Gaia Reports Third Quarter 2021 Results
Gaia, Inc. (NASDAQ: GAIA) reported a 17% increase in revenues for Q3 2021, totaling $20.4 million, driven by growth in members and average revenue per member. The company achieved an EBITDA of $4.0 million with a 20% margin, marking its fifth consecutive quarter of positive earnings. Paying members rose to 790,500, and cash flows from operations improved by 55% to $5.1 million. Year-to-date revenues increased 22% to $58.7 million, with net income rising to $1.6 million or $0.08 per share.
- Revenues increased 17% to $20.4 million.
- EBITDA improved to $4.0 million with a 20% margin.
- Paying members increased to 790,500.
- Cash flows from operations rose 55% to $5.1 million.
- Year-to-date revenues increased 22% to $58.7 million.
- Net income increased to $1.6 million or $0.08 per share.
- None.
Revenues up
BOULDER, Colo., Nov. 01, 2021 (GLOBE NEWSWIRE) -- Gaia, Inc. (NASDAQ: GAIA), a conscious media and community company, reported financial results for the third quarter ended September 30, 2021.
Highlights
22% revenue growth year to date- Q3 EBITDA of
$4.0 million , with EBITDA margin of20% - Fifth straight quarter of positive earnings and cash flow
“The third quarter of 2021 marks another quarter of disciplined execution against our plan to generate net income and cash flows while driving revenue and member growth,” said Paul Tarell, Gaia’s CFO. “Now that we are consistently generating positive net income and cash flows from operations, we are focused on growing both average revenue per member and the overall member base. Early traction in our efforts to promote our
Third Quarter 2021 Financial Results
Revenues increased
Gross profit in the third quarter increased to
Total operating expenses were
Net income increased to
Cash flows from operations improved
Year to Date 2021 Financial Results
Revenues for the nine months ended September 30, 2021 increased
Gross profit for the nine months ended September 30, 2021 increased to
Total operating expenses were
Net income increased to
Cash flows from operations improved
Conference Call
Date: Monday, November 1, 2021
Time: 4:30 p.m. Eastern time (2:30 p.m. Mountain time)
Toll-free dial-in number: 1-866-248-8441
International dial-in number: 1-323-289-6576
Conference ID: 6551369
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 November 15, 2021.
Toll-free replay number: 1-844-512-2921
International replay number: 1-412-317-6671
Replay ID: 6551369
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 September 30, | For the Nine Months Ended September 30, | |||||||||||||||
| (in thousands, except per share data) | 2021 | 2020 | 2021 | 2020 | ||||||||||||
| (unaudited) | (unaudited) | |||||||||||||||
| Revenues, net | $ | 20,405 | $ | 17,537 | $ | 58,744 | $ | 48,201 | ||||||||
| Cost of revenues | 2,626 | 2,264 | 7,573 | 6,248 | ||||||||||||
| Gross profit | 17,779 | 15,273 | 51,171 | 41,953 | ||||||||||||
| Gross profit margin | 87.1 | % | 87.1 | % | 87.1 | % | 87.0 | % | ||||||||
| Expenses: | ||||||||||||||||
| Selling and operating | 15,544 | 13,479 | 44,820 | 42,354 | ||||||||||||
| Corporate, general and administration | 1,509 | 1,426 | 4,506 | 4,716 | ||||||||||||
| Total operating expenses | 17,053 | 14,905 | 49,326 | 47,070 | ||||||||||||
| Income (loss) from operations | 726 | 368 | 1,845 | (5,117 | ) | |||||||||||
| Interest and other income (expense), net | (79 | ) | 5,946 | (197 | ) | 5,395 | ||||||||||
| Income before income taxes | 647 | 6,314 | 1,648 | 278 | ||||||||||||
| Provision for income taxes | — | — | — | 69 | ||||||||||||
| Net income | $ | 647 | $ | 6,314 | $ | 1,648 | $ | 209 | ||||||||
| Earnings per share: | ||||||||||||||||
| Basic | $ | 0.03 | $ | 0.33 | $ | 0.09 | $ | 0.01 | ||||||||
| Diluted | $ | 0.03 | $ | 0.32 | $ | 0.08 | $ | 0.01 | ||||||||
| Weighted-average shares outstanding: | ||||||||||||||||
| Basic | 19,318 | 19,183 | 19,262 | 18,834 | ||||||||||||
| Diluted | 19,812 | 19,737 | 19,787 | 19,442 | ||||||||||||
| EBITDA* | $ | 4,036 | $ | 3,372 | $ | 11,486 | $ | 3,909 | ||||||||
* See definition and reconciliation below.
GAIA, INC.
Summary of Cash Flows
| For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||
| (in thousands) | 2021 | 2020 | 2021 | 2020 | ||||||||||||
| (unaudited) | (unaudited) | |||||||||||||||
| Net cash provided by (used in): | ||||||||||||||||
| Operating activities | $ | 5,146 | $ | 3,333 | $ | 14,586 | $ | 7,197 | ||||||||
| Investing activities | (4,376 | ) | 9,862 | (13,355 | ) | 2,781 | ||||||||||
| Financing activities | (81 | ) | (12,932 | ) | 592 | (12,751 | ) | |||||||||
| Net change in cash | $ | 689 | $ | 263 | $ | 1,823 | $ | (2,773 | ) | |||||||
Reconciliation of Net Income to EBITDA and Adjusted EBITDA
| For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||
| (in thousands) | 2021 | 2020 | 2021 | 2020 | ||||||||||||
| (unaudited) | (unaudited) | |||||||||||||||
| Net income | $ | 647 | $ | 6,314 | $ | 1,648 | $ | 209 | ||||||||
| Interest expense, net | 79 | 179 | 197 | 730 | ||||||||||||
| Provision for income taxes | — | — | — | 69 | ||||||||||||
| Gain on sale of real estate | — | (6,125 | ) | — | (6,125 | ) | ||||||||||
| Depreciation and amortization expense | 3,310 | 3,004 | 9,641 | 9,026 | ||||||||||||
| EBITDA | 4,036 | 3,372 | 11,486 | 3,909 | ||||||||||||
| Share-based compensation expense | 533 | 336 | 1,236 | 1,864 | ||||||||||||
| Adjusted EBITDA | $ | 4,569 | $ | 3,708 | $ | 12,722 | $ | 5,773 | ||||||||
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 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 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
| September 30, | December 31, | |||||||
| (in thousands, except share and per share data) | 2021 | 2020 | ||||||
| (unaudited) | ||||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash | $ | 14,428 | $ | 12,605 | ||||
| Accounts receivable | 2,589 | 2,024 | ||||||
| Prepaid expenses and other current assets | 1,863 | 1,746 | ||||||
| Total current assets | 18,880 | 16,375 | ||||||
| Media library, software and equipment, net | 42,246 | 39,231 | ||||||
| Right-of-use lease asset, net | 8,061 | 8,622 | ||||||
| Real estate, investment, and other assets, net | 29,199 | 28,500 | ||||||
| Goodwill | 17,289 | 17,289 | ||||||
| Total assets | $ | 115,675 | $ | 110,017 | ||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable, accrued and other liabilities | $ | 9,855 | $ | 8,947 | ||||
| Deferred revenue | 14,130 | 12,376 | ||||||
| Total current liabilities | 23,985 | 21,323 | ||||||
| Long-term mortgage, net | 6,146 | 6,250 | ||||||
| Long-term lease liability | 7,416 | 7,952 | ||||||
| Deferred taxes | 257 | 257 | ||||||
| Total liabilities | 37,804 | 35,782 | ||||||
| Total shareholders' equity | 77,871 | 74,235 | ||||||
| Total liabilities and shareholders' equity | $ | 115,675 | $ | 110,017 | ||||
FAQ
What were Gaia's Q3 2021 revenue figures?
What is Gaia's EBITDA margin for Q3 2021?
How many paying members did Gaia have as of September 30, 2021?
What was Gaia's net income for the first nine months of 2021?
How much did Gaia's cash flows from operations improve in Q3 2021?
