Sirius XM Tops Q1, Incorporates Hardware Into 83% of New Vehicles Sold in US

Sirius XM Holdings Inc SIRI reported first-quarter FY22 revenue growth of 6% year-on-year to $2.19 billion, beating the consensus of $2.15 billion.
Subscriber revenue expanded 6.3% Y/Y to $1.71 billion. Advertising revenue increased 8.2% Y/Y to $383 million.
SiriusXM incorporated hardware into 83% of new vehicles sold in the U.S., up from 81% Y/Y.
SiriusXM's fleet grew to nearly 146 million vehicles, up 9% Y/Y.
SiriusXM self-pay subscribers decreased by 25,000, reaching 34 million total subscribers. Self-pay monthly churn remained flat at 1.6%.
SiriusXM segment revenue grew 6% Y/Y to $1.7 billion as ARPU rose 9% to $15.53 and self-pay subscribers improved 3%. The gross margin expanded 100 basis points to 62%.
Pandora segment advertising revenue increased 8% Y/Y to $336 million, boosted by solid monetization. The gross margin contracted by 200 bps to 29%.
EPS of $0.08 is in line with the consensus.
Sirius generated $258 million in free cash flow and held $84 million in cash and equivalents.
Outlook: Sirius XM was on track to accomplish FY22 revenue guidance of $9 billion against the consensus of $8.98 billion and self-pay net subscriber additions of 500,000.
Price Action: SIRI shares traded higher by 6.20% at $6.34 on the last check Thursday.

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