Gaia Inc (GAIA) 2023 Q3 法說會逐字稿

Good afternoon, everyone, and thank you for participating in today's conference call to discuss Gaia, Inc.'s financial results for the third quarter ended September 30, 2023. Joining us today are Gaia's CEO, Jirka Rysavy; COO, James Colquhoun; and CFO, Ned Preston. Following some prepared remarks, we will open the call for your questions.

大家下午好，感謝大家參加今天的電話會議，討論 Gaia, Inc. 截至 2023 年 9 月 30 日的第三季度財務業績。今天加入我們的是 Gaia 的首席執行官 Jirka Rysavy；營運長 James Colquhoun；和財務長內德·普雷斯頓。在一些準備好的發言之後，我們將開始電話詢問您的問題。

Before we get started, however, I would like to take a minute to read the Safe Harbor language. The following constitutes the Safe Harbor statement under Private Securities Litigation Reform Act of 1995. The matters discussed today include forward-looking statements that involve numerous assumptions, risks and uncertainties. These include, but are not limited to, our ability to attract new members and retain existing members.

然而，在我們開始之前，我想花一點時間閱讀安全港語言。以下是 1995 年私人證券訴訟改革法案下的安全港聲明。今天討論的事項包括涉及大量假設、風險和不確定性的前瞻性聲明。這些包括但不限於我們吸引新會員和留住現有會員的能力。

Our ability to compete effectively, including for customer engagement with different modes of entertainment, maintenance and expansion of device platforms for streaming. Fluctuation in customer usage of our service, fluctuations in quarterly operating results, service disruptions, production risks, general economic conditions, future losses, loss of key personnel, price changes, brand reputation, acquisitions, new initiatives we undertake, security and information systems, legal liability for website content, failure of third parties to provide adequate service, future internet related taxes.

我們有效競爭的能力，包括客戶參與不同娛樂模式、維護和擴展串流媒體設備平台的能力。客戶使用我們服務的波動、季度經營業績的波動、服務中斷、生產風險、總體經濟狀況、未來損失、關鍵人員的流失、價格變化、品牌聲譽、收購、我們採取的新舉措、安全和資訊系統、網站內容的法律責任、第三方未能提供足夠的服務、未來的網路相關稅費。

Our founder's control of us, litigation, consumer trends, the effect of government regulation and programs, the impact of public health threats, including the coronavirus, COVID-19 pandemic and our response to it and other risks and uncertainties detailed from time to time in our filings with the Securities and Exchange Commission, including our reports on Form 10K and Form 10Q.

我們的創辦人對我們的控制、訴訟、消費者趨勢、政府監管和計劃的影響、公共衛生威脅的影響，包括冠狀病毒、COVID-19 大流行以及我們對此的反應以及不時詳述的其他風險和不確定性我們向美國證券交易委員會提交的文件，包括我們的 10K 表格和 10Q 表格報告。

Gaia assumes no obligation to publicly update or revise any forward-looking statements. With that, I would now like to turn the call over to Gaia CEO, Jirka Rysavy. Please go ahead, sir.

蓋亞不承擔公開更新或修改任何前瞻性陳述的義務。現在，我想將電話轉給 Gaia 執行長 Jirka Rysavy。請繼續，先生。

Thank you, and good afternoon, everyone. Well, I'm glad again, we can continue reporting positive results. Revenue for third quarter increased to $20.2 million sequentially, up from $19.8 million and from last year of $19.9 million.

謝謝大家，大家下午好。好吧，我再次很高興，我們可以繼續報告積極的結果。第三季營收季增至 2,020 萬美元，高於去年的 1,980 萬美元和去年的 1,990 萬美元。

During the quarter, our member growth doubled sequentially to over 16,000 ending with 790,500 members, which is above 776,000 we reported last year. So we more than recovered to [2022] losses, which were caused by the industry-wide post-COVID subscriber contraction.

本季度，我們的會員人數連續翻倍成長，達到 16,000 多名，最終達到 790,500 名會員，高於我們去年報告的 776,000 名。因此，我們完全恢復了 [2022] 年的損失，這是由於新冠疫情後全行業訂戶萎縮造成的。

Virtually all the growth in this quarter is coming from our direct members. Our ARPU continuing to grow steady as and we did over the last five years and shall be further supplemented by our recent launch of Gaia marketplace. We have rolled our marketplace in September to less than 5% our members and generated over 100,000 sales in first 20 days. We had a [virtual] any marketing cost.

事實上，本季所有的成長都來自我們的直接會員。我們的 ARPU 繼續穩定成長，就像我們在過去五年中所做的那樣，並將透過我們最近推出的 Gaia 市場進一步補充。 9 月份，我們的市場會員比例已降至不到 5%，並在前 20 天內實現了超過 100,000 筆銷售額。我們有[虛擬]任何行銷成本。

And annualized gross profit per employee improved again during the third quarter to our new all-time high of over 650,000, reflecting our increased efficiencies. Our loss improved to 600,000 or $0.03 per share, down from $2.4 million or $0.11 per share, and EBITDA increased to $3.9 million from [$1.8] million during last -- quarter last year.

第三季度，每位員工的年化毛利再次提高，達到超過 65 萬美元的歷史新高，反映出我們效率的提高。我們的虧損從 240 萬美元或每股 0.11 美元減少到 60 萬美元或每股 0.03 美元，而 EBITDA 從去年最後一季的 180 萬美元增加到 390 萬美元。

We continue to generate positive free cash flow with the cash on September 30, growing to $11.2 million from $10.9 million at the end of the last quarter. Now James will cover the marketplace and some other new marketing initiative, and then Ned will speak more about financial results. James.

截至 9 月 30 日，我們繼續產生正的自由現金流，從上季末的 1,090 萬美元增至 1,120 萬美元。現在詹姆斯將介紹市場和其他一些新的行銷計劃，然後內德將更多地談論財務業績。詹姆士。

Thank you, Jirka . So we rolled out a beta version of marketplace in September, initially targeting less than 5% of our members and the results have been truly exciting. Within the first 20 days, we were able to generate over $100,000 in sales. And all of this was achieved with zero paid marketing costs. This achievement is testament to the strong connection we have with our members and the appeal of the marketplace's offerings. It also demonstrates the significant potential for growth that lies ahead of us as we expand our offering into 2024.

謝謝你，吉爾卡。因此，我們在 9 月推出了市場的測試版，最初針對不到 5% 的會員，結果確實令人興奮。在最初的 20 天內，我們的銷售額就超過了 10 萬美元。而這一切都是透過零付費行銷成本實現的。這項成就證明了我們與會員的緊密聯繫以及市場產品的吸引力。它還表明，隨著我們將產品擴展至 2024 年，我們面臨著巨大的成長潛力。

The launch of Gaia marketplace is a significant step forward for us. It's not just the new feature represents strategic expansion of our platform, and it allows us to diversify our offerings and support the conscious lifecycle of our members in a more meaningful way, whilst also improving our proof, which is a key metric for us to focus on as we move forward.

Gaia 市場的推出對我們來說是向前邁出的重要一步。新功能不僅代表了我們平台的策略擴張，而且使我們能夠使我們的產品多樣化，以更有意義的方式支持我們會員的有意識生命週期，同時還改進了我們的證明，這是我們關注的一個關鍵指標我們繼續前進。

Marketplace will include a carefully curated selection of experiences, retreats courses and products that resonate with our audience, which will be offered to members at a discount to the market to help us create a thriving ecosystem that benefits both our members and Gaia. A key passion and focus for me is improving our marketing efficiency. And I believe there to be a lot of untapped opportunities for us, especially with our direct-to-consumer marketing campaigns and digital events. Marketplace will play a critical role in this as it will contribute to free cash flow, which we will use to accelerate our growth initiatives as we focus on scaling to 900,000 subscribers as quickly as possible whilst maintaining positive cash flow. Now Ned will talk more on our financial results.

Marketplace 將包括精心挑選的體驗、靜修課程和與我們的受眾產生共鳴的產品，這些產品將以市場折扣價提供給會員，以幫助我們創建一個繁榮的生態系統，使我們的會員和Gaia 都受益。我的主要熱情和關注點是提高我們的行銷效率。我相信我們還有很多未開發的機會，特別是我們的直接面向消費者的行銷活動和數位活動。 Marketplace 將在這方面發揮關鍵作用，因為它將有助於自由現金流，我們將利用自由現金流來加速我們的成長計劃，因為我們專注於盡快擴大到 90 萬名訂閱者，同時保持正現金流。現在內德將更多地談論我們的財務表現。

Great. Thank you, James. Revenues for the third quarter were $20.2 million, a sequential increase for the third consecutive quarter, continuing the return to growth in our member base during the first three quarters of 2023.

偉大的。謝謝你，詹姆斯。第三季營收為 2,020 萬美元，連續第三個季度環比成長，繼續我們的會員基礎在 2023 年前三個季度恢復成長。

Compared to the year ago quarter, revenues grew by 2% as the Company recovered from the post-COVID subscriber contraction experienced industry-wide during 2022. In the quarter, we continue to invest in and release new content, particularly to support our language expansion efforts.

與去年同期相比，隨著公司從 2022 年全行業經歷的新冠疫情后用戶收縮中恢復過來，收入增長了 2%。本季度，我們繼續投資和發布新內容，特別是支持我們的語言擴展努力。

As a result of these strategic growth investments, gross margins were 85.2% during the third quarter of 2023, and we expect them to remain at this level for the near term as we expand our language offerings and tactically support the growth of the business.

由於這些策略性成長投資，2023 年第三季的毛利率為 85.2%，隨著我們擴大語言產品並從戰術上支持業務成長，我們預計毛利率在短期內將保持在這一水平。

Total member acquisition costs during the quarter were $8.4 million or 41% of revenues aligned to our second quarter costs. In the third quarter, we experienced growth in our direct member base, which is continuation from the first and second quarters.

本季會員獲取成本總額為 840 萬美元，佔第二季成本收入的 41%。第三季度，我們的直接會員基礎持續成長，這是第一季和第二季的延續。

Selling and operating expenses, excluding marketing and member acquisitions, costs in the third quarter were $7.9 million or 39% of revenues, which was a $0.7 million or 8% improvement from the prior year period. This decreases due to cost reductions completed earlier in the year and employee retention tax credits filed during the quarter.

第三季的銷售和營運費用（不包括行銷和會員收購）為 790 萬美元，佔營收的 39%，比去年同期增加了 70 萬美元，即 8%。這一下降是由於今年早些時候完成的成本削減以及本季提交的員工保留稅收抵免。

Corporate and G&A expenses in the third quarter were $1.4 million, down 29% from the prior year period due to the cost improvements in the first half and the aforementioned payroll tax credit.

由於上半年的成本改善和上述工資稅抵免，第三季的公司和一般行政費用為 140 萬美元，比去年同期下降 29%。

During the third quarter of 2023, we recorded a loss of $0.6 million or negative $0.03 per share compared to a loss of $2.4 million in the year ago period. The improvement was primarily driven by expense reductions and increase in revenues between periods.

2023 年第三季度，我們虧損 60 萬美元，即每股虧損 0.03 美元，去年同期虧損 240 萬美元。這項改善主要是由於期間費用減少和收入增加所致。

EBITDA was $3.9 million or 19% of revenues in the quarter and we generated free cash. Our deferred revenues for the third quarter were $15.3 million, an increase of $0.8 million from the year ago period.

EBITDA 為 390 萬美元，佔本季營收的 19%，我們產生了自由現金。第三季的遞延收入為 1,530 萬美元，比去年同期增加了 80 萬美元。

We expect to continue to benefit from the inherent negative working capital cycle in our business model as we continue to grow our member base and revenues. In addition, we expect to be in a position to continue generating cash flows from operations in excess of the cash flows, we reinvest back into our content library and product enhancements going forward.

隨著我們繼續擴大會員基礎和收入，我們預計將繼續受益於我們業務模式中固有的負營運資金週期。此外，我們預計能夠繼續從營運中產生超過現金流的現金流，我們將重新投資於我們的內容庫和產品增強。

Due to our in-house production capabilities and absence of contractual commitments tied to our content production, we have significant discretion in the amount and timing of our investments. This flexibility allows us to adjust our investment levels as needed to withstand a downturn in the macroeconomic environment if necessary.

由於我們的內部製作能力以及缺乏與內容製作相關的合約承諾，我們在投資的金額和時間安排上擁有很大的自由裁量權。這種靈活性使我們能夠根據需要調整投資水平，以在必要時抵禦宏觀經濟環境的低迷。

Through the Company's focus on accelerating growth and a return to positive operating margins, we have made tremendous progress over the past few quarters on numerous key areas of improvement for the business. With continued disciplined execution and the launch of the Gaia marketplace, we are well positioned to continue growing revenues and to remain cash flow positive going forward.

透過公司專注於加速成長和恢復正營業利潤，我們在過去幾季在業務改善的許多關鍵領域取得了巨大進展。透過持續嚴格的執行和 Gaia 市場的推出，我們處於有利位置，可以繼續增加收入並保持積極的現金流。

With that, I will hand it back to you, Jirka, for some closing remarks.

接下來，我將把它交還給你，Jirka，讓你發表一些結束語。

Yeah, we expect our member growth to further increase in 2024 with continuing growth of ARPU. For 2024, we are targeting about 15% growth in revenues. It's about 10% growth in our members with a strong growth of ARPU which should be helped by our planned price increase, for the new members into second part of next year.

是的，我們預計隨著 ARPU 的持續增長，我們的會員數量將在 2024 年進一步增加。 2024 年，我們的目標是營收成長 15% 左右。我們的會員數量增加了約 10%，ARPU 強勁成長，這應該得益於我們計劃在明年下半年為新會員提價。

We also expect to continue to increase our gross profit per employee benchmark. And I personally believe that Gaia is in the best place since we started our streaming business. Our goal is now simple to grow fast to 900,000 members while continuing to generate a positive free cash flow.

我們也預計將持續提高員工人均毛利基準。我個人認為，自從我們開始串流媒體業務以來，蓋亞處於最好的位置。我們現在的目標很簡單，快速成長到 90 萬名會員，同時繼續產生正的自由現金流。

I encourage you to visit ir.gaia.com and download the investor presentation to see our pro forma, how come we can look at 900,000 members of annual average. That means 900,000 in the middle of the year. We would update this probably within an hour.

我鼓勵您訪問 ir.gaia.com 並下載投資者簡報以查看我們的預估，為什麼我們可以查看每年平均 900,000 名會員。這意味著年中將有 90 萬人。我們可能會在一小時內更新。

Over the next few months, I also plan to promote subject to our Board approval, our CEO and CMO, James here to CEO position. And I know James for seven years. We merged SVOD business, FMTV into Gaia in 2019. And FMTV had the same mission as Gaia and grew to over 600,000 subscribers without any outside funding solely dependent on James's marketing skills.

在接下來的幾個月裡，我還計劃在董事會批准的情況下將我們的執行長兼首席行銷長詹姆斯晉升為執行長。我認識詹姆斯七年了。 2019 年，我們將 SVOD 業務、FMTV 合併到 Gaia 中。FMTV 與 Gaia 有著相同的使命，僅依靠 James 的營銷技巧，在沒有任何外部資金的情況下發展到超過 60 萬訂戶。

James would continue to report to me in my role as Executive Chairman. I would focus on creation of Gaia community, which we talked before, and that's the main part being part of our mission statement and should be the final differentiation from all our other video streaming businesses. I hope to launch Gaia community after we reach our 900,000 annual member average milestone.

詹姆斯將繼續以執行主席的身份向我報告。我將重點關注我們之前討論過的蓋亞社區的創建，這是我們使命宣言的主要部分，並且應該是與我們所有其他視訊串流業務的最終區別。我希望在我們達到年度平均會員數 90 萬的里程碑後推出 Gaia 社群。

So this concludes our remarks. So I would like to open to questions. Operator?

我們的發言到此結束。所以我想提出問題。操作員？

Thank you. We will now be conducting a question-and-answer session. (Operator Instructions)

謝謝。我們現在將進行問答環節。 （操作員說明）

One moment, please while we poll for questions.

請稍等一下，我們進行投票提問。

Mark Argento, Lake Street Advisors.

馬克‧阿基托 (Mark Argento)，湖街顧問公司。

Hey, good afternoon, guys. Just a quick question. Looks like your actual sub adds were a lot stronger than what we had been modelling. Could you just touch on kind of the environment out there from subscriber acquisition perspective, the cost to acquire a sub and what channels you're seeing that success?

嘿，下午好，夥計們。只是一個簡單的問題。看來您的實際子添加比我們建模的要強得多。您能否從訂閱者獲取的角度談一下那裡的環境、獲取訂閱者的成本以及您在哪些管道上看到了成功？

Well, it�s the environment -- I think it's been obviously better than it was last two years quite a bit. It's not fundamentally different than second quarter. I think the doubling our grosses pure internal I think James helped a lot. We didn't have really CMO. So he's kind of functioning much more than a CMO and COO right now.

嗯，是環境——我認為現在明顯比過去兩年好多了。這與第二季度並沒有本質上的不同。我認為我們的收入翻倍純粹是內部原因，我認為詹姆斯幫了很多忙。我們沒有真正的 CMO。所以他現在的職責遠遠不只是首席行銷長和營運長。

And the cost of acquisition, it's kind of the similar as the second quarter. May be a little cheaper on domestically and we saw little bumps in places like Latin America and the churn kind of bump a little bit because of all the internal, mostly internal things which create cards and stuff, but pretty much for 90% of our business was more positive. And I expect, as I said, that the member additions to increase again next year from where we are right now, we still have definitely some room, and I think there will be -- the main part of this James you want to --

收購成本與第二季類似。國內可能會便宜一點，我們在拉丁美洲等地方看到了一點點的顛簸，而且由於所有內部的東西，大部分是創建卡片和東西的內部東西，我們看到了一點點的顛簸，但對於我們90%的業務來說幾乎是這樣比較積極。正如我所說，我預計明年的成員數量將在目前的基礎上再次增加，我們肯定還有一些空間，而且我認為將會有——你想要的詹姆斯的主要部分——

Sure, Mark, I would also add that we're focusing a lot -- my focus is especially with the growth and marketing team is on conversion rate optimization. So card conversion, guest and member conversion first, 30 days, 60 days, 90 days. This is a really key focus of ours now.

當然，馬克，我還要補充一點，我們非常關注——我的重點尤其是成長和行銷團隊的轉換率優化。所以卡片轉換，先是客人和會員轉換，30天，60天，90天。這是我們現在真正關注的重點。

So with the improvements in efficiency that we're seeing in CPA costs, which have come down marginally throughout the year, especially if we compare to the start of the year until till now, there is improvements in CPA costs, whether that's because of the macro environment less and less competition or otherwise, but it's still coming down for us.

因此，隨著我們看到 CPA 成本效率的提高，全年略有下降，尤其是與年初至今相比，CPA 成本有所改善，無論是因為宏觀環境競爭越來越少或者其他，但對我們來說仍然是下降的。

And we're also working on our side, improving that with a conversion rate optimization. So I really seek to see more improvement in that in 2024. And marketing efficiency is a very core focus of mine for the '24 year as well.

我們也在努力透過轉換率優化來改善這一點。所以我真的希望在 2024 年看到更多的改進。行銷效率也是我 24 年的一個非常核心的焦點。

It's helpful, thank you for that. And just, pivoting to -- I think you said you're going to take pricing in Q2 of next year. What do you think, you know, in terms of the pricing, how big of an impact could that have in terms of the ARPU, from the latter part of that year?

這很有幫助，謝謝你。只是，我想你說過你將在明年第二季進行定價。您認為，就定價而言，從當年下半年開始，這會對 ARPU 產生多大影響？

Well, we're not going to do to Q2, it's going to be probably middle of Q3 somewhere closer to September. Rethinking about $2.40 for the new members. And we probably will focus on monthlies to move more people to annual.

好吧，我們不會在第二季這樣做，可能會在第三季中期，接近 9 月的時候。重新考慮新會員的 2.40 美元。我們可能會專注於月刊，以吸引更多人轉向年刊。

So we probably won't raise annual. Annual takes right now about 25%. And but that's kind of the strategy. Not also we kind of hope that will help lower their attention because people cannot come and leave and come on a same price. But -- and also, that's one of kind of when I kind of said, we'll grow revenue, 15 members stand is because we expect that increase price for your members will probably take a hidden conversion. So we wouldn't grow revenue as fast. I mean, the members as fast as revenue or. So, but our goal is obviously the revenues into growing the revenues.

所以我們可能不會每年籌集資金。目前每年約佔25%。但這就是策略。我們也不希望這有助於降低他們的注意力，因為人們不能以相同的價格來來去去。但是，而且，這就是我所說的一種情況，我們將增加收入，15 個會員站是因為我們預計會員的價格上漲可能會帶來隱藏的轉換。所以我們的收入成長不會那麼快。我的意思是，會員的收入和收入一樣快。所以，但我們的目標顯然是把收入轉化為收入成長。

I think second to what you were saying, we would be grand-fathering or a grand-mothering either all how we say it, our existing members. So there is a retention play there in that we can promise our existing members that will stay on their existing monthly price point. And then by not touching our annual price point, it will create a bigger price difference between the monthly and annual membership, which we hope to skew more conversions upfront or ongoing up to annual because we see the churn rates on customer cohorts that stay longer than one year in particular, longer than two and three years, much more beneficial for us as a brand. So we want to skew to commit more membership term as much as possible.

我認為，除了你所說的之外，我們現有的成員無論怎麼說都是祖父或祖母。因此，我們可以向現有會員承諾，他們將保持現有的每月價格點，從而保留客戶。然後，透過不觸及我們的年度價格點，它將在月度會員和年度會員之間產生更大的價格差異，我們希望提前或持續到年度會員會產生更多的轉化，因為我們看到停留時間超過一年的客戶群的流失率特別是一年，比兩年、三年更長，對我們作為一個品牌更有利。因此，我們希望盡可能承諾更多的會員任期。

And Mark, this is Ned. I think the last part of your question was around the ARPU. And so of course, all of this, along with some of the other offerings that James will be spearheading around our other offers plus the marketplace. The combination of all of that plus the increase we do anticipate would take our ARPUs up, obviously, which we can outline in future meetings with you. But I think that was the last part of your question.

馬克，這是內德。我認為你問題的最後一部分是圍繞著 ARPU 的。當然，所有這一切，以及詹姆斯將圍繞我們的其他產品和市場帶頭推出的一些其他產品。所有這些加上我們預期的成長，顯然會提高我們的 ARPU，我們可以在未來與您的會議中概述這一點。但我認為這是你問題的最後一部分。

Yes, Ned, that's super helpful. And then in terms of the marketplace business, obviously pretty good uptake with no marketing dollars behind it. Make you more encouraged in terms of the opportunity and does that change your timing or aggressiveness at all? in your guys' perspective?

是的，內德，這非常有幫助。然後就市場業務而言，顯然，在沒有行銷資金支持的情況下，採用率相當不錯。讓你在機會方面更加受到鼓舞，這是否會改變你的時機或進取心？在你們看來？

From our side, we plan to be as aggressive as possible on executing our marketplace. The main focus for us internally at the minute is curating and building out our SKU offering around the three core verticals of retreats or experiences, 10 courses, then physical product. And once we have more of that in place, we'll continue to roll out wider to our membership base.

從我們的角度來看，我們計劃盡可能積極地執行我們的市場。目前我們內部的主要關注點是圍繞靜修或體驗、10 門課程和實體產品這三個核心垂直領域來策劃和建立我們的 SKU 產品。一旦我們有了更多的這些，我們將繼續向我們的會員群推廣。

And as we get testing data of what offers performed best. That will inform our marketing, and we'll continue to keep expanding that. And Jirka, has a strong background in e-commerce and retail product with the previous version of Gaiam and can see a huge potential for this given the community that we have at the moment.

當我們獲得表現最佳的產品的測試數據時。這將為我們的行銷提供訊息，我們將繼續擴大這一範圍。 Jirka 在先前版本的 Gaiam 的電子商務和零售產品方面擁有強大的背景，鑑於我們目前擁有的社區，可以看到這方面的巨大潛力。

And we want to be really selective in the products because we kind of -- it's basically mostly only target to our members. So which what I would say 90% of revenue will be from our existing members. It's you can buy it if you're not a member obviously, but we won't promote it outside at least not for now.

我們希望對產品進行真正的選擇性，因為我們基本上只針對我們的會員。所以我想說 90% 的收入將來自我們現有的會員。如果你不是會員顯然可以購買它，但我們不會在外面推廣它，至少現在不會。

And members also get a 10% discount. So if you come and you know, by $7,000 trip, it's better to become a member, and get a 10% discount. So it's kind of around that. But we kind of we're going to -- I'm going to look at it, it�s kind of beginning of the Gaia community. So we want to attract people, especially like our kind of items right now what we really push through launch was we have two seasons of show what's our most TV show called Ancient Civilizations, which we really talk about, period regular time.

而且會員還可以享有10%的折扣。因此，如果您來了，您知道，旅行價格為 7,000 美元，最好成為會員，並獲得 10% 的折扣。所以事情大概就是這樣。但我們會——我會看看它，這是蓋亞社區的開始。所以我們想吸引人們，特別是像我們現在這樣的產品，我們真正推動推出的是我們有兩季的節目，我們最多的電視節目叫做《古代文明》，我們真正談論的是定期播出的節目。

And so we basically launched at the tour as a producer in Egypt, and sold really quick, on pretty high prices, those prices typically a $10,000 per trip. So, you know, it's very lucrative business overall. And but we want to be very selective. So we don't disappoint our customers with the offering.

因此，我們基本上以埃及製作人的身份參加了巡演，並以相當高的價格出售得非常快，這些價格通常為每次旅行 10,000 美元。所以，你知道，總的來說，這是一項非常有利可圖的業務。但我們希望非常有選擇性。因此，我們的產品不會讓客戶失望。

And I think one final thought there, Mark, from an investment community perspective, to summarize the marketplace offering it's like a conscious version of Costco in that at a discount membership model. But also there's in a way a QVC component because we have content that speaks to the offerings as well. So I'd say that's a quick way to summarize the focus.

我認為最後一個想法是，馬克，從投資界的角度來看，總結市場提供的產品，它就像是 Costco 的有意識版本，採用折扣會員模式。但某種程度上也有 QVC 組件，因為我們也有與產品相關的內容。所以我想說這是總結重點的快速方法。

And also if you model it the way how we can look at it and these trips. So we take 30%, we provide 10% discount. So effectively only to 20% is the revenue and the operating income, the rest we treat as outside vendors. So it's going to be relatively high margin.

而且如果你以我們如何看待它和這些旅行的方式來建模它。所以我們拿30%，我們提供10%的折扣。因此，實際上收入和營業收入僅佔 20%，其餘部分則視為外部供應商。所以利潤率相對較高。

Great, very helpful. Good luck for you guys. Thanks.

太棒了，非常有幫助。祝你們好運。謝謝。

Thank you.

謝謝。

Thank you.

謝謝。

(Operator Instructions) Thierry Wuilloud, Water Tower Research.

（操作員說明）Thierry Wuilloud，水塔研究中心。

Yes, thank you. Good afternoon, and James congratulation on the new position. James, can you explain a little bit about revenue and for the marketplace? And I was going to ask you, but I think I kind of got it. So that the $100,000 of revenue that you say, that's your share of commission on the gross sale number Gaia marketplace -- is it how that works?

是的，謝謝。下午好，詹姆斯祝賀你就任新職位。詹姆斯，您能解釋一下有關收入和市場的情況嗎？我本來想問你的，但我想我已經明白了。那麼，您所說的 100,000 美元收入，就是您在 Gaia 市場銷售數字中的佣金份額 - 是這樣運作的嗎？

No, it's the original one what we both basically one to was the sale was 100,000 from then we would report revenue about 20.

不，這是最初的版本，我們基本上都認為銷量是 100,000 件，從那時起我們將報告大約 20 件的收入。

Okay, I got it. Okay, great. I was -- you haven't talked about third party channels in Hawaii. Can you give us a bit of color there? -- Are you putting some emphasis on a specific one or what's your thought around that? Obviously, the direct member acquisition seems to be doing really well, but any color on third party channels?

好的，我明白了。好的，太好了。我是——你還沒有談到夏威夷的第三方頻道。你能給我們一點顏色嗎？ ——您是否會專注於某個特定的問題，或者您對此有什麼想法？顯然，直接會員獲取似乎做得很好，但第三方管道有什麼亮點嗎？

Thierry, hi. Thank you for your congratulations, pending Board approval, of course. I will speak to third party that reports directly to me. It has been a flatter compared to our direct membership growth. However, I'm seeking to be more aggressive in our expansion with third party keeping it in alignment with our current balance of direct to third party revenue contribution, making sure that it doesn't get too high, that we plan to be growing third party in particular by rolling out new territories in 2024.

蒂埃里，嗨。感謝您的祝賀，當然，仍有待董事會批准。我將與直接向我報告的第三方交談。與我們的直接會員成長相比，這一數字較為平穩。然而，我正在尋求更加積極地與第三方進行擴張，使其與我們當前對第三方的直接收入貢獻的平衡保持一致，確保它不會變得太高，我們計劃增長第三方特別是在2024 年推出新領土。

In particular with our largest third-party distributor, which is our partner, which is Amazon Prime. So we have a Prime video channel within the Amazon infrastructure, and we are in the process of renewing our agreement with them to expand the term for a longer period of time.

特別是我們最大的第三方經銷商，即我們的合作夥伴，即 Amazon Prime。因此，我們在亞馬遜基礎設施內擁有一個 Prime 視訊頻道，並且我們正在與他們續簽協議，以將期限延長更長的時間。

I just met with one of the eminent Amazon executives over the weekend to confirm this and we have already plans for Q2/Q3 -- sorry, Q2, correct for Australia and New Zealand. And I'll be meeting with the Australia New Zealand rep as well. So this is very much in my court and I'm seeking to expand our international expansion with third party.

我剛剛在周末會見了一位著名的亞馬遜高管，以確認這一點，我們已經制定了第二季度/第三季度的計劃——對不起，第二季度，澳大利亞和新西蘭的計劃是正確的。我還將與澳洲紐西蘭代表會面。因此，這對我來說非常重要，我正在尋求與第三方一起擴大我們的國際擴張。

Yeah, with Amazon, we actually triggered initiation, a renegotiation because our price increases, we plan to do. So, you have to kind of give them notice and signing new agreements with the higher price. So there was cost -- this negotiation was actually initiated by us. And also when you asked the question about a 100,000 sale. So it was the first, 20 days, we get 100,000. The tour is actually sold. So it creates about 100,000 in revenues from the first trip from the single tour, but it took like a month and half to sell it.

是的，與亞馬遜，我們實際上觸發了啟動，重新談判，因為我們計劃這樣做，因為我們的價格上漲。因此，您必須通知他們並以更高的價格簽署新協議。所以這是有成本的——這個談判實際上是我們發起的。還有當你問有關 100,000 件銷售的問題時。所以這是第一個，20 天，我們得到了 100,000。巡演實際上已售出。所以單場巡演的第一趟就創造了約10萬的收入，但花了大約一個半月的時間才賣掉。

Okay, great. We've talked about ARPU, and we've also talked in previous conversation about the focus on international growth. Is there big difference in ARPU from your international members versus to U.S. members?

好的，太好了。我們已經討論過 ARPU，並且在先前的談話中也討論過對國際成長的關注。你們的國際會員與美國會員的 ARPU 有很大差異嗎？

No, there's no, -- I mean, short of some Latin America, which we scaling actually down, which we kind of play with lower prices, but didn't really work for us. So it's basically the prices we would charge pretty much in year over similar as we would charge here. So dark we're seeing pretty much for right now.

不，沒有——我的意思是，缺少一些拉丁美洲，我們實際上縮小了規模，我們以較低的價格來玩，但對我們來說並沒有真正發揮作用。所以這基本上是我們一年中收取的價格，與我們在這裡收取的價格差不多。太黑了，我們現在能看到的都差不多了。

And Thierry, I would add, there are there are three drivers for increase in ARPU next year. One Jirka already mentioned, which is about the planned price increase from Circum middle of the year. In addition to that, what we've spoken about is marketplace with the revenue attribution. And then third would be an increased focus on our premium Gaia events plus tier at 299 a year. That's also something that I have my sights set on for expanding in 2024. So each of those three levers will be improving our throughput throughout the next year.

我想補充一點，蒂埃里明年的 ARPU 成長有三個驅動因素。 Jirka 已經提到過，這是關於 Circum 年中計劃提價的事情。除此之外，我們談到的是具有收入歸屬的市場。第三，我們將更加關注我們的優質 Gaia 活動以及每年 299 級的活動。這也是我計劃在 2024 年擴展的目標。因此，這三個槓桿中的每一個都將在明年提高我們的吞吐量。

Yeah, the increased ARPU, it was always as a part of our mission. And now we actually want to accelerate that because now we kind of get to the place where we can generate positive cash flow, continuously. So the ARPU become much bigger full focus right now. So the revenue will be definitely our focus more than the numbers of members. So going forward, it's going to be our focus. That's why the ARPU and how this initiative like increasing the price Gaia Sphere -- sorry, Gaia Sphere -- premium pricing is sevens plus or the marketplace. So they all effectively when we say that we going to grow members 10% of revenue, 15%, you'll see that we are increasing the ARPU dramatically and we will do want to keep doing it.

是的，提高 ARPU，一直是我們使命的一部分。現在我們實際上想要加速這一進程，因為現在我們已經達到了可以持續產生正現金流的程度。因此，ARPU 現在變得更加全面。所以收入絕對是我們關注的焦點，而不是會員數。因此，展望未來，這將是我們的重點。這就是為什麼 ARPU 以及該舉措如何提高 Gaia Sphere 的價格——對不起，Gaia Sphere——溢價是七倍以上或市場。因此，當我們說我們將增加會員收入的 10%、15% 時，您會看到我們正在大幅提高 ARPU，並且我們確實希望繼續這樣做。

Great. Maybe a last question. In your Jirka, you mentioned that you will be focused on Gaia community. Can you tell me what does it mean is it is it focused on the marketplace? Is it focused on live events? Or what did you mean when you said you'll focus on Gaia community?

偉大的。也許是最後一個問題。在您的 Jirka 中，您提到您將專注於 Gaia 社群。你能告訴我它專注於市場是什麼意思嗎？它專注於現場活動嗎？或者當您說您將專注於蓋亞社區時，您的意思是什麼？

If you go to the bottom of our gaia.com, you'll see the what the mission is. So that's pretty much the community what I'm talking about. We kind of look at launching it -- we already built something about a year ago. But that time we decided to where it was designed. The communities right now too much split between that by the different events in the world. So it's not a time to launch it. So we have structured a little bit.

如果您訪問我們的 gaia.com 底部，您會看到使命是什麼。這就是我所說的社區。我們有點考慮推出它——大約一年前我們已經建造了一些東西。但那一次我們決定了它的設計地點。現在，由於世界上發生的不同事件，社區之間存在太多分歧。所以現在還不是啟動它的時候。所以我們已經結構化了一點。

So it's basically -- we have now, two-thirds of our people are with us more than a year and one-third over three years, and that's increasing, that the three-year number, obviously, increasing every month as a percentage. And so we know a lot of people watching what are they interested, in one of the things what you hear is they would like to find people like them watching Gaia in their community. So yes, it's going to be focused, we going to use all our venues, what you mentioned as a part of that.

所以基本上，我們現在三分之二的員工在我們工作的時間超過一年，三分之一的員工在我們工作的時間超過三年，而且這個數字正在增加，顯然，三年的人數每個月都在以百分比的形式增加。所以我們知道很多人都在觀看他們感興趣的內容，你聽到的一件事是他們希望找到像他們這樣的人在他們的社區中觀看蓋亞。所以，是的，這將是重點，我們將使用我們所有的場地，你提到的其中一部分。

Okay. That sounds very interesting. Great. That's it from me (multiple speakers) --

好的。聽起來很有趣。偉大的。這就是我的發言（多位發言者）－

I think that will be defined out for differentiation for us. If you're looking at other [slots] that become in three years we have something what nobody else in this, world has of growing and it's a niche business and we want to keep it that way, and that's community will be based on that.

我認為這將是為了我們的差異化而定義的。如果你看看三年後的其他[老虎機]，我們擁有這個世界上其他人都沒有的增長的東西，這是一個利基業務，我們希望保持這種狀態，而社區將以此為基礎。

And Thierry, if I had to say one part of that that you're alluding to amongst many things would be some form of a decentralized town hall in a way where members can get together and forms and like you mentioned, organized Watch Parties and meetups.

蒂埃里，如果我不得不說你在許多事情中提到的一部分，那就是某種形式的去中心化市政廳，成員可以聚在一起並形成形式，就像你提到的那樣，組織觀看派對和聚會。

That sounds very interesting. Great, thank you, guys.

聽起來很有趣。太好了，謝謝你們，夥計們。

Thank you.

謝謝。

We have reached the end of our question-and-answer session. I would now like to turn the call back over you, Mr. Rysavy for closing comments.

我們的問答環節已經結束。 Rysavy 先生，我現在想將電話轉回給您，請您發表結束意見。

Well, thank you, everyone, for joining, and we look forward to speaking with you when we report fourth-quarter results in March. Thank you very much.

好的，謝謝大家的加入，我們期待在三月報告第四季業績時與大家交談。非常感謝。

This concludes today's conference. You may disconnect your lines at this time. Thank you for your participation.

今天的會議到此結束。此時您可以斷開線路。感謝您的參與。