Gaia Reports Second Quarter 2021 Results
Gaia, Inc. reported a robust 20% revenue increase for Q2 2021, reaching $19.4 million. This growth is attributed to rising membership and average revenue per member, with 770,200 paying members by June 30. The company improved its EBITDA margin to 20%, with net income turning positive at $0.6 million or $0.03 per share. Operational efficiencies reduced total expenses as a percentage of revenues, enhancing cash flow from operations by 126% to $4.3 million. Gaia's cash balance increased to $13.7 million.
- 20% revenue growth to $19.4 million.
- Net income improved to $0.6 million or $0.03 per share.
- EBITDA margin increased to 20%.
- Cash flow from operations up 126% to $4.3 million.
- Improved cash balance to $13.7 million.
- None.
Revenues up
BOULDER, Colo., Aug. 02, 2021 (GLOBE NEWSWIRE) -- Gaia, Inc. (NASDAQ: GAIA), a conscious media and community company, reported financial results for the second quarter ended June 30, 2021.
Highlights
20% increase in revenues from the year-ago quarter- Fourth sequential quarter of positive earnings and cash flow
- Improved EBITDA margin to
20%
“The second quarter of 2021 represented another solid quarter of execution on our plan to generate net income and cash flows while driving revenue and member growth,” said Paul Tarell, Gaia’s CFO. “We are looking forward to the second half of the year, when our event lineup at GaiaSphere will be in full swing, which will allow us to promote our
Second Quarter 2021 Financial Results
Revenues in the second quarter increased
Gross profit in the second quarter increased
Total operating expenses improved to
Net income improved by
EBITDA improved to
Cash flows from operations improved to
Conference Call
Date: Monday, August 2, 2021
Time: 4:30 p.m. Eastern time (2:30 p.m. Mountain time)
Toll-free dial-in number: 1-800-437-2398
International dial-in number: 1-323-289-6576
Conference ID: 2686835
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 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 16, 2021.
Toll-free replay number: 1-844-512-2921
International replay number: 1-412-317-6671
Replay ID: 2686835
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—to its members in 185 countries. Gaia’s library includes approximately 8,000 titles, over
Company Contact:
Paul Tarell
Chief Financial Officer
Gaia, Inc.
Investors@gaia.com
Investor Relations:
Gateway Investor Relations
Cody Slach
(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) | 2021 | 2020 | 2021 | 2020 | ||||||||||||
| (unaudited) | (unaudited) | |||||||||||||||
| Revenues, net | $ | 19,443 | $ | 16,153 | $ | 38,339 | $ | 30,664 | ||||||||
| Cost of revenues | 2,509 | 2,083 | 4,947 | 3,984 | ||||||||||||
| Gross profit | 16,934 | 14,070 | 33,392 | 26,680 | ||||||||||||
| Gross profit margin | 87.1 | % | 87.1 | % | 87.1 | % | 87.0 | % | ||||||||
| Expenses: | ||||||||||||||||
| Selling and operating | 14,738 | 14,417 | 29,276 | 28,875 | ||||||||||||
| Corporate, general and administration | 1,501 | 1,873 | 2,997 | 3,290 | ||||||||||||
| Total operating expenses | 16,239 | 16,290 | 32,273 | 32,165 | ||||||||||||
| Income (loss) from operations | 695 | (2,220 | ) | 1,119 | (5,485 | ) | ||||||||||
| Interest and other expense, net | (52 | ) | (305 | ) | (118 | ) | (551 | ) | ||||||||
| Income (loss) before income taxes | 643 | (2,525 | ) | 1,001 | (6,036 | ) | ||||||||||
| Provision for income taxes | — | — | — | 69 | ||||||||||||
| Net income (loss) | $ | 643 | $ | (2,525 | ) | $ | 1,001 | $ | (6,105 | ) | ||||||
| Earnings per share: | ||||||||||||||||
| Basic | $ | 0.03 | $ | (0.13 | ) | $ | 0.05 | $ | (0.33 | ) | ||||||
| Diluted | $ | 0.03 | $ | (0.13 | ) | $ | 0.05 | $ | (0.33 | ) | ||||||
| Weighted-average shares outstanding: | ||||||||||||||||
| Basic | 19,268 | 18,837 | 19,235 | 18,660 | ||||||||||||
| Diluted | 19,810 | 18,837 | 19,786 | 18,660 | ||||||||||||
| EBITDA* | $ | 3,927 | $ | 833 | $ | 7,450 | $ | 537 | ||||||||
* See definition and reconciliation below.
GAIA, INC.
Summary of Cash Flows
| For the Three Months Ended June 30, | For the Six Months Ended June 30, | |||||||||||||||
| (in thousands) | 2021 | 2020 | 2021 | 2020 | ||||||||||||
| (unaudited) | (unaudited) | |||||||||||||||
| Net cash provided by (used in): | ||||||||||||||||
| Operating activities | $ | 4,252 | $ | 1,858 | $ | 9,440 | $ | 3,864 | ||||||||
| Investing activities | (4,205 | ) | (3,480 | ) | (8,979 | ) | (7,081 | ) | ||||||||
| Financing activities | 647 | 61 | 673 | 181 | ||||||||||||
| Net change in cash | $ | 694 | $ | (1,561 | ) | $ | 1,134 | $ | (3,036 | ) | ||||||
Reconciliation of Net Income (Loss) to EBITDA and Adjusted EBITDA
| For the Three Months Ended June 30, | For the Six Months Ended June 30, | |||||||||||||||
| (in thousands) | 2021 | 2020 | 2021 | 2020 | ||||||||||||
| (unaudited) | (unaudited) | |||||||||||||||
| Net income (loss) | $ | 643 | $ | (2,525 | ) | $ | 1,001 | $ | (6,105 | ) | ||||||
| Interest expense, net | 52 | 305 | 118 | 551 | ||||||||||||
| Provision for income taxes | — | — | — | 69 | ||||||||||||
| Depreciation and amortization expense | 3,232 | 3,053 | 6,331 | 6,022 | ||||||||||||
| EBITDA | 3,927 | 833 | 7,450 | 537 | ||||||||||||
| Share-based compensation expense | 90 | 1,063 | 703 | 1,528 | ||||||||||||
| Adjusted EBITDA | $ | 4,017 | $ | 1,896 | $ | 8,153 | $ | 2,065 | ||||||||
EBITDA represents net income (loss) 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
| June 30, | December 31, | |||||||
| (in thousands, except share and per share data) | 2021 | 2020 | ||||||
| (unaudited) | ||||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash | $ | 13,739 | $ | 12,605 | ||||
| Accounts receivable | 2,828 | 2,024 | ||||||
| Prepaid expenses and other current assets | 1,659 | 1,746 | ||||||
| Total current assets | 18,226 | 16,375 | ||||||
| Media library, software and equipment, net | 41,062 | 39,231 | ||||||
| Right-of-use lease asset, net | 8,250 | 8,622 | ||||||
| Real estate, investment, and other assets, net | 29,317 | 28,500 | ||||||
| Goodwill | 17,289 | 17,289 | ||||||
| Total assets | $ | 114,144 | $ | 110,017 | ||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable, accrued and other liabilities | $ | 8,695 | $ | 8,947 | ||||
| Deferred revenue | 14,724 | 12,376 | ||||||
| Total current liabilities | 23,419 | 21,323 | ||||||
| Long-term mortgage, net | 6,181 | 6,250 | ||||||
| Long-term lease liability | 7,596 | 7,952 | ||||||
| Deferred taxes | 257 | 257 | ||||||
| Total liabilities | 37,453 | 35,782 | ||||||
| Total shareholders' equity | 76,691 | 74,235 | ||||||
| Total liabilities and shareholders' equity | $ | 114,144 | $ | 110,017 | ||||
FAQ
What were Gaia's Q2 2021 revenue figures?
How much did Gaia's net income improve in Q2 2021?
What is the EBITDA margin for Gaia in Q2 2021?
How many paying members did Gaia have as of June 30, 2021?
What was Gaia's cash balance at the end of Q2 2021?
