Revenue and Gross Margin Growth
Revenues for the third quarter grew 10% to $22.2 million, marking the fifth consecutive period of year-over-year top-line growth. Gross margin improved to 86% from 85.2% a year ago.
Subscription Price Increase and Revenue Impact
For the first time, Gaia implemented a subscription price increase, which is expected to push revenue from $22.2 million to almost $24 million in Q4.
Member Growth and Retention
Member count grew by 7% year-over-year, reaching 846,000. The focus on attracting annual members and increasing retention has been successful.
Positive Cash Flow
The third quarter marked Gaia's sixth consecutive quarter of positive operating and free cash flow, with an improvement of $1.5 million during the quarter.
Launch of Gaia Marketplace and Premium Membership Growth
Gaia Marketplace is expected to contribute full revenue in Q4, and Gaia Plus membership is growing at a rate 3 to 4 times faster than overall member growth.
Partnership with ElevenLabs
Gaia partnered with ElevenLabs for AI-powered dubbing and translation, enhancing global content accessibility.