Shares of Gaia, Inc. (GAIA) stock was rising in the pre-market session today after falling 0.81% at previous closing. GAIA stock price saw a push of 4.98% to reach $11.60 a share at the time of this writing. Let’s see the reason behind this bull.
Though the GAIA stock is hot among investors so far, the reality is somewhat different as rising GAIA stock price is not attributable to any recent news today. GAIA stock rallied 9.3% in the previous week on May 03, 2021, in response to its impressive first-quarter 2021 earnings results. Before the announcement of earnings results, GAIA stock was at loss of 13% for the past month.
First Quarter 2021 Financial Results:
- Gaia stock showed impressive growth in quarterly revenue as it went up by 30% in the first quarter of 2021 to reach $18.9 million as compared to $14.5 million in the same prior-year period.
- Gross profit for GAIA stock totaled $16.5 million, increased by 31% YoY. Gross margin moved from 86.9% in Q1 2020 to 87.1% in Q1 2021.
- Continued efficiency improvements and reduced customer acquisition cost resulted operating expenses of 85% of revenues in Q1 2021 as compared to operating expenses of 109% of revenues in Q1 2020.
- Net income of $0.4 million or $0.02 per share showed $4.0 million improvement in the first quarter of 2021 as compared to net loss of $3.6 million or $0.19 per share in the same tenure of prior year.
- As of March 31,2020, GAIA stock had cash balance of $13.0 million.
Share Repurchase Program:
Gaia’s board of directors, considering strong cash flow generation over the past year by Gaia stock, has approved share repurchase program of 5,000,000 shares of its class A common stock. There is no fixed expiry date for repurchase plan and it can be done via both open market and privately negotiated transactions.
Renewal of Shelf Registration Statement:
Renewal of Shelf Registration Statement for GAIA stock on Form S-3 with SEC for 10,000,000 shares of Class A common stock has been approved by the board of directors in order to provide flexibility to the future business combinations as well as content library acquisitions.
GAIA stock is performing well today despite of absence of any specific reason. First-quarter financial results points to the overall growth of the GAIA stock over the year. Hence, investors need to keep an eye on it.