There were 1,584 press releases posted in the last 24 hours and 413,519 in the last 365 days.

Gaia Reports Second Quarter 2017 Results

Paying Subscribers Increase 64%

BOULDER, Colo., Aug. 07, 2017 (GLOBE NEWSWIRE) -- Gaia, Inc. (NASDAQ:GAIA), a conscious media company, reported financial results for the second quarter ended June 30, 2017.

Second Quarter 2017 vs. Same Year-Ago Quarter

  • 64% subscriber growth generated 68% increase in streaming revenues to $6.1 million
  • Total revenues up 56% to $6.6 million
  • Gross margin up 390 basis points to 86.1%

“The momentum in our business has continued to strengthen as we again exceeded our accelerated subscriber growth target, while customer acquisition costs continue to track below plan,” said Jirka Rysavy, Gaia’s CEO. “We also continued to grow our content library, ending the quarter at 8,000 titles.”

Gaia’s special report “Unearthing Nazca,“ part of a new series exploring a rare archeological discovery in Peru, has garnered over 60 million views on Gaia’s website, YouTube and other social channels. While initial discoveries are provided free of charge, this level of views demonstrates the size of the market interested in Gaia’s content.

Gaia’s paying subscriber count increased 64% to 277,800 on June 30, 2017 from 169,500 on June 30, 2016. This follows 58% year-over-year subscriber growth in the first quarter of 2017 and 45% growth in the second quarter of 2016. The company expects to further increase its year over year subscriber growth rate to 70% during the third quarter of 2017.

Second Quarter 2017 Financial Results

Total revenues in the second quarter increased 56% to $6.6 million from $4.2 million in the same year-ago quarter. This was due to 68% growth in streaming revenues, which was driven by the 64% increase in paying subscribers versus June 30, 2016.

Gross profit in the second quarter increased 64% to $5.6 million compared to $3.5 million in the year-ago quarter. Gross margin increased 390 basis points to 86.1% from 82.2% in the second quarter of 2016 due to increased revenues and the related leverage on streaming costs and Gaia’s media library.

Total operating expenses in the second quarter were $12.0 million compared to $6.4 million in the year-ago quarter. The increase was due to the planned increase in marketing expenses associated with the announced acceleration of subscriber growth throughout 2017.

Net loss in the second quarter was $6.3 million or $0.42 per share, compared to a net loss of $2.4 million or $0.10 per share in the year-ago quarter. The 2017 per share amount reflects Gaia’s repurchase of approximately 40% of its outstanding shares in July 2016.

As of June 30, 2017, the company had $36.9 million in cash, an unencumbered corporate campus and no debt.

Conference Call

Gaia is hosting a conference call today, August 7, 2017, beginning at 4:30 p.m. ET (2:30 p.m. MT). The conference call dial-in numbers are (888) 211-9963 (or (719) 325-2354 for international callers), passcode 5339575. Questions will be reserved for analysts and investors. If you have any difficulty connecting with the conference call, please contact Liolios at (949) 574-3860. Following the completion of today’s conference call, a replay will be available until August 21, 2017 by dialing (844) 512-2921 (or (412) 317-6671 for international callers), passcode 5339575.

About Gaia

Gaia is a global video streaming service and online community that provides curated conscious media in three primary channels—Seeking Truth, Transformation and Yoga—to its subscribers in over 150 countries. Over 90% of its 8,000 titles are available for streaming exclusively on Gaia through most devices connected to the Internet 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, history of 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.

 
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)   2017     2016   2017     2016  
    (unaudited)   (unaudited)  
Net revenues:                              
Streaming   $ 6,057     $ 3,610   $ 11,266     $ 6,839  
DVD subscription and other     501       588     1,076       1,189  
Total net revenues     6,558       4,198     12,342       8,028  
Cost of revenues                              
Streaming     844       667     1,585       1,316  
DVD subscription and other     67       80     145       144  
Total cost of revenues     911       747     1,730       1,460  
Gross profit     5,647       3,451     10,612       6,568  
Expenses:                              
Selling and operating     10,562       4,992     21,028       10,847  
Corporate, general and administration     1,439       1,426     2,792       2,776  
Total operating expenses     12,001       6,418     23,820       13,623  
Loss from operations     (6,354 )     (2,967 )   (13,208 )     (7,055 )
Interest and other (expense) income, net     44       (117 )   88       (153 )
Loss before income taxes     (6,310 )     (3,084 )   (13,120 )     (7,208 )
Income tax expense (benefit)     -       1     (629 )     2  
Loss from continuing operations     (6,310 )     (3,085 )   (12,491 )     (7,210 )
Loss from discontinued operations, net of tax     -       646     -       (2,854 )
Net loss   $ (6,310 )   $ (2,439 ) $ (12,491 )   $ (10,064 )
Income (loss) per share—basic and diluted:                              
Continuing operations   $ (0.42 )   $ (0.13 ) $ (0.82 )   $ (0.29 )
Discontinued operations           0.03           (0.12 )
Basic and diluted net loss per share   $ (0.42 )   $ (0.10 ) $ (0.82 )   $ (0.41 )
Weighted-average shares outstanding:                              
Basic and diluted     15,157       24,580     15,155       24,555  
 


GAIA, INC.
Condensed consolidated balance sheets
 
    June 30,     December 31,  
(in thousands, except share and per share data)   2017     2016  
    (unaudited)          
ASSETS                
Current assets:                
Cash   $ 36,861     $ 54,027  
Accounts receivable     788       554  
Prepaid expenses and other current assets     1,360       1,303  
Total current assets     39,009       55,884  
                 
Building and land, net     16,575       16,896  
Media library, software and equipment, net     16,593       12,861  
Goodwill     10,609       10,609  
Investments and other assets     11,001       10,946  
Total assets   $ 93,787     $ 107,196  
LIABILITIES AND EQUITY                
Current liabilities:                
Accounts payable and accrued liabilities   $ 4,674     $ 6,672  
Deferred revenue     3,178       2,434  
Total current liabilities     7,852       9,106  
Deferred taxes           553  
Contingencies                
Equity     85,935       97,537  
Total liabilities and equity   $ 93,787     $ 107,196  
 
Contacts

Paul Tarell
Gaia, Inc.
(303) 222-3330
Paul.Tarell@gaia.com

Cody Slach
Liolios Investor Relations
(949) 574-3860
GAIA@liolios.com

Primary Logo