Earnings (Loss) Per Share

9 Months Ended

Sep. 30, 2020


Note 10			Income (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 September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Net loss from continuing operations attributable to RealNetworks	$	(3,231)	$	(5,203)	$	(10,890)	$	(10,517)
Net loss from discontinued operations attributable to RealNetworks	(7)		(765)		(2,102)		(3,120)
Net loss attributable to RealNetworks	$	(3,238)	$	(5,968)	$	(12,992)	$	(13,637)

Weighted average common shares outstanding used to compute basic EPS	38,270		38,062		38,247		37,944
Dilutive effect of stock based awards	—		—		—		—
Weighted average common shares outstanding used to compute diluted EPS	38,270		38,062		38,247		37,944

Net loss per share attributable to RealNetworks- Basic:
Continuing operations	$	(0.08)	$	(0.14)	$	(0.28)	$	(0.28)
Discontinued operations	—		(0.02)		(0.06)		(0.08)
Total net loss per share - Basic	$	(0.08)	$	(0.16)	$	(0.34)	$	(0.36)
Net loss per share attributable to RealNetworks- Diluted:
Continuing operations	$	(0.08)	$	(0.14)	$	(0.28)	$	(0.28)
Discontinued operations	—		(0.02)		(0.06)		(0.08)
Total net loss per share - Diluted	$	(0.08)	$	(0.16)	$	(0.34)	$	(0.36)

During the quarter and nine months ended September 30, 2020, 6.7 million and 6.9 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 quarter and nine months ended September 30, 2019, 8.0 million and 7.6 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.

In February 2020, Mr. Glaser, Chairman of the Board and Chief Executive Officer of RealNetworks, invested approximately $10.0 million in RealNetworks in exchange for the issuance to him of 8,064,516 shares of Series B Preferred Stock. The Series B Preferred Stock is convertible into common stock on a one-to-one basis subject to the limitation described in Note 13 Related Party Transactions. During the quarter and nine months ended September 30, 2020, these shares were also excluded from the calculation of diluted EPS because of their antidilutive effect.