Gaia reports Q4 EPS (4c), consensus (2c)

Reports Q4 revenue $19.6M, consensus $20M."After a challenging 2022, when both revenue and adjusted EBITDA only increased in the single digits due to the post COVID subscriber contraction experienced industry wide, we have started to experience member growth this year," said Jirka Rysavy, Gaia‘s CEO. "During the last few months, we have eliminated over $5 million in annualized spending, which includes 36 headcount that were added over the past two years to offset reduced efficiency because of work-from-home mandates. We expect to see the benefits of such savings begin during the second quarter. In 2023, we plan to launch Gaia Marketplace, an initiative focused on our existing members that we expect to increase our average revenue per member with minimal additional marketing expense. As a result, we expect to grow and generate $7-9 million of cash in 2023." Gaia CFO Paul Tarell commented: "The fourth quarter continued to be impacted by headwinds faced throughout the year surrounding elevated cancellations due to members that joined during the peak COVID period, as well as reduced efficacy in our online advertising efforts tied to ongoing privacy changes. Our focus is growing revenues cost effectively, including increasing the efficiency of our targeted marketing efforts that attract and retain high lifetime value members, while continuing to invest in content that keeps the high lifetime value members engaged and retained."