Subscriber Addons Drive Sirius XM's 9% Revenue Growth In Q3, Raises FY21 Outlook

Sirius XM Holdings Inc SIRI reported third-quarter FY21 revenue growth of 9% year-on-year to $2.2 billion, beating the consensus of $2.17 billion.
By adding a record 616,000 net new SiriusXM self-pay subscribers in Q3, Sirius attained the prior full-year guidance of 1.1 million net additions in nine months.
Sirius XM raised the FY21 outlook and expected to add over 1.1 million new self-pay SiriusXM subscribers in 2021.
During Q3, Sirius XM saw continued low monthly churn, outstanding ARPU performance in the SiriusXM business, and made significant progress driving advertising growth at Pandora.
SiriusXM segment revenue grew 5% Y/Y to $1.66 billion as ARPU rose 5% to $14.84 and self-pay subscribers improved 5%. The gross margin expanded 100 basis points to 61%.
Pandora segment advertising revenue increased 32% Y/Y to $404 million, boosted by solid monetization and Stitcher acquisition. The gross margin of 37% was in line with the year-ago period.
Subscriber revenue expanded 4.5% Y/Y to $1.7 billion. Advertising revenue increased 30.7% Y/Y to $451million.
The EPS of $0.10 beat the consensus of $0.07.
Sirius generated $636 million in operating cash flow and held $1.1 billion in cash and equivalents.
Outlook: Sirius raised FY21 revenue outlook from $8.55 billion to $8.65 billion, above the analyst consensus of $8.59 billion. It increased the adjusted EBITDA outlook from $2.675 billion to $2.75 billion and raised the free cash flow guidance from $1.7 billion to over $1.8 billion.
Price action: SIRI shares traded higher by 1.85% at $6.07 on the last check Thursday.

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