Gaia Inc: Less-Known Stock With Strong Momentum

Gaia

Gaia Inc (NASDAQ:GAIA) share price almost doubled in the last twelve months; GAIA stock received support from a solid growth in subscribers – which increased 75% year over year in the latest quarter. GAIA stock trades around $16 a share at present, up 87% in the last year alone. With the market exposure to 160 countries, Gaia is a global video streaming service and community that provides curated conscious media in three primary channels: Seeking Truth, Transformation, and Yoga.

The company posted year over year revenue growth of 69% in the latest quarter; driven by 73% subscriber growth and 85% increase in streaming revenues. It is looking to expand its investment to reach 1 million subscribers by the end of this year.

Moreover, it continues enlarging its content offering; the company’s English library surged to over 8,000 titles. It also launched Gaia in Spanish, including over 500 native language titles, and is starting German in the current quarter. Almost 80 million people have viewed its investigative documentary about Nazca in Peru.

“The quarter was once again highlighted by stronger than forecasted subscriber growth and lower than expected customer acquisition costs,” said Jirka Rysavy, Gaia’s CEO.

The customer acquisition costs as a percentage of revenue dropped to 87% in the latest quarter, relative to 95% in the year-ago period. The decline in customer acquisition costs represents strong management despite the dramatic increase in subscriber growth rate.

Gaia management has also successfully enlarged its gross margin by 190 basis points over the past year quarter, supported by higher revenues and leverage on streaming costs and media library investments.

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The specialty retailer appears to be in a strong position to invest in growth opportunities considering its healthy balance sheet and low debt. At the end of the latest quarter, its cash and cash equivalents landed around $30.1 million with no debt.

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