Gaia Reports Second Quarter 2019 Results
August 05 2019 - 4:05PM
Gaia, Inc. (NASDAQ: GAIA), a conscious media and community company,
reported financial results for the second quarter ended June 30,
2019.
Second Quarter 2019 vs. Same Year-Ago
Quarter
- 32% increase in revenues driven by 26% subscriber growth
- Subscriber count increased to 582,200 from 463,200 on June 30,
2018
- Loss from operations reduced 30% to $4.5 million
“We continue to make meaningful progress on improving the ratio
of subscriber life time value to cost per acquisition, achieving
our target 3.5:1 ratio a quarter early,” said Jirka Rysavy, Gaia’s
CEO. “We successfully completed our soft launch of the ‘Gaia
Sphere’ at our campus in June, and we will begin actively marketing
our $299 Live Access subscription with our second event in
August.”
Paul Tarell, Gaia’s CFO, said: “The second quarter of 2019
showed disciplined expense management on our planned path to EBITDA
profitability by the end of September, which is anticipated to be
at a subscriber level of 590,000-600,000.”
Second Quarter 2019 Financial Results
Revenues in the second quarter increased 32% to $13.2 million
from $10.0 million in the year-ago quarter. This was primarily due
to a 26% increase in paying subscribers since June 30, 2018.
Gross profit in the second quarter increased 31% to $11.4
million compared to $8.7 million in the year-ago quarter. Gross
margin declined slightly to 86.4% versus 87.1% in the year-ago
quarter primarily due to increased content amortization for shows
that were released in the second quarter of 2019.
Total operating expenses in the second quarter increased to
$15.7 million compared to $15.3 million in the year-ago quarter.
Customer acquisition costs as a percentage of revenue declined to
57% in the second quarter of 2019 from 85% in the year-ago quarter.
As a percentage of revenue, operating expenses declined to 119% in
the second quarter from 153% in the year ago quarter.
Net loss in the second quarter was $4.5 million, or $(0.25) per
share, compared to a net loss of $6.4 million, or $(0.36) per
share, in the year-ago quarter.
As of June 30, 2019, Gaia had $17.5 million in cash.
Conference Call
Gaia is hosting a conference call today, August 5, 2019,
beginning at 4:30 p.m. ET (2:30 p.m. MT). The conference call
dial-in numbers are (888) 394-8218 (or (323) 701-0225 for
international callers), passcode 8370568. Questions will be
reserved for analysts and investors. If you have any difficulty
connecting with the conference call, please contact Gateway
Investor Relations at (949) 574-3860. Following the completion of
today’s conference call, a replay will be available until August
19, 2019 by dialing (844) 512-2921 (or (412) 317-6671 for
international callers), passcode 8370568.
About Gaia
Gaia is a global video streaming service and community that
provides curated conscious media in four primary channels—Seeking
Truth, Transformation, Alternative Healing and Yoga—to its
subscribers in 185 countries with approximately 8,000 titles. Over
90% of its library is exclusive to Gaia, and approximately 80% of
the views are generated by content produced or owned by Gaia. For
more information about Gaia, visit www.gaia.com.
Forward-Looking Statements
This press release includes forward-looking statements relating
to matters that are not historical facts. Forward-looking
statements may be identified by the use of words such as “expect,”
“believe,” “will,” or comparable terminology or by discussions of
strategy. While Gaia believes its assumptions and expectations
underlying forward-looking statements are reasonable, there can be
no assurance that actual results will not be materially different.
Risks and uncertainties that could cause materially different
results include, among others, operating losses, general economic
conditions, competition, changing consumer preferences,
acquisitions, new initiatives undertaken by us, costs of acquiring
new subscribers, subscriber retention rates, and other risks and
uncertainties included in Gaia’s filings with the Securities and
Exchange Commission. Gaia assumes no duty to update any
forward-looking statements.
Contacts
Paul TarellGaia, Inc.(303) 222-3330Paul.Tarell@gaia.com
Cody SlachGateway Investor Relations(949)
574-3860GAIA@gatewayir.com
|
|
GAIA, INC. |
Condensed Consolidated Balance Sheets |
|
|
|
June 30, |
|
|
December 31, |
(in thousands) |
|
2019 |
|
|
2018 |
|
|
(unaudited) |
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
Cash |
|
$ |
17,477 |
|
|
$ |
29,964 |
Accounts receivable |
|
|
2,078 |
|
|
|
1,334 |
Prepaid expenses and other current assets |
|
|
3,232 |
|
|
|
3,192 |
Total current assets |
|
|
22,787 |
|
|
|
34,490 |
Building and land, net |
|
|
22,328 |
|
|
|
21,688 |
Media library, software and
equipment, net |
|
|
33,296 |
|
|
|
27,623 |
Goodwill |
|
|
17,289 |
|
|
|
10,609 |
Investments and other
assets |
|
|
13,725 |
|
|
|
12,741 |
Total assets |
|
$ |
109,425 |
|
|
$ |
107,151 |
LIABILITIES AND EQUITY |
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
Accounts payable, accrued and other liabilities |
|
$ |
9,274 |
|
|
$ |
7,993 |
Deferred revenue |
|
|
6,699 |
|
|
|
5,029 |
Total current liabilities |
|
|
15,973 |
|
|
|
13,022 |
Long-term debt |
|
|
18,365 |
|
|
|
12,500 |
Deferred taxes |
|
|
207 |
|
|
|
164 |
Total liabilities |
|
|
34,545 |
|
|
|
25,686 |
Total equity |
|
|
74,880 |
|
|
|
81,465 |
Total liabilities and equity |
|
$ |
109,425 |
|
|
$ |
107,151 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAIA,
INC. |
Condensed
Consolidated Statement of Operations |
|
|
|
For the Three Months Ended June 30, |
|
|
For the Six Months Ended June 30, |
|
(in thousands, except per share data) |
|
2019 |
|
|
2018 |
|
|
2019 |
|
|
2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(unaudited) |
|
|
(unaudited) |
|
Revenues, net |
|
$ |
13,164 |
|
|
$ |
10,000 |
|
|
$ |
25,631 |
|
|
$ |
19,138 |
|
Cost of revenues |
|
|
1,785 |
|
|
|
1,290 |
|
|
|
3,385 |
|
|
|
2,471 |
|
Gross profit |
|
|
11,379 |
|
|
|
8,710 |
|
|
|
22,246 |
|
|
|
16,667 |
|
Expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling and operating |
|
|
14,173 |
|
|
|
13,961 |
|
|
|
29,895 |
|
|
|
28,478 |
|
Corporate, general and administration |
|
|
1,493 |
|
|
|
1,340 |
|
|
|
3,086 |
|
|
|
2,751 |
|
Total operating expenses |
|
|
15,666 |
|
|
|
15,301 |
|
|
|
32,981 |
|
|
|
31,229 |
|
Loss from operations |
|
|
(4,287 |
) |
|
|
(6,591 |
) |
|
|
(10,735 |
) |
|
|
(14,562 |
) |
Interest and other income
(expense), net |
|
|
(196 |
) |
|
|
160 |
|
|
|
(159 |
) |
|
|
177 |
|
Loss before income taxes |
|
|
(4,483 |
) |
|
|
(6,431 |
) |
|
|
(10,894 |
) |
|
|
(14,385 |
) |
Income tax expense
(benefit) |
|
|
42 |
|
|
|
— |
|
|
|
42 |
|
|
|
(1,826 |
) |
Loss from continuing
operations |
|
|
(4,525 |
) |
|
|
(6,431 |
) |
|
|
(10,936 |
) |
|
|
(12,559 |
) |
Income (loss) from
discontinued operations |
|
|
57 |
|
|
|
82 |
|
|
|
(258 |
) |
|
|
175 |
|
Net loss |
|
$ |
(4,468 |
) |
|
$ |
(6,349 |
) |
|
$ |
(11,194 |
) |
|
$ |
(12,384 |
) |
Income (loss) per share-basic
and diluted: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing operations |
|
$ |
(0.25 |
) |
|
$ |
(0.36 |
) |
|
$ |
(0.60 |
) |
|
$ |
(0.75 |
) |
Discontinued operations |
|
|
— |
|
|
|
— |
|
|
|
(0.01 |
) |
|
|
0.01 |
|
Basic and diluted net loss per share |
|
$ |
(0.25 |
) |
|
$ |
(0.36 |
) |
|
$ |
(0.61 |
) |
|
$ |
(0.74 |
) |
Weighted-average shares
outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted |
|
|
17,944 |
|
|
|
17,890 |
|
|
|
17,917 |
|
|
|
16,627 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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