SiriusXM Reports Fourth Quarter and Full-Year 2023
Operating and Financial Results
- 2023 Full-Year Revenue of $8.95 Billion
- Full-YearNet Income of $1.26 Billion; Diluted EPS of $0.32
- Full-YearAdjusted EBITDA of $2.79 Billion
- Full-YearFree Cash Flow of $1.20 Billion
- Company Announces 2024 Financial Guidance
NEW YORK - February 1, 2024 - SiriusXM today announced fourth quarter and full-year 2023 operating and financial results, including revenue of $2.29 billion and $8.95 billion, respectively, which remained relatively flat compared to the same periods in 2022. The company recorded net income of $352 million and $1.26 billion in the fourth quarter and full-year 2023, respectively, compared to $365 million and $1.21 billion in the prior year, respectively. Net income per diluted common share was $0.09 and $0.32 in the fourth quarter and full-year 2023, respectively.
In the fourth quarter of 2023, adjusted EBITDA totaled $715 million, a 4% decrease from the $742 million recorded in the same period in 2022. Full-year 2023 adjusted EBITDA of $2.79 billion declined slightly at 2% when compared to the prior year.
In the fourth quarter of 2023, the company generated $445 million in free cash flow compared to $529 million in the prior year period. Full-year 2023 free cash flow was $1.20 billion, compared to $1.55 billion in the preceding year. The decrease in free cash flow was primarily attributed to higher capital expenditures driven by satellite construction and investments in the company's products and technology platform as well as higher cash taxes paid.
"In 2023, SiriusXM laid the groundwork for future growth through the successful launch of our next-generation platform and the new SiriusXM app," said Jennifer Witz, Chief Executive Officer. "Our commitment to growth was also demonstrated by strategic content investments that expanded our reach to new listeners and by staying true to our identity as a hub for curated, live and on-demand audio experiences. As we look to 2024, our guidance reflects substantial efforts and investments to enhance the value proposition of our subscription and advertising businesses, which we believe will strengthen our long-term growth profile."
"Our fourth quarter financial results speak volumes about our resilient performance," said Tom Barry, Chief Financial Officer. "In the year ahead, we see opportunities for further cost efficiencies and to streamline our business in new and innovative ways. We plan to maintain our long-term target leverage ratio of mid-tolow-3 times adjusted EBITDA, with a plan to return to this range in the second half of 2025 following our expected closing of the announced transaction with Liberty Media this summer. While we anticipate a focus on deleveraging, we will continue our dividend policy and remain opportunistic on share repurchases," added Barry.
SEGMENT HIGHLIGHTS
Sirius XM Holdings operates two complementary audio entertainment businesses - one of which is referred to as "SiriusXM" and the second of which is referred to as "Pandora and Off-Platform." Further information regarding these two segments will be contained in the company's Annual Report on Form 10-K for the year ended December 31, 2023. The financial highlights below exclude the impact of share-based payment expense.
SiriusXM Fourth Quarter and 2023 Segment Highlights
Total Subscribers of 34 Million
SiriusXM added approximately 131,000 new self-pay subscribers in the fourth quarter of 2023. For the full-year 2023, self-pay subscribers decreased by 445,000 and we ended 2023 with approximately 34 million total subscribers. Paid promotional subscribers declined by 225,000 during the fourth quarter of 2023; however, paid promotional subscribers increased by approximately 15,000 for the full-year 2023. The total vehicle trial funnel stood at approximately 7.2 million at the end of 2023, up from 6.8 million at the end of 2022 but down from 7.5 million at the end of the third quarter 2023. Self-pay monthly churn for 2023 remained low at 1.6%.
Full-Year Revenue of $6.8 Billion
In 2023, SiriusXM's total revenue was $6.8 billion, a 1% decrease from 2022. This decrease was primarily a result of lower paid promotional revenue from automakers, reduced revenue from connected vehicle services and a 14% decline in advertising revenue, in large part due to reduced news and entertainment spots sold and aired, and was partially offset by an increase in self-pay subscription revenue. The full-year 2023 Average Revenue Per User (ARPU) decreased slightly to $15.56, driven by a growing number of self-paystreaming-only and promotional subscriptions, along with reduced rates from automakers offering paid promotional plans and lower advertising revenue.
Full-Year Gross Profit of $4.2 Billion
Total cost of services at SiriusXM was $2.7 billion for 2023, a 2% increase compared to the prior year. Gross profit at SiriusXM in 2023 totaled $4.2 billion, a decrease of 3% compared to $4.3 billion recorded in 2022, producing a gross margin of 61%, one percentage point lower than the prior year.
Expanded Content Offering
In the fourth quarter, SiriusXM made significant strides in expanding its exclusive content portfolio with the introduction of new artist channels featuring John Mayer and Kelly Clarkson, along with several new genre channels tailored to capture the interests of younger audiences. "Life with John Mayer" stands out for its innovative organization of content by time and day, and has become a listener favorite, launching as one of its most listened-toartist-branded channels.
Adding to the company's high-profile talent roster, "This Life of Mine with James Corden" premiered today on the SiriusXM channel Stars.
Product Highlights
On December 14, 2023, SiriusXM achieved a significant milestone in its growth strategy by launching its new app on its next-generation platform. The app has swiftly gained traction, and with roughly 90% of existing mobile users transitioned to the new platform, the recommendation engine is introducing listeners to a greater breadth of content available on SiriusXM.
In 2023, SiriusXM extended its long-term agreements with major automakers such as Mercedes-Benz, Volvo, and Honda. These agreements are standardizing personalization and content discovery features across all 360L- enabled vehicles, enhancing the in-vehicle experience with increased access to even more music channels, Personalized Artist Stations, Live Sports, and more. Additionally, in 2023, SiriusXM expanded its adoption with electric vehicle makers, signing agreements with Rivian and Polestar to integrate SiriusXM this year.
Pandora and Off-Platform Fourth Quarter and 2023 Segment Highlights
Total Self-Pay Subscribers of 6.0 Million
Self-pay subscribers to the Pandora Plus and Pandora Premium services decreased by 3% in 2023 to 6.0 million users compared to 6.2 million users at the end of 2022.
Full-YearAdvertising-Supported Listener Hours of 10.48 Billion
Monthly Active Users (MAUs) at Pandora were 46.0 million at the end of 2023, down from 47.6 million in the prior year. Total ad-supported listener hours were 10.48 billion at the end of 2023, down 4% from 10.88 billion at the end of 2022. Average monthly hours per ad-supported user grew 3% to 21.2 in 2023 compared to 20.6 in 2022.
Full-Year Advertising Revenue of $1.6 Billion
Advertising revenue in the Pandora and Off-Platform segment for the full-year 2023 reached $1.6 billion, an increase of 1% year-over-year. The increase is attributable to steady growth in the company's programmatic and podcasting advertising sales despite a challenged advertising market throughout the year.
Full-Year Gross Profit of $638 Million
Total cost of services increased by 2% for the full year 2023, while subscriber revenue of $524 million remained relatively flat year-over-year. Advertising revenue increased as noted above. This resulted in a gross profit in the Pandora and Off-Platform segment of $638 million for the full year 2023, a decrease of 3% compared to the prior year, and produced a gross margin of 30%.
Expanded Podcast Offering
SiriusXM's podcast network continues to grow, highlighted by the recent announcement of a new exclusive agreement with the hit podcast "SmartLess" that benefits both SiriusXM's subscription and advertising business with a wide array of exclusive content only available to subscribers, along with global advertising sales rights.
ADDITIONAL FINANCIAL HIGHLIGHTS
Subscriber acquisition costs increased by 2% to $359 million for the full-year 2023 compared to $352 million in the prior year, driven by higher equipment installations by automakers. Sales and marketing costs decreased by 13% to $886 million for the full-year 2023 compared to $1,023 million in 2022. The decrease was driven by reduced marketing spend ahead of the SiriusXM digital product launch. In addition, 2022 sales and marketing expense was boosted by a multi-media national ad campaign that aired throughout 2022 promoting SiriusXM. Engineering, design and development costs increased 12% to $276 million in 2023 in support of SiriusXM's digital product launch, and general and administrative expenses increased by 3% to $478 million in 2023. In 2023, we saved $140 million through cost optimization and consolidation across all aspects of our business. For 2024, we aim for an extra $200 million in savings by further optimizing areas including marketing and programming, and enhancing customer service efficiency.
2024 FINANCIAL GUIDANCE
The company announced its full-year 2024 guidance for revenue, adjusted EBITDA, and free cash flow:
- Total revenue of approximately $8.75 billion,
- Adjusted EBITDA of approximately $2.70 billion, and
- Free cash flow of approximately $1.20 billion.
The company's guidance for adjusted EBITDA and free cash flow for 2024 does not include any effects of the proposed transaction with Liberty Media, anticipated to close during the third quarter of 2024. The company therefore expects to revise its 2024 free cash flow guidance following the closing of the Liberty Media transaction. The company anticipates that free cash flow will be reduced by expenses associated with the proposed transaction with Liberty Media and incremental interest expense associated with debt being assumed and incurred in connection with the proposed transaction.
As a matter of general practice, the company does not publicly disclose detailed internal projections of its future financial performance. However, certain unaudited financial forecasts for the years ending December 31, 2024, and December 31, 2025, were prepared by the company in connection with the announced transaction with Liberty Media, and at that time represented management's best estimates of certain financial items. A summary of those financial forecasts is contained in the Registration Statement on Form S-4 filed by Liberty Sirius XM Holdings Inc. with the Securities and Exchange Commission on January 29, 2024, under the heading 'Sirius XM Holdings Financial Projections.' Certain of those financial projections were used by the Special Committee of the Sirius XM Holdings Inc. Board of Directors solely in connection with the preparation of its financial advisor's analyses and opinion.
FOURTH QUARTER AND FULL-YEAR 2023 RESULTS
SIRIUS XM HOLDINGS INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
|
For the Three Months Ended |
For the Twelve Months Ended |
||||||||||
|
December 31, |
December 31, |
||||||||||
|
(in millions, except per share data) |
2023 |
2022 |
2023 |
2022 |
|||||||
|
Revenue: |
(Unaudited) |
(Unaudited) |
|||||||||
|
Subscriber revenue |
$ |
1,720 |
$ |
1,726 |
$ |
6,866 |
$ |
6,892 |
|||
|
Advertising revenue |
479 |
480 |
1,758 |
1,772 |
|||||||
|
Equipment revenue |
51 |
41 |
193 |
189 |
|||||||
|
Other revenue |
37 |
36 |
136 |
150 |
|||||||
|
Total revenue |
2,287 |
2,283 |
8,953 |
9,003 |
|||||||
|
Operating expenses: |
|||||||||||
|
Cost of services: |
|||||||||||
|
Revenue share and royalties |
733 |
712 |
2,895 |
2,802 |
|||||||
|
Programming and content |
162 |
158 |
618 |
604 |
|||||||
|
Customer service and billing |
113 |
124 |
476 |
497 |
|||||||
|
Transmission |
53 |
56 |
206 |
214 |
|||||||
|
Cost of equipment |
4 |
4 |
14 |
13 |
|||||||
|
Subscriber acquisition costs |
89 |
85 |
359 |
352 |
|||||||
|
Sales and marketing |
251 |
238 |
931 |
1,075 |
|||||||
|
Engineering, design and development |
88 |
76 |
322 |
285 |
|||||||
|
General and administrative |
129 |
142 |
550 |
525 |
|||||||
|
Depreciation and amortization |
149 |
132 |
554 |
536 |
|||||||
|
Impairment, restructuring and acquisition costs |
26 |
(6) |
82 |
64 |
|||||||
|
Total operating expenses |
1,797 |
1,721 |
7,007 |
6,967 |
|||||||
|
Income from operations |
490 |
562 |
1,946 |
2,036 |
|||||||
|
Other (expense) income: |
|||||||||||
|
Interest expense |
(103) |
(108) |
(423) |
(422) |
|||||||
|
Other (expense) income |
(5) |
(4) |
(5) |
(9) |
|||||||
|
Total other expense |
(108) |
(112) |
(428) |
(431) |
|||||||
|
Income before income taxes |
382 |
450 |
1,518 |
1,605 |
|||||||
|
Income tax expense |
(30) |
(85) |
(260) |
(392) |
|||||||
|
Net income |
$ |
352 |
$ |
365 |
$ |
1,258 |
$ |
1,213 |
|||
|
Foreign currency translation adjustment, net of |
|||||||||||
|
6 |
4 |
7 |
(19) |
||||||||
|
tax |
|||||||||||
|
Total comprehensive income |
$ |
358 |
$ |
369 |
$ |
1,265 |
$ |
1,194 |
|||
|
Net income per common share: |
|||||||||||
|
Basic |
$ |
0.09 |
$ |
0.09 |
$ |
0.33 |
$ |
0.31 |
|||
|
Diluted |
|||||||||||
|
$ |
0.09 |
$ |
0.09 |
$ |
0.32 |
$ |
0.31 |
||||
|
Weighted average common shares outstanding: |
|||||||||||
|
Basic |
3,840 |
3,891 |
3,858 |
3,916 |
|||||||
|
Diluted |
|||||||||||
|
3,860 |
3,951 |
3,888 |
3,990 |
||||||||
|
Dividends declared per common share |
|||||||||||
|
$ |
0.0266 |
$ |
0.0242 |
$ |
0.0992 |
$ |
0.3400845 |
||||
SIRIUS XM HOLDINGS INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
|
(in millions, except per share data) |
December 31, 2023 |
December 31, 2022 |
|||
|
ASSETS |
|||||
|
Current assets: |
|||||
|
Cash and cash equivalents |
$ |
216 |
$ |
57 |
|
|
Receivables, net |
709 |
655 |
|||
|
Related party current assets |
36 |
42 |
|||
|
Prepaid expenses and other current assets |
310 |
284 |
|||
|
Total current assets |
1,271 |
1,038 |
|||
|
Property and equipment, net |
1,754 |
1,499 |
|||
|
Intangible assets, net |
2,905 |
3,050 |
|||
|
Goodwill |
3,249 |
3,249 |
|||
|
Related party long-term assets |
497 |
488 |
|||
|
Deferred tax assets |
155 |
147 |
|||
|
Operating lease right-of-use assets |
279 |
315 |
|||
|
Other long-term assets |
264 |
236 |
|||
|
Total assets |
$ |
10,374 |
$ |
10,022 |
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) |
|||||
|
Current liabilities: |
|||||
|
Accounts payable and accrued expenses |
$ |
1,306 |
$ |
1,248 |
|
|
Accrued interest |
166 |
165 |
|||
|
Current portion of deferred revenue |
1,195 |
1,322 |
|||
|
Current maturities of debt |
505 |
196 |
|||
|
Operating lease current liabilities |
46 |
50 |
|||
|
Related party current liabilities |
8 |
- |
|||
|
Total current liabilities |
3,226 |
2,981 |
|||
|
Long-term deferred revenue |
88 |
81 |
|||
|
Long-term debt |
8,690 |
9,256 |
|||
|
Deferred tax liabilities |
509 |
565 |
|||
|
Operating lease liabilities |
292 |
320 |
|||
|
Other long-term liabilities |
134 |
170 |
|||
|
Total liabilities |
12,939 |
13,373 |
|||
|
Stockholders' equity (deficit): |
|||||
|
Common stock, par value $0.001 per share; 9,000 shares authorized; 3,843 and 3,891 |
4 |
4 |
|||
|
shares issued and outstanding at December 31, 2023 and December 31, 2022, |
|||||
|
respectively |
|||||
|
Accumulated other comprehensive loss, net of tax |
3 |
(4) |
|||
|
Accumulated deficit |
(2,572) |
(3,351) |
|||
|
Total stockholders' equity (deficit) |
(2,565) |
(3,351) |
|||
|
Total liabilities and stockholders' equity (deficit) |
$ |
10,374 |
$ |
10,022 |
|
SIRIUS XM HOLDINGS INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
For The Years Ended December 31, |
|||||
|
(in millions) |
2023 |
2022 |
|||
|
Cash flows from operating activities: |
|||||
|
Net income |
$ |
1,258 |
$ |
1,213 |
|
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|||||
|
Depreciation and amortization |
554 |
536 |
|||
|
Non-cash impairment and restructuring costs |
26 |
61 |
|||
|
Non-cash interest expense, net of amortization of premium |
14 |
15 |
|||
|
Provision for doubtful accounts |
59 |
59 |
|||
|
Loss on unconsolidated entity investments, net |
15 |
5 |
|||
|
Dividend received from unconsolidated entity investment |
- |
8 |
|||
|
(Gain) loss on other investments |
(7) |
10 |
|||
|
Share-based payment expense |
184 |
197 |
|||
|
Deferred income tax (benefit) expense |
(64) |
202 |
|||
|
Amortization of right-of-use assets |
45 |
49 |
|||
|
Changes in operating assets and liabilities: |
|||||
|
Receivables |
(114) |
10 |
|||
|
Related party, net |
49 |
(26) |
|||
|
Prepaid expenses and other current assets |
(26) |
(38) |
|||
|
Other long-term assets |
1 |
(1) |
|||
|
Accounts payable and accrued expenses |
62 |
(71) |
|||
|
Accrued interest |
1 |
(8) |
|||
|
Deferred revenue |
(121) |
(148) |
|||
|
Operating lease liabilities |
(50) |
(63) |
|||
|
Other long-term liabilities |
(36) |
(34) |
|||
|
Net cash provided by operating activities |
1,850 |
1,976 |
|||
|
Cash flows from investing activities: |
|||||
|
Additions to property and equipment |
(650) |
(426) |
|||
|
(Purchase) sale of other investments |
3 |
1 |
|||
|
Acquisition of business, net of cash acquired |
- |
(136) |
|||
|
Proceeds from sale of real estate |
- |
15 |
|||
|
Investments in related parties and other equity investees |
(39) |
(2) |
|||
|
Net cash used in investing activities |
(686) |
(548) |
|||
|
Cash flows from financing activities: |
|||||
|
Proceeds from exercise of stock options |
4 |
4 |
|||
|
Taxes paid from net share settlements for stock-based compensation |
(63) |
(114) |
|||
|
Revolving credit facility borrowings |
1,670 |
2,300 |
|||
|
Revolving credit facility repayments |
(1,750) |
(2,220) |
|||
|
Proceeds from long-term borrowings, net of costs |
- |
499 |
|||
|
Principal payments of long-term borrowings |
(202) |
(6) |
|||
|
Payment of contingent consideration for business acquisition |
(3) |
(3) |
|||
|
Distribution to parent related to Tax Sharing Agreement |
- |
(36) |
|||
|
Other financing activities |
(4) |
- |
|||
|
Common stock repurchased and retired |
(274) |
(647) |
|||
|
Dividends paid |
(383) |
(1,339) |
|||
|
Net cash used in financing activities |
(1,005) |
(1,562) |
|||
|
Net increase (decrease) in cash, cash equivalents and restricted cash |
159 |
(134) |
|||
|
Cash, cash equivalents and restricted cash at beginning of period (1) |
65 |
199 |
|||
|
Cash, cash equivalents and restricted cash at end of period (1) |
$ |
224 |
$ |
65 |
|
- The following table reconciles cash, cash equivalents and restricted cash per the statement of cash flows to the balance sheet. The restricted cash balances are primarily due to letters of credit which have been issued to the landlords of leased office space. The terms of the letters of credit primarily extend beyond one year.
|
(in millions) |
December 31, 2023 |
December 31, 2022 |
December 31, 2022 |
December 31, 2021 |
|||||||
|
Cash and cash equivalents |
$ |
216 |
$ |
57 |
$ |
191 |
$ |
71 |
|||
|
Restricted cash included in Other long-term assets |
8 |
8 |
8 |
12 |
|||||||
|
Total cash, cash equivalents and restricted cash at end of period |
$ |
224 |
$ |
65 |
$ |
199 |
$ |
83 |
|||
Unaudited Results
Set forth below are our results of operations for the three and twelve months ended December 31, 2023 compared with the three and twelve months ended December 31, 2022. Legal settlements and reserves and share-based payment expense have been excluded from cost of services line items and presented as their own line items in the table below, as this is consistent with how the segments are evaluated on a regular basis.
|
For the Three Months |
For the Twelve Months |
2023 vs 2022 Change |
|||||||||||||||||||
|
Ended December 31, |
Ended December 31, |
Three Months |
Twelve Months |
||||||||||||||||||
|
(in millions) |
2023 |
2022 |
2023 |
2022 |
Amount |
% |
Amount |
% |
|||||||||||||
|
Revenue |
|||||||||||||||||||||
|
Sirius XM: |
|||||||||||||||||||||
|
Subscriber revenue |
$ |
1,585 |
$ |
1,596 |
$ |
6,342 |
$ |
6,370 |
$ |
(11) |
(1)% |
$ |
(28) |
- % |
|||||||
|
Advertising revenue |
43 |
50 |
169 |
196 |
(7) |
(14)% |
(27) |
(14)% |
|||||||||||||
|
Equipment revenue |
51 |
41 |
193 |
189 |
10 |
24 % |
4 |
2 % |
|||||||||||||
|
Other revenue |
37 |
36 |
136 |
150 |
1 |
3 % |
(14) |
(9)% |
|||||||||||||
|
Total Sirius XM revenue |
1,716 |
1,723 |
6,840 |
6,905 |
(7) |
- % |
(65) |
(1)% |
|||||||||||||
|
Pandora and Off-platform: |
|||||||||||||||||||||
|
Subscriber revenue |
135 |
130 |
524 |
522 |
5 |
4 % |
2 |
- % |
|||||||||||||
|
Advertising revenue |
436 |
430 |
1,589 |
1,576 |
6 |
1 % |
13 |
1 % |
|||||||||||||
|
Total Pandora and Off-platform revenue |
571 |
560 |
2,113 |
2,098 |
11 |
2 % |
15 |
1 % |
|||||||||||||
|
Total consolidated revenue |
2,287 |
2,283 |
8,953 |
9,003 |
4 |
- % |
(50) |
(1)% |
|||||||||||||
|
Cost of services |
|||||||||||||||||||||
|
Sirius XM: |
|||||||||||||||||||||
|
Revenue share and royalties |
402 |
382 |
1,603 |
1,552 |
20 |
5 % |
51 |
3 % |
|||||||||||||
|
Programming and content |
133 |
131 |
518 |
514 |
2 |
2 % |
4 |
1 % |
|||||||||||||
|
Customer service and billing |
92 |
103 |
388 |
409 |
(11) |
(11)% |
(21) |
(5)% |
|||||||||||||
|
Transmission |
43 |
41 |
166 |
153 |
2 |
5 % |
13 |
8 % |
|||||||||||||
|
Cost of equipment |
4 |
4 |
14 |
13 |
- |
- % |
1 |
8 % |
|||||||||||||
|
Total Sirius XM cost of services |
674 |
661 |
2,689 |
2,641 |
13 |
2 % |
48 |
2 % |
|||||||||||||
|
Pandora and Off-platform: |
|||||||||||||||||||||
|
Revenue share and royalties |
331 |
330 |
1,292 |
1,250 |
1 |
- % |
42 |
3 % |
|||||||||||||
|
Programming and content |
19 |
18 |
66 |
56 |
1 |
6 % |
10 |
18 % |
|||||||||||||
|
Customer service and billing |
20 |
19 |
83 |
82 |
1 |
5 % |
1 |
1 % |
|||||||||||||
|
Transmission |
8 |
14 |
34 |
55 |
(6) |
(43)% |
(21) |
(38)% |
|||||||||||||
|
Total Pandora and Off-platform cost of |
378 |
381 |
1,475 |
1,443 |
(3) |
(1)% |
32 |
2 % |
|||||||||||||
|
services |
|||||||||||||||||||||
|
Total consolidated cost of services |
1,052 |
1,042 |
4,164 |
4,084 |
10 |
1 % |
80 |
2 % |
|||||||||||||
|
Subscriber acquisition costs |
89 |
85 |
359 |
352 |
4 |
5 % |
7 |
2 % |
|||||||||||||
|
Sales and marketing |
239 |
224 |
886 |
1,023 |
15 |
7 % |
(137) |
(13)% |
|||||||||||||
|
Engineering, design and development |
75 |
64 |
276 |
246 |
11 |
17 % |
30 |
12 % |
|||||||||||||
|
General and administrative |
117 |
126 |
478 |
465 |
(9) |
(7)% |
13 |
3 % |
|||||||||||||
|
Depreciation and amortization |
149 |
132 |
554 |
536 |
17 |
13 % |
18 |
3 % |
|||||||||||||
|
Impairment, restructuring and acquisition costs |
26 |
(6) |
82 |
64 |
32 |
nm |
18 |
nm |
|||||||||||||
|
Legal settlements and reserves |
- |
- |
24 |
- |
- |
nm |
24 |
nm |
|||||||||||||
|
Share-based payment expense (1) |
50 |
54 |
184 |
197 |
(4) |
(7)% |
(13) |
(7)% |
|||||||||||||
|
Total operating expenses |
1,797 |
1,721 |
7,007 |
6,967 |
76 |
4 % |
40 |
1 % |
|||||||||||||
|
Income from operations |
490 |
562 |
1,946 |
2,036 |
(72) |
(13)% |
(90) |
(4)% |
|||||||||||||
|
Other (expense) income: |
|||||||||||||||||||||
|
Interest expense |
(103) |
(108) |
(423) |
(422) |
(5) |
(5)% |
1 |
- % |
|||||||||||||
|
Other (expense) income |
(5) |
(4) |
(5) |
(9) |
1 |
(25)% |
(4) |
(44)% |
|||||||||||||
|
Total other expense |
(108) |
(112) |
(428) |
(431) |
(4) |
(4)% |
(3) |
(1)% |
|||||||||||||
|
Income before income taxes |
382 |
450 |
1,518 |
1,605 |
(68) |
(15)% |
(87) |
(5)% |
|||||||||||||
|
Income tax expense |
(30) |
(85) |
(260) |
(392) |
(55) |
(65)% |
(132) |
(34)% |
|||||||||||||
|
Net income |
$ |
352 |
$ |
365 |
$ |
1,258 |
$ |
1,213 |
$ |
(13) |
(4)% |
$ |
45 |
4 % |
|||||||
|
Adjusted EBITDA |
$ |
715 |
$ |
742 |
$ |
2,790 |
$ |
2,833 |
$ |
(27) |
(4)% |
$ |
(43) |
(2)% |
|||||||
|
Gross Profit - Sirius XM |
$ |
1,042 |
$ |
1,062 |
$ |
4,151 |
$ |
4,264 |
$ |
(20) |
(2)% |
$ |
(113) |
(3)% |
|||||||
|
Gross Margin % - Sirius XM |
61 % |
62 % |
61 % |
62 % |
(1)% |
(2)% |
(1)% |
(2)% |
|||||||||||||
|
Gross Profit - Pandora and Off-platform |
$ |
193 |
$ |
179 |
$ |
638 |
$ |
655 |
$ |
14 |
8 % |
$ |
(17) |
(3)% |
|||||||
|
Gross Margin % - Pandora and Off-platform |
34 % |
32 % |
30 % |
31 % |
2 % |
6 % |
(1)% |
(3)% |
nm - not meaningful
|
(1) |
Allocation of share-based payment expense: |
|||||||||||
|
For the Three Months Ended December 31, |
For the Twelve Months Ended December 31, |
|||||||||||
|
(in millions) |
2023 |
2022 |
2023 |
2022 |
||||||||
|
Programming and content - Sirius XM |
$ |
9 |
$ |
8 |
$ |
31 |
$ |
32 |
||||
|
Customer service and billing - Sirius XM |
1 |
2 |
5 |
6 |
||||||||
|
Transmission - Sirius XM |
1 |
1 |
5 |
5 |
||||||||
|
Programming and content - Pandora and Off-platform |
1 |
1 |
3 |
2 |
||||||||
|
Transmission - Pandora and Off-platform |
1 |
- |
1 |
1 |
||||||||
|
Sales and marketing |
12 |
14 |
45 |
52 |
||||||||
|
Engineering, design and development |
13 |
12 |
46 |
39 |
||||||||
|
General and administrative |
12 |
16 |
48 |
60 |
||||||||
|
Total share-based payment expense |
$ |
50 |
$ |
54 |
$ |
184 |
$ |
197 |
Key Financial and Operating Metrics
A full glossary defining our key financial and operating metrics can be found in our Annual Report on Form 10-K for the year ended December 31, 2023.
Subscribers and subscription related revenues and expenses associated with our connected vehicle services and Sirius XM Canada are not included in Sirius XM's subscriber count or subscriber-based operating metrics. Subscribers to Cloud Cover are not included in Pandora's subscriber count.
Set forth below are our subscriber balances as of December 31, 2023 compared to December 31, 2022:
|
As of December 31, |
2023 vs 2022 Change |
||||||
|
(subscribers in thousands) |
2023 |
2022 |
Amount |
% |
|||
|
Sirius XM |
|||||||
|
Self-pay subscribers |
31,942 |
32,387 |
(445) |
(1)% |
|||
|
Paid promotional subscribers |
1,933 |
1,918 |
15 |
1 % |
|||
|
Ending subscribers |
33,875 |
34,305 |
(430) |
(1)% |
|||
|
Sirius XM Canada subscribers |
2,629 |
2,567 |
62 |
2 % |
|||
|
Pandora and Off-platform |
|||||||
|
Monthly active users - all services |
46,026 |
47,638 |
(1,612) |
(3)% |
|||
|
Self-pay subscribers |
6,008 |
6,215 |
(207) |
(3)% |
|||
|
Paid promotional subscribers |
- |
- |
- |
nm |
|||
|
Ending subscribers |
6,008 |
6,215 |
(207) |
(3)% |
Attachments
Disclaimer
Sirius XM Holdings Inc. published this content on 31 January 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 01 February 2024 12:13:37 UTC.