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Water Tower Research

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>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