Exhibit 99.1

 

Gaia Reports Second Quarter 2021 Results

Revenues up 20% with 20% EBITDA Margin

BOULDER, CO, August 2, 2021 — 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.


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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:

Investor Relations:

Paul Tarell

Gateway Investor Relations

Chief Financial Officer

Cody Slach

Gaia, Inc.

(949) 574-3860

Investors@gaia.com

GAIA@gatewayir.com

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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.

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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.


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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

 

 

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