RealNetworks Announces Second Quarter 2019 Financial Results

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This Post Was Syndicated Under License Via QuoteMedia

SEATTLE, Aug. 1, 2019 /PRNewswire/ — RealNetworks, Inc. (Nasdaq: RNWK), a leader in digital media software and services, today announced its financial results for the second quarter ended June 30, 2019.

  • Second quarter revenue of $44.2 million
  • Strong early success with SAFRTM
  • Successful  worldwide roll-out of 2nd free-to-play game, Delicious World
  • Remain committed to proactive expense management

Management Commentary

“In the second quarter, we achieved solid results overall with two particularly strong areas: our SAFR Facial Recognition platform and our free-to-play casual mobile games,” said Rob Glaser, Chairman and CEO of RealNetworks. “SAFR bookings were up significantly quarter-over-quarter. SAFR also continued to shine technically, retaining its position in the NIST ratings as the fastest and smallest of the most accurate Facial Recognition Systems.”

Mr. Glaser added, “We also demonstrated solid traction in free-to-play casual mobile games. Our second free-to-play title, Delicious World, launched at the end of the second quarter and is off to a terrific start.”

Second Quarter 2019 Financial Highlights

  • Revenue was $44.2 million (inclusive of $28.6 million from Napster) compared to $39.5 million (inclusive of $24.3 million from Napster) in the prior quarter and $15.7 million in the prior year period. The second quarter of 2019 reflects the first full quarter consolidation of Napster’s financial statements.
  • Gross profit margin was 38%, up from 37% in the prior quarter and down from 71% in the prior year period. Napster’s gross profit margin for the second quarter of 2019 was 19%, while RealNetworks’ gross profit margin without Napster was 73%.
  • Operating expenses increased $0.9 million, or 3%, from the prior quarter and increased $8.4 million, or 47%, from the prior year period. Napster’s operating expenses were $6.6 million for the second quarter of 2019. Included in the second quarter of 2019 total operating expenses were $0.4 million of transaction costs related to the acquisition of Napster and $0.3 million of expenses recorded for the change in fair value of the contingent consideration liability related to the acquisition of Napster.
  • Net loss attributable to RealNetworks was $(9.2) million, or $(0.24) per share, compared to net income of $1.5 million, or $0.04 per share, in the prior quarter and a net loss of $(6.9) million, or $(0.18) per share, in the prior year period. Net income attributable to RealNetworks in the first quarter of 2019 included a gain of $12.3 million related to the acquisition of Napster.
  • Adjusted EBITDA was a loss of $(6.3) million compared to a loss of $(7.9) million in the prior quarter and a loss of $(5.8) million in the prior year period. A reconciliation of GAAP net income (loss) including noncontrolling interests to adjusted EBITDA, a non-GAAP measure, is provided in the financial tables that accompany this release.
  • At June 30, 2019, the Company had $26.3 million in unrestricted cash and cash equivalents compared to $36.9 million at March 31, 2019.

Business Outlook

For the third quarter of 2019, RealNetworks expects to achieve the following results including noncontrolling interests:

  • Total revenue is expected to be in the range of $43.0 million to $46.0 million
  • Adjusted EBITDA loss is expected to be in the range of $(2.5) million to $(5.5) million.

Conference Call and Webcast Information

The Company will host a conference call today to review results and discuss its performance shortly after 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 Thursday, August 22, 2019, by dialing 1-844-512-2921 (United States) or 1-412-317-6671 (International) and entering the replay pin number: 13692194.

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 legacy 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. SAFR (www.safr.com) is the world’s premier facial recognition platform for live video. Leading in real-world performance and accuracy as evidenced in testing by NIST, SAFR enables new applications for security, convenience, and analytics. Kontxt (www.kontxt.com) is the foremost platform for categorizing A2P messages to help mobile carriers build customer loyalty and drive new revenue through text message classification and antispam. For information about our other 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) including noncontrolling interests 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 future revenue and adjusted EBITDA, our future growth, profitability, and market position, our strategic focus and initiatives, agreements with partners, and the growth and future prospects relating to our Napster segment. 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; 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; disruptions in the global financial markets, including changes in consumer spending and impacts to credit availability; fluctuations in foreign currencies; and unique risk factors that relate to our Napster segment, such as risks stemming from its streaming music service and related music royalties. More information about potential risk factors that could affect our business and financial results is included in RealNetworks’ annual report on Form 10-K for the most recent year ended December 31, 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
[email protected]
RNWK-F

 

RealNetworks, Inc. and Subsidiaries

Condensed Consolidated Statements of Operations

(Unaudited)

 
 

Quarter Ended
June 30,

 

Six Months Ended
June 30,

   
 

2019

 

2018

 

2019

 

2018

 

 (in thousands, except per share data)

               

 Net revenue

$

44,248

   

$

15,724

   

$

83,720

   

$

35,374

 

 Cost of revenue

27,282

   

4,625

   

52,152

   

9,761

 

           Gross profit

16,966

   

11,099

   

31,568

   

25,613

 
               

 Operating expenses:

             

       Research and development

8,876

   

7,652

   

17,709

   

15,346

 

       Sales and marketing

8,360

   

4,883

   

16,502

   

10,880

 

       General and administrative

8,392

   

5,339

   

16,756

   

10,940

 

       Restructuring and other charges

729

   

187

   

896

   

688

 

       Lease exit and related benefit

   

(129)

   

   

(454)

 
               

           Total operating expenses

26,357

   

17,932

   

51,863

   

37,400

 
               

 Operating loss

(9,391)

   

(6,833)

   

(20,295)

   

(11,787)

 
               

 Other income (expenses):

             

       Interest expense

(43)

   

   

(209)

   

 

       Interest income

40

   

111

   

117

   

198

 

       Gain (loss) on equity investment, net

   

   

12,338

   

 

       Other income (expenses), net

183

   

(42)

   

310

   

(83)

 
               

           Total other income (expenses), net

180

   

69

   

12,556

   

115

 
               

 Income (loss) before income taxes

(9,211)

   

(6,764)

   

(7,739)

   

(11,672)

 

 Income tax expense

244

   

166

   

502

   

436

 
               

Net income (loss) including noncontrolling interests

(9,455)

   

(6,930)

   

(8,241)

   

(12,108)

 

Net income (loss) attributable to noncontrolling interests

(253)

   

   

(572)

   

 

Net income (loss) attributable to RealNetworks

$

(9,202)

   

$

(6,930)

   

$

(7,669)

   

$

(12,108)

 
               

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

$

(0.24)

   

$

(0.18)

   

$

(0.20)

   

$

(0.32)

 

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

$

(0.24)

   

$

(0.18)

   

$

(0.20)

   

$

(0.32)

 
               

 Shares used to compute basic net income (loss) per share

37,948

   

37,577

   

37,885

   

37,514

 

 Shares used to compute diluted net income (loss) per share

37,948

   

37,577

   

37,885

   

37,514

 

 

RealNetworks, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

(Unaudited)

 
 

June 30,
2019

 

December 31,
2018

 

 (in thousands)

ASSETS

 Current assets:

     

 Cash and cash equivalents

$

26,339

   

$

35,561

 

 Short-term investments

   

24

 

 Trade accounts receivable, net

31,957

   

11,751

 

 Deferred costs, current portion

465

   

331

 

 Prepaid expenses and other current assets

20,382

   

5,911

 

 Total current assets

79,143

   

53,578

 
       

 Equipment and software

32,079

   

37,458

 

 Leasehold improvements

3,319

   

3,292

 

 Total equipment, software, and leasehold improvements

35,398

   

40,750

 

 Less accumulated depreciation and amortization

32,268

   

37,996

 

 Net equipment, software, and leasehold improvements

3,130

   

2,754

 
       

 Operating lease assets

13,672

   

 

 Restricted cash equivalents

2,124

   

1,630

 

 Other assets

2,739

   

3,997

 

 Deferred costs, non-current portion

797

   

528

 

 Deferred tax assets, net

854

   

851

 

 Other intangible assets, net

21,616

   

26

 

 Goodwill

65,395

   

16,955

 
       

 Total assets

$

189,470

   

$

80,319

 
       

 LIABILITIES AND SHAREHOLDERS’ EQUITY

       

 Current liabilities:

     

 Accounts payable

$

5,224

   

$

3,910

 

 Accrued royalties, fulfillment and other current liabilities

97,951

   

11,312

 

 Commitment to Napster

   

2,750

 

 Deferred revenue, current portion

6,054

   

2,125

 

 Notes payable

7,878

   

 

 Total current liabilities

117,107

   

20,097

 
       

 Deferred revenue, non-current portion

179

   

268

 

 Deferred rent

   

986

 

 Deferred tax liabilities, net

1,262

   

1,168

 

 Long-term lease liabilities

10,384

   

 

 Other long-term liabilities

11,070

   

960

 
       

 Total liabilities

140,002

   

23,479

 
       

 Total shareholders’ equity

49,382

   

56,840

 
       

Noncontrolling interests

86

   

 
       

 Total equity

49,468

   

56,840

 
       

 Total liabilities and equity

$

189,470

   

$

80,319

 

 

RealNetworks, Inc. and Subsidiaries

Condensed Consolidated Statements of Cash Flows

(Unaudited)

 
 

Six Months Ended
June 30,

 

2019

 

2018

 

 (in thousands)

 

 Cash flows from operating activities:

     

 Net income (loss) including noncontrolling interests

$

(8,241)

   

$

(12,108)

 

 Adjustments to reconcile net income (loss) including noncontrolling interests to net cash used in operating activities:

     

Depreciation and amortization

2,959

   

1,231

 

Stock-based compensation

1,917

   

1,614

 

Deferred income taxes, net

   

(12)

 

(Gain) loss on equity investment, net

(12,338)

   

 

Foreign currency (gain) loss

(315)

   

 

Fair value adjustments to contingent consideration liability

300

   

 

Mark to market adjustment of warrants

   

50

 

Net change in certain operating assets and liabilities

(381)

   

(3,505)

 

  Net cash used in operating activities

(16,099)

   

(12,730)

 

 Cash flows from investing activities:

     

Purchases of equipment, software, and leasehold improvements

(873)

   

(580)

 

Proceeds from sales and maturities of short-term investments

24

   

5,726

 

Acquisition, net of cash acquired

12,260

   

(4,192)

 

 Net cash provided by investing activities

11,411

   

954

 

 Cash flows from financing activities:

     

Proceeds from issuance of common stock (stock options and stock purchase plan)

144

   

114

 

Tax payments from shares withheld upon vesting of restricted stock

(287)

   

(243)

 

Proceeds from notes payable

19,760

   

 

Repayments of notes payable

(24,018)

   

 

Other financing activities

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450

   

 

 Net cash provided by (used in) financing activities

(3,951)

   

(129)

 

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

(89)

   

(731)

 

 Net increase (decrease) in cash, cash equivalents and restricted cash

(8,728)

   

(12,636)

 

 Cash, cash equivalents and restricted cash, beginning of period

37,191

   

53,596

 

 Cash, cash equivalents and restricted cash, end of period

$

28,463

   

$

40,960

 

 

RealNetworks, Inc. and Subsidiaries

Supplemental Financial Information

(Unaudited)

 
 

2019

 

2018

 

 Q2

 

Q1

 

 Q4

 

 Q3

 

 Q2

 

 Q1

 

 (in thousands)

Net Revenue by Segment

                     

Consumer Media (A)

$

2,620

   

$

2,486

   

$

4,068

   

$

4,733

   

$

3,884

   

$

5,483

 

Mobile Services (B)

6,997

   

6,939

   

6,899

   

7,348

   

6,719

   

8,704

 

Games (C)

6,048

   

5,710

   

5,590

   

5,498

   

5,121

   

5,463

 

Napster (D)

28,583

   

24,337

   

   

   

   

 

     Total net revenue

$

44,248

   

$

39,472

   

$

16,557

   

$

17,579

   

$

15,724

   

$

19,650

 
                       

Net Revenue by Product

                     

Consumer Media

                     

– Software License (E)

$

944

   

$

735

   

$

2,049

   

$

2,746

   

$

1,808

   

$

3,337

 

– Subscription Services (F)

1,040

   

1,088

   

1,153

   

1,232

   

1,225

   

1,285

 

– Product Sales (G)

206

   

219

   

257

   

281

   

299

   

340

 

– Advertising & Other (H)

430

   

444

   

609

   

474

   

552

   

521

 
                       

Mobile Services

                     

– Software License (I)

957

   

599

   

514

   

520

   

469

   

1,335

 

– Subscription Services (J)

6,040

   

6,340

   

6,385

   

6,828

   

6,250

   

7,369

 
                       

Games

                     

– Subscription Services (K)

3,073

   

2,985

   

3,014

   

2,745

   

2,689

   

2,693

 

– Product Sales (L)

2,177

   

1,988

   

2,013

   

2,279

   

1,953

   

2,402

 

– Advertising & Other (M)

798

   

737

   

563

   

474

   

479

   

368

 
                       

Napster

                     

– Subscription Services (N)

28,583

   

24,337

   

   

   

   

 
                       

     Total net revenue

$

44,248

   

$

39,472

   

$

16,557

   

$

17,579

   

$

15,724

   

$

19,650

 
                       

Net Revenue by Geography

                     

United States

$

21,322

   

$

18,970

   

$

7,697

   

$

9,026

   

$

7,646

   

$

11,434

 

Rest of world

22,926

   

20,502

   

8,860

   

8,553

   

8,078

   

8,216

 

     Total net revenue

$

44,248

   

$

39,472

   

$

16,557

   

$

17,579

   

$

15,724

   

$

19,650

 
                       

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 sales of mobile and PC games, online games subscription services, player purchases of in-game virtual goods, and advertising on games sites and social network sites.

(D) The Napster segment primarily includes revenue from subscription music offerings from on-demand streaming services and conditional downloads. Napster revenues are included in our consolidated results from the January 18, 2019 acquisition date forward.

Net Revenue by Product

                     

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

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

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

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

(I) Software license revenue within Mobile Services includes revenue from our integrated RealTimes platform.

(J) Subscription services revenue within Mobile Services includes revenue from ringback tones and our messaging platform services, as well as from related professional services provided to mobile carriers.

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

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

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

(N) Subscription services revenue within Napster includes music tracks by way of on-demand streaming and conditional downloads offered directly to end consumers and distribution partners.

 

RealNetworks, Inc. and Subsidiaries

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

(Unaudited)

 
 

2019

 

2018

 

2019

 

2018

 

Q2

 

Q1

 

Q2

 

YTD

 

YTD

 

 (in thousands)

Consumer Media

                 
                   

Net revenue

$

2,620

   

$

2,486

   

$

3,884

   

$

5,106

   

$

9,367

 

Cost of revenue

803

   

833

   

1,028

   

1,636

   

2,021

 

Gross profit

1,817

   

1,653

   

2,856

   

3,470

   

7,346

 
                   

Gross margin

69

%

 

66

%

 

74

%

 

68

%

 

78

%

                   

Operating expenses

2,877

   

3,119

   

3,439

   

5,996

   

7,357

 

Operating income (loss), a GAAP measure

$

(1,060)

   

$

(1,466)

   

$

(583)

   

$

(2,526)

   

$

(11)

 

Depreciation and amortization

56

   

54

   

51

   

110

   

97

 
                   

Contribution margin, a non-GAAP measure

$

(1,004)

   

$

(1,412)

   

$

(532)

   

$

(2,416)

   

$

86

 
                   

Mobile Services

                 
                   

Net revenue

$

6,997

   

$

6,939

   

$

6,719

   

$

13,936

   

$

15,423

 

Cost of revenue

1,865

   

2,048

   

2,134

   

3,913

   

4,450

 

Gross profit

5,132

   

4,891

   

4,585

   

10,023

   

10,973

 
                   

Gross margin

73

%

 

70

%

 

68

%

 

72

%

 

71

%

                   

Operating expenses

7,438

   

7,561

   

6,969

   

14,999

   

14,335

 

Operating income (loss), a GAAP measure

$

(2,306)

   

$

(2,670)

   

$

(2,384)

   

$

(4,976)

   

$

(3,362)

 

Acquisitions related intangible asset amortization

   

   

91

   

   

183

 

Depreciation and amortization

106

   

231

   

155

   

337

   

335

 
                   

Contribution margin, a non-GAAP measure

$

(2,200)

   

$

(2,439)

   

$

(2,138)

   

$

(4,639)

   

$

(2,844)

 
                   

Games

                 
                   

Net revenue

$

6,048

   

$

5,710

   

$

5,121

   

$

11,758

   

$

10,584

 

Cost of revenue

1,655

   

1,670

   

1,456

   

3,325

   

3,273

 

Gross profit

4,393

   

4,040

   

3,665

   

8,433

   

7,311

 
                   

Gross margin

73

%

 

71

%

 

72

%

 

72

%

 

69

%

                   

Operating expenses

5,288

   

5,037

   

5,095

   

10,325

   

10,012

 

Operating income (loss), a GAAP measure

$

(895)

   

$

(997)

   

$

(1,430)

   

$

(1,892)

   

$

(2,701)

 

Acquisitions related intangible asset amortization

   

23

   

20

   

23

   

20

 

Depreciation and amortization

84

   

83

   

146

   

167

   

311

 
                   

Contribution margin, a non-GAAP measure

$

(811)

   

$

(891)

   

$

(1,264)

   

$

(1,702)

   

$

(2,370)

 
                   

Napster

                 
                   

Net revenue

$

28,583

   

$

24,337

   

$

   

$

52,920

   

$

 

Cost of revenue

23,026

   

20,396

   

   

43,422

   

 

Gross profit

5,557

   

3,941

       

9,498

   

 
                   

Gross margin

19

%

 

16

%

 

%

 

18

%

 

%

                   

Operating expenses

6,638

   

5,532

   

   

12,170

   

 

Operating income (loss), a GAAP measure

$

(1,081)

   

$

(1,591)

   

$

   

$

(2,672)

   

$

 

Acquisitions related intangible asset amortization

1,129

   

943

   

   

2,072

   

 

Depreciation and amortization

69

   

115

   

   

184

   

 
                   

Contribution margin, a non-GAAP measure

$

117

   

$

(533)

   

$

   

$

(416)

   

$

 
                   

Corporate

                 
                   

Cost of revenue

$

(67)

   

$

(77)

   

$

7

   

$

(144)

   

$

17

 

Gross profit

67

   

77

   

(7)

   

144

   

(17)

 
                   

Gross margin

N/A

 

N/A

 

N/A

 

N/A

 

N/A

                   

Operating expenses

4,116

   

4,257

   

2,429

   

8,373

   

5,696

 

Operating income (loss), a GAAP measure

$

(4,049)

   

$

(4,180)

   

$

(2,436)

   

$

(8,229)

   

$

(5,713)

 

Other income (expense), net

183

   

127

   

(42)

   

310

   

(83)

 

Foreign currency (gain) loss

(164)

   

(151)

   

(2)

   

(315)

   

20

 

Depreciation and amortization

33

   

33

   

148

   

66

   

285

 

Fair value adjustments to contingent consideration liability

300

   

   

   

300

   

 

Restructuring and other charges

729

   

167

   

187

   

896

   

688

 

Stock-based compensation

533

   

1,384

   

457

   

1,917

   

1,614

 

Lease exit and related benefit

   

   

(129)

   

   

(454)

 
                   

Contribution margin, a non-GAAP measure (1)

$

(2,435)

   

$

(2,620)

   

$

(1,817)

   

$

(5,055)

   

$

(3,643)

 
 

(1)2018 Corporate contribution margin was revised to exclude the impact of realized and unrealized foreign currency (gain) loss incurred in each respective period. Foreign currency (gain) loss is reported in Other income (expense), net, in our consolidated statement of operations.

 

RealNetworks, Inc. and Subsidiaries

Reconciliation of Net income (loss) including noncontrolling interests to adjusted EBITDA, a non-GAAP measure

(Unaudited)

 
 

2019

 

2018

 

2019

 

2018

 

Q2

 

 Q1

 

 Q2

 

 YTD

 

 YTD

 

(in thousands)

                   

Reconciliation of GAAP Net income (loss) including noncontrolling interests to adjusted EBITDA:

           
                   

Net income (loss) including noncontrolling interests

$

(9,455)

   

$

1,214

   

$

(6,930)

   

$

(8,241)

   

$

(12,108)

 

Income tax expense (benefit)

244

   

258

   

166

   

502

   

436

 

Interest expense

43

   

166

   

   

209

   

 

Interest income

(40)

   

(77)

   

(111)

   

(117)

   

(198)

 

(Gain) loss on equity investment, net

   

(12,338)

   

   

(12,338)

   

 

Foreign currency (gain) loss

(164)

   

(151)

   

(2)

   

(315)

   

20

 

Acquisitions related intangible asset amortization

1,129

   

966

   

111

   

2,095

   

203

 

Depreciation and amortization

348

   

516

   

500

   

864

   

1,028

 

Fair value adjustments to contingent consideration liability

300

   

   

   

300

   

 

Restructuring and other charges

729

   

167

   

187

   

896

   

688

 

Stock-based compensation

533

   

1,384

   

457

   

1,917

   

1,614

 

Lease exit and related benefit

   

   

(129)

   

   

(454)

 

   Adjusted EBITDA, a non-GAAP measure (1)

$

(6,333)

   

$

(7,895)

   

$

(5,751)

   

$

(14,228)

   

$

(8,771)

 
 

(1)2018 adjusted EBITDA was revised to exclude the impact of realized and unrealized foreign currency (gain) loss incurred in each respective period. Foreign currency (gain) loss is reported in Other income (expense), net, in our consolidated statement of operations.

 

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SOURCE RealNetworks, Inc.