Business
Gaia Reports Fourth Quarter and Full Year 2022 Results
BOULDER, Colo., March 06, 2023 (GLOBE NEWSWIRE) -- Gaia, Inc. (NASDAQ: GAIA), a conscious media and community company, reported financial results for the
About this update from Gaia, Inc.
[{"type":"text","content":"BOULDER, Colo., March 06, 2023 (GLOBE NEWSWIRE) -- Gaia, Inc. (NASDAQ: GAIA), a conscious media and community company, reported financial results for the fourth quarter and full year ended December 31, 2022. “After a challenging 2022, when both revenue and adjusted EBITDA only increased in the single digits due to the post COVID subscriber contraction experienced industry wide, we have started to experience member growth this year,” said Jirka Rysavy, Gaia’s CEO. “During the last few months, we have eliminated over $5 million in annualized spending, which includes 36 headcount that were added over the past two years to offset reduced efficiency because of work-from-home mandates. We expect to see the benefits of such savings begin during the second quarter. In 2023, we plan to launch Gaia Marketplace, an initiative focused on our existing members that we expect to increase our average revenue per member with minimal additional marketing expense. As a result, we expect to grow and generate $7-9 million of cash in 2023.” Gaia CFO Paul Tarell commented: “The fourth quarter continued to be impacted by headwinds faced throughout the year surrounding elevated cancellations due to members that joined during the peak COVID period, as well as reduced efficacy in our online advertising efforts tied to ongoing privacy changes. Our focus is growing revenues cost effectively, including increasing the efficiency of our targeted marketing efforts that attract and retain high lifetime value members, while continuing to invest in content that keeps the high lifetime value members engaged and retained.” 2022 Financial Results Revenues in 2022 increased 3.0% to $82.0 million from $79.6 million in 2021. The member count as of December 31, 2022 was 759,000. Gross profit for 2022 increased to $71.1 million, or 86.7% of revenues, compared to $69.0 million, or 86.8% of revenues, in 2021. Total operating expenses were $71.4 million, or 87% of revenues, for 2022 compared to $67.1 million or 84.3% of revenues, in the prior year. The increase is primarily related to increased operating costs of our technology platform as we continue to integrate our business continuity initiative into ongoing operations and the integration of the Yoga International platform. Net loss from operations for 2022 was $0.3 million compared to net income of $2.0 million in 2021. ...