Summary of Sirius XM Holdings Inc. Conference Call Company Overview - **Company**: Sirius XM Holdings Inc. (NASDAQ: SIRI) - **Event**: Morgan Stanley Technology, Media & Telecom Conference - **Date**: March 7, 2023 Key Points Industry and Market Position - Sirius XM has 32 million self-pay subscribers, primarily generated from the automotive sector, maintaining a dominant position in-car audio services, surpassing all AM/FM combined services [3][4] - The company is targeting a market of approximately 50 million to 55 million adults in the U.S. who are highly engaged in audio but currently underserved by Sirius XM's offerings [5] Growth Opportunities - **Subscriber Growth**: The primary growth opportunity lies in increasing the subscriber base, particularly in the automotive sector, which is expected to recover in the latter half of 2023 [3][6] - **Product and Technology Investments**: Investments are being made to enhance product offerings and technology infrastructure to improve demand and retention [6] - **Podcasting**: There is significant potential for growth in podcasting, with efforts to improve monetization over time [6] Financial Guidance and Challenges - Revenue is expected to remain relatively flat year-on-year due to headwinds, particularly in advertising sales, which saw a 3% decline in Q4 2022 [8][11] - The company anticipates modestly negative subscriber growth in Q1 2023, with expectations for improvement in subsequent quarters [11] - Average Revenue Per User (ARPU) is undergoing a rate increase, which is expected to impact revenue positively later in the year [10][11] Cost Management - Sirius XM has reduced its workforce by approximately 8% as part of a broader cost management strategy to address advertising headwinds and delayed auto sales recovery [25][26] - The company is focusing on improving operational efficiency and has cut back on discretionary spending, including marketing and new content investments [27][28] Streaming and Consumer Engagement - The company is revamping its streaming product to enhance user experience and personalization, with a consumer app relaunch expected in Q4 2023 [14][20] - Sirius XM aims to be agnostic in how consumers access its services, whether through in-car systems or standalone streaming subscriptions [22] Automotive Partnerships - The penetration rate of Sirius XM in new cars is around 82-83%, with ongoing discussions with OEMs to increase this further [32] - The company is also focusing on improving trial starts and conversion rates in the used car market, which presents unique challenges due to its fragmented nature [34][36] Churn and Retention - The company has maintained a low churn rate of around 1.5-1.6%, attributed to better retention strategies and increased engagement with non-music content [40][41] Future Outlook - The company expects to maintain gross margins in the low 50s despite rising royalty costs [49] - Sirius XM is cautious about capital returns in the current macro environment, with a focus on maintaining flexibility in its financial strategy [53] Conclusion - Sirius XM is strategically positioned to leverage its automotive dominance and expand its subscriber base through enhanced product offerings and targeted marketing efforts, while navigating current financial headwinds and operational challenges [3][6][25]

Sirius XM Holdings Inc. (NASDAQ:SIRI) Deutsche Bank 31st Annual Media, Internet & Telecom Conference February 28, 2023 2:40 PM ET Company Participants Sean Sullivan - CFO Conference Call Participants Bryan Kraft - Deutsche Bank Bryan Kraft All right. Thanks, everyone, for coming. Really happy to introduce Sean Sullivan, who is the CFO of SiriusXM. Sean, thanks for joining us. Sean Sullivan Thanks, Bryan. Thanks for having me. Question-and-Answer Session Q - Bryan Kraft Why don't we just maybe start off with ...

Financial Data and Key Metrics - SiriusXM achieved record high EBITDA of over $2.8 billion and revenue of $9 billion in 2022, with 348,000 Self-Pay net additions [5] - Adjusted EBITDA grew 2% from $2.77 billion in 2021 to $2.83 billion in 2022, while free cash flow was $1.55 billion, up from $1.39 billion in 2021 [22] - Q4 2022 revenue remained flat at $2.28 billion, with subscription revenue increasing while advertising revenue declined 3% to $480 million [22] - Net income for Q4 2022 rose 15% to $365 million, or $0.09 per diluted share, and free cash flow reached $529 million, up 10% YoY [23] Business Line Performance - SiriusXM segment revenue grew 4.2% to $6.9 billion in 2022, driven by 6% ARPU growth, while gross profit increased 6% to nearly $4.3 billion, with a margin of 62% [23] - Pandora and Off-Platform segment revenue increased 1% to $2.1 billion in 2022, with advertising revenue up 2%, but MAUs declined 9% to 47.6 million [24] - Non-Pandora ad revenue across the business climbed 24% in 2022 to $672 million, representing 38% of total ad business, driven by podcasting revenue [24] Market Performance - New and used car trial starts were down 3% and 7% sequentially in Q4 2022 due to soft auto industry sales and high vehicle prices [8] - Total new and used vehicle penetration rates were 83% and 53%, respectively, with over 150 million enabled vehicles on the road [13] - The 360L platform is now available in 20 OEM brands, with over 7 million 360L-enabled cars on the road, representing 27% of new SiriusXM-enabled vehicles in 2022 [13] Strategy and Industry Competition - SiriusXM is focusing on modernizing its technology platform and improving the streaming experience, with a relaunch of the SXM app expected in Q4 2023 [12] - The company is investing in content to attract younger, more diverse audiences, including original on-demand content and streaming-first talk, music, and video content [17] - Podcasting remains a growth opportunity, with five of the top 20 shows in Edison Research's top 50 podcast rankings, driving a 34% increase in Off-Platform business revenue in 2022 [19] Management Commentary on Operating Environment and Outlook - SiriusXM expects a softer first half of 2023 in terms of revenue, EBITDA, and subscriber growth due to economic uncertainty and reduced marketing spend [7] - The company anticipates modestly negative Self-Pay net adds for 2023, with a focus on cost reductions and efficiency improvements across the business [26] - Management remains confident in the company's ability to monetize its ad-supported portfolio and attract new audiences through improved product experiences [21] Other Important Information - SiriusXM returned approximately $2 billion to stockholders in 2022, including $1 billion in special dividends, $350 million in recurring dividends, and $639 million in share repurchases [25] - The company expects satellite CapEx to rise by over $200 million in 2023 due to the production of SXM 11 and 12 satellites, with non-satellite CapEx also increasing for strategic investments in product, engineering, and IT [28] Q&A Summary Question: Path to Positive Self-Pay Net Adds and Free Cash Flow Outlook - SiriusXM expects flat trial starts for the first nine months of 2023, with conversion rates for new and used cars expected to be in the low 30s and low 20s, respectively [34][37] - Free cash flow is expected to be a low point in 2023 due to increased CapEx and cash taxes, but the company anticipates improvements in future years as satellite CapEx moderates [38] Question: Economic Sensitivity and Podcast Advertising Opportunity - SiriusXM's subscriber base is largely more affluent, but the company has expanded into used cars, attracting younger and less affluent buyers [42] - Podcasting advertising is seen as a growth opportunity, with unique assets and cross-platform selling capabilities, though the market is still nascent and requires further investment [44][46] Question: Conversion Rates and Streaming Launch Details - Conversion rates have declined due to lower-end vehicle trends and younger buyers seeking more personalized listening experiences, which SiriusXM is addressing through 360L and app improvements [49][50] - The streaming relaunch in Q4 2023 will focus on improving the SiriusXM app with enhanced search, recommendations, and a new consumer-facing experience [52] Question: Advertising Market and Live Events Impact - The advertising market remains choppy, with podcasting being a bright spot, though competition from digital streaming audio companies is increasing [58][60] - Live events are a strategic part of SiriusXM's content experience, generating awareness and enhancing subscriber engagement, with no major renewals expected in 2023 [63][65] Question: Metrics to Watch Post-Streaming Relaunch - SiriusXM will focus on improving retention of streaming trialers through better engagement metrics, such as early engagement, content breadth, and personalized recommendations [69]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE FISCAL YEAR ENDED DECEMBER 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM __________ TO ________ COMMISSION FILE NUMBER 001-34295 SIRIUS XM HOLDINGS INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorpo ...

Sirius XM Holdings, Inc. (NASDAQ:SIRI) Q3 2022 Earnings Conference Call November 1, 2022 8:00 AM ET Company Participants Hooper Stevens - VP, IR & Finance Jennifer Witz - CEO & Director Sean Sullivan - EVP & CFO Conference Call Participants Benjamin Swinburne - Morgan Stanley Jessica Reif Ehrlich - Bank of America Merrill Lynch Bryan Kraft - Deutsche Bank Steven Cahall - Wells Fargo Securities Stephen Laszczyk - Goldman Sachs James Ratcliffe - Evercore ISI Hooper Stevens Thank you, and good morning, everyon ...

Sirius XM Holdings Inc. (NASDAQ:SIRI) Goldman Sachs Communacopia + Technology Conference September 12, 2022 7:30 PM ET Company Participants Sean Sullivan - Executive Vice President and Chief Financial Officer Conference Call Participants [Technical Difficulty] Sean Sullivan Thanks, Stephen. Good to be in person. Unidentified Analyst [Technical Difficulty] Sean Sullivan Sure. So the key – excuse me, you know, the key pillars that we've had, I guess, are pretty well articulated in the backdrop of the competit ...

Sirius XM Holdings Inc. (NASDAQ:SIRI) Bank of America Media, Communications & Entertainment Conference 2022 September 7, 2022 4:10 PM ET Company Participants Jennifer Witz - Chief Executive Officer, Conference Call Participants Jessica Reif Ehrlich - BofA Securities Jessica Reif Ehrlich [Call Starts Abruptly] have Jennifer Witz, CEO of Sirius XM with us for the first time. Jennifer Witz Thank you so much. So, very excited to have you. Jennifer Witz Thank you. So, Jennifer, you remain focused on driving ...

Sirius XM Holdings Inc. (NASDAQ:SIRI) Q2 2022 Earnings Conference Call July 28, 2022 8:00 AM ET Company Participants Hooper Stevens - Senior Vice President of Investor Relations & Finance Jennifer Witz - Chief Executive Officer Sean Sullivan - Chief Financial Officer Scott Greenstein - President & Chief Content Officer Conference Call Participants James Ratcliffe - Evercore ISI Jessica Reif Ehrlich - Bank of America Securities Kutgun Maral - RBC Capital Markets Barton Crockett - Rosenblatt Securities David ...