Gaia Reports Second Quarter 2024 Results
Gaia, Inc. (NASDAQ: GAIA) reported 11% revenue growth and 10% member growth in Q2 2024 compared to the previous year. The company achieved positive free cash flow for the fifth consecutive quarter, with operating cash flows improving by $2.6 million in the first half of 2024. Gaia's subsidiary raised $12 million from outside investors, partly used to acquire an exclusive worldwide license for Igniton health technology. The company launched the Gaia Marketplace and implemented a price increase for new members in July. Q2 2024 revenues grew to $22.08 million, with member count increasing to 850,000. Despite non-recurring expenses, Gaia maintained a net loss of $(2.2) million, or $(0.09) per share, unchanged from the previous year.
Gaia, Inc. (NASDAQ: GAIA) ha riportato una crescita dei ricavi dell'11% e una crescita del 10% dei membri nel secondo trimestre del 2024 rispetto all'anno precedente. L'azienda ha raggiunto un flusso di cassa libero positivo per il quinto trimestre consecutivo, con i flussi di cassa operativi che migliorano di 2,6 milioni di dollari nella prima metà del 2024. La sussidiaria di Gaia ha raccolto 12 milioni di dollari da investitori esterni, utilizzati in parte per acquisire una licenza esclusiva mondiale per la tecnologia sanitaria Igniton. L'azienda ha lanciato il Gaia Marketplace e ha implementato un aumento dei prezzi per i nuovi membri a luglio. I ricavi del secondo trimestre del 2024 sono cresciuti fino a 22,08 milioni di dollari, con il numero di membri che è aumentato a 850.000. Nonostante le spese non ricorrenti, Gaia ha mantenuto una perdita netta di $(2,2) milioni, ovvero $(0,09) per azione, invariata rispetto all'anno precedente.
Gaia, Inc. (NASDAQ: GAIA) reportó un crecimiento de ingresos del 11% y un crecimiento del 10% en miembros en el segundo trimestre de 2024 en comparación con el año anterior. La compañía logró un flujo de caja libre positivo por quinto trimestre consecutivo, con flujos de caja operativos que mejoraron en 2.6 millones de dólares en la primera mitad de 2024. La subsidiaria de Gaia recaudó 12 millones de dólares de inversores externos, utilizados en parte para adquirir una licencia mundial exclusiva para la tecnología de salud Igniton. La compañía lanzó el Gaia Marketplace e implementó un incremento de precios para nuevos miembros en julio. Los ingresos del segundo trimestre de 2024 crecieron hasta 22,08 millones de dólares, con un aumento en el número de miembros a 850,000. A pesar de los gastos no recurrentes, Gaia mantuvo una pérdida neta de $(2.2) millones, o $(0.09) por acción, sin cambios con respecto al año anterior.
Gaia, Inc. (NASDAQ: GAIA)는 2024년 2분기 동안 전년 대비 11%의 수익 성장과 10%의 회원 성장을 보고했습니다. 이 회사는 2024년 상반기 동안 운영 현금 흐름이 260만 달러 증가하여 5분기 연속 긍정적인 자유 현금 흐름을 달성했습니다. Gaia의 자회사는 외부 투자자로부터 1200만 달러를 마련했으며, 일부는 Igniton 건강 기술에 대한 독점적 세계 라이센스를 인수하는 데 사용되었습니다. 이 회사는 Gaia Marketplace를 출시하고 7월에 신규 회원에 대한 가격 인상을 시행했습니다. 2024년 2분기 매출은 2208만 달러로 증가하고 회원 수는 85만으로 늘어났습니다. 비경상적 비용에도 불구하고 Gaia는 순손실을 $(220만)으로 유지했으며, 주당 $(0.09)으로 작년과 동일합니다.
Gaia, Inc. (NASDAQ: GAIA) a rapporté une croissance des revenus de 11% et une croissance de 10% des membres au deuxième trimestre 2024 par rapport à l'année précédente. L'entreprise a réalisé un flux de trésorerie libre positif pour le cinquième trimestre consécutif, avec des flux de trésorerie opérationnels améliorés de 2,6 millions de dollars au premier semestre 2024. La filiale de Gaia a levé 12 millions de dollars auprès d'investisseurs externes, utilisés en partie pour acquérir une licence mondiale exclusive pour la technologie de santé Igniton. L'entreprise a lancé le Gaia Marketplace et a mis en œuvre une augmentation des prix pour les nouveaux membres en juillet. Les revenus du deuxième trimestre 2024 ont atteint 22,08 millions de dollars, avec un nombre de membres augmentant à 850 000. Malgré des charges non récurrentes, Gaia a maintenu une perte nette de $(2,2) millions, soit $(0,09) par action, inchangée par rapport à l'année précédente.
Gaia, Inc. (NASDAQ: GAIA) meldete ein Umsatzwachstum von 11% und ein Mitgliederwachstum von 10% im 2. Quartal 2024 im Vergleich zum Vorjahr. Das Unternehmen erzielte im fünften aufeinander folgenden Quartal einen positiven freien Cashflow, wobei sich die operativen Cashflows im ersten Halbjahr 2024 um 2,6 Millionen Dollar verbesserten. Die Tochtergesellschaft von Gaia sammelte 12 Millionen Dollar von externen Investoren, die teilweise zur Akquisition einer exklusiven weltweiten Lizenz für die Igniton-Gesundheitstechnologie verwendet wurden. Das Unternehmen startete den Gaia Marketplace und führte im Juli eine Preiserhöhung für neue Mitglieder durch. Die Einnahmen im 2. Quartal 2024 stiegen auf 22,08 Millionen Dollar, während die Mitgliederzahl auf 850.000 anstieg. Trotz einmaliger Aufwendungen blieb Gaia mit einem Nettoverlust von $(2,2) Millionen bzw. $(0,09) pro Aktie unverändert im Vergleich zum Vorjahr.
- Revenue growth of 11% year-over-year to $22.08 million in Q2 2024
- Member count increased by 10% to 850,000 as of June 30, 2024
- Positive free cash flow for the fifth consecutive quarter
- Operating cash flows improved by $2.6 million in the first half of 2024
- Gaia subsidiary raised $12 million from outside investors
- Launch of Gaia Marketplace to introduce an alternative revenue stream
- Implementation of price increase for new members expected to positively impact revenue
- Net loss of $(2.2) million, or $(0.09) per share in Q2 2024
- Incurred meaningful non-recurring expenses related to Igniton and corporate administrative expenses
Insights
Gaia's Q2 2024 results show mixed signals. On the positive side, revenue grew
The launch of Gaia Marketplace and recent price increases for new members could potentially boost ARPU and revenue growth in H2 2024. The
Gaia's strategic moves in Q2 2024 reflect a focus on diversifying revenue streams and improving profitability. The launch of Gaia Marketplace to the entire member base could enhance community engagement and introduce a new revenue source. This, coupled with the price increase for new members, suggests a shift towards monetizing their existing user base more effectively.
The
Gaia's investment in Igniton's health technology is intriguing. The "concentrated quasi-particles transmitted by the sun" technology for improving cognition, memory and longevity sounds innovative but requires further scientific validation. While this could potentially differentiate Gaia in the competitive streaming market, it's essential to approach such claims cautiously.
The company's focus on improving marketing efficiency and positive cash flow generation is commendable in the current tech landscape. The launch of Gaia Marketplace aligns with trends in community-driven platforms and could enhance user engagement. However, the success of these initiatives will depend on seamless technology integration and user adoption, which should be closely monitored in the coming quarters.
BOULDER, Colo., Aug. 05, 2024 (GLOBE NEWSWIRE) -- Gaia, Inc. (NASDAQ: GAIA), a conscious media and community company, reported financial results for the second quarter ended June 30, 2024.
Highlights:
- Revenue growth of
11% and member growth of10% from the year-ago quarter. - Operating cash flows for the first half of 2024 improved by
$2.6 million and free cash flow improved by$2.0 million from the same period in 2023. - Gaia subsidiary completed transactions raising
$12 million .
“During the second quarter, which is our seasonally slowest, we grew revenue
Gaia CEO James Colquhoun commented: "We continued our trend of executing on cash flow positive growth with notable improvements in marketing efficiency. Today, we are also excited to officially announce the launch of the Gaia Marketplace to our entire member base. This initiative not only strengthens our community engagement but also introduces an alternative revenue stream to the Gaia business. Additionally, we have also implemented a price increase for new members, starting in July, which we expect to positively impact our revenue by the end of the year. The timing was moved from Q2 to Q3 to strategically align with our third-party partners, ensuring minimal disruption to our members, which resulted in a slight impact on our second quarter revenue."
Gaia CFO Ned Preston commented: “Operating cash flows for the first six months finished at
Second Quarter 2024 Financial Results
Revenues for the second quarter grew
Gross profit in the second quarter increased
Including the non-recurring expenses, net loss was
In the last six months both revenue and member growth were stable at over
Conference Call
Date: Monday, August 5, 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: 13747669
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 19, 2024.
Toll-free replay number: 1-844-512-2921
International replay number: 1-412-317-6671
Replay ID: 13747669
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 device platforms for streaming; 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; our ability to remediate the material weaknesses in our internal control over financial reporting and technical accounting; 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 generally accepted accounting principles in the United States of America (GAAP), 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 | ||||||||
| June 30, | December 31, | |||||||
| (in thousands, except share and per share data) | 2024 | 2023 | ||||||
| (unaudited) | ||||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 5,459 | $ | 7,766 | ||||
| Accounts receivable | 4,806 | 4,111 | ||||||
| Other receivables | 2,903 | 2,191 | ||||||
| Prepaid expenses and other current assets | 2,468 | 2,015 | ||||||
| Total current assets | 15,636 | 16,083 | ||||||
| Media library, net | 39,125 | 40,125 | ||||||
| Operating right-of-use asset, net | 5,875 | 6,288 | ||||||
| Property and equipment, net | 25,282 | 26,303 | ||||||
| Equity method investment | — | 6,374 | ||||||
| Technology license, net | 15,954 | — | ||||||
| Investments and other assets, net | 8,301 | 3,157 | ||||||
| Goodwill | 31,943 | 31,943 | ||||||
| Total assets | $ | 142,116 | $ | 130,273 | ||||
| LIABILITIES AND EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 14,132 | $ | 12,038 | ||||
| Accrued and other liabilities | 1,957 | 2,599 | ||||||
| Long-term debt, current portion | 158 | 155 | ||||||
| Operating lease liability, current portion | 809 | 780 | ||||||
| Deferred revenue | 17,737 | 15,861 | ||||||
| Total current liabilities | 34,793 | 31,433 | ||||||
| Long-term debt, net of current portion | 5,721 | 5,801 | ||||||
| Operating lease liability, net of current portion | 5,296 | 5,708 | ||||||
| Deferred taxes, net | 551 | 551 | ||||||
| Total liabilities | 46,361 | 43,493 | ||||||
| Commitments and Contingencies | ||||||||
| Shareholders’ equity: | ||||||||
| Class A common stock, | 2 | 2 | ||||||
| Class B common stock, | 1 | 1 | ||||||
| Additional paid-in capital | 170,562 | 170,695 | ||||||
| Accumulated deficit | (88,433 | ) | (85,195 | ) | ||||
| Total Gaia, Inc. shareholders’ equity | 82,132 | 85,503 | ||||||
| Noncontrolling interests | 13,623 | 1,277 | ||||||
| Total equity | 95,755 | 86,780 | ||||||
| Total liabilities and equity | $ | 142,116 | $ | 130,273 | ||||
| GAIA, INC. Condensed Consolidated Statements of Operations (unaudited) | ||||||||||||||||
| For the Three Months Ended June 30, | For the Six Months Ended June 30, | |||||||||||||||
| (in thousands, except per share data) | 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Revenues, net | $ | 22,081 | $ | 19,839 | $ | 43,774 | $ | 39,486 | ||||||||
| Cost of revenues | 3,415 | 2,839 | 6,583 | 5,612 | ||||||||||||
| Gross profit | 18,666 | 17,000 | 37,191 | 33,874 | ||||||||||||
| Operating Expenses: | ||||||||||||||||
| Selling and operating | 18,697 | 17,085 | 36,456 | 33,208 | ||||||||||||
| Corporate, general and administration | 1,988 | 1,520 | 3,617 | 3,293 | ||||||||||||
| Total operating expenses | 20,685 | 18,605 | 40,073 | 36,501 | ||||||||||||
| Loss from operations | (2,019 | ) | (1,605 | ) | (2,882 | ) | (2,627 | ) | ||||||||
| Equity method investment loss | — | (125 | ) | — | (250 | ) | ||||||||||
| Interest and other expense, net | (144 | ) | (113 | ) | (252 | ) | (234 | ) | ||||||||
| Loss before income taxes | (2,163 | ) | (1,843 | ) | (3,134 | ) | (3,111 | ) | ||||||||
| Provision for income taxes | — | — | — | — | ||||||||||||
| Net loss | (2,163 | ) | (1,843 | ) | (3,134 | ) | (3,111 | ) | ||||||||
| Net income attributable to noncontrolling interests | 30 | 45 | 104 | 83 | ||||||||||||
| Net loss attributable to common shareholders | $ | (2,193 | ) | $ | (1,888 | ) | $ | (3,238 | ) | $ | (3,194 | ) | ||||
| Loss per share: | ||||||||||||||||
| Basic and Diluted | ||||||||||||||||
| Continuing operations (attributable to common shareholders) | $ | (0.09 | ) | $ | (0.09 | ) | $ | (0.14 | ) | $ | (0.15 | ) | ||||
| Basic and Diluted loss per share | $ | (0.09 | ) | $ | (0.09 | ) | $ | (0.14 | ) | $ | (0.15 | ) | ||||
| Weighted-average shares outstanding: | ||||||||||||||||
| Basic | 23,372 | 20,874 | 23,267 | 20,850 | ||||||||||||
| Diluted | 23,372 | 20,874 | 23,267 | 20,850 | ||||||||||||
| GAIA, INC. Condensed Consolidated Statement of Cash Flows (unaudited) | ||||||||||||||||
| For the Three Months Ended June 30, | For the Six Months Ended June 30, | |||||||||||||||
| (in thousands) | 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Net cash provided by (used in): | ||||||||||||||||
| Net cash (used in) provided by operating activities | (2,081 | ) | 584 | 3,855 | 1,270 | |||||||||||
| Net cash used in investing activities | (11,447 | ) | (491 | ) | (12,520 | ) | (1,909 | ) | ||||||||
| Net cash provided by (used in) financing activities | 6,388 | (62 | ) | 6,358 | (44 | ) | ||||||||||
| Net change in cash, cash equivalents, and restricted cash | $ | (7,140 | ) | $ | 31 | $ | (2,307 | ) | $ | (683 | ) | |||||
| Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow (unaudited) | ||||||||||||||||
| For the Three Months Ended June 30, | For the Six Months Ended June 30, | |||||||||||||||
| (in thousands) | 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Net cash (used in) provided by operating activities | $ | (2,081 | ) | $ | 584 | $ | 3,855 | $ | 1,270 | |||||||
| Cash paid for interest | 154 | 128 | 262 | 253 | ||||||||||||
| Net cash used in investing activities | (11,447 | ) | (491 | ) | (12,520 | ) | (1,909 | ) | ||||||||
| Purchase of technology license | 10,000 | — | 10,000 | — | ||||||||||||
| Adjustment from investment held in restricted cash | 4,035 | 4,035 | ||||||||||||||
| Restricted cash | — | — | (4,000 | ) | — | |||||||||||
| Free cash flow | $ | 661 | $ | 221 | $ | 1,632 | $ | (386 | ) | |||||||
FAQ
What was Gaia's revenue growth in Q2 2024?
How many members did Gaia have as of June 30, 2024?
What was Gaia's net loss in Q2 2024?
What new initiative did Gaia launch to enhance revenue streams?
How much did Gaia's subsidiary raise from outside investors?
