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Gaia Reports Second Quarter 2021 Results

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Revenues up 20% with 20% EBITDA Margin

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