GAIA - Earnings call transcript Q3 2021

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Operator

Good afternoon, everyone, and thank you for participating in today's Conference Call to discuss Gaia Inc.'s Financial Results for the Third Quarter ended September 30, 2021.

Joining us today are Gaia's CFO and Office of President, Mr. Paul Tarell.

Following some prepared remarks, we will open the call for your questions.

Before we get started, however, I'd like to take a minute to read the Safe Harbor language. Safe of under XXXX. the Litigation Private constitutes Act Reform following Harbor the statement Securities The The that risks involve discussed numerous matters today assumptions, and include uncertainties. forward-looking statements losses, to, These Exchange retention and Commission, Securities on in and uncertainties reports business include our not and acquisitions consumer Form limited including risks Form from but conditions, subscriber our are rates, XX-Q. historical XX-K and detailed competition, other costs filings changing preferences, the general and time-to-time with update or publicly any Gaia forward-looking assumes to no revise statements. obligation With would over like Paul turn to to Gaia's President, that, of now I the CFO call of Tarell. Office go Please ahead.

Paul Tarell

We Thank believe quarter quarter XX% you, the stomach QX and of we afternoon, up costs member and paying million to when of revenues members, year acquisition be battling XX% steady the bug. he reflected as in everyone. I'm ended which up considering Cody with to Jirka XX.X%. million, or $XX.X today result for heart home margin were good currently gross Revenues $X.X third the Total last at solid at with the revenues. XXX,XXX is pandemic. quarter were stepping a during year-to-date

on and market digital calls, earnings to be continues crowded As the noted competitive. we've prior advertising

to of season. improvements with able drive our were paid strategic while concerted growth, level. market, challenging result media was This primarily our target to retention globally. We're member Selling elevated to XX,XXX overall of ads While XXXX, overall on initial within over reduce drive or member million trends. staying ambassador quarter our our media paid we to to COVID expenses, XX% G&A program continues during to as $X.X were execute the it compared quarter from period scaling million, the on is base in the CPA recent marketing Despite continuing net the trend plan on in in revenues, spent dependency the expenses focus third saw and historical acquisition were is our in and corporate levels revenues. of the costs member during a and our the still favorable X% $X.X the or operating excluding in we quarter

per million. balance million in share months content the increased turning revenues in sale XXXX, $X to we The the quarter third year profitable revenues, during $X.X overall current increasing from share. ago the compared consecutive or in positive a campus. generated our expenses the $X.XX reflect eighth marks quarter flow our XXXX to and million improvement during revenues of operations. our Cash increased year million $X.X of XX% or QX, total XXXX the of of XXXX. we a quarter September during XX% $X.X XXXX $X.XX while our improve we've from prior improved compared EBITDA from operating generating the nine excludes of to of the to current positive from a the XX% or to operations in of in For to year The in cost quarter, the generated stabilizations We as the investment our This planned, million million income through We $X.X the the flow the year net $X.X generated cash ago the incremental also to $X.X during an of EBITDA of year XX% $XX.X to $X.X results XXXX. year cash XX, portion consecutive $X.X since compared structure flows related year $X.XX revenues ended revenues of of quarter of or of period. of ago quarter. the line EBITDA million million we sixth quarter which year. million third the million recorded quarter have million corporate per income of to period, generated net gain of in or share Year-to-date, compared reflects generating XX% to EBITDA. prior Year-to-date, $XX.X our

continue our library production see on plus With to programming. allows our to us in per our to investment of a our on we monthly cash quickly. viewership in-house, our end-to-end fully percent original investing focus XX We that cost continue content at content hour recoup initial

content couldn't also and $XXX to In from that, is sold up addition our investment, on viewership the of promoting to I was center state which events premium initial recovery operator. of help Events promote like tail overall those that the Plus results investment. GaiaSphere, of call Plan. With would at previously quick on name been plus called person. live Live successful long our early the We attend to Access open focus crowds, for return of annual us allowed subscription September to in October what Annual benefit our content art improve we to this the Events have to our events the in the existing for our our our The members positive. we questions, our rebranded events out Plus

Operator

we'll our Wold question first [Operator from take with Eric Securities. And B. Instructions] Riley

EricWold

digital around on Paul. for market Is be spending ways how tough a more just adapted Thanks. watch Maybe efficient, how Good that? competitive. questions. afternoon, plays thoughts you've spending obviously; little additional bit do your one I you of continue couple the talked you out. the and guess ad back better of cutting spending function on A about looking the market a being to the or it actually to to same

PaulTarell

media to cutting purposely pockets We're of I being take see out. market paid we spends very as volatility works can on the market. the we of, market advantage that to the think not opportunistic, definitely we're see plays similarly back how stock

ebbs quarters, back it the by the and the act poised above flows And as and get so our thresholds, pulled we with and starts to the and but design. through supply the months demand we're weeks when to

as helps in is we've out, the really it's and which and bring the this of investment, think member I the cost have in perspective. that need focusing seen upward both that pressure my media, don't to really down the a focusing CPMs, improving it we building our our ambassador us offset of on from because on from guest this we been But I CPA. focusing also calculated prepared as But long-term from, it which program we a on So combination been we've the dissipating rates to we've as conversion see media. mentioned our remarks, paid relates message to as

So we're on right track.

EricWold

found event to the are you improve driver? conversion best to what methodologies And

PaulTarell

to they marketing the to X,XXX on, are connecting presenting that we to with the that come is the to the an site. in merchandising, they Well, that that library we're look I wide critically site variety of of terms us payoff payoff is infrastructure the span when very And ad think our because to this be we the much that they to one-to-one, net ad when of site's topics with site. biggest making very And doing message more the targeting crisp going from what so ad. to been thing that someone do the clicked pieces the able call content, investments relevant important in have to for we're does, when comes our be some really get to we've

EricWold

they're a can really assuming lastly, And members then success any previous metrics the signing of that signing early of up? the weighted terms the of towards annual provide in they've progress little are you of ambassador program, I'm just kind members, and of how been around maybe it. there. maybe on successful and in Got that up mix help descriptions, more

PaulTarell

there's SVP of in we've a last answer building and been getting of up. that sales But up joined the there. I'm Sure, March I quantitative has yet, kind share been our lot just scaling team will to question of not since it data your the part of and ready ramped as

towards and seeing focus are what paid on the they ends plus up makes we and part it get events getting bias ambassador based because as of get our We paid. sense annual a

them a base to so up on from rather And trying base. a revenue them a than building to quickly cold subscriber we're focus start, ramp

towards plans. biasing dollar higher So the

Operator

Street. We will Argento hear from with Lake next Mark

MarkArgento

Office on morning, as Paul, well Good President. congrats the of title new

unit dig a it's or So Wanted in kind exciting. subscriber economics little economics. of on bit to

Just me. for here bit a little translate

sounded stable it either improved. like retention or as an So

fair other words in So even that moderately statement? again, churn Is improved. stable or maybe

PaulTarell

staying you as look at our of function it when as percentage, a absolute is of numbers Yes, improving the flat. the percentage members actually month a base, each means we're of lost which member

this means typically as up The progress. forward is each where, continue looking that devices. replace obviously time period for are month sign to grow, year, members new a less to consumers we have So we get summer not to especially to

was was reemerged. to as those it relates That historical in school, kind that the July and that seeing the So gone XXXX, to of and to you we be back are kids Labor about we of demand we first this pattern Day, talked But see August, once as get customer start getting some our interest saw were August fall, it call into to you which on in more the part of new starts acquisition. challenges.

MarkArgento

when it monthly? you is better of shot seasonality have and some or doing that there an is annual side, contract customer versus -- can new the at acquire on And a more

PaulTarell

look normal can what being typically quotes. by material. back coming to on doing year the just the into some in fall, think actually versus the take what bonus we summer echoes I skew time monthly Yes, we've I it been we said call focus as to around a work challenging we doing annual end rate the But more

up back $XX.XX with on yes, bonus to up we people of download get us benefit go we're cash flexibility and which be ability year we to year been tied present so -- the and content or actually But it. gives may we've $XX able incremental that times for, at to revenue forth. PDF for which sign of way a can influence that we want exploring some to retention plan in the as get not what one it, to so able looking you So a something toggle absolutely the we're based a how different month which the a there influence footage

MarkArgento

what's And or or producing to versus also content, are third live anticipate to own going for of talk party but be, your in-house, live a do going you the bit trends then Great. own and versus or quasi more or and are more you type that scripted just little is see just produced the about I is your to mix? more going pre you content in both forward second, content content it and mix to maybe -- content What already going guys self content, know produced content be content? and costs scripted costs. buying and content pivoting of studio

PaulTarell

bias the to for further content favorable look out really for a towards doing demand. production we content to And topics so interested the primary more for that much We horizon. so our just spend, original typically of little targeted because ability perspective, much us. use a it's but Sure, a bit licensing two it's expansion produce in it's things, productions majority into into economically us more exploring a from we're from time one, to

license it the area to And date. the to the we done we're makes able So focusing up English before German, have content of original sense we ramp what to 'XX, signal building with a is going second be our into get Spanish interest focus better for of as is on to what and there out non us supplement production. then French to in we where licensing on it languages,

us of able So direct as into us our think then to get the where biggest is. opportunity internal to to resources mine quick as start areas be to those to the is possible, to for data really we the either production market

Operator

Reyes next We'll take from our ABI question with Ryan Investments.

UnidentifiedAnalyst

my you me? additional have a deserved been congratulations want can I one hear well for answered; Paul, promotion. questions of lot Okay. I just one. my And add have to Hey, too

as an to to supply gift base? the chain goods membership a opportunity sell idea Gaia on shelves, there memberships is trouble issues Given the unique and getting physical

PaulTarell

before for want a know kind But I consumers want there's not. that typically pressure for opportunity, Christmas push retailers historically goods mind the deciding Yes, on I they have or it's market that good, there's really is what get yet. through ship. I think whether can there's big the an speculate on ad of Christmas the set into that don't want virtual definitely they Thanksgiving seen people a to what puts week they a physical that that lot from of we've to don't

some ad to indicating So promote if plays just on gift be a way normally to during this possibility. know We market, out. able favorable we what to last able it's dissipation in the But plays the shipping the the if actually but see how also hearing might opportunities the and opportunities, that not minute period. only with dynamic headwinds see being that out holiday everyone you're we from it challenges, would going some don't be of that that's for you're a

UnidentifiedAnalyst

Well, loved the reaching mix ones base family to current guy their as experience? about involve out and of an and idea what the or friends membership

PaulTarell

tenants Absolutely, one that's is out. of get share a word can this friend, kind our of a we content friend, ambassador refer the core our invite of program so that or

does Thank haven't message over remarks. this but turn And as now something like or it's in our Mr. definitely Tarell that, effort secondary communications session. back our would this of to email members. We at promote concerted plan all our conclude time, to formalized I a try tertiary or call closing to question-and-answer the to for you. that a to

Paul Tarell

Thank today. in great forward day. speaking you your I you, February. with has And results Cody, to everyone late to QX everyone hope and we And for release sometime thank again participation a when look you

Operator

and gentlemen. This teleconference. Thank you, today's ladies concludes

at disconnect may for Thank participation. your You lines all this time. you your

Paul Tarell	Office of President and Chief Financial Officer
Eric Wold	B. Riley FBR
Mark Argento	Lake Street Capital Markets

Gaia (GAIA) 1 Nov 212021 Q3 Earnings call transcript