Gaia, Inc. reported 15 percent revenue growth in the first quarter compared to the first quarter of 2021, ending the quarter with 823,000 members.

Highlights

  • 15 percent revenue growth compared to the first quarter of 2021, ending the quarter with 823,000 members; and
  • A seventh consecutive quarter of positive earnings and double-digit revenue growth.

“We are off to a good start in 2022 with 15 percent 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.”

First Quarter 2022 Financial Results
Revenues increased 15 percent 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 percent from 87.1 percent in the year-ago quarter, primarily due to increased content amortization.

Total operating expenses were $18.6 million or 85 percent of revenues compared to $16.0 million or 85 percent 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 were $4.0 million for the first quarter.

As of March 31, 2022, Gaia’s cash balance 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.