SiriusXM Reports Second Quarter 2024 Operating and
Financial Results
- Second Quarter 2024 Revenue of $2.18 Billion
- Ad Revenue of $443 Million
- Net Income of $316 Million; Diluted EPS of $0.08
- Adjusted EBITDA of $702 Million
- Free Cash Flow of $343 Million
- Company Reiterates 2024 Financial Guidance
NEW YORK - August 1, 2024 - SiriusXM today announced second quarter 2024 operating and financial results, including revenue of $2.18 billion, a decrease of 3% compared to the second quarter of 2023. The company recorded net income of $316 million in the second quarter of 2024 compared to $310 million in the prior year's second quarter. Net income per diluted common share was $0.08 in both the second quarter of 2024 and the second quarter of 2023.
SiriusXM reported adjusted EBITDA of $702 million in the second quarter of 2024, an 8% improvement compared to the first quarter of 2024 and flat year-over-year. The sequential growth was driven by increased revenue and lower costs of services, engineering, design and development, and general and administrative expenses. The year-over- year stability resulted from lower subscriber revenue and higher sales and marketing costs, offset by reduced costs of services, personnel-related expenses, and general and administrative expenses. The company's adjusted EBITDA margin in the second quarter stood at 32%.
"As we approach the close of our transaction with Liberty Media, I am proud to report on our continued financial success," said Jennifer Witz, Chief Executive Officer. "We remain focused on delivering for our listeners and our investors, leveraging our position in audio to innovate and explore new avenues for growth. By pairing the unique voices and perspectives across music, sports, and politics from our unparalleled live programming with new features and subscription packages, we are poised to capitalize on the opportunities ahead."
"I am pleased with this quarter's performance, which reflects our dedication to strong operational and financial execution," said Tom Barry, Chief Financial Officer. "Our strategic investments in technology and automation continue to reduce costs, improve the efficiency of our teams, and enhance the customer experience. We expect to close the announced transaction with Liberty Media after the market closes on Monday, September 9th, and we continue to target long-run leverage of mid-to-low three times adjusted EBITDA." added Barry. "In the second quarter, SiriusXM delivered $103 million to stockholders through our regular quarterly dividend and ended the quarter with net debt to adjusted EBITDA of 3.2 times. We remain committed to driving long-term value for our stockholders."
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 Quarterly Report on Form 10-Q for the quarter ended June 30, 2024. The financial highlights below exclude the impact of share-based payment expense.
SiriusXM Second Quarter 2024 Segment Highlights
SiriusXM Total Subscribers of 33 Million
SiriusXM's self-pay subscribers decreased by approximately 100,000 in the second quarter of 2024, an improvement from the prior year results due to lower voluntary churn and higher automaker volumes, which were partially offset by higher vehicle-related churn and lower vehicle conversion rates and streaming net additions. Self- pay subscriber churn remained steady at 1.5%, consistent with the same period in 2023. Paid promotional subscribers declined by approximately 73,000 during the 2024 quarter, largely due to a shift towards unpaid trial subscriptions by certain automakers. The SiriusXM trial funnel stood at approximately 7.4 million at the end of the quarter, compared to 7.5 million at the end of both the first quarter of 2024 and the second quarter of 2023.
SiriusXM Revenue of $1.6 Billion
SiriusXM's total revenue for the second quarter was $1.6 billion, a decrease of 5% compared to the prior year period. The decline was due to a smaller average base of self-pay subscribers plus a $0.42 year-over-year decrease in average revenue per user (ARPU) in the second quarter of 2024. The decrease in ARPU was driven by an increase in subscribers on promotional and streaming-onlyself-pay subscription plans.
SiriusXM Gross Profit of $986 Million and Gross Margin of 60%
Total cost of services at SiriusXM decreased by 3% to $654 million for the second quarter of 2024 compared to the corresponding quarter in 2023. Gross profit at SiriusXM totaled $986 million, a decrease of 6% compared to the 2023 period, producing a margin of 60%, one percentage point lower than the prior year period.
Business and Programming Highlights
SiriusXM continued to deliver new programming and product enhancements for listeners. In addition to opening a state-of-the-art studio in Las Vegas, new channel launches with Chris Stapleton and Avicii highlight SiriusXM's depth of exclusive music programming. The launch of the podcast "Where Everybody Knows Your Name with Ted Danson and Woody Harrelson (sometimes)" and a new exclusive podcast monetization agreement with Dale Earnhardt Jr.'s Dirty Mo Media further bolstered the company's extensive podcast network. The company continues to lean into its unique live programming opportunities, capitalizing on major events from politics to sports, giving listeners up-to-the-minute news and analysis. It is also expanding its broader podcast slate and finding new ways to weave off-platform opportunities with major hits such as "SmartLess," launching with SiriusXM this month, featuring exclusives for its core on-platform subscriber base.
Additionally, alongside the ongoing development and expansion of SiriusXM streaming, the company introduced SiriusXM Free Access in the car this quarter. This free, ad-supported version of the service features limited music and talk channels and is available in select vehicles, showcasing new ways the company is engaging with potential subscribers.
Pandora and Off-Platform Second Quarter 2024 Segment Highlights
Pandora and Off-PlatformSelf-Pay Subscribers of 6.0 Million
Self-pay subscribers of the Pandora Plus and Pandora Premium services decreased by 41,000 during the second quarter of 2024 to end the period at 6.0 million.
Pandora and Off-Platform Revenue of $538 Million
Pandora and Off-Platform revenue reached $538 million in the second quarter of 2024, a 2% increase, or $10 million, compared to $528 million in the same period last year. Advertising revenue remained steady at $400 million compared to the second quarter of 2023, and increased 10% compared to the first quarter of 2024. As programmatic revenue remains a strong growth channel, the company announced a new agreement with The Trade Desk to adopt industry identity solution Unified ID 2.0, which is expected to unlock greater programmatic capabilities in the future.
Pandora and Off-Platform Gross Profit of $180 Million
Total cost of services were $358 million in the second quarter of 2024, a 5% decrease compared to $376 million in the same period of 2023. Subscriber revenue reached $138 million in the 2024 second quarter, an 8% year-over- year increase, while advertising revenue of $400 million remained flat compared to the 2023 period. This led to a gross profit of $180 million for the Pandora and Off-Platform segment in the second quarter of 2024, an 18%
increase from the previous year. The gross margin improved to 33%, up by 4 percentage points from the prior year period.
ADDITIONAL FINANCIAL HIGHLIGHTS
Subscriber acquisition costs decreased to $92 million in the second quarter of 2024. Sales and marketing expenses increased by 4% to $217 million, up from $209 million in the same period in 2023. In contrast, engineering, design, and development costs fell by 17% to $60 million. General and administrative expenses also saw a significant reduction, decreasing by 23% to $95 million, driven by ongoing cost optimization and efficiency efforts. The company saved approximately $50 million through cost optimization and consolidation efforts across its businesses and is on target to meet the anticipated $200 million in cost savings for the full year 2024.
SiriusXM generated $343 million in free cash flow during the second quarter of 2024, a 6% increase from the $323 million recorded in the same quarter of the previous year. The increase was mainly due to lower cash taxes paid due to the benefits from the company's tax equity investments, and timing of other payments, partially offset by higher capital expenditures and lower cash receipts.
2024 FULL-YEAR FINANCIAL GUIDANCE
The company reiterated 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 transaction with Liberty Media. Assuming satisfaction of all conditions to closing, that transaction is expected to be completed after the close of business on Monday, September 9, 2024. The company 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 transaction with Liberty Media and incremental interest expense associated with debt being assumed and incurred in connection with the transaction.
SECOND QUARTER 2024 RESULTS
SIRIUS XM HOLDINGS INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(UNAUDITED)
|
For the Three Months Ended June 30, |
For the Six Months Ended June 30, |
||||||||||
|
(in millions, except per share data) |
2024 |
2023 |
2024 |
2023 |
|||||||
|
Revenue: |
|||||||||||
|
Subscriber revenue |
$ |
1,658 |
$ |
1,725 |
$ |
3,338 |
$ |
3,417 |
|||
|
Advertising revenue |
443 |
445 |
845 |
819 |
|||||||
|
Equipment revenue |
47 |
47 |
97 |
93 |
|||||||
|
Other revenue |
30 |
33 |
60 |
65 |
|||||||
|
Total revenue |
2,178 |
2,250 |
4,340 |
4,394 |
|||||||
|
Operating expenses: |
|||||||||||
|
Cost of services: |
|||||||||||
|
Revenue share and royalties |
708 |
732 |
1,411 |
1,432 |
|||||||
|
Programming and content |
148 |
153 |
305 |
303 |
|||||||
|
Customer service and billing |
108 |
123 |
224 |
246 |
|||||||
|
Transmission |
57 |
50 |
115 |
99 |
|||||||
|
Cost of equipment |
2 |
3 |
5 |
7 |
|||||||
|
Subscriber acquisition costs |
92 |
93 |
182 |
183 |
|||||||
|
Sales and marketing |
228 |
220 |
457 |
443 |
|||||||
|
Engineering, design and development |
71 |
83 |
157 |
162 |
|||||||
|
General and administrative |
108 |
157 |
223 |
303 |
|||||||
|
Depreciation and amortization |
133 |
139 |
273 |
275 |
|||||||
|
Impairment, restructuring and acquisition costs |
18 |
18 |
46 |
50 |
|||||||
|
Total operating expenses |
1,673 |
1,771 |
3,398 |
3,503 |
|||||||
|
Income from operations |
505 |
479 |
942 |
891 |
|||||||
|
Other (expense) income: |
|||||||||||
|
Interest expense |
(102) |
(107) |
(206) |
(213) |
|||||||
|
Other income |
2 |
- |
14 |
3 |
|||||||
|
Total other expense |
(100) |
(107) |
(192) |
(210) |
|||||||
|
Income before income taxes |
405 |
372 |
750 |
681 |
|||||||
|
Income tax expense |
(89) |
(62) |
(168) |
(138) |
|||||||
|
Net income |
$ |
316 |
$ |
310 |
$ |
582 |
$ |
543 |
|||
|
Foreign currency translation adjustment, net of |
|||||||||||
|
(3) |
7 |
(10) |
7 |
||||||||
|
tax |
|||||||||||
|
Total comprehensive income |
$ |
313 |
$ |
317 |
$ |
572 |
$ |
550 |
|||
|
Net income per common share: |
|||||||||||
|
Basic |
$ |
0.08 |
$ |
0.08 |
$ |
0.15 |
$ |
0.14 |
|||
|
Diluted |
|||||||||||
|
$ |
0.08 |
$ |
0.08 |
$ |
0.15 |
$ |
0.14 |
||||
|
Weighted average common shares outstanding: |
|||||||||||
|
Basic |
3,848 |
3,861 |
3,846 |
3,875 |
|||||||
|
Diluted |
|||||||||||
|
3,855 |
3,873 |
3,858 |
3,892 |
||||||||
|
Dividends declared per common share |
|||||||||||
|
$ |
0.0266 |
$ |
0.0242 |
$ |
0.0532 |
$ |
0.0484 |
||||
SIRIUS XM HOLDINGS INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
|
(in millions, except per share data) |
June 30, 2024 |
December 31, 2023 |
|||
|
ASSETS |
(unaudited) |
||||
|
Current assets: |
|||||
|
Cash and cash equivalents |
$ |
100 |
$ |
216 |
|
|
Receivables, net |
644 |
709 |
|||
|
Related party current assets |
32 |
36 |
|||
|
Prepaid expenses and other current assets |
324 |
310 |
|||
|
Total current assets |
1,100 |
1,271 |
|||
|
Property and equipment, net |
1,874 |
1,754 |
|||
|
Intangible assets, net |
2,864 |
2,905 |
|||
|
Goodwill |
3,249 |
3,249 |
|||
|
Equity method investments |
1,426 |
526 |
|||
|
Deferred tax assets |
155 |
155 |
|||
|
Operating lease right-of-use assets |
283 |
279 |
|||
|
Other long-term assets |
234 |
235 |
|||
|
Total assets |
$ |
11,185 |
$ |
10,374 |
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) |
|||||
|
Current liabilities: |
|
|
Accounts payable and accrued expenses |
$ |
|
Accrued interest |
|
|
Current portion of deferred revenue |
|
|
Current maturities of debt |
|
|
Operating lease current liabilities |
|
|
Related party current liabilities |
|
|
Total current liabilities |
|
|
Long-term deferred revenue |
|
|
Long-term debt |
|
|
Deferred tax liabilities |
|
|
Operating lease liabilities |
|
|
Other long-term liabilities |
|
|
Total liabilities |
|
|
Stockholders' equity (deficit): |
|
|
Common stock, par value $0.001 per share; 9,000 shares authorized; 3,851 and 3,843 |
|
|
shares issued and outstanding at June 30, 2024 and December 31, 2023, respectively |
|
|
Accumulated other comprehensive (loss) income, net of tax |
|
|
Accumulated deficit |
|
|
Total stockholders' equity (deficit) |
|
|
Total liabilities and stockholders' equity (deficit) |
$ |
|
1,118 |
$ |
1,306 |
|
167 |
166 |
|
|
1,128 |
1,195 |
|
|
5 |
505 |
|
|
45 |
46 |
|
|
95 |
8 |
|
|
2,558 |
3,226 |
|
|
83 |
88 |
|
|
9,044 |
8,690 |
|
|
479 |
509 |
|
|
296 |
292 |
|
|
838 |
134 |
|
|
13,298 |
12,939 |
|
|
4 |
4 |
|
|
(7) |
3 |
|
|
(2,110) |
(2,572) |
|
|
(2,113) |
(2,565) |
|
|
11,185 |
$ |
10,374 |
SIRIUS XM HOLDINGS INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
|
For The Six Months Ended June 30, |
|||||
|
(in millions) |
2024 |
2023 |
|||
|
Cash flows from operating activities: |
|||||
|
Net income |
$ |
582 |
$ |
543 |
|
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|||||
|
Depreciation and amortization |
273 |
275 |
|||
|
Non-cash impairment and restructuring costs |
1 |
20 |
|||
|
Non-cash interest expense, net of amortization of premium |
8 |
7 |
|||
|
Provision for doubtful accounts |
26 |
31 |
|||
|
Loss on unconsolidated entity investments, net |
57 |
4 |
|||
|
Gain on other investments |
(5) |
(5) |
|||
|
Share-based payment expense |
91 |
87 |
|||
|
Deferred income tax benefit |
(22) |
(94) |
|||
|
Amortization of right-of-use assets |
24 |
21 |
|||
|
Changes in operating assets and liabilities: |
|||||
|
Receivables |
39 |
(36) |
|||
|
Related party, net |
4 |
17 |
|||
|
Prepaid expenses and other current assets |
(14) |
(15) |
|||
|
Other long-term assets |
- |
(1) |
|||
|
Accounts payable and accrued expenses |
(179) |
(18) |
|||
|
Accrued interest |
1 |
- |
|||
|
Deferred revenue |
(71) |
(40) |
|||
|
Operating lease liabilities |
(25) |
(25) |
|||
|
Other long-term liabilities |
32 |
30 |
|||
|
Net cash provided by operating activities |
822 |
801 |
|||
|
Cash flows from investing activities: |
|||||
|
Additions to property and equipment |
(347) |
(333) |
|||
|
Purchase of other investments |
- |
(1) |
|||
|
Investments in related parties and other equity investees |
(210) |
(31) |
|||
|
Net cash used in investing activities |
(557) |
(365) |
|||
|
Cash flows from financing activities: |
|||||
|
Taxes paid from net share settlements for stock-based compensation |
(20) |
(18) |
|||
|
Revolving credit facility borrowings |
1,352 |
1,117 |
|||
|
Revolving credit facility repayments |
(1,002) |
(974) |
|||
|
Principal payments of long-term borrowings |
(505) |
(177) |
|||
|
Payment of contingent consideration for business acquisition |
(1) |
(3) |
|||
|
Common stock repurchased and retired |
- |
(199) |
|||
|
Dividends paid |
(205) |
(188) |
|||
|
Net cash used in financing activities |
(381) |
(442) |
|||
|
Net decrease in cash, cash equivalents and restricted cash |
(116) |
(6) |
|||
|
Cash, cash equivalents and restricted cash at beginning of period (1) |
224 |
65 |
|||
|
Cash, cash equivalents and restricted cash at end of period (1) |
$ |
108 |
$ |
59 |
|
- 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) |
June 30, 2024 |
December 31, 2023 |
June 30, 2023 |
December 31, 2022 |
|||||||
|
Cash and cash equivalents |
$ |
100 |
$ |
216 |
$ |
51 |
$ |
57 |
|||
|
Restricted cash included in Other long-term assets |
8 |
8 |
8 |
8 |
|||||||
|
Total cash, cash equivalents and restricted cash at end of period |
$ |
108 |
$ |
224 |
$ |
59 |
$ |
65 |
|||
Unaudited Results
Set forth below are our results of operations for the three and six months ended June 30, 2024 compared with the three and six months ended June 30, 2023. 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 Six Months |
2024 vs 2023 Change |
|||||||||||||||||||
|
Ended June 30, |
Ended June 30, |
Three Months |
Six Months |
||||||||||||||||||
|
(in millions) |
2024 |
2023 |
2024 |
2023 |
Amount |
% |
Amount |
% |
|||||||||||||
|
Revenue |
|||||||||||||||||||||
|
Sirius XM: |
|||||||||||||||||||||
|
Subscriber revenue |
$ |
1,520 |
$ |
1,597 |
$ |
3,067 |
$ |
3,160 |
$ |
(77) |
(5)% |
$ |
(93) |
(3)% |
|||||||
|
Advertising revenue |
43 |
45 |
83 |
85 |
(2) |
(4)% |
(2) |
(2)% |
|||||||||||||
|
Equipment revenue |
47 |
47 |
97 |
93 |
- |
- % |
4 |
4 % |
|||||||||||||
|
Other revenue |
30 |
33 |
60 |
65 |
(3) |
(9)% |
(5) |
(8)% |
|||||||||||||
|
Total Sirius XM revenue |
1,640 |
1,722 |
3,307 |
3,403 |
(82) |
(5)% |
(96) |
(3)% |
|||||||||||||
|
Pandora and Off-platform: |
|||||||||||||||||||||
|
Subscriber revenue |
138 |
128 |
271 |
257 |
10 |
8 % |
14 |
5 % |
|||||||||||||
|
Advertising revenue |
400 |
400 |
762 |
734 |
- |
- % |
28 |
4 % |
|||||||||||||
|
Total Pandora and Off-platform revenue |
538 |
528 |
1,033 |
991 |
10 |
2 % |
42 |
4 % |
|||||||||||||
|
Total consolidated revenue |
2,178 |
2,250 |
4,340 |
4,394 |
(72) |
(3)% |
(54) |
(1)% |
|||||||||||||
|
Cost of services |
|||||||||||||||||||||
|
Sirius XM: |
|||||||||||||||||||||
|
Revenue share and royalties |
391 |
405 |
786 |
796 |
(14) |
(3)% |
(10) |
(1)% |
|||||||||||||
|
Programming and content |
127 |
128 |
260 |
257 |
(1) |
(1)% |
3 |
1 % |
|||||||||||||
|
Customer service and billing |
86 |
99 |
182 |
200 |
(13) |
(13)% |
(18) |
(9)% |
|||||||||||||
|
Transmission |
48 |
40 |
96 |
80 |
8 |
20 % |
16 |
20 % |
|||||||||||||
|
Cost of equipment |
2 |
3 |
5 |
7 |
(1) |
(33)% |
(2) |
(29)% |
|||||||||||||
|
Total Sirius XM cost of services |
654 |
675 |
1,329 |
1,340 |
(21) |
(3)% |
(11) |
(1)% |
|||||||||||||
|
Pandora and Off-platform: |
|||||||||||||||||||||
|
Revenue share and royalties |
317 |
327 |
625 |
636 |
(10) |
(3)% |
(11) |
(2)% |
|||||||||||||
|
Programming and content |
12 |
17 |
28 |
31 |
(5) |
(29)% |
(3) |
(10)% |
|||||||||||||
|
Customer service and billing |
21 |
23 |
40 |
43 |
(2) |
(9)% |
(3) |
(7)% |
|||||||||||||
|
Transmission |
8 |
9 |
16 |
17 |
(1) |
(11)% |
(1) |
(6)% |
|||||||||||||
|
Total Pandora and Off-platform cost of |
358 |
376 |
709 |
727 |
(18) |
(5)% |
(18) |
(2)% |
|||||||||||||
|
services |
|||||||||||||||||||||
|
Total consolidated cost of services |
1,012 |
1,051 |
2,038 |
2,067 |
(39) |
(4)% |
(29) |
(1)% |
|||||||||||||
|
Subscriber acquisition costs |
92 |
93 |
182 |
183 |
(1) |
(1)% |
(1) |
(1)% |
|||||||||||||
|
Sales and marketing |
217 |
209 |
434 |
423 |
8 |
4 % |
11 |
3 % |
|||||||||||||
|
Engineering, design and development |
60 |
72 |
134 |
140 |
(12) |
(17)% |
(6) |
(4)% |
|||||||||||||
|
General and administrative |
95 |
123 |
200 |
254 |
(28) |
(23)% |
(54) |
(21)% |
|||||||||||||
|
Depreciation and amortization |
133 |
139 |
273 |
275 |
(6) |
(4)% |
(2) |
(1)% |
|||||||||||||
|
Impairment, restructuring and acquisition costs |
18 |
18 |
46 |
50 |
- |
- % |
(4) |
(8)% |
|||||||||||||
|
Legal settlements and reserves |
- |
24 |
- |
24 |
(24) |
(100)% |
(24) |
(100)% |
|||||||||||||
|
Share-based payment expense (1) |
46 |
42 |
91 |
87 |
4 |
10 % |
4 |
5 % |
|||||||||||||
|
Total operating expenses |
1,673 |
1,771 |
3,398 |
3,503 |
(98) |
(6)% |
(105) |
(3)% |
|||||||||||||
|
Income from operations |
505 |
479 |
942 |
891 |
26 |
5 % |
51 |
6 % |
|||||||||||||
|
Other (expense) income: |
|||||||||||||||||||||
|
Interest expense |
(102) |
(107) |
(206) |
(213) |
(5) |
(5)% |
(7) |
(3)% |
|||||||||||||
|
Other income |
2 |
- |
14 |
3 |
2 |
nm |
(11) |
(367)% |
|||||||||||||
|
Total other expense |
(100) |
(107) |
(192) |
(210) |
(7) |
(7)% |
(18) |
(9)% |
|||||||||||||
|
Income before income taxes |
405 |
372 |
750 |
681 |
33 |
9 % |
69 |
10 % |
|||||||||||||
|
Income tax expense |
(89) |
(62) |
(168) |
(138) |
27 |
44 % |
30 |
22 % |
|||||||||||||
|
Net income |
$ |
316 |
$ |
310 |
$ |
582 |
$ |
543 |
$ |
6 |
2 % |
$ |
39 |
7 % |
|||||||
|
Adjusted EBITDA |
$ |
702 |
$ |
702 |
$ |
1,352 |
$ |
1,327 |
$ |
- |
- % |
$ |
25 |
2 % |
|||||||
|
Gross Profit - Sirius XM |
$ |
986 |
$ |
1,047 |
$ |
1,978 |
$ |
2,063 |
$ |
(61) |
(6)% |
$ |
(85) |
(4)% |
|||||||
|
Gross Margin % - Sirius XM |
60 % |
61 % |
60 % |
61 % |
(1)% |
(2)% |
(1)% |
(2)% |
|||||||||||||
|
Gross Profit - Pandora and Off-platform |
$ |
180 |
$ |
152 |
$ |
324 |
$ |
264 |
$ |
28 |
18 % |
$ |
60 |
23 % |
|||||||
|
Gross Margin % - Pandora and Off-platform |
33 % |
29 % |
31 % |
27 % |
4 % |
14 % |
4 % |
15 % |
nm - not meaningful
|
(1) |
Allocation of share-based payment expense: |
|||||||||||
|
For the Three Months Ended June 30, |
For the Six Months Ended June 30, |
|||||||||||
|
(in millions) |
2024 |
2023 |
2024 |
2023 |
||||||||
|
Programming and content - Sirius XM |
$ |
8 |
$ |
7 |
$ |
15 |
$ |
14 |
||||
|
Customer service and billing - Sirius XM |
1 |
1 |
2 |
3 |
||||||||
|
Transmission - Sirius XM |
1 |
1 |
3 |
2 |
||||||||
|
Programming and content - Pandora and Off-platform |
1 |
1 |
2 |
1 |
||||||||
|
Sales and marketing |
11 |
11 |
23 |
20 |
||||||||
|
Engineering, design and development |
11 |
11 |
23 |
22 |
||||||||
|
General and administrative |
13 |
10 |
23 |
25 |
||||||||
|
Total share-based payment expense |
$ |
46 |
$ |
42 |
$ |
91 |
$ |
87 |
Key Financial and Operating Metrics
A full glossary defining our key financial and operating metrics can be found in our Quarterly Report on Form 10-Q for the quarter ended June 30, 2024.
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 the Cloud Cover music programming service are now included in Pandora's subscriber count.
Set forth below are our subscriber balances as of June 30, 2024 compared to June 30, 2023:
|
As of June 30, |
2024 vs 2023 Change |
|||||||
|
(subscribers in thousands) |
2024 |
2023 |
Amount |
% |
||||
|
Sirius XM |
||||||||
|
Self-pay subscribers |
31,484 |
31,907 |
(423) |
(1)% |
||||
|
Paid promotional subscribers |
1,773 |
2,156 |
(383) |
(18)% |
||||
|
Ending subscribers |
33,257 |
34,063 |
(806) |
(2)% |
||||
|
Sirius XM Canada subscribers |
2,586 |
2,628 |
(42) |
(2)% |
||||
|
Pandora and Off-platform |
||||||||
|
Monthly active users - all services |
45,129 |
47,419 |
(2,290) |
(5)% |
||||
|
Self-pay subscribers (1) |
5,951 |
6,270 |
(319) |
(5)% |
- Pandora Self-pay subscribers includes Cloud Cover subscribers of 51 and 41 as of June 30, 2024 and 2023, respectively.
The following table contains our Non-GAAP financial and operating performance measures which are based on our adjusted results of operations for the three and six months ended June 30, 2024 and 2023:
(subscribers in thousands)
Sirius XM
Self-pay subscribers
Paid promotional subscribers Net additions
Weighted average number of subscribers
Average self-pay monthly churn ARPU (1)
SAC, per installation
Pandora and Off-platform
Self-pay subscribers (2) Net additions
Weighted average number of subscribers
Ad supported listener hours (in billions)
Advertising revenue per thousand listener hours (RPM)
Total Company
Adjusted EBITDA
Free cash flow
nm - not meaningful
|
For the Three Months |
For the Six Months |
2024 vs 2023 Change |
||||||||||||||||||
|
Ended June 30, |
Ended June 30, |
Three Months |
Six Months |
|||||||||||||||||
|
2024 |
2023 |
2024 |
2023 |
Amount |
% |
Amount |
% |
|||||||||||||
|
(100) |
(132) |
(458) |
(479) |
32 |
24 % |
21 |
4 % |
|||||||||||||
|
(73) |
171 |
(160) |
237 |
(244) |
(143)% |
(397) |
(168)% |
|||||||||||||
|
(173) |
39 |
(618) |
(242) |
(212) |
(544)% |
(376) |
(155)% |
|||||||||||||
|
33,290 |
34,016 |
33,419 |
34,065 |
(726) |
(2)% |
(646) |
(2)% |
|||||||||||||
|
1.5 % |
1.5 % |
1.6 % |
1.6 % |
- % |
- % |
- % |
- % |
|||||||||||||
|
$ |
15.24 |
$ |
15.66 |
$ |
15.30 |
$ |
15.47 |
$ |
(0.42) |
(3)% |
$ |
(0.17) |
(1)% |
|||||||
|
$ |
13.85 |
$ |
13.73 |
$ |
13.20 |
$ |
14.05 |
$ |
0.12 |
1 % |
$ |
(0.85) |
(6)% |
|||||||
|
(41) |
8 |
(102) |
18 |
(49) |
(613)% |
(120) |
(667)% |
|||||||||||||
|
(41) |
8 |
(102) |
18 |
(49) |
(613)% |
(120) |
(667)% |
|||||||||||||
|
5,944 |
6,195 |
5,971 |
6,199 |
(251) |
(4)% |
(228) |
(4)% |
|||||||||||||
|
2.60 |
2.73 |
5.08 |
5.31 |
(0.13) |
(5)% |
(0.23) |
(4)% |
|||||||||||||
|
$ |
98.99 |
$ |
97.13 |
$ |
95.03 |
$ |
91.28 |
$ |
1.86 |
2 % |
$ |
3.75 |
4 % |
|||||||
|
$ |
702 |
$ |
702 |
$ |
1,352 |
$ |
1,327 |
$ |
- |
- % |
$ |
25 |
2 % |
|||||||
|
$ |
343 |
$ |
323 |
$ |
475 |
$ |
467 |
$ |
20 |
6 % |
$ |
8 |
2 % |
- ARPU for Sirius XM excludes subscriber revenue from our connected vehicle services of $41 and $43 for the three months ended June 30, 2024 and 2023, respectively, and $82 for each of the six months ended June 30, 2024 and 2023.
- Pandora and Off-platformself-pay subscriber net additions includes Cloud Cover net additions of 3 and 1 for the three months ended June 30, 2024 and 2023, respectively, and 6 and 4 for the six months ended June 30, 2024 and 2023, respectively.
Attachments
Disclaimer
Sirius XM Holdings Inc. published this content on 01 August 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 01 August 2024 11:00:31 UTC.