Gaia(US:GAIA)2024-03-27 20:49Membership Growth - Member count increased to 806,000 at the end of Q4 2023, up from 759,000 a year earlier, with expectations to reach approximately 838,000 by the end of Q1 2024[3][4][12] - The company plans to double net member additions from 16,000 in Q4 2023 to 32,000 in Q1 2024, aiming for continued positive free cash flow[12] Revenue Performance - Q4 2023 revenues rose 6% to $20.7 million compared to $19.6 million in Q4 2022, primarily driven by member growth[4] - Revenues for Q4 2023 were $20.714 million, a 5.8% increase from $19.577 million in Q4 2022[22] - For the full year 2023, total revenue was $80.4 million, down from $82.0 million in 2022, reflecting recovery from post-COVID subscriber contraction[7] Profitability and Loss - Gross profit for Q4 2023 was $17.7 million, with a gross margin of 85.4%, consistent with the previous year[5] - Gross profit for the twelve months ended December 31, 2023, was $68.794 million, down from $71.120 million in 2022, reflecting a gross margin of 85.5%[22] - The net loss for 2023 was $(5.6) million or $(0.27) per share, compared to a loss of $(3.6) million or $(0.19) per share in 2022[9] - The net loss attributable to common shareholders for the twelve months ended December 31, 2023, was $5.802 million, compared to a loss of $3.882 million in 2022[22] Cash Flow and Expenses - Operating cash flow improved by $2.1 million in Q4 2023, while free cash flow increased to $1.0 million from a negative $0.7 million in the same quarter last year[5][10] - Net cash provided by operating activities for Q4 2023 was $3.184 million, up from $1.089 million in Q4 2022[23] - Free cash flow for the twelve months ended December 31, 2023, was $1.069 million, a significant improvement from a negative $7.283 million in 2022[23] - Marketing expenses increased to 41.1% of revenue in 2023, up from 37.2% in the prior year, contributing to the net loss despite improved cash flow[10] Operating Expenses - Total operating expenses increased to $73.361 million for the twelve months ended December 31, 2023, compared to $71.385 million in 2022[22] - The company incurred $1,479,000 in corporate, general, and administrative expenses for Q4 2023, a slight decrease from $1,583,000 in Q4 2022[22] Cash and Investments - The cash balance as of December 31, 2023, was $7.8 million, with an unused $10 million line of credit[6] - Cash used in investing activities for the twelve months ended December 31, 2023, was $5.281 million, down from $9.264 million in 2022[23] Operational Loss - The company reported a loss from operations of $4.567 million for the twelve months ended December 31, 2023, compared to a loss of $265,000 in 2022[22] Product Development - A beta version of the Gaia Marketplace was launched, aimed at increasing average revenue per user (ARPU) without additional marketing costs[3]