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Gaia Inc (GAIA)
NASDAQ:GAIA
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Gaia
(NASDAQ:GAIA)
49Neutral
Positive Factors
Financial Performance
The subscription price increase led to revenue growth of 18%, showing strong financial performance.
Product Development
The company is planning new product launches, which are expected to contribute to future growth.
Valuation
GAIA’s current valuation is compelling, trading at 4.8x 2026E adj. EBITDA, well below peers.
Negative Factors
Revenue Adjustment
Gaia is discontinuing approximately $1.5M in non-subscription revenue, adjusting the financial model accordingly.
Revenue Performance
Gaia reported Q3 revenue slightly below consensus, indicating challenges in meeting market expectations.
Subscriber Loss
Gaia reported Q3 revenue slightly below consensus, with a loss of 4K net subscribers in Q3 due to the price increase.
Gaia (GAIA) vs. S&P 500 (SPY)
Market Cap
$92.52M
Dividend YieldN/A
Average Volume (3M)31.26K
Price to Earnings (P/E)―
Beta (1Y)0.78
Revenue Growth12.36%
EPS Growth8.23%
CountryUS
Employees104
SectorCommunication Services
Sector Strength76
IndustryEntertainment
Share Statistics
EPS (TTM)-0.22
Shares Outstanding19,672,638
10 Day Avg. Volume23,115
30 Day Avg. Volume31,259
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)1.13
Price to Cash Flow (P/CF)9.60
P/FCF Ratio16.60
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$8.00Price Target Upside116.80% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Gaia Business Overview & Revenue Model
Company DescriptionGaia, Inc. (GAIA) is a global digital video streaming service and online community focused on promoting conscious living, personal transformation, and holistic health. The company operates in the media and entertainment sector, offering a subscription-based library of content including documentaries, films, and original programming on topics such as yoga, meditation, alternative healing, and spirituality. Gaia's mission is to provide its audience with resources and inspiration for personal growth and a deeper understanding of the world.
How the Company Makes MoneyGaia primarily makes money through subscription fees paid by its users. It offers various membership plans that provide access to its streaming content, with options for monthly or annual billing. Revenue is generated as subscribers pay for unlimited access to Gaia's extensive library of videos and content. Additionally, Gaia may also earn income through partnerships with content creators and distributors who contribute to its platform. The company's focus on niche content tailored to a specific audience helps it build a loyal customer base, contributing to consistent subscription revenue.
Gaia Financial Statement Overview
Summary
Gaia's financial statements reveal significant challenges, particularly in achieving consistent profitability and cash flow stability. While there are strengths in cost management and a solid equity base, the negative profit margins and inconsistent cash flows pose risks. Strategic initiatives may be required to enhance operational efficiency and financial performance.Income Statement
The income statement reflects a challenging environment with declining profitability. The gross profit margin is healthy, indicating effective cost management; however, the company struggles with negative EBIT and net margins, suggesting operational inefficiencies. Revenue growth has been inconsistent, with recent improvements overshadowed by ongoing losses.45
Neutral
Balance Sheet
The balance sheet shows moderate stability with a declining debt-to-equity ratio, indicating manageable leverage. The equity ratio remains strong, suggesting a robust capital structure. However, the return on equity is negative due to consistent net losses, which could impact investor confidence.55
Neutral
Cash Flow
Cash flow analysis indicates struggles in generating consistent free cash flow, with recent growth overshadowed by past volatility. The operating cash flow to net income ratio is positive, suggesting decent cash generation relative to net losses, but the free cash flow remains low relative to net income, highlighting cash management challenges.40
Negative
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 90.36M | 80.42M | 82.03M | 79.57M | 66.83M | Gross Profit |
| 77.81M | 68.79M | 71.12M | 69.05M | 58.18M | EBIT |
| -5.93M | -4.57M | -216.00K | -10.44M | -4.63M | EBITDA |
| -5.93M | 11.97M | 13.16M | 15.13M | 7.41M | Net Income Common Stockholders |
| -5.23M | -5.80M | -2.73M | 3.73M | 519.00K |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 5.86M | 7.77M | 11.56M | 10.27M | 12.61M | Total Assets |
| 141.22M | 130.27M | 138.30M | 133.68M | 110.02M | Total Debt |
| 11.51M | 12.44M | 22.34M | 13.34M | 14.20M | Net Debt |
| 5.65M | 4.68M | 10.78M | 3.07M | 1.60M | Total Liabilities |
| 47.20M | 43.49M | 49.32M | 43.46M | 35.78M | Stockholders Equity |
| 80.67M | 85.50M | 88.98M | 90.22M | 74.23M |
| Cash Flow | Free Cash Flow | |||
| 1.94M | 596.00K | -6.74M | 3.53M | -1.68M | Operating Cash Flow |
| 6.92M | 5.87M | 11.52M | 20.87M | 11.65M | Investing Cash Flow |
| -15.00M | -5.28M | -19.10M | -23.86M | -176.00K | Financing Cash Flow |
| 6.17M | -4.38M | 8.88M | 655.00K | -10.36M |
Gaia Technical Analysis
Negative
3.69
Price Trends
4.75
Negative
5.06
Negative
4.93
Negative
Market Momentum
-0.22
Positive
29.24
Positive
11.64
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GAIA, the sentiment is Negative. The current price of 3.69 is below the 20-day moving average (MA) of 4.11, below the 50-day MA of 4.75, and below the 200-day MA of 4.93, indicating a bearish trend. The MACD of -0.22 indicates Positive momentum. The RSI at 29.24 is Positive, neither overbought nor oversold. The STOCH value of 11.64 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GAIA.
Gaia Risk Analysis
Gaia disclosed 32 risk factors in its most recent earnings report. Gaia reported the most risks in the “Tech & Innovation” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Gaia Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $177.29B | 31.84 | 5.54% | 0.97% | 3.97% | 89.53% | |
76 Outperform | $399.46B | 47.10 | 38.43% | ― | 15.28% | 65.72% | |
67 Neutral | $10.58B | ― | -5.37% | ― | 18.03% | 82.15% | |
59 Neutral | $27.96B | 0.79 | -25.77% | 4.12% | 2.19% | -45.44% | |
51 Neutral | $301.89M | 13.94 | -23.80% | ― | -10.71% | -202.93% | |
49 Neutral | $92.52M | ― | -6.30% | ― | 12.36% | 8.23% | |
47 Neutral | $990.28M | ― | -70.72% | ― | 18.61% | 49.61% |
* Communication Services Sector Average
Performance Comparison
GAIA
Gaia
3.69
0.49
15.31%
AMCX
AMC Networks
6.84
-5.00
-42.23%
DIS
Walt Disney
98.07
-22.37
-18.57%
NFLX
Netflix
933.85
319.54
52.02%
ROKU
Roku
72.49
8.30
12.93%
FUBO
fuboTV
2.90
1.32
83.54%
Gaia Earnings Call Summary
Earnings Call Date: Mar 10, 2025 | % Change Since: -8.21% | Next Earnings Date: May 5, 2025
Earnings Call Sentiment Positive
The earnings call presented a strong financial performance with significant revenue growth, improved margins, and successful price increases leading to positive cash flow. However, the company still reported a net loss, and there was some member churn due to price hikes. The company is investing in AI and community initiatives, which are expected to drive future growth.Highlights
Strong Revenue Growth
Revenue for the fourth quarter 2024 increased 18% to $24.4 million from $20.7 million in the fourth quarter of 2023. Full year revenue grew 12% to $90.4 million from $80.4 million in 2023.
Improved Gross Margin and Profitability
Gross margin improved to 88.3% from 85.3% in the year-ago quarter. Gross profit per employee increased, and there was a 19% year-over-year improvement in EPS.
Successful Price Increase
First-time price increase for existing members resulted in a limited 6.3% churn impact despite an 18% price hike. ARPU rose to $107, driven by pricing strategy and Gaia Plus subscriptions.
Positive Free Cash Flow
Achieved positive free cash flow for both the quarter and full year, with $4 million improvement over the year.
Growth in Member Base
Member count grew by 6% despite price increase, with notable 11% growth in direct members in high LTV regions like the U.S, Canada, and DACH markets.
Gaia Plus Premium Membership Growth
Gaia Plus premium membership tier grew by over 25%, reflecting demand for exclusive content and events.
AI and Community Initiatives
Raised $8 million to accelerate AI and community initiatives, focusing on building a conscious generative AI and expanding global community engagement.
Lowlights
Net Loss
The company reported a net loss of $800,000 or negative $0.03 per share for the fourth quarter, and a full-year net loss of $5.4 million or negative $0.22 per share.
Moderate Churn Impact
The price increase led to a 6.3% churn impact by year's end, slightly increasing in Q1 2025, though the company still made a net gain from the price hike.
Company Guidance
During Gaia's Fourth Quarter 2024 Earnings Conference Call, management provided several key metrics showcasing the company's financial performance and strategic direction. Revenue for the fourth quarter grew by 18% to $24.4 million, while the gross margin improved to 88.3% from 85.3% a year ago. The annual revenue increased by 12% to $90.2 million. Despite a price increase leading to some member churn, the company's member base still grew by 6%, reaching 856,000. The gross profit per employee rose to $730,000 from $660,000, and the lifetime value to cost of acquisition ratio climbed to over 6x. Gaia maintained a positive free cash flow, improving by about $4 million for the year. The company also achieved a 19% year-over-year improvement in earnings per share and raised $8 million in Q1 2025 to advance its AI and community initiatives. Looking ahead, Gaia plans further ARPU increases and initiatives to enhance content discoverability and engagement, positioning itself for accelerated growth in 2025.Gaia Corporate Events
Executive/Board ChangesFinancial Disclosures
Gaia Announces Board Changes and Financial Growth
Positive
Feb 5, 2025
Gaia has announced changes to its Board of Directors as part of its corporate governance enhancement efforts by not renominating James Colquhoun for the 2025 annual meeting, although he will continue as CEO. Robert Grant will be nominated as an independent director, with Colquhoun remaining as a non-voting board observer. The company also shared unaudited preliminary financial results for Q4 and FY 2024, showing revenue growth to $24.4 million for Q4 and $90.4 million for the year, alongside improved gross profit margins and free cash flow, reflecting a strong operational performance.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.