RealNetworks (RNWK) Reports Q1 Loss of $0.27 on Revenues of $15.9M; Offer 2Q Revs. Views

May 12, 2021 4:06 PM EDT

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RealNetworks (NASDAQ: RNWK) reported Q1 EPS of ($0.27), versus ($0.12) reported last year. Revenue for the quarter came in at $15.9 million, versus $16.82 million reported last year.

  • Revenue of $15.9 million, driven by growth in AI-businesses offset by declines in some of the Company's foundation businesses
  • 160% year-over-year revenue growth for SAFRTM driven by successes in the U.S. Federal market and in global commercial applications
  • Net loss of $(10.6) million; adjusted EBITDA loss of $(3.0) million marking the seventh consecutive quarter of year-over-year improvement; adjusted EBITDA of $(2.4) million excluding Scener
  • Completed public offering of common stock for approximately $20.3 million in net proceeds on April 29, 2021

Management Commentary

"2021 got off to a strong start at Real," said Rob Glaser, Founder, Chairman, and Chief Executive Officer of RealNetworks. "We continued to progress in our strategic transformation to an AI-based company. Our first AI business, SAFR, grew approximately 160% year-over-year and our second AI business, KONTXT, grew 10% year-over-year. We told our AI story publicly for the first time to investors as part of our recent public offering, and as a result, raised approximately $20.3 million in net proceeds. These additional resources position us well to accelerate our AI efforts."

GUIDANCE:

RealNetworks sees Q2 2021 revenue of $14-15.5 million.

For the second quarter ending June 30, 2021, RealNetworks expects to achieve the following results from continuing operations:

  • Total revenue is expected to be in the range of $14.0 million to $15.5 million.
  • Adjusted EBITDA loss is expected to be in the range of $(6.0) million to $(4.5) million, including Scener expenses of up to $750,000, and in the range of $(5.25) million to $(3.75) million, excluding Scener (which is in the process of being spun out).

As announced as part of the Company's April 2021 public offering, RealNetworks' management currently expects 2021 will be an investment year that will position the Company for double-digit revenue growth in 2022 and 2023.

For earnings history and earnings-related data on RealNetworks (RNWK) click here.



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