GAIA - Earnings call transcript Q3 2024

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Operator

Good afternoon. Welcome to Gaia's Third Quarter 2024 Earnings Conference Call. [Operator Instructions] Joining us today from Gaia are Jirka Rysavy, Executive Chairman; James Colquhoun, CEO; and Ned Preston, CFO. After the speaker's presentation, there will be a question-and-answer session.

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.

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

Although we changes believe no this obligation expectations are reasonable, revise call. statements Gaia's any to reflect that after to occur management undertakes

SEC. annual events filed the are on statements of Risk and inherent Factors current materially. including with uncertainties, latest management based risks company's section or and results report of those Actual XX-K differ involve These the on could Form expectation identified Gaia's in

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

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

turn Thank now will the Executive to over Gaia and I you. you, Jirka over Rysavy. call Chairman, to

Jirka Rysavy

afternoon, Good everyone.

During -- improving the similar at first with profit margin slow, XX% the we from rate XX% quarter. the as quarter, the at time seasonally our increased revenue period the at grew by part at XX%. year same a of gross year Gross count which XX.X% ago Member to first third is grew X%.

year. cash The third this quarter which improved flow, positive free $X.X was quarter about during and consecutive our quarter sixth operating million the of

we raised least prices few the $X. Over subscription at for our months, the by our time members last for first in all history,

revenue from during now almost quarter increase speak will will quarter in advances million price business. for -- in the other flat, the about James quarter. current increase expect the to While the kept up the $XX.X our And our the the increase million initial the push more price $XX fourth count losses we from this member

James Colquhoun

you, thank everyone, Hello, Jirka. and

members our price of As we history, as old grandfathered members began mentioned, implementation for time first the typically adjustment the we on or legacy for a have legacy in Gaia's pricing.

in U.K. quarter. we at to the our Following include a of this third-party this initiative QX, expanded in successful the platforms pilot end

the start member members revenue is While set on to XXXX. we early This increases members data that our return already legacy the a that count, is QX, growth of we indicator it the as out QX, And strong impacted XXX,XXX encouraging this began price growth we'll are in temporarily in with uplift create will optimistic into very pricing move revenue. year At and subscribers. close decision to our direct over is our suggests for surpassing we momentum for expectations. a and

improvement QX, profile. Gaia powerful to Marketplace. of our our pricing a ahead Marketplace to strategy, scales we rise quarter our margins above from first contributions XX%, Looking revenue alongside full new gross as And expect anticipate financial we in

positioning as marketing team's over legacy base on stabilized tenured Additionally, resulted more increases stronger continued has we retention with past This our annual in for that in sets in pricing strategic our long-term out even attracting member new up substantial improvement members focus a months. us for together member sign XX the the roll up, base members.

with and even the more events, We're channelingevent. highlighted Sphere ever in including premium the Gaia our also hosted We event. sold-out QX X civilization ancient of to see events membership thrilled recent our live tier. impact conference largest sold-out and enthusiasm our QX GeanKeys

ever will this first up coming weekend, our heal have And we conference.

global This dubbing audience. to partnership our announce Gaia's allow excited with translation content for Finally, accelerate and process of us provider for will services. we're collaboration and the official to ElevenLabs adapting as streamline our AI-powered a

more be offerings. able accessibility native new of reach ElevenLabs efficiently to the viewers leveraging Gaia's the By in languages we'll technology, advanced enhancing

for remains the and existing focus annualized to membership initiative, year ARPU. price increases reach improvements premium and driving our the of on on tier of members, forward the our broadening beyond, in end growing the Looking marketplace executing our

provide deeper will our Preston financial performance. Ned CFO, insights Our Ned? into now

Ned Preston

Thank you, James.

Turning now September to our financial results XX, third quarter for the ending XXXX.

$X from ago or XXX,XXX quarter. million $XX.X September $XXX,XXX XXXX. of XX% increased September $XX.X quarter for the XX, Revenues standpoint from sequential marked year-over-year from year or up XXXX, year-over-year line in million growth. to million third This X% fifth of a our XX, top on as Member the up count grew period also to

-- driven profit $X or year at the in share, to the $X.X the recognized Gross of negative to loss credit share quarter million ago in year ago the quarter. absence $X.XX employee retention quarter in up from per negative third by million from tax $X.XX XX% $XX.X compared per $XX.X was million primarily the XXXX. increased negative quarter million third Net negative the of or

for Adjusting last million. ERTC improved million of QX in net $X.X the quarterly the recognized $X.X by year, loss

for last top X the flow cash were the quarter growth flow on million member improvement revenue third quarter cash the of XX%, million an $X.X In flow. the with cash stable during both Free delivered months, improvement representing free sixth positive $X.X of near of was in and $XXX,XXX, consecutive XXXX.

XX, As unused cash with balance our $X.X was $XX million million line credit. an XXXX, of of September

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

Jirka Rysavy

Yes.

growth generating growth gross the obviously of want continue We supplemented increases annual free summary, flow. we and continue revenue per which price This a by profit expect ARPU, positive well. as will cash employee be the for continuing to So rate. increasing increasing

open concludes questions. to This the would the like please? remarks. call for Operator, our I

Operator

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

Mark Argento

you took of what on you Did you of subscriber the then base? down dig kind maybe see if did kind churn get a the some initial it could moderated? the Or wondering there. bit Just we you experience little talk to was when increase, price just could what

James Colquhoun

here. James Mark, it's

to So price regards increase, to elements X this. with the there's

of for your then members. impact meat price the question it increase second we of of of existing acquisitions. think in as new all, I which terms there First members is for all, increase on And

making members, price when we new have then from and that the down delta acquisition which for foremost, seen we we period increase, increase as time First costs head QX. do and see it we especially into the we're increase a happen, settle for of so they and

churn the on to existing event cohort. regards With

So that Kingdom. for north the of far, And fluctuations. we were by surprised region, we test did QX, margin results very price we increase. that United significant the within currency adjustments the XX% In on to delta increased in some a We because of there. a cohort made had make we with

vast I encouraged direct. the And higher QX. end roll say, to party, platforms third at This our this partially, to connection direct would of in the call don't and third-party close a we makes say, than third would have out which we I us party of members. up a a what it slightly with churn, to apps, our comparison we did majority our which to had

We're notifications, and We've our price into growth legacy member accelerate a base. we're started see to we're rate United good beyond. a those month spot in and the in increases for similar seeing very and to We're a impressed our result QX in Kingdom. QX

Mark Argento

expect that a got to have that there does you you That's least obviously, timing helpful. of And the the subscriber how majority of then QX of it we'd rolled base, at of the vast just increase? new the over perspective, kind guys the still to over are Is quarters? when a percentage next need couple bunch to do now where how price in year? annual base where of next a from still roll kind -- you that of Because forward. be does and you But

Ned Preston

the our of year. of maybe XX% pricing circa have migrated the membership to in happen XX% member legacy should of to remaining We because The XX% will percentage over annual -- our new the Sure. end base said, the the north you of XX%, cohort. fully like remaining before

be is in majority the through now, fully see a XXXX. year will and this this the impact we'll year that but happening from a for going majority So so that increase to of flushed price of of full the be

Jirka Rysavy

Mark. Yes,

it are members half have So most monthly and of the the James all now basically, because is annuals. members we as about of says,

much over -- next spread equally XX% then X the quarters. firstly, So the pretty the

Mark Argento

get That's -- expectations for marketplace James, roll Gaia's fairly large events. of your how What's relaunching live you It launching some QX. aggressive kind helpful. busy of for going looks or and breadth the there marketplace base. you and QX, your margin pretty And had offering to mentioned in subscriber of only not are how year, in you terms XXX-plus but next to as be in calendar

James Colquhoun

in Sure. With we regards officially launched to marketplace, it August.

we a partial contribution there. QX, So had

point that don't count full per first P&L positive marketplace what QX, onwards, and in it cost though, of it on We quarter scaling share year. terms of be middle of based And be sort quarter revenue units. of And our these around independent from next quarter. will is that head cross we'll business out. say, I data typically will per will contribution. of For

Plus, tier, membership the what to With that, seeing at regards premium Xx. to we're membership outpacing total X that's our about growth Gaia is

that growing Jirka. organization, at ARPU to myself the focus total ARPU subscriber Ned, rate strategically what of really I on comparison revenue well to in we're as count. and total for along doing is growth, but say, a as a price with the faster that's that member we're the And and focus sort pivoting So increases, growth would key more

Operator

with Company. The James question from is Sidoti next Sidoti &

Unknown Analyst

quarter? marketplace or there more X events mentioned heard fourth girls be events you I Will the this in more quarter.

James Colquhoun

here. James it's Jim,

events with So last events. these and again be we'll new then year will our year, X off the of event next kick

ever the seeing have member mentioned have tier we're which a we'll that good we're we've seeing the at premium -- the year. for Mark, -- growing run a most clip, attendance. for And year, from is sign XX-year total especially great of in X like events this I we'll us. And upgrades, one to great So the

out to X had just So just a sold go, more recently. that event of we and yes,

Unknown Analyst

membership for standard And they do Gaia or the they price Plus alone? were rmembership the increases, impact the

James Colquhoun

memberships it's currently, the alone. Gaia standard for just So

of been leaning of with production Plus Gaia the terms like into year. this in premium events mentioned, content, I have the most We tier

out revisiting for 'XX in those members. we accessible to we price will As premiums to we on-demand the and library beyond, the look once here point be build the

Unknown Analyst

to think and really talk second But little And -- a to bit half marketplace? expectations of the you be you can When by XXXX. expected in what do you contributor significant you for kick about profitable revenue? be do your are know will it a you when said think you I

Jirka Rysavy

first This to first of is Jirka. is quarter community. full blow community the introduce in want We step XXXX. Marketplace the

is some want it of marketing have less which takes to we because get of to system experiences, with kind new. kind So our it the all programming incorporated

to So we year. -- make the middle goal in it of profitable is this

full when of also course, year of next the community, the to be community so to contributor we launch full would And revenue a Gaia.

James Colquhoun

assuming? Okay. And launch that would the community of the I'm Ingatan -- launch well, include that as

Jirka Rysavy

before year, be would launch somewhere that. the the later year. Hopefully, in this

Ned Preston

Yes.

So XXXX. clear Ignaton. clarify. want it's to make middle Jim, Ned. that, just sure That I timing will of just to the of that's around be

what we're shooting. So we're is XXXX probably June

Unknown Analyst

term? the Okay. Or you free businesses and trend capital sustain able you you'll your existing you think cash you'll flow the raise positive now? with in any near or again, do continues? cash your need capital you're the think Do And to out be growth to existing from go that do think this generating

Ned Preston

Yes.

So Jim, James this in. and Ned can is weigh

going separate talking that Gaia. believe specifically into Gaia. I'm So you're to about I

or immediate you? you're no So about Ignaton asking

Unknown Analyst

Gaia.

Ned Preston

ago, quarters we did at always flow, have to raise the XX With we raise. X generating to what similar with exactly need a opportunities, immediate So free almost that months in cash and but this months plans ago as no for to a a We of so. of XX cash time. do being look row out doing said, go said, don't we --

James Colquhoun

expire plan year, Yes. We're planning to do, any anything. but have immediate which always do we we SX, this as don't refile our to

Operator

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

Thierry Wuilloud

Just a the the on price of question rates. mechanics

-- sense or little don't a happens? do that. If they anything, how you to How reached as just you that how something out does curious there. nothing as or us do have your just of members? you a they don't long kind can give I'm that then bit -- implemented to do And they of

James Colquhoun

Terry, it's James here.

they e-mail different So and different the it the legislation the notification price before when comes it And unless to is increase. world countries days prices. around called have vast the increases an subscribe. majority nonconsent, XX what's increasing A send actively on member whereby world, of go to you

price small amount consent mode members are very territories a increase. to there's that the approve Now the where need of actively

the far, This us focusing sending project notifications XXXX. we'll and nonconsent we as stage, adding consent on gives so as have continue as on And for that we countries we're are our been out we've we're on can our Kingdom, engineering the encouraging. in yes, the we very results be serve. market the to for the its the we pricing a the excited It's flexibility a brand move so increase, that aggregate the But test niches members larger given and United of grow. we And comparing of to more just sense develift into in and team. countries, it expand impact that revenue reach it

Thierry Wuilloud

just into increase Plus How integrate the in members the you your then in on event How maybe you or that Events. into membership And question a How increase translate with that just Okay. or do light marketing do new overall so? maybe event? you translate Gaia program? do

James Colquhoun

community of together a our the often events opportunity that brand encourages here it members But live upgrade So Gaia. does Gaia people as also Terry, are a by use of the typically people with bringing Gaia. for experience in to only adds Colorado. Not GaiaSphere experience This an joining. the accentuate also and new mission to to have Event tangibility Center then many considering and our to at promotional it we element the

it's We've this of Plus Gaia we've and business. that growing seen year we're healthy with premium an increasing membership economics that the long-term events at the for run the accelerated rate,

Thierry Wuilloud

terms that? you Or share color of can Right. in have around many online? you Do attendees just number any how any

Ned Preston

growth. Xx membership of regards Mark, member I've growing rate with to Xx at that we mentioned So are the overall to like base, our to the

So that's sign. encouraging really a

would we the live wider same did like immersion year the this with specific March we the for stream year. had live events We We stream attendees. level Immersion attendees, open likely of of open conference. of be activities again unique next terms promotional In XX,XXX in offering experience over until

can selling event, I we've report for. we're already tickets so that completed once And more which

Operator

Instructions] [Operator

Jirka Rysavy

our you to in Okay. I results you. joining, will like March. Thank thank look hear we fourth no when forward we for questions. speaking report you I to would and with quarter

Operator

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

disconnect. now may You

Gaia (GAIA) 4 Nov 242024 Q3 Earnings call transcript