GAIA, INC. “We continue to build on Gaia’s increasing momentum. The member count grew to 806,000 at the end of the year and we expect to finish the first quarter of 2024 at about 838,000, a good milestone toward our 15% revenue growth target for 2024,” said
Gaia CFO
Gaia CEO
Fourth Quarter 2023 Financial Results
Results compare the 2023 fiscal fourth quarter ended
- Revenues for the fourth quarter 2023 increased 6% to
$20.7 million from$19.6 million in the fourth quarter of 2022, primarily driven by the growth of Gaia’s member base. - Member growth increased during the year, growing sequentially by an additional 16 thousand members during the fourth quarter, with the member count ending at 806,000 up from 759,000 on
December 31, 2022 . The Company expects the member growth to further accelerate with continuing increases of Gaia’s ARPU during 2024. - Gross profit in the fourth quarter increased to
$17.7 million from$17.0 in the fourth quarter of 2022. Gross margin was 85.4%, in line with the year. - Net loss was
$(1.8) million or$(0.08) per share as compared to a net loss of$(1.0) million or$(0.05) per share in the year-ago quarter with higher amortization, but operating cash flow improved$2.1 million and free cash flow improved$1.7 million to$1.0 million from ($0.7 million ) during the last year quarter. - The cash balance as of
December 31, 2023 was$7.8 million with an unused$10 million line of credit, compared to net cash of$2.6 million or$11.6 million of cash with$9 million of borrowing on the credit line a year ago.
2023 Financial Results
Results compare the 2023 fiscal full year ended
- Revenue for the year was
$80.4 million as compared to$82.0 million in 2022, as the company was recovering from the post-COVID subscriber contraction experienced industry-wide during the later part of 2022. - Loss for the year was
$(5.6) million or$(0.27) per share, as compared to a loss of$(3.6 million) , or$(0.19) per share for 2022, with increased marketing spend and amortization, however, operating cash flow improved by$4.2 million . - For the year, free cash flow improved by
$8.4 million to$1.1 million from ($7.3 million ), even as the Company increased marketing to 41.1% of revenue from 37.2% in the prior year. The free cash flow was helped by elimination of$5 million in annualized spending finalized in the beginning of the year, which included 36 headcounts added previously to offset reduced efficiency because of work-from-home mandates. - With Gaia’s new CFO, the Company decided to restate the consolidated financial statements for 2022 and the first three quarters of 2023, making some presentation changes to be in line with the industry. None of these changes or the restatement impacts Gaia’s revenue or free cash flow and are already reflected in this release.
- The Company expects member growth to accelerate during 2024 as it is now forecasting to double net member additions from 16,000 in the fourth quarter of 2023 to 32,000 in the first quarter of 2024, finishing the quarter with about 838,000 members, while continuing to generate positive free cash flow.
Conference Call
Date:
Time:
Toll-free dial-in number: 1-877-269-7751
International dial-in number: 1-201-389-0908
Conference ID: 13745317
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
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
Toll-free replay number: 1-844-512-2921
International replay number: 1-412-317-6671
Replay ID: 13745317
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 88% 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. Forward-looking statements include, without limitation: the Company’s plans related to restatement of the financial statements; 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 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, including the coronavirus (COVID-19) pandemic and our response to it; and other risks and uncertainties included in our filings with the
Non-GAAP Measures
In addition to disclosing financial results calculated in accordance with
Company Contact:
Chief Financial Officer
Investors@gaia.com
Investor Relations:
(949) 574-3860
GAIA@gateway-grp.com
Consolidated Balance Sheets (unaudited) | ||||||||
| (in thousands, except share and per share data) | 2023 | 2022* | ||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 7,766 | $ | 11,562 | ||||
| Accounts receivable | 4,111 | 2,955 | ||||||
| Other receivables | 2,191 | 148 | ||||||
| Prepaid expenses and other current assets | 2,015 | 2,508 | ||||||
| Total current assets | 16,083 | 17,173 | ||||||
| Media library, net | 40,125 | 40,075 | ||||||
| Operating right-of-use asset, net | 6,288 | 7,093 | ||||||
| Property and equipment, net | 26,303 | 25,209 | ||||||
| Equity method investment | 6,375 | 6,875 | ||||||
| Investments and other assets, net | 3,156 | 6,810 | ||||||
| 31,943 | 31,943 | |||||||
| Total assets | $ | 130,273 | $ | 135,178 | ||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 12,038 | $ | 7,382 | ||||
| Accrued and other liabilities | 2,599 | 4,973 | ||||||
| Short-term debt | 155 | 149 | ||||||
| Operating lease liability, current portion | 780 | 745 | ||||||
| Deferred revenue | 15,861 | 14,124 | ||||||
| Total current liabilities | 31,433 | 27,373 | ||||||
| Long-term debt, net | 5,801 | 14,958 | ||||||
| Operating lease liability, net of current portion | 5,708 | 6,489 | ||||||
| Deferred taxes, net | 551 | 499 | ||||||
| Total liabilities | 43,493 | 49,319 | ||||||
| Equity: | ||||||||
| Class A common stock, issued, 17,748,374 and 15,406,186 shares outstanding at | 2 | 1 | ||||||
| Class B common stock, | 1 | 1 | ||||||
| Additional paid-in capital | 170,695 | 164,180 | ||||||
| Accumulated deficit | (85,187 | ) | (79,385 | ) | ||||
| Total shareholders' equity | 85,511 | 84,797 | ||||||
| Noncontrolling interests | 1,269 | 1,062 | ||||||
| Total equity | 86,780 | 85,859 | ||||||
| Total liabilities and shareholders' equity | $ | 130,273 | $ | 135,178 | ||||
Consolidated Statements of Operations (unaudited)
| For the Three Months Ended | For the Twelve Months Ended | |||||||||||||||
| (in thousands, except per share data) | 2023 | 2022* | 2023 | 2022* | ||||||||||||
| Revenues, net | $ | 20,714 | $ | 19,577 | $ | 80,423 | $ | 82,035 | ||||||||
| Cost of revenues | 3,034 | 2,603 | 11,629 | 10,915 | ||||||||||||
| Gross profit | 17,680 | 16,974 | 68,794 | 71,120 | ||||||||||||
| Gross margin | 85.4 | % | 86.7 | % | 85.5 | % | 86.7 | % | ||||||||
| Expenses: | ||||||||||||||||
| Selling and operating | 17,694 | 15,958 | 67,156 | 64,155 | ||||||||||||
| Corporate, general and administration | 1,479 | 1,583 | 6,205 | 7,181 | ||||||||||||
| Acquisition costs | — | — | — | 49 | ||||||||||||
| Total operating expenses | 19,173 | 17,541 | 73,361 | 71,385 | ||||||||||||
| Loss from operations | (1,493 | ) | (567 | ) | (4,567 | ) | (265 | ) | ||||||||
| Equity method investment loss | (126 | ) | (122 | ) | (501 | ) | (511 | ) | ||||||||
| Interest and other expense, net | (92 | ) | (96 | ) | (467 | ) | (257 | ) | ||||||||
| — | — | — | (2,000 | ) | ||||||||||||
| Loss before income taxes | (1,711 | ) | (785 | ) | (5,535 | ) | (3,033 | ) | ||||||||
| Provision for income taxes | 60 | 202 | 60 | 202 | ||||||||||||
| Loss from continuing operations | (1,771 | ) | (987 | ) | (5,595 | ) | (3,235 | ) | ||||||||
| Loss from discontinued operations | — | (60 | ) | — | (360 | ) | ||||||||||
| Net loss | $ | (1,771 | ) | $ | (1,047 | ) | $ | (5,595 | ) | $ | (3,595 | ) | ||||
| Net income attributable to noncontrolling interests | $ | 65 | $ | 132 | $ | 207 | $ | 287 | ||||||||
| Net loss attributable to common shareholders | $ | (1,836 | ) | $ | (1,179 | ) | $ | (5,802 | ) | $ | (3,882 | ) | ||||
| Loss per share: | ||||||||||||||||
| Basic | ||||||||||||||||
| Continuing operations | $ | (0.08 | ) | $ | (0.05 | ) | $ | (0.27 | ) | $ | (0.17 | ) | ||||
| Discontinued operations | — | — | — | (0.02 | ) | |||||||||||
| Basic loss per share | $ | (0.08 | ) | $ | (0.05 | ) | $ | (0.27 | ) | $ | (0.19 | ) | ||||
| Diluted | ||||||||||||||||
| Continuing operations | $ | (0.08 | ) | $ | (0.05 | ) | $ | (0.27 | ) | $ | (0.17 | ) | ||||
| Discontinued operations | — | — | — | (0.02 | ) | |||||||||||
| Diluted loss per share | $ | (0.08 | ) | $ | (0.05 | ) | $ | (0.27 | ) | $ | (0.19 | ) | ||||
| Weighted-average shares outstanding: | ||||||||||||||||
| Basic | 23,148 | 20,806 | 21,501 | 20,716 | ||||||||||||
| Diluted | 23,363 | 20,806 | 21,501 | 20,716 | ||||||||||||
*as restated
Condensed Consolidated Summary of Cash Flows (unaudited)
| For the Three Months Ended | For the Twelve Months Ended | |||||||||||||||
| (in thousands) | 2023 | 2022* | 2023 | 2022* | ||||||||||||
| Net cash provided by (used in): | ||||||||||||||||
| Net cash provided by operating activities - continuing operations | $ | 3,184 | $ | 1,149 | $ | 5,869 | $ | 2,040 | ||||||||
| Net cash used in operating activities - discontinued operations | — | (60 | ) | — | (360 | ) | ||||||||||
| Net cash provided by operating activities | 3,184 | 1,089 | 5,869 | 1,680 | ||||||||||||
| Net cash used in investing activities | (2,306 | ) | (1,843 | ) | (5,281 | ) | (9,264 | ) | ||||||||
| Net cash (used in) provided by financing activities | (4,341 | ) | 1,475 | (4,384 | ) | 8,877 | ||||||||||
| Net change in cash | $ | (3,463 | ) | $ | 721 | $ | (3,796 | ) | $ | 1,293 | ||||||
Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow (unaudited)
| For the Three Months Ended | For the Twelve Months Ended | |||||||||||||||
| (in thousands) | 2023 | 2022* | 2023 | 2022* | ||||||||||||
| Net cash provided by operating activities | $ | 3,184 | $ | 1,089 | $ | 5,869 | $ | 1,680 | ||||||||
| Cash paid for interest | 87 | 100 | 481 | 301 | ||||||||||||
| Net cash used in investing activities | (2,306 | ) | (1,843 | ) | (5,281 | ) | (9,264 | ) | ||||||||
| Free cash flow | $ | 965 | $ | (654 | ) | $ | 1,069 | $ | (7,283 | ) | ||||||
*as restated
2024 GlobeNewswire, Inc., source
