“In the second quarter of 2023 we experienced another sequential increase in revenue and member count while returning to positive cash flow generation,” said
Gaia CFO
Second Quarter 2023 Financial Results
Revenues for the second quarter were
Gross profit in the second quarter decreased to
Total operating expenses increased to
Net loss was
Gaia’s cash balance as of
Conference Call
Date:
Time:
Toll-free dial-in number: 1-877-269-7751
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Conference ID: 13739670
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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
Non-GAAP Measures
In addition to disclosing financial results calculated in accordance with
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:
Chief Financial Officer
Investors@gaia.com
Investor Relations:
(949) 574-3860
GAIA@gateway-grp.com
Condensed Consolidated Balance Sheets
(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 | ||||||
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 | ||||
Condensed Consolidated Statements of Operations
For the Three Months Ended | For the Six Months Ended | |||||||||||||||
(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.
Summary of Cash Flows
For the Three Months Ended | For the Six Months Ended | |||||||||||||||
(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 | For the Six Months Ended | |||||||||||||||
(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 | ||||||||
Source:
2023 GlobeNewswire, Inc., source