Realnetworks (RNWK) 10-Q 5 May 22 2022 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2022	Apr. 29, 2022
Document Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Amendment Flag	false
Document Period End Date	Mar. 31, 2022
Document Transition Report	false
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q1
Trading Symbol	RNWK
Entity Registrant Name	RealNetworks, Inc.
Entity Central Index Key	0001046327
Entity File Number	1-37745
Current Fiscal Year End Date	--12-31
Entity Incorporation, State or Country Code	WA
Entity Tax Identification Number	91-1628146
City Area Code	(206)
Local Phone Number	674-2700
Entity Address, Address Line One	1501 First Avenue South, Suite 600
Entity Address, City or Town	Seattle
Entity Address, State or Province	WA
Entity Address, Postal Zip Code	98134
Entity Filer Category	Non-accelerated Filer
Entity Interactive Data Current	Yes
Entity Current Reporting Status	Yes
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		47,312,808
Security Exchange Name	NASDAQ
Common Stock [Member]
Document Information [Line Items]
Title of 12(b) Security	Common Stock, Par Value $0.001 per share
Convertible Preferred Stock [Member]
Document Information [Line Items]
Title of 12(b) Security	Preferred Share Purchase Rights

Recent Accounting Pronouncement

Recent Accounting Pronouncements	3 Months Ended
	Mar. 31, 2022
Accounting Changes and Error Corrections [Abstract]
Recent Accounting Pronouncements	Note 2. Recent Accounting Pronouncements Recently issued accounting pronouncements not yet adopted In August 2020, the Financial Accounting Standards Board ("FASB") issued new guidance that simplifies the accounting for convertible debt instruments and convertible preferred stock by reducing the number of accounting models and the number of embedded conversion features that could be recognized separately from the primary contract. The guidance enhances transparency and improves disclosures for convertible instruments and earnings per share guidance. It is effective for annual reporting periods beginning after December 15, 2023, with early adoption permitted. This update permits the use of either the modified retrospective or fully retrospective method of transition. We are in the process of evaluating the effect that this new guidance will have on our consolidated financial statements and related disclosures. In January 2017, the FASB issued new guidance simplifying the test for goodwill impairment. The new guidance eliminates Step 2 from the goodwill impairment test, instead requiring an entity to recognize a goodwill impairment charge for the amount by which the reporting unit's carrying amount exceeds the reporting unit's fair value. This guidance is effective for interim and annual goodwill impairment tests in fiscal years beginning after December 15, 2022, with early adoption permitted. We do not currently expect the adoption to have a material impact on our consolidated financial statements and related disclosures. In June 2016, the FASB issued new guidance amending existing guidance for the accounting of credit losses on financial instruments. Under the new guidance, the valuation allowance for credit losses is expected to be incurred over the financial asset’s contractual term. We reviewed the new credit loss standard and determined that it applies to our accounts receivable, which are typically of short duration and for which we have not historically experienced significant credit losses. This guidance is effective for us in fiscal years beginning after December 15, 2022 with any cumulative effect of adoption recorded as an adjustment to retained earnings. We are in the process of evaluating the effect that this new guidance will have on our consolidated financial statements and related disclosures.

UNAUDITED CONDENSED CONSOLIDATE

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Current assets:
Cash and Cash Equivalents, at Carrying Value	$ 21,775	$ 27,109
Allowance for Doubtful Accounts Receivable, Current	288	299
Accounts Receivable, after Allowance for Credit Loss, Current	8,182	9,556
Deferred Costs, Current	28	49
Marketable Securities	0	1,755
Prepaid Expense and Other Assets, Current	5,456	3,166
Total current assets	35,441	41,635
Equipment, software, and leasehold improvements, at cost:
Equipment And Software Gross	28,246	29,464
Leasehold Improvements, Gross	2,085	2,750
Total equipment, software, and leasehold improvements	30,331	32,214
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment	28,958	30,744
Net equipment, software, and leasehold improvements	1,373	1,470
Operating Lease, Right-of-Use Asset	4,135	3,992
Restricted Cash and Investments, Noncurrent	1,630	1,630
Other Assets, Noncurrent	2,716	2,878
Deferred Income Tax Assets, Net	709	727
Goodwill	16,875	16,976
Total assets	62,879	69,308
Current liabilities:
Accounts Payable, Current	2,272	2,578
Accrued Expenses And Other Current Liabilities	12,487	13,286
Deferred Revenue, Current	3,437	2,614
Total current liabilities	18,196	18,478
Deferred Revenue, Noncurrent	34	183
Deferred Income Tax Liabilities, Net	1,115	1,132
Operating Lease, Liability, Noncurrent	2,393	2,300
Other Liabilities, Noncurrent	22	1,142
Total liabilities	$ 21,760	$ 23,235
Preferred Stock, Number of Shares, Par Value and Other Disclosures [Abstract]
Preferred stock, par value (USD per share)	$ 0.001	$ 0.001
Additional Paid in Capital	$ 678,884	$ 678,381
Accumulated Other Comprehensive Income (Loss), Net of Tax	(61,752)	(61,520)
Retained Earnings (Accumulated Deficit)	(576,068)	(570,843)
Stockholders' Equity Attributable to Parent, Total	41,119	46,073
Total liabilities and equity	62,879	69,308
Preferred stock, Series A
Preferred Stock, Number of Shares, Par Value and Other Disclosures [Abstract]
Preferred stock	0	0
Series B Preferred Stock
Preferred Stock, Number of Shares, Par Value and Other Disclosures [Abstract]
Preferred stock	8	8
Preferred stock, Undesignated series
Preferred Stock, Number of Shares, Par Value and Other Disclosures [Abstract]
Preferred stock	0	0
Common Stock [Member]
Preferred Stock, Number of Shares, Par Value and Other Disclosures [Abstract]
Common Stock, Value, Issued	$ 47	$ 47

UNAUDITED CONDENSED CONSOLIDA_2

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Allowance for Doubtful Accounts Receivable, Current	$ 288	$ 299
Preferred stock, par value (USD per share)	$ 0.001	$ 0.001
Preferred stock, Series A
Preferred stock, authorized	200,000	200,000
Series B Preferred Stock
Preferred stock, authorized	8,100,000	8,100,000
Preferred stock, shares issued	8,065,000	8,065,000
Preferred stock, shares outstanding	8,065,000	8,065,000
Preferred stock, Undesignated series
Preferred stock, authorized	51,700,000	51,700,000
Common Stock [Member]
Common stock, par value (USD per share)	$ 0.001	$ 0.001
Common stock, authorized	250,000,000	250,000,000
Common stock, issued	47,324,000	47,115,000
Common stock, outstanding	47,324,000	47,115,000

UNAUDITED CONDENSED CONSOLIDA_3

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Income Statement [Abstract]
Revenue	$ 13,276	$ 15,888
Cost of revenue	2,736	3,679
Gross profit	10,540	12,209
Operating expenses:
Research and development	5,798	6,238
Sales and marketing	4,582	5,137
General and administrative	4,827	4,898
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability	0	(1,040)
Restructuring and other charges	290	3,171
Total operating expenses	15,497	18,404
Operating loss	(4,957)	(6,195)
Other income (expenses):
Interest Expense	22	95
Interest income	7	13
Gain (Loss) on Sale of Investments	(189)	(4,272)
Other income, net	19	104
Nonoperating Income (Expense), Total	(185)	(4,250)
Loss before income taxes	(5,142)	(10,445)
Income tax expense	83	109
Net loss from continuing operations	(5,225)	(10,554)
Net loss	(5,225)	(10,554)
Net loss attributable to noncontrolling interests	0	(106)
Net loss attributable to RealNetworks	(5,225)	(10,448)
Net Income (Loss) Attributable to Parent	$ (5,225)	$ (10,448)
Continuing operations, basic (USD per share)	$ (0.11)	$ (0.27)
Diluted net income (loss) per share (USD per share)	$ (0.11)	$ (0.27)
Shares used to compute basic net income (loss) per share	47,276,000	38,502,000
Shares used to compute diluted net income (loss) per share	47,276,000	38,502,000

UNAUDITED CONDENSED CONSOLIDA_4

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Statement) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	$ (5,225)	$ (10,554)
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax	(232)	(536)
Other Comprehensive Income (Loss), Net of Tax, Total	(232)	(536)
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest, Total	(5,457)	(11,090)
Comprehensive Income (Loss), Net of Tax, Attributable to Noncontrolling Interest	0	(106)
Comprehensive Income (Loss), Net of Tax, Attributable to Parent, Total	(5,457)	(10,984)
Accumulated Foreign Currency Adjustment Attributable to Parent [Member]
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax	$ (232)	$ (536)

UNAUDITED CONDENSED CONSOLIDA_5

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Cash flows from operating activities:
Income (Loss) from Continuing Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest	$ (5,225)	$ (10,554)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation, Depletion and Amortization, Nonproduction	190	204
Share-based Payment Arrangement, Noncash Expense	695	836
Gain (Loss) on Investments	189	4,272
Foreign currency (gain) loss	(3)	(103)
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability	0	(1,040)
Operating Lease, Impairment Loss	0	2,461
Increase (Decrease) in Accounts Receivable	(1,345)	2,319
Increase (Decrease) in Prepaid Expense and Other Assets	716	(496)
Increase (Decrease) in Accounts Payable	(297)	727
Increase (Decrease) in Accrued Liabilities and Other Operating Liabilities	(1,151)	(1,956)
Net cash used in operating activities	(4,973)	(6,976)
Cash flows from investing activities:
Payments to Acquire Property, Plant, and Equipment	101	56
Net cash used in investing activities	(101)	(56)
Cash flows from financing activities:
Proceeds from Stock Options Exercised	0	468
Payment, Tax Withholding, Share-based Payment Arrangement	19	110
Net cash provided by (used in) financing activities	(19)	358
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(241)	(251)
Net decrease in cash, cash equivalents and restricted cash	(5,334)	(6,925)
Cash, cash equivalents and restricted cash, beginning of period	28,739	25,570
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Total	$ 23,405	$ 18,645

UNAUDITED CONDENSED CONSOLIDA_6

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock [Member]	Additional Paid-in Capital [Member]	AOCI Attributable to Parent [Member]	Retained Earnings [Member]	Parent [Member]	Noncontrolling Interest [Member]	Accumulated Foreign Currency Adjustment Attributable to Parent [Member]	Preferred Class BPreferred Stock
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest		$ 38	$ 655,606	$ (60,641)	$ (548,862)	$ 46,149	$ (262)		$ 8
Stockholders' Equity Attributable to Parent	$ 45,887
Shares, Outstanding at Dec. 31, 2020		38,424							8,065
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period		229
Stock Issued During Period, Value, Stock Options Exercised	358		358			358
APIC, Share-based Payment Arrangement, Increase for Cost Recognition	836		836			836
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax	(536)					(536)		$ (536)
Net Income (Loss) Attributable to Parent	(10,448)				(10,448)	(10,448)
Net loss attributable to noncontrolling interests	(106)						(106)
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	(10,554)
Shares, Outstanding at Mar. 31, 2021		38,653							8,065
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest		$ 38	656,800	(61,177)	(559,310)	36,359	(368)		$ 8
Stockholders' Equity Attributable to Parent	35,991
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest		$ 47	678,381	(61,520)	(570,843)	46,073	0		$ 8
Stockholders' Equity Attributable to Parent	46,073
Shares, Outstanding at Dec. 31, 2021		47,257							8,065
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period		67
Stock Issued During Period, Value, Stock Options Exercised	0		0			0
APIC, Share-based Payment Arrangement, Increase for Cost Recognition	503		503			503
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax	(232)					(232)		$ (232)
Net Income (Loss) Attributable to Parent	(5,225)				(5,225)	(5,225)
Net loss attributable to noncontrolling interests	0						0
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	(5,225)
Shares, Outstanding at Mar. 31, 2022		47,324							8,065
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest		$ 47	$ 678,884	$ (61,752)	$ (576,068)	$ 41,119	$ 0		$ 8
Stockholders' Equity Attributable to Parent	$ 41,119

Description of Business and Sum

Description of Business and Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2022
Accounting Policies [Abstract]
Description of Business and Summary of Significant Accounting Policies	Note 1. Description of Business and Summary of Significant Accounting Policies Description of Business. RealNetworks provides digital media software and services to consumers, mobile carriers, device manufacturers, system integrators, and other businesses. Consumers use our digital media products and services to store, organize, play, manage and enjoy their digital media content, either directly from us or through our distribution partners. We have recently developed a new generation of artificial intelligence (AI)-based products and solutions. The main two products and key investment initiatives in our AI portfolio are SAFR, our AI-based computer vision platform, and KONTXT, our natural language processing-based message classification and analysis platform. Inherent in our business are various risks and uncertainties, including a limited history of certain of our product and service offerings. RealNetworks' success will depend on the acceptance of our technology, products and services and the ability to generate related revenue and cash flow. In this Quarterly Report on Form 10-Q (10-Q or Report), RealNetworks, Inc., together with its subsidiaries, is referred to as "RealNetworks," the "Company," "we," "us," or "our." "RealPlayer," "RMHD," "RealMedia," "GameHouse," "KONTXT," "SAFR" and other trademarks of ours appearing in this report are our property. Basis of Presentation. The unaudited condensed consolidated financial statements include the accounts of the Company and its subsidiaries in which it has a more than 50% voting interest. Noncontrolling interests represent third-party ownership in the equity of Scener Inc. ("Scener"), which was deconsolidated on June 30, 2021, and are reflected separately in the Company's financial statements. See Note 12. Related Party Transactions for additional details. Intercompany balances and transactions have been eliminated in consolidation. The unaudited condensed consolidated financial statements reflect all adjustments, consisting only of normal, recurring adjustments that, in the opinion of management, are necessary for a fair presentation of the results of operations for the periods presented. Operating results for the quarter ended March 31, 2022 are not necessarily indicative of the results that may be expected for any subsequent period or for the year ending December 31, 2022. Certain information and disclosures normally included in financial statements prepared in conformity with accounting principles generally accepted in the United States of America (GAAP) have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). Liquidity and Capital Resources. The Company continues to incur operating losses, including net operating losses of $5.0 million and $6.2 million for the quarters ended March 31, 2022, and 2021, respectively. The Company had an accumulated deficit of $576.1 million and $570.8 million as of March 31, 2022 and December 31, 2021, respectively. The Company believes that its cash and cash equivalents of $21.8 million as of March 31, 2022, is adequate to fund the Company's operations for at least one year from the date these financial statements were issued. Risks and Uncertainties. In March 2020, the World Health Organization declared the outbreak of the coronavirus that causes COVID-19 to be a global pandemic. As the virus spread throughout the U.S. and the world, authorities implemented numerous measures to contain the virus, including travel bans and restrictions, quarantines, shelter-in-place orders, business limitations, and shutdowns. In addition to the pandemic's widespread impact on public health and global society, reactions to the pandemic as well as measures taken to contain the virus have caused significant turmoil to the global economy and financial markets. Moreover, similar to other companies, we have taken steps to support the health and well-being of our employees, customers, partners and communities, which include working remotely and learning to operate our businesses in a fundamentally different way. The COVID-19 pandemic, including the emergence of variants such as the delta and omicron variants, and the resultant economic instability and financial market turmoil has added complexity, uncertainty and risk to nearly all aspects of our business. It is difficult to predict the near-term and long-term impacts that the pandemic will have on our results from operations, financial condition, liquidity and cash flows. In the preparation of our financial statements, certain estimates and assumptions regarding these impacts have been made, which could change in future periods and which could differ from actual outcomes. Use of Estimates. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Liquidity and Capital Resources Text Block	Liquidity and Capital Resources. The Company continues to incur operating losses, including net operating losses of $5.0 million and $6.2 million for the quarters ended March 31, 2022, and 2021, respectively. The Company had an accumulated deficit of $576.1 million and $570.8 million as of March 31, 2022 and December 31, 2021, respectively. The Company believes that its cash and cash equivalents of $21.8 million as of March 31, 2022, is adequate to fund the Company's operations for at least one year from the date these financial statements were issued.

Revenue Recognition Revenue Rec

Revenue Recognition Revenue Recognition	3 Months Ended
	Mar. 31, 2022
Revenue from Contract with Customer [Abstract]
Revenue Recognition	Note 3. Revenue Recognition We generate all of our revenue through contracts with customers. Revenue is either recognized over time as the service is provided, or at a point in time when the product is transferred to the customer, depending on the contract type. Our performance obligations typically have an original duration of one year or less. Disaggregation of Revenue The following table presents our disaggregated revenue by source and segment (in thousands): Quarter Ended March 31, 2022 Consumer Media Mobile Services Games Business Line Software License $ 987 $ 1,531 $ — Subscription Services 742 4,109 2,219 Product Sales 163 — 2,377 Advertising and Other 219 — 929 Total $ 2,111 $ 5,640 $ 5,525 Quarter Ended March 31, 2021 Consumer Media Mobile Services Games Business Line Software License $ 1,875 $ 1,391 $ — Subscription Services 818 4,589 2,528 Product Sales 438 — 3,163 Advertising and Other 178 — 908 Total $ 3,309 $ 5,980 $ 6,599 The following table presents our disaggregated revenue by sales channel (in thousands): Quarter Ended March 31, 2022 Consumer Media Mobile Services Games Sales Channel Business to Business $ 1,206 $ 5,571 $ 1,103 Direct to Consumer 905 69 4,422 Total $ 2,111 $ 5,640 $ 5,525 Quarter Ended March 31, 2021 Consumer Media Mobile Services Games Sales Channel Business to Business $ 2,053 $ 5,885 $ 1,061 Direct to Consumer 1,256 95 5,538 Total $ 3,309 $ 5,980 $ 6,599 Contract Balances The timing of revenue recognition may differ from the timing of invoicing to our customers. We record accounts receivable when the right to consideration becomes unconditional, except for the passage of time. For certain contracts, payment schedules may exceed one year; for those contracts we recognize a long-term receivable. As of March 31, 2022 and December 31, 2021, our balance of long-term accounts receivable was $0.3 million and $0.2 million, respectively, and is included in other long-term assets on our condensed consolidated balance sheets. The increase in this balance from December 31, 2021 to March 31, 2022 is primarily due to the timing of expected cash receipts. During the quarter ended March 31, 2022, we recorded no impairments to our contract assets. We record deferred revenue when cash payments are received in advance of our completion of the underlying performance obligation. As of March 31, 2022 and December 31, 2021, we had a deferred revenue balance of $3.5 million and $2.8 million, respectively, primarily due to deferred revenue associated with monthly subscriptions. Judgments and Estimates Our contracts with customers can include obligations to provide multiple services to a customer. Determining whether products and services are considered distinct performance obligations that should be accounted for separately versus together can require significant judgment. For example, certain contracts include the sale of software licenses or subscriptions as well as services to be delivered over time. Judgment is also required to determine the standalone selling price ("SSP") for each distinct performance obligation in these arrangements. We allocate revenue to each performance obligation based on the relative SSP. We determine SSP for performance obligations based on overall pricing objectives, which take into consideration observable prices and market conditions. For certain of our contracts, we recognize revenues using the sales- and usage-based exception as defined in the licensing guidance of Topic 606. For these contracts, we typically receive reporting of actual usage a quarter in arrears, and as such, we are required to estimate the current quarter's usage. To make these estimates, we utilize historical reporting information, as well as industry trends and interim reporting to quantify total quarterly usage. As actual usage information is received, we record a true-up in the following quarter to reflect any variance from our estimate. In the three months ended March 31, 2022 and 2021, we did not record any material true-ups to our consolidated financial statements. Practical Expedients

Stock-Based Compensation

Stock-Based Compensation	3 Months Ended
	Mar. 31, 2022
Share-based Payment Arrangement [Abstract]
Stock-Based Compensation	Note 4. Stock-Based Compensation Total stock-based compensation expense recognized in our unaudited condensed consolidated statements of operations and comprehensive loss includes amounts related to stock options and restricted stock and was as follows (in thousands): Quarter Ended March 31, 2022 2021 Total stock-based compensation expense $ 695 $ 836 The fair value of RealNetworks options granted determined using the Black-Scholes model used the following weighted-average assumptions: Quarter Ended March 31, 2022 2021 Expected dividend yield 0 % 0 % Risk-free interest rate 1.73 % 0.48 % Expected life (years) 4.0 3.9 Volatility 85 % 71 % The total stock-based compensation amounts for 2022 and 2021 disclosed above are recorded in their respective line items within operating expenses in the unaudited condensed consolidated statements of operations and comprehensive loss. Included in the expense for the three months ended March 31, 2021 was stock compensation recorded for 2020 incentive bonuses paid in fully vested restricted stock units, which were authorized and granted during the first quarter of 2021. As of March 31, 2022, there was $1.6 million of total unrecognized compensation cost, net of estimated forfeitures, related to stock awards. The unrecognized compensation cost is expected to be recognized over a weighted-average period of approximately three

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Mar. 31, 2022
Fair Value Disclosures [Abstract]
Fair Value Disclosures [Text Block]	Note 5. Fair Value Measurements Items Measured at Fair Value on a Recurring Basis The following tables present information about our financial assets that have been measured at fair value on a recurring basis as of March 31, 2022 and December 31, 2021, and indicates the fair value hierarchy of the valuation inputs utilized to determine fair value (in thousands) : Fair Value Measurements as of Amortized Cost as of March 31, 2022 March 31, 2022 Level 1 Level 2 Level 3 Total Assets: Cash and cash equivalents $ 21,775 $ — $ — $ 21,775 $ 21,775 Restricted cash equivalents 1,630 — — 1,630 1,630 Total assets $ 23,405 $ — $ — $ 23,405 $ 23,405 Fair Value Measurements as of Amortized Cost as of December 31, 2021 December 31, 2021 Level 1 Level 2 Level 3 Total Assets: Cash and cash equivalents $ 27,109 $ — $ — $ 27,109 $ 27,109 Investments — — 1,755 1,755 N/A Restricted cash equivalents 1,630 — — 1,630 1,630 Total assets $ 28,739 $ — $ 1,755 $ 30,494 N/A Restricted cash equivalents as of March 31, 2022 and December 31, 2021 primarily relate to maintaining a minimum balance of unrestricted cash at the bank. See Note 7. Debt for additional details. Investments as of December 31, 2021 were comprised of Napster Group ordinary shares received as a portion of the consideration from the Napster disposition, which closed on December 30, 2020. The fair value of these equity securities was calculated using the closing price of the shares as of December 31, 2021. In the first quarter of 2022 these shares were acquired by a third party. The fair value at December 31, 2021 approximates the consideration to be received and is now recorded as a receivable within Prepaid expenses and other current assets on our condensed consolidated balance sheet as of March 31, 2022. Items Measured at Fair Value on a Non-recurring Basis Certain of our assets and liabilities are measured at estimated fair value on a non-recurring basis, using Level 3 inputs. These instruments are subject to fair value adjustments only in certain circumstances (for example, when there is evidence of impairment). Other than those discussed in Note 8. Restructuring and Other Charges, during the three months ended March 31, 2022 and 2021, we did not record any impairments on those assets required to be measured at fair value on a non-recurring basis.

Accrued and Other Current Liabi

Accrued and Other Current Liabilities	3 Months Ended
	Mar. 31, 2022
Payables and Accruals [Abstract]
Accrued and Other Current Liabilities	Note 6. Accrued and other current liabilities Accrued and other current liabilities (in thousands): March 31, 2022 December 31, 2021 Royalties and other fulfillment costs $ 735 $ 1,189 Employee compensation, commissions and benefits 5,451 5,761 Sales, VAT and other taxes payable 899 1,056 Operating lease liabilities 1,994 2,113 Other 3,408 3,167 Total accrued and other current liabilities $ 12,487 $ 13,286

Debt Disclosure Text

Debt Disclosure Text	3 Months Ended
	Mar. 31, 2022
Debt Disclosure [Abstract]
Debt	Note 7. Debt In February 2021, we entered into an amendment to our existing Loan and Security Agreement (Loan Agreement) with a third-party financial institution. Under the terms of the amended Loan Agreement, the bank extended a revolving line of credit (Revolver) whereby the borrowing base is comprised of accounts receivable and direct to consumer deposits. Borrowings may

Restructuring Charges

Restructuring Charges	3 Months Ended
	Mar. 31, 2022
Restructuring and Related Activities [Abstract]
Restructuring Charges	Note 8. Restructuring and Other Charges Restructuring and other charges in 2022 and 2021 consist of costs associated with the ongoing reorganization of our business operations and expense re-alignment efforts, which primarily relate to lease impairment and severance costs due to workforce reductions. Restructuring charges are as follows (in thousands): Employee Separation Costs Asset Related and Other Costs Total Costs incurred and charged to expense for the three months ended March 31, 2022 $ 217 $ 73 $ 290 Costs incurred and charged to expense for the three months ended March 31, 2021 $ 581 $ 2,590 $ 3,171 During the quarter ended March 31, 2021, we recorded $2.5 million of lease impairment charges for an office space previously vacated. Changes to the accrued restructuring liability (which is included in Accrued and other current liabilities) for 2022 are as follows (in thousands): Employee Separation Costs Asset Related and Other Costs Total Accrued liability at December 31, 2021 $ 316 $ 1,475 $ 1,791 Costs incurred and charged to expense for the three months ended March 31, 2022, excluding noncash charges 217 — 217 Cash payments (147) (436) (583) Accrued liability at March 31, 2022 $ 386 $ 1,039 $ 1,425

Earnings (Loss) Per Share

Earnings (Loss) Per Share	3 Months Ended
	Mar. 31, 2022
Earnings Per Share [Abstract]
Earnings (Loss) Per Share	Note 9. Loss Per Share Basic net income (loss) per share (EPS) is computed by dividing net income (loss) attributable to RealNetworks by the weighted average number of common shares outstanding during the period. Diluted EPS is computed by dividing net income (loss) attributable to RealNetworks by the weighted average number of common and dilutive potential common shares outstanding during the period. Basic and diluted EPS (in thousands, except per share amounts): Quarter Ended March 31, 2022 2021 Net loss attributable to RealNetworks $ (5,225) $ (10,448) Weighted average common shares outstanding used to compute basic EPS 47,276 38,502 Dilutive effect of stock based awards and Series B Preferred Stock — — Weighted average common shares outstanding used to compute diluted EPS 47,276 38,502 Net loss per share attributable to RealNetworks- Basic $ (0.11) $ (0.27) Net loss per share attributable to RealNetworks- Diluted $ (0.11) $ (0.27) During the quarters ended March 31, 2022 and 2021, 8.3 million and 4.5 million shares of common stock, respectively, of potentially issuable shares from common stock awards were excluded from the calculation of diluted EPS because of their antidilutive effect. During the quarters ended March 31, 2022 and 2021, the 8.1 million shares of Series B Preferred Stock outstanding were excluded from the calculation of diluted EPS because of their antidilutive effect.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2022
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Note 10. Commitments and Contingencies We have been in the past and could become in the future subject to legal proceedings, governmental investigations, and claims in the ordinary course of business, including employment claims, contract-related claims, and claims of alleged infringement of third-party patents, trademarks, and other intellectual property rights. Such claims, even if not meritorious, could force us to expend significant financial and managerial resources. In addition, given the broad distribution of some of our consumer products, any individual claim related to those products could give rise to liabilities that may be material to us. In the event of a determination adverse to us, we may incur substantial monetary liability, and/or be required to change our business practices. Either of these could have a material adverse effect on our consolidated financial statements. On April 6, 2020, RealNetworks Asia Pacific Co., Ltd. received notice of a civil lawsuit filed by Korean Music Copyright Association (KOMCA) in Seoul Central District Court seeking damages of $2.6 million. Also named as a defendant in the lawsuit is Kakao M Corp (formerly known as LOEN Entertainment Corp.), one of the largest media publishing companies in Korea, which operates the Melon music platform. The claim is for a late payment penalty under a music licensing contract, pursuant to which, from 2004 to 2017, RealNetworks licensed music for its services to LOEN for its Melon platform. The current lawsuit relates solely to the late payment of music licensing fees under the contract; the underlying music licensing fees were paid by Kakao M to KOMCA in a separate settlement prior to KOMCA’s filing of this lawsuit. While we believe we have meritorious defenses to this lawsuit and are vigorously defending against it, litigation is inherently uncertain and we cannot currently predict the ultimate outcome of this matter. We have recorded a liability related to this matter as of March 31, 2022, at the low end of the range of outcomes, for an immaterial amount. Because of the uncertainty of this matter, it is reasonably possible that the estimated amount of the liability recorded will change in the near term.

Related Party Transactions

Related Party Transactions	3 Months Ended
	Mar. 31, 2022
Related Party Transactions [Abstract]
Related Party Transactions	Note 12. Related Party Transactions

Description of Business and S_2

Description of Business and Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2022
Accounting Policies [Abstract]
Description of Business	Description of Business. RealNetworks provides digital media software and services to consumers, mobile carriers, device manufacturers, system integrators, and other businesses. Consumers use our digital media products and services to store, organize, play, manage and enjoy their digital media content, either directly from us or through our distribution partners. We have recently developed a new generation of artificial intelligence (AI)-based products and solutions. The main two products and key investment initiatives in our AI portfolio are SAFR, our AI-based computer vision platform, and KONTXT, our natural language processing-based message classification and analysis platform. Inherent in our business are various risks and uncertainties, including a limited history of certain of our product and service offerings. RealNetworks' success will depend on the acceptance of our technology, products and services and the ability to generate related revenue and cash flow.
Basis of Presentation	Basis of Presentation. The unaudited condensed consolidated financial statements include the accounts of the Company and its subsidiaries in which it has a more than 50% voting interest. Noncontrolling interests represent third-party ownership in the equity of Scener Inc. ("Scener"), which was deconsolidated on June 30, 2021, and are reflected separately in the Company's financial statements. See Note 12. Related Party Transactions for additional details. Intercompany balances and transactions have been eliminated in consolidation. The unaudited condensed consolidated financial statements reflect all adjustments, consisting only of normal, recurring adjustments that, in the opinion of management, are necessary for a fair presentation of the results of operations for the periods presented. Operating results for the quarter ended March 31, 2022 are not necessarily indicative of the results that may be expected for any subsequent period or for the year ending December 31, 2022. Certain information and disclosures normally included in financial statements prepared in conformity with accounting principles generally accepted in the United States of America (GAAP) have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission (SEC).
Liquidity and Capital Resources Text Block	Liquidity and Capital Resources. The Company continues to incur operating losses, including net operating losses of $5.0 million and $6.2 million for the quarters ended March 31, 2022, and 2021, respectively. The Company had an accumulated deficit of $576.1 million and $570.8 million as of March 31, 2022 and December 31, 2021, respectively. The Company believes that its cash and cash equivalents of $21.8 million as of March 31, 2022, is adequate to fund the Company's operations for at least one year from the date these financial statements were issued.
Risk and Uncertainties Text block	Risks and Uncertainties. In March 2020, the World Health Organization declared the outbreak of the coronavirus that causes COVID-19 to be a global pandemic. As the virus spread throughout the U.S. and the world, authorities implemented numerous measures to contain the virus, including travel bans and restrictions, quarantines, shelter-in-place orders, business limitations, and shutdowns. In addition to the pandemic's widespread impact on public health and global society, reactions to the pandemic as well as measures taken to contain the virus have caused significant turmoil to the global economy and financial markets. Moreover, similar to other companies, we have taken steps to support the health and well-being of our employees, customers, partners and communities, which include working remotely and learning to operate our businesses in a fundamentally different way. The COVID-19 pandemic, including the emergence of variants such as the delta and omicron variants, and the resultant economic instability and financial market turmoil has added complexity, uncertainty and risk to nearly all aspects of our business. It is difficult to predict the near-term and long-term impacts that the pandemic will have on our results from operations, financial condition, liquidity and cash flows. In the preparation of our financial statements, certain estimates and assumptions regarding these impacts have been made, which could change in future periods and which could differ from actual outcomes.
Use of Estimates	Use of Estimates.  The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Segment Reporting (Policies)

Segment Reporting (Policies)	3 Months Ended
	Mar. 31, 2022
Segment Reporting [Abstract]
Segments	Note 11. Segment Information We manage our business and report revenue and operating income (loss) in three segments: (1) Consumer Media, which includes licensing of our codec technology and our PC-based RealPlayer products, including RealPlayer Plus and related products; (2) Mobile Services, which includes our SaaS services, our integrated RealTimes® platform which is sold to mobile carriers and our computer vision platform, SAFR (Secure Accurate Facial Recognition); and (3) Games, which includes all our games-related businesses, including sales of in-game virtual goods, mobile games and games licenses, games subscription services, and in-game advertising and advertising on game sites. RealNetworks allocates to its Consumer Media, Mobile Services and Games reportable segments certain corporate expenses, which are directly attributable to supporting these businesses, including but not limited to a portion of finance, legal, human resources and headquarters facilities. Remaining expenses, which are not directly attributable to supporting these businesses, are reported as corporate items. These corporate items may also include changes in the fair value of the contingent consideration liability, restructuring charges, and stock compensation charges. RealNetworks reports the three reportable segments based on factors such as how we manage our operations and how the Chief Operating Decision Maker (CODM) reviews results. The CODM reviews financial information presented on both a consolidated basis and on a business segment basis. The accounting policies used to derive segment results are the same as those described in Note 1. Description of Business and Summary of Significant Accounting Policies, in the 2021 10-K. Segment results for the quarters ended March 31, 2022 and 2021 (in thousands): Consumer Media Quarter Ended March 31, 2022 2021 Revenue $ 2,111 $ 3,309 Cost of revenue 388 478 Gross profit 1,723 2,831 Operating expenses 1,472 2,201 Operating income $ 251 $ 630 Mobile Services Quarter Ended March 31, 2022 2021 Revenue $ 5,640 $ 5,980 Cost of revenue 1,045 1,492 Gross profit 4,595 4,488 Operating expenses 6,666 6,145 Operating loss $ (2,071) $ (1,657) Games Quarter Ended March 31, 2022 2021 Revenue $ 5,525 $ 6,599 Cost of revenue 1,295 1,705 Gross profit 4,230 4,894 Operating expenses 3,999 5,098 Operating income (loss) $ 231 $ (204) Corporate Quarter Ended March 31, 2022 2021 Cost of revenue $ 8 $ 4 Operating expenses 3,360 4,960 Operating loss $ (3,368) $ (4,964) Our customers consist primarily of consumers and corporations located in the U.S., Europe, and various foreign countries (Rest of the World). Revenue by geographic region (in thousands): Quarter Ended March 31, 2022 2021 United States $ 8,187 $ 9,932 Europe 2,107 2,230 Rest of the World 2,982 3,726 Total net revenue $ 13,276 $ 15,888 Long-lived assets (consisting of equipment, software, leasehold improvements, operating lease assets, and goodwill) by geographic region (in thousands) are as follows: March 31, December 31, United States $ 14,098 $ 14,402 Europe 7,057 6,682 Rest of the World 1,228 1,354 Total long-lived assets $ 22,383 $ 22,438

Revenue Recognition Revenue R_2

Revenue Recognition Revenue Recognition (Tables)	3 Months Ended
	Mar. 31, 2022
Revenue from Contract with Customer [Abstract]
Disaggregation of Revenue	Disaggregation of Revenue The following table presents our disaggregated revenue by source and segment (in thousands): Quarter Ended March 31, 2022 Consumer Media Mobile Services Games Business Line Software License $ 987 $ 1,531 $ — Subscription Services 742 4,109 2,219 Product Sales 163 — 2,377 Advertising and Other 219 — 929 Total $ 2,111 $ 5,640 $ 5,525 Quarter Ended March 31, 2021 Consumer Media Mobile Services Games Business Line Software License $ 1,875 $ 1,391 $ — Subscription Services 818 4,589 2,528 Product Sales 438 — 3,163 Advertising and Other 178 — 908 Total $ 3,309 $ 5,980 $ 6,599 The following table presents our disaggregated revenue by sales channel (in thousands): Quarter Ended March 31, 2022 Consumer Media Mobile Services Games Sales Channel Business to Business $ 1,206 $ 5,571 $ 1,103 Direct to Consumer 905 69 4,422 Total $ 2,111 $ 5,640 $ 5,525 Quarter Ended March 31, 2021 Consumer Media Mobile Services Games Sales Channel Business to Business $ 2,053 $ 5,885 $ 1,061 Direct to Consumer 1,256 95 5,538 Total $ 3,309 $ 5,980 $ 6,599

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	3 Months Ended
	Mar. 31, 2022
Share-based Payment Arrangement [Abstract]
Stock-Based Compensation Expense	Total stock-based compensation expense recognized in our unaudited condensed consolidated statements of operations and comprehensive loss includes amounts related to stock options and restricted stock and was as follows (in thousands): Quarter Ended March 31, 2022 2021 Total stock-based compensation expense $ 695 $ 836
Weighted-Average Assumptions Used to Determine Fair Value of Options Granted	The fair value of RealNetworks options granted determined using the Black-Scholes model used the following weighted-average assumptions: Quarter Ended March 31, 2022 2021 Expected dividend yield 0 % 0 % Risk-free interest rate 1.73 % 0.48 % Expected life (years) 4.0 3.9 Volatility 85 % 71 %

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended
	Mar. 31, 2022
Fair Value Disclosures [Abstract]
Financial Assets Measured at Fair Value on a Recurring Basis	The following tables present information about our financial assets that have been measured at fair value on a recurring basis as of March 31, 2022 and December 31, 2021, and indicates the fair value hierarchy of the valuation inputs utilized to determine fair value (in thousands) : Fair Value Measurements as of Amortized Cost as of March 31, 2022 March 31, 2022 Level 1 Level 2 Level 3 Total Assets: Cash and cash equivalents $ 21,775 $ — $ — $ 21,775 $ 21,775 Restricted cash equivalents 1,630 — — 1,630 1,630 Total assets $ 23,405 $ — $ — $ 23,405 $ 23,405 Fair Value Measurements as of Amortized Cost as of December 31, 2021 December 31, 2021 Level 1 Level 2 Level 3 Total Assets: Cash and cash equivalents $ 27,109 $ — $ — $ 27,109 $ 27,109 Investments — — 1,755 1,755 N/A Restricted cash equivalents 1,630 — — 1,630 1,630 Total assets $ 28,739 $ — $ 1,755 $ 30,494 N/A

Accrued and Other Current Lia_2

Accrued and Other Current Liabilities (Tables)	3 Months Ended
	Mar. 31, 2022
Payables and Accruals [Abstract]
Accrued and Other Liabilities	Accrued and other current liabilities (in thousands): March 31, 2022 December 31, 2021 Royalties and other fulfillment costs $ 735 $ 1,189 Employee compensation, commissions and benefits 5,451 5,761 Sales, VAT and other taxes payable 899 1,056 Operating lease liabilities 1,994 2,113 Other 3,408 3,167 Total accrued and other current liabilities $ 12,487 $ 13,286

Restructuring Charges (Tables)

Restructuring Charges (Tables)	3 Months Ended
	Mar. 31, 2022
Restructuring and Related Activities [Abstract]
Schedule of Restructuring Charges by Type of Cost	Restructuring charges are as follows (in thousands): Employee Separation Costs Asset Related and Other Costs Total Costs incurred and charged to expense for the three months ended March 31, 2022 $ 217 $ 73 $ 290 Costs incurred and charged to expense for the three months ended March 31, 2021 $ 581 $ 2,590 $ 3,171 During the quarter ended March 31, 2021, we recorded $2.5 million of lease impairment charges for an office space previously vacated. Changes to the accrued restructuring liability (which is included in Accrued and other current liabilities) for 2022 are as follows (in thousands): Employee Separation Costs Asset Related and Other Costs Total Accrued liability at December 31, 2021 $ 316 $ 1,475 $ 1,791 Costs incurred and charged to expense for the three months ended March 31, 2022, excluding noncash charges 217 — 217 Cash payments (147) (436) (583) Accrued liability at March 31, 2022 $ 386 $ 1,039 $ 1,425

Earnings (Loss) Per Share (Tabl

Earnings (Loss) Per Share (Tables)	3 Months Ended
	Mar. 31, 2022
Earnings Per Share [Abstract]
Calculation of Basic and Diluted Earnings Per Share	Basic and diluted EPS (in thousands, except per share amounts): Quarter Ended March 31, 2022 2021 Net loss attributable to RealNetworks $ (5,225) $ (10,448) Weighted average common shares outstanding used to compute basic EPS 47,276 38,502 Dilutive effect of stock based awards and Series B Preferred Stock — — Weighted average common shares outstanding used to compute diluted EPS 47,276 38,502 Net loss per share attributable to RealNetworks- Basic $ (0.11) $ (0.27) Net loss per share attributable to RealNetworks- Diluted $ (0.11) $ (0.27)

Segment Information (Tables)

Segment Information (Tables)	3 Months Ended
	Mar. 31, 2022
Segment Reporting [Abstract]
Segment Results	Segment results for the quarters ended March 31, 2022 and 2021 (in thousands): Consumer Media Quarter Ended March 31, 2022 2021 Revenue $ 2,111 $ 3,309 Cost of revenue 388 478 Gross profit 1,723 2,831 Operating expenses 1,472 2,201 Operating income $ 251 $ 630 Mobile Services Quarter Ended March 31, 2022 2021 Revenue $ 5,640 $ 5,980 Cost of revenue 1,045 1,492 Gross profit 4,595 4,488 Operating expenses 6,666 6,145 Operating loss $ (2,071) $ (1,657) Games Quarter Ended March 31, 2022 2021 Revenue $ 5,525 $ 6,599 Cost of revenue 1,295 1,705 Gross profit 4,230 4,894 Operating expenses 3,999 5,098 Operating income (loss) $ 231 $ (204) Corporate Quarter Ended March 31, 2022 2021 Cost of revenue $ 8 $ 4 Operating expenses 3,360 4,960 Operating loss $ (3,368) $ (4,964)
Revenue by Geographic Region	Our customers consist primarily of consumers and corporations located in the U.S., Europe, and various foreign countries (Rest of the World). Revenue by geographic region (in thousands): Quarter Ended March 31, 2022 2021 United States $ 8,187 $ 9,932 Europe 2,107 2,230 Rest of the World 2,982 3,726 Total net revenue $ 13,276 $ 15,888
Long-Lived Assets by Geographic Region	Long-lived assets (consisting of equipment, software, leasehold improvements, operating lease assets, and goodwill) by geographic region (in thousands) are as follows: March 31, December 31, United States $ 14,098 $ 14,402 Europe 7,057 6,682 Rest of the World 1,228 1,354 Total long-lived assets $ 22,383 $ 22,438

Description of Business and S_3

Description of Business and Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Operating income (loss)	$ (4,957)	$ (6,195)
Retained Earnings (Accumulated Deficit)	(576,068)		$ (570,843)
Cash and Cash Equivalents, at Carrying Value	$ 21,775		$ 27,109

Revenue Recognition (Disaggrega

Revenue Recognition (Disaggregation of Revenue) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Disaggregation of Revenue [Line Items]
Revenue	$ 13,276	$ 15,888
Long-term accounts receivable	300		$ 200
Deferred revenue	3,500		$ 2,800
Software License
Disaggregation of Revenue [Line Items]
Revenue
Subscription Services
Disaggregation of Revenue [Line Items]
Revenue
Product Sales
Disaggregation of Revenue [Line Items]
Revenue
Advertising and Other
Disaggregation of Revenue [Line Items]
Revenue
Consumer Media
Disaggregation of Revenue [Line Items]
Revenue	2,111	3,309
Consumer Media | Business to Business
Disaggregation of Revenue [Line Items]
Revenue	1,206	2,053
Consumer Media | Direct to Consumer
Disaggregation of Revenue [Line Items]
Revenue	905	1,256
Consumer Media | Software License
Disaggregation of Revenue [Line Items]
Revenue	987	1,875
Consumer Media | Subscription Services
Disaggregation of Revenue [Line Items]
Revenue	742	818
Consumer Media | Product Sales
Disaggregation of Revenue [Line Items]
Revenue	163	438
Consumer Media | Advertising and Other
Disaggregation of Revenue [Line Items]
Revenue	219	178
Mobile Services
Disaggregation of Revenue [Line Items]
Revenue	5,640	5,980
Mobile Services | Business to Business
Disaggregation of Revenue [Line Items]
Revenue	5,571	5,885
Mobile Services | Direct to Consumer
Disaggregation of Revenue [Line Items]
Revenue	69	95
Mobile Services | Software License
Disaggregation of Revenue [Line Items]
Revenue	1,531	1,391
Mobile Services | Subscription Services
Disaggregation of Revenue [Line Items]
Revenue	4,109	4,589
Mobile Services | Product Sales
Disaggregation of Revenue [Line Items]
Revenue	0	0
Mobile Services | Advertising and Other
Disaggregation of Revenue [Line Items]
Revenue	0	0
Games
Disaggregation of Revenue [Line Items]
Revenue	5,525	6,599
Games | Business to Business
Disaggregation of Revenue [Line Items]
Revenue	1,103	1,061
Games | Direct to Consumer
Disaggregation of Revenue [Line Items]
Revenue	4,422	5,538
Games | Software License
Disaggregation of Revenue [Line Items]
Revenue	0	0
Games | Subscription Services
Disaggregation of Revenue [Line Items]
Revenue	2,219	2,528
Games | Product Sales
Disaggregation of Revenue [Line Items]
Revenue	2,377	3,163
Games | Advertising and Other
Disaggregation of Revenue [Line Items]
Revenue	$ 929	$ 908

Stock-Based Compensation (Recog

Stock-Based Compensation (Recognized Stock-Based Compensation Expense) (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Share-based Payment Arrangement [Abstract]
Share-based Payment Arrangement, Expense	$ 695	$ 836

Stock-Based Compensation (Weigh

Stock-Based Compensation (Weighted-Average Assumptions Used to Determine Fair Value of Options Granted) (Detail)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Share-based Payment Arrangement [Abstract]
Expected dividend yield	0.00%	0.00%
Risk-free interest rate	1.73%	0.48%
Expected life	4 years	3 years 10 months 24 days
Volatility	85.00%	71.00%

Stock-Based Compensation (Addit

Stock-Based Compensation (Additional Information) (Detail) $ in Thousands	3 Months Ended
	Mar. 31, 2022USD ($)
Share-based Payment Arrangement [Abstract]
Total unrecognized compensation cost	$ 1,600
Total unrecognized compensation cost, expected recognition period (in years)	3 years

Fair Value Measurements (Financ

Fair Value Measurements (Financial Assets Measured at Fair Value on a Recurring Basis) (Detail) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets fair value	$ 23,405	$ 30,494
Cash and Cash Equivalents | Cash
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets fair value	21,775	27,109
Amortized Cost	21,775	27,109
Securities Investment [Member] | Equity Securities [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets fair value		1,755
Restricted Cash Equivalents And Investments [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets fair value	1,630	1,630
Amortized Cost	1,630	1,630
Level 1
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets fair value	23,405	28,739
Level 1 | Cash and Cash Equivalents | Cash
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets fair value	21,775	27,109
Level 1 | Securities Investment [Member] | Equity Securities [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets fair value		0
Level 1 | Restricted Cash Equivalents And Investments [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets fair value	1,630	1,630
Level 2
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets fair value	0	0
Level 2 | Cash and Cash Equivalents | Cash
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets fair value	0	0
Level 2 | Securities Investment [Member] | Equity Securities [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets fair value		0
Level 2 | Restricted Cash Equivalents And Investments [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets fair value	0	0
Level 3
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets fair value	0	1,755
Level 3 | Cash and Cash Equivalents | Cash
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets fair value	0	0
Level 3 | Securities Investment [Member] | Equity Securities [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets fair value		1,755
Level 3 | Restricted Cash Equivalents And Investments [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets fair value	$ 0	$ 0

Fair Value Measurements - Addit

Fair Value Measurements - Additional Information (Detail) $ in Millions	3 Months Ended
	Mar. 31, 2022USD ($)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Unrestricted Cash And Cash Equivalents Minimum Amount Required	$ 1.5
Equity Securities [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Unobservable Measurement Input, Uncertainty, Description	Investments as of December 31, 2021 were comprised of Napster Group ordinary shares received as a portion of the consideration from the Napster disposition, which closed on December 30, 2020. The fair value of these equity securities was calculated using the closing price of the shares as of December 31, 2021. In the first quarter of 2022 these shares were acquired by a third party. The fair value at December 31, 2021 approximates the consideration to be received and is now recorded as a receivable within Prepaid expenses and other current assets on our condensed consolidated balance sheet as of March 31, 2022.

Accrued and Other Current Lia_3

Accrued and Other Current Liabilities (Detail) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Product Warranty Liability [Line Items]
Royalties and other fulfillment costs	$ 735	$ 1,189
Employee compensation, commissions and benefits	5,451	5,761
Sales, VAT and other taxes payable	899	1,056
Operating Lease, Liability, Current	1,994	2,113
Other	3,408	3,167
Total accrued and other liabilities	$ 12,487	$ 13,286

Debt Disclosure Detail

Debt Disclosure Detail - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Aug. 31, 2019
Line of Credit Facility [Line Items]
Unrestricted Cash And Cash Equivalents Minimum Amount Required	$ 1,500
Revolving Credit Facility [Member]
Line of Credit Facility [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity	6,500
Letters of Credit Outstanding, Amount	$ 400
Debt Instrument, Description of Variable Rate Basis	3.25
Debt Issuance Costs, Line of Credit Arrangements, Gross		$ 600
Revolving Credit Facility [Member] | Prime Rate [Member]
Line of Credit Facility [Line Items]
Debt Instrument, Basis Spread on Variable Rate	0.50%

Equity (Details)

Equity (Details) - shares shares in Thousands	Mar. 31, 2022	Dec. 31, 2021
Common Stock [Member]
Schedule of Capitalization, Equity [Line Items]
Common stock, issued	47,324	47,115

Restructuring Charges (Details)

Restructuring Charges (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Restructuring Cost and Reserve [Line Items]
Costs incurred and charged to expense	$ 290	$ 3,171
Restructuring Reserve [Roll Forward]
Accrued liability beginning balance	1,791
Costs incurred and charged to expense	217
Cash payments	583
Accrued liability ending balance	1,425
Operating Lease, Impairment Loss	0	2,461
Employee Separation Costs
Restructuring Cost and Reserve [Line Items]
Costs incurred and charged to expense	217	581
Restructuring Reserve [Roll Forward]
Accrued liability beginning balance	316
Costs incurred and charged to expense	217
Cash payments	147
Accrued liability ending balance	386
Asset Related and Other Costs
Restructuring Cost and Reserve [Line Items]
Costs incurred and charged to expense	73	$ 2,590
Restructuring Reserve [Roll Forward]
Accrued liability beginning balance	1,475
Costs incurred and charged to expense	0
Cash payments	436
Accrued liability ending balance	$ 1,039

Earnings (Loss) Per Share (Calc

Earnings (Loss) Per Share (Calculation of Basic and Diluted Earnings Per Share) (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Earnings Per Share [Abstract]
Net Income (Loss) Attributable to Parent	$ (5,225)	$ (10,448)
Shares used to compute basic net income (loss) per share	47,276,000	38,502,000
Weighted Average Number Diluted Shares Outstanding Adjustment	0	0
Shares used to compute diluted net income (loss) per share	47,276,000	38,502,000
Continuing operations, basic (USD per share)	$ (0.11)	$ (0.27)
Diluted net income (loss) per share (USD per share)	$ (0.11)	$ (0.27)

Earnings (Loss) Per Share (Addi

Earnings (Loss) Per Share (Additional Information) (Detail) - shares	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Shares of common stock excluded from the calculation of diluted net income per share because of antidilutive effect	8,300,000	4,500,000
Share of preferred stock in exchange for additional funding	8,100,000

Commitments and Contingencies C

Commitments and Contingencies Commitments and Contingencies (Details) $ in Millions	Apr. 06, 2020USD ($)
Korean Music Copyright Association (KOMCA)
Loss Contingencies [Line Items]
Damages sought	$ 2.6

Segment Information (Additional

Segment Information (Additional Information) (Detail)	3 Months Ended
	Mar. 31, 2022Segment
Segment Reporting Information [Line Items]
Number of reporting segments	3

Segment Information (Segment Re

Segment Information (Segment Results) (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Segment Reporting Information [Line Items]
Revenue	$ 13,276	$ 15,888
Cost of revenue	2,736	3,679
Gross profit	10,540	12,209
Operating expenses	15,497	18,404
Operating income (loss)	(4,957)	(6,195)
Consumer Media
Segment Reporting Information [Line Items]
Revenue	2,111	3,309
Mobile Services
Segment Reporting Information [Line Items]
Revenue	5,640	5,980
Games
Segment Reporting Information [Line Items]
Revenue	5,525	6,599
Operating Segments | Consumer Media
Segment Reporting Information [Line Items]
Revenue	2,111	3,309
Cost of revenue	388	478
Gross profit	1,723	2,831
Operating expenses	1,472	2,201
Operating income (loss)	251	630
Operating Segments | Mobile Services
Segment Reporting Information [Line Items]
Revenue	5,640	5,980
Cost of revenue	1,045	1,492
Gross profit	4,595	4,488
Operating expenses	6,666	6,145
Operating income (loss)	(2,071)	(1,657)
Operating Segments | Games
Segment Reporting Information [Line Items]
Revenue	5,525	6,599
Cost of revenue	1,295	1,705
Gross profit	4,230	4,894
Operating expenses	3,999	5,098
Operating income (loss)	231	(204)
Corporate
Segment Reporting Information [Line Items]
Cost of revenue	8	4
Operating expenses	3,360	4,960
Operating income (loss)	$ (3,368)	$ (4,964)

Segment Information (Revenue by

Segment Information (Revenue by Geographic Region) (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	$ 13,276	$ 15,888
United States
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	8,187	9,932
Europe
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	2,107	2,230
Rest of the World
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	$ 2,982	$ 3,726

Segment Information (Long-Lived

Segment Information (Long-Lived Assets by Geographic Region) (Detail) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-lived assets	$ 22,383	$ 22,438
United States
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-lived assets	14,098	14,402
Europe
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-lived assets	7,057	6,682
Rest of the World
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-lived assets	$ 1,228	$ 1,354

Related Party Transactions Rela

Related Party Transactions Related Party Transactions (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Dec. 31, 2021
Related Party Transaction [Line Items]
Income (Loss) from Equity Method Investments	$ 0.2
Series B Preferred Stock
Related Party Transaction [Line Items]
Preferred stock, shares issued	8,065,000	8,065,000