Gaia Reports First Quarter 2022 Results
Revenues up 15% with 19% EBITDA Margin
BOULDER, Colo., May 02, 2022 (GLOBE NEWSWIRE) -- Gaia, Inc. (NASDAQ: GAIA), a conscious media and community company, reported financial results for the first quarter ended March 31, 2022.
Highlights
- 15% revenue growth compared to the first quarter of 2021, ending the quarter with 823,000 members
- Seventh consecutive quarter of positive earnings and double-digit revenue growth
“We are off to a good start in 2022 with 15% revenue growth while generating positive earnings in the first quarter,” said Paul Tarell, Gaia’s CFO. “We held a sold-out event in the GaiaSphere in March which showcased several speakers and provided an opportunity to promote our $299 per year Events+ premium subscription. We also made meaningful progress on the integration of Yoga International and began implementing plans to reduce operating expenses to better align to revenues going forward.”
First Quarter 2022 Financial Results
Revenues increased 15% to $21.8 million from $18.9 million in the year-ago quarter. Member count increased to 823,000 as of March 31, 2022, with average monthly revenue per member up from the year ago quarter.
Gross profit in the first quarter increased to $18.9 million compared to $16.5 million in the year-ago quarter. Gross margin decreased slightly to 86.7% from 87.1% in the year ago quarter primarily as a result of increased content amortization.
Total operating expenses were $18.6 million or 85% of revenues compared to $16.0 million or 85% of revenues in the year-ago quarter. EBITDA improved to $4.1 million compared to $3.5 million in the year ago quarter.
Net income from continuing operations was $0.2 million or $0.01 per share compared to $0.4 million or $0.02 per share in the year ago quarter. The decline reflects the incremental intangible asset amortization and operating expenses from the Yoga International acquisition completed at the end of December 2021.
Cash flows from operations was $4.0 million for the first quarter. Gaia’s cash balance as of March 31, 2022, was $8.4 million reflecting the use of $1.4 million to reduce payables and accrued liabilities and the use of $0.8 million to pay the remaining deferred purchase consideration for the Yoga International acquisition.
Conference Call
Date: Monday, May 2, 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: 6820476
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 May 16, 2022.
Toll-free replay number: 1-844-512-2921
International replay number: 1-412-317-6671
Replay ID: 6820476
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, Inc.
Cody Slach
(949) 574-3860
GAIA@gatewayir.com
GAIA, INC.
Condensed Consolidated Statements of Operations
| For the Year Ended March 31, | ||||||||
| (in thousands, except per share data) | 2022 | 2021 | ||||||
| Revenues, net | $ | 21,831 | $ | 18,896 | ||||
| Cost of revenues | 2,905 | 2,438 | ||||||
| Gross profit | 18,926 | 16,458 | ||||||
| Gross profit margin | 86.7 | % | 87.1 | % | ||||
| Expenses: | ||||||||
| Selling and operating | 16,785 | 14,538 | ||||||
| Corporate, general and administration | 1,785 | 1,496 | ||||||
| Acquisition costs | 49 | — | ||||||
| Total operating expenses | 18,619 | 16,034 | ||||||
| Income from operations | 307 | 424 | ||||||
| Interest and other expense, net | (60 | ) | (66 | ) | ||||
| Income before income taxes | 247 | 358 | ||||||
| Provision for (benefit from) income taxes | — | — | ||||||
| Income from continuing operations | 247 | 358 | ||||||
| Loss from discontinued operations | (161 | ) | — | |||||
| Net income | $ | 86 | $ | 358 | ||||
| Earnings per share: | ||||||||
| Basic | ||||||||
| Continuing operations | $ | 0.01 | $ | 0.02 | ||||
| Discontinued operations | (0.01 | ) | — | |||||
| Basic earnings per share | $ | — | $ | 0.02 | ||||
| Diluted | ||||||||
| Continuing operations | $ | 0.01 | $ | 0.02 | ||||
| Discontinued operations | (0.01 | ) | — | |||||
| Diluted earnings per share | $ | — | $ | 0.02 | ||||
| Weighted-average shares outstanding: | ||||||||
| Basic | 20,465 | 19,201 | ||||||
| Diluted | 20,816 | 19,724 | ||||||
| EBITDA* | $ | 4,053 | $ | 3,523 | ||||
* See definition and reconciliation below.
GAIA, INC.
Summary of Cash Flows
| For the Year Ended March 31, | ||||||||
| (in thousands) | 2022 | 2021 | ||||||
| Net cash provided by (used in): | ||||||||
| Operating activities - continuing operations | $ | 4,164 | $ | 5,188 | ||||
| Operating activities - discontinued operations | (161 | ) | — | |||||
| Investing activities | (5,828 | ) | (4,774 | ) | ||||
| Financing activities | (46 | ) | 26 | |||||
| Net change in cash | $ | (1,871 | ) | $ | 440 | |||
Reconciliation of Net Income to EBITDA and Adjusted EBITDA
| For the Year Ended March 31, | ||||||||
| (in thousands) | 2022 | 2021 | ||||||
| Net income | $ | 86 | $ | 358 | ||||
| Interest expense, net | 60 | 66 | ||||||
| Provision for (benefit from) income taxes | — | — | ||||||
| Depreciation and amortization expense | 3,907 | 3,099 | ||||||
| EBITDA | 4,053 | 3,523 | ||||||
| Acquisition costs | 49 | — | ||||||
| Share-based compensation expense | 540 | 613 | ||||||
| Discontinued operations | 161 | — | ||||||
| Adjusted EBITDA | $ | 4,803 | $ | 4,136 | ||||
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 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
| March 31, | December 31, | |||||||
| (in thousands, except share and per share data) | 2022 | 2021 | ||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash | $ | 8,398 | $ | 10,269 | ||||
| Accounts receivable | 2,900 | 2,728 | ||||||
| Prepaid expenses and other current assets | 1,912 | 1,986 | ||||||
| Total current assets | 13,210 | 14,983 | ||||||
| Media library, software and equipment, net | 51,898 | 50,558 | ||||||
| Right-of-use lease asset, net | 7,679 | 7,871 | ||||||
| Real estate, investment and other assets, net | 31,128 | 31,394 | ||||||
| Goodwill | 28,870 | 28,870 | ||||||
| Total assets | $ | 132,785 | $ | 133,676 | ||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable, accrued and other liabilities | $ | 12,657 | $ | 14,962 | ||||
| Deferred revenue | 15,854 | 14,847 | ||||||
| Total current liabilities | 28,511 | 29,809 | ||||||
| Long-term mortgage, net | 6,074 | 6,109 | ||||||
| Long-term lease liability | 7,050 | 7,234 | ||||||
| Deferred taxes | 309 | 309 | ||||||
| Total liabilities | 41,944 | 43,461 | ||||||
| Total shareholders' equity | 90,841 | 90,215 | ||||||
| Total liabilities and shareholders' equity | $ | 132,785 | $ | 133,676 | ||||
Released May 2, 2022