Gaia Inc at Sidoti’s Small-Cap Virtual Conference: Strategic Growth Unveiled

On Thursday, 12 June 2025, Gaia Inc (NASDAQ:GAIA) participated in Sidoti’s Small-Cap Virtual Conference, where CEO James Colhoun and CFO Ned Preston outlined the company’s robust 2024 performance and ambitious growth strategies. While Gaia’s financial health appears strong, with high margins and a positive free cash flow, the company faces challenges in scaling its subscriber base and expanding internationally.

Key Takeaways

• Gaia achieved over $90 million in revenue for 2024, marking an 11% year-over-year growth.
• The company reported an 86% gross margin and a 93% cash contribution margin.
• Gaia is exploring new revenue streams through GAIA Marketplace and its Ignaton subsidiary.
• A management transition is underway, with Kirsten Medvedev set to become the new CEO.
• The company is leveraging AI to enhance member engagement and reduce translation costs.

Financial Results

• 2024 Revenue: Exceeded $90 million, up 11% from the previous year.
• Gross Profit: Nearly $79 million, with an 86% margin.
• Adjusted EBITDA: Surpassed $15 million, achieving a 17% margin.
• Free Cash Flow: Just under $3 million, or 3%.
• Q1 2025 Cash and Equivalents: Over $13 million, up from $5-6 million at the end of last year.
• Projected 2025 Revenue: Expected to exceed $100 million, with a projected gross margin of 87% and free cash flow of $5.5 million (6%).

Operational Updates

• Subscriber Base: 867,000 subscribers as of Q1 2025, with a target of 5 million.
• International Members: 44% of the base, aiming for over 50% within three years.
• Content Production: 88% of content is exclusive and produced in-house.
• Gaia Marketplace: Offers retreats, courses, and products with a 10% discount for members.
• Language Accessibility: Content available in Spanish, German, and French.

Future Outlook

• Price Increase: Planned for March 2026.
• Revenue Streams: Expansion through Gaia Marketplace and Ignaton subsidiary.
• International Expansion: Goal to increase international members to over 50% in three years.
• AI Initiatives: Focused on reducing translation costs and creating an AI chat experience for members.
• ARPU: Aiming for over $107 per subscriber annually.

Q&A Highlights

• Growth Drivers: Combination of subscriber growth, price increases, and alternate revenue streams.
• AI Investment: Aimed at reducing translation costs and improving member retention.
• Marketplace Strategy: Shift from Egyptian tours to Peru tours due to geopolitical concerns.
• Board Priorities: Revenue, ARPU, retention, capital expenditure, cost of acquisition, and content adjustment.

In conclusion, Gaia Inc’s strategic initiatives and financial performance were thoroughly discussed at Sidoti’s Small-Cap Virtual Conference. For more detailed insights, please refer to the full transcript below.

Full transcript - Sidoti’s Small-Cap Virtual Conference:

Jim, Host, Sidoti and Company: Good morning, and welcome to the Sidoti and Company June Virtual Investor Conference. The next company to present is Gaia. With us, we have the CEO, James Colhoun and the CFO, Ned Preston. There’s about, we should have thirty minutes for the presentation. We should have time at the end for q and a.

So if you do have a question, you could type that into the q and a tab at the bottom of your screen. And, with that out of the way, it’s all yours, guys.

James Colhoun, CEO, Gaia: Thank you, Jim. Hello, everyone. So, yeah, as Jim mentioned, my name is James Colhoun. I’m the CEO, and, to my right here is Ned Preston, CFO. So Gaia is a, conscious community and streaming network.

And, you know, this business right now is a pure play streamer. It’s generating cash with high margins, and we have, some very high leverage opportunities that are in in front of us at this minute. Essentially, the core of the business is, you know, quote, unquote, a conscious Netflix or a spiritual Netflix, and we have a a community of over 800 and, you know, 860,000 members globally that are paying a monthly subscription price. And if you skip to the next slide here. So we have, the core of the business, the $13.99 a month or a 119 a year, membership tier.

And we also have a premium membership tier, Gaia Plus, at $299 a year, which includes live broadcasts. So on our campus here, we have a live broadcast center. We have about six events a year. We can see about 300 people in person, and we also livestream that, including replays to our premium membership tier. You know, the the three content categories that we speak to are essentially an aggregate of underserved niches, globally, you know, in personal growth and transformation, ancient wisdom, and unexplained mysteries, and wellness yoga and meditation.

Some of you may be familiar with the previous incarnation of the brand, Gaiam. If you you know, Ned and I often travel for work. And if you go to the the gym in a hotel, you’ll see a Gaiam yoga mat. You know, this was a physical products company that we sold off in 02/2016. You know, we used part of the proceeds from that sale to buy back stock and also to accelerate the digital business, which is what, you know, what is the core of the business today.

Our demographics skews female, older, highly educated, and high disposable income. And, generally, they have a lot of time on their hands, and they’re they’re very intrigued by a lot of the experts, talent, and content that we have on the on the site. You know, some sort of highlights from the the core business is that, you know, we achieved positive free cash flow for q four and the full year 2024. We have an 86% gross margin and a 93% cash contribution, and we have this accelerating CAC to LTV ratio. So our, you know, acquisition costs have remained relatively similar since pre COVID to today, yet our LTV, you know, has essentially doubled.

And so what we’re seeing is that the, you know, leverage in the business, not only from a margin perspective, but also from an acquisition to LTV perspective is, accelerating as the maturity of the member base, you know, continues to, expand. In terms of addressable market, I think I think we missed this slide. Did we miss this slide on the no. Okay. In terms of addressable market, there’s some, you know, studies here done on, you know, global SVOD households.

Obviously, you know, you know, streaming video on demand is a category that is continuing to expand globally, you know, even domestically. And, you know, people have gone from, you know, one subscription service to having three or four in a household. And so this continues to sort of build our top of funnel in terms of addressable market. Then we look at, you know, consumers willing to pay a subscription and interested in at least one of our topics, then our total TAM, and then our subscriber target. So, you know, we’re, you know, encroaching upon 1,000,000 subscribers currently, and we believe there’s a 5,000,000 subscriber target for for the business.

When we look at revenue and members, you can see the the step up here, you know, from, you know, 2018, you know, $40,000,020.24, 90,000,000. Analysts have us at, you know you know, consensus is is over a 100,000,000 for, you know, 2025. And you see the the the the member step up here as well. And, you know, the other thing to note is, you know, sort of q one twenty five, our our member count was 867,000. So we’re on track for, you know, a very healthy year in terms of, revenue and and members.

When we look at ARPU and GP per employee, you know, this is sort of, you know, two metrics that show how are we, you know, continuing to expand upon the, you know, average revenue per user alongside maintaining, you know, strict controls on OpEx and and and sort of proving out, you know, continued leverage in the model. ARPU is, you know, north of a 100 and, you know, $7 a year subscriber. We had a price increase in q four sort of towards the latter half of last year, and then we have another price increase slated for q one of twenty twenty six. And so, you know, that ARPU will continue to expand. And then you see here on the right hand side, GP per employee.

So, you know, we finished you know, for the full year 2024, it was over 700,000. For q one, we’re over 800,000. And we see the business potential, you know, being north of a million dollars GP per employee, which is, you know, one, you know, one way to reverse into a metric that we do not need to expand our OpEx in line with our top line revenue. We can grow it at a fraction of our top line revenue. One of the key things that differentiates us compared to other streamers is that we have a campus in Colorado about thirty minutes from DIA, you know, quite close to Boulder, where we produce a lot of our content.

And by doing that, we are able to not only own the vast majority of our content library, but also do it at a very efficient rate. So 88% of our content is exclusive with our own in house production team and no dependence on outside studios. Additionally, when you look at the viewership patterns of our members, it’s a it’s just it’s in stark contrast to to many of the major streaming companies out there. So a lot of people view legacy content on our platform as opposed to just the latest, you know, series that that came out. And this gives us a strategic advantage in that, you know, people value content that we produced in 2014 somewhat equally to content that we just released this year.

So one of the ways we measure that is that we measure the return on content based on a royalty pool where we attribute a dollar per minute to viewership on the content, and we’re able to track the performance of, you know, legacy and new content. And there’s a cohort of content that we produced in 2014 when the streaming service started. You know, it cost us $2,000,000 to produce, and that has returned over 23,000,000 in gross profit since its inception, and we’re continuing to see, you know, returns on on that content, asset. And another way to sort of look at this, content efficiency score or multiple is to look at our gross profit, you know, for the full year ’24, look at the amortized value of content on our balance sheet, and then look at the efficiency multiple. And, you know, comping us to Netflix, you know, you see that we we did just, you know, 80,000,000 last year.

Oh, sorry. 80,000,000 in GP. Yes. Then the amortized value of the content was, you know, close to 40,000,000. And as we have a two x multiple of efficiency, and Netflix on their, content and GP was a point six.

So just another way to look at how efficient it is for us to produce this content. In terms of our capacity to expand internationally, we have rights for 98% of our content library internationally. We also have our foreign language teams located in house in our campus here, so we do not need to set up foreign offices with foreign teams. We’re currently live in Spanish, German, and French as alternate language languages to English, And we have also native language titles that are sort of localized in each of those languages. And right now, our international members are at 44 outside of The US, and we anticipate that being north of 50% within three years sort of in line with with other streamers, and we currently have members in in a 185 countries.

When it comes to distribution, we have, our direct platform, of course, via the web. If you go to guy.com, you’ll see that. We also have, you know, what we call, quote, unquote, party, which are apps that we own and we have the customer data. So that’s iPhone, Android, iPad, Roku, Fire TV, and Apple TV. And if you look down the bottom there, you’ll see that we have quite a lot of, you know, ratings from our community that are public.

You know, on the App Store, you know, a 128,000 ratings, 4.8 out of five. On Amazon, you know, nearly 15,000 ratings, 4.1, and Trustpilot, 4.3, 10,000 ratings. So an enormous amount of social proof. And then at the top right here, you’ll see some logos, and this refers to our party distribution. So this is where we have, know, distribution partnerships on a revenue share model with YouTube, Amazon Prime, Fios, Xfinity, and Comcast.

And with Amazon, you know, we’re one of the fastest growing channels in their specialty channel sort of category in The US. We also have Amazon Prime, distribution in Mexico, The UK, Australia, New Zealand. These are just here some sort of growth levers in the business on the core business side that are, you know, recently launched or upcoming. At the end of last year, we launched GAIA Marketplace, which is essentially like a conscious Costco for our members. So where where members get a a 10% discount off, you know, retreats, courses, and and physical products.

You know, this business has is is early in its inception, but we have very high hopes for it in terms of maximizing the ARPU of our member base. And if you think about our member base, they’re they’re very educated, high disposable income, and we’ve only ever asked them for, you know, roughly a $119 a year with our core membership. Now we we’ve just had a sold out, you know, retreat experience in Peru, which was, you know, circa $9,000, and we have, we’re doubling the capacity on that tour in the fall, and it’s it’s already over half sold out. So to take someone from a $119 to, you know, $9,000, you know, proves the the the the the opportunity in our in our member base. And with this marketplace initiative, we’re not booking any of the gross sales.

We’re booking the the the the margin that we keep on that. So for instance, a $10,000 tour, you know, members get, you know, a 10% discount. So say it’s 11,000, then, you know, we charge them 10,000, and then we keep all of that cash until we pay the vendor. And then we net about, you know, $2,000 on average from that sale, which we book as a 100% gross margin, which is why you’ve seen a little bit of a step up in our margin, you know, in in ’24 and and sort of as as, analysts have us for for ’25. We had the price increase, as I mentioned, slated for March 2026 alongside, the rollout of some product feature expansion.

You know, we did a capital raise recently where, we’re applying this capital to building our own conscious AI, generating chat model within the product and also a Gaia community platform. And this is the sort of, you know, essentially the final differentiator for us from most streamers. You know, if you’re walking down the street, you don’t say to somebody, oh, wow. You’re a Netflix subscriber as well, but our Gaia members do say that about each other. You know, Ned has a Gaia backpack, and he often gets spotted, you know, on the trains at at, you know, den Denver Airport and so And, you know, it’s a very active community, and people feel a much stronger affinity with the brand than they would other streamers.

One other thing I’d add here at this point is we have a a private subsidiary that we own 70% of, which recently launched at a biohacking conference called Ignaton. This is a quantum healing technology supplement play that Yurka is really focused on. Yurka is the, you know, founder and chairman, you know, has done, you know, six IPOs. One of his businesses, you know, went north of 4,000,000,000. And then the next was you know, became Whole Foods as Wild Oats rolled up there.

And then solar company, Gaiam Gaia, and now this new subsidiary. So, you know, we’ve raised some capital in that entity. It’s its own private entity. It’s got you know, it it has its own capital, and it’s going to market in, you know, officially in q three. And a lot of our, you know, investor base, if you look at our cap table, a lot of the comments we get from particularly investment banks is that we have a cap table that precedes our our market cap.

And I think many of the investors are also seeing this private subsidiary as a as an unvalued call option in the business. And I’ll I’ll pass over to Ned now to speak about some of the finances.

Ned Preston, CFO, Gaia: Yeah. Just a couple of slides, and we’ll make sure we leave at least ten minutes at the end to, answer some questions. So just to look back at our 2024 performance, as James mentioned earlier, we did top $90,000,000 which is, over 11% year on year growth. Our gross profit was at, just under $79,000,000 or 86%, gross profit margin. And then our cash contribution margin is 93%.

So for those of you that have heard James and I speak in the past, we very much look at those margins. The fact that we have a growing, recurring revenue base and deferred revenue, We we really do, want to angle ourselves as almost like a conscious or or spiritual SaaS company, lifestyle SaaS company, because we feel as though we will not only stay at these levels, but, some of these percentages will will improve. If if you just look down the p and l, our adjusted EBITDA was over 15,000,000 or 17% EBITDA margin, and our free cash flow last year was, just under $3,000,000, or 3%. Good lead into kind of our benchmarking, outlook on what we believe our business model looks like at a a 100 to $200,000,000 in revenue. That left hand column will be approximately where we would be this year.

That’s a $100,000,000 on average across the year, and we’ll we’ll top a $100,000,000 for a total year in 2025. But, as you can see, we we retain those those very nice cash contribution margin at 93%. Our gross margin will actually increase to 87% at that stage. And then, we’re letting $5,500,000 or 6% drop to the bottom line from a free cash flow standpoint. The leverage that James speaks of, really takes off in in the the years or or revenue levels, beyond that.

Because as you can see, you know, at a 150 and $200,000,000, you have our free cash flow, more than tripling as a as a percentage and and from a pure dollar standpoint, a a lot of acceleration in that regard. Lastly, just to take a peek at our balance sheet, and this is through q one. We finished the quarter at just over $13,000,000 in cash and equivalents. That was up from 5,000,000 or $6,000,000 at the end of last year due to the raise. We are putting that that money to, to work at this point in time, but, we do foresee that our cash and cash equivalents will will stay up and over, you know, that $1,112,000,000 dollar, level here in the short term.

And this does not include the access that we have to a $10,000,000 line of credit, which, we, have not had to lean in on, over the last couple of years that we’ve been here at the end of any quarter. So total assets, that’s that’s increasing with that cash balance to just under $150,000,000 I mentioned earlier deferred revenue in the time that we’ve been here, that’s, more than doubled. It’s up over $21,000,000 at this point in time. Do have our, accounts payable and, payments, under in in a very good, best practices type of form. And, overall, our, our total liabilities and and, assets at just under a 150,000,000, as I said.

One one thing that’s not on our balance sheet that we like to point out to investors is the fact that we do have a media library that’s valued at over a $182,000,000, and a member base. If you were just to do take conservative numbers of our 867,000 members, that that, that would be over 300,000,000. And our our net operating loss, we have some NOLs, at just under $19,000,000. So we just kinda put that out there, as kind of a a little bit of a a drastic if we were ever to kind of to go and sell off our company, which we have no anticipation of doing just on paper. Our, our our company would be worth over $20 per share.

And even if we were to kinda sell that off, it would be in the mid teens. So just a way to look at the strength of our our balance sheet and overall business. So with that, Jim, Jim, I’m gonna ask you

James Colhoun, CEO, Gaia: to come back on here,

Ned Preston, CFO, Gaia: and we’d be happy to to, fill some questions.

Jim, Host, Sidoti and Company: Perfect. Alright. Great. So, you know, the one, you talked about growing revenue up to 150, 200,000,000 over the next few several years. But, you know, what’s the strategy?

Is it to add more subscribers or to increase the average revenue per subscriber?

James Colhoun, CEO, Gaia: I think it’s a it’s a combination of both, Jim, and, I I would see it in in in this way. of all, we we tend to lag the streaming industry in terms of price increase and our current pricing. So we’re $13.99 a month currently. If you look at Netflix and other streamers, you know, they’re north of, you know, 16 or more. And so we feel there’s still headroom for us to increase prices on our membership tier, which we anticipate doing in in March year, which will bring some growth.

Then on top of that, you know, we have growth in our core member base and these alternate revenue streams that I I spoke to, which was, you know, around marketplace and also, you know, the Ignatant subsidiary and so So, you know, these give us an opportunity to to to derive revenue growth from not only subscribers, but also, you know, price increase and alternate revenue streams.

Jim, Host, Sidoti and Company: And, James, can you talk about your, new role with the company? I know that there’s there’s management transition, occurring, and Kirsten will assume the role of CEO, I I assume, if she hasn’t already, over the next couple weeks. Yeah. Are you gonna be focused on that in increasing the average revenue per subscriber? And and, you know, where where do you look to do that?

James Colhoun, CEO, Gaia: So, Jim, essentially, you know, following some some exciting discussions at our last board meeting, you know, we’re keeping the same three core executives, myself, Ned, and Kirsten, and we’re, you know, shuffling our roles to sort of, you know, best suit the opportunities that we see are in hand for business. You know, you know, three key opportunities we see that can create a breakout event in stock of which, you know, I’m the largest internal shareholder are around the new subsidiary, Ignaton, which we own 70 off. So, you know, this recently launched at the biohacking event at a biohacking conference in Austin. And, you know, after the the the presentation, you know, we sold out of stock you know, within about five hours. And this is a very strong signal that, you know, this could be a, you know, high growth, you know, private subsidiary in the business.

So I’m gonna be supporting that business in terms of its, you know, go to market, you know, potential capital raises. And just to put a, you know, double click on that, that will have no dilutive effect on on Gaia. So it’s its own private subsidiary. And then also license deals for that 8% subsidiary. So this is a quantum technology for healing.

We can enhance other products or pharmaceuticals or so to provide additional revenue streams to ramp up the revenue rate of that business faster than just the direct supplement sales. And you said that that’s a, you know, a a huge growth accelerant to the business. And then the thing is licensing our media library to AI and other sort of distributors where we’re able to sort of generate more returns on this asset that we have, you know, been building since 02/2014, and we’ve been very guarded about. And we’re, you know you know, beginning the process of, you know, licensing that to the to the market in particular for training data for these AI companies. So, you know, over the past two years in my role as either COO or CEO, you know, I’ve had a lot of investors say, what’s gonna cause a breakout of the stock?

You know, we were trading, you know, at a multiple that was, you know, vastly different pre COVID. And now here we see it in 02/2025, and the business has never been in better shape. We’re generating cash. We’re growing. And, you know, there’s an exciting opportunity for us to create a breakout of the stock, you know, as as we sort of lean into some of these initiatives.

And that’s what I’m gonna be focused on.

Ned Preston, CFO, Gaia: And, Jim, if I may just elaborate on our new CEO, Kirsten Medvedev. She’s not so new. She’s been here for over nine years with the company as our our president leader of our content and has had over half the company reporting into her. But we look forward to having her on on, virtual meetings like this, and she’ll be hitting the roads with us to investor conferences here this fall. But, but there’s a lot of excitement around there.

She and I can kinda hold down the fort and get James out here working on these, upside revenue, opportunities to to kinda bring us to that tipping point as a as a company as a whole.

Jim, Host, Sidoti and Company: So so it sounds like that initial launch of the Ignatons supplements went went fairly well down in Texas. Have you

James Colhoun, CEO, Gaia: I think it yep.

Jim, Host, Sidoti and Company: Have you disclosed pricing for their product, and will it be accretive to operating margins?

James Colhoun, CEO, Gaia: Look. You know, investors can go to ignotome.com currently. It’s an it’s an early version of the site. You know, the the the purpose of, you know, releasing the product at this conference was sort of our coming out party. You know, we’re officially going to be, you know, quote, unquote, watching this publicly in July.

And, you know, let’s just say we were expecting x, and it was x times, you know, two to three that happened at the conference. You know, we had huge lines of people there. We had two investors that were in attendance that are, you know, major shareholders of the business. Plus, we had an analyst there from a from another investment bank, Ralph, that have written up on this. It was it was so impressive to them.

And so, you know, we wanna just, you know, chop wood, carry wood with that business, just continue to execute on bringing it to market. But it’s a great signal that it could be something that is, you know, very accretive in value to the business. And, you know, we see it as, like like I mentioned earlier, an unvalued call option in the business. We’re getting no value recognition for this private subsidiary so far, and we’re very excited to scale it out. It’s not the time that Europa, our founder and chairman, has done this before.

He’s done this with two or three other companies that he eventually took public. And, you know, if you speak to him about it, he anticipates, you know, building and then selling this business within, you know, a two to three year time frame, and that’s the current current focus.

Jim, Host, Sidoti and Company: And and do you have capacity to meet the the current demand levels? Do you have to ramp up? Do you need invest in CapEx, or or do you think what you have

James Colhoun, CEO, Gaia: in place now will suffice? We have the capacity to produce stock, consummate to about a 100,000,000 in revenue with our current lab and our current staffing here. So we are we’re very ready for upside in that business, and it’s it’s not difficult for us to expand capacity with with, you know, minimal investments in CapEx.

Jim, Host, Sidoti and Company: Can you talk about your investments in AI? It’s the easy one is using AI to translate into other languages. But what are the other uses of AI to retain subscribers and to grow the subscriber base?

James Colhoun, CEO, Gaia: So as you mentioned, of course, AI is helping us reduce our translation costs significantly on our current language stack, which is Spanish, French, and German. We we do anticipate at some point in the future, you know, adding multiple other languages. But for right now, we’re we’re using AI to to to vastly reduce the cost of translation, you know, subbing and dubbing. Additionally, you know, we have seen that there’s these large scale sort of ramp up of monthly active users on on OpenAI and Gemini. And, essentially, what we’re building ourselves is a conscious generative AI chat experience that we’ll be launching within our product, specifically trained on our own data.

And so that our members, as they’re watching content, will be able to query this model, this retrieval augment augmentation generation model, and, you know, ask questions about the content, about, you know, the purpose of their life, about healing, about transformation, you know, topics that are very close to our members’ heart. And we believe you know, our thesis is that if we’re able to keep our members and engage them on platform longer, that we’ll be able to generate, you know, higher retention rates moving forward. And, you know, we’ve seen already, you know, q one twenty four to q one twenty five improvements in retention on top of a price increase, and we think that this AI initiative will be able to drive further retention and help us, help us grow our member base and and recurring revenue.

Jim, Host, Sidoti and Company: And then can you update us on, the the launch of the marketplace initiatives? I I know you had to, transition some of your your, Egyptian trips, because of the geopolitical situations there to to Peru. How’s that doing? And, you know, in general, how’s the marketplace initiative, been ramping?

James Colhoun, CEO, Gaia: Sure. So, you know, we where with marketplace, we see it as a an opportunity for us to expand ARPU on our on our member base, you know, with these high value sort of tours, you know, courses and training programs. When we launched, you know, we had a lot of interest early on with some tours in Egypt, which correlates with, you know, one of our series, ancient civilizations. Based on that signal, we had extra inventory in q one of this year for Egypt. And, you know, at the very end of last year, the US government issued a travel warning to Egypt.

Obviously, there’s a little bit of instability there. And so less people traveled, and, you know, that caused us to be a little softer on that revenue prediction for that business unit than we anticipated. Like I mentioned, we’ve pivoted to sort of more Peru travel, and, you know, we’re seeing a great result there. I think a lot of the inventory or sort of demand has shifted to sort of Continental US and and South America. So, you know, that business is something that we see as as an opportunity for us to to sort of go to our members and offer them the next step on their on their journey without them, again, having to go off platform so we can sort of own the, quote, unquote, conscious life cycle of the consumer that comes into Gaia.

They can do you know, watch content and then do tours, training programs, you know, courses, you know, physical products that are in the space. And and and plus, also, it’s an opportunity for us to sort of precede the Ignatome launch, which we’ll be launching to our community in July. And that’s an it’s a it’s a great opportunity for us to sort of kick start that business as well.

Jim, Host, Sidoti and Company: And and the last one, when you would and the board, when you look at the business, what are you looking at to see if your plans are actually starting to today hold? Are you looking at the revenue growth, the margin expansion, the cash flow? Is it a combination of all, but which ones really should investors be looking at?

Ned Preston, CFO, Gaia: Yeah. I’ll take that. I think when James and I arrived here just just two years ago, almost exactly, that, internally and externally, people were focused just so much on on our member base, which is important, obviously. But I think what we look at now are are more the revenue, the ARPU, back to my, thoughts around being considered a SaaS company. It’s it’s a it’s gonna be things like retention of of our customer base.

And and then really just managing our portfolio of of our of our capital spend. I think historically, we, you know, we’ve been having to, spend, you know, over 40% of of our revenue on on marketing. And so I think what, James and Kirsten and myself and and the board are really looking at is is, ways to go fish in the right ponds, to find our our guiding members using technologies such as AI to find the right, customers, retain them, and maybe spend a little bit less on marketing, a little bit, you know, more in other areas or let it drop to the the the bottom line. We we really are I think with Kirsten coming on board, we’re gonna be looking at adjusting our our content a little bit and and potentially, opening up our market. We feel as though maybe consciousness and spirituality isn’t completely mainstream, but it’s becoming more mainstream.

And I think we have the opportunity to go downstream and and and start getting a younger member base. So it’s all of those things, Jim. But but we did have definitely shifted in the last couple of years to more of, like, a pure revenue, and we wanna get to higher, valuation and multiples for our for our share price for our shareholders.

Jim, Host, Sidoti and Company: So it sounds like you’re also focused on reducing the the cost to acquire new subscribers.

Ned Preston, CFO, Gaia: Or, yeah, at a minimum, be more smart about it. Yeah. So, I don’t think it’s gonna be a massive drop from, like, 42 to 32. But I think through using AI and and bots and and things like that, we can, continue to to grow our our member base, as I said, using different levers that maybe we that weren’t available to us before.

Jim, Host, Sidoti and Company: Okay. Great. Alright. Well, we are out of time. I wanna thank you for for presenting today and taking the meetings yesterday and today.

I know we’ve, kept you busy. Appreciate your time. And, I guess we’ll be talking in in about a month or so as the quarter is just about to end.

Ned Preston, CFO, Gaia: That’s right. Thanks, Jim.

James Colhoun, CEO, Gaia: Thank you, Jim.

Jim, Host, Sidoti and Company: Thank you.

Ned Preston, CFO, Gaia: Bye, all.

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