• Revenue (Q4 2024): $24.4 million, up 18% from $20.7 million in Q4 2023.
• Revenue (Full Year 2024): $90.4 million, up 12% from $80.4 million in 2023.
• Gross Margin (Q4 2024): 88.3%, up from 85.3% in Q4 2023.
• Gross Margin (Full Year 2024): 86.1%, up from 85.5% in 2023.
• Net Loss (Q4 2024): $0.8 million or negative $0.03 per share, improved from $1.8 million or negative $0.08 per share in Q4 2023.
• Net Loss (Full Year 2024): $5.4 million or negative $0.22 per share, improved from $5.6 million or negative $0.27 per share in 2023.
• Free Cash Flow (Q4 2024): Improved by $2.2 million to $0.6 million.
• Free Cash Flow (Full Year 2024): Improved by $4 million to $2.7 million.
• Member Count (End of 2024): 856,000, up from 806,000 at the end of 2023.
• ARPU (Annualized): $107, driven by pricing strategy and Gaia Plus subscriptions.
• Gross Profit (Q4 2024): $21.6 million, up from $17.7 million in Q4 2023.
• Gross Profit (Full Year 2024): $77.8 million, up from $68.8 million in 2023.
• Cash Balance (End of 2024): $5.9 million with an unused $10 million line of credit.

• Warning! GuruFocus has detected 2 Warning Sign with GAIA.

Release Date: March 10, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Gaia Inc (NASDAQ:GAIA) reported an 18% increase in revenue for the fourth quarter of 2024, reaching $24.4 million.
• The company's gross margin improved to 88.3% from 85.3% in the previous year.
• Gaia Inc (NASDAQ:GAIA) achieved a 6% growth in its member count despite a price increase.
• The Gaia Plus premium membership tier grew by over 25%, indicating strong demand for exclusive content.
• The company reported a positive free cash flow for both the quarter and the full year, with an improvement of $4 million for the year.

Negative Points

• Gaia Inc (NASDAQ:GAIA) experienced some member losses due to the price increase.
• The company reported a net loss of $0.8 million for the fourth quarter, although this was an improvement from the previous year's loss.
• Despite revenue growth, the company still faced a full-year net loss of $5.4 million.
• The anticipated churn impact from the pricing increase was 6.3%, affecting member retention.
• The company plans to increase prices again by the end of Q1 2026, which could potentially impact member retention further.

Q & A Highlights

Q: Can you expand on the expectations for growth in 2025? Are we looking at year-over-year or sequential growth from Q4? A: Ned Preston, CFO: Our growth expectation is on an annual basis, aiming to exceed the 12% growth we achieved in 2024. We also anticipate sequential growth starting in Q1, but the primary focus is on annual growth exceeding 12%.

Q: What are Gaia's plans regarding AI, and how will it be integrated into your platform? A: James Colquhoun, COO: We are developing an integrated AI model that will allow members to interact with our content and experts. This will be rolled out in Q1 of next year alongside a price increase, enhancing member interaction with our content.

Q: How has the recent price increase affected member retention and metrics? A: James Colquhoun, COO: The price increase in Q4 2024 resulted in a churn impact slightly above 6.3%, but we are still achieving a net gain from the price increase. More than half of the price increase has been implemented, with the remainder to follow through 2025.

Q: Can you provide details on the upcoming launch of Ignaton and its expected impact? A: Jirka Rysavy, CEO: We plan to introduce Ignaton in May-June and start sales in July. We expect it to surpass the $1.1 million revenue from discontinued courses in the second half of the year, but exact figures will depend on initial sales performance.

Q: What are the plans for the $2 price increase, and how does it relate to your strategy? A: James Colquhoun, COO: We plan to increase the monthly membership price to $15.99 by the end of Q1 2026. This aligns with our strategy to enhance offerings with AI and community initiatives, ensuring value for members and aligning with market standards.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.