Curious about Sirius XM's big gains last month? Here's how a long-planned restructuring took its final step in October.Shares of Sirius XM Holdings (SIRI -6.22%) rose 12.7% in October 2024, according to data from S&P Global Market Intelligence. The embattled satellite radio giant reported earnings near the end of the month, but that wasn't the needle-moving event. Instead, the stock gained more than 18% in the first two weeks of last month thanks to the completion of a corporate reorganization.How Liberty ...

Sirius XM Holdings (SIRI) reported a third-quarter 2024 loss of 84 cents per share. The Zacks Consensus Estimate for earnings was pegged at 75 cents per share. The company reported earnings of 90 cents per share in the year-ago quarter.Total revenues, on a reported basis, declined 4.4% year over year to $2.17 billion and missed the consensus mark by 0.91%.In the reported quarter, Sirius XM completed its transaction with Liberty Media and emerged as a fully independent public company. The company is set to r ...

Investment Strategy - The individual follows value investing principles laid out by Benjamin Graham, Phil Fisher, Charlie Munger, and Warren Buffett [1] - The individual has developed a simple and practical way to structure an investment portfolio for early retirees, as outlined in the article "The Portfolio For Early Retirees" [1] - The individual strives to gather above-average knowledge about stock picks, which requires significant time investment [1] Achievements and Recognition - The individual won the Seeking Alpha Contrarian Contest in 2015 and was among the winners of several other competitions in later years [1] - The individual has been a regular contributor to Seeking Alpha Pro since its inception [1] Professional Background - The individual has a diverse professional background, including roles as a sales agent, project manager, translator, computer consultant, and software engineer [1] - The individual has built a house with their own hands and has published books and essays on literature, philosophy, and art [1] - The individual has written for various magazines in different countries [1] Portfolio Management - The individual has been managing a portfolio for friends and themselves since early retirement in 2004 [1] - The individual manages the portfolio full-time and focuses on in-depth research rather than frequent new investment ideas [1]

SIRIUS XM HOLDINGS INC. OCTOBER 31, 2024 1 THIRD QUARTER 2024 OPERATING AND FINANCIAL RESULTS | --- | --- ...

Core Viewpoint - Sirius XM reported a revenue decline of 4.4% year-over-year for the quarter ended September 2024, with an EPS of -$0.84 compared to $0.90 in the same quarter last year, indicating significant underperformance against analyst expectations [1]. Financial Performance - Revenue for the quarter was $2.17 billion, missing the Zacks Consensus Estimate of $2.19 billion by 0.91% [1]. - The EPS surprise was -212.00%, with the consensus EPS estimate being $0.75 [1]. Subscriber Metrics - Net additions of self-pay subscribers were 14, exceeding the estimated -5 [3]. - Ending subscribers for Pandora and Off-platform were 5,875, slightly above the estimate of 5,873 [3]. - Ending subscribers for Sirius XM were 33,156, below the estimate of 33,220 [3]. Average Revenue Per User (ARPU) - ARPU for Sirius XM was $15.16, slightly below the estimate of $15.24 [3]. Revenue Breakdown - Total revenue for Sirius XM was $1.63 billion, compared to the average estimate of $1.64 billion, representing a year-over-year decline of 5.5% [3]. - Total revenue for Pandora and Off-platform was $544 million, below the average estimate of $559.63 million, with a year-over-year change of -1.1% [3]. - Subscriber revenue for Sirius XM was $1.51 billion, compared to the estimate of $1.52 billion, reflecting a -5.5% change year-over-year [3]. - Advertising revenue for Sirius XM was $41 million, slightly below the estimate of $41.85 million, with a year-over-year change of -2.4% [3]. - Equipment revenue for Sirius XM was $43 million, compared to the average estimate of $46.78 million, representing a -12.2% year-over-year change [3]. - Subscriber revenue for Pandora and Off-platform was $135 million, matching the estimate of $135.74 million, with a year-over-year increase of 2.3% [3]. - Advertising revenue for Pandora and Off-platform was $409 million, below the estimate of $423.89 million, reflecting a -2.2% year-over-year change [3]. Stock Performance - Sirius XM shares have returned +15.9% over the past month, outperforming the Zacks S&P 500 composite's +1% change [3]. - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3].

Financial Data and Key Metrics Changes - Sirius XM reported revenue of $2.17 billion for Q3 2024, a decrease of 4% year-over-year, primarily due to a 5% drop in subscriber revenue to $1.65 billion and a 2% decline in advertising revenue to $450 million [24][26] - Adjusted EBITDA for the quarter was $693 million, down 7% year-over-year, resulting in a stable adjusted EBITDA margin of 32% [28] - Free cash flow for Q3 was $93 million, a decrease attributed to increased Liberty transaction-related costs and lower cash receipts [36] Business Line Data and Key Metrics Changes - The Sirius XM segment generated $1.63 billion in revenue, with subscriber revenue of $1.51 billion, reflecting a 5% decline year-over-year [29] - The Pandora and Off-Platform segment's revenue remained flat at $544 million, with ad revenue declining by 2% to $409 million [32] Market Data and Key Metrics Changes - Advertising revenue was softer than expected, with a modest decline of $10 million year-over-year, attributed to increased competition and a shorter election cycle [26][9] - Podcast revenue increased by 6%, indicating demand outpacing supply [26] Company Strategy and Development Direction - The company aims to achieve long-term targets of 50 million subscribers and $1.8 billion in free cash flow by leveraging a free ad-supported tier and a premium interactive bundle [6][7] - New pricing strategies, including a $9.99 entry point for streaming and in-car services, are designed to attract price-sensitive customers while maintaining existing subscriber value [16][17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the advertising business's long-term potential despite near-term challenges, emphasizing ongoing investments in technology and partnerships [9][20] - The company is focused on enhancing customer engagement and retention through personalized marketing and improved content delivery [14][67] Other Important Information - A noncash impairment charge of approximately $3.36 billion was recorded due to the Liberty Media transaction, which does not impact cash flow or liquidity [34] - The company is committed to maintaining a disciplined financial culture and achieving a $200 million cost savings target for 2024 [28] Q&A Session Summary Question: Can you expand on balancing the opportunity to expand your TAM and the risk of pricing down your existing subscriber base? - Management noted that initial testing of new pricing strategies shows higher retention post-trial due to transparency and lower price points [46] Question: Can you discuss your overall podcast strategy and the profitability of this division? - Management highlighted the importance of building a critical mass in podcasting to supplement ad sales, with positive early results from new podcast agreements [54] Question: What insights can you provide on self-pay net adds and engagement? - Management reported that lower churn and higher automotive volumes contributed to net adds, with ongoing initiatives expected to improve retention [63] Question: How do you view the state of the ad market heading into Q4? - Management acknowledged headwinds in the ad market but emphasized growth in programmatic and podcasting segments, with a focus on better targeting and measurement [72][75] Question: What is the outlook for ARPU and pricing increases? - Management confirmed a trajectory for rate increases every other year, with plans to enhance value in full-price packages before any price actions [89]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 2024 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 333-276758 Sirius XM Holdings Inc. (Exact name of registrant as specified in its charter) Delaware 93-4680139 (State or ...

Earnings Performance - Sirius XM reported a quarterly loss of $0.84 per share, missing the Zacks Consensus Estimate of $0.75, representing an earnings surprise of -212% [1] - The company's earnings per share (EPS) for the same quarter last year was $0.90 [1] - Over the last four quarters, Sirius XM has surpassed consensus EPS estimates two times [2] Revenue Performance - Sirius XM posted revenues of $2.17 billion for the quarter ended September 2024, missing the Zacks Consensus Estimate by 0.91% [2] - This compares to year-ago revenues of $2.27 billion [2] - The company has topped consensus revenue estimates just once over the last four quarters [2] Stock Performance - Sirius XM shares have lost about 49.9% since the beginning of the year, compared to the S&P 500's gain of 21.9% [3] Earnings Outlook - The current consensus EPS estimate for the coming quarter is $0.80 on $2.22 billion in revenues [7] - For the current fiscal year, the consensus EPS estimate is $3.04 on $8.75 billion in revenues [7] - The estimate revisions trend for Sirius XM is mixed, translating into a Zacks Rank 3 (Hold) [6] Industry Context - Sirius XM belongs to the Zacks Broadcast Radio and Television industry, which is currently in the bottom 19% of the 250 plus Zacks industries [8] - The top 50% of Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1 [8] Peer Comparison - Saga Communications, another stock in the same industry, is expected to post quarterly earnings of $0.13 per share, representing a year-over-year change of -71.1% [9] - Saga Communications' revenues are expected to be $28.7 million, down 1.5% from the year-ago quarter [10]

Revenue and Financial Performance - Total revenue for Q3 2024 was $2.17 billion, a 4% decline compared to Q3 2023[1] - SiriusXM revenue declined 5% year-over-year to $1.6 billion, with ARPU dropping to $15.16[6] - Pandora and Off-Platform revenue decreased 1% to $544 million, with advertising revenue down 2% to $409 million[12] - Full-year 2024 revenue guidance adjusted to $8.675 billion, with adjusted EBITDA expected at $2.7 billion and free cash flow at $1 billion[17] - Total revenue for the three months ended September 30, 2024, decreased by 4% to $2.171 billion compared to $2.271 billion in 2023[23] - Sirius XM subscriber revenue declined by 5% to $1.510 billion for the three months ended September 30, 2024, from $1.597 billion in 2023[23] - Pandora and Off-platform subscriber revenue increased by 2% to $135 million for the three months ended September 30, 2024, from $132 million in 2023[23] Profitability and Margins - Adjusted EBITDA of $693 million, representing a 32% margin, a 7% decline year-over-year[2] - Pandora and Off-Platform gross profit increased 4% to $187 million, with a gross margin of 34%[13] - Adjusted EBITDA for the three months ended September 30, 2024, was $693 million, a 7% decrease from $747 million in 2023[23] - Sirius XM gross profit decreased by 7% to $969 million for the three months ended September 30, 2024, from $1.047 billion in 2023[23] - Pandora and Off-platform gross profit increased by 4% to $187 million for the three months ended September 30, 2024, from $180 million in 2023[23] - Total company Adjusted EBITDA decreased by $54 million (7%) to $693 million for the three months ended September 30, 2024[27] Subscriber Metrics - SiriusXM added 14,000 self-pay subscribers in Q3 2024, with self-pay churn at 1.6%[5] - Subscribers to the Cloud Cover music programming service are now included in Pandora's subscriber count[25] - Sirius XM self-pay subscribers decreased by 314,000 (1%) to 31,497,000 as of September 30, 2024[26] - Pandora and Off-platform monthly active users declined by 2,779,000 (6%) to 43,721,000 as of September 30, 2024[26] - Pandora and Off-platform self-pay subscribers decreased by 285,000 (5%) to 5,875,000 as of September 30, 2024[26] - Sirius XM Canada subscribers decreased by 102,000 (4%) to 2,559,000 as of September 30, 2024[26] Costs and Expenses - Total cost of services decreased by 3% to $1.015 billion for the three months ended September 30, 2024, from $1.044 billion in 2023[23] - Additions to property and equipment increased from $521 million in 2023 to $563 million in 2024[20] - Sirius XM SAC per installation increased by $2.21 (18%) to $14.67 for the three months ended September 30, 2024[27] - Total share-based payment expense for the three months ended September 30, 2024, was $58 million, compared to $57 million in 2023[24] Cash Flow and Liquidity - Cash and cash equivalents dropped from $306 million in December 2023 to $127 million in September 2024[19] - Net cash provided by operating activities decreased from $1,301 million in 2023 to $1,062 million in 2024[20] - Revolving credit facility borrowings rose from $1,670 million in 2023 to $1,841 million in 2024[20] - Total cash, cash equivalents, and restricted cash decreased from $335 million in 2023 to $135 million in 2024[21] - Free cash flow decreased by $165 million (64%) to $93 million for the three months ended September 30, 2024[27] - Total company net cash provided by operating activities decreased by $135 million to $309 million for the three months ended September 30, 2024[30] Impairments and Losses - Net loss of $2.96 billion due to a non-cash impairment charge of $3.36 billion related to the Liberty Media transaction[1] - Net income for the nine months ended September 30, 2024, was a loss of $2,362 million compared to a profit of $760 million in the same period in 2023[20] - Net loss for the three months ended September 30, 2024, was $2.958 billion, compared to a net income of $291 million in 2023[23] - Non-cash impairment and restructuring costs surged from $21 million in 2023 to $3,355 million in 2024[20] Assets and Liabilities - Total assets decreased from $30,056 million in December 2023 to $27,483 million in September 2024[19] - Goodwill decreased from $15,209 million in December 2023 to $12,390 million in September 2024[19] - Retained earnings dropped from $15,353 million in December 2023 to $10,889 million in September 2024[19] Operational and Strategic Initiatives - SiriusXM introduced new in-app features and a seamless app download for in-car subscribers to enhance user experience[10] - The company remains on track to achieve $200 million in cost savings for the full year 2024[14] - SiriusXM is migrating its billing system and payment processing function to a new service provider[32] - The company uses artificial intelligence in its business, with potential risks including reputational harm and legal liability[32] Market and Competitive Landscape - SiriusXM reaches a combined monthly audience of approximately 150 million listeners[32] - Pandora's ad-supported business has experienced a substantial and consistent loss of monthly active users[32] - The company faces significant competition, which is likely to increase over time[32] - SiriusXM relies on third parties for the operation of its business, and their failure could adversely affect operations[32] - The company may not realize the benefits of acquisitions or other strategic investments and initiatives[32] - SiriusXM's Pandora and Off-platform business generates a significant portion of its revenues from advertising[32] - SiriusXM has significant indebtedness, and its subsidiaries' debt contains certain covenants that restrict operations[32] - The company may face lawsuits, incur liability, or suffer reputational harm due to content published through its services[32]

NEW YORK, Oct. 31, 2024 /PRNewswire/ -- SiriusXM (NASDAQ: SIRI) today reported operating and financial results for the third quarter of 2024, which have been posted to the Investor Relations section of the SiriusXM website at https://investor.siriusxm.com.About Sirius XM Holdings Inc.SiriusXM is the leading audio entertainment company in North America with a portfolio of audio businesses including its flagship subscription entertainment service SiriusXM; the ad-supported and premium music streaming services ...