Gaia(US:GAIA)2019-04-29 21:26Financial Performance - Revenues increased by $3.4 million, or 37.4%, to $12.5 million in Q1 2019 compared to $9.1 million in Q1 2018, primarily driven by growth in the number of paying subscribers[42] - Cost of revenues rose by $0.4 million, or 33.3%, to $1.6 million in Q1 2019, with a slight decrease in percentage of revenues to 12.8% from 12.9% in Q1 2018[43] - Selling and operating expenses increased by $1.2 million, or 8.3%, to $15.7 million in Q1 2019, with a decrease in percentage of revenues to 126.1% from 158.9% in Q1 2018[44] - Net loss was $6.7 million, or $0.38 per share, in Q1 2019 compared to a net loss of $6.0 million, or $0.39 per share, in Q1 2018[46] Cash Flow and Expenditures - Cash balance as of March 31, 2019, was $22.3 million, with estimated capital expenditures for the remainder of 2019 expected to be between $8.0 million and $12.0 million[48] - Cash flow used in operating activities improved by $0.1 million in Q1 2019 compared to Q1 2018, primarily due to decreased operating losses and favorable working capital dynamics[53] - Cash flow used in investing activities increased by $0.9 million in Q1 2019, primarily due to increased investment in the media library[54] - Cash flow from financing activities decreased by $24.8 million in Q1 2019 compared to Q1 2018, as no financing activities were undertaken in Q1 2019[55] Business Strategy and Growth - The company aims to grow its subscription business domestically and internationally by expanding its unique and exclusive content library and enhancing its user interface[39] - The subscriber growth exhibits a seasonal pattern, with the highest growth typically occurring from October to February[47]