As of September 30, 2024, GAIA, INC. reported total revenues of $22.2 million for the third quarter, reflecting a 10% increase from $20.2 million in the same period of 2023. For the nine months ended September 30, 2024, revenues reached $65.9 million, up from $59.7 million year-over-year. The growth in revenue was attributed to an increase in member count and average revenue per user (ARPU).
Gross profit for the third quarter was $19.1 million, compared to $17.2 million in Q3 2023, resulting in a gross profit margin of 86.0%, slightly up from 85.2% in the prior year. However, total operating expenses increased significantly, with Q3 2024 expenses at $20.4 million, up from $17.7 million in Q3 2023. This rise was primarily due to the absence of the Employee Retention Tax Credit (ERTC) benefit recognized in the previous year, leading to a net loss of $1.5 million for Q3 2024, compared to a loss of $713,000 in Q3 2023.
For the nine-month period, the net loss was $4.6 million, compared to a loss of $3.8 million in the same period of 2023. The increase in losses was driven by higher selling and operating expenses, which rose to $54.9 million from $49.5 million, influenced by increased marketing and personnel-related costs.
On the balance sheet, total current assets decreased to $14.4 million from $16.1 million at the end of 2023, while total assets increased to $139.6 million from $130.3 million. Total current liabilities rose to $33.8 million, up from $31.4 million, and total shareholders’ equity decreased to $81.2 million from $85.5 million.
In terms of strategic developments, GAIA made a significant investment in April 2024, entering a License Purchase transaction for $16.2 million, funded through equity financing that raised $6.8 million from third-party investors. The company also reported a net cash provided by operating activities of $4.3 million for the nine months ended September 30, 2024, compared to $2.7 million in the prior year.
Management noted ongoing challenges with internal controls over financial reporting, identifying two material weaknesses. Remediation efforts are underway, including hiring additional accounting personnel and enhancing system capabilities.
About GAIA, INC
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