RealNetworks revenues jump on Napster acquisition as SAFR facial biometrics rollout continues
RealNetworks has reported first quarter revenue of $39.5 million, as the SAFR parent company added Napster to its portfolio of products and services.
A one-time gain associated with the acquisition of Napster, which RealNetworks owns 84 percent of after the deal closed in January, resulted in a positive net income of $1.5 million in the quarter. Revenue from the same quarter a year earlier was $19.7 million, while revenue for Q1 2019 excluding from Napster was $15.2 million. Gross margin was 37 percent, down from 74 percent in Q1 2018, pulled down by Napster’s 16 percent margin.
SAFR for Security was also launched during the quarter to integrate the company’s biometric facial recognition technology with leading Video Management Systems.
“We continued to drive forward with SAFR, which we believe is our single largest growth opportunity,” said Rob Glaser, Chairman and CEO of RealNetworks. “Most notably, we launched SAFR for Security, which delivers tremendous value to security professionals by integrating our best-of-breed facial recognition solution with market leading Video Management Systems such as Genetec, Milestone Systems, and Digifort. We also significantly strengthened our senior management team by bringing in Jay Burrell as RealNetworks’ Chief Revenue Officer for Computer Vision.”
RealNetwork’s revenue for Q2 2019 is expected to be in the range of $43 million to $46 million, for an adjusted EBITDA loss of $4.5 million to $7.5 million.