Press Releases

Gaia Reports Full Year 2021 Results

2021 Revenues up 19% with 19% EBITDA Margin

BOULDER, Colo., Feb. 28, 2022 (GLOBE NEWSWIRE) -- Gaia, Inc. (NASDAQ: GAIA), a conscious media and community company, reported financial results for the fourth quarter and full year ended December 31, 2021.

Highlights

  • Generated positive operating income for the first full year since the launch of Gaia’s streaming business
  • 19% revenue growth in 2021, ending the year with 821,000 members
  • Sixth consecutive quarter of positive earnings and double-digit revenue growth

“Our first year with annual operating income represents an important milestone for Gaia,” said Jirka Rysavy, Gaia’s Chairman and CEO. “We are now in position to expand more aggressively internationally, leveraging our existing operating infrastructure and worldwide rights to virtually all of our content library.”

A summary of selected financial metrics since 2018, when Gaia made the decision to focus on becoming profitable and self-sustaining, are included below:

    2021     2020     2019     2018  
Revenues, net   $ 79,573     $ 66,827     $ 53,979     $ 41,997  
Average monthly revenue per member   $ 8.60     $ 8.46     $ 7.95     $ 7.78  
Customer acquisition costs as a percentage of revenues     39 %     47 %     56 %     110 %
Other operating expenses as a percentage of revenues     45 %     47 %     63 %     64 %
Income (loss) from operations   $ 1,985     $ (4,628 )   $ (17,847 )   $ (36,412 )
EBITDA   $ 15,130     $ 7,414     $ (7,609 )   $ (29,477 )
EBITDA Margin     19 %     11 %     -14 %     -70 %

Paul Tarell, Gaia’s CFO commented: “Despite a quarter impacted by elevated customer acquisition costs industry-wide, we grew full-year revenues by 19% while remaining profitable. We also completed the acquisition of Yoga International in late December with the integration progressing smoothly. As a leader in consciousness-expanding media, Yoga International shares our passion for empowering its members’ personal growth. Looking to 2022, we expect this acquisition to help drive annual revenue growth similar to this year while we continue to maintain profitability.”

Fourth Quarter 2021 Financial Results

Revenues increased 12% to $20.8 million from $18.6 million in the year-ago quarter. This was primarily due to growth in members and an increase in average revenue per member. Member count increased to 821,000 as of December 31, 2021.

Gross profit in the fourth quarter increased to $17.9 million compared to $16.2 million in the year-ago quarter. Gross margin was down to 85.8% from 87.1% in the year ago quarter primarily as a result of increased content amortization.

Total operating expenses were $17.7 million or 85% of revenues, which includes $0.4 million in one-time transaction related expenses for the Yoga International acquisition, compared to $15.7 million or 84% of revenues in the year-ago quarter. Including the $0.4 million in acquisition costs, EBITDA improved slightly to $3.6 million compared to $3.5 million in the year ago quarter.

Net income was $2.1 million or $0.10 per share compared to $0.3 million or $0.02 per share in the year ago quarter.

Cash flows from operations improved 40% to $6.3 million from $4.5 million in the year-ago quarter. Gaia’s cash balance as of December 31, 2021, was $10.3 million, even after the use of $6.5 million for the acquisition of Yoga International and a French language content library during the quarter. Gaia’s cash balance as of December 31, 2020 was $12.6 million.

2021 Financial Results

Revenues in 2021 increased 19% to $79.6 million from $66.8 million.

Gross profit for 2021 increased to $69.0 million compared to $58.2 million. Gross margin was 86.8%, reflecting increased content amortization as we have scaled our content investment to support our larger member base during 2021.

Total operating expenses were $67.1 million or 84% of revenues for 2021 compared to $62.8 million or 94% of revenues in the prior period. EBITDA improved to $15.1 million, which reflects a 60% flow through of the incremental revenues generated in 2021 compared to the prior year.

Income from operations for 2021 improved to $2.0 million from a loss of $4.6 million in 2020, marking the first year generating income since launching our streaming business.

Net income increased to $3.7 million or $0.19 per share for 2021 compared to $0.5 million or $0.03 per share in the prior period which includes a $6.1 million gain on the sale of a portion of Gaia’s corporate campus in September 2020.

Cash flows from operations improved 79% to $20.9 million during 2021 compared to $11.7 million in the prior period.

Conference Call

Date: Monday, February 28, 2022
Time: 4:30 p.m. Eastern time (2:30 p.m. Mountain time)
Toll-free dial-in number: 1-888-204-4368
International dial-in number: 1-323-994-2093
Conference ID: 8303780

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 March 14, 2022.

Toll-free replay number: 1-844-512-2921
International replay number: 1-412-317-6671
Replay ID: 8303780

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, 80% 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.

Company Contact:
Paul Tarell
Chief Financial Officer
Gaia, Inc.
Investors@gaia.com

Investor Relations:
Gateway Group
Cody Slach
(949) 574-3860
GAIA@gatewayir.com

GAIA, INC.
Condensed Consolidated Statements of Operations

    For the Three Months Ended December 31,     For the Year Ended December 31,  
(in thousands, except per share data)   2021     2020     2021     2020  
    (unaudited)        
Revenues, net   $ 20,829     $ 18,626     $ 79,573     $ 66,827  
Cost of revenues     2,953       2,403       10,526       8,651  
Gross profit     17,876       16,223       69,047       58,176  
Gross profit margin     85.8 %     87.1 %     86.8 %     87.1 %
Expenses:                                
Selling and operating     15,757       14,583       60,577       56,937  
Corporate, general and administration     1,619       1,151       6,125       5,867  
Acquisition costs     360             360        
Total operating expenses     17,736       15,734       67,062       62,804  
Income (loss) from operations     140       489       1,985       (4,628 )
Interest and other income (expense), net     (68 )     (68 )     (265 )     5,327  
Income before income taxes     72       421       1,720       699  
Provision for (benefit from) income taxes     (2,011 )     111       (2,011 )     180  
Net income   $ 2,083     $ 310     $ 3,731     $ 519  
                                 
Earnings per share:                                
Basic   $ 0.11     $ 0.02     $ 0.19     $ 0.03  
Diluted   $ 0.10     $ 0.02     $ 0.19     $ 0.03  
Weighted-average shares outstanding:                                
Basic     19,441       19,183       19,307       18,921  
Diluted     19,899       19,603       19,834       19,305  
                                 
EBITDA*   $ 3,644     $ 3,505     $ 15,130     $ 7,414  

* See definition and reconciliation below.

GAIA, INC.
Summary of Cash Flows

    For the Three Months Ended December 31,     For the Year Ended December 31,  
(in thousands)   2021     2020     2021     2020  
    (unaudited)        
Net cash provided by (used in):                                
Operating activities   $ 6,281     $ 4,453     $ 20,867     $ 11,650  
Investing activities     (10,503 )     (2,957 )     (23,858 )     (176 )
Financing activities     63       2,388       655       (10,363 )
Net change in cash   $ (4,159 )   $ 3,884     $ (2,336 )   $ 1,111  

Reconciliation of Net Income to EBITDA and Adjusted EBITDA

    For the Three Months Ended December 31,     For the Year Ended December 31,  
(in thousands)   2021     2020     2021     2020  
    (unaudited)        
Net income   $ 2,083     $ 310     $ 3,731     $ 519  
Interest expense, net     68       68       265       798  
Provision for (benefit from) income taxes     (2,011 )     111       (2,011 )     180  
Gain on sale of real estate                       (6,125 )
Depreciation and amortization expense     3,504       3,016       13,145       12,042  
EBITDA     3,644       3,505       15,130       7,414  
Acquisition costs     360             360        
Share-based compensation expense     474       474       1,710       2,338  
Adjusted EBITDA   $ 4,478     $ 3,979     $ 17,200     $ 9,752  

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 and acquisition costs. 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

    December 31,     December 31,  
(in thousands, except share and per share data)   2021     2020  
                 
ASSETS                
Current assets:                
Cash   $ 10,269     $ 12,605  
Accounts receivable     2,728       2,024  
Prepaid expenses and other current assets     1,986       1,746  
Total current assets     14,983       16,375  
Media library, software and equipment, net     50,558       39,231  
Right-of-use lease asset, net     7,871       8,622  
Real estate, investment and other assets, net     31,394       28,500  
Goodwill     28,870       17,289  
Total assets   $ 133,676     $ 110,017  
LIABILITIES AND SHAREHOLDERS' EQUITY                
Current liabilities:                
Accounts payable, accrued and other liabilities   $ 14,962     $ 8,947  
Deferred revenue     14,847       12,376  
Total current liabilities     29,809       21,323  
Long-term mortgage, net     6,109       6,250  
Long-term lease liability     7,234       7,952  
Deferred taxes     309       257  
Total liabilities     43,461       35,782  
Total shareholders' equity     90,215       74,235  
Total liabilities and shareholders' equity   $ 133,676     $ 110,017  


Primary Logo

Source: Gaia, Inc.