RealNetworks Inc. (NASDAQ:RNWK) Q4 2018 Earnings Conference Call Transcript

Feb 06, 2019 • 04:30 pm ET


RealNetworks Inc. (NASDAQ:RNWK) Q4 2018 Earnings Conference Call Transcript


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Greetings, and welcome to RealNetworks, Inc. Fourth Quarter 2018 Earnings Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. (Operator Instructions) As a reminder, this conference is being recorded.

I would now like to turn the conference over to your host, Laura Bainbridge, with Investor Relations. Please go ahead.

Laura Bainbridge

Thank you, and welcome to the RealNetworks' fourth quarter and 2018 financial results conference call.

Before we begin, I remind you that some matters discussed today are forward-looking, including statements regarding RealNetworks' future revenue, gross profit, adjusted EBITDA and operating expenses on a consolidated basis, and trends affecting its businesses and prospects for future growth and profitability. Other forward-looking statements include the Company's plans to implement its strategy and invest in its products and initiatives, as well as the expected growth, profitability and other benefits from these activities.

In addition, today's call contains certain forward-looking statements that relate to our recent acquisition of an additional equity stake in Rhapsody International, Inc., which does business as Napster. Statements that express our belief and expectations and all statements other than statements of historical facts are forward-looking and involve a number of risks and uncertainties that could cause actual results to differ materially from these forward-looking statements, including risks and limitations associated with combining our business and consolidating our financial statements with Napster. We described these and other risks in our SEC filings, including any risk factors set forth in our most recent report on Form 10-K and in other reports. A copy of those filings can be obtained from the SEC or from the Investor Relations section of the corporate website.

Forward-looking statements made today reflect RealNetworks' expectations as of today, February 6, 2019. The Company undertakes no duty to update or revise any forward-looking statements made during this call, whether as a result of new information, future events or any other reason.

In addition, we will present certain financial measures on this call that will be considered non-GAAP under the SEC's Regulation G. For reconciliation of each non-GAAP financial measures to the most directly comparable GAAP financial measures, please refer to the information included in our press release and in our Form 8-K dated and submitted to the SEC today, both of which can be found on our corporate website at under the tab, Financial Information.

With me today are Rob Glaser, Chairman and CEO; and Cary Baker, CFO. Rob will discuss the Company's strategy and the progress the Company made in 2018, as well as preview what's to come. Cary will then provide a more detailed financial review of the fourth quarter and full-year 2018, as well as provide the outlook for the first quarter of 2019. After today's prepared remarks, Rob and Cary will be pleased to answer questions.

With that, I will hand the call over to Rob.

Robert Glaser

Thanks, Laura. Good afternoon, everyone, and thanks for joining us today. We have a lot to cover, including our most recent