Gaia Reports Fourth Quarter and Full Year 2020 Results
Gaia, Inc. (NASDAQ: GAIA) reported a strong financial performance for Q4 and the full year 2020, with revenues rising 27% to $18.6 million compared to Q4 2019. The company added 129,000 members, closing the year with 728,000 paying members. Net income improved to $0.3 million or $0.02 per share, reversing a loss from the previous year. Operating expenses decreased significantly, now 84% of revenues. Overall, 2020 revenues increased 24% to $66.8 million, with cash generated from operations reaching $11.7 million.
- 27% revenue growth in Q4 to $18.6 million.
- Net income of $0.3 million, improved from a net loss of $2.8 million year-over-year.
- Cash balance increased by $3.9 million to $12.6 million.
- 129,000 new paying members added during the year, totaling 728,000.
- None.
Fourth Quarter Revenues up
BOULDER, Colo., March 01, 2021 (GLOBE NEWSWIRE) -- Gaia, Inc. (NASDAQ: GAIA), a conscious media and community company, reported financial results for the fourth quarter and full year ended December 31, 2020.
Highlights
27% increase in revenues from the year-ago quarter- Second sequential quarter of positive earnings and cash flow
- Added 129,000 members during the year, ending with 728,000 paying members
“We had a very successful year in 2020, generating net income and cash flows while maintaining our revenue growth rate over
Fourth Quarter 2020 Financial Results
Revenues in the fourth quarter increased
Gross profit in the fourth quarter increased
Total operating expenses were
Net income in the fourth quarter was
EBITDA improved to
Gaia generated cash flows from operations in excess of cash used in investing activities of
2020 Financial Results
Revenues in 2020 increased
Gross profit in 2020 increased
Total operating expenses in 2020 were
Net income in 2020 was
EBITDA improved
Cash generated from operations was
Conference Call
The company will hold a conference call today at 4:30 p.m. Eastern time to discuss its fourth quarter and full year 2020 results.
Date: Monday, March 1, 2021
Time: 4:30 p.m. Eastern time (2:30 p.m. Mountain time)
Toll-free dial-in number: 1-866-548-4713
International dial-in number: 1-323-794-2093
Conference ID: 1665604
Please call the conference telephone number five 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 Investor Relations 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 March 15, 2021.
Toll-free replay number: 1-844-512-2921
International replay number: 1-412-317-6671
Replay ID: 1665604
About Gaia
Gaia is a global video streaming service and community that provides curated conscious media in four primary channels—Seeking Truth, Transformation, Alternative Healing and Yoga—to its subscribers in 185 countries with approximately 8,000 titles. Over
Forward-Looking Statements
This press release includes forward-looking statements relating to matters that are not historical facts. Forward-looking statements may be identified by the use of words such as “expect,” “believe,” “will,” or comparable terminology or by discussions of strategy. While Gaia believes its assumptions and expectations underlying forward-looking statements are reasonable, there can be no assurance that actual results will not be materially different. Risks and uncertainties that could cause materially different results include, among others, operating losses, general economic conditions, competition, changing consumer preferences, acquisitions, new initiatives we undertake, costs of acquiring new subscribers, subscriber retention rates, and other risks and uncertainties included in Gaia’s filings with the Securities and Exchange Commission. Gaia assumes no duty to update any forward-looking statements.
Contacts
Paul Tarell
Gaia, Inc.
(303) 222-3330
Paul.Tarell@gaia.com
Cody Slach
Gateway Investor Relations
(949) 574-3860
GAIA@gatewayir.com
| GAIA, INC. Condensed Consolidated Statements of Operations | ||||||||||||||||
| For the Three Months Ended December 31, | For the Year Ended December 31, | |||||||||||||||
| (in thousands, except per share data) | 2020 | 2019 | 2020 | 2019 | ||||||||||||
| (unaudited) | ||||||||||||||||
| Revenues, net | $ | 18,626 | $ | 14,688 | $ | 66,827 | $ | 53,979 | ||||||||
| Cost of revenues | 2,403 | 1,925 | 8,651 | 7,111 | ||||||||||||
| Gross profit | 16,223 | 12,763 | 58,176 | 46,868 | ||||||||||||
| Gross profit margin | 87.1 | % | 86.9 | % | 87.1 | % | 86.8 | % | ||||||||
| Expenses: | ||||||||||||||||
| Selling and operating | 14,583 | 14,078 | 56,937 | 58,292 | ||||||||||||
| Corporate, general and administration | 1,151 | 1,254 | 5,867 | 5,780 | ||||||||||||
| Total operating expenses | 15,734 | 15,332 | 62,804 | 64,072 | ||||||||||||
| Income (loss) from operations | 489 | (2,569 | ) | (4,628 | ) | (17,204 | ) | |||||||||
| Interest and other income (expense), net | (68 | ) | (243 | ) | 5,327 | (643 | ) | |||||||||
| Income (loss) before income taxes | 421 | (2,812 | ) | 699 | (17,847 | ) | ||||||||||
| Provision for income taxes | 111 | — | 180 | 45 | ||||||||||||
| Income (loss) from continuing operations | 310 | (2,812 | ) | 519 | (17,892 | ) | ||||||||||
| Loss from discontinued operations | — | — | — | (258 | ) | |||||||||||
| Net income (loss) | $ | 310 | $ | (2,812 | ) | $ | 519 | $ | (18,150 | ) | ||||||
| Earnings per share: | ||||||||||||||||
| Basic: | ||||||||||||||||
| Continuing operations | $ | 0.02 | $ | (0.15 | ) | $ | 0.03 | $ | (0.99 | ) | ||||||
| Discontinued operations | — | — | — | (0.01 | ) | |||||||||||
| Basic net income (loss) per share | $ | 0.02 | $ | (0.15 | ) | $ | 0.03 | $ | (1.00 | ) | ||||||
| Diluted: | ||||||||||||||||
| Continuing operations | $ | 0.02 | $ | (0.15 | ) | $ | 0.03 | $ | (0.99 | ) | ||||||
| Discontinued operations | — | — | — | (0.01 | ) | |||||||||||
| Diluted net income (loss) per share | $ | 0.02 | $ | (0.15 | ) | $ | 0.03 | $ | (1.00 | ) | ||||||
| Weighted-average shares outstanding: | ||||||||||||||||
| Basic | 19,183 | 18,402 | 18,921 | 18,160 | ||||||||||||
| Diluted | 19,603 | 18,402 | 19,305 | 18,160 | ||||||||||||
| EBITDA* | $ | 3,505 | $ | 177 | $ | 7,414 | $ | (7,609 | ) | |||||||
* See definition and reconciliation below.
| GAIA, INC. Summary of Cash Flows | ||||||||||||||||
| For the Three Months Ended December 31, | For the Year Ended December 31, | |||||||||||||||
| (in thousands) | 2020 | 2019 | 2020 | 2019 | ||||||||||||
| (unaudited) | ||||||||||||||||
| Net cash provided by (used in): | ||||||||||||||||
| Operating activities - continuing operations | $ | 4,453 | $ | 3,346 | $ | 11,650 | $ | (2,650 | ) | |||||||
| Operating activities - discontinued operations | — | — | — | 76 | ||||||||||||
| Operating activities | 4,453 | 3,346 | 11,650 | (2,574 | ) | |||||||||||
| Investing activities | (2,957 | ) | (3,786 | ) | (176 | ) | (20,275 | ) | ||||||||
| Financing activities | 2,388 | 287 | (10,363 | ) | 4,379 | |||||||||||
| Net change in cash | $ | 3,884 | $ | (153 | ) | $ | 1,111 | $ | (18,470 | ) | ||||||
Reconciliation of Income (loss) from Continuing Operations to EBITDA and Adjusted EBITDA
| For the Three Months Ended December 31, | For the Year Ended December 31, | |||||||||||||||
| (in thousands) | 2020 | 2019 | 2020 | 2019 | ||||||||||||
| (unaudited) | ||||||||||||||||
| Income (loss) from continuing operations | $ | 310 | $ | (2,812 | ) | $ | 519 | $ | (17,892 | ) | ||||||
| Interest expense, net | 68 | 243 | 798 | 643 | ||||||||||||
| Provision for income taxes | 111 | — | 180 | 45 | ||||||||||||
| Gain on sale of real estate | — | — | (6,125 | ) | — | |||||||||||
| Depreciation and amortization expense | 3,016 | 2,746 | 12,042 | 9,595 | ||||||||||||
| EBITDA | 3,505 | 177 | 7,414 | (7,609 | ) | |||||||||||
| Share-based compensation expense | 474 | 215 | 2,338 | 1,812 | ||||||||||||
| Adjusted EBITDA | $ | 3,979 | $ | 392 | $ | 9,752 | $ | (5,797 | ) | |||||||
EBITDA represents income (loss) from continuing activities before interest expense, provision for income taxes, other income, depreciation and amortization. Adjusted EBITDA is defined as EBITDA further adjusted to remove share-based compensation expense. EBITDA and Adjusted EBITDA do not represent net income, as that term is defined under GAAP, and should not be considered as an alternative to net income (loss) as an indicator of our operating performance.
Additionally, EBITDA and Adjusted EBITDA are not intended to be measures of free cash flow available for management or discretionary use as such measures do not consider certain cash requirements such as capital expenditures, tax payments and debt service requirements. EBITDA and Adjusted EBITDA as presented herein are not necessarily comparable to similarly titled measures.
| GAIA, INC. Condensed Consolidated Balance Sheets | ||||||||
| December 31, | December 31, | |||||||
| (in thousands, except share and per share data) | 2020 | 2019 | ||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash | $ | 12,605 | $ | 11,494 | ||||
| Accounts receivable | 2,024 | 2,310 | ||||||
| Prepaid expenses and other current assets | 1,746 | 2,443 | ||||||
| Total current assets | 16,375 | 16,247 | ||||||
| Media library, software and equipment, net | 39,231 | 36,921 | ||||||
| Right-of-use lease asset, net | 8,622 | — | ||||||
| Investment, real estate and other assets | 28,500 | 35,715 | ||||||
| Goodwill | 17,289 | 17,289 | ||||||
| Total assets | $ | 110,017 | $ | 106,172 | ||||
| LIABILITIES AND EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable, accrued and other liabilities | $ | 8,947 | $ | 10,594 | ||||
| Deferred revenue | 12,376 | 8,025 | ||||||
| Total current liabilities | 21,323 | 18,619 | ||||||
| Long-term mortgage, net | 6,250 | 18,433 | ||||||
| Long-term lease liability | 7,952 | — | ||||||
| Deferred taxes | 257 | 206 | ||||||
| Total liabilities | 35,782 | 37,258 | ||||||
| Total equity | 74,235 | 68,914 | ||||||
| Total liabilities and equity | $ | 110,017 | $ | 106,172 | ||||
FAQ
What were Gaia's Q4 2020 revenue results?
How did Gaia perform financially in 2020?
How many paying members did Gaia have at the end of 2020?
What improvements did Gaia see in operating expenses in Q4 2020?
What was Gaia's cash flow situation in Q4 2020?
