Stock in Focus: Gaia Inc. (NASDAQ: GAIA)

LOUISVILLE, Colo., June 22, 2019 – Shares of Gaia Inc. (NASDAQ: GAIA) showed the bullish trend with a higher momentum of 0.53% to $7.56. The company traded total volume of 41,986 shares as contrast to its average volume of 86.36K shares. The company has a market value of $137.52M and about 18.19M shares outstanding.

Gaiam Inc. (GAIA) recently reported a loss of $6.70M in its first quarter.

First Quarter 2019 Financial Results:

Streaming revenues in the first quarter increased 36% to $12.50M from $9.10M in the year-ago quarter. This was mainly because of a 34% increase in paying subscribers as compared to March 31, 2018. Revenues before the effect of the suspended operations increased to $12.90M from $9.60M.

Gross profit in the first quarter increased 36% to $10.90M contrast to $8.00M in the year-ago quarter. Gross margin increased to 87.2% as compared to 87.1% in the year-ago quarter and Gaia anticipates maintaining gross margins at this level through 2019.

Total operating expenses in the first quarter increased to $17.30M contrast to $15.90M in the year-ago quarter. This was mainly driven by increases in personnel-related costs over the past twelve months as Gaia has scaled operations to support higher revenues. Customer acquisition costs as a percentage of revenue declined to 69% in the first quarter of 2019 from 109% in the year-ago quarter. As a percentage of revenue, operating expenses declined to 139% in 2019 from 174% in 2018.

Loss from operations in the first quarter improved to $6.40M from $8.00M in the year-ago quarter.

Net loss from continuing operations in the first quarter was $6.40M, or $(0.36) per share, contrast to a net loss from continuing operations of $6.10M, or $(0.40) per share, in the year-ago quarter.

As of March 31, 2019, Gaia had $22.30M in cash. On April 26, 2019, Gaia refinanced its current line of credit set to expire in 2020. The new financing increased borrowing capacity to $17.00M, fixed the interest rate, has recourse solely to Gaia’s corporate campus, and extended the maturity to 2022, with two one-year extension options and no prepayment penalty after two years.

The Company offered net profit margin of -73.80% while its gross profit margin was 87.10%. ROE was recorded as -39.30% while beta factor was 1.27. The stock, as of recent close, has shown the weekly upbeat performance of 3.70% which was maintained at -27.03% in this year.

Ameena Dalia

Finance and Entertainment Reporter

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