Sirius XM Clocks 8% Revenue Growth In FY21 Backed By Subscriber Addons; Declares Special Cash Dividend

Sirius XM Holdings Inc SIRI reported FY21 revenue growth of 8% year-on-year to $8.7 billion.

• Sirius reported fourth-quarter FY21 revenue growth of 4% Y/Y to $2.28 billion above the consensus of $2.25 billion.
• CEO Jennifer Witz said, "2021 was an outstanding year across the board. We added more than one million net new SiriusXM self-pay subscribers for the tenth time in the past 11 years; this growth continues to be sustained by a fifth straight year of improving churn."
• FY21 Segments: SiriusXM segment revenue grew 4% Y/Y to $6.62 billion as ARPU rose 5% to $14.76 and self-pay subscribers improved 4%. The gross margin contracted 100 bps to 61%.
• Pandora segment advertising revenue increased 30% Y/Y to $1.54 billion, boosted by solid monetization and Stitcher acquisition. The gross margin expanded 600 bps to 36%.
• Subscriber revenue expanded 3.8% Y/Y to $6.6 billion. Advertising revenue increased 29.1% Y/Y to $1.73 billion.
• The FY21 EPS was $0.32. The Q4 EPS of $0.08 beat the consensus of $0.07.
• FY21 Others: Adjusted EBITDA climbed 8% Y/Y to $2.77 billion.
• Sirius generated $2 billion in operating cash flow and held $199 million in cash and equivalents. Free cash flow was $1.83 billion.
• Dividend: The board declared a special cash dividend of $0.25 per share.
• FY22 Outlook: Sirius sees revenue of $9 billion, marginally higher than the consensus of $8.9 billion. It considers an adjusted EBITDA of $2.8 billion and a free cash flow of $1.55 billion.
• Price action: SIRI shares traded higher by 0.79% at $6.41 in the market session on the last check Tuesday.