“In its update, RealNetworks emphasized the ‘significant progress’ it has made in its efforts to promote SAFR, the company’s facial recognition platform for biometric security.”
RealNetworks appears to be struggling in the COVID-19 environment but is making progress its biometric business and in reducing net losses, judging by the company’s Q3 update for 2020.
Revenues came in at $16.6 million, compared to revenues of $17.1 million in Q2 of this year, and revenues of $17.7 million in Q3 of 2019. But the company’s net loss of $3.2 million represents a considerable improvement over its net loss of $5.2 million a year ago, and is only slightly changed from its net loss of $3.1 million in the previous quarter.
Adjusted EBITDA was a loss of $1.9 million, compared to an EBITDA loss of $3.2 million a year ago.
The figures represent corporate operations excluding RealNetworks’ Napster business, which was sold to MelodyVR Group PLC this past summer in a deal expected to close in the fourth quarter. For accounting purposes, RealNetworks is treating Napster as a discontinued operation effective August 25, 2020.
In its update, RealNetworks emphasized the ‘significant progress’ it has made in its efforts to promote SAFR, the company’s facial recognition platform for biometric security. Version 3.0 of the platform was launched during the quarter, and it was contracted for use in Tijuana International Airport’s Cross Border Xpress terminal bridge. RealNetworks also highlighted the appointment of Brad Donaldson as its VP of Computer Vision – a role aimed at further expanding the SAFR business.
Commenting on the results, RealNetworks CEO Rob Glaser said the company has continued to make “solid progress” in several key areas. “Our commitment to improving business performance led to our fifth consecutive quarter of year-over-year improvement in our adjusted EBITDA loss,” he said. “Our two largest growth opportunities remain our free-to-play Games, which grew 60% year-over-year, and the SAFR platform.”
That having been said, RealNetworks cited uncertainty about the global economy and the impact of COVID-19 in declining to issue revenue guidance for the fourth quarter of this year.
November 4, 2020 – by Alex Perala