Sirius XM Holdings Inc. (SIRI) J.P. Morgan 52nd Annual Global Technology, Media and Communications Conference (Transcript)

Industry/Company * Company: Sirius XM Holdings Inc. (NASDAQ: SIRI) * Industry: Cable, Satellite and Telecom Core Points and Arguments 1. Growth Strategy: Sirius XM is focusing on three key priorities for long-term growth: * Enhancing the consumer experience to drive future subscriber growth. * Capitalizing on opportunities in the ad business. * Driving efficiencies across the business to improve financial performance. [2] 2. Enhancing Subscription Value: * Investing in exclusive content, new brand platforms, and tech capabilities to attract new audiences. * Launching a new streaming platform and app with enhanced personalization, discovery, and control features. * Testing new pricing and packaging options for in-car business. [2] 3. Ad Business: * Leveraging a strong sales force, leading-edge technology, and audio talent to attract advertisers. * Investing in podcasting to enhance the ability to bring advertisers into the streaming and podcast network. [3] 4. Efficiencies: * Rationalizing the real estate portfolio and bringing marketing teams together for a better go-to-market strategy. * Investing in AI to enhance productivity and improve the customer experience. [4] 5. Streaming Platform: * Launched in December 2023, with a new price point of $9.99 to appeal to younger audiences. * Seeing positive leading indicators, including increased days listening and broader content access. [6][8] 6. **360L**: * 3 million self-pay customers and 12 million total 360L cars on the road. * Seeing better conversion rates, retention, and ARPU among 360L customers. * Expecting 360L to be in about 75$45 million in 1Q '24, with a target of $200 million annually. * Focused on driving revenue growth and maintaining EBITDA margins. [34][36] 9. AI: * Implementing AI for productivity enhancements, cost efficiencies, and improved customer service. * Using AI for sales and marketing, customer service, and product recommendations. [38][40] 10. Capital Expenditures (CapEx): * Peak CapEx in 2024, with satellite spend expected to drop significantly by 2028. * Non-satellite spend expected to remain elevated in 2025 before normalizing in 2026 and beyond. [42][43][44] 11. Leverage: * Targeting a leverage ratio of low to mid-3s in the back half of 2025. * Potential for share buybacks post deal if there is market dislocation. [45] 12. Audible Deal: * In process, with the first phase expected to be rolled out later this month or early June. [47] Other Important Points * Sirius XM is focused on improving the customer experience and providing more package choice. * The company is investing in technology and AI to enhance productivity and improve the customer experience. * Sirius XM is well-positioned for growth in the long term due to its strong content portfolio, distribution channels, and financial position.