Sirius XM Q4 Earnings Beats Estimates, CEO Highlights Focus On In-Car Subscriptions, Ad-Supported Growth

Sirius XM Holdings Inc SIRI reported a fiscal fourth-quarter 2024 revenue decline of 4% year-on-year to $2.19 billion, topping the analyst consensus estimate of $2.17 billion.

Adjusted EPS of 83 cents beat the analyst consensus estimate of 66 cents.

Subscriber revenue was $1.63 billion in the quarter, down from $1.72 billion a year ago.

Advertising revenue was $477 million, down from $479 million a year ago.

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For the year, SiriusXM self-pay subscribers decreased by 296,000 to 33.1 million total subscribers versus 33.8 million Y/Y.

The self-pay monthly churn declined Y/Y to 1.5% for the quarter. SiriusXM added 149,000 self-pay subscribers in the quarter.

SiriusXM segment revenue declined 6% year over year to $1.62 billion during the quarter, driven by a lower average base of self-pay subscribers and a 53 cents year-over-year decrease in average revenue per user (ARPU).

ARPU decreased to $15.16 from $15.69 Y/Y. SiriusXM segment gross margin declined 100 bps to 60% Y/Y.

Pandora segment advertising revenue remained flat Y/Y at $434 million for the quarter.

Pandora’s Monthly Active Users (MAUs) were 43.34 million, down from 46.03 million in 2023. The total number of ad-supported listener hours was 2.39 billion in the quarter, down from 2.53 billion Y/Y.

The Pandora segment gross margin remained firm Y/Y at 34% for the quarter, while the gross profit declined by 1% Y/Y.

The adjusted EBITDA declined 4% Y/Y at $688 million due to lower subscriber revenue.

The company reported a net loss of $287 million.

Sirius generated $516 million in free cash flow in the quarter, versus $402 a year ago. It held $162 million in cash and equivalents as of December 31, 2024.

CEO Jennifer Witz noted by prioritizing our core in-car subscription business, leveraging its streaming capabilities, and growing its leadership in ad-supported audio, the company is well-positioned to deliver long-term value.

FY25 Outlook: Sirius XM expects revenue of $8.500 billion versus the consensus of $8.594 billion. It also projected an adjusted EBITDA of $2.60 billion and expects a free cash flow of $1.15 billion.

Price Action: SIRI stock is up 5.49% at $23.07 at the last check on Thursday.

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