GAIA - Earnings call transcript Q2 2024

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Operator

Good afternoon, and welcome to Gaia's Second 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, this 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 management undertakes no obligation to revise any statements to reflect changes that occur after this call. Actual events or results could differ materially. Gaia's on risks of identified directly the and Risk earnings section to based and company's in release SEC. All are on press reconciled Factors inherent report GAAP in referenced comparable involve uncertainties, of call non-GAAP statements financial current filed most in the expectations measure. management the Form measures These XX-K annual today's with are latest the including company's those the only contains as of also information time-sensitive and X, is accurate the call date of This this XXXX. that time August broadcast,

Finally, call I Relations a Investor this being to Jirka Chairman, over a would proceed. recording like call and Gaia's the that on website to Gaia Executive at for remind webcast Please available replay conference Rysavy. everyone ir.gaia.com. I will will made be turn is now

Jirka Rysavy

Good afternoon, everyone.

for we So momentum. in our build increasing to quarter, continue the

which the million. revenue rate the same grew second our by During to we did and quarter, seasonally slowest, at first XX% we is as actually in $XX.X

We quarter. expect to the be in third the XX% about to during fourth and similar then quarter increase revenue growth to

improvement health still XX% to last The cash raise million $XXX,XXX our used months, equity. $XX is $X.X member have subsidiary, ago of our $X Igniton worldwide and raised the which $X.XX per technology. on million Gaia in rates delivered investor the $XX recently share. Free from This was million technology top million invested Igniton, with exclusive cash the uses for count Including for XX% cash Gaia expenses flow retaining license we year. In was of acquire to quarter. from in XXXX, Igniton of $XXX,XXX X million, coated concentrated to $X.X for longevity. for million from microchips for nonrecurring of means can release similar transmitted food control some TV Gaia delivered an the the during connected year quarter supplements the $XX and embedded to and improve memory device. the in the example, last Technology improvement from we the cognition, members, up by a the by sun grew last year to quasi-particles be we by various outside XXX,XXX during quarter, as from loss quarter like,

will Go And now more business about the James speak ahead. advances.

James Colquhoun

and everyone, Jirka. thank you, Hello,

Our our to QX ongoing results reflect commitment transformative delivering and our content growing community.

the XX% increase revenue and second free we membership an XX% consecutive whilst positive flow. of During a fifth growth traditionally our quarter, marking also cash achieved slowest, year-over-year, our in quarter in

existing a grandfathered July, positively have third-party QX also to have partners, pricing. our on The strategically members impact to We implemented moved was which the ensuring align we with to of to end and in price this our for increase revenue members. Traditionally, timing QX we expect by disruption from old year. starting new increase minimal of our the members

of the are increase members time we be test a would pounds. new the price we company. all QX British will currently for However, this roll we Should history this for in the be done price testing increases all out which have Great first members onwards, in from successful,

marketplace.gaia.com. Gaia workshops the Additionally, retreats potential community chosen our highest excited only powerful our Rica but on as launch public teachers are member introduces of engagement, and training entire officially business. today, healing out Gaia's in courses, Marketplace quality also delving connect will to and the practices community, creating initiative not you one's strengthens commitment Gaia and a global products can exceptional in and research alternative This curative and find at of awakening platform. Members Marketplace revenue transformative by we and impact. from and civilizations the conscious community Egypt, an the initiative to about leading announce engine from community. continued to base to events, to for stream experiences also like-minded tours have to offers globe; with underscores for Gaia members Costa the backed into company's access across Gaia conscious Gaia Marketplace exploring this transformative from more programs,

the execute of on on cash and to rollout increases our the initiative, in making Looking of and of the generation year, tier growth our member ARPU. we the end on free higher will through annualized members our expanding our flow forward scaling continue number premium pricing, overall, Marketplace new increasing improvements in

financial insights. Ned CFO, provide Our will now Preston, detailed more

Ned Preston

Thank you, James.

in up $X.X year-ago the for of year-over-year $XXX,XXX for momentum ago for the million Turning in second second and June the cash net now ended also share, in delivered million million, as improvement XXXX. XX, prior from of finished to of or was XX, per $XX $X.X cash results loss from $X.XX quarter from second million increased period. $XX.X the increased June line Operating million the up second XXXX Member is quarter June from of representing months XXX,XXX $XX.X XX, for we've period to This $X.X XXXX. Gross continues year the period. sequential the year growth. quarters. Free or quarter. quarter. prior XX% X to flow ago expenses, our nonrecurring as Revenues our $X.X first the million, grew $XX.X the a million which first the financial months in million quarter negative marked was negative ago XXXX, X the as X the quarter in from members profit flows XX% account year at to fourth same up top XXX,XXX $XXX,XXX, the Including

cash last an improvement of the were growth flow. The second member both of million $X over months, top positive improvement on our million during quarter and revenue at XX%, fifth delivered XXXX with the stable of in was flow free cash of $X.X XXXX. X consecutive quarter In free

$X.X my comments. the of Jirka? line million completes now I'd to XXXX, million As credit. That over cash Jirka for closing his was with call like unused XX, to an balance June of our summary. $XX turn back

Jirka Rysavy

Yes.

ARPU per for employee open to generate growth this flow. And profit and remarks, gross cash to and Operator, continue positive we please? growth annual questions. free and So for the increasing revenue the summary, a call I with like our increasing would expect rate, concludes continuing of

Operator

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

Mark Argento

walk that questions Can your British was A your Can would off with talked process the out price pound few that walk little some different and through plan? what increase. us align through again, that kind a previously about or to plan we'll partners. price the the then kind some Great with you're price of just with of you Maybe us shifting then be But here. just start James, I like walk and subscriber the Sounds new know Britain you increases? through denominated. actual the taking bit helpful. about the of just you us kind

James Colquhoun

Sure, Mark.

we And currencies to members, increased for for pounds members in we Great all, QX. intended that of British first new intended euros our in USD QX had in new and And is. of we pricing increase So increase also. price to in had price world rest and

until However, terms our third-party up start the of just in lining of that price partners. QX was pushed increases with

existing our testing QX. With pounds, ever, increase the Some biggest time until the Amazon, are for to not for was able partner, increasing members. first Great all we price British of them, like

that in to case, on considering losses. for is that margin to then currently As an But a that existing delta legacy increase Great be for company, we're the all a members members from pricing. the we we increase and we increase have relation will testing grandfathered on any increasing We're If British in members -- successful traditionally anticipating all the QX would make period. the anticipate pounds. in

So more hope for information on. that the as year on goes

Mark Argento

just or you terms in anticipate the of right do And a cadence U.S. British focus pound? in the similar now

James Colquhoun

So rest test after in of rolling price to remaining world losses, Great other we on anticipate increases out and currencies as pound then British countries. the USD member impact we'll well

Jirka Rysavy

of plus, the in actually to the about to in Kind so in the we it right, difference try the more GBP was U.S. U.K., currencies, dollar. it targeting because X catch up probably $X -- We

a the $X targeting -- it's but than so U.S., U.S. the would So the do we in increase higher we're U.K. about in in

Mark Argento

think how that? do you guys roughly that about a blended kind average? XX% Is of Or

Jirka Rysavy

parties, I probably accurate. mean is probably But XX% of then $X on the currency, this Yes. you depends the some XX.X%. is it if kind third about take on

Mark Argento

see I to Great. kind it's it of what about Think got in incrementally what this meaningful that is run to revenue generate of And Does just adding it, of coming terms in early know to incremental year year? up What year? but and Is next Marketplace. business? year? you just a those? and this kind then more are expect terms of testing meaningfully should quickly we revenues your of expectations

James Colquhoun

Sure.

we've beta today. primarily in testing until So Marketplace up been

on Based over the we're time, because the sequentially announcing there was the is our our Marketplace beta a contributed attributed. to We our our that to to see opportunity release today, do member prior optimistic how went from entire growing base. of revenue that So out rollout of Marketplace. testing about revenue typically groups, release earnings

So experiences. revenue and from most we retreats of to the come anticipate

that And we'll Marketplace. so now revenue sales up we if deferred retreat building take in be in for QX,

and instance, in be QX. in of much would we QX also take QX, that majority hit for which a revenue, that So deferred the QX, "sales" now and of would

that anticipate stacking rate of his and digits growth as mid-teens like where to will XXXX effect had sort we of increasing into as the we growth contribute Jirka double So attribution see a marketplace see from that well. price throughout in in alongside to we increase, our alongside increase that price we hinted script, go currently year. And the mid-teens

Jirka Rysavy

ultimately should we a the community, of And year. our to kind Gaia of end next the sorry, by community community at the be community, plan goal to the of Mark-- with conscious launch a You actually part worldwide. look actual would as Marketplace

And marketing marketing, of basically that. is our members. of no separate We basically so It's spend kind no part expenses. only to Marketplace

of e-mail on being kind there's and the site. So

increase to have we of now should being about even that quickly. breaking probably people. pure so X a because It get third even staffed use pretty because to and just it's the losses don't contributed revenue we It's we will So the break already pretty not But ARPU. quickly yet. some

as kind of look the So when at I community. of at it, it beginning look the

look global people, that's how we of it. at So community like-minded

Mark Argento

Good. me. one The last for

the You've how some this? -- concept this Is some you little is what of additional point? think that are a you time Is here, at it? it going this Maybe can right, you product it I'm and guys monetize through mentioned this commercialize over you Igniton, be bit that a think to capital. invested pronouncing talk and to able money I have raised

Jirka Rysavy

that assume never We used It's it particle monetizing that to known a would subatomic next the but get was ancients, from is we'll mentioned, stabilize I which and year. the as sun, of concentrate kind way. start technology,

actually published the food now, within the which memory typically, studies, tested So was this XX% And peer in the days. supplements, XXX% were medical in it the years. embed we, of to the right X over improved review they results And journals. last XX

yet. But we Gaia it's a device at coated interest. it of idea deliver microchips very is the and lot some connected release using significant, So through can kind on monetizing of of ultimately, TV it can not it device we Gaia, the increase that We're broadcast.

years as employees. we did it it's obviously so part, outstanding. And results The always get promising. are few with off was our but for sample People very who that a a

And cognition. so also brain improve capacity

So but promising, we raise it's but of it's to very decided money. kind why some that's outside early,

flow free at chew additional cash committed doesn't we're So to because this Gaia Gaia. much pretty free flow cash on

James Colquhoun

the the use just that the and embedded on these would are Mark, and X has to also potentials add that, suggested supplements food cases just Jirka, X for technology. microchip that Jirka I

very this announcement have for exciting this quarter. that we it's So

Jirka Rysavy

in We of one will and the Marketplace. launched be Gaia will product channels of launched it supplements, the form probably be -- as be also this will in

Operator

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

Thierry Wuilloud

that to Mark scale large covered I'm maybe to very this spots kind. Egypt you obviously mean how or the looking offering maybe whole is is there. membership going up challenge really base, working? it or But you trips which few do see Can that that to it be at point? a offer of a at quite I Marketplace, on to

James Colquhoun

thank your questions. Thierry, you for

And it my we that time. book Marketplace, might retreat into previous we the with sales mentioned or future as answer, quarters would be revenue deferred this anticipate over we happens. taking a of happens building now I like lot the when in be tour the slowly So way

our we of our the live different in segment this how a over to we're mentioned market tours, testing of move sort also the audience now our going array shows love. beta cater of particular, -- to it's the help in now in about courses, XXXX. With terms tentpole a mid-teen So this training of different us marketplace and experiences, into very of the growing applies be particular, ancient members opportunity test Egypt. have towards regards base in in growth we'll But This interested of were programs, promising, varied on of that tours, retreats, to to to you member of series, our segments something of is one segments our civilizations. small content grown and excited member and to that and our events have base our many is that time

members see So able cater to we promotion offers capacity to member different in and anticipate discounts subsets. on-site promotion be we'll and attribution in-app time. e-mail and these to have build with and momentum revenue that experiences through able these that And exclusive that offerings promotion, to target contextual our all members reach notification over we to and and you'll these these be given

Thierry Wuilloud

Great. Okay.

increase, terms GBP price you increased by X, by And attrition caused as $X or the I trade-off? do expectation price balance of you was wondering, could expectations have do you do be to you of the what have that? kind in by the like an On how

James Colquhoun

really any we have Well, benchmarks. don't

certainly increases. price to there's benchmarks no that other that So publicly relate companies published

done acquisition, we've tests doing pounds anticipate past when increase. Great the same we out make delta the these this see into we we that in as and do be on terms roll we would However, further. the in And of British we that the

we're aiming And currently so that's what for.

Jirka Rysavy

Yes.

never we members. before -- have money We existing for raised

XXXX. the new about For raise for we did $X members, price in

and XX% of basically in but out. decreases about X% so in conversion more kind And increase was increase was it conversion that of the losses took about kind and time price

So was the time for that the XX%, gain about XX% XX.X%, new members.

not have members. all for known We existing our

for wouldn't days. this We XX have probably know we Britain, test going in and another

Thierry Wuilloud

Okay.

Igniton, about talked food about Finally, supplements. you

product You you maybe some microchip. that? deliver closely are would supplement launching way seems How substance. -- talked that close or a about to more the the It the straightforward from revenue be from how to or maybe food

Jirka Rysavy

question. I answered Well, that just

before to next the in but studies so We more it. We're the do year. -- expect have We can target we quarter, can just we do do already our even technically our it to Christmas, plans some year. place it -- might equipment now. that able it for effectively to is but early and We be fourth finishing do for all do technologies next but

Thierry Wuilloud

market channels you to have use sense you're a what do And going of to that?

Jirka Rysavy

channels, be of several would on different our which Well, one there Marketplace. are I mentioned them

a of targeted in has countries hospitals distributors labs. network mostly practitioners, Igniton research Second, XX and

Igniton we over which would And few channels, so would use our existing there in days. and be finalized the XX channels be will other next a

Operator

Our next with question Broker. comes from Vadim Freedom Merkulov

Vadim Merkulov

question your your for My share level of next a targeting this what of library? library. Can year percentage your you as media your is you expanding and year are And about media revenue? plans Yes. possibly investors

James Colquhoun

Okay.

to Sorry, streamer difference XX% media the library, of as With one for regards unique we your to I'll we I own of here, confirm. on in investment catch didn't there there. Ned our so the It's have also pass quite points name some library. a is James of that more of over specifics content CEO, sort to and our

of XX% for We rights also and Currently, of circa over production. have our third-party own our revenue spending worldwide any on licensed content. content content XX.X% we're all

Jirka Rysavy

I XX%. it's do of on So about direct because total licensing, say right? that's probably would also we kind

James Colquhoun

it the total, XX% Jirka including potentially third-party to media on time We'd about asset. potentially library content we our and business spoken, content, on I, strength owning languages it having Jirka content new anticipate as library number being adding and valued. and We and produced and our into balance markets years over leverage to XX.X% that huge Like and able also to a grow Ned much produced expand. a of did said, on media We've content. in ago, XXXX, that XX%, have as sheet see new the it increasing percentage and valued acquired we

Ned Preston

our seen language some Ned it's Vadim, IR Yes, Investor the question. or you've website. deck Preston. probably presentation Relations on in Yes. Thanks our for

person, $XXX it sheet, value QX the We this and notes we quite make I with that's of auditors from media least who's library. transitioning that at number. past met proud balance know our On solid that us from anyone And some million. we're a in

to our also media data out $XXX its content. and what long part what to the And that if that of our that, it content, will the periods lot grow middle see retains the formal stand or We year. comfortable here lot looked value fact of add doing time. add gone in slightly James' million to We value new feel library. that have lot will a we library it shrink, is at a of be even to revaluation our that And thus, back could a of timeless. time, we presentation earlier point, as over higher. But use of evaluate really anything, is deck, in content A can over you doesn't that

So to as about I'd further. in to detail Freedom Broker and we the know talk with more get you it team you love

Jirka Rysavy

we our pretty And I its didn't mostly say much independent would They labor. produce generally differently streamers. hire called what's spot producers and hire on very the because than anybody content producers

on they the where So to is do. what what we the sheet in overall content, more margins the gets twice than balance book have

budget to when that We like content a use because much we also be if to would full-time studios our get roughly, the Colorado. cost we for move budget half PBS what we pretty who from would employees know as a us produce discovery, only them, we about

So see you you can that. otherwise, -- can also

would would would balance to have else -- have GP of higher kind is see probably a than what because have sheet maybe cost it. our number you other somebody and sheet what they they to put would balance half X, the contribution content, we you compared what Xx see up we X.X in of that If would streamers,

So it's advantage compared our big to future.

Vadim Merkulov

And another... have I Okay.

James Colquhoun

we ahead, Of did Vadim. course, Maria, Vadim? go drop or did we lose

Operator

are I you muted? think, Vadim,

Vadim Merkulov

me Can now? hear you

James Colquhoun

Yes.

Vadim Merkulov

Yes.

said, activities I see quite negative. can is for that Can largely I As me, explain it from you cash operating your negative and flow net is please?

James Colquhoun

QX. For

Ned Preston

Yes. Yes.

well months, had we of cash quarter, the So flows of hit that restatement were as you in the number end operating of And our flows some as cash over through the first positive. the us quarter launching nonrecurring left free the expenses we into X are second a In positive. went at that work see, Igniton. QX as from announced a can

why cash were the flows that's for the really of core operating at negative So quarter.

get to quarter. on expect track We the that third back in

Jirka Rysavy

a as at We, cash Yes. year, positive the beginning we flow, on which and the company, we be the positive. of said was and we expect to kind free offered of based

So for we every generate quarter quarters. X cash last the

Operator

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

Jirka Rysavy

will we Thank you, look you forward to third quarter, with everyone, you joining, and when our the will which report end October. of for be speaking at much. Thank we very

Operator

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

may disconnect. now You

Gaia (GAIA) 5 Aug 242024 Q2 Earnings call transcript