Gaia Inc (GAIA) Q4 2024 Earnings Call Highlights: Strong Revenue Growth and Strategic Initiatives

In This Article:

  • Revenue (Q4 2024): $24.4 million, up 18% from $20.7 million in Q4 2023.

  • Revenue (Full Year 2024): $90.4 million, up 12% from $80.4 million in 2023.

  • Gross Margin (Q4 2024): 88.3%, up from 85.3% in Q4 2023.

  • Gross Margin (Full Year 2024): 86.1%, up from 85.5% in 2023.

  • Net Loss (Q4 2024): $0.8 million or negative $0.03 per share, improved from $1.8 million or negative $0.08 per share in Q4 2023.

  • Net Loss (Full Year 2024): $5.4 million or negative $0.22 per share, improved from $5.6 million or negative $0.27 per share in 2023.

  • Free Cash Flow (Q4 2024): Improved by $2.2 million to $0.6 million.

  • Free Cash Flow (Full Year 2024): Improved by $4 million to $2.7 million.

  • Member Count (End of 2024): 856,000, up from 806,000 at the end of 2023.

  • ARPU (Annualized): $107, driven by pricing strategy and Gaia Plus subscriptions.

  • Gross Profit (Q4 2024): $21.6 million, up from $17.7 million in Q4 2023.

  • Gross Profit (Full Year 2024): $77.8 million, up from $68.8 million in 2023.

  • Cash Balance (End of 2024): $5.9 million with an unused $10 million line of credit.

Release Date: March 10, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Gaia Inc (NASDAQ:GAIA) reported an 18% increase in revenue for the fourth quarter of 2024, reaching $24.4 million.

  • The company's gross margin improved to 88.3% from 85.3% in the previous year.

  • Gaia Inc (NASDAQ:GAIA) achieved a 6% growth in its member count despite a price increase.

  • The Gaia Plus premium membership tier grew by over 25%, indicating strong demand for exclusive content.

  • The company reported a positive free cash flow for both the quarter and the full year, with an improvement of $4 million for the year.

Negative Points

  • Gaia Inc (NASDAQ:GAIA) experienced some member losses due to the price increase.

  • The company reported a net loss of $0.8 million for the fourth quarter, although this was an improvement from the previous year's loss.

  • Despite revenue growth, the company still faced a full-year net loss of $5.4 million.

  • The anticipated churn impact from the pricing increase was 6.3%, affecting member retention.

  • The company plans to increase prices again by the end of Q1 2026, which could potentially impact member retention further.

Q & A Highlights

Q: Can you expand on the expectations for growth in 2025? Are we looking at year-over-year or sequential growth from Q4? A: Ned Preston, CFO: Our growth expectation is on an annual basis, aiming to exceed the 12% growth we achieved in 2024. We also anticipate sequential growth starting in Q1, but the primary focus is on annual growth exceeding 12%.