LOUISVILLE — Gaia Inc. (Nasdaq: GAIA) reported dips in revenue and gross profit as part of third-quarter financial results released Monday. However, the Louisville-based media company also recorded a 10th straight quarter of positive earnings before interest, taxes, depreciation and amortization.
Revenues decreased 2.5% to $19.9 million from $20.4 million in the same quarter a year ago. For the nine months ended Sept. 30, revenues increased 6.3% to $62.5 million in 2022 from $58.7 million from the same period in 2021.
Gaia’s member count as of Sept. 30 was 776,000, compared with 790,500 as of Sept. 30, 2021.
Gross profit in the third quarter decreased to $17.2 million.compared with $17.8 million in the year-ago quarter as a result of the decreased revenues. Gross margin decreased slightly to 86.7% from 87.1% in the same quarter last year as a result of increased content amortization from its investment in original content.
Total operating expenses were $17.6 million or 88% of revenues, compared with $17.1 million or 84% of revenues in the same quarter of 2021. The company attributed the slight increase to elevated legal expenses this year related to an investigation by the Securities and Exchange Commission and a $2 million accrual for the anticipated settlement, which would resolve the investigation.
“The third quarter continued to be impacted by the trends that developed in the spring,” Paul Tarell, Gaia’s chief financial officer, said in a prepared statement. “Consumers shifted their attention and spending to travel and recreational activities, which affected our ability to cost-efficiently add new members. We also experienced elevated cancellations in March through July from members that joined us during the peak COVID periods in 2020 and 2021. While these cancellations began to dissipate in the second half of August, the combination of both headwinds impacted our member and revenue growth objectives in the quarter. We remain focused on continuing to attract and retain high lifetime value members, albeit at a lower volume, which allows us to focus on our long-term plan of growing a highly engaged community that generates significant cash flows over many years.”
Gaia is a member-supported global video streaming service and community that produces and curates conscious media through four primary channels.