GAIA - Earnings call transcript Q1 2024

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Operator

Good afternoon, and welcome to Gaia's First Quarter 2024 Earnings Conference Call. [Operator Instructions] Joining us today from Gaia are Jirka Rysavy, Executive Chairman; James Colquhoun, CEO; and Ned Preston, CFO. [Operator Instructions] Before we begin, Gaia's management team would like to remind everyone that management's prepared remarks contain forward-looking statements, and management may make additional forward-looking statements in response to your questions, including, but not limited to, statements of expectations, future events or future financial performance.

These statements do not guarantee future performance, and therefore, undue reliance should not be placed upon them.

Although we believe these expectations are reasonable, Gaia's management undertakes no obligation to revise any statements to reflect changes that occur after this call. could results or events differ materially. Actual latest are management and statements identified SEC. the of based filed Form uncertainties, on company's the in Gaia's section Factors of expectations Risk report involve with those on XX-K current including These annual inherent and risks

time company's comparable information financial non-GAAP the GAAP XXXX. broadcast, as call contains time-sensitive the measure. is this in release accurate to of are reconciled today's This date All press call the that May only referenced in measures of earnings and most directly also X,

conference like is will Finally, remind replay website I would to available made webcast everyone on recording that a ir.gaia.com. this Investor Relations at call and Gaia's for being be

Please go turn ahead. will Gaia's over I now Rysavy. the call Jirka to Executive Chairman,

Jirka Rysavy

everyone. afternoon, Good

momentum, member XXX,XXX, count for on our the towards grew The increasing is continue quarter highest grew first an million, quarter. target build step of quarter a to growth good members, for growth is the We XX% revenue net to first net sequentially revenue member $XX.X our the for XX,XXX increasing one adding which and year. which the XXX,XXX from during to additional our

profit will in year. Free Go James this top business. $X.X of on grew And is speak first $X.X in advances million And employee $XXX,XXX from $X we loss million 'XX. $X.X improvement delivered quarter last of to last to first in more million $XXX,XXX The the ahead. cash million of now gross the annualized of per quarter improved first quarter year. flow the from about

James Colquhoun

afternoon, good and Thank you, Jirka, everyone.

specialized At of we improvements base. to cash transformational a yet world. member on to education in change to we believe of growing in We marketing have our trend power provide flow that, positive do continued growth And the content media underserved and the with Gaia, efficiency. executing

to Yoga journey. conscious niches therapies, our spiritual a and healing ancient and covers metaphysis, alternative collection of on from Transformation meditation conscious helping we life growth, their categories history with as ranging and and content defined guide Our media members

In headquarters to March, sold-out transformation our Immersion event Colorado in-person Boulder, at audience. our held a premier we live in

the unique the live highest company. XX,XXX of in the number history During the we event, stream X-day achieved attendees,

a we the Events+ from of to membership move life on available Additionally, driving on-demand richer connection new and an and with of cycle X tier in premium with the in our a basis. conscious events in and since transformative immersive highest ARPU October offering our This supporting increase live rebrand announced the members, of the our annualized focus on month tier our XXXX. our towards solidifying member achieved Gaia+ sign-ups premium workshops increases represents while base, our deepening experience and launch incremental

in marketing resulted a on annual and million our to revenue our in XXXX. direct-to-paid here focus membership campaigns deferred This $X compared of increase QX premiums

find on content During This the of and our our helps launching trained our journey the their recommendation habits. specific and first quarter, transcripts, engine. is an history their categorical implementation metadata members engine exclusive recommendation this rollout experience, on of Gaia and the AI AI-powered viewing we content product also engine continued based own to inside

Ned and be player our in leveraging improve key Looking more to the while conscious the further AI experience to growth, cash product as the positive brand on of space, share increases scaling our driving continues rollout on we focus over our initiatives. to for forward, and pass I'll flow as and and premium tier in to focus ARPU on help now it the delivering the solidifying transformational financials. media members still our Marketplace

Ned Preston

James. you, Thank

ago year-over-year $XX.X members we as ended XXX,XXX Revenues Xx XX, million $X.X XXX,XXX of million up of period. sequential $XX.X grew results year March of QX the from XXXX. XX, marked December line or Member to first This saw financial for March the also for period in XXXX, to from third than quarter prior XX% of represented our growth. quarter XX, to first million XXXX. more now what as in our the XXXX. XX% increased The count top sequential growth Turning

$XX.X Gross the $X.X generated or $X.X comes share $X in million $XX.X improved a million, million of million. Free with $X.X improvement $X.X company up year cash the first quarters. increased year represents to in comes from million profit a in a quarter $X.XX ago flow cash X loss million on of to to full the XXXX million and in negative improved per improvement ago quarter. the year $X.X the from closing flow million million Net a negative free increase $X were from million at in year a improvement million the and ago ago quarter. heels of year XXXX, which flows was loss the over first the during $XX the or share year Operating after $X.XX $X.X past improvement $X.X which per full negative from representing cash for million, quarter quarter period,

was consecutive quarter cash positive flow. first free quarter The fourth of XXXX our of

balance we great similar As million our for By members remaining March adjustments the of implement members euro our plan pricing $XX was second pound new line announced of pricing to in of in We credit. XX, an British new markets. unused million quarter, updates end for and our XXXX, $X.X with recently our cash markets.

That like his to for completes turn comments. call my over Jirka to closing now summary. I'd back the

Jirka Rysavy

Yes.

free this we expect gross kind of cash continued the continued obviously per for profit of So growth, increasing growth flow. of employee and increasing ARPU, revenue annual summer, generation positive

remarks -- And this our prepared is remarks. for

for So I'd Operator, please. questions. call open the the to like

Operator

Mark Street. with Our Instructions] Argento Lake from comes question first [Operator

Mark Argento

and would what from type of or -- you of about a bit kind price looks pricing pricing. in Could little on impacted the the taking base It what you I dig took wanted And perspective? how started of just pricing. be quickly of like a pricing what percentage point installed then or specifically taking more to are you in little markets? talk percentage overall subscribers

James Colquhoun

James question. your here. it's Thanks for Mark,

with increased over has price to speaking, increase XX% So our circa we subscription we've last and on XX% X essentially, time and euro annual rate. not some for a increased the X have now. GBP, had to and industry XX% about monthly years, Generally the

So offer we're market. we started the with end the last and quarter, increase, remaining the to of that of one increasing we current amount. By across prices be similar currencies we'll that to a this

this will be our new members. But only for direct members, for

they on members So price. prices, grandfather because with existing that us they back, and typically get the member if we our retaining new come helps that would and leave base existing

to help we progress as strategy the in continue us that's ARPU so year. So drive our increases that far, and throughout will to

Mark Argento

That's advance about helpful. are for a you month-to-month? what maybe typically little year in could And talk then up a versus you bit signing more percentage

James Colquhoun

So last we Typically, everyday on some convert a would beginning about we option. year, normal campaigns of end at marketing we where XX% ran membership monthly. annual annual, test basis, were XX% XX-XX, the the incentivizing

we've XX% seen are XX% made they monthly, However, campaigns -- a sorry, annual. I mistake,

we seen paid XX% and converting see we've campaigns annual. smaller campaigns where XX%, However, on XX% even where are directly people to

lock option more increase $X sort as side. QX has the we've advance. annual we of why taken deferred more campaigns, to incentivization member encouraging that the with some in seen it on of membership, so in in on base or comparison up these line bonus revenue people in the that into is QX million and direct-to-pay sign the the And lean direct is And because membership annual this to more

Operator

Wuilloud question next with Our Research. from Thierry Tower comes Water

Thierry Wuilloud

Yes.

question Gaia+. on on the would First be premium service

achieve it rebranded. a largest increase basis on mentioned other Is that? specific there are you took monthly You to just you since branding? Or the the steps

James Colquhoun

biggest perspective. a marketing the we James explain alone. here feel the the We opportunity a Thierry, Immersion product we mentioned, increase this rebranding. that and during bit the like I we I like of a premium we hasn't event this for about as month Conference launched, that put focus March, grew on month And on. we to since month membership based little from have tier been in the a something And again. on that just an XX% saw renewed repositioned used

the it's with opportunity enormous add a on the for this we're grow throughout to and So part members our and a premium this is we an happy grow ARPU. year. value results, think I tier as refocus of And

Thierry Wuilloud

it years? have basis? more ongoing to are an events or going X you're Or Does on X such at mean you Okay. still looking

James Colquhoun

it I demand. be, be content will slightly out from membership into and we $X honest, test on to we growing more in as of the viewership total, And on To say, about that year, closer to million base. $X learn does scale an is come would year. we'll continue This the that lot a to the increase which previous

produced. So watch people after it it's

lean to the for into. or more hold is we important whether not, think us still marketing I So

We tier legacy already. it of have as an is in incredible content premium amount that

Thierry Wuilloud

follow-up X Okay. the And just on marketing. then maybe

the rates have it Or You your to mentioned marketing. of come media cost better able that -- that marketing down? is target you're lower it it efforts? Is is just

James Colquhoun

were net the QX, in more in from double starting X,XXX that we something adds that to to we is middle the started adds helped our now I and we testing to improve the the of think we've to lessons has learnings some QX and more process on runway XX,XXX campaigns new get And improved last testing from year, market into net new improving into marketing upon, targeting and that this and went than and -- also segments efficiency. at QX.

So are learning the I feel the like combination performing it's best. that of and more into a just campaigns leaning

Operator

our call to At question-and-answer Rysavy session. to this like now the this Mr. back closing turn time, over for remarks. his concludes I'd

Jirka Rysavy

forward early joining, much. which look for everyone, Thank to our very you should you, when and Thank second in be speaking you report we quarter, with August. we

Operator

Call. you Quarter Earnings for for Gaia's XXXX us First today Conference joining Thank

may You now disconnect.

Gaia (GAIA) 6 May 242024 Q1 Earnings call transcript