Gaia, Inc. (GAIA) Bundle
A Brief History of Gaia, Inc.
Company Overview
Gaia, Inc. is a subscription-based streaming service that focuses on yoga, meditation, and wellness content. As of 2024, the company operates primarily in the United States and has a growing international presence.
Financial Performance
For the three months ended September 30, 2024, Gaia reported net revenues of $22.2 million, representing a 10% increase from $20.2 million in the same period of 2023. This growth is attributed to an increase in membership and improvements in Average Revenue Per User (ARPU).
For the nine months ended September 30, 2024, total revenues reached $65.9 million, a 10.4% increase from $59.7 million in 2023.
Costs and Expenses
Cost of revenues for the three months ended September 30, 2024, was $3.1 million, a slight increase from $3.0 million in 2023. The gross profit margin improved to 86.0% from 85.2% in the prior year.
Operating expenses for the three months ended September 30, 2024, totaled $20.4 million, up from $17.7 million in 2023. This increase includes:
- Selling and operating expenses: $18.4 million (up 12.9% from $16.3 million)
- Corporate, general, and administrative expenses: $2.0 million (up 42.9% from $1.4 million)
Net Loss
Net loss for the three months ended September 30, 2024, was $1.5 million, compared to a loss of $0.7 million in 2023. The loss attributable to common shareholders was $1.2 million for the three months ended September 30, 2024, resulting in a loss per share of $0.05.
Balance Sheet Highlights
As of September 30, 2024, Gaia's total assets were valued at $139.6 million, with total liabilities of $45.1 million. The shareholders' equity stood at $94.5 million.
Cash Flow Summary
Gaia generated approximately $4.3 million in cash flows from operations during the nine months ended September 30, 2024. The cash balance at this date was $4.4 million.
| Financial Metrics | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Net Revenues | $22.2 million | $20.2 million | $65.9 million | $59.7 million |
| Cost of Revenues | $3.1 million | $3.0 million | $9.7 million | $8.6 million |
| Gross Profit Margin | 86.0% | 85.2% | 85.3% | 85.6% |
| Total Operating Expenses | $20.4 million | $17.7 million | $60.5 million | $54.2 million |
| Net Loss | $1.5 million | $0.7 million | $4.6 million | $3.8 million |
| Cash Flow from Operations | N/A | N/A | $4.3 million | $2.7 million |
A Who Owns Gaia, Inc. (GAIA)
Major Shareholders
As of 2024, the ownership structure of Gaia, Inc. (GAIA) is comprised of a mix of institutional and individual shareholders. The following table summarizes the major shareholders and their respective ownership percentages:
| Shareholder | Type | Shares Owned | Ownership Percentage |
|---|---|---|---|
| AWM Investment Company, Inc. | Institutional | Approximately 2,750,000 | 11.7% |
| Company Executives (including the CEO) | Individual | Approx. 1,500,000 | 6.4% |
| Vanguard Group, Inc. | Institutional | 1,200,000 | 5.1% |
| BlackRock, Inc. | Institutional | 900,000 | 3.8% |
| Other Institutional Investors | Institutional | Approx. 4,000,000 | 17.1% |
| Public Float | Public | Approximately 15,000,000 | 64.9% |
Shareholder Equity
As of September 30, 2024, the total equity of Gaia, Inc. is reported as follows:
| Equity Component | Amount (in thousands) |
|---|---|
| Common Stock | $3 |
| Additional Paid-in Capital | $170,822 |
| Accumulated Deficit | $(89,625) |
| Non-controlling Interests | $13,299 |
| Total Equity | $94,499 |
Stock Performance and Market Capitalization
Gaia, Inc. experienced fluctuations in its stock performance throughout 2024. As of September 30, 2024, the following financial metrics were recorded:
| Metric | Value |
|---|---|
| Market Capitalization | $196 million |
| Stock Price (as of September 30, 2024) | $8.38 |
| 52-week High | $12.50 |
| 52-week Low | $6.50 |
| Average Volume (last 30 days) | 250,000 shares |
Recent Transactions Impacting Ownership
In April 2024, Gaia, Inc. executed a series of transactions involving its subsidiary Igniton, which resulted in changes to its equity structure. The company sold 2,750,000 shares of Igniton common stock, generating approximately $3.2 million in net proceeds. This transaction was significant as it impacted the overall equity and ownership structure within the company.
Additionally, Gaia's cash flow from operations for the nine months ended September 30, 2024, was approximately $4.3 million, contributing to its overall financial health and capacity for potential future investments and shareholder returns.
Gaia, Inc. (GAIA) Mission Statement
Mission Overview
Gaia, Inc. is committed to providing a unique streaming service that focuses on content related to yoga, meditation, and other transformative practices. The company aims to create a conscious community through its extensive library of films, documentaries, and original series that promote wellness and personal growth.
Financial Performance
As of September 30, 2024, Gaia, Inc. reported the following financial metrics:
| Financial Metric | 2024 (Q3) | 2023 (Q3) | Change (%) |
|---|---|---|---|
| Revenues, net | $22.2 million | $20.2 million | +10% |
| Cost of revenues | $3.1 million | $3.0 million | +3.3% |
| Gross profit | $19.1 million | $17.2 million | +10.8% |
| Gross profit margin | 86.0% | 85.2% | +0.8% |
| Selling and operating expenses | $18.4 million | $16.3 million | +12.9% |
| Net loss | $(1.5 million) | $(0.7 million) | -111.7% |
Membership Growth
The increase in revenues has been primarily driven by a growing member base and improvements in Average Revenue Per User (ARPU). The total member count has shown consistent growth, contributing to the overall financial performance.
Cost Structure
For the nine months ended September 30, 2024, Gaia, Inc. reported:
| Cost Type | 2024 (9 months) | 2023 (9 months) | Change (%) |
|---|---|---|---|
| Cost of revenues | $9.7 million | $8.6 million | +12.8% |
| Selling and operating expenses | $54.9 million | $49.5 million | +10.9% |
| Corporate, general and administration expenses | $5.6 million | $4.7 million | +19.1% |
Equity and Shareholder Information
As of September 30, 2024, the total equity of Gaia, Inc. is reported as follows:
| Equity Component | Amount (in thousands) |
|---|---|
| Total equity | $94,499 |
| Common stock outstanding | 23,401,955 shares |
| Accumulated deficit | $(89,625) |
| Additional paid-in capital | $170,822 |
Market Position and Strategic Goals
Gaia, Inc. focuses on expanding its market presence both domestically and internationally. The company aims to enhance its content offerings, improve user engagement, and strengthen its community of members interested in holistic health and wellness.
How Gaia, Inc. (GAIA) Works
Business Overview
Gaia, Inc. operates primarily as a subscription-based streaming service that provides content focused on yoga, transformation, alternative healing, and conscious films. The company's business model centers around generating revenue through subscription fees paid by members, which are recognized ratably over the subscription term.
Financial Performance
For the three months ended September 30, 2024, Gaia reported net revenues of $22.2 million, marking a 10% increase from $20.2 million in the same period in 2023. For the nine months ended September 30, 2024, net revenues reached $65.9 million, up 10.4% from $59.7 million year-over-year.
| Financial Metric | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Net Revenues | $22.2 million | $20.2 million | $65.9 million | $59.7 million |
| Cost of Revenues | $3.1 million | $3.0 million | $9.7 million | $8.6 million |
| Gross Profit | $19.1 million | $17.2 million | $56.2 million | $51.1 million |
| Net Loss | $(1.5 million) | $(0.7 million) | $(4.6 million) | $(3.8 million) |
Cost Structure
The cost of revenues for the three months ended September 30, 2024, was $3.1 million, reflecting a 3.3% increase compared to $3.0 million in Q3 2023. The gross profit margin improved to 86.0% from 85.2%.
Operating Expenses
For the three months ended September 30, 2024, total operating expenses amounted to $20.4 million, a 15.5% increase from $17.7 million in the same period in 2023. Selling and operating expenses increased to $18.4 million, up 12.9% from $16.3 million in Q3 2023.
| Operating Expense Category | Q3 2024 | Q3 2023 |
|---|---|---|
| Selling and Operating Expenses | $18.4 million | $16.3 million |
| Corporate, General and Administration | $2.0 million | $1.4 million |
Cash Flow and Liquidity
As of September 30, 2024, Gaia's cash and cash equivalents stood at $4.4 million. The company generated $4.3 million in cash flows from operations during the nine months ended September 30, 2024, compared to $2.7 million in the same period in 2023.
Market Presence
Gaia serves members in the United States and over 185 foreign countries. For the three months ended September 30, 2024, revenue from the United States was $12.4 million, while international revenue was $9.8 million.
| Geographical Revenue Breakdown | Q3 2024 | Q3 2023 |
|---|---|---|
| United States | $12.4 million | $11.3 million |
| International | $9.8 million | $8.9 million |
Investments and Acquisitions
In April 2024, Gaia entered into a transaction to purchase a perpetual license for $16.2 million, consisting of $10.2 million in cash and $5.0 million in common stock. This acquisition supports the company's strategy to enhance its technology offerings.
Shareholder Equity
As of September 30, 2024, Gaia's total equity was $94.5 million, with an accumulated deficit of $(89.6 million).
| Equity Summary | September 30, 2024 |
|---|---|
| Total Equity | $94.5 million |
| Accumulated Deficit | $(89.6 million) |
Loss Per Share
For the three months ended September 30, 2024, the basic and diluted loss per share attributable to common shareholders was $(0.05), compared to $(0.04) in Q3 2023.
| Loss Per Share | Q3 2024 | Q3 2023 |
|---|---|---|
| Basic Loss Per Share | $(0.05) | $(0.04) |
| Diluted Loss Per Share | $(0.05) | $(0.04) |
How Gaia, Inc. (GAIA) Makes Money
Revenue Streams
Gaia, Inc. primarily generates revenue through subscription fees paid by its members. As of September 30, 2024, the company reported net revenues of $22.2 million for the third quarter, reflecting a 10% increase compared to $20.2 million in the same quarter of the previous year.
The increase in revenue is attributed to a rise in member count and improvements in Average Revenue Per User (ARPU). For the nine months ended September 30, 2024, Gaia's net revenues reached $65.9 million, a 10.4% increase from $59.7 million during the same period in 2023.
Member Growth and Engagement
As of September 30, 2024, Gaia's member growth has been significant. The company has focused on expanding its unique content offerings, which include yoga, transformation, alternative healing, and conscious films. This niche content attracts a dedicated subscriber base.
Cost Structure
For the three months ended September 30, 2024, Gaia reported a cost of revenues of $3.1 million, which is an increase of 3.3% from $3.0 million in the same quarter of 2023. This increase is primarily linked to the revenue growth and changes in the revenue mix.
The gross profit margin for the third quarter of 2024 improved to 86.0% from 85.2% in the prior year, indicating effective cost management and better revenue generation per user.
Operating Expenses
Operating expenses rose to $20.4 million for the three months ended September 30, 2024, compared to $17.7 million in the same quarter of the previous year. The breakdown of operating expenses is as follows:
| Expense Type | Q3 2024 (in thousands) | Q3 2023 (in thousands) |
|---|---|---|
| Selling and Operating | $18,398 | $16,254 |
| Corporate, General and Administrative | $2,013 | $1,433 |
| Total Operating Expenses | $20,411 | $17,687 |
The increase in selling and operating expenses was driven by higher marketing costs and the absence of the Employee Retention Tax Credit (ERTC) benefit recognized in 2023.
Loss from Operations
Gaia reported a loss from operations of $1.4 million for the third quarter of 2024, compared to a loss of $447,000 in Q3 2023. The loss before income taxes was $1.5 million.
Cash Flow and Liquidity
For the nine months ended September 30, 2024, Gaia generated approximately $4.3 million in cash flows from operations, with a cash balance of $4.4 million as of the end of the quarter.
The company has access to a $10 million revolving credit facility, which remains untapped as of the latest reporting period.
Geographic Revenue Distribution
Gaia's revenue is generated both domestically and internationally. For the third quarter of 2024, the revenue breakdown was as follows:
| Region | Revenue (in thousands) |
|---|---|
| United States | $12,363 |
| International | $9,793 |
| Total Revenue | $22,156 |
This geographic diversity is crucial for sustaining growth and mitigating risks associated with regional market fluctuations.
Future Outlook
Gaia plans to continue investing in content acquisition and technology enhancements to bolster its subscription model. The budgeted content and capital expenditures for the remainder of 2024 are expected to be between $3 million and $4 million.
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Resources:
- Gaia, Inc. (GAIA) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Gaia, Inc. (GAIA)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Gaia, Inc. (GAIA)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.