Gaia Expects Q4 Revenue Near $22 Million, Above Recent Run Rate

Gaia expects fourth-quarter revenue to approach $22 million, above its recent quarterly pace, while keeping its target of positive free cash flow for the period.

Management put revenue at about $21 million on a quarterly basis over the latest 60-day period. It expects Marketplace trips to account for part of the increase toward $22 million.

Gaia management maintained its fourth-quarter goal of positive free cash flow and pointed to more than $6 million in annualized savings as support for the outlook.

Gaia’s third-quarter results showed revenue down 12% year over year to $22 million and a net loss of $3 million, unchanged from the second quarter. Gross margin was about 85%. The revenue decline came as Gaia pulled back on acquiring members with lower average revenue per user and focused on direct subscribers. Management also reported that churn improved by more than 20% and average revenue per user rose 8% from the first to the third quarter.

The $22 million figure is a fourth-quarter outlook; Gaia has not yet reported results for the period.