BOULDER, Colo., Aug. 02, 2021 (GLOBE NEWSWIRE) -- Gaia, Inc. (NASDAQ: GAIA), a conscious media and community company, reported financial results for the second quarter ended June 30, 2021.
Highlights
- 20% increase in revenues from the year-ago quarter
- Fourth sequential quarter of positive earnings and cash flow
- Improved EBITDA margin to 20%
“The second quarter of 2021 represented another solid quarter of execution on our plan to generate net income and cash flows while driving revenue and member growth,” said Paul Tarell, Gaia’s CFO. “We are looking forward to the second half of the year, when our event lineup at GaiaSphere will be in full swing, which will allow us to promote our $299 premium subscription tier to current and prospective members.”
Second Quarter 2021 Financial Results
Revenues in the second quarter increased 20% to $19.4 million from $16.2 million in the year-ago quarter. This was primarily due to growth in members and an increase in average revenue per member. Paying members increased to 770,200 as of June 30, 2021.
Gross profit in the second quarter increased 20% to $16.9 million compared to $14.1 million in the year-ago quarter. Gross margin was flat at 87.1%.
Total operating expenses improved to $16.2 million, or 84% of revenues in the second quarter of 2021, compared to $16.3 million, or 101% of revenues, in the year-ago quarter. The significant reduction as a percentage of revenues is due to continued efficiency improvements in fixed operating expenses and the reduction of customer acquisition costs as a percentage of revenue to 40% from 52% in the year-ago quarter.
Net income improved by $3.1 million in the second quarter to $0.6 million or $0.03 per share, from a net loss of $2.5 million or $(0.13) per share in the year ago quarter. As a percentage of revenues, this represents an 18% improvement between periods.
EBITDA improved to $3.9 million, or 20% of revenues, compared to $0.8 million, or 5% of revenues in the year-ago quarter.
Cash flows from operations improved to $4.3 million during the second quarter of 2021 from $1.9 million in the year-ago quarter, an improvement of 126%. Gaia’s cash balance as of June 30, 2021 was $13.7 million, an increase of $1.1 million since December 31, 2020.
Conference Call
Date: Monday, August 2, 2021
Time: 4:30 p.m. Eastern time (2:30 p.m. Mountain time)
Toll-free dial-in number: 1-800-437-2398
International dial-in number: 1-323-289-6576
Conference ID: 2686835
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 August 16, 2021.
Toll-free replay number: 1-844-512-2921
International replay number: 1-412-317-6671
Replay ID: 2686835
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 80% of which is exclusive to Gaia, and approximately 80% of the views are 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.
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 June 30, | For the Six Months Ended June 30, | |||||||||||||||
| (in thousands, except per share data) | 2021 | 2020 | 2021 | 2020 | ||||||||||||
| (unaudited) | (unaudited) | |||||||||||||||
| Revenues, net | $ | 19,443 | $ | 16,153 | $ | 38,339 | $ | 30,664 | ||||||||
| Cost of revenues | 2,509 | 2,083 | 4,947 | 3,984 | ||||||||||||
| Gross profit | 16,934 | 14,070 | 33,392 | 26,680 | ||||||||||||
| Gross profit margin | 87.1 | % | 87.1 | % | 87.1 | % | 87.0 | % | ||||||||
| Expenses: | ||||||||||||||||
| Selling and operating | 14,738 | 14,417 | 29,276 | 28,875 | ||||||||||||
| Corporate, general and administration | 1,501 | 1,873 | 2,997 | 3,290 | ||||||||||||
| Total operating expenses | 16,239 | 16,290 | 32,273 | 32,165 | ||||||||||||
| Income (loss) from operations | 695 | (2,220 | ) | 1,119 | (5,485 | ) | ||||||||||
| Interest and other expense, net | (52 | ) | (305 | ) | (118 | ) | (551 | ) | ||||||||
| Income (loss) before income taxes | 643 | (2,525 | ) | 1,001 | (6,036 | ) | ||||||||||
| Provision for income taxes | — | — | — | 69 | ||||||||||||
| Net income (loss) | $ | 643 | $ | (2,525 | ) | $ | 1,001 | $ | (6,105 | ) | ||||||
| Earnings per share: | ||||||||||||||||
| Basic | $ | 0.03 | $ | (0.13 | ) | $ | 0.05 | $ | (0.33 | ) | ||||||
| Diluted | $ | 0.03 | $ | (0.13 | ) | $ | 0.05 | $ | (0.33 | ) | ||||||
| Weighted-average shares outstanding: | ||||||||||||||||
| Basic | 19,268 | 18,837 | 19,235 | 18,660 | ||||||||||||
| Diluted | 19,810 | 18,837 | 19,786 | 18,660 | ||||||||||||
| EBITDA* | $ | 3,927 | $ | 833 | $ | 7,450 | $ | 537 | ||||||||
* 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) | 2021 | 2020 | 2021 | 2020 | ||||||||||||
| (unaudited) | (unaudited) | |||||||||||||||
| Net cash provided by (used in): | ||||||||||||||||
| Operating activities | $ | 4,252 | $ | 1,858 | $ | 9,440 | $ | 3,864 | ||||||||
| Investing activities | (4,205 | ) | (3,480 | ) | (8,979 | ) | (7,081 | ) | ||||||||
| Financing activities | 647 | 61 | 673 | 181 | ||||||||||||
| Net change in cash | $ | 694 | $ | (1,561 | ) | $ | 1,134 | $ | (3,036 | ) | ||||||
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) | 2021 | 2020 | 2021 | 2020 | ||||||||||||
| (unaudited) | (unaudited) | |||||||||||||||
| Net income (loss) | $ | 643 | $ | (2,525 | ) | $ | 1,001 | $ | (6,105 | ) | ||||||
| Interest expense, net | 52 | 305 | 118 | 551 | ||||||||||||
| Provision for income taxes | — | — | — | 69 | ||||||||||||
| Depreciation and amortization expense | 3,232 | 3,053 | 6,331 | 6,022 | ||||||||||||
| EBITDA | 3,927 | 833 | 7,450 | 537 | ||||||||||||
| Share-based compensation expense | 90 | 1,063 | 703 | 1,528 | ||||||||||||
| Adjusted EBITDA | $ | 4,017 | $ | 1,896 | $ | 8,153 | $ | 2,065 | ||||||||
EBITDA represents net income (loss) 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 (loss) 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) | 2021 | 2020 | ||||||
| (unaudited) | ||||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash | $ | 13,739 | $ | 12,605 | ||||
| Accounts receivable | 2,828 | 2,024 | ||||||
| Prepaid expenses and other current assets | 1,659 | 1,746 | ||||||
| Total current assets | 18,226 | 16,375 | ||||||
| Media library, software and equipment, net | 41,062 | 39,231 | ||||||
| Right-of-use lease asset, net | 8,250 | 8,622 | ||||||
| Real estate, investment, and other assets, net | 29,317 | 28,500 | ||||||
| Goodwill | 17,289 | 17,289 | ||||||
| Total assets | $ | 114,144 | $ | 110,017 | ||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable, accrued and other liabilities | $ | 8,695 | $ | 8,947 | ||||
| Deferred revenue | 14,724 | 12,376 | ||||||
| Total current liabilities | 23,419 | 21,323 | ||||||
| Long-term mortgage, net | 6,181 | 6,250 | ||||||
| Long-term lease liability | 7,596 | 7,952 | ||||||
| Deferred taxes | 257 | 257 | ||||||
| Total liabilities | 37,453 | 35,782 | ||||||
| Total shareholders' equity | 76,691 | 74,235 | ||||||
| Total liabilities and shareholders' equity | $ | 114,144 | $ | 110,017 | ||||