Gaia Inc (GAIA) 2024 Q2 法說會逐字稿

Good afternoon, and welcome to Gaia's second quarter 2024 earnings conference cal. (Operator Instructions) Joining us today from Gaia are Jirka Rysavy, Executive Chairman; James Colquhoun, CEO; and Ned Preston, CFO. (Operator Instructions)

下午好，歡迎參加 Gaia 2024 年第二季財報會議。（操作員指示）今天從 Gaia 加入我們的是執行主席 Jirka Rysavy； James Colquhoun，執行長；和財務長內德·普雷斯頓。（操作員說明）

Before we begin, this management team would like to remind everyone that management's prepared remarks contain forward-looking statements, and management may make additional forward-looking statements in response to your questions, including but not limited to, statements of expectations, future events or future financial performance.

在我們開始之前，管理團隊想提醒大家，管理層準備的言論包含前瞻性陳述，管理層可能會針對您的問題做出額外的前瞻性陳述，包括但不限於預期、未來事件或未來的財務表現。

These statements do not guarantee future performance, and therefore, undue reliance should not be placed upon them. Although we believe these expectations are reasonable, Gaia management undertakes no obligation to revise any statements to reflect changes that occur after this call. Actual events or results could differ materially. These statements are based on current expectations of the company's management and involve inherent risks and uncertainties, including those identified in the Risk Factors section of Gaia's latest annual report on Form 10-K filed with the SEC.

這些陳述並不保證未來的表現，因此，不應過度依賴它們。儘管我們認為這些期望是合理的，但蓋亞管理層沒有義務修改任何聲明以反映本次電話會議後的變化。實際事件或結果可能有重大差異。這些聲明是基於公司管理層目前的預期，涉及固有風險和不確定性，包括 Gaia 向 SEC 提交的 10-K 表格最新年度報告的風險因素部分中確定的風險和不確定性。

All non-GAAP financial measures referenced in today's call are reconciled in the company's earnings press release to the most directly comparable GAAP measure. This call also contains time-sensitive information that is accurate only as of the time and date of this broadcast, August 5, 2024.

今天電話會議中引用的所有非公認會計原則財務指標均在公司收益新聞稿中與最直接可比較的公認會計原則指標進行了調整。此通話還包含時間敏感訊息，僅截至本次廣播的時間和日期（2024 年 8 月 5 日）準確。

Finally, I would like to remind everyone that this conference call is being webcast, and a recording will be made available for a replay on Gaia's Investor Relations website at ir.gaia.com.

最後，我想提醒大家，本次電話會議正在網路直播，錄音將在蓋亞投資者關係網站 ir.gaia.com 上重播。

I will now turn the call over to Gaia Executive Chairman, Jirka Rysavy. Please proceed, Jirka.

我現在會把電話轉給蓋亞執行主席 Jirka Rysavy。請繼續，吉爾卡。

Good afternoon, everyone. So for the quarter, we continue to build in our increasing momentum. During the second quarter, which is actually our seasonally slowest, we grew revenue at the same rate as we did in first and by 11% to $22.1 million. We expect revenue growth to be similar during the third quarter and then to increase to about 15% in the fourth quarter.

大家下午好。因此，在本季度，我們繼續增強成長勢頭。第二季度實際上是我們季節性最慢的季度，我們的營收成長速度與第一季相同，成長了 11%，達到 2,210 萬美元。我們預計第三季的營收成長將相似，然後第四季將增至 15% 左右。

The member count during the quarter grew by 10% to 850,000 members, up from 774,000 in the year ago quarter. Including some of the nonrecurring expenses we have in the quarter, our loss was similar as the last year in the $0.09 per share.

本季會員數成長 10%，達到 85 萬名會員，高於去年同期的 77.4 萬名會員。包括本季的一些非經常性費用在內，我們的虧損與去年類似，均為每股 0.09 美元。

Free cash flow was $700,000 for the quarter and $1.6 million for the last six months, which is $2 million improvement on the top of $8.4 million improvement we delivered during last year.

本季的自由現金流為 70 萬美元，過去六個月的自由現金流為 160 萬美元，比去年我們實現的 840 萬美元的改善增加了 200 萬美元。

In 2016, Gaia invested $10 million, and we recently raised $12 million from outside investor for our subsidiary, Igniton, with Gaia still retaining 71% of equity.

2016年，Gaia投資了1000萬美元，最近我們為我們的子公司Igniton從外部投資者籌集了1200萬美元，Gaia仍保留71%的股權。

Igniton used $10 million of cash to raise -- cash raise to acquire exclusive worldwide license for Igniton health technology. This technology uses concentrated quasi-particles transmitted by the sun to improve cognition, memory and longevity. Technology can be delivered by various means from an embedded food supplements to control a release from coated microchips like, for example, from Gaia connected TV device.

Igniton 使用 1000 萬美元現金籌集資金，以獲得 Igniton 健康技術的全球獨家許可。該技術利用太陽發射的集中準粒子來改善認知、記憶和壽命。技術可以透過嵌入式食品補充劑的各種方式提供，以控制塗層微晶片的釋放，例如蓋亞連接的電視設備。

And James will now speak more about the business advances. Go ahead.

詹姆斯現在將更多地談論業務進展。前進。

Hello, everyone, and thank you, Jirka. Our Q2 results reflect our ongoing commitment to delivering transformative content and growing our community. During the second quarter, traditionally our slowest, we achieved an 11% increase in revenue and a 10% growth in membership year-over-year, whilst also marking our fifth consecutive quarter of positive free cash flow.

大家好，謝謝你，Jirka。我們第二季的業績反映了我們對提供變革性內容和發展社群的持續承諾。在傳統上最慢的第二季度，我們的營收年增了 11%，會員數量年增了 10%，同時也標誌著我們連續第五個季度實現正自由現金流。

We have also implemented a price increase for new members starting in July, which we expect to positively impact our revenue by the end of the year. The timing of this increase was moved from Q2 to Q3 to strategically align with our third-party partners, ensuring minimal disruption to our members.

我們也從 7 月開始對新會員實施漲價，我們預計這將在年底前對我們的收入產生正面影響。這次增加的時間從第二季度移至第三季度，以便與我們的第三方合作夥伴進行策略協調，確保對我們會員的干擾降至最低。

Traditionally, we have grandfathered existing members on old pricing. However, we are currently testing a price increase for all new members in Great British pounds. Should this test be successful, we would roll out price increases for all members from Q4 onwards, which will be the first time we have done this in the history of the company.

傳統上，我們按照舊定價為現有會員提供祖父待遇。然而，我們目前正在測試所有新會員的英鎊價格上漲。如果這次測試成功，我們將從第四季開始對所有會員實施價格上漲，這將是我們在公司歷史上第一次這樣做。

Additionally, as of today, we are excited to officially announce the public launch of Gaia Marketplace to our entire member base and community. This initiative not only strengthens our community engagement but also introduces an alternative revenue stream to the Gaia business.

此外，截至今天，我們很高興正式宣布向我們的整個會員群和社區公開推出 Gaia Marketplace。這項措施不僅加強了我們的社區參與，也為蓋亞業務引入了替代收入來源。

Gaia Marketplace offers transformative tours and experiences for Gaia members to connect with like-minded community from across the globe; from exploring ancient civilizations in Egypt, delving into transformative healing practices in Costa Rica and awakening one's highest potential on curative retreats with leading teachers from Gaia's platform.

蓋亞市場為蓋亞會員提供變革性的遊覽和體驗，讓他們與來自世界各地志同道合的社區建立聯繫；探索埃及的古代文明，深入研究哥斯達黎加的變革性治療實踐，並與蓋亞平台的頂尖老師一起在治療靜修中喚醒個人的最高潛力。

Members will also have access to powerful courses, training programs, events, workshops and conscious products chosen and backed by research for exceptional quality and impact. Gaia Marketplace underscores the company's continued commitment to creating a global conscious community, and you can find out more about this initiative at marketplace.gaia.com.

會員還將有機會獲得強大的課程、培訓計劃、活動、研討會和有意識的產品，這些產品是由研究選擇和支持的，具有卓越的品質和影響力。Gaia Marketplace 強調了該公司對創建全球意識社區的持續承諾，您可以在marketplace.gaia.com 上了解有關此計劃的更多資訊。

Looking forward through the end of the year, we will continue to execute on increasing the number of members on our new higher pricing, expanding the rollout of our Marketplace initiative, scaling our member growth in our premium tier and overall, making improvements on free cash flow generation and increases in annualized ARPU.

展望今年年底，我們將繼續以新的更高定價增加會員數量，擴大我們的市場計畫的推出，擴大我們的高級會員和整體會員的成長，並改善免費現金流量產生和年化 ARPU 的增加。

Our CFO, Ned Preston, will now provide more detailed financial insights.

我們的財務長內德普雷斯頓現在將提供更詳細的財務見解。

Thank you, James. Turning now to our financial results for the second quarter ended June 30, 2024. Revenues for the second quarter grew $2.2 million or 11% to $22.1 million from $19.8 million in the prior year ago period. This also marked our fourth sequential period of year-over-year top line growth. Member account increased 10% to 850,000 as of June 30, 2024, up from 774,000 members as of June 30, 2023.

謝謝你，詹姆斯。現在就來看看我們截至 2024 年 6 月 30 日的第二季財務表現。第二季營收從去年同期的 1,980 萬美元增至 2,210 萬美元，成長 220 萬美元，成長 11%。這也標誌著我們第四個連續時期的營收年增。截至 2024 年 6 月 30 日，會員帳戶數量從 2023 年 6 月 30 日的 774,000 名會員增加到 850,000 名，增加了 10%。

Gross profit in the second quarter increased to $18.7 million, up from $17 million in the year ago quarter. Including nonrecurring expenses, net loss was negative $2.1 million or negative $0.09 per share, which is the same as the year ago quarter.

第二季毛利增至 1,870 萬美元，高於去年同期的 1,700 萬美元。包括非經常性費用在內，淨虧損為負 210 萬美元，即每股負 0.09 美元，與去年同期相同。

Operating cash flows for the first six months finished at $3.9 million, representing a $2.6 million improvement from the first six months of 2023 and continues the momentum we've been -- we've delivered in the prior four quarters.

前六個月的營運現金流達到 390 萬美元，比 2023 年前六個月增加了 260 萬美元，並延續了我們在前四個季度所取得的勢頭。

Free cash flow for the second quarter was $700,000, up from $200,000 in the year-ago period. The second quarter of 2024 was our fifth consecutive quarter of positive free cash flow. In the last six months, both revenue and member growth were stable at over 10%, with an improvement in free cash flow of $2 million on top of the $8.4 million improvement delivered during 2023. As of June 30, 2024, our cash balance was $5.5 million with an unused $10 million line of credit.

第二季自由現金流為 70 萬美元，高於去年同期的 20 萬美元。2024 年第二季是我們連續第五個季度實現正向自由現金流。在過去六個月中，收入和會員成長穩定在 10% 以上，自由現金流在 2023 年實現 840 萬美元改善的基礎上又增加了 200 萬美元。截至 2024 年 6 月 30 日，我們的現金餘額為 550 萬美元，還有未使用的 1,000 萬美元信用額度。

That completes my summary. I'd like now to turn the call back over to Jirka for his closing comments. Jirka?

我的總結到此結束。我現在想將電話轉回給 Jirka，聽取他的結束語。吉爾卡？

Yeah. So for the summary, we expect increasing annual revenue growth rate, with continuing growth of ARPU and increasing gross profit per employee and continue generated of positive free cash flow.

是的。因此，總而言之，我們預計年收入成長率將持續提高，ARPU 持續成長，員工人均毛利不斷增加，並繼續產生正的自由現金流。

And this concludes our remarks, and I would like to open the call for questions. Operator, please?

我們的發言到此結束，我想開始提問。接線員，請說？

(Operator Instructions) Mark Argento, Lake Street.

（操作員指示）Mark Argento，湖街。

A few different questions here. Maybe James, we'll start off with the price increase. Can you just walk us through kind of what your plan was previously and then the new plan? Sounds like you're shifting out the -- taking price a little bit to align with the subscriber with some your partners.

這裡有幾個不同的問題。也許詹姆斯，我們會從漲價開始。您能否向我們介紹您之前的計劃以及新計劃？聽起來您正在稍微調整價格，以與某些合作夥伴的訂戶保持一致。

Can you just walk us through kind of that process and then the actual price increases? I know you talked about some about the Great Britain, the British pound denominated. But just kind of walk us through that again, that would be helpful.

您能否向我們介紹一下這個過程以及實際的價格上漲？我知道你談到了一些關於英國、英鎊計價的事情。但只要再引導我們一遍，就會有幫助的。

Sure, Mark. So first of all, we increased our pricing in Great British pounds and euros in Q2. And we had intended to increase price for new members, that is. And we had intended to increase price for new members in USD and rest of world currencies in Q2 also. However, that was pushed until the start of Q3 just in terms of lining up price increases with our third-party partners. Some of them, like our biggest partner, Amazon, was not able to increase until Q3.

當然，馬克。首先，我們在第二季提高了英鎊和歐元的定價。也就是說，我們本來打算提高新會員的價格。我們也打算在第二季提高美元和世界其他貨幣對新會員的價格。然而，這項計畫被推遲到第三季初，只是為了與我們的第三方合作夥伴協調價格上漲。其中一些，例如我們最大的合作夥伴亞馬遜，直到第三季才得以成長。

With Great British pounds, we are testing for the first time ever, increasing the price for all existing members. As a company, we have traditionally grandfathered members on existing legacy pricing. But we're currently testing an increase for all members in Great British pounds.

我們首次使用英鎊進行測試，提高了所有現有會員的價格。作為一家公司，我們傳統上按照現有的舊定價為會員提供優惠。但我們目前正在測試所有會員的英鎊金額增加。

We're anticipating that this increase will be successful and that we make a margin on the delta from the increase to -- in relation to any losses. If that is the case, then we would anticipate considering increasing for all members in the Q4 period. So hope for more information on that as the year goes on.

我們預計這一增長將會成功，並且我們將在與任何損失相關的增量上獲得保證金。如果是這樣的話，那麼我們預計會考慮在第四季度增加所有成員的數量。因此，希望隨著時間的推移能獲得更多相關資訊。

And do you anticipate a similar cadence in the US or just focus right now in terms of the British pound?

您預計美國也會出現類似的節奏，還是現在只關注英鎊？

So after we test the Great British pound impact on member losses, then we'll anticipate rolling out to USD price increases and other rest of world currencies as well in remaining countries.

因此，在我們測試英鎊對會員損失的影響後，我們預計在其餘國家推出美元價格上漲和世界其他貨幣的上漲。

It was -- this is a kind of targeting about $2 in the US. We actually -- it was more in the UK, probably GBP3 plus, right, because the difference in currencies, so we try to catch it up to the dollar. So it's a higher increase in the UK than we would do in the US, but -- so we're targeting about $2 in the US.

這是一種在美國瞄準 2 美元左右的目標。事實上，我們在英國的情況更多，可能是 3 英鎊以上，對吧，因為貨幣的差異，所以我們試圖趕上美元。因此，英國的增幅高於美國，但是——所以我們的目標是美國的增幅約為 2 美元。

Is that roughly kind of a 20% blended average? Or how do you guys think about that?

這大約是 20% 的混合平均值嗎？或者說大家對此有何看法？

Yeah. I mean the $2 is about 17.5%. But if you kind of take this on some third parties, it depends on the currency, then probably 20% is probably accurate.

是的。我的意思是 2 美元大約是 17.5%。但如果你對某些第三方採取這一點，這取決於貨幣，那麼 20% 可能是準確的。

Great. And then just pivoting quickly to Marketplace. I know it's early and you just got to kind of up and run it but what are your expectations in terms of what is that business? Does it incrementally generate meaningful revenue this year? Is this year more of a testing year? Think about adding incremental revenues meaningfully next year? What should we kind of expect to see in terms of this?

偉大的。然後快速轉向市場。我知道現在還為時過早，您只需啟動並運行它，但是您對該業務的期望是什麼？今年它會逐漸產生有意義的收入嗎？今年是否更像是考驗年？考慮明年有意義地增加增量收入嗎？我們應該期待看到什麼？

Sure. So we've been primarily testing Marketplace in beta up until today. So today, there was a release that went out prior to our earnings release announcing the rollout of Marketplace to our entire member base. Based on our testing to our beta groups, we're optimistic about the revenue opportunity contributed from Marketplace. We do see that growing sequentially over time, typically because of how the revenue is attributed.

當然。因此，直到今天我們一直主要測試 Marketplace 的測試版。因此，今天，在我們發布財報之前發布了一份新聞稿，宣布向我們的整個會員群推出 Marketplace。根據我們對測試組的測試，我們對 Marketplace 帶來的收入機會持樂觀態度。我們確實看到隨著時間的推移，這一數字不斷增長，通常是因為收入的歸屬方式。

So we anticipate most of the revenue to come from retreats and experiences. And so if we take sales for retreat now in Q1, we'll be building up that deferred revenue in Marketplace. So much of the quote-unquote sales that we take now and for instance, in Q3 and Q4, a majority of that would also be deferred revenue, which would hit in Q1, Q2. So we see a stacking effect of that throughout the year.

因此，我們預計大部分收入將來自靜修和體驗。因此，如果我們現在在第一季將銷售額撤退，我們將在 Marketplace 中增加遞延收入。我們現在的大部分報價-未報價銷售，例如在第三季和第四季度，其中大部分也將是遞延收入，這將在第一季和第二季受到影響。因此，我們看到全年的疊加效應。

And alongside price increase, where like Jirka had hinted in his script, we see our growth rate increasing from double digits currently to sort of mid-teens in, and we anticipate that marketplace will contribute to that mid-teens growth as we go into 2025 alongside the price increase attribution as well.

隨著價格上漲，正如Jirka 在他的腳本中所暗示的那樣，我們看到我們的成長率從目前的兩位數增加到十幾歲左右，我們預計，進入2025 年，市場將為這種十幾歲左右的成長做出貢獻同時也歸因於價格上漲。

You should look at community, Mark -- sorry, the Marketplace as a part of the community, our goal with Gaia to ultimately be a conscious community worldwide. And we would plan to launch actually the actual community kind of by end of the next year. And so Marketplace is kind of part of that. We spend no marketing -- no basically separate marketing expenses. It's basically only to our members. So there's kind of e-mail and being on the site.

你應該看看社區，馬克——抱歉，市場是社區的一部分，我們與蓋亞的目標是最終成為全球有意識的社區。我們計劃在明年年底前推出真正的社區。因此，Marketplace 就是其中的一部分。我們不花任何行銷費用——基本上沒有單獨的行銷費用。基本上只對我們的會員開放。所以有一些電子郵件和網站。

So it's pure increase to ARPU. It should break even pretty quickly. It's not breaking even now so contributed to some of the losses this quarter, probably be in the third because we already staffed, and we don't have the revenue yet. But that will get pretty quickly because we just use about four people. So when I kind of look at it, look at it as the beginning of the community. So global community of like-minded people, that's how we look at it.

所以這純粹是 ARPU 的增加。它應該很快就會收支平衡。它現在還沒有達到收支平衡，所以造成了本季度的一些損失，可能是在第三季度，因為我們已經配備了人員，而且我們還沒有收入。但這很快就會完成，因為我們只使用了大約四個人。因此，當我看待它時，將其視為社區的開始。因此，我們就是這樣看待志同道合的人們的全球社區的。

Good. The last one for me. You've mentioned this Igniton, I think I'm pronouncing that right, that you guys have invested some money and raised some additional capital. Is this a product at this point? Is it -- are you going to be able to commercialize this? Maybe talk through a little bit of the concept here, what it is and how over time you think you can monetize it?

好的。對我來說最後一張。你提到了這個 Igniton，我想我的發音是正確的，你們已經投資了一些錢並籌集了一些額外的資金。這是目前的產品嗎？你能將其商業化嗎？也許在這裡談談這個概念，它是什麼，以及隨著時間的推移，您認為如何將其貨幣化？

We would assume that we'll get start monetizing next year. It's a technology, as I mentioned, kind of concentrate and stabilize the subatomic particle from the sun, which is known to ancients but it was never used that way. So we, right now, embed it in the food supplements, which was tested over the last two years.

我們假設明年我們將開始貨幣化。正如我所提到的，這是一種集中並穩定來自太陽的亞原子粒子的技術，古人已經知道這一點，但從未以這種方式使用過。因此，我們現在將其嵌入食品補充劑中，並在過去兩年進行了測試。

And typically, the results of the studies, they were actually published in peer review medical journals. And this improved the memory 80% to 100% within 30 days. So it's very significant, a lot of interest. We're not monetizing it yet. But ultimately, the idea of it at Gaia, is that we can release some kind of device -- connected TV device and we can deliver it through the increase on coated microchips using Gaia broadcast.

通常情況下，研究結果實際上發表在同行評審醫學期刊上。這在 30 天內將記憶力提高了 80% 至 100%。所以這非常重要，引起了很多興趣。我們還沒有將其貨幣化。但最終，蓋亞的想法是，我們可以發布某種設備——連網電視設備，我們可以透過使用蓋亞廣播增加塗層微晶片來提供它。

And so it's obviously a few years off for that part, but it was always very promising. The results are outstanding. People who get a sample as we did with our employees. And so also improve brain capacity cognition. So it's very promising but it's early but that's why we kind of decided to raise some outside money. So doesn't chew on Gaia additional free cash flow because we're pretty much committed to this free cash flow at Gaia.

所以這部分顯然還需要幾年的時間，但它總是非常有希望的。結果非常出色。像我們對員工一樣獲取樣本的人。如此也能提高大腦認知能力。所以它非常有前途，但還為時過早，但這就是我們決定籌集一些外部資金的原因。因此，不會咀嚼蓋亞額外的自由現金流，因為我們非常致力於蓋亞的自由現金流。

I would also just add to that, Jirka, and Mark, that these two use cases that Jirka has suggested on the embedded food supplements and the microchip are just two potentials for the technology. So it sounds very exciting that we have this announcement for this quarter.

Jirka 和 Mark，我還要補充一點，Jirka 在嵌入式食品補充劑和微晶片上建議的這兩個用例只是該技術的兩個潛力。因此，我們在本季發布這項公告聽起來非常令人興奮。

We probably also -- as this product will be launched in the form of supplements, it will be launched and one of the channels will be in Gaia Marketplace.

我們也可能 - 由於該產品將以補充劑的形式推出，因此它將推出，其中一個管道將在 Gaia Marketplace 中。

Thierry Wuilloud, Water Tower Research.

Thierry Wuilloud，水塔研究。

Mark covered quite a few spots there. But maybe on Marketplace, is it going to be a challenge to scale it up or how do you see that working? I mean I'm looking at maybe trips to Egypt or offering of that kind. Can you really offer that to the whole membership base, which is obviously very large at this point?

馬克在那裡涵蓋了相當多的地方。但也許在 Marketplace 上，擴大規模是否會是一個挑戰，或者您認為這種做法如何運作？我的意思是我正在考慮去埃及旅行或提供類似的服務。你真的可以向整個會員群體提供這樣的服務嗎？

Thierry, thank you for your questions. So with Marketplace, we anticipate building revenue slowly over time. And like I mentioned in my previous answer, a lot of the sales, qoute-unqoute, that we might be taking now would be deferred into future quarters as the way we book it when the retreat happens, or this tour happens.

蒂埃里，謝謝你的提問。因此，對於 Marketplace，我們預計隨著時間的推移，收入會慢慢增加。正如我在之前的回答中提到的，我們現在可能進行的許多銷售，qoute-unqoute，將被推遲到未來的幾個季度，就像我們在靜修發生或這次旅行發生時預訂的方式一樣。

So this is something we'll be growing over time and testing into our beta test to small segments of our market -- of our member base were very promising, and we're excited about the opportunity of this in particular, in terms of how it's going to help us move towards the sort of mid-teen growth in 2025.

因此，隨著時間的推移，我們將繼續發展這一點，並對我們市場的一小部分進行 Beta 測試——我們的會員群非常有希望，我們對這個機會感到興奮，特別是在如何它將幫助我們在2025 年實現青少年中期成長。

With regards to the tours, you mentioned Egypt. This applies to a segment of our audience in particular, that is interested in one of our tentpole series, ancient civilizations. But we have also now on the Marketplace a varied array of retreats, tours, experiences, courses, training programs, live events that now cater to many different segments of our member base and different content and shows that our members have grown to love.

關於旅行，你提到了埃及。這尤其適用於我們的一部分觀眾，他們對我們的支柱系列之一——古代文明感興趣。但我們現在在市場上也有各種各樣的靜修、旅遊、體驗、課程、培訓計劃、現場活動，這些活動現在迎合了我們會員群的許多不同部分和不同的內容，並表明我們的會員已經越來越喜歡。

So you'll see that we have different experiences and offerings to cater to all these member subsets. And we anticipate that given our capacity to be able to target these members through on-site and in-app contextual promotion and e-mail promotion and notification promotion, we'll be able to reach these members with these exclusive offers and discounts and build that momentum in revenue attribution over time.

因此，您會發現我們有不同的體驗和產品來滿足所有這些成員群體的需求。我們預計，鑑於我們有能力透過現場和應用程式內的上下文促銷以及電子郵件促銷和通知促銷來瞄準這些會員，我們將能夠透過這些獨家優惠和折扣來吸引這些會員，並建立隨著時間的推移，收入歸因的勢頭。

Okay. Great. On the price increase, I was wondering, do you have expectations in terms of you increase the price by like $2 or by GBP3, do you have an expectation as to what kind of attrition could be caused by that? And how do you balance the trade-off?

好的。偉大的。關於價格上漲，我想知道，您是否期望將價格提高 2 美元或 3 英鎊，您是否預計這會導致什麼樣的消耗？您如何平衡權衡？

Well, we don't really have any benchmarks. So there's certainly no other companies that publicly published benchmarks that relate to price increases. However, when we've done this in the past in terms of acquisition, we do see that we make the delta on the increase. And we anticipate that we would be doing the same as we roll out these tests into Great British pounds and further. And so that's what we're currently aiming for.

嗯，我們確實沒有任何基準。因此，肯定沒有其他公司公開發布與價格上漲相關的基準。然而，當我們過去在收購方面這樣做時，我們確實看到我們的增量正在增加。我們預計，當我們將這些測驗推廣到英鎊及其他貨幣時，我們也會做同樣的事情。這就是我們目前的目標。

Yeah. We have -- we never raised money before for existing members. For new members, we did raise the price for about $2 in 2019. And so that time was about 20% price increase and the kind of increase in conversion and basically losses. But it was more kind of decreases in conversion, took about 8% out. So the gain was about 12% -- 11.5%, 12% at that time for the new members. We have -- we have no eyeball on existing members. We have this test going in Britain, and we probably wouldn't know for another 30 days.

是的。我們以前從未為現有會員籌集過資金。對於新會員，我們確實在 2019 年將價格提高了約 2 美元。那時價格上漲了 20% 左右，轉換率也隨之增加，基本上是虧損。但更多的是轉換率的下降，大約減少了 8%。所以當時新會員的漲幅大概是12%——11.5%，12%。我們對現有成員沒有關注。我們在英國正在進行這項測試，可能再過 30 天我們才會知道結果。

Okay. Finally, about Igniton, you talked about food supplements, you talked about microchip. It seems the food supplement would be maybe a more straightforward way to deliver the product or the substance. How closely -- how close are you to maybe some revenue from that or from launching that?

好的。最後，關於 Igniton，您談到了食品補充劑，您談到了微晶片。看來食品補充劑可能是提供產品或物質的更直接的方式。您距離該專案或推出該專案的收入有多近？

Well, I just answered that question. We expect to do that early next year. We already have -- we can do it effectively now. We're just finishing some more studies but all the technologies and equipment in place so we can technically do it even in fourth quarter but our plan is to do it -- we might be able to do it before -- for Christmas, but our target is for next year.

嗯，我剛剛回答了這個問題。我們預計明年初就能做到這一點。我們已經——我們現在可以有效地做到這一點。我們剛剛完成更多研究，但所有技術和設備都已到位，因此即使在第四季度我們也可以在技術上做到這一點，但我們的計劃是在聖誕節之前做到這一點，但我們的計劃是在聖誕節之前做到這一點目標是明年。

And do you have a sense of what channels you're going to use to market that?

您是否知道將使用哪些管道來行銷該產品？

Well, there are several different channels, which -- I mentioned one of them would be on our Marketplace. Second, Igniton has a network of distributors in 50 countries targeted mostly practitioners, hospitals and research labs. And so we would use our existing channels in Igniton, and there would be a few other channels which will be finalized over the next 90 days.

嗯，有幾種不同的管道，我提到其中一個將在我們的市場上。其次，Igniton 在 50 個國家擁有經銷商網絡，主要針對從業者、醫院和研究實驗室。因此，我們將使用 Igniton 中的現有管道，並且還會有一些其他管道將在未來 90 天內最終確定。

Saken Ismailov, Freedom Broker.

薩肯‧伊斯梅洛夫，自由掮客。

Yeah. My question is about your media library. Can you share your plans for expanding your media library? And what level of investments are you targeting this year and possibly next year as a percentage of your revenue?

是的。我的問題是關於你們的媒體庫的。能分享一下擴展媒體庫的計畫嗎？今年和明年的目標投資佔收入的百分比是多少？

Okay. Sorry, I didn't quite catch your name there. It's James here, the CEO, and I'll also pass to Ned for some sort of more specifics on this so to confirm.

好的。抱歉，我沒聽清楚你的名字。我是執行長詹姆斯，我也會向內德詢問更多細節，以便確認。

With regards to investment in our media library, one of the unique points of difference we have as a streamer is that we own over 85% of our content library. We also have over 98% worldwide rights for all of our owned content and any licensed third-party content. Currently, we're spending circa 11%, 11.5% of our revenue on content production.

關於媒體庫的投資，作為串流媒體，我們的獨特之處之一是我們擁有超過 85% 的內容庫。我們也對我們擁有的所有內容和任何授權的第三方內容擁有超過 98% 的全球權利。目前，我們將大約 11%、11.5% 的收入用於內容製作。

I would kind of say that's on direct because we also do licensing, right? So it's probably total about 14%.

我想說這是直接的，因為我們也做許可，對吧？所以總共大概是 14% 左右。

Like Jirka said, about 11%, 11.5% on produced content, 14% total, including third-party acquired content. We'd anticipate in 2025, potentially increasing the produced content percentage over time and adding to that media library asset.

就像 Jirka 所說，大約 11%，其中 11.5% 是製作內容，總共 14%，包括第三方取得的內容。我們預計到 2025 年，隨著時間的推移，製作內容的百分比可能會增加，並將添加到媒體庫資產中。

We've also spoken, Ned and Jirka and I, on potentially having our media library revalued. We did have it valued a number of years ago, and we see it as a huge strength to the business owning that much content on our balance sheet and being able to leverage it into new languages and new markets as we grow and expand.

Ned、Jirka 和我還討論了重新評估我們的媒體庫的可能性。幾年前我們確實對它進行了估值，我們認為它對企業來說是一種巨大的優勢，在我們的資產負債表上擁有如此多的內容，並且隨著我們的成長和擴張，能夠將其利用到新的語言和新的市場。

Yeah. Saken, it's Ned Preston. Thanks for the question. Yes, you've probably seen some language in our Investor Relations deck or presentation on our IR website. On the balance sheet, we make some notes on anyone who's met with us in person.

是的。薩肯，我是內德·普雷斯頓。謝謝你的提問。是的，您可能在我們的投資者關係平台或投資者關係網站上的簡報中看到一些語言。在資產負債表上，我們對與我們親自會面的任何人做了一些記錄。

Yeah. We're quite proud of our media library. We value it at least $150 million. And I know from transitioning from auditors this past Q4 that, that's a solid number. We have gone out and looked at doing a formal revaluation here in the middle part of the year. We feel comfortable that that $150 million will stand or could even be slightly higher.

是的。我們對我們的媒體庫感到非常自豪。我們估價至少 1.5 億美元。我從去年第四季審計員的過渡中得知，這是一個可靠的數字。我們已經考慮在今年中期進行正式的重估。我們確信 1.5 億美元將保持不變，甚至可能略高。

But back to James' earlier point, is that we use a lot of data to evaluate what content, what to add to our media library. And also in that presentation deck, you can see that over time a lot of our content is timeless. A lot of it really retains its value over long periods of time. And thus, the fact that our library value doesn't shrink, if anything, it will grow as we add new content.

但回到詹姆斯之前的觀點，我們使用大量數據來評估要添加到我們的媒體庫中的內容和內容。而且在簡報中，您還可以看到隨著時間的推移，我們的許多內容都是永恆的。其中許多確實可以在很長一段時間內保持其價值。因此，事實上我們的圖書館價值並沒有縮小，甚至會隨著我們添加新內容而成長。

So I'd love to talk about it with you in more detail as we get to know you and the Freedom Broker team further, Saken.

因此，隨著我們進一步了解您和自由經紀人團隊，Saken，我很樂意與您更詳細地討論這個問題。

And I would generally say, because we produce our content very differently than pretty much anybody -- any streamers, they mostly hire independent producers and the producers then hire what's called spot labor. So the overall margins where they have to book in the content, what gets on the balance sheet is more than twice what we do.

我通常會說，因為我們製作的內容與幾乎任何人（任何串流媒體）都非常不同，他們大多僱用獨立製作人，然後製作人僱用所謂的現場勞動力。因此，他們必須在資產負債表上記錄的內容的整體利潤是我們的兩倍以上。

We also know, when we produce content for like PBS or Discovery, that, roughly, if we get a budget from them, we -- would cost us about half what the budget would be because we use pretty much only as a full-time employees who move to our studios to Colorado.

我們也知道，當我們為 PBS 或 Discovery 等製作內容時，粗略地說，如果我們從他們那裡獲得預算，我們將花費大約預算的一半，因為我們幾乎只用作全職搬到我們科羅拉多州工作室的員工。

So you can also -- otherwise, you can see that. If you kind of see a number of content what we have in the balance sheet compared to other streamers, we -- you would see that we would have maybe 2 times, 2.5 times up to 3 times higher GB contribution than they would have because our cost and balance sheet is probably half what they would -- what somebody else would put it. So it's our big advantage compared to future.

所以你也可以——否則，你會看到這一點。如果你看到我們的資產負債表中的一些內容與其他串流媒體相比，你會發現我們的 GB 貢獻可能是他們的 2 倍、2.5 倍到 3 倍，因為我們的成本和資產負債表可能只有他們所說的一半——其他人所說的。所以與未來相比，這是我們的一大優勢。

Okay. And I have another (Technical Difficulty)

好的。我還有另一個（技術難度）

Of course, go ahead, Saken. Maria, did we drop, or did we lose Saken?

當然，繼續吧，薩肯。瑪麗亞，我們失敗了，還是我們失去了薩肯？

I think, Saken, are you muted? Can you?

我想，Saken，你靜音了嗎？你可以嗎？

Can you hear me now?

現在你能聽到我說話嗎？

Yeah.

是的。

Yeah. As I said, I can see that your net cash flow from operating activities is negative and is quite largely negative. Can you explain it for me, please?

是的。正如我所說，我可以看到你們經營活動產生的淨現金流量是負的，而且很大程度上是負的。你能為我解釋一下嗎？

For Q2.

對於第二季。

Yeah. So through the first six months, our operating cash flows are positive. And as you can see, free cash flows in the quarter were positive. In the second quarter, we had a number of nonrecurring expenses hit us, left over from a restatement that we announced at the end of Q1 as well as some of the work that went into launching Igniton. So that's really at the core of why operating cash flows were negative for the quarter. We expect to get that back on track in the third quarter.

是的。因此，在前六個月，我們的營運現金流為正。正如您所看到的，本季的自由現金流為正。在第二季度，我們遭受了一些非經常性費用的打擊，這些費用是我們在第一季末宣布的重述以及啟動 Igniton 的一些工作所遺留下來的。因此，這確實是本季營運現金流為負的核心原因。我們預計第三季將重回正軌。

Yeah. We, as a company -- and we kind of said at the beginning of the year, we earn based on the free cash flow, which was positive, and we expect to be positive. So we generated cash every quarter for the last five quarters.

是的。作為一家公司，我們在年初曾說過，我們的獲利是基於自由現金流，這是正數，我們預期也會是正數。因此，過去五個季度我們每季都會產生現金。

At this time, this concludes our question-and-answer session. I'd now like to turn the call back over to Mr. Rysavy for his closing remarks.

至此，我們的問答環節就結束了。現在我想將電話轉回給雷薩維先生，讓他作結束語。

Thank you, everyone, for joining, and we look forward to speaking with you when we will report our third quarter, which will be by -- to the end of October. Thank you very much.

感謝大家的加入，我們期待在我們報告第三季時與您交談，該季度將於 10 月底結束。非常感謝。

Thank you for joining us today for Gaia's second quarter 2024 earnings conference call. You may now disconnect.

感謝您今天加入我們蓋亞 2024 年第二季財報電話會議。您現在可以斷開連線。