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Water Tower Research is a leading equity research firm that provides research on micro, small and mid cap companies.

Water Tower Research was founded by Wall Street veterans after witnessing a fundamental shift in the investment research industry with the result being a declining knowledge base among investors, a lack of awareness and a shrinking pool of fundamental research being conducted on companies across the small-cap and micro-cap spectrum. The same issues are now increasingly occurring in the mid-cap space. This sea change within the investment community is impacting not only the companies themselves but also current shareholders and potential investors. With significantly less active sell-side sponsorship by Wall Street, a substantial information gap has developed between companies and various constituents in the financial community. The net result is fewer channels for insight and information to flow between companies and investors.

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<ul><li>Many of the companies that participated in our recent Consumer Products Virtual Investor Conference have been working hard in righting the ship following the post- pandemic hangover that a lot of consumer names have suffered through.</li><li>There were several new management teams with new strategies, and a lot of talk about inflection points.</li><li>Vera Bradley’s CEO, CFO, and CMO have each been there for less than two years, and the company is about to roll out its Project Restoration strategic initiatives next month, which management believes will take the company into the third <span style="font-size: var(--content-font-size);">major stage of its lifecycle.</span></li></ul>

Many of the companies that participated in our recent Consumer Products Virtual Investor Conference have been working hard in righting the ship following the post- pandemic hangover that a lot of consumer names have suffered through.There were several new management teams with new strategies, and a lot of talk about inflection points.Vera Bradley’s CEO, CFO, and CMO have each been there for less than two years, and the company is about to roll out its Project Restoration strategic initiatives next month, which management believes will take the company into the third major stage of its lifecycle.

Consumer Products Conference Recap - June 20, 2024

Equity Bottom-Up

<div><div><div><ul style="list-style-type: disc;"><li><p>Gaia reported sequential revenue growth and increased member count during its seasonally weakest quarter.</p></li><li><p>Revenues were $19.8 million versus $20.7 million in 2Q22, but up sequentially.</p></li><li><p>Member count was up 8,000 to 774,500.</p></li></ul></div></div></div>

Gaia reported sequential revenue growth and increased member count during its seasonally weakest quarter.Revenues were $19.8 million versus $20.7 million in 2Q22, but up sequentially.Member count was up 8,000 to 774,500.

Gaia, Inc. - Reports Continued Member Growth in a Seasonally Weak Quarter

<ul><li>Gaia reported 1Q23 revenue of $19.6 million versus $21.8 million in 1Q22, in line with expectations, but more importantly, this was the first quarterly sequential improvement in a year, which was also accompanied by the first member count growth in a year (+7,500 members).</li><li>Sequential revenue growth, member count growth, and improved retention all indicate a fundamental turn in Gaia’s business.</li><li>The company seems to have completed the cycle-through of its “COVID cohort bulge” and is now left with higher lifetime value members, providing a solid base for forward growth.</li></ul>

Gaia reported 1Q23 revenue of $19.6 million versus $21.8 million in 1Q22, in line with expectations, but more importantly, this was the first quarterly sequential improvement in a year, which was also accompanied by the first member count growth in a year (+7,500 members).Sequential revenue growth, member count growth, and improved retention all indicate a fundamental turn in Gaia’s business.The company seems to have completed the cycle-through of its “COVID cohort bulge” and is now left with higher lifetime value members, providing a solid base for forward growth.

GAIA, INC. - 1Q23 Results Signal Positive Inflection with Renewed Membership Growth

<ul><li>Gaia reported 4Q22 revenues of $19.6 million versus $20.8 million in 4Q21, and 2022 revenues of $82.0 million versus $79.6 million in 2021.</li><li>Given the small Yoga International acquisition in December 2021, this implies some revenue contraction in the core business for 2022.</li><li>Despite the top-line challenge, net income was slightly positive for the year after adjusting for one-time legal fees and the anticipated SEC settlement accrual, which confirms the resilience of Gaia’s financial model.</li></ul>

Gaia reported 4Q22 revenues of $19.6 million versus $20.8 million in 4Q21, and 2022 revenues of $82.0 million versus $79.6 million in 2021.Given the small Yoga International acquisition in December 2021, this implies some revenue contraction in the core business for 2022.Despite the top-line challenge, net income was slightly positive for the year after adjusting for one-time legal fees and the anticipated SEC settlement accrual, which confirms the resilience of Gaia’s financial model.

Company Appears to Be Back in Growth Mode in 2023 After a Challenging 2022

Gaia’s Various Growth Avenues – Fireside Discussion with CFO Paul Tarell

United States

Gaia, Inc. operates a global digital video subscription services company. The Company offers a digital content library on multiple internet-connected devices. Gaia serves customers globally.

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Gaia (GAIA US)

Consumer Products Conference Recap - June 20, 2024

Many of the companies that participated in our recent Consumer Products Virtual Investor Conference have been working hard in righting the ship...

Water Tower Research

Gaia, Inc. - Reports Continued Member Growth in a Seasonally Weak Quarter

Gaia reported sequential revenue growth and increased member count during its seasonally weakest quarter. Revenues were $19.8 million versus $20.7...

Water Tower Research

GAIA, INC. - 1Q23 Results Signal Positive Inflection with Renewed Membership Growth

Sequential revenue growth, member count growth, and improved retention all indicate a fundamental turn in Gaia’s business.

Water Tower Research

Company Appears to Be Back in Growth Mode in 2023 After a Challenging 2022

Gaia reported 4Q22 revenues of $19.6 million versus $20.8 million in 4Q21, and 2022 revenues of $82.0 million versus $79.6 million in 2021.

Water Tower Research

Gaia’s Various Growth Avenues – Fireside Discussion with CFO Paul Tarell

KEY POINTS Gaia’s growth avenues have expanded from just using paid media advertising to add new monthly members to a range of strategies,...

Water Tower Research

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