Gaia Reports Second Quarter 2022 Results
Gaia, Inc. (NASDAQ: GAIA) reported its Q2 2022 financial results, marking the eighth consecutive quarter of positive earnings and **EBITDA**. Revenues rose 7% to **$20.7 million**, with a member count of **792,000**. Despite a slight decrease in gross margin to **86.7%**, gross profit grew to **$18.0 million**. EBITDA improved to **$4.2 million**, maintaining margins over **20%**. However, net income declined to **$0.1 million** from **$0.6 million** year-over-year. Cash flows from operations were **$2.5 million**, and the cash balance stood at **$6.2 million** as of June 30, 2022.
- Eighth consecutive quarter of positive earnings and EBITDA.
- Revenues increased by 7% to $20.7 million.
- Gross profit rose to $18.0 million.
- EBITDA improved to $4.2 million with margins over 20%.
- Membership increased to 792,000.
- Net income decreased to $0.1 million from $0.6 million year-over-year.
- Gross margin slightly decreased to 86.7% due to increased content amortization.
- Total operating expenses increased to $17.7 million, or 85% of revenues.
Eighth Consecutive Quarter of Positive Earnings and EBITDA
BOULDER, Colo., Aug. 01, 2022 (GLOBE NEWSWIRE) -- Gaia, Inc. (NASDAQ: GAIA), a conscious media and community company, reported financial results for the second quarter ended June 30, 2022.
Highlights
- Established technology independence and began operating on Gaia owned hardware
- Eighth consecutive quarter of positive earnings and EBITDA, with Q2 EBITDA margins over
20%
“The spring marked a return to the seasonal patterns we have historically seen in our new member acquisition trends,” said Paul Tarell, Gaia’s CFO. “This resulted in less quarterly member additions since the pandemic began in March of 2020. Despite this shift we continued our financial discipline by delivering strong EBITDA margins while maintaining profitability. With the completion of our 18-month project to enable technology independence and ongoing financial discipline we remain well-positioned to achieve the long-term vision of our company.”
First Quarter 2022 Financial Results
Revenues increased
Gross profit in the second quarter increased to
Total operating expenses were
EBITDA improved to
Net income from continuing operations was
Cash flows from operations was
Conference Call
Date: Monday, August 1, 2022
Time: 4:30 p.m. Eastern time (2:30 p.m. Mountain time)
Toll-free dial-in number: 1-888-220-8451
International dial-in number: 1-323-794-2588
Conference ID: 2614556
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 August 15, 2022.
Toll-free replay number: 1-844-512-2921
International replay number: 1-412-317-6671
Replay ID: 2614556
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,
Company Contact:
Paul Tarell
Chief Financial Officer
Gaia, Inc.
Investors@gaia.com
Investor Relations:
Gateway Group, Inc.
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) | 2022 | 2021 | 2022 | 2021 | ||||||||||||
| Revenues, net | $ | 20,720 | $ | 19,443 | $ | 42,551 | $ | 38,339 | ||||||||
| Cost of revenues | 2,759 | 2,509 | 5,664 | 4,947 | ||||||||||||
| Gross profit | 17,961 | 16,934 | 36,887 | 33,392 | ||||||||||||
| Gross profit margin | 86.7 | % | 87.1 | % | 86.7 | % | 87.1 | % | ||||||||
| Expenses: | ||||||||||||||||
| Selling and operating | 15,869 | 14,738 | 32,654 | 29,276 | ||||||||||||
| Corporate, general and administration | 1,794 | 1,501 | 3,579 | 2,997 | ||||||||||||
| Acquisition costs | — | — | 49 | — | ||||||||||||
| Total operating expenses | 17,663 | 16,239 | 36,282 | 32,273 | ||||||||||||
| Income from operations | 298 | 695 | 605 | 1,119 | ||||||||||||
| Interest and other expense, net | (50 | ) | (52 | ) | (110 | ) | (118 | ) | ||||||||
| Income before income taxes | 248 | 643 | 495 | 1,001 | ||||||||||||
| Provision for (benefit from) income taxes | — | — | — | — | ||||||||||||
| Income from continuing operations | 248 | 643 | 495 | 1,001 | ||||||||||||
| Loss from discontinued operations | (132 | ) | — | (293 | ) | — | ||||||||||
| Net income | $ | 116 | $ | 643 | $ | 202 | $ | 1,001 | ||||||||
| Earnings per share: | ||||||||||||||||
| Basic | ||||||||||||||||
| Continuing operations | $ | 0.01 | $ | 0.03 | $ | 0.02 | $ | 0.05 | ||||||||
| Discontinued operations | (0.01 | ) | — | (0.01 | ) | — | ||||||||||
| Basic earnings per share | $ | — | $ | 0.03 | $ | 0.01 | $ | 0.05 | ||||||||
| Diluted | ||||||||||||||||
| Continuing operations | $ | 0.01 | $ | 0.03 | $ | 0.02 | $ | 0.05 | ||||||||
| Discontinued operations | (0.01 | ) | — | (0.01 | ) | — | ||||||||||
| Diluted earnings per share | $ | — | $ | 0.03 | $ | 0.01 | $ | 0.05 | ||||||||
| Weighted-average shares outstanding: | ||||||||||||||||
| Basic | 20,788 | 19,268 | 20,627 | 19,235 | ||||||||||||
| Diluted | 20,795 | 19,810 | 20,795 | 19,786 | ||||||||||||
| EBITDA* | $ | 4,163 | $ | 3,927 | $ | 8,216 | $ | 7,450 | ||||||||
* 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) | 2022 | 2021 | 2022 | 2021 | ||||||||||||
| Net cash provided by (used in): | ||||||||||||||||
| Operating activities - continuing operations | $ | 2,523 | $ | 4,252 | $ | 6,687 | $ | 9,440 | ||||||||
| Operating activities - discontinued operations | 454 | — | 293 | — | ||||||||||||
| Investing activities | (4,591 | ) | (4,205 | ) | (10,419 | ) | (8,979 | ) | ||||||||
| Financing activities | (3 | ) | 647 | (49 | ) | 673 | ||||||||||
| Net change in cash | $ | (1,617 | ) | $ | 694 | $ | (3,488 | ) | $ | 1,134 | ||||||
| Reconciliation of Net Income to EBITDA and Adjusted EBITDA | ||||||||||||||||
| For the Three Months Ended June 30, | For the Six Months Ended June 30, | |||||||||||||||
| (in thousands) | 2022 | 2021 | 2022 | 2021 | ||||||||||||
| Net income | $ | 116 | $ | 643 | $ | 202 | $ | 1,001 | ||||||||
| Interest expense, net | 50 | 52 | 110 | 118 | ||||||||||||
| Provision for (benefit from) income taxes | — | — | — | — | ||||||||||||
| Depreciation and amortization expense | 3,997 | 3,232 | 7,904 | 6,331 | ||||||||||||
| EBITDA | 4,163 | 3,927 | 8,216 | 7,450 | ||||||||||||
| Acquisition costs | — | — | 49 | — | ||||||||||||
| Share-based compensation expense | 389 | 90 | 929 | 703 | ||||||||||||
| Discontinued operations | (132 | ) | — | (293 | ) | — | ||||||||||
| Adjusted EBITDA | $ | 4,420 | $ | 4,017 | $ | 8,901 | $ | 8,153 | ||||||||
EBITDA represents net income before interest expense, provision for income taxes, other income, depreciation and amortization. Adjusted EBITDA is defined as EBITDA further adjusted to remove acquisition costs, share-based compensation expense, and the results of discontinued operations. 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 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) | 2022 | 2021 | ||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash | $ | 6,195 | $ | 10,269 | ||||
| Accounts receivable | 2,972 | 2,728 | ||||||
| Prepaid expenses and other current assets | 2,278 | 1,986 | ||||||
| Total current assets | 11,445 | 14,983 | ||||||
| Media library, software and equipment, net | 52,618 | 50,558 | ||||||
| Right-of-use lease asset, net | 7,486 | 7,871 | ||||||
| Real estate, investment and other assets, net | 31,002 | 31,394 | ||||||
| Goodwill | 28,870 | 28,870 | ||||||
| Total assets | $ | 131,421 | $ | 133,676 | ||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable, accrued and other liabilities | $ | 11,604 | $ | 14,962 | ||||
| Deferred revenue | 15,218 | 14,847 | ||||||
| Total current liabilities | 26,822 | 29,809 | ||||||
| Long-term mortgage, net | 6,035 | 6,109 | ||||||
| Long-term lease liability | 6,865 | 7,234 | ||||||
| Deferred taxes | 309 | 309 | ||||||
| Total liabilities | 40,031 | 43,461 | ||||||
| Total shareholders' equity | 91,390 | 90,215 | ||||||
| Total liabilities and shareholders' equity | $ | 131,421 | $ | 133,676 | ||||
FAQ
What were Gaia's Q2 2022 earnings results?
How much did Gaia's revenue increase in Q2 2022?
What is Gaia's EBITDA margin for Q2 2022?
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What was the cash balance reported by Gaia at the end of Q2 2022?
