Gaia, Inc. reported a 32 percent increase in revenues in the second quarter, driven by 26 percent subscriber growth.
Subscriber count increased to 582,200 as of June 29, 2019 from 463,200 on June 30, 2018. The loss from operations was reduced 30 percent to $4.5 million
“We continue to make meaningful progress on improving the ratio of subscriber life time value to cost per acquisition, achieving our target 3.5:1 ratio a quarter early,” said Jirka Rysavy, Gaia’s CEO. “We successfully completed our soft launch of the ‘Gaia Sphere’ at our campus in June, and we will begin actively marketing our $299 Live Access subscription with our second event in August.”
Paul Tarell, Gaia’s CFO, said: “The second quarter of 2019 showed disciplined expense management on our planned path to EBITDA profitability by the end of September, which is anticipated to be at a subscriber level of 590,000-600,000.”
Second Quarter 2019 Financial Results
Revenues in the second quarter increased 32 percent to $13.2 million from $10.0 million in the year-ago quarter. This was primarily due to a 26 percent increase in paying subscribers since June 30, 2018.
Gross profit in the second quarter increased 31 percent to $11.4 million compared to $8.7 million in the year-ago quarter. Gross margin declined slightly to 86.4 percent versus 87.1 percent in the year-ago quarter primarily due to increased content amortization for shows that were released in the second quarter of 2019.
Total operating expenses in the second quarter increased to $15.7 million compared to $15.3 million in the year-ago quarter. Customer acquisition costs as a percentage of revenue declined to 57 percent in the second quarter of 2019 from 85 percent in the year-ago quarter. As a percentage of revenue, operating expenses declined to 119 percent in the second quarter from 153 percent in the year ago quarter.
Net loss in the second quarter was $4.5 million, or $(0.25) per share, compared to a net loss of $6.4 million, or $(0.36) per share, in the year-ago quarter.
As of June 30, 2019, Gaia had $17.5 million in cash.
Gaia is a global video streaming service and community that provides curated conscious media in four primary channels—Seeking Truth, Transformation, Alternative Healing and Yoga—to its subscribers in 185 countries with approximately 8,000 titles. Over 90 percent of its library is exclusive to Gaia, and approximately 80 percent of the views are generated by content produced or owned by Gaia.