LOUISVILLE — Gaia Inc. (Nasdaq: GAIA), a conscious-media and community company, increased revenues by 59 percent in the second quarter of 2018 but still reported a loss for the second quarter of $6.3 million.
In reporting its quarterly financials, Gaia said it had paid subscriber growth of 68 percent and a 65 percent increase in streaming revenues. Gross margins were up 70 basis points to 86.8 percent, the company reported.
“The second quarter was highlighted by the continuation of strong subscriber growth,” said Jirka Rysavy, Gaia’s CEO. “We remain ahead of the growth rate needed to achieve our subscriber goal for the end of 2019, while investing approximately $1 million less than our targeted rate for customer acquisition even during our seasonally slowest quarter. We also expanded our geographic reach to over 180 countries.”
Gaia’s paying subscriber count increased 68 percent to 466,000 on June 30, from 277,800 on June 30, 2017.
Total revenues in the second quarter increased to $10.5 million from $6.6 million in the year-ago quarter. Gross profit in the second quarter increased 61 percent to $9.1 million compared with $5.6 million in the year-ago quarter. Total operating expenses in the second quarter were $15.6 million, compared with $12 million in the year-ago quarter due to planned marketing expense increases associated with accelerated subscriber growth.
Net loss in the second quarter was $6.3 million, or 35 cents per share, compared with a net loss of $6.3 million, or 42 cents per share, in the year-ago quarter. As of June 30, Gaia had $41.2 million in cash and no debt.
Gaia is a global video-streaming service and community that provides curated conscious media in three primary channels — Seeking Truth, Transformation and Yoga — to its subscribers in 180 countries with more than 8,000 titles.