Gaia, Inc. (NASDAQ: GAIA), a conscious media and community company,
reported financial results for the second quarter ended June 30,
2023.
“In the second quarter of 2023 we experienced another sequential
increase in revenue and member count while returning to positive
cash flow generation,” said Jirka Rysavy, Gaia’s CEO. “Our
annualized gross profit per employee in the second quarter grew to
over $610,000, reflecting our operating efficiency, which was
brought on by the cost improvements undertaken in the first
quarter. Our ARPU, which had steady annual improvements since 2019,
should be further supplemented with the launch of the Gaia
Marketplace, which we are rolling out to select members in our
network.”
Gaia CFO Ned Preston commented: “The initiatives implemented
over the past nine months to attract and retain our members have
continued in the second quarter. We continue to focus on growing
revenues in a cost-effective manner, while also generating cash
flows from operations in excess of our reinvestment in content and
other capex that attracts and retains high lifetime value
members.”
Second Quarter 2023 Financial Results
Revenues for the second quarter were $19.8 million, another
sequential increase. Member count growth continued in the second
quarter of 2023 during which the company saw an additional 8,000
members join the Gaia platform, ending the period with 774,500
members as of June 30, 2023. Revenues were still down 4% compared
to the year ago quarter, due to the post-COVID subscriber
contraction experienced industry-wide during 2022.
Gross profit in the second quarter decreased to $17.0 million
compared to $18.0 million in the year-ago quarter primarily due to
lower revenues. Gross margins decreased to 85.7% from 86.7% in the
year ago quarter primarily due to increased content
amortization.
Total operating expenses increased to $18.6 million from $17.7
million in the year-ago quarter, including the end of contracts and
related expenses incurred as a result of the company’s 20% cut in
staff that was completed during the first quarter.
Net loss was $1.7 million, or $(0.08) per share, compared to net
income of $0.1 million, or $0.00 per share, in the year-ago
quarter, but the company returned to net cash flow generation.
Gaia’s cash balance as of June 30, 2023, was $10.9 million.
Conference Call
Date: Monday, July 31, 2023Time: 4:30 p.m. Eastern time (2:30
p.m. Mountain time)Toll-free dial-in number:
1-877-269-7751International dial-in number:
1-201-389-0908Conference ID: 13739670
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 14,
2023.
Toll-free replay number: 1-844-512-2921International replay
number: 1-412-317-6671Replay ID: 13739670
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 85% of which is exclusive to
Gaia, and approximately 75% of viewership is generated by content
produced or owned by Gaia. Gaia is available on Apple TV, iOS,
Android, Roku, Chromecast, and sold through Amazon Prime Video and
Comcast Xfinity. For more information about Gaia, visit
www.gaia.com.
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, 2022. 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 devise platforms for steaming;
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,
including the coronavirus (COVID-19) pandemic and our response to
it; 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 United States generally accepted
accounting principles (GAAP), the financial information included in
this release contains non-GAAP financial measures, including EBITDA
and Adjusted EBITDA. 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.
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 measures of net income,
as that term is defined under GAAP, and should not be considered as
an alternative to net income or 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.
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. EBITDA and Adjusted EBITDA are key performance measures
management uses to assess Gaia’s operating performance and to
facilitate internal comparisons to our historical performance. We
believe EBITDA and Adjusted EBITDA are useful metrics to investors,
enabling them to better assess Gaia’s operating performance in the
context of current period results and provide for better
comparability with Gaia’s historically disclosed EBITDA and
Adjusted EBITDA, as well as allowing greater transparency with
respect to the key metrics used by management in its financial and
operational decision-making. Additionally, investors and the
analyst community use these non-GAAP financial measures to help
them analyze the health of our business.
Company Contact:Ned PrestonChief Financial
OfficerGaia, Inc.Investors@gaia.com
Investor Relations:Gateway Group, Inc.Cody
Slach(949) 574-3860GAIA@gateway-grp.com
GAIA, INC.Condensed Consolidated
Balance Sheets
|
|
June 30, |
|
|
December 31, |
|
(in thousands, except share and per share
data) |
|
2023 |
|
|
2022 |
|
|
|
|
|
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
Cash |
|
$ |
10,879 |
|
|
$ |
11,562 |
|
Accounts receivable |
|
|
3,620 |
|
|
|
2,955 |
|
Prepaid expenses and other current assets |
|
|
2,730 |
|
|
|
2,656 |
|
Total current assets |
|
|
17,229 |
|
|
|
17,173 |
|
Media library, software and
equipment, net |
|
|
51,198 |
|
|
|
51,115 |
|
Right-of-use lease asset,
net |
|
|
6,694 |
|
|
|
7,093 |
|
Real estate, investment and other
assets, net |
|
|
30,569 |
|
|
|
30,979 |
|
Goodwill |
|
|
31,943 |
|
|
|
31,943 |
|
Total assets |
|
$ |
137,633 |
|
|
$ |
138,303 |
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
Accounts payable, accrued and other liabilities |
|
$ |
12,384 |
|
|
$ |
12,355 |
|
Short-term debt and lease liability |
|
|
911 |
|
|
|
894 |
|
Deferred revenue |
|
|
15,476 |
|
|
|
14,124 |
|
Total current liabilities |
|
|
28,771 |
|
|
|
27,373 |
|
Long-term debt, net |
|
|
14,881 |
|
|
|
14,958 |
|
Long-term lease liability |
|
|
6,105 |
|
|
|
6,489 |
|
Deferred taxes |
|
|
499 |
|
|
|
499 |
|
Total liabilities |
|
|
50,256 |
|
|
|
49,319 |
|
Total shareholders' equity |
|
|
87,377 |
|
|
|
88,984 |
|
Total liabilities and shareholders' equity |
|
$ |
137,633 |
|
|
$ |
138,303 |
|
|
|
|
|
|
|
|
|
|
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) |
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
|
|
|
|
|
|
|
Revenues, net |
|
$ |
19,839 |
|
|
$ |
20,720 |
|
|
$ |
39,486 |
|
|
$ |
42,551 |
|
Cost of revenues |
|
|
2,839 |
|
|
|
2,759 |
|
|
|
5,612 |
|
|
|
5,664 |
|
Gross profit |
|
|
17,000 |
|
|
|
17,961 |
|
|
|
33,874 |
|
|
|
36,887 |
|
Gross profit margin |
|
|
85.7 |
% |
|
|
86.7 |
% |
|
|
85.8 |
% |
|
|
86.7 |
% |
Expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling and operating |
|
|
17,085 |
|
|
|
15,869 |
|
|
|
33,208 |
|
|
|
32,654 |
|
Corporate, general and administration |
|
|
1,520 |
|
|
|
1,794 |
|
|
|
3,293 |
|
|
|
3,579 |
|
Acquisition costs |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
49 |
|
Total operating expenses |
|
|
18,605 |
|
|
|
17,663 |
|
|
|
36,501 |
|
|
|
36,282 |
|
Income (loss) from
operations |
|
|
(1,605 |
) |
|
|
298 |
|
|
|
(2,627 |
) |
|
|
605 |
|
Interest and other expense,
net |
|
|
(113 |
) |
|
|
(50 |
) |
|
|
(234 |
) |
|
|
(110 |
) |
Income (loss) before income
taxes |
|
|
(1,718 |
) |
|
|
248 |
|
|
|
(2,861 |
) |
|
|
495 |
|
Provision for (benefit from)
income taxes |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Income (loss) from continuing
operations |
|
|
(1,718 |
) |
|
|
248 |
|
|
|
(2,861 |
) |
|
|
495 |
|
Loss from discontinued
operations |
|
|
— |
|
|
|
(132 |
) |
|
|
— |
|
|
|
(293 |
) |
Net income (loss) |
|
$ |
(1,718 |
) |
|
$ |
116 |
|
|
$ |
(2,861 |
) |
|
$ |
202 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing operations |
|
$ |
(0.08 |
) |
|
$ |
0.01 |
|
|
$ |
(0.14 |
) |
|
$ |
0.02 |
|
Discontinued operations |
|
|
— |
|
|
|
(0.01 |
) |
|
|
— |
|
|
|
(0.01 |
) |
Basic earnings (loss) per
share |
|
$ |
(0.08 |
) |
|
$ |
— |
|
|
$ |
(0.14 |
) |
|
$ |
0.01 |
|
Diluted |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing operations |
|
$ |
(0.08 |
) |
|
$ |
0.01 |
|
|
$ |
(0.14 |
) |
|
$ |
0.02 |
|
Discontinued operations |
|
|
— |
|
|
|
(0.01 |
) |
|
|
— |
|
|
|
(0.01 |
) |
Diluted earnings (loss) per
share |
|
$ |
(0.08 |
) |
|
$ |
— |
|
|
$ |
(0.14 |
) |
|
$ |
0.01 |
|
Weighted-average shares
outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
20,874 |
|
|
|
20,788 |
|
|
|
20,850 |
|
|
|
20,627 |
|
Diluted |
|
|
20,874 |
|
|
|
20,795 |
|
|
|
20,850 |
|
|
|
20,795 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA* |
|
$ |
2,612 |
|
|
$ |
4,163 |
|
|
$ |
5,747 |
|
|
$ |
8,216 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* See reconciliation below.GAIA,
INC.Summary of Cash Flows
|
|
For the Three Months Ended June 30, |
|
|
For the Six Months Ended June 30, |
|
(in thousands) |
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
|
|
|
|
|
|
|
Net cash provided by (used in): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating activities - continuing operations |
|
$ |
3,342 |
|
|
$ |
2,524 |
|
|
$ |
6,480 |
|
|
$ |
6,688 |
|
Operating activities - discontinued operations |
|
|
— |
|
|
|
(132 |
) |
|
|
— |
|
|
|
(293 |
) |
Investing activities |
|
|
(3,249 |
) |
|
|
(4,591 |
) |
|
|
(7,119 |
) |
|
|
(10,419 |
) |
Financing activities |
|
|
(62 |
) |
|
|
(4 |
) |
|
|
(44 |
) |
|
|
(50 |
) |
Net change in cash |
|
$ |
31 |
|
|
$ |
(2,203 |
) |
|
$ |
(683 |
) |
|
$ |
(4,074 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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) |
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
|
|
|
|
|
|
|
Net income (loss) |
|
$ |
(1,718 |
) |
|
$ |
116 |
|
|
$ |
(2,861 |
) |
|
$ |
202 |
|
Interest expense, net |
|
|
113 |
|
|
|
50 |
|
|
|
234 |
|
|
|
110 |
|
Depreciation and amortization expense |
|
|
4,217 |
|
|
|
3,997 |
|
|
|
8,374 |
|
|
|
7,904 |
|
EBITDA |
|
|
2,612 |
|
|
|
4,163 |
|
|
|
5,747 |
|
|
|
8,216 |
|
Acquisition costs |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
49 |
|
Share-based compensation expense |
|
|
461 |
|
|
|
390 |
|
|
|
543 |
|
|
|
930 |
|
Discontinued operations |
|
|
— |
|
|
|
(132 |
) |
|
|
— |
|
|
|
(293 |
) |
Adjusted EBITDA |
|
$ |
3,073 |
|
|
$ |
4,421 |
|
|
$ |
6,290 |
|
|
$ |
8,902 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gaia (NASDAQ:GAIA)
Graphique Historique de l'Action
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Gaia (NASDAQ:GAIA)
Graphique Historique de l'Action
De Sept 2023 à Sept 2024