BOULDER, Colo., Aug. 01, 2022 (GLOBE NEWSWIRE) -- Gaia, Inc. (NASDAQ:GAIA), a conscious media and community company, reported financial results for the second quarter ended June 30, 2022.

Highlights

Established technology independence and began operating on Gaia owned hardware
Eighth consecutive quarter of positive earnings and EBITDA, with Q2 EBITDA margins over 20%

"The spring marked a return to the seasonal patterns we have historically seen in our new member acquisition trends," said Paul Tarell, Gaia's CFO. "This resulted in less quarterly member additions since the pandemic began in March of 2020. Despite this shift we continued our financial discipline by delivering strong EBITDA margins while maintaining profitability. With the completion of our 18-month project to enable technology independence and ongoing financial discipline we remain well-positioned to achieve the long-term vision of our company."

First Quarter 2022 Financial Results

Revenues increased 7% to $20.7 million from $19.4 million in the year-ago quarter, with an ending member count of 792,000 as of June 30, 2022, compared to 770,200 as of June 30, 2021.

Gross profit in the second quarter increased to $18.0 million compared to $16.9 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 $17.7 million or 85% of revenues compared to $16.2 million or 84% of revenues in the year-ago quarter.

EBITDA improved to $4.2 million compared to $3.9 million in the year ago quarter, with EBITDA margin over 20%.

Net income from continuing operations was $0.1 million or $0.01 per share compared to $0.6 million or $0.03 per share in the year ago quarter. The slight decline reflects the incremental intangible asset amortization and operating expenses related to the integration of Yoga International, an acquisition that was completed at the end of December 2021.

Cash flows from operations was $2.5 million for the second quarter. Gaia's cash balance as of June 30, 2022, was $6.2 million.

Conference Call

Date: Monday, August 1, 2022

Time: 4:30 p.m. Eastern time (2:30 p.m. Mountain time)

Toll-free dial-in number: 1-888-220-8451

International dial-in number: 1-323-794-2588

Conference ID: 2614556

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 August 15, 2022.

Toll-free replay number: 1-844-512-2921

International replay number: 1-412-317-6671

Replay ID: 2614556

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 Three Months Ended June 30,						For the Six Months Ended June 30,
(in thousands, except per share data)	2022			2021			2022			2021

Revenues, net	$	20,720		$	19,443		$	42,551		$	38,339
Cost of revenues		2,759			2,509			5,664			4,947
Gross profit		17,961			16,934			36,887			33,392
Gross profit margin		86.7	%		87.1	%		86.7	%		87.1	%
Expenses:
Selling and operating		15,869			14,738			32,654			29,276
Corporate, general and administration		1,794			1,501			3,579			2,997
Acquisition costs		—			—			49			—
Total operating expenses		17,663			16,239			36,282			32,273
Income from operations		298			695			605			1,119
Interest and other expense, net		(50	)		(52	)		(110	)		(118	)
Income before income taxes		248			643			495			1,001
Provision for (benefit from) income taxes		—			—			—			—
Income from continuing operations		248			643			495			1,001
Loss from discontinued operations		(132	)		—			(293	)		—
Net income	$	116		$	643		$	202		$	1,001

Earnings per share:
Basic
Continuing operations	$	0.01		$	0.03		$	0.02		$	0.05
Discontinued operations		(0.01	)		—			(0.01	)		—
Basic earnings per share	$	—		$	0.03		$	0.01		$	0.05
Diluted
Continuing operations	$	0.01		$	0.03		$	0.02		$	0.05
Discontinued operations		(0.01	)		—			(0.01	)		—
Diluted earnings per share	$	—		$	0.03		$	0.01		$	0.05
Weighted-average shares outstanding:
Basic		20,788			19,268			20,627			19,235
Diluted		20,795			19,810			20,795			19,786

EBITDA*	$	4,163		$	3,927		$	8,216		$	7,450

* 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)	2022			2021			2022			2021

Net cash provided by (used in):
Operating activities - continuing operations	$	2,523		$	4,252		$	6,687		$	9,440
Operating activities - discontinued operations		454			—			293			—
Investing activities		(4,591	)		(4,205	)		(10,419	)		(8,979	)
Financing activities		(3	)		647			(49	)		673
Net change in cash	$	(1,617	)	$	694		$	(3,488	)	$	1,134


Reconciliation of Net Income to EBITDA and Adjusted EBITDA

	For the Three Months Ended June 30,					For the Six Months Ended June 30,
(in thousands)	2022			2021		2022			2021

Net income	$	116		$	643	$	202		$	1,001
Interest expense, net		50			52		110			118
Provision for (benefit from) income taxes		—			—		—			—
Depreciation and amortization expense		3,997			3,232		7,904			6,331
EBITDA		4,163			3,927		8,216			7,450
Acquisition costs		—			—		49			—
Share-based compensation expense		389			90		929			703
Discontinued operations		(132	)		—		(293	)		—
Adjusted EBITDA	$	4,420		$	4,017	$	8,901		$	8,153

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

	June 30,		December 31,
(in thousands, except share and per share data)	2022		2021

ASSETS
Current assets:
Cash	$	6,195	$	10,269
Accounts receivable		2,972		2,728
Prepaid expenses and other current assets		2,278		1,986
Total current assets		11,445		14,983
Media library, software and equipment, net		52,618		50,558
Right-of-use lease asset, net		7,486		7,871
Real estate, investment and other assets, net		31,002		31,394
Goodwill		28,870		28,870
Total assets	$	131,421	$	133,676
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable, accrued and other liabilities	$	11,604	$	14,962
Deferred revenue		15,218		14,847
Total current liabilities		26,822		29,809
Long-term mortgage, net		6,035		6,109
Long-term lease liability		6,865		7,234
Deferred taxes		309		309
Total liabilities		40,031		43,461
Total shareholders' equity		91,390		90,215
Total liabilities and shareholders' equity	$	131,421	$	133,676

Gaia Reports Second Quarter 2022 Results