Gaia Reports First Quarter 2024 Results
Gaia, Inc. (NASDAQ: GAIA) reported financial results for Q1 2024 with operating cash flows improving by $5.2 million from the year-ago quarter. The company saw its highest single quarter of membership growth since Q1 2021, increasing by 33,000 members. Revenues grew by $2.1 million, reaching $21.7 million, while the gross profit increased to $18.5 million. Net loss improved to $(1.0) million. Gaia also re-branded its premium membership tier to Gaia+ and focused on direct-to-paid campaigns, annual memberships, and the new Gaia+ tier.
Operating cash flows improved by $5.2 million from the year-ago quarter.
Revenues grew by $2.1 million to reach $21.7 million.
Gross profit increased to $18.5 million.
Member count rose by 9% to 839,000.
Net loss improved to $(1.0) million.
Despite improvements, the company still reported a net loss of $(1.0) million.
Free cash flow only improved to $1.0 million from $(0.6) million in the year-ago quarter.
There was a decrease in customer acquisition costs by 10% in Q1 2024.
Insights
BOULDER, Colo., May 06, 2024 (GLOBE NEWSWIRE) -- Gaia, Inc. (NASDAQ: GAIA), a conscious media and community company, reported financial results for the first quarter ended March 31, 2024.
Highlights:
- Operating cash flows for the first quarter improved by
$5.2 million from the year-ago quarter - Fourth consecutive quarter of positive free cash flow
- Highest single quarter of membership growth since Q1 2021
“In the first quarter we experienced a
Gaia CEO James Colquhoun commented: “As we closed the quarter, we continued our trend of executing on cash flow positive growth with improvements in marketing efficiency. We also re-branded our premium membership tier from Events+ to Gaia+ and achieved the highest one-month increase in premium members since the launch of the premium tier in October 2019. Additionally, due to an increased focus on direct-to-paid campaigns, annual memberships, and the new Gaia+ tier, we increased deferred revenue on the balance sheet by
Gaia CFO Ned Preston commented: “During the first quarter, revenues grew by
First Quarter 2024 Financial Results
Revenues for the first quarter grew
Gross profit in the first quarter increased to
Net loss improved to
Operating cash flows for the first quarter improved by
Free cash flow improved by
The cash balance as of March 31, 2024, grew to
Conference Call
Date: Monday, May 6, 2024
Time: 4:30 p.m. Eastern time (2:30 p.m. Mountain time)
Toll-free dial-in number: 1-877-269-7751
International dial-in number: 1-201-389-0908
Conference ID: 13746134
Please call the conference telephone number 5-10 minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact Gateway Group at (949) 574-3860.
The conference call will be broadcast live and available for replay here and via ir.gaia.com.
A telephonic replay of the conference call will be available after 7:30 p.m. Eastern time on the same day through May 27, 2024.
Toll-free replay number: 1-844-512-2921
International replay number: 1-412-317-6671
Replay ID: 13746134
About Gaia
Gaia is a member-supported global video streaming service and community that produces and curates conscious media through four primary channels—Seeking Truth, Transformation, Alternative Healing and Yoga—in four languages (English, Spanish, French and German) to its members in 185 countries. Gaia’s library includes over 10,000 titles, over
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the federal securities laws. All statements other than statements of historical fact are forward looking statements that involve risks and uncertainties. When used in this discussion, we intend the words “anticipate,” “believe,” “contemplate,” “continue,” “could,” “estimate,” “expect,” “future,” “hope,” “intend,” “may,” “might,” “objective,” “ongoing,” “plan,” “potential,” “predict,” “project,” “should,” “strive,” “target,” “will,” “would” and similar expressions as they relate to us to identify such forward-looking statements. Our actual results could differ materially from the results anticipated in these forward-looking statements as a result of certain factors set forth under “Risk Factors” and elsewhere in our filings with the U.S. Securities and Exchange Commission, including in our Annual Report on Form 10-K for the year ended December 31, 2023. Risks and uncertainties that could cause actual results to differ include, without limitation: our ability to attract new members and retain existing members; our ability to compete effectively, including for customer engagement with different modes of entertainment; maintenance and expansion of devise platforms for steaming; fluctuation in customer usage of our service; fluctuations in quarterly operating results; service disruptions; production risks; general economic conditions; future losses; loss of key personnel; price changes; brand reputation; acquisitions; new initiatives we undertake; security and information systems; legal liability for website content; failure of third parties to provide adequate service; future internet-related taxes; our founder’s control of us; litigation; consumer trends; the effect of government regulation and programs; the impact of public health threats, including the coronavirus (COVID-19) pandemic and our response to it; and other risks and uncertainties included in our filings with the Securities and Exchange Commission. We caution you that no forward-looking statement is a guarantee of future performance, and you should not place undue reliance on these forward-looking statements which reflect our views only as of the date of this press release. We undertake no obligation to update any forward-looking information.
Non-GAAP Measures
In addition to disclosing financial results calculated in accordance with United States generally accepted accounting principles (GAAP) in the United States of America, the financial information included in this release contains non-GAAP financial measures, including Free Cash Flow. These non-GAAP measures should not be considered a substitute for, or superior to, financial measures and results calculated in accordance with GAAP, including net income, and reconciliations to GAAP financial statements should be carefully evaluated. Free Cash Flow represents net cash provided by operating activities, adjusted for interest payments, and less capital expenditures. We believe Free Cash Flow is also useful as one of the bases for comparing the Gaia’s performance with its competitors. Although Free Cash Flow and similar measures are frequently used as measures of cash flows generated from operations by other companies, Gaia’s calculation of Free Cash Flow might not necessarily be comparable to such other similarly titled captions of other companies. We believe that both management and investors benefit from referring to these non-GAAP financial measures in assessing our performance and when planning, forecasting and analyzing future periods.
Company Contact:
Ned Preston
Chief Financial Officer
Gaia, Inc.
Investors@gaia.com
Investor Relations:
Gateway Group, Inc.
Cody Slach
(949) 574-3860
GAIA@gateway-grp.com
GAIA, INC.
Condensed Consolidated Balance Sheets
| March 31, | December 31, | |||||||
| (in thousands, except share and per share data) | 2024 | 2023 | ||||||
| (unaudited) | ||||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 8,599 | $ | 7,766 | ||||
| Restricted Cash | 4,000 | — | ||||||
| Accounts receivable | 4,738 | 4,111 | ||||||
| Other receivables | 2,248 | 2,191 | ||||||
| Prepaid expenses and other current assets | 1,875 | 2,015 | ||||||
| Total current assets | 21,460 | 16,083 | ||||||
| Media library, net | 39,296 | 40,125 | ||||||
| Operating right-of-use asset, net | 6,082 | 6,288 | ||||||
| Property and equipment, net | 25,672 | 26,303 | ||||||
| Equity method investment | — | 6,374 | ||||||
| Investments and other assets, net | 9,389 | 3,157 | ||||||
| Goodwill | 31,943 | 31,943 | ||||||
| Total assets | $ | 133,842 | $ | 130,273 | ||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 11,368 | $ | 12,038 | ||||
| Accrued and other liabilities | 5,734 | 2,599 | ||||||
| Long-term debt, current portion | 156 | 155 | ||||||
| Operating lease liability, current portion | 795 | 780 | ||||||
| Deferred revenue | 17,815 | 15,861 | ||||||
| Total current liabilities | 35,868 | 31,433 | ||||||
| Long-term debt, net of current portion | 5,762 | 5,801 | ||||||
| Operating lease liability, net of current portion | 5,503 | 5,708 | ||||||
| Deferred taxes, net | 551 | 551 | ||||||
| Total liabilities | 47,684 | 43,493 | ||||||
| Equity: | ||||||||
| Gaia, Inc. shareholders’ equity: | ||||||||
| Class A common stock, authorized, 17,825,513 and 17,813,179 shares issued, 17,760,708 and 17,748,374 shares outstanding at March 31, 2024 and December 31, 2023, respectively | 2 | 2 | ||||||
| Class B common stock, authorized, 5,400,000 shares issued and outstanding at March 31, 2024 and December 31, 2023, respectively | 1 | 1 | ||||||
| Additional paid-in capital | 171,044 | 170,695 | ||||||
| Accumulated deficit | (86,240 | ) | (85,195 | ) | ||||
| Total shareholders' equity | 84,807 | 85,503 | ||||||
| Noncontrolling interests | 1,351 | 1,277 | ||||||
| Total equity | 86,158 | 86,780 | ||||||
| Total liabilities and shareholders' equity | $ | 133,842 | $ | 130,273 | ||||
GAIA, INC.
Condensed Consolidated Statements of Operations (unaudited)
| For the Three Months Ended March 31, | ||||||||
| (in thousands, except per share data) | 2024 | 2023 | ||||||
| Revenues, net | $ | 21,693 | $ | 19,647 | ||||
| Cost of revenues | 3,168 | 2,773 | ||||||
| Gross profit | 18,525 | 16,874 | ||||||
| Gross margin | 85.4 | % | 85.9 | % | ||||
| Expenses: | ||||||||
| Selling and operating | 17,759 | 16,123 | ||||||
| Corporate, general and administration | 1,629 | 1,773 | ||||||
| Total operating expenses | 19,388 | 17,896 | ||||||
| Loss from operations | (863 | ) | (1,022 | ) | ||||
| Equity method investment loss | — | (125 | ) | |||||
| Interest and other expense, net | (108 | ) | (121 | ) | ||||
| Loss before income taxes | (971 | ) | (1,268 | ) | ||||
| Provision for income taxes | — | — | ||||||
| Net loss | (971 | ) | (1,268 | ) | ||||
| Net income attributable to noncontrolling interests | 74 | 38 | ||||||
| Net loss attributable to common shareholders | $ | (1,045 | ) | $ | (1,306 | ) | ||
| Loss per share: | ||||||||
| Basic | ||||||||
| Continuing operations | $ | (0.05 | ) | $ | (0.06 | ) | ||
| Discontinued operations | $ | — | $ | — | ||||
| Loss per share | $ | (0.05 | ) | $ | (0.06 | ) | ||
| Diluted | ||||||||
| Continuing operations | $ | (0.05 | ) | $ | (0.06 | ) | ||
| Discontinued operations | — | — | ||||||
| Diluted loss per share | $ | (0.05 | ) | $ | (0.06 | ) | ||
| Weighted-average shares outstanding: | ||||||||
| Basic | 23,161 | 20,826 | ||||||
| Diluted | 23,161 | 20,826 | ||||||
GAIA, INC.
Condensed Consolidated Statement of Cash Flows (unaudited)
| For the Three Months Ended March 31, | ||||||||
| (in thousands) | 2024 | 2023 | ||||||
| Net cash provided by (used in): | ||||||||
| Net cash provided by operating activities | 5,936 | 686 | ||||||
| Net cash used in investing activities | (1,073 | ) | (1,418 | ) | ||||
| Net cash (used in) provided by financing activities | (30 | ) | 18 | |||||
| Net change in cash, cash equivalents, and restricted cash | $ | 4,833 | $ | (714 | ) | |||
Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow (unaudited)
| For the Three Months Ended March 31, | ||||||||
| (in thousands) | 2024 | 2023 | ||||||
| Net cash provided by operating activities | $ | 5,936 | $ | 686 | ||||
| Cash paid for interest | 108 | 125 | ||||||
| Net cash used in investing activities | (1,073 | ) | (1,418 | ) | ||||
| Restricted cash | (4,000 | ) | — | |||||
| Free cash flow | $ | 971 | $ | (607 | ) | |||
FAQ
What were Gaia's revenues for the first quarter of 2024?
How much did Gaia's member count increase by in Q1 2024?
What was Gaia's net loss in the first quarter of 2024?
What was the improvement in Gaia's operating cash flows in Q1 2024 compared to the previous year?
What was the cash balance of Gaia as of March 31, 2024?
