Gaia(US:GAIA)2023-04-30 16:00Revenue Performance - Revenues decreased by $2.2 million, or 10.1%, to $19.6 million for the three months ended March 31, 2023, compared to $21.8 million for the same period in 2022, primarily due to a decrease in overall member count[56]. - Cash flows from continuing operations were approximately $3.1 million for the three months ended March 31, 2023, compared to $4.2 million for the same period in 2022, reflecting a decrease of $0.9 million[66]. Profitability Metrics - Gross profit margin decreased to 85.9% for the three months ended March 31, 2023, down from 86.7% for the same period in 2022, mainly due to increased content amortization related to original content investments[57]. - Selling and operating expenses decreased by $0.7 million, or 4.2%, to $16.1 million for the three months ended March 31, 2023, but increased as a percentage of net revenues to 82.1% from 76.9% year-over-year[58]. - Corporate, general and administration expenses remained flat at $1.8 million for both periods, but increased as a percentage of net revenues to 9.0% from 8.2% due to decreased revenues[59]. Membership Trends - The company lost about 40% of the members added during the COVID-19 lockdowns in 2020 and 2021 between March and October 2022[53]. - The company aims to grow its subscription business by expanding its unique content library and enhancing its user interface[50]. Future Outlook - The company expects to budget content and capital expenditures between $8.0 million to $10.0 million for the remainder of 2023, primarily to expand its content library and enhance digital platforms[62]. - As of March 31, 2023, the company had a cash balance of $10.8 million and had drawn $9.0 million from a $10.0 million revolving credit facility[63]. - The company has continued to generate positive cash flows from operations since October 2019 and expects to maintain this trend throughout 2023[62].