Segment Information

12 Months Ended

Dec. 31, 2020


Note 18.			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 games 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 our 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.

Segment results for the years ended December 31, 2020 and 2019 were as follows (in thousands):

Consumer Media


	2020		2019
Revenue	$	12,581	$	13,170
Cost of revenue	2,273		3,031
Gross profit	10,308		10,139
Operating expenses	8,889		11,186
Operating income (loss)	$	1,419	$	(1,047)

Mobile Services


	2020		2019
Revenue	$	26,889	$	27,143
Cost of revenue	6,725		7,500
Gross profit	20,164		19,643
Operating expenses	24,787		29,340
Operating income (loss)	$	(4,623)	$	(9,697)

Games


	2020		2019
Revenue	$	28,592	$	25,489
Cost of revenue	7,451		6,975
Gross profit	21,141		18,514
Operating expenses	19,936		20,220
Operating income (loss)	$	1,205	$	(1,706)

Corporate


	2020		2019
Cost of revenue	$	16	$	(280)
Operating expenses	3,009		14,894
Operating income (loss)	$	(3,025)	$	(14,614)

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):


	Years ended December 31,
	2020		2019
United States	$	43,704	$	39,724
Europe	9,375		10,632
Rest of the World	14,983		15,446
Total	$	68,062	$	65,802

Long-lived assets (consists of equipment, software, leasehold improvements, operating lease assets, and goodwill) by geographic region (in thousands):


	December 31,
	2020		2019
United States	$	18,318	$	20,515
Europe	7,638		7,221
Rest of the World	1,227		1,790
Total long-lived assets	$	27,183	$	29,526