Gaia(US:GAIA)2025-03-10 20:11Revenue and Growth - Revenues increased by $9.9 million, or 12.4%, to $90.4 million in 2024 compared to $80.4 million in 2023, driven by an increase in member count and Average Revenue Per User (ARPU)[135] - The company anticipates continued growth in member base, particularly in the fourth and first quarters, driven by seasonal viewing patterns[143] - The company aims to expand its subscription business both domestically and internationally by enhancing its content library and user interface[132] Expenses and Profitability - Cost of revenues rose by $0.9 million, or 8.6%, to $12.6 million in 2024, with a gross profit margin of 86.1% compared to 85.5% in 2023[136] - Selling and operating expenses increased by $8.8 million, or 13.1%, to $76.0 million in 2024, representing 84.1% of revenues, up from 83.5% in 2023[137] - Corporate, general and administration expenses grew by $1.6 million, or 25.8%, to $7.8 million in 2024, accounting for 8.6% of net revenue compared to 7.7% in 2023[138] - The gross profit margin improved to 86.1% in 2024 from 85.5% in 2023, indicating better cost management[134] - Net loss attributable to common shareholders decreased to $5.2 million in 2024 from $5.8 million in 2023[134] Cash Flow and Financing - The company generated approximately $6.9 million in cash flows from operations during 2024, an increase of $1.1 million compared to 2023, primarily driven by an increase in direct membership subscriptions[160][167] - Cash flows provided by financing activities increased by $10.6 million during 2024 compared to 2023, primarily due to debt repayments in 2023[168] - The company had a net cash decrease of $1.9 million in 2024, compared to a decrease of $3.8 million in 2023[166] - The cash balance as of December 31, 2024, was $5.9 million[161] Investments and Acquisitions - The company intends to invest approximately 15%-20% of its consolidated revenues each year to support continued investment in its content library and technology platform[161] - The company completed a technology license purchase for a total of $16.2 million, funded through an equity financing that raised $6.8 million in cash[162] - The company continues to pursue opportunities for market expansion and potential acquisitions[163] Debt and Liabilities - The company entered into a loan agreement with First Interstate Bank for a mortgage loan of $13.0 million, with a remaining balance of $11.6 million as of December 31, 2024[158] - The company has no outstanding borrowings as of December 31, 2024[168] - The company recorded no impairment charges for goodwill during 2024 and 2023, with goodwill assessed at the enterprise level[152]