Sirius XM Reports Steady Growth In Advertising Revenue, Subscriber Numbers Dip

Sirius XM Holdings Inc (NASDAQ: SIRI) reported a fiscal first-quarter 2024 revenue growth of 1% year-on-year to $2.16 billion, beating the consensus of $2.13 billion. 

Adjusted EPS of 7 cents was in-line with the consensus. 

Subscriber revenue was $1.68 billion in the quarter, versus $1.69 billion a year ago. Advertising revenue grew by 7.2% Y/Y to $402 million.

For the year, SiriusXM self-pay subscribers decreased by 457,000 to 31.6 million total subscribers, a (1)% decline Y/Y.

The self-pay monthly churn remained at 1.7% for the first quarter of 2024, up from 1.6% in the first quarter of 2023, with the bulk of the increase attributable to vehicle-related churn. SiriusXM self-pay subscribers decreased by 359,000 in the first quarter of 2024.

SiriusXM segment revenue declined 1% Y/Y to $1.7 billion during the quarter, driven by a lower average base of self-pay subscribers. ARPU increased to $15.36 compared to the $15.29 Y/Y. SiriusXM segment gross margin remained relatively flat at 60% Y/Y.

Pandora segment advertising revenue increased 8% Y/Y to $362 million for the quarter. 

Monthly Active Users (MAUs) at Pandora were 45.02 million, down from 46.66 million in 2023. The total number of ad-supported listener hours was 2.49 billion in the first quarter of 2024, down from 2.59 billion Y/Y. 

The Pandora segment gross margin improved to 29% for the quarter from 24% a year ago, as the gross profit improved by 29% Y/Y.

The adjusted EBITDA increased by 4% Y/Y to $650 million.

Sirius generated $132 million in free cash flow in the quarter, down from $144 million in the prior year. It held $71 million in cash and equivalents as of March 31.

FY24 Outlook: Sirius XM reiterated revenue outlook of $8.75 billion, versus the consensus of $9.10 billion. It also maintained an adjusted EBITDA of $2.70 billion and free cash flow of $1.20 billion.

Sirius XM Holdings stock has dropped over 16% in the last 12 months. Investors can gain exposure to the stock via Procure Space ETF UFO and Exchange Traded Concepts Trust MUSQ Global Music Industry ETF MUSQ.

Price Action: SIRI shares were down 5.3% at $3.00 at last check Tuesday.

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