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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.

Research from Water Tower Research

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Equity Bottom-Up

<ul><li>Gaia reported 3Q24 revenue of $22.2 million, up 10% from the year-ago quarter, strong EBITDA of $4.0 million, and slightly positive cash flow.</li><li>During the quarter, the company initiated the first subscription price increase in its history (by at least $2 per month) and indicated positive initial results, with modest member attrition (mid-single digits), which contrasts favorably with strong ARPU growth (upper teens).</li><li>This allowed Gaia to guide to strong revenue <span style="font-size: var(--content-font-size);">growth for 4Q24 to upwards of $24 million, likely with a </span>significant contribution to the EBITDA and bottom line.</li></ul>

Gaia reported 3Q24 revenue of $22.2 million, up 10% from the year-ago quarter, strong EBITDA of $4.0 million, and slightly positive cash flow.During the quarter, the company initiated the first subscription price increase in its history (by at least $2 per month) and indicated positive initial results, with modest member attrition (mid-single digits), which contrasts favorably with strong ARPU growth (upper teens).This allowed Gaia to guide to strong revenue growth for 4Q24 to upwards of $24 million, likely with a significant contribution to the EBITDA and bottom line.

GAIA: Reports Good 3Q24 Results; Price Increase to Fuel Further Revenue Growth