Good Momentum Going into 2024
We recently caught up with management to congratulate James Colquhoun on his promotion to CEO. We also got a good update on the business as well as some early indications of trends and management focus for 2024. As indicated on the 3Q23 earnings call, new member growth is continuing at a healthy clip and management expects to close 2023 at around 800k members. Gaia’s financial model is cash flow positive at this membership level, which gives the company flexibility and enhanced ability to seize opportunities going forward. In the last few years, most of the company’s marketing dollars have been allocated to advertising on the Google and Facebook platforms. Going forward, the company will invest a portion of its marketing budget into partnership-based marketing efforts to attract new members. In that context, look for increased activity on the Events+ premium tier front and the continued rollout of the Gaia Marketplace. Gaia is much more than a “yoga” company. In fact, many members join Gaia as they go through life changing events, such as a significant health issue, grief or death, relationship issues, or simply a burnout (aka the “midlife crisis”). This is one of the reasons why the company believes it still has the potential for much deeper penetration in the US and overseas. While the overseas share of revenue is currently 35%, the company believes it should exceed 50% within the next five years. Gaia will continue to build up the Gaia Marketplace with a mix of retreats and experiences, courses and training, plus physical products. These curated offerings, provided at a discount to members, should help grow the company’s gross margin and have a positive impact on ARPU. With many smaller SVOD companies struggling with difficult business models, there is a possibility for Gaia to play the role of consolidator in the industry. Unlike Gaia, many other companies in the industry are struggling to achieve both growth and positive cash flow generation, which could open opportunities for consolidation.Gaia operates a global digital video subscription service and on-line community. The company's subscribers have access to a library of films, documentaries, interviews, yoga classes, transformation-related content, and majority of which are available to its subscribers for digital streaming. The company's network includes the following channels: Yoga, which provides access to streaming yoga, Eastern arts, and other movement-based classes; Transformation and Alternative Healing, which features content in the areas of alternative and integrative medicines, holistic healing, longevity, spiritual growth and consciousness; and Seeking Truth, which provides perspectives for today's changing world.
Water Tower Research is built on the foundation of democratizing information flow. We bridge the growing information gap between companies and investors through our investor engagement strategies and open-access research platform.
Our research analysts are Wall Street veterans with the experience and knowledge to work with companies and investors in tandem. We provide access to the information and content that anchors the due diligence process for both professional money managers and individual investors. We leverage traditional research distribution channels and the best of modern digital strategies and tactics to amplify this information flow globally to engage all categories of investors and stakeholders.
Information flow is the foundation for creating investor awareness, knowledge, and engagement. Our mission is to help companies and investors have the tools they need and achieve their goals.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.