Exhibit 99.1

 

Gaia Reports Second Quarter 2019 Results

Revenues Increase 32%, Loss From Operations Improves 30% on Disciplined Expense Management

BOULDER, CO, August 5, 2019 — 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.


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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 Tarell

Gaia, Inc.

(303) 222-3330

Paul.Tarell@gaia.com

 

Cody Slach

Gateway Investor Relations

(949) 574-3860

GAIA@gatewayir.com

 

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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

 


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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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