RealNetworks, a provider of network-delivered digital media products and services, said it suffered its second consecutive quarterly loss but exceeded expectations in terms of revenue and earnings per share (EPS) in the 4th quarter of 2014 and now has over 10 million users.
RealNetworks continues to lose money as the Seattle-based company posted a $20.8 million loss for the fourth quarter after a $22.2 million loss in the previous quarter. It posted revenue of $35.5 million in Q4, up from $34.2 million in Q3 but down 30 percent year-on-year, GeekWire said.
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However, the company beat Wall Street expectations for both EPS and revenue. Analysts expected an EPS of ($0.72) and revenue of $33.7 million.
For the fourth quarter of 2014, revenue was $35.5 million, compared to $34.2 million in the previous quarter and $50.6 million in the fourth quarter of 2013. For the full year of 2014, revenue was $156.2 million, compared to $206.2 million in 2013, eMarketsDaily said.
RealNetworks also noted that it has more than 10 million users worldwide on its RealPlayer Cloud video sharing service, up from 8 million last quarter and from 500, 000 a year earlier.
Founder and CEO said his company made progress last year “in our strategic transition to new mobile-centric, cloud-based products and services.”
“We are continuing to build on our early momentum with RealPlayer Cloud by investing to broaden and deepen the product, ” Glaser said in a statement. “We are also working to bring in additional marketing and distribution partners to drive even more consumer adoption.”
Glaser was named the company’s permanent CEO last July after holding the title on an interim basis for two years.
Glaser, who founded the company in 1994 after a 10-year stint at Microsoft Corp, stepped aside as CEO in 2010 only to return in 2012 after two subsequent CEOs quickly departed the Seattle-based company, Reuters said.
RealNetworks, an early pioneer of online media, has struggled to find traction and profits in recent years. The company expects revenue between $30 million and $33 million, and losses between $18 and $21 million, for the first quarter of 2015.
RealNetworks shares plunged -2.35% to close at $7.06. Its return of equity was recorded as -19.70% and its return on investment was calculated as -28.10%. Its 50-Day moving average was 2.05% and 200-Day moving average was -2.72%.
