REALNETWORKS ANNOUNCES FIRST QUARTER 2022 FINANCIAL RESULTS
SEATTLE, May 4, 2022 /PRNewswire/ — RealNetworks, Inc. (Nasdaq: RNWK), an emerging leader in AI-based software and solutions, today announced its financial results for the first quarter ended March 31, 2022.
Revenue was $13.3 million, net loss of $(5.2) million and Adjusted EBITDA loss of $(3.8) million
Launched SAFR SCAN, the company’s first integrated hardware-software product
Appointed Mike Cooley as President for KONTXT, Messaging, and Telecom
Management Commentary
“In March, we launched SAFR SCAN, a video door station for access control which is the company’s first integrated hardware-software product in our 27-year history. SAFR SCAN delivers excellent performance, security, and reliability at less than half the price of previous competitive products. We’re very encouraged by the early feedback we’re hearing from industry partners and experts and we’re excited to begin commercial shipments later this quarter,” said Rob Glaser, Founder, Chairman, and Chief Executive Officer of RealNetworks.
“A second major development I’m excited about is the appointment of Mike Cooley as President for KONTXT, Messaging, and Telecom. Mike has an outstanding track record of growing and building businesses in the carrier market and I believe he’s the right person to drive growth and take KONTXT to the next level.”
First Quarter 2022 Financial Results
Revenue was $13.3 million, compared to $13.4 million in the prior quarter and $15.9 million in the prior year period.
Net loss attributable to RealNetworks was $(5.2) million, or $(0.11) per diluted share, compared to a net loss of $(1.8) million, or $(0.04) per diluted share, in the prior quarter and a net loss of $(10.4) million, or $(0.27) per diluted share, in the prior year period.
Adjusted EBITDA was a loss of $(3.8) million compared to Adjusted EBITDA loss of $(3.7) million in the prior quarter and Adjusted EBITDA loss of $(3.0) million in the prior year period.
Strong balance sheet with unrestricted cash and cash equivalents of $21.8 million and no debt as of March 31, 2022.
Business Outlook
For the second quarter ending June 30, 2022, RealNetworks expects to achieve the following results:
Total revenue is expected to be in the range of $11.0 million to $12.5 million.
Adjusted EBITDA loss is expected to be in the range of $(6.0) million to $(4.5) 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 can access the conference call by dialing 1-888-221-3881 (United States) or 1-646-828-8193 (international). A telephonic replay of the call will also be available shortly after the completion of the call, until 11:59 p.m. ET on Wednesday, May 18, 2022, by dialing 1-844-512-2921 (United States) or 1-412-317-6671 (international) and entering the replay pin number: 7077659.
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 Non-GAAP Financial Measures
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, 2021, 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
[email protected]
RNWK-F
SOURCE – RealNetworks, Inc.
