Gaia, Inc.

Good afternoon, and welcome to Gaia's second quarter 2024 earnings conference call. At this time, all participants are in a listen-only mode. Joining us today from Gaia are Yurka Residi, Executive Chairman, James Calhoun, CEO, and Ned Preston, CFO. After the speaker's presentation, there will be a question and answer session. Before we begin, Gaia's management team would like to remind everyone that management's prepared remarks contain forward-looking statements, and management may make additional forward-looking statements in response to your questions, including, but not limited to, statements of expectations, future events, or future financial performance. These statements do not guarantee future performance, and therefore, undue reliance should not be placed upon them. Although we believe these expectations are reasonable, GAIA management undertakes no obligation to revise any statements to reflect changes that occur after this call. Actual events or results could differ materially. These statements are based on current expectations of the company's management and involve inherent risks and uncertainties, including those identified in the risk factor section of GAIA's latest annual report on Form 10-K filed with the SEC. All non-GAAP financial measures referenced in today's call are reconciled in the company's earnings press release to the most directly comparable gap measure. This call also contains time-sensitive information that is accurate only as of the time and date of this broadcast, August 5th, 2024. Finally, I would like to remind everyone that this conference call is being webcast and a recording will be made available for replay on Gaia's Investors Relations website at ir.gaia.com. I will now turn the call over to GAIA Executive Chairman, Jirka Rissavi. Please proceed with yours.

Good afternoon, everyone. So for the quarter, we continue to build in our increasing momentum. During the second quarter, which is actually our season list lowest, we grew revenue at the same rate as we did in first and by 11% to $22.1 million. We expect revenue growth to be similar during the third quarter and then to increase to about 15% in the fourth quarter. The member count during the quarter grew by 10% to 850,000 members, up from 774,000 in the year-ago quarter. including some of the non-recruiting expenses we have in the quarter. Our loss was similar as the last year in $0.09 per share. Free cash flow was $700,000 for the quarter and $1.6 million for the last six months, which is $2 million improvement on the top of $8.4 million improvement we delivered during last year. In 2016, GAIA invested 10 million, and we recently raised 12 million from outside investor for our subsidiary, Igniton, with GAIA still retaining 71% of equity. Igniton used 10 million of cash to raise, cash raised to acquire exclusive worldwide license for Igniton Health Technology. This technology uses concentrated quasi-particle transmitted by the sun to improve cognition, memory, and longevity. Technology can be delivered by various means, from embedded food supplements to control or release from coded microchips, like, for example, from Gaia-connected TV device. And James will now speak more about the business advantage.

Hello, everyone, and thank you, Jirka. Our Q2 results reflect our ongoing commitment to delivering transformative content and growing our community. During the second quarter, traditionally our slowest, we achieved an 11% increase in revenue and a 10% growth in membership year over year, whilst also marking our fifth consecutive quarter of positive free cash flow. We have also implemented a price increase for new members starting in July, which we expect to positively impact our revenue by the end of the year. The timing of this increase was moved from Q2 to Q3 to strategically align with our third-party partners, ensuring minimal disruption to our members. Traditionally, we have grandfathered existing members on old pricing. However, we are currently testing a price increase for all new members in GBP. Should this test be successful, we would roll out price increases for all members from Q4 onwards which will be the first time we have done this in the history of the company. Additionally, as of today, we are excited to officially announce the public launch of Gaia Marketplace to our entire member base and community. This initiative not only strengthens our community engagement, but also introduces an alternative revenue stream to the Gaia business. Gaia Marketplace offers transformative tours and experiences for Gaia members to connect with like-minded community from across the globe. From exploring ancient civilizations in Egypt, delving into transformative healing practices in Costa Rica, and awakening one's highest potential in curated retreats with leading teachers from Gaia's platform. Members will also have access to powerful courses, training programs, events, workshops, and conscious products chosen and backed by research for exceptional quality and impact. Gaia Marketplace underscores the company's continued commitment to creating a global conscious community. And you can find out more about this initiative at marketplace.gaia.com. Looking forward through the end of the year, we will continue to execute on increasing the number of members on our new higher pricing, expanding the rollout of our marketplace initiative, scaling our member growth in our premium tier, and overall making improvements on free cash flow generation and increases in annualized ARPUP. CFO Ned Preston will now provide more detailed financial insights.