Gaia Reports First Quarter 2017 Results

/EINPresswire.com/ -- BOULDER, CO--(Marketwired - May 1, 2017) - Gaia, Inc. (NASDAQ: GAIA), a conscious media video subscription service, reported financial results for the first quarter ended March 31, 2017.

First Quarter 2017 vs. Same Year-Ago Quarter

• Net revenue up 51% to $5.8 million
• 58% subscriber growth generated 61% increase in streaming revenues to $5.2 million
• Gross margin up 440 basis points to 85.8%

"Our subscriber growth has continued to build momentum in the first quarter of 2017, coming off already accelerated growth in the second half of 2016," said Jirka Rysavy, Gaia's CEO. "The 58% subscriber growth from last year exceeded our guidance, while our cost of acquiring these customers continues to track better than our plan."

Gaia's paying subscriber count increased to 247,300 on March 31, 2017, up from 202,000 on December 31, 2016 and 157,000 on March 31, 2016. International reach expanded to over 150 countries, the library title count increased to 7,900, and a Gaia-branded premium subscription channel launched across all Comcast's Xfinity platforms during the first quarter.

First Quarter 2017 Financial Results

Total net revenues in the first quarter increased 51% to $5.8 million from $3.8 million in the same year-ago quarter. This was due to 61% growth in streaming revenue, which was driven by the 58% increase in paying subscribers from March 31, 2016.

Gross profit in the first quarter increased 59% to $5.0 million compared to $3.1 million in the year-ago quarter. Gross margin increased 440 basis points to 85.8% from 81.4% in the first quarter of 2016 due to increased revenues and the related leverage on streaming costs and Gaia's media library.

Total operating expenses in the first quarter were $11.8 million, slightly better than our expectation, compared to $7.2 million in the year-ago quarter. The increase was due to the planned increase in selling and operating expenses associated with the announced acceleration of subscriber growth throughout 2017.

Net loss in the first quarter was $6.2 million or $(0.41) per share, compared to a loss of $7.6 million or $(0.31) per share in the year-ago quarter. The 2016 per share amount reflects Gaia's repurchase of approximately 40% of its outstanding shares in July 2016. 

During the first quarter, Gaia paid approximately $2 million of accrued payables remaining from the sale of the Gaiam consumer product business and on March 31, 2017, had $45.4 million in cash, no debt and unencumbered ownership of its 12-acre, 150,000 square foot campus near Boulder, Colorado.

Conference Call

Gaia is hosting a conference call today, May 1, 2017, beginning at 4:30 p.m. ET (2:30 p.m. MT). The conference call dial-in numbers are (888) 329-8889 (or (719) 325-2370 for international callers), passcode 6917183. Questions will be reserved for analysts and investors. If you have any difficulty connecting with the conference call, please contact Liolios at (949) 574-3860. Following the completion of today's conference call, a replay will be available until May 15, 2017 by dialing (844) 512-2921 (or (412) 317-6671 for international callers), passcode 6917183.

About Gaia

Gaia is a global video streaming service and online community that provides curated conscious media in three primary channels: Seeking Truth, Transformation and Yoga, to its subscribers in over 150 countries. Over 90% of its 7,900 titles are available for streaming exclusively on Gaia through most devices connected to the Internet and approximately 80% of the views are generated by content produced or owned by Gaia. For more information about Gaia, visit www.gaia.com.

Forward-Looking Statements

This press release includes forward-looking statements relating to matters that are not historical facts. Forward-looking statements may be identified by the use of words such as "expect," "believe," "will," or comparable terminology or by discussions of strategy. While Gaia believes its assumptions and expectations underlying forward-looking statements are reasonable, there can be no assurance that actual results will not be materially different. Risks and uncertainties that could cause materially different results include, among others, history of operating losses, general economic conditions, competition, changing consumer preferences, acquisitions, new initiatives undertaken by us, and other risks and uncertainties included in Gaia's filings with the Securities and Exchange Commission. Gaia assumes no duty to update any forward-looking statements.

GAIA, INC.
Condensed consolidated balance sheets
				March 31,			December 31,
(in thousands, except share and per share data)				2017			2016
				(unaudited)
ASSETS
Current assets:
	Cash			$	45,380		$	54,027
	Accounts receivable				765			554
	Prepaid expenses and other current assets				1,157			1,303
		Total current assets			47,302			55,884
Building and land, net					16,736			16,896
Media library, software and equipment, net					14,436			12,861
Goodwill					10,609			10,609
Investments and other assets					10,969			10,946
		Total assets		$	100,052		$	107,196
LIABILITIES AND EQUITY
Current liabilities:
	Accounts payable and accrued liabilities			$	5,215		$	6,672
	Deferred revenue				3,059			2,434
		Total current liabilities			8,274			9,106
	Deferred taxes				--			553
Contingencies
Equity					91,778			97,537
		Total liabilities and equity		$	100,052		$	107,196

GAIA, INC.
Condensed consolidated statements of operations
			For the Three Months Ended March 31,
(in thousands, except per share data)			2017				2016
			(unaudited)
Net revenues
	Streaming		$	5,209			$	3,229
	DVD subscription and other			575				601
Total net revenues				5,784				3,830
Cost of revenues
	Streaming			743				649
	DVD subscription and other			77				64
Total cost of revenues				820				713
Gross profit				4,964				3,117
Expenses:
	Selling and operating			10,465				5,726
	Corporate, general and administration			1,352				1,478
Total operating expenses				11,817				7,204
Loss from operations				(6,853	)			(4,087	)
Interest and other (expense) income, net				44				(36	)
Loss before income taxes				(6,809	)			(4,123	)
Income tax expense (benefit)				(629	)			3
Loss from continuing operations				(6,180	)			(4,126	)
Loss from discontinued operations, net of tax				-				(3,498	)
Net loss			$	(6,180	)		$	(7,624	)
Loss per share--basic and diluted:
	Continuing operations		$	(0.41	)		$	(0.17	)
	Discontinued operations			--				(0.14	)
	Basic and diluted net loss per share		$	(0.41	)		$	(0.31	)
Weighted-average shares outstanding:
	Basic and diluted			15,153				24,531