Operations

  • 2021 Revenue was $58.2 million, compared to $68.1 million in the prior year.
  • Revenue from our key growth initiatives, SAFR and KONTXT, increased 44% and 14%, respectively, compared to the prior year. Collectively, SAFR and KONTXT represented 34% of total Mobile Services revenue in 2021.
  • 2021 net loss from continuing operations attributable to RealNetworks was $(21.2) million, or $(0.48) per diluted share, compared to a net loss of $(4.8) million, or $(0.13) per diluted share, in the prior year.
  • 2021 Adjusted EBITDA was a loss of $(13.8) million compared to Adjusted EBITDA loss of $(8.6) million in the prior year.
  • At December 31, 2021, the Company had $27.1 million in unrestricted cash and cash equivalents, compared to $23.9 million at December 31, 2020.

Fourth Quarter 2021 Financial Results from Continuing Operations

  • Revenue was $13.4 million, compared to $14.3 million in the prior quarter and $17.6 million in the prior year period.
  • Net loss from continuing operations attributable to RealNetworks was $(1.8) million, or $(0.04) per diluted share, compared to a net loss of $(7.7) million, or $(0.16) per diluted share, in the prior quarter and net income of $6.1 million, or $0.16 per diluted share, in the prior year period.
  • Adjusted EBITDA was a loss of $(3.7) million compared to Adjusted EBITDA loss of $(2.7) million in the prior quarter and Adjusted EBITDA loss of $(0.9) million in the prior year period.

Business Outlook

For the first quarter ending March 31, 2022, RealNetworks expects to achieve the following results from continuing operations:

  • Total revenue is expected to be in the range of $12.0 million to $14.0 million.
  • Adjusted EBITDA loss is expected to be in the range of $(5.5) million to $(4.0) million.

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, February 23, 2022, by dialing 1-844-512-2921 (United States) or 1-412-317-6671 (International) and entering the replay pin number: 13726692.

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, Scener's current and future activities, and certain remaining 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; issues with the use of AI; potential outcomes and effects of claims and legal proceedings; risks associated with key customer or strategic relationships and business acquisitions and dispositions; 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; volatility of our stock price; material asset impairment; continued declines in subscription revenue; difficulty recruiting and retaining key personnel; regulatory, tax, accounting, and cross-border risks; and risks related to our governance structure. 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, 2020, 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

Brian M. Prenoveau, CFA

MZ North America

561-489-5315

IR@realnetworks.com

RNWK-F

 

RealNetworks, Inc. and Subsidiaries

Condensed Consolidated Statements of Operations

(Unaudited)

 
 

Quarter Ended December

31,

 

Year ended December 31,

   
 

2021

 

2020

 

2021

 

2020

               
 

 (in thousands, except per share data)

               

 Net revenue

$         13,402

 

$         17,601

 

$       58,183

 

$       68,062

 Cost of revenue

3,386

 

4,036

 

13,756

 

16,465

           Gross profit

10,016

 

13,565

 

44,427

 

51,597

               

 Operating expenses:

             

       Research and development

5,314

 

5,944

 

23,132

 

24,319

       Sales and marketing

4,947

 

5,073

 

22,520

 

21,042

       General and administrative

4,057

 

4,068

 

17,559

 

17,331

Fair value adjustments to contingent consideration liability

 

(8,400)

 

(1,040)

 

(8,600)

       Restructuring and other charges

(1,777)

 

1,432

 

3,129

 

2,529

               

           Total operating expenses

12,541

 

8,117

 

65,300

 

56,621

               

 Operating income (loss)

(2,525)

 

5,448

 

(20,873)

 

(5,024)

               

 Other income (expenses):

             

       Interest expense

(22)

 

(8)

 

(168)

 

(20)

       Interest income

7

 

7

 

34

 

38

       Gain on forgiveness of Paycheck Protection Program loan

 

 

2,897

 

       Gain (loss) on equity and other investments, net

1,143

 

201

 

(4,927)

 

111

       Other income (expense), net

(42)

 

(227)

 

2,024

 

(164)

               

           Total other income (expenses), net

1,086

 

(27)

 

(140)

 

(35)

               

Net income (loss) from continuing operations before income taxes

(1,439)

 

5,421

 

(21,013)

 

(5,059)

 Income tax expense (benefit)

346

 

(551)

 

479

 

55

               

Net income (loss) from continuing operations

(1,785)

 

5,972

 

(21,492)

 

(5,114)

Net income (loss) from discontinued operations, net of tax

(733)

 

2,260

 

(733)

 

(206)

Net income (loss)

(2,518)

 

8,232

 

(22,225)

 

(5,320)

Net loss attributable to noncontrolling interests of continuing operations

 

(88)

 

(244)

 

(284)

Net income (loss) attributable to noncontrolling interests of discontinued

operations

 

180

 

 

(184)

Net income (loss) attributable to RealNetworks

$          (2,518)

 

$            8,140

 

$      (21,981)

 

$        (4,852)

               

Net income (loss) from continuing operations attributable to RealNetworks

$          (1,785)

 

$            6,060

 

$      (21,248)

 

$        (4,830)

Net income (loss) from discontinued operations attributable to RealNetworks

(733)

 

2,080

 

(733)

 

(22)

Net income (loss) attributable to RealNetworks

$          (2,518)

 

$            8,140

 

$      (21,981)

 

$        (4,852)

               

Net income (loss) per share attributable to RealNetworks- Basic:

             

       Continuing operations

$            (0.04)

 

$              0.16

 

$          (0.48)

 

$          (0.13)

       Discontinued operations

(0.01)

 

0.05

 

(0.02)

 

              Net income (loss) per share attributable to RealNetworks- Basic

$            (0.05)

 

$              0.21

 

$          (0.50)

 

$          (0.13)

               

Net income (loss) per share attributable to RealNetworks- Diluted:

             

       Continuing operations

$            (0.04)

 

$              0.16

 

$          (0.48)

 

$          (0.13)

       Discontinued operations

(0.01)

 

0.05

 

(0.02)

 

              Net income (loss) per share attributable to RealNetworks- Diluted

$            (0.05)

 

$              0.21

 

$          (0.50)

 

$          (0.13)

               

 Shares used to compute basic net loss per share

47,141

 

38,345

 

44,277

 

38,272

 Shares used to compute diluted net loss per share

47,141

 

38,489

 

44,277

 

38,272

 

RealNetworks, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

(Unaudited)

 
 

December 31,

2021

 

December 31,

2020

 

 (in thousands)

ASSETS

 Current assets:

     

 Cash and cash equivalents

$                      27,109

 

$                      23,940

 Trade accounts receivable, net

9,556

 

10,229

 Deferred costs, current portion

49

 

196

 Investments

1,755

 

9,965

 Prepaid expenses and other current assets

3,166

 

3,480

 Total current assets

41,635

 

47,810

       

 Equipment and software

29,464

 

30,726

 Leasehold improvements

2,750

 

2,776

 Total equipment, software, and leasehold improvements

32,214

 

33,502

 Less accumulated depreciation and amortization

30,744

 

31,631

 Net equipment, software, and leasehold improvements

1,470

 

1,871

       

 Operating lease assets

3,992

 

7,937

 Restricted cash equivalents

1,630

 

1,630

 Other assets

2,878

 

4,150

 Deferred costs, non-current portion

 

74

 Deferred tax assets, net

727

 

909

 Goodwill

16,976

 

17,375

       

 Total assets

$                      69,308

 

$                      81,756

       

 LIABILITIES AND SHAREHOLDERS' EQUITY

       

 Current liabilities:

     

 Accounts payable

$                         2,578

 

$                         2,750

 Accrued and other current liabilities

13,286

 

17,850

 Deferred revenue, current portion

2,614

 

2,122

 Total current liabilities

18,478

 

22,722

       

 Deferred revenue, non-current portion

183

 

45

 Deferred tax liabilities, net

1,132

 

1,129

 Long-term lease liabilities

2,300

 

6,837

 Long-term debt

 

2,895

 Other long-term liabilities

1,142

 

2,241

       

 Total liabilities

23,235

 

35,869

       

 Total shareholders' equity

46,073

 

46,149

       

Noncontrolling interests

 

(262)

       

 Total equity

46,073

 

45,887

       

 Total liabilities and equity

$                      69,308

 

$                      81,756

 

RealNetworks, Inc. and Subsidiaries

Condensed Consolidated Statements of Cash Flows

(Unaudited)

 
 

Year ended December 31,

 

2021

 

2020

 

 (in thousands)

 

Cash flows from operating activities:

     

Net loss from continuing operations

$                       (21,492)

 

$                         (5,114)

Adjustment to reconcile net loss from continuing operations to net cash used in operating

activities:

     

Depreciation and amortization

749

 

944

Stock-based compensation

4,224

 

1,420

(Gain) loss on equity and other investments, net

4,927

 

(111)

Loss on impairment of operating lease assets

2,461

 

1,055

Gain on release of operating lease liabilities

(3,596)

 

Deferred income taxes, net

201

 

(191)

Foreign currency (gain) loss

(23)

 

330

Fair value adjustments to contingent consideration liability

(1,040)

 

(8,600)

Gain on deconsolidation of subsidiary

(1,961)

 

Gain on forgiveness of Paycheck Protection Program loan

(2,897)

 

Net change in certain operating assets and liabilities

3,406

 

2,184

Net cash used in operating activities - continuing operations

(15,041)

 

(8,083)

Net cash used in operating activities - discontinued operations

 

(2,555)

Net cash used in operating activities

(15,041)

 

(10,638)

Cash flows from investing activities:

     

Purchases of equipment, software, and leasehold improvements

(466)

 

(408)

Deconsolidation of subsidiary, net

(836)

 

Net cash used in investing activities - continuing operations

(1,302)

 

(408)

Net cash provided by (used in)  investing activities - discontinued operations

2,048

 

(2,160)

Net cash provided by (used in) investing activities

746

 

(2,568)

Cash flows from financing activities:

     

Proceeds from issuance of common stock (stock options)

534

 

Proceeds from issuance of preferred stock

 

10,000

Proceeds from equity offering, net of costs

20,114

 

Tax payments from shares withheld upon vesting of restricted stock

(186)

 

(26)

Payment of contingent consideration liability

(2,500)

 

Proceeds from long-term debt

 

2,876

Repayments of notes payable and long-term debt

 

(3,922)

Other financing activities

 

2,106

Net cash provided by financing activities - continuing operations

17,962

 

11,034

Net cash provided by financing activities - discontinued operations

 

4,945

Net cash provided by financing activities

17,962

 

15,979

Effect of exchange rate changes on cash, cash equivalents and restricted cash

(498)

 

618

Net increase in cash, cash equivalents and restricted cash

3,169

 

3,391

Cash, cash equivalents, and restricted cash, beginning of period

25,570

 

22,179

Cash, cash equivalents, and restricted cash, end of period

$                        28,739

 

$                        25,570

 

RealNetworks, Inc. and Subsidiaries

Supplemental Financial Information (Unaudited)

 
   

2021

 

2020

   

YTD

 

Q4

 

 Q3

 

 Q2

 

Q1

 

YTD

 

 Q4

 

 Q3

 

 Q2

 

 Q1

   

 (in thousands)

Net Revenue by Segment

                                     

Consumer Media (A)

 

$ 10,301

 

$   2,168

 

$   2,763

 

$    2,061

 

$    3,309

 

$  12,581

 

$    3,384

 

$    2,543

 

$    3,159

 

$    3,495

Mobile Services (B)

 

23,788

 

5,680

 

5,772

 

6,356

 

5,980

 

26,889

 

7,338

 

6,400

 

6,461

 

6,690

Games (C)

 

24,094

 

5,554

 

5,797

 

6,144

 

6,599

 

28,592

 

6,879

 

7,611

 

7,465

 

6,637

     Total net revenue

 

$ 58,183

 

$ 13,402

 

$ 14,332

 

$  14,561

 

$  15,888

 

$  68,062

 

$  17,601

 

$  16,554

 

$  17,085

 

$  16,822

                                         

Net Revenue by Product

                                       

Consumer Media

                                       

- Software License (D)

 

$   5,076

 

$      854

 

$   1,506

 

$       841

 

$    1,875

 

$    5,957

 

$    1,593

 

$       642

 

$    1,702

 

$    2,020

- Subscription Services (E)

 

3,158

 

768

 

779

 

793

 

818

 

3,586

 

867

 

892

 

898

 

929

- Product Sales (F)

 

1,306

 

268

 

270

 

330

 

438

 

1,301

 

625

 

193

 

261

 

222

- Advertising & Other (G)

 

761

 

278

 

208

 

97

 

178

 

1,737

 

299

 

816

 

298

 

324

                                         

Mobile Services

                                       

- Software License (H)

 

6,397

 

1,616

 

1,459

 

1,931

 

1,391

 

5,110

 

2,376

 

931

 

972

 

831

- Subscription Services (I)

 

17,391

 

4,064

 

4,313

 

4,425

 

4,589

 

21,779

 

4,962

 

5,469

 

5,489

 

5,859

                                         

Games

                                       

- Subscription Services (J)

 

9,606

 

2,286

 

2,361

 

2,431

 

2,528

 

10,794

 

2,589

 

2,705

 

2,730

 

2,770

- Product Sales (K)

 

11,058

 

2,453

 

2,612

 

2,830

 

3,163

 

13,879

 

3,315

 

3,874

 

3,712

 

2,978

- Advertising & Other (L)

 

3,430

 

815

 

824

 

883

 

908

 

3,919

 

975

 

1,032

 

1,023

 

889

                                         
                                         

     Total net revenue

 

$ 58,183

 

$ 13,402

 

$ 14,332

 

$  14,561

 

$  15,888

 

$  68,062

 

$  17,601

 

$  16,554

 

$  17,085

 

$  16,822

                                         

Net Revenue by Geography

                                       

United States

 

$ 36,494

 

$   8,126

 

$   9,227

 

$    9,209

 

$    9,932

 

$  43,704

 

$  10,893

 

$  11,855

 

$  10,742

 

$  10,214

Rest of world

 

21,689

 

5,276

 

5,105

 

5,352

 

5,956

 

24,358

 

6,708

 

4,699

 

6,343

 

6,608

     Total net revenue

 

$ 58,183

 

$ 13,402

 

$ 14,332

 

$  14,561

 

$  15,888

 

$  68,062

 

$  17,601

 

$  16,554

 

$  17,085

 

$  16,822

                                         

Net Revenue by Segment

                                     

(A) The Consumer Media segment primarily includes revenue from the licensing of our portfolio of video codec technologies. Also included is RealPlayer and related products, such as the distribution of third-party software products, advertising on RealPlayer websites, sales of RealPlayer Plus software to consumers, and consumer subscriptions such as RealPlayer Plus and SuperPass.

(B) The Mobile Services segment primarily includes revenue from SaaS services and sales of professional services provided to mobile carriers.

(C) The Games segment primarily includes revenue from player purchases of in-game virtual goods within our free-to-play games, mobile and PC games, online games subscription services, and advertising on games sites and social network sites.

Net Revenue by Product

                                       

(D) Software licensing revenue within Consumer Media includes revenues from licenses of our video codec technologies.

(E) Subscriptions revenue within Consumer Media includes revenue from subscriptions such as our RealPlayer Plus and SuperPass offerings.

(F) Product sales within Consumer Media includes sales of RealPlayer Plus software to consumers.

(G) Advertising & other revenue within Consumer Media includes distribution of third-party software products and advertising on RealPlayer websites.

(H) Software license revenue within Mobile Services includes revenue from our facial recognition platform, SAFR, and our integrated RealTimes platform.

(I) Subscription services revenue within Mobile Services includes revenue from our messaging products, including Metcalf intercarrier messaging services and KONTXT, as well as ringback tones and related professional services provided to mobile carriers.

(J) Subscription services revenue within Games includes revenue from online games subscriptions.

(K) Product sales revenue within Games includes revenue from player purchases of in-game virtual goods, retail and wholesale games-related revenue, as well as sales of mobile games.

(L) Advertising & other revenue within Games includes advertising on games sites and social network sites.

 

RealNetworks, Inc. and Subsidiaries

Segment Results of Operations and Reconciliation to non-GAAP Contribution Margin

(Unaudited)

 
   

2021

 

2020

2021

 

2020

   

Q4

 

Q3

 

Q4

 

YTD

 

YTD

   

 (in thousands)

Consumer Media

                   
                     

Net revenue

 

$   2,168

 

$   2,763

 

$   3,384

 

$ 10,301

 

$ 12,581

Cost of revenue

 

423

 

418

 

550

 

1,816

 

2,273

Gross profit

 

1,745

 

2,345

 

2,834

 

8,485

 

10,308

                     

Gross margin

 

80%

 

85%

 

84%

 

82%

 

82%

                     

Operating expenses

 

1,399

 

1,495

 

2,135

 

7,427

 

8,889

Operating income, a GAAP measure

 

$      346

 

$      850

 

$      699

 

$   1,058

 

$   1,419

Depreciation and amortization

 

(15)

 

16

 

17

 

22

 

62

                     

Contribution margin, a non-GAAP measure

 

$      331

 

$      866

 

$      716

 

$   1,080

 

$   1,481

                     

Mobile Services

                   
                     

Net revenue

 

$   5,680

 

$   5,772

 

$   7,338

 

$ 23,788

 

$ 26,889

Cost of revenue

 

1,429

 

1,282

 

1,736

 

5,720

 

6,725

Gross profit

 

4,251

 

4,490

 

5,602

 

18,068

 

20,164

                     

Gross margin

 

75%

 

78%

 

76%

 

76%

 

75%

                     

Operating expenses

 

5,932

 

5,890

 

5,940

 

24,299

 

24,787

Operating loss, a GAAP measure

 

$  (1,681)

 

$  (1,400)

 

$     (338)

 

$  (6,231)

 

$  (4,623)

Depreciation and amortization

 

78

 

80

 

130

 

321

 

418

                     

Contribution margin, a non-GAAP measure

 

$  (1,603)

 

$  (1,320)

 

$     (208)

 

$  (5,910)

 

$  (4,205)

                     

Games

                   
                     

Net revenue

 

$   5,554

 

$   5,797

 

$   6,879

 

$ 24,094

 

$ 28,592

Cost of revenue

 

1,521

 

1,414

 

1,744

 

6,192

 

7,451

Gross profit

 

4,033

 

4,383

 

5,135

 

17,902

 

21,141

                     

Gross margin

 

73%

 

76%

 

75%

 

74%

 

74%

                     

Operating expenses

 

4,672

 

4,844

 

4,885

 

19,463

 

19,936

Operating income (loss), a GAAP measure

 

$     (639)

 

$     (461)

 

$      250

 

$  (1,561)

 

$   1,205

Depreciation and amortization

 

58

 

78

 

72

 

293

 

347

                     

Contribution margin, a non-GAAP measure

 

$     (581)

 

$     (383)

 

$      322

 

$  (1,268)

 

$   1,552

                     

Corporate

                   
                     

Cost of revenue

 

$        13

 

$          5

 

$          6

 

$        28

 

$        16

Gross profit

 

(13)

 

(5)

 

(6)

 

(28)

 

(16)

                     

Gross margin

 

N/A

 

N/A

 

N/A

 

N/A

 

N/A

                     

Operating expenses

 

538

 

5,443

 

(4,843)

 

14,111

 

3,009

Operating income (loss), a GAAP measure

 

$     (551)

 

$  (5,448)

 

$   4,837

 

$ (14,139)

 

$  (3,025)

Other expense, net

 

(43)

 

46

 

(227)

 

62

 

(164)

Foreign currency (gain) loss

 

40

 

(47)

 

305

 

(22)

 

330

Depreciation and amortization

 

29

 

29

 

28

 

114

 

117

Fair value adjustments to contingent consideration liability

 

 

 

(8,400)

 

(1,040)

 

(8,600)

Restructuring and other charges

 

(1,777)

 

1,017

 

1,432

 

3,129

 

2,529

Stock-based compensation

 

435

 

2,518

 

327

 

4,224

 

1,420

                     

Contribution margin, a non-GAAP measure

 

$  (1,867)

 

$  (1,885)

 

$  (1,698)

 

$  (7,672)

 

$  (7,393)

 

RealNetworks, Inc. and Subsidiaries

Reconciliation of Net income (loss) from continuing operations to adjusted EBITDA, a non-GAAP measure

(Unaudited)

 
   

2021

 

2020

2021

 

2020

   

Q4

 

Q3

 

Q4

 

 YTD

 

 YTD

   

(in thousands)

                     

Reconciliation of GAAP Net income (loss) from continuing operations to adjusted EBITDA:

           
                     

Net income (loss) from continuing operations

 

$     (1,785)

 

$     (7,668)

 

$       5,972

 

$   (21,492)

 

$     (5,114)

Income tax expense (benefit)

 

346

 

6

 

(551)

 

479

 

55

Interest expense

 

22

 

27

 

8

 

168

 

20

Interest income

 

(7)

 

(7)

 

(7)

 

(34)

 

(38)

(Gain) loss on equity and other investments, net

 

(1,143)

 

1,229

 

(201)

 

4,927

 

(111)

Foreign currency (gain) loss

 

40

 

(47)

 

305

 

(22)

 

330

Depreciation and amortization

 

149

 

203

 

247

 

749

 

944

Fair value adjustments to contingent consideration liability

 

 

 

(8,400)

 

(1,040)

 

(8,600)

Gain on forgiveness of Paycheck Protection Program loan

 

 

 

 

(2,897)

 

Gain on deconsolidation of subsidiary

 

 

 

 

(1,961)

 

Restructuring and other charges

 

(1,777)

 

1,017

 

1,432

 

3,129

 

2,529

Stock-based compensation

 

435

 

2,518

 

327

 

4,224

 

1,420

   Adjusted EBITDA, a non-GAAP measure

 

$     (3,720)

 

$     (2,722)

 

$        (868)

 

$   (13,770)

 

$     (8,565)