Gaia, Inc.’s results for the second quarter ended June 30 marked its eighth consecutive quarter of positive earnings and EBITDA, with Q2 EBITDA margins over 20 percent.
“The spring marked a return to the seasonal patterns we have historically seen in our new member acquisition trends,” said Paul Tarell, Gaia’s CFO. “This resulted in less quarterly member additions since the pandemic began in March 2020. Despite this shift, we continued our financial discipline by delivering strong EBITDA margins while maintaining profitability. With the completion of our 18-month project to enable technology independence and ongoing financial discipline, we remain well-positioned to achieve our company’s long-term vision.”
First Quarter 2022 Financial Results
Revenues increased 7 percent to $20.7 million from $19.4 million in the year-ago quarter, with an ending member count of 792,000 as of June 30, 2022, compared to 770,200 as of June 30, 2021.
Gross profit in the second quarter increased to $18.0 million compared to $16.9 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 $17.7 million or 85 percent of revenues compared to $16.2 million or 84 percent of revenues in the year-ago quarter.
EBITDA improved to $4.2 million compared to $3.9 million in the year-ago quarter, with an EBITDA margin of over 20 percent.
Net income from continuing operations was $0.1 million or $0.01 per share compared to $0.6 million or $0.03 per share in the year-ago quarter. The slight decline reflects the incremental intangible asset amortization and operating expenses related to the integration of Yoga International, an acquisition completed at the end of December 2021.
Cash flows from operations were $2.5 million for the second quarter. As of June 30, 2022, Gaia’s cash balance was $6.2 million.
Gaia is a member-supported global video streaming service. Its library includes over 10,000 titles, 80 percent exclusive to Gaia, and content produced or owned by Gaia generates approximately 75 percent of viewership.