Q3 2024 Earnings Summary
Reported on Oct 31, 2024 (Before Market Open)
Pre-Earnings Price$27.39Last close (Oct 30, 2024)
Post-Earnings Price$27.00Open (Oct 31, 2024)
Price Change
$-0.39(-1.42%)
- SiriusXM is experiencing positive subscriber growth driven by lower churn at 1.6% and new initiatives in pricing and packaging, such as the $9.99 lead price point for in-car subscriptions, which initial testing shows leads to higher post-trial retention. These efforts are expected to expand the subscriber base and improve revenue over time.
- The company is demonstrating strong growth in programmatic podcast advertising, with programmatic advertising up 9%, podcasting up 6%, and programmatic podcasting growing approximately 50% in the quarter, indicating significant opportunity in this area despite challenges in the broader ad market.
- SiriusXM's successful expansion in podcast content with significant talent additions like Unwell and SmartLess, which are ahead of projections and showing clear monetization, leveraging the company's core competency in curation to become a definitive source for podcasts, attracting more listeners and advertising revenue.
- SiriusXM has reduced its total revenue guidance by $75 million for 2024 due to softer advertising revenue driven by weaker ad market conditions, increased competition, and a shorter election cycle. They expect these challenges to continue impacting the fourth quarter, indicating near-term pressure on revenue growth.
- The company's Average Revenue Per User (ARPU) declined by $0.53 year-over-year, ending the quarter at $15.16 compared to $15.69 last year. This decline is attributed to an increase in subscribers on promotional rates and streaming-only self-pay plans, which may impact overall revenue growth.
- New advertising initiatives, such as turning on ads for non-subscribers in cars (free access), are still in early testing phases and will take years to build up the scale, suggesting that they may not provide immediate relief to current advertising revenue challenges.
Research analysts covering SIRIUS XM HOLDINGS.