Segment Information

12 Months Ended

Dec. 31, 2021

Segment Reporting [Abstract]

Segment Information

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 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 include 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, 2021 and 2020 were as follows (in thousands):

Consumer Media

	2021		2020
Revenue	$	10,301	$	12,581
Cost of revenue	1,816		2,273
Gross profit	8,485		10,308
Operating expenses	7,427		8,889
Operating income (loss)	$	1,058	$	1,419

Mobile Services

	2021		2020
Revenue	$	23,788	$	26,889
Cost of revenue	5,720		6,725
Gross profit	18,068		20,164
Operating expenses	24,299		24,787
Operating income (loss)	$	(6,231)	$	(4,623)

Games

	2021		2020
Revenue	$	24,094	$	28,592
Cost of revenue	6,192		7,451
Gross profit	17,902		21,141
Operating expenses	19,463		19,936
Operating income (loss)	$	(1,561)	$	1,205

 Corporate

	2021		2020
Cost of revenue	$	28	$	16
Operating expenses	14,111		3,009
Operating income (loss)	$	(14,139)	$	(3,025)

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,
	2021		2020
United States	$	36,494	$	43,704
Europe	9,133		9,375
Rest of the World	12,556		14,983
Total	$	58,183	$	68,062

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

	December 31,
	2021		2020
United States	$	14,402	$	18,318
Europe	6,682		7,638
Rest of the World	1,354		1,227
Total long-lived assets	$	22,438	$	27,183