gaia-ex991_33.htm

BOULDER, CO, May 2, 2022 — Gaia, Inc. (NASDAQ: GAIA), a conscious media and community company, reported financial results for the first quarter ended March 31, 2022.

“We are off to a good start in 2022 with 15% revenue growth while generating positive earnings in the first quarter,” said Paul Tarell, Gaia’s CFO. “We held a sold-out event in the GaiaSphere in March which showcased several speakers and provided an opportunity to promote our $299 per year Events+ premium subscription. We also made meaningful progress on the integration of Yoga International and began implementing plans to reduce operating expenses to better align to revenues going forward.”

Revenues increased 15% to $21.8 million from $18.9 million in the year-ago quarter. Member count increased to 823,000 as of March 31, 2022, with average monthly revenue per member up from the year ago quarter.

Gross profit in the first quarter increased to $18.9 million compared to $16.5 million in the year-ago quarter. Gross margin decreased slightly to 86.7% from 87.1% in the year ago quarter primarily as a result of increased content amortization.

Total operating expenses were $18.6 million or 85% of revenues compared to $16.0 million or 85% of revenues in the year-ago quarter. EBITDA improved to $4.1 million compared to $3.5 million in the year ago quarter.

Net income from continuing operations was $0.2 million or $0.01 per share compared to $0.4 million or $0.02 per share in the year ago quarter. The decline reflects the incremental intangible asset amortization and operating expenses from the Yoga International acquisition completed at the end of December 2021.

Cash flows from operations was $4.0 million for the first quarter. Gaia’s cash balance as of March 31, 2022, was $8.4 million reflecting the use of $1.4 million to reduce payables and accrued liabilities and the use of $0.8 million to pay the remaining deferred purchase consideration for the Yoga International acquisition.

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 Group 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 May 16, 2022.

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—in four languages (English, Spanish, French and German) to its members in 185 countries. Gaia’s library includes over 10,000 titles, 80% of which is exclusive to Gaia, and approximately 75% of viewership is 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.

	For the Year Ended March 31,
(in thousands, except per share data)	2022			2021

Revenues, net	$	21,831		$	18,896
Cost of revenues		2,905			2,438
Gross profit		18,926			16,458
Gross profit margin		86.7	%		87.1	%
Expenses:
Selling and operating		16,785			14,538
Corporate, general and administration		1,785			1,496
Acquisition costs		49			—
Total operating expenses		18,619			16,034
Income from operations		307			424
Interest and other expense, net		(60	)		(66	)
Income before income taxes		247			358
Provision for (benefit from) income taxes		—			—
Income from continuing operations		247			358
Loss from discontinued operations		(161	)		—
Net income	$	86		$	358

Earnings per share:
Basic
Continuing operations	$	0.01		$	0.02
Discontinued operations		(0.01	)		—
Basic earnings per share	$	—		$	0.02
Diluted
Continuing operations	$	0.01		$	0.02
Discontinued operations		(0.01	)		—
Diluted earnings per share	$	—		$	0.02
Weighted-average shares outstanding:
Basic		20,465			19,201
Diluted		20,816			19,724

EBITDA*	$	4,053		$	3,523

	For the Year Ended March 31,
(in thousands)	2022			2021

Net cash provided by (used in):
Operating activities - continuing operations	$	4,164		$	5,188
Operating activities - discontinued operations		(161	)		—
Investing activities		(5,828	)		(4,774	)
Financing activities		(46	)		26
Net change in cash	$	(1,871	)	$	440

	For the Year Ended March 31,
(in thousands)	2022		2021

Net income	$	86	$	358
Interest expense, net		60		66
Provision for (benefit from) income taxes		—		—
Depreciation and amortization expense		3,907		3,099
EBITDA		4,053		3,523
Acquisition costs		49		—
Share-based compensation expense		540		613
Discontinued operations		161		—
Adjusted EBITDA	$	4,803	$	4,136

EBITDA represents net income before interest expense, provision for income taxes, other income, depreciation and amortization. Adjusted EBITDA is defined as EBITDA further adjusted to remove acquisition costs, share-based compensation expense, and the results of discontinued operations. 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 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.

	March 31,		December 31,
(in thousands, except share and per share data)	2022		2021

ASSETS
Current assets:
Cash	$	8,398	$	10,269
Accounts receivable		2,900		2,728
Prepaid expenses and other current assets		1,912		1,986
Total current assets		13,210		14,983
Media library, software and equipment, net		51,898		50,558
Right-of-use lease asset, net		7,679		7,871
Real estate, investment and other assets, net		31,128		31,394
Goodwill		28,870		28,870
Total assets	$	132,785	$	133,676
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable, accrued and other liabilities	$	12,657	$	14,962
Deferred revenue		15,854		14,847
Total current liabilities		28,511		29,809
Long-term mortgage, net		6,074		6,109
Long-term lease liability		7,050		7,234
Deferred taxes		309		309
Total liabilities		41,944		43,461
Total shareholders' equity		90,841		90,215
Total liabilities and shareholders' equity	$	132,785	$	133,676