Gaia (NASDAQ:GAIA) Posts Quarterly Earnings Results, Beats Expectations By $0.01 EPS

Gaia (NASDAQ:GAIA) issued its earnings results on Monday. The company reported ($0.12) EPS for the quarter, beating analysts’ consensus estimates of ($0.13) by $0.01, FiscalAI reports. Gaia had a negative return on equity of 5.77% and a negative net margin of 6.08%.The business had revenue of $23.33 million during the quarter, compared to analyst estimates of $24.60 million.

Here are the key takeaways from Gaia’s conference call:

• Second-quarter revenue fell 5% year over year to $23.3 million, while net loss widened to $3.0 million from $1.8 million. Gross margin also declined to 85.3% as lower revenue weighed against a relatively fixed content-cost base.
• Management expects the third quarter to remain challenging, with results similar to Q2, and withdrew its prior expectation for fourth-quarter net-income break-even. The company now targets a return to positive free cash flow in Q4, with revenue expected to grow sequentially from Q3.
• Gaia says its customer-acquisition-cost spike from an advertising-partner algorithm change in April and May has been corrected, while efforts to reduce reliance on that partner are underway. The company also identified more than $3 million in annualized savings through marketing, technology, vendor, and overhead reductions.
• Management reported encouraging early engagement from AI-powered tarot, oracle, horoscope, and short-form content features, as well as strong opt-in rates for its early community product. These direct-member-only tools are intended to improve retention and support the company’s target of a 20% improvement in churn and ARPU by Q4.
• Gaia continued expanding its content and Igniton supplement offerings, including a new Jim Kwik series scheduled for October, additional original programming, and new sleep and eye-serum products. Executives characterized Igniton’s first year of supplement sales as a proof of concept but provided no specific financial outlook for the business.

Gaia Stock Down 0.8%

Shares of NASDAQ GAIA traded down $0.01 during mid-day trading on Wednesday, reaching $1.23. 85,194 shares of the company’s stock traded hands, compared to its average volume of 112,313. The company has a debt-to-equity ratio of 0.05, a current ratio of 0.56 and a quick ratio of 0.56. The business has a 50-day simple moving average of $2.12 and a 200 day simple moving average of $2.65. The stock has a market cap of $31.00 million, a P/E ratio of -5.10 and a beta of 0.95. Gaia has a 1-year low of $1.20 and a 1-year high of $6.39.

Hedge Funds Weigh In On Gaia

Several large investors have recently added to or reduced their stakes in GAIA. O Shaughnessy Asset Management LLC bought a new stake in Gaia during the 4th quarter worth approximately $84,000. Goldman Sachs Group Inc. grew its holdings in Gaia by 8.8% during the fourth quarter. Goldman Sachs Group Inc. now owns 44,970 shares of the company’s stock worth $163,000 after buying an additional 3,622 shares in the last quarter. Geode Capital Management LLC grew its holdings in Gaia by 1.2% during the fourth quarter. Geode Capital Management LLC now owns 409,081 shares of the company’s stock worth $1,485,000 after buying an additional 5,037 shares in the last quarter. JPMorgan Chase & Co. raised its position in Gaia by 32.0% in the 3rd quarter. JPMorgan Chase & Co. now owns 20,468 shares of the company’s stock valued at $121,000 after buying an additional 4,959 shares during the last quarter. Finally, New York State Common Retirement Fund purchased a new stake in Gaia in the 2nd quarter valued at $90,000. Institutional investors own 40.53% of the company’s stock.

Analysts Set New Price Targets

Several brokerages have issued reports on GAIA. Wall Street Zen lowered Gaia from a “hold” rating to a “sell” rating in a report on Saturday, May 9th. Weiss Ratings raised Gaia from a “sell (e+)” rating to a “sell (d-)” rating in a research report on Tuesday, July 28th. One equities research analyst has rated the stock with a Sell rating, Based on data from MarketBeat.com, Gaia has a consensus rating of “Sell”.

About Gaia

Gaia, Inc operates a subscription-based streaming platform specializing in conscious media, alternative health, spirituality and personal transformation. The company’s digital library features a curated selection of original series, documentaries, yoga and meditation classes, and instructional content aimed at mindfulness, holistic wellness and metaphysical exploration. Gaia’s service is accessible through its website, mobile applications and a variety of connected-TV devices, providing on-demand access to content across multiple channels and formats.

Since launching its streaming service in 2011, Gaia has focused on developing proprietary programming and forging content partnerships with thought leaders, teachers and filmmakers in the fields of yoga, Ayurveda, consciousness studies and alternative healing.