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REALNETWORKS INC

realnetworks.com

No Longer Reporting

The company has not filed an annual or quarterly report since its Q3 FY2022 10-Q, filed Nov 9, 2022. Its latest SEC filing is a SC 13G/A from Feb 14, 2023.

The sections below describe the company as of the FY2021 annual report.

What Did They Do?

Provides media software and casual games to consumers, and messaging and computer-vision services to mobile carriers and other businesses.

How Did They Make Money?

Consumers pay in advance for subscriptions and buy games or in-game items; businesses are billed for software licenses monthly, quarterly or annually at fixed fees or based on usage, and for hosted services monthly, generally based on prior-month usage. Advertising and third-party software distribution also earn fees per impression or download.

FY2021 revenue

Who Were Their Customers?

Consumers buy RealPlayer services through Real.com and other distribution partners, while games reach consumers through the company's sites and app stores. Mobile carriers and other business customers work with RealNetworks on messaging, media and computer-vision services, which carriers can offer to subscribers.

Did Revenues Turn Into Profits?

No. It lost $22M in FY2021.

Operating income, FY2021
−36% of revenue
▲ +318% (Loss) vs FY2020 (−$5M, −7%)
Net income, FY2021
−38% of revenue
▲ +353% (Loss) vs FY2020 (−$4.9M, −7%)
Free cash flow, FY2021
−27% of revenue
▲ +40% (Loss) vs FY2020 (−$11M, −16%)

How Were They Changing?

Since the FY2021 annual report
Latest quarter: Q3 FY2022, the three months to Sep 30, 2022
Revenue
▼ −18%
vs $14.3M in Q3 FY2021
Net income
▼ −13% (Loss)
vs −$7.7M in Q3 FY2021
  • Dec 22, 2022 Rob Glaser and affiliates completed the acquisition RealNetworks became a wholly owned subsidiary, and its Nasdaq trading was suspended.
  • Nov 16, 2022 BDO resigned as auditor The Audit Committee had not retained a successor as of the filing.

Shrank. Revenue fell 26% in 4 years, from $78.7M in FY2017 to $58.2M in FY2021, about 7% a year.

Napster exit The older report included a Napster stake and described its music subscription service; the latest report says RealNetworks fully disposed of its stake.

Free-to-play games The older report described mobile games offered through free trials before purchase; the latest report says the company shifted toward free-to-play games and away from premium mobile games.

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