Gaia reported sales grew 12 percent in the fourth quarter and 19 percent in the year.

Highlights

  • Generated positive operating income for the first full year since the launch of Gaia’s streaming business;
  • 19 percent revenue growth in 2021 ending the year with 821,000 members; and
  • A sixth consecutive quarter of positive earnings and double-digit revenue growth.

“Our first year with annual operating income represents an important milestone for Gaia,” said Jirka Rysavy, Gaia’s chairman and CEO. “We are now in a position to expand more aggressively internationally, leveraging our existing operating infrastructure and worldwide rights to virtually all of our content library.”

Paul Tarell, Gaia’s CFO commented: “Despite a quarter impacted by elevated customer acquisition costs industry-wide, we grew full-year revenues by 19 percent while remaining profitable. We also completed the acquisition of Yoga International in late December with the integration progressing smoothly. As a leader in consciousness-expanding media, Yoga International shares our passion for empowering its members’ personal growth. Looking to 2022, we expect this acquisition to help drive annual revenue growth similar to this year while we continue to maintain profitability.”

Fourth Quarter 2021 Financial Results
Revenues increased 12 percent to $20.8 million from $18.6 million in the year-ago quarter. This was primarily due to growth in members and an increase in average revenue per member. Member count increased to 821,000 as of December 31, 2021.

Gross profit in the fourth quarter increased to $17.9 million compared to $16.2 million in the year-ago quarter. Gross margin was down to 85.8 percent from 87.1 percent in the year-ago quarter primarily as a result of increased content amortization.

Total operating expenses were $17.7 million or 85 percent of revenues, which includes $0.4 million in one-time transaction-related expenses for the Yoga International acquisition, compared to $15.7 million or 84 percent of revenues in the year-ago quarter. Including the $0.4 million in acquisition costs, EBITDA improved slightly to $3.6 million compared to $3.5 million in the year-ago quarter.

Net income was $2.1 million or $0.10 per share compared to $0.3 million or $0.02 per share in the year-ago quarter.

Cash flows from operations improved 40 percent to $6.3 million from $4.5 million in the year-ago quarter. Gaia’s cash balance as of December 31, 2021, was $10.3 million, even after the use of $6.5 million for the acquisition of Yoga International and a French-language content library during the quarter. Gaia’s cash balance as of December 31, 2020 was $12.6 million.

2021 Financial Results
Revenues in 2021 increased 19 percent to $79.6 million from $66.8 million.

Gross profit for 2021 increased to $69.0 million compared to $58.2 million. Gross margin was 86.8 percent, reflecting increased content amortization as we have scaled our content investment to support our larger member base during 2021.

Total operating expenses were $67.1 million or 84 percent of revenues for 2021 compared to $62.8 million or 94 percent of revenues in the prior period. EBITDA improved to $15.1 million, which reflects a 60 percent flow-through of the incremental revenues generated in 2021 compared to the prior year.

Income from operations for 2021 improved to $2.0 million from a loss of $4.6 million in 2020, marking the first year generating income since launching our streaming business.

Net income increased to $3.7 million or $0.19 per share for 2021 compared to $0.5 million or $0.03 per share in the prior period which includes a $6.1 million gain on the sale of a portion of Gaia’s corporate campus in September 2020.

Cash flows from operations improved 79 percent to $20.9 million during 2021 compared to $11.7 million in the prior period.

Gaia is a member-supported video streaming service and community that produces and curates media through four primary channels—Seeking Truth, Transformation, Alternative Healing, and Yoga. Gaia’s library includes over 10,000 titles, 80 percent of which is exclusive to Gaia, and approximately 75 percent of viewership is generated by content produced or owned by the company.