RealNetworks : June 2021 Investor Presentation

Investor Presentation | June 2021

1	© 2021 RealNetworks, Inc. | Nasdaq: RNWK

Safe Harbor Statement

This presentation contains forward-looking statements that involve risks and uncertainties, including statements relating to our current expectations regarding our future growth, profitability, and market position, our financial condition and liquidity, our strategic focus and initiatives, product plans and agreements with partners. All statements contained in this presentation that do not relate to matters of historical fact should be considered forward-looking statements. These statements reflect our expectations as of today, and actual results may differ materially from the results predicted. Factors that could cause actual results for RealNetworks, on a consolidated basis, to differ from the results predicted include: our ability to realize operating efficiencies, growth and other benefits from the implementation of our growth initiatives and restructuring efforts; cash usage and conservation, and the pursuit of additional funding sources; successful monetization of our products and services; competitive risks; issues with the use of AI; potential outcomes and effects of claims and legal proceedings; risks associated with key customer or strategic relationships and business acquisitions and dispositions; challenges caused by the COVID-19 pandemic; disruptions in the global financial markets; volatility of our stock price; material asset impairment; continued declines in subscription revenue; difficulty recruiting and retaining key personnel; regulatory, tax, accounting, and cross-border risks; and risks related to our governance structure. More information about potential risk factors that could affect our business and financial results is included in RealNetworks' latest annual report on Form 10-K for year ended December 31, 2020, 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 our financial statements and forward-looking financial guidance requires us 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. RealNetworks assumes no obligation to update any forward-looking statements or information, which are in effect as of their respective dates.

SAFR™, Kontxt™, RealPlayer®, GameHouse®, RealTimes®, and other trademarks of ours are used throughout this presentation.

2	© 2021 RealNetworks, Inc. | Nasdaq: RNWK

Statement Regarding Use of Non-GAAP Measures

This presentation includes certain financial measures not presented in accordance with generally accepted accounting principles in the United States ("GAAP"), including Adjusted EBITDA, which are used by management for purposes of: supplementing the financial results and forecasts reported to the Company's board of directors; evaluating the Company's operating performance; managing and comparing performance internally across the Company's businesses and externally against the Company's peers; establishing internal operating budgets; and evaluating and valuing potential acquisition candidates, allocating financial resources, and internal planning and forecasting, and for business strategy purposes, and which have certain limitations, and should not be construed as alternatives to financial measures determined in accordance with GAAP. Adjusted EBITDA consists of GAAP net income (loss) including noncontrolling interests and excludes the impact of the following: interest income and interest expense; income tax expense; (gain) loss on equity and other investments, net; foreign currency (gain) loss; depreciation and amortization; fair value adjustments to contingent consideration liability; restructuring and other charges; and stock-based compensation. The non-GAAP measures as defined by us may not be comparable to similar non-GAAP measures presented by other companies. Our presentation of such measures, which may include adjustments to exclude unusual or non-recurring items, should not be construed as an inference that our future results will be unaffected by other unusual or non-recurring items.

3	© 2021 RealNetworks, Inc. | Nasdaq: RNWK

Key Investment Highlights

Why Now?

Strategic transformation from traditional digital media company to an AI powered products and solutions provider is well underway

Significant momentum with ~150% growth in AI related revenue in 2020 accessing new markets

Proprietary data mountain generated from 25+ year history in telecom and media and strong talent pool driving AI and Machine Learning innovation

Foundation businesses funding key AI growth initiatives while continuing to enhance data assets

Highly experienced management team comprised of industry leaders with several new additions cementing AI domain and technical leadership

4	© 2021 RealNetworks, Inc. | Nasdaq: RNWK

Real's Transformation

1995		2002
	Helix DNA
RealAudio brings	1998	transcodes media
streaming audio to	into multiple
the web	RealJukebox lets	formats
The streaming	users download	Ringback Tones
media category is	and manage digital	enhance the
born	music	mobile experience

2015

RealTimes uses AI to
automate the creation of	2018
sharable videos from photo
libraries	SAFR computer
GameHouse Original Stories
vision platform offers
brings unique narrative
advanced AI to
games to engage and
improve secure access
entertain
and convenience

2020

Rhapsody/Napster sold to AIM-listed MelodyVR Group

1997	2000	2003
RealVideo brings	First video	Rhapsody is the
mainstream TV to	streaming	first music
the internet	subscription	subscription
	service	service to stream
		music from the top
		five labels

2013

RealPlayer Cloud lets users move, watch, and share video content

2018

Kontxt AI gives mobile carriers class-of-service message handling

2018

Gamehouse Launches Free- to-Play (F2P) games

4 years of Machine Learning based AI development built on top of 25+ years of Digital Media and Telecom Innovation

5	© 2021 RealNetworks, Inc. | Nasdaq: RNWK