Gaia, Inc. · NASDAQ:GAIA
Gaia — Investor Presentation (September 2016)
19 slides from Gaia's investor presentation, Sep 12, 2016
Slide 1: Investor Overview Presentation
Investor Overview Presentation Exhibit 99.1
Slide 2: Forward Looking Statement
FORWARD LOOKING STATEMENT This presentation 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
Slide 3: What is Gaia
WHAT IS GAIA Global video subscription service (SVOD) Over 7,000 original programs and curated videos 93% of content is exclusive to Gaia Worldwide rights on 90% of content Unlimited Ad Free streaming (no additional charge for multiple screens) Unlimited tethered downloads as part of subscription 1
Slide 4: Gaia Positioning
GAIA POSITIONING Niche specialty service Rides trend of linear TV development toward specialty (e.g. NBC >> CNBC >> Golf Channel) Positioned as complementary to entertainment-dependent large players (Netflix, HBO Go) 70% of Gaia subscribers also have a Netflix subscription 60% of Netflix subscribers
Slide 5: Executive Team
EXECUTIVE TEAM Jirka Rysavy, Founder & CEO Founder & CEO – Crystal Market → Wild Oats Market (ex-NASDAQ) now Whole Foods Market Founder & CEO – Corporate Express (ex-NASDAQ) Former Fortune 500 company & largest Colorado company, now Staples Advantage Founder & CEO – Gaiam (ex-NASDAQ) now Sequential
Slide 6: Category Momentum
CATEGORY MOMENTUM Source: Digital TV Research, June 2015 4
Slide 7: OTT Video Service Subscriber Forecast
2016 2020 North America 128.78 154.65 Western Europe 52.51 90.11 Asia/Pacific 21.72 29.92 Latin America 9.43 16.35 Eastern Europe 3.19 5.61 Middle East/Africa 1.92 3.30 218 300 OTT VIDEO SERVICE SUBSCRIBER FORECAST (MM) Source: 2016 Parks Associates 5
Slide 8: International Strategy
INTERNATIONAL STRATEGY International rights for 90% of content viewed Currently have subscribers in 120 countries Language platform launching Q4 Gaia international subscribers 2015 26% / Now 33% / 5y 50% / 10y 60-65% 6
Slide 9: Market Opportunity
MARKET OPPORTUNITY 7 300M Global OTT video service subscriptions by 2020 165M 11.5M Gaia Target = 7% (1) Gaia Segmentation and Market Size study 2015 Willing to pay a subscription & interested in at least one Gaia topic = 55% (1)
Slide 10: Net Promoter Score
NET PROMOTER SCORE 8 Sources: npsbenchmarks.com 6/6/16, Gaia NPS internal survey 5/31/16
Slide 11: Mission
Mission Create a transformational network that empowers a global conscious community 9
Slide 12: Seeking Truth, Yoga, Transformation
Seeking Truth Yoga Transformation (coming October 2016) Transformation Network 10
Slide 13: Member Profile
MEMBER PROFILE SEGMENT PROFILES Seeking Truth Inquisitive intellectuals seeking information outside mainstream Yoga Yogis who live the yoga lifestyle on and off the mat Transformation Open minded optimists pursuing personal transformation TARGET DEMOGRAPHIC Consumption across segments 50% Female / 5
Slide 14: Partners and Platforms
PARTNERS AND PLATFORMS Subscription Sales Partnerships Cable Partners Gaia Reseller 12
Slide 15: Business Plan Overview
BUSINESS PLAN OVERVIEW Subscriber growth 2016 50%, 2017 & 2018 80% 1 million paying subscribers in 3 years Pre-tax income at 40% of revenue in 5 years Cash contribution margin 90% (now 88%) Negative working capital Prepaid service, A/P 1-2 months, no inventory, returns or refunds Fully funded 13
Slide 16: Content Capabilities
CONTENT CAPABILITIES 93% of Gaia content has exclusive streaming rights 80% of viewership is on Gaia original content Full in-house production capabilities Hedge against rising costs to acquire content 14
Slide 17: Gaia Campus
GAIA CAMPUS 15 150,000 square feet 12 landscaped acres Deeded water rights Full-service cafeteria, gym Book Value: $17.2 mil
Slide 18: Profitability Reached at 123,000 Subscribers
PROFITABILITY REACHED AT 123,000 SUBSCRIBERS(1) 16 (1) - Represents pro forma financial info for Gaia operating business. Q3’2015 presented due to profitability focus. Prior and subsequent periods reported losses primarily due to investment in subscriber acquisition efforts. Presented for illustrati
Slide 19: Summary
SUMMARY 5 year pretax $60 mil or 40% of revenue 5 year EPS $2.50 (with 15.1 million shares outstanding) Fully funded Negative working capital 17