Gaia Reports Second Quarter 2020 Results
Gaia, Inc. (NASDAQ: GAIA) reported significant financial improvements for Q2 2020, with revenues rising 23% to $16.2 million compared to $13.2 million last year. The company achieved $1.9 million in Adjusted EBITDA and a net loss of $2.5 million, improved from $4.5 million in the previous year. Paying members increased to 663,400, with a net addition of 58,300 members during the quarter. Operating expenses rose by 4% to $16.3 million, largely due to a one-time share-based expense. Gaia aims for positive net income and cash flow in Q3 2020.
- Revenues increased by 23% to $16.2 million.
- Adjusted EBITDA improved to $1.9 million.
- Net loss significantly decreased from $4.5 million to $2.5 million.
- Paying members rose to 663,400, with a net addition of 58,300 members.
- Gross profit grew 24% to $14.1 million.
- Operating expenses increased by 4% to $16.3 million.
BOULDER, Colo., Aug. 03, 2020 (GLOBE NEWSWIRE) -- Gaia, Inc. (NASDAQ: GAIA), a conscious media and community company, reported financial results for the second quarter ended June 30, 2020.
Second Quarter 2020 Highlights vs. Same Year-Ago Quarter
23% increase in revenues to$16.2 million .- Generated
$1.9 million in Adjusted EBITDA, an improvement of$3.5 million . - Generated
$1.9 million in cash flow from operations, an improvement of$4.4 million .
“The results for the second quarter represent 18 months of disciplined execution to drive operating efficiencies across the business while balancing growth initiatives and spend discipline,” said Paul Tarell, Gaia’s CFO. “We have continued to benefit from higher member growth due to the success of our exclusive content, smart marketing spend and improved retention, which has allowed Gaia to transition to positive earnings and free cash flows starting in July.”
Second Quarter 2020 Financial Results
Revenues in the second quarter increased
Gross profit in the second quarter increased
Total operating expenses in the second quarter increased
Net loss in the second quarter improved significantly to
Adjusted EBITDA also improved to
Gaia generated cash from operations of
Gaia’s cash conversion cycle has continued to improve, with overall cash used during the quarter of
As of June 30, 2020, Gaia had
Conference Call
The company will hold a conference call today at 4:30 p.m. Eastern time to discuss its second quarter 2020 results.
Date: Monday, August 3, 2020
Time: 4:30 p.m. Eastern time (2:30 p.m. Mountain time)
Toll-free dial-in number: (800) 239-9838
International dial-in number: (323) 794-2551
Conference ID: 3953218
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 August 17, 2020.
Toll-free replay number: (844) 512-2921
International replay number: (412) 317-6671
Replay ID: 3953218
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 June 30, | For the Six Months Ended June 30, | |||||||||||||||
| (in thousands, except per share data) | 2020 | 2019 | 2020 | 2019 | ||||||||||||
| (unaudited) | (unaudited) | |||||||||||||||
| Revenues, net | $ | 16,153 | $ | 13,164 | $ | 30,664 | $ | 25,631 | ||||||||
| Cost of revenues | 2,083 | 1,785 | 3,984 | 3,385 | ||||||||||||
| Gross profit | 14,070 | 11,379 | 26,680 | 22,246 | ||||||||||||
| Expenses: | ||||||||||||||||
| Selling and operating | 14,417 | 14,173 | 28,875 | 29,895 | ||||||||||||
| Corporate, general and administration | 1,873 | 1,493 | 3,290 | 3,086 | ||||||||||||
| Total operating expenses | 16,290 | 15,666 | 32,165 | 32,981 | ||||||||||||
| Loss from operations | (2,220 | ) | (4,287 | ) | (5,485 | ) | (10,735 | ) | ||||||||
| Interest and other income (expense), net | (305 | ) | (196 | ) | (551 | ) | (159 | ) | ||||||||
| Loss before income taxes | (2,525 | ) | (4,483 | ) | (6,036 | ) | (10,894 | ) | ||||||||
| Income tax expense | — | 42 | 69 | 42 | ||||||||||||
| Loss from continuing operations | (2,525 | ) | (4,525 | ) | (6,105 | ) | (10,936 | ) | ||||||||
| Loss from discontinued operations | — | 57 | — | (258 | ) | |||||||||||
| Net loss | $ | (2,525 | ) | $ | (4,468 | ) | $ | (6,105 | ) | $ | (11,194 | ) | ||||
| Loss per share-basic and diluted: | ||||||||||||||||
| Continuing operations | $ | (0.13 | ) | $ | (0.25 | ) | $ | (0.33 | ) | $ | (0.61 | ) | ||||
| Discontinued operations | — | — | - | (0.01 | ) | |||||||||||
| Basic and diluted net loss per share | $ | (0.13 | ) | $ | (0.25 | ) | $ | (0.33 | ) | $ | (0.62 | ) | ||||
| Weighted-average shares outstanding: | ||||||||||||||||
| Basic and diluted | 18,837 | 17,944 | 18,660 | 17,917 | ||||||||||||
| Adjusted EBITDA | $ | 1,896 | $ | (1,574 | ) | $ | 2,065 | $ | (5,523 | ) | ||||||
* See definition and reconciliation on following page.
GAIA, INC.
Summary of Cash Flows
| For the Three Months Ended June 30, | For the Six Months Ended June 30, | |||||||||||||||
| (in thousands) | 2020 | 2019 | 2020 | 2019 | ||||||||||||
| (unaudited) | (unaudited) | |||||||||||||||
| Net cash provided by (used in): | ||||||||||||||||
| Operating activities - continuing operations | $ | 1,858 | $ | (2,557 | ) | $ | 3,864 | $ | (5,317 | ) | ||||||
| Operating activities - discontinued operations | — | 57 | — | 76 | ||||||||||||
| Operating activities | 1,858 | (2,500 | ) | 3,864 | (5,241 | ) | ||||||||||
| Investing activities | (3,480 | ) | (6,414 | ) | (7,081 | ) | (11,338 | ) | ||||||||
| Financing activities | 61 | 4,092 | 181 | 4,092 | ||||||||||||
| Net change in cash | $ | (1,561 | ) | $ | (4,822 | ) | $ | (3,036 | ) | $ | (12,487 | ) | ||||
Reconciliation of Loss from Continuing Operations to EBITDA and Adjusted EBITDA
| For the Three Months Ended June 30, | For the Six Months Ended June 30, | |||||||||||||||
| (in thousands) | 2020 | 2019 | 2020 | 2019 | ||||||||||||
| (unaudited) | (unaudited) | |||||||||||||||
| Net loss | $ | (2,525 | ) | $ | (4,468 | ) | $ | (6,105 | ) | $ | (11,194 | ) | ||||
| Interest expense, net | 305 | 196 | 551 | 159 | ||||||||||||
| Provision for income taxes | — | 42 | 69 | 42 | ||||||||||||
| Depreciation and amortization expense | 3,053 | 2,141 | 6,022 | 4,361 | ||||||||||||
| EBITDA | 833 | (2,089 | ) | 537 | (6,632 | ) | ||||||||||
| Share-based compensation expense | 1,063 | 515 | 1,528 | 1,109 | ||||||||||||
| Adjusted EBITDA | $ | 1,896 | $ | (1,574 | ) | $ | 2,065 | $ | (5,523 | ) | ||||||
EBITDA represents net loss before interest expense, provision for income taxes, 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
| June 30, | December 31, | |||||||
| (in thousands, except share and per share data) | 2020 | 2019 | ||||||
| (unaudited) | ||||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash | $ | 8,458 | $ | 11,494 | ||||
| Accounts receivable | 2,617 | 2,310 | ||||||
| Prepaid expenses and other current assets | 1,767 | 2,443 | ||||||
| Total current assets | 12,842 | 16,247 | ||||||
| Building and land, net | 22,351 | 22,681 | ||||||
| Media library, software and equipment, net | 38,580 | 36,921 | ||||||
| Goodwill | 17,289 | 17,289 | ||||||
| Investments and other assets | 13,117 | 13,034 | ||||||
| Total assets | $ | 104,179 | $ | 106,172 | ||||
| LIABILITIES AND EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable, accrued and other liabilities | $ | 8,099 | $ | 10,594 | ||||
| Deferred revenue | 12,320 | 8,025 | ||||||
| Total current liabilities | 20,419 | 18,619 | ||||||
| Long-term debt | 16,751 | 18,433 | ||||||
| Deferred taxes | 276 | 206 | ||||||
| Total liabilities | 37,446 | 37,258 | ||||||
| Total equity | 66,733 | 68,914 | ||||||
| Total liabilities and equity | $ | 104,179 | $ | 106,172 | ||||
FAQ
What were Gaia's financial results for Q2 2020?
How many paying members did Gaia have as of June 30, 2020?
What is the revenue growth percentage for Gaia in Q2 2020 compared to Q2 2019?
What does Gaia aim to achieve in Q3 2020?
How much did Gaia's net loss improve in Q2 2020?
