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Gaia trims losses, expects profitability in Q3

LOUISVILLE — Gaia Inc. (NASDAQ: GAIA), a Louisville-based yoga-focused streaming video service, cut its losses nearly in half and grew its revenue by almost a quarter in the second quarter of fiscal year 2020 compared with the same period in 2019. The firm posted a $2.52 million loss on $16.15 million in sales. That’s compared with a $4.47 million loss on $13.16 in sales in the second quarter of last year. “The results for the second quarter represent 18 months of disciplined execution to drive operating efficiencies across the business while balancing growth initiatives and spend discipline,” Gaia chief financial officer Paul Tarell said in a press release that accompanied the firm’s earning report issued after the close of trading Monday. “We have continued to benefit from higher member growth due to the success of our exclusive content, smart marketing spend and improved retention, which has allowed Gaia to transition to positive earnings and free cash flows starting in July.” Gaia had 663,400 paying subscribers as of July 30, up 58,300 for the quarter. The firm says it expects to post a profitable quarter in Q3.  Wall Street appears to have anticipated Gaia’s improved performance as the firm’s stock finished trading Monday at $10, up 8.9% on the day.   
Source: BizWest

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