EX-99.1 2 exhibit991erq2-18.htm EXHIBIT 99.1 ER Q2-18 Exhibit


Exhibit 99.1
REALNETWORKS ANNOUNCES SECOND QUARTER 2018
RESULTS
SEATTLE - August 1, 2018 -

Revenue of $15.7 million compared to $21.6 million in the prior year period and $19.7 million in the prior quarter
Reduced operating expenses by $0.6 million, or 3%, year-over-year and by $1.5 million, or 8%, sequentially
Gross margin from continuing operations of 71%, same as the prior year period
Continued progress on growth initiatives that will contribute to revenue in 2018
Launched SAFR, a state-of-the-art facial recognition platform, July 2018

RealNetworks, Inc. (Nasdaq: RNWK), a leader in digital media software and services, today announced results for the second quarter ended June 30, 2018.

Management Commentary
"It was a disappointing quarter financially and a strong quarter strategically," said Rob Glaser, Chairman and CEO of RealNetworks. "Revenue and Adjusted EBITDA fell short of our expectations, as a result of a few specific factors that don't lessen our confidence in our growth initiatives. We are particularly pleased with the mid-July launch of SAFR, our world class facial recognition platform. Initial market feedback has been very encouraging."
Second Quarter 2018 Financial Highlights from Continuing Operations
Revenue was $15.7 million compared to $19.7 million in the prior quarter and $21.6 million in the prior year period.
Operating expenses decreased $1.5 million, or 8%, from the prior quarter and decreased $0.6 million, or 3%, from the prior year period.
Net loss was $(6.9) million, or $(0.18) per share, compared to net loss of $(5.2) million, or $(0.14) per share, in the prior quarter and a net loss of $(3.8) million, or $(0.10) per share, in the prior year period.
Adjusted EBITDA was a loss of $(5.7) million compared to a loss of $(3.0) million in the prior quarter and a loss of $(1.3) million in the prior year period. A reconciliation of GAAP net income (loss) to adjusted EBITDA, a non-GAAP measure, is provided in the financial tables that accompany this release.
At June 30, 2018, the Company had $42.1 million in unrestricted cash, cash equivalents and short-term investments, compared to $54.3 million at March 31, 2018. This change included $4.2 million associated with our acquisition of Blue Giraffe, a Netherlands-based game development studio.

Business Outlook

For the third quarter of 2018, RealNetworks expects to achieve the following results:
Total revenue is expected to be in the range of $17 million to $19 million.
Adjusted EBITDA loss is expected to be in the range of $(2.5) million to $(4.5) million.








New Revenue Recognition Accounting Standard

As of January 1, 2018, we adopted Accounting Standards Codification 606 (Topic 606), Revenue from Contracts with Customers, which affects the accounting for our revenue. We adopted Topic 606 using the modified retrospective transition method, under which the prior periods presented have not been recast to reflect adoption of the new standard.

For additional details on the impact of the standard, see our Annual Report on Form 10-K for the year ended December 31, 2017, and our 2018 Quarterly Reports on Form 10-Q.
Conference Call and Webcast Information
The company will host a conference call today to review results and discuss the company's performance shortly after 4:30 p.m. ET/1:30 p.m. PT. You may join the conference call by calling 1-877-451-6152 (United States) or 1-201-389-0879 (International). A telephonic replay of the call will also be available shortly after the completion of the call, until 11:59 pm ET on Wednesday, August 22, 2018, by dialing 1-844-512-2921 (United States) or 1-412-317-6671 (International) and entering the replay pin number: 13681039.
A live webcast will be available on RealNetworks’ Investor Relations site under Events at http://investor.realnetworks.com and will be archived online upon completion of the conference call.

For More Information

Investor Relations for RealNetworks
Laura Bainbridge, Addo IR
310-829-5400
IR@realnetworks.com
RNWK-F


About RealNetworks

RealNetworks creates innovative technology products and services that make it easy to connect with and enjoy digital media. RealNetworks invented the streaming media category and continues to connect consumers with their digital media both directly and through partners, aiming to support every network, device, media type and social network. Find RealNetworks’ corporate information at www.realnetworks.com.

RealNetworks® and the company’s respective logos are trademarks, registered trademarks, or service marks of RealNetworks, Inc. Other products and company names mentioned are the trademarks of their respective owners.

About Non-GAAP Financial Measures
To supplement RealNetworks' consolidated financial information presented in accordance with GAAP in this press release, the company also discloses certain non-GAAP financial measures, including adjusted EBITDA and contribution margin by reportable segment, which management believes provide investors with useful information.
In the financial tables of our earnings press release, RealNetworks has included reconciliations of GAAP net income (loss) from continuing operations to adjusted EBITDA and operating income (loss) by reportable segment to contribution margin by reportable segment.





The rationale for management's use of non-GAAP measures is included in the supplementary materials presented with the quarterly earnings materials. Please refer to Exhibit 99.2 (“Information Regarding Non-GAAP Financial Measures”) to the company's report on Form 8-K, which is being submitted today to the SEC.

Forward-Looking Statements

This press release contains forward-looking statements that involve risks and uncertainties, including statements relating to RealNetworks' current expectations regarding future revenue and adjusted EBITDA, our future growth, profitability, and market position, our strategic focus and initiatives, agreements with partners, and the growth and future prospects relating to our Rhapsody d/b/a Napster affiliate. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements. These statements reflect RealNetworks’ expectations as of today, and actual results may differ materially from the results predicted. Factors that could cause actual results to differ from the results predicted include: RealNetworks' ability to realize operating efficiencies, growth and other benefits from the implementation of its growth plan, strategic initiatives, and restructuring efforts; the emergence of new entrants and competition in the market for digital media products and services; other competitive risks, including the growth of competing technologies, products and services; the potential outcomes and effects of claims and legal proceedings on RealNetworks' business, prospects, financial condition or results of operations; risks associated with key customer or strategic relationships, business acquisitions and the introduction of new products and services; changes in consumer and advertising spending in response to disruptions in the global financial markets; fluctuations in foreign currencies; and changes in RealNetworks' effective tax rate. More information about potential risk factors that could affect RealNetworks' business and financial results is included in RealNetworks' annual report on Form 10-K for the most recent year ended December 31, its quarterly reports on Form 10-Q and in other reports and documents filed by RealNetworks from time to time with the Securities and Exchange Commission. The preparation of RealNetworks' financial statements and forward-looking financial guidance requires the company to make estimates and assumptions that affect the reported amount of assets and liabilities, and revenues and expenses during the reported period.  Actual results may differ materially from these estimates under different assumptions or conditions. The company assumes no obligation to update any forward-looking statements or information, which are in effect as of their respective dates.























RealNetworks, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
(Unaudited)

 
 
Quarter Ended
June 30,
 
Six Months Ended
June 30,
 
 
 

 
2018
 
2017
 
2018
 
2017
 
 
 (in thousands, except per share data)
 
 
 
 
 
 
 
 
 
 Net revenue
 
$
15,724

 
$
21,605

 
$
35,374

 
$
41,296

 Cost of revenue
 
4,625

 
6,287

 
9,761

 
12,856

           Gross profit
 
11,099

 
15,318

 
25,613

 
28,440

 
 
 
 
 
 
 
 
 
 Operating expenses:
 
 
 


 

 

       Research and development
 
7,652

 
7,584

 
15,346

 
14,933

       Sales and marketing
 
4,883

 
5,496

 
10,880

 
12,651

       General and administrative
 
5,339

 
5,254

 
10,940

 
10,557

       Restructuring and other charges
 
187

 
150

 
688

 
1,714

       Lease exit and related benefit
 
(129
)
 

 
(454
)
 

 
 
 
 
 
 
 
 
 
           Total operating expenses
 
17,932

 
18,484

 
37,400

 
39,855

 
 
 
 
 
 
 
 
 
 Operating loss
 
(6,833
)
 
(3,166
)
 
(11,787
)
 
(11,415
)
 
 
 
 
 
 
 
 
 
 Other income (expenses):
 
 
 
 
 
 
 
 
       Interest income, net
 
111

 
109

 
198

 
237

       Equity in net loss of Napster
 

 
(349
)
 

 
(1,097
)
       Other income (expense), net
 
(42
)
 
(13
)
 
(83
)
 
(239
)
 
 
 
 
 
 
 
 
 
           Total other income (expense), net
 
69

 
(253
)
 
115

 
(1,099
)
 
 
 
 
 
 
 
 
 
 Loss from continuing operations before income taxes
 
(6,764
)
 
(3,419
)
 
(11,672
)
 
(12,514
)
 Income tax expense
 
166

 
360

 
436

 
815

 
 
 
 
 
 
 
 
 
Loss from continuing operations
 
(6,930
)
 
(3,779
)
 
(12,108
)
 
(13,329
)
Net income from discontinued operations, net of tax
 

 
393

 

 
519

 Net loss
 
$
(6,930
)
 
$
(3,386
)
 
$
(12,108
)
 
$
(12,810
)
 
 
 
 
 
 
 
 
 
Net income (loss) per share - Basic:
 
 
 
 
 
 
 
 
Continuing operations
 
$
(0.18
)
 
$
(0.10
)
 
$
(0.32
)
 
$
(0.35
)
Discontinued operations
 

 
0.01

 

 
0.01

Net loss per share - Basic
 
$
(0.18
)
 
$
(0.09
)
 
$
(0.32
)
 
$
(0.34
)
Net income (loss) per share - Diluted:
 
 
 
 
 
 
 
 
Continuing operations
 
$
(0.18
)
 
$
(0.10
)
 
$
(0.32
)
 
$
(0.35
)
Discontinued operations
 

 
0.01

 

 
0.01

Net loss per share - Diluted
 
$
(0.18
)
 
$
(0.09
)
 
$
(0.32
)
 
$
(0.34
)
 
 
 
 
 
 
 
 
 
 Shares used to compute basic net income (loss) per share
 
37,577

 
37,103

 
37,514

 
37,067

 Shares used to compute diluted net income (loss) per share
 
37,577

 
37,103

 
37,514

 
37,067







RealNetworks, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(Unaudited)
 
June 30,
2018
 
December 31,
2017
 
 (in thousands)
ASSETS
 Current assets:
 
 
 
 Cash and cash equivalents
$
39,080

 
$
51,196

 Short-term investments
3,053

 
8,779

 Trade accounts receivable, net
13,127

 
12,689

 Deferred costs, current portion
375

 
426

 Prepaid expenses and other current assets
5,250

 
3,715

Current assets of discontinued operations

 
17,456

 Total current assets
60,885

 
94,261

 
 
 
 
 Equipment and software
41,793

 
46,417

 Leasehold improvements
3,511

 
3,536

 Total equipment, software, and leasehold improvements
45,304

 
49,953

 Less accumulated depreciation and amortization
42,083

 
46,093

 Net equipment, software, and leasehold improvements
3,221

 
3,860

 
 
 
 
 Restricted cash equivalents
1,880

 
2,400

 Other assets
5,844

 
5,588

 Deferred costs, non-current portion
679

 
955

 Deferred tax assets, net
1,036

 
1,047

 Other intangible assets, net
215

 
325

 Goodwill
17,120

 
13,060

 
 
 
 
 Total assets
$
90,880

 
$
121,496

 


 
 
 LIABILITIES AND SHAREHOLDERS' EQUITY
 
 
 
 
 Current liabilities:
 
 
 
 Accounts payable
$
2,744

 
$
3,785

 Accrued and other current liabilities
12,261

 
12,365

 Commitment to Napster
2,750

 
2,750

 Deferred revenue, current portion
2,155

 
3,097

Current liabilities of discontinued operations

 
17,107

 Total current liabilities
19,910

 
39,104

 
 
 
 
 Deferred revenue, non-current portion
353

 
443

 Deferred rent
1,023

 
982

 Deferred tax liabilities, net
170

 
19

 Other long-term liabilities
1,054

 
1,775

 
 
 
 
 Total liabilities
22,510

 
42,323

 
 
 
 
 
 
 
 
 Shareholders' equity
68,370

 
79,173

 
 
 
 
 Total liabilities and shareholders' equity
$
90,880

 
$
121,496








RealNetworks, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
(Unaudited)
 
Six Months Ended
June 30,
 
2018
 
2017
 
 (in thousands)
 
 Cash flows from operating activities:
 
 
 
 Net loss
$
(12,108
)
 
$
(12,810
)
 Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization
1,231

 
1,757

Stock-based compensation
1,614

 
2,297

Equity in net loss of Napster

 
1,097

Deferred income taxes, net
(12
)
 
(40
)
Fair value of warrants granted in 2015 and 2017, net of subsequent mark to market adjustments in 2018 and 2017
50

 
(417
)
Net change in certain operating assets and liabilities
(3,505
)
 
(5,830
)
  Net cash used in operating activities
(12,730
)
 
(13,946
)
 Cash flows from investing activities:


 
 
Purchases of equipment, software, and leasehold improvements
(580
)
 
(417
)
Purchases of short-term investments

 
(13,905
)
Proceeds from sales and maturities of short-term investments
5,726

 
32,617

Acquisition, net of cash acquired
(4,192
)
 

Advance to Napster

 
(1,500
)
 Net cash provided by investing activities
954

 
16,795

 Cash flows from financing activities:
 
 
 
Proceeds from issuance of common stock (stock options and stock purchase plan)
114

 
130

Tax payments from shares withheld upon vesting of restricted stock
(243
)
 
(192
)
 Net cash used in financing activities
(129
)
 
(62
)
 Effect of exchange rate changes on cash, cash equivalents and restricted cash
(731
)
 
1,347

 Net increase (decrease) in cash, cash equivalents and restricted cash
(12,636
)
 
4,134

 Cash, cash equivalents and restricted cash, beginning of period
53,596

 
36,421

 Cash, cash equivalents and restricted cash, end of period
$
40,960

 
$
40,555











RealNetworks, Inc. and Subsidiaries
Supplemental Financial Information
(Unaudited)
 
2018
 
2017
 
 Q2
 
Q1
 
 Q4
 
 Q3
 
 Q2
 
 Q1
 
 (in thousands)
Net Revenue by Line of Business
 
 
 
 
 
 
 
 
 
 
 
Consumer Media (A)
$
3,884

 
$
5,483

 
$
5,752

 
$
4,197

 
$
6,951

 
$
5,669

Mobile Services (B)
6,719

 
8,704

 
7,155

 
7,678

 
7,720

 
8,199

Games (C)
5,121

 
5,463

 
5,958

 
6,682

 
6,934

 
5,823

     Total net revenue
$
15,724

 
$
19,650

 
$
18,865

 
$
18,557

 
$
21,605

 
$
19,691

 
 
 
 
 
 
 
 
 
 
 
 
Net Revenue by Product
 
 
 
 
 
 
 
 
 
 
 
Consumer Media
 
 
 
 
 
 
 
 
 
 
 
- Software License (D)
$
1,808

 
$
3,337

 
$
3,595

 
$
2,012

 
$
4,741

 
$
3,295

- Subscription Services (E)
1,225

 
1,285

 
1,362

 
1,434

 
1,531

 
1,564

- Product Sales (F)
299

 
340

 
350

 
322

 
261

 
377

- Advertising & Other (G)
552

 
521

 
445

 
429

 
418

 
433

 
 
 
 
 
 
 
 
 
 
 
 
Mobile Services
 
 
 
 
 
 
 
 
 
 
 
- Software License (H)
469

 
1,335

 
388

 
688

 
642

 
619

- Subscription Services (I)
6,250

 
7,369

 
6,767

 
6,990

 
7,078

 
7,580

 
 
 
 
 
 
 
 
 
 
 
 
Games
 
 
 
 
 
 
 
 
 
 
 
- Subscription Services (J)
2,689

 
2,693

 
2,707

 
2,708

 
2,781

 
2,828

- Product Sales (K)
1,953

 
2,402

 
3,086

 
3,851

 
4,007

 
2,862

- Advertising & Other (L)
479

 
368

 
165

 
123

 
146

 
133

 
 
 
 
 
 
 
 
 
 
 
 
     Total net revenue
$
15,724

 
$
19,650

 
$
18,865

 
$
18,557

 
$
21,605

 
$
19,691

 
 
 
 
 
 
 
 
 
 
 
 
Net Revenue by Geography
 
 
 
 
 
 
 
 
 
 
 
United States
$
7,646

 
$
11,434

 
$
10,120

 
$
10,084

 
$
10,889

 
$
9,740

Rest of world
8,078

 
8,216

 
8,745

 
8,473

 
10,716

 
9,951

     Total net revenue
$
15,724

 
$
19,650

 
$
18,865

 
$
18,557

 
$
21,605

 
$
19,691

 
 
 
 
 
 
 
 
 
 
 
 
Net Revenue by Line of Business
 
 
 
 
 
 
 
 
 
 
 
(A) The Consumer Media division primarily includes revenue from the licensing of our portfolio of video codec technologies. Also included is RealPlayer and related products, such as the distribution of third-party software products, advertising on RealPlayer websites, sales of RealPlayer Plus software to consumers, and consumer subscriptions such as RealPlayer Plus and SuperPass.
(B) The Mobile Services division primarily includes revenue from SaaS services and sales of professional services provided to mobile carriers.
(C) The Games division primarily includes revenue from sales of mobile and PC games, online games subscription services, and advertising on games sites and social network sites.
Net Revenue by Product
 
 
 
 
 
 
 
 
 
 
 
(D) Software licensing revenue within Consumer Media includes revenues from licenses of our video codec technologies.
(E) Subscriptions revenue within Consumer Media includes revenue from subscriptions such as our RealPlayer Plus and SuperPass offerings.
(F) Product sales within Consumer Media includes sales of RealPlayer Plus software to consumers.
(G) Advertising & other revenue within Consumer Media includes distribution of third-party software products and advertising on RealPlayer websites.
(H) Software license revenue within Mobile Services includes revenue from our integrated RealTimes platform.
(I) Subscription services revenue within Mobile Services includes revenue from ringback tones and our intercarrier messaging services, as well as from related professional services provided to mobile carriers.
(J) Subscription services revenue within Games includes revenue from online games subscriptions.
(K) Product sales revenue within Games includes revenue from retail and wholesale games-related revenue and sales of mobile games.
(L) Advertising & other revenue within Games includes advertising on games sites and social network sites.





RealNetworks, Inc. and Subsidiaries
Segment Results of Operations and Reconciliation to non-GAAP Contribution Margin
(Unaudited)



 
2018
 
2017
 
2018
 
2017
 
Q2
 
Q1
 
Q2
 
YTD
 
YTD
 
 (in thousands)
Consumer Media
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net revenue
$
3,884

 
$
5,483

 
$
6,951

 
$
9,367

 
$
12,620

Cost of revenue
1,028

 
993

 
1,159

 
2,021

 
2,564

   Gross profit
2,856

 
4,490

 
5,792

 
7,346

 
10,056

 
 
 
 
 
 
 
 
 
 
   Gross margin
74
%
 
82
%
 
83
%
 
78
%
 
80
%
 
 
 
 
 
 
 
 
 
 
Operating expenses
3,439

 
3,918

 
3,730

 
7,357

 
7,740

Operating income (loss), a GAAP measure
$
(583
)
 
$
572

 
$
2,062

 
$
(11
)
 
$
2,316

Depreciation and amortization
51


46

 
159


97

 
326

 
 
 
 
 
 
 
 
 
 
  Contribution margin, a non-GAAP measure
$
(532
)
 
$
618

 
$
2,221

 
$
86

 
$
2,642

 
 
 
 
 
 
 
 
 
 
Mobile Services
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net revenue
$
6,719

 
$
8,704

 
$
7,720

 
$
15,423

 
$
15,919

Cost of revenue
2,134

 
2,316

 
2,426

 
4,450

 
5,616

   Gross profit
4,585

 
6,388

 
5,294

 
10,973

 
10,303

 
 
 
 
 
 
 
 
 
 
   Gross margin
68
%
 
73
%
 
69
%
 
71
%
 
65
%
 
 
 
 
 
 
 
 
 
 
Operating expenses
6,969

 
7,366

 
6,705

 
14,335

 
14,824

Operating income (loss), a GAAP measure
$
(2,384
)
 
$
(978
)
 
$
(1,411
)
 
$
(3,362
)
 
$
(4,521
)
Acquisitions related intangible asset amortization
91


92

 
201


183

 
397

Depreciation and amortization
155


180

 
175


335

 
378

 
 
 
 
 
 
 
 
 
 
Contribution margin, a non-GAAP measure
$
(2,138
)

$
(706
)
 
$
(1,035
)

$
(2,844
)
 
$
(3,746
)
 
 
 
 
 
 
 
 
 
 
Games
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net revenue
$
5,121

 
$
5,463

 
$
6,934

 
$
10,584

 
$
12,757

Cost of revenue
1,456

 
1,817

 
2,679

 
3,273

 
4,616

   Gross profit
3,665

 
3,646

 
4,255

 
7,311

 
8,141

 
 
 
 
 
 
 
 
 
 
   Gross margin
72
%
 
67
%
 
61
%
 
69
%
 
64
%
 
 
 
 
 
 
 
 
 
 
Operating expenses
5,095

 
4,917

 
5,090

 
10,012

 
10,037

Operating income (loss), a GAAP measure
$
(1,430
)
 
$
(1,271
)
 
$
(835
)
 
$
(2,701
)
 
$
(1,896
)
Acquisitions related intangible asset amortization
20



 
25


20


52

Depreciation and amortization
146


165

 
157


311


298

 
 
 
 
 
 
 
 
 
 
   Contribution margin, a non-GAAP measure
$
(1,264
)

$
(1,106
)
 
$
(653
)

$
(2,370
)

$
(1,546
)
 
 
 
 
 
 
 
 
 
 
Corporate
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cost of revenue
$
7

 
$
10

 
$
23

 
$
17

 
$
60

   Gross profit
(7
)
 
(10
)
 
(23
)
 
(17
)
 
(60
)
 
 
 
 
 
 
 
 
 
 
   Gross margin
N/A

 
N/A

 
N/A

 
N/A

 
N/A

 
 
 
 
 
 
 
 
 
 
Operating expenses
2,429

 
3,267

 
2,959

 
5,696

 
7,254

Operating income (loss), a GAAP measure
$
(2,436
)
 
$
(3,277
)
 
$
(2,982
)
 
$
(5,713
)
 
$
(7,314
)
Other income (expense), net
(42
)

(41
)
 
(13
)

(83
)
 
(239
)
Depreciation and amortization
148


137

 
119


285

 
306

Restructuring and other charges
187


501

 
150


688

 
1,714

Stock-based compensation
457


1,157

 
863


1,614

 
2,297

Lease exit and related benefit
(129
)

(325
)
 


(454
)
 

 
 
 
 
 
 
 
 
 
 
   Contribution margin, a non-GAAP measure
$
(1,815
)

$
(1,848
)
 
$
(1,863
)
 
$
(3,663
)
 
$
(3,236
)
 
 
 
 
 
 
 
 
 
 












RealNetworks, Inc. and Subsidiaries
Reconciliation of Net income (loss) from continuing operations to adjusted EBITDA, a non-GAAP measure
(Unaudited)
 
 
2018
 
2017
 
2018
 
2017
 
 
 Q2
 
 Q1
 
 Q2
 
 YTD
 
 YTD
 
 
(in thousands)
 
 
 
 
 
 
 
 
 
 
 
Reconciliation of GAAP Net income (loss) from continuing operations to adjusted EBITDA:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income (loss) from continuing operations
 
$
(6,930
)
 
$
(5,178
)
 
$
(3,779
)
 
$
(12,108
)
 
$
(13,329
)
Income tax expense (benefit)
 
166

 
270

 
360

 
436

 
815

Interest income, net
 
(111
)
 
(87
)
 
(109
)
 
(198
)
 
(237
)
Equity in net loss of Napster
 

 

 
349

 

 
1,097

Acquisitions related intangible asset amortization
 
111

 
92

 
226

 
203

 
449

Depreciation and amortization
 
500

 
528

 
610

 
1,028

 
1,308

Restructuring and other charges
 
187

 
501

 
150

 
688

 
1,714

Stock-based compensation
 
457

 
1,157

 
863

 
1,614

 
2,297

Lease exit and related benefit
 
(129
)
 
(325
)
 

 
(454
)
 

   Adjusted EBITDA, a non-GAAP measure
 
$
(5,749
)

$
(3,042
)
 
$
(1,330
)
 
$
(8,791
)
 
$
(5,886
)