Yahoo Finance Sirius XM (SIRI) Q1 Earnings Beat Estimates, Revenues Rise Y/Y
Sirius XM Holdings SIRI reported first-quarter 2024 earnings of 7 cents per share, which beat the Zacks Consensus Estimate by 16.67% and remained flat year over year.
Total revenues on a reported basis gained 0.8% year over year to $2.16 billion and beat the consensus mark by 1.32%.
Subscriber revenues (77.7% of total revenues) declined 0.7% from the year-ago quarter to $1.68 billion. The figure beat the Zacks Consensus Estimate by 1%.
Meanwhile, advertisement revenues (18.6%) increased 7.2% year over year to $402 million. The figure beat the Zacks Consensus Estimate by 4.14%.
Equipment revenues (2.3% of total revenues) rose 8.7% year over year to $50 million. The figure beat the Zacks Consensus Estimate by 9.65%.
Other revenues (1.4% of total revenues) decreased 6.3% from the year-ago quarter to $30 million and missed the Zacks Consensus Estimate by 9.96%.
Sirius XM Holdings Inc. Price, Consensus and EPS Surprise
Sirius XM Holdings Inc. price-consensus-eps-surprise-chart | Sirius XM Holdings Inc. Quote
Sirius XM Standalone Details
The Sirius XM Standalone segment’s revenues (77.1% of total revenues) were $1.66 billion, down 0.9% year over year.
Total subscriber base declined 1.7% year over year to 33.43 million, missing the Zacks Consensus Estimate by 0.45%.
Revenues witnessed a decline due to a 1% drop in subscriber revenues, which amounted to $1.54 billion. Advertising revenues were $40 million, down 2.4% year over year. Equipment revenues increased 8.7% year over year to $50 million. Other revenues decreased 6.3% year over year to $30 million.
Self-pay subscribers rose 3% year over year to 31.58 million. Net subscriber loss in the reported quarter was 445K against net additions of 281K in the year-ago period.
Average revenue per user amounted to $15.36, up 0.5% year over year. The figure missed the Zacks Consensus Estimate by 0.67%.
Pandora & OFF Platform Details
Pandora and OFF platform’s revenues (22.9% of total revenues) gained 7.1% year over year to $495 million, owing to an 8.4% increase in advertising revenues that totaled $362 million and subscriber revenues that improved 3.9% year over year to $133 million.
Self-pay subscribers of the Pandora Plus and Pandora Premium services decreased 64K in the first quarter of 2024 to end the period at 5.9 million.
Total subscribers decreased 4.5% year over year, ending the first quarter at 5.94 million. The figure missed the Zacks Consensus Estimate by 1.1%.
Total ad-supported listener hours were 2.49 billion in the first quarter, down 3.9% year over year. Advertising revenue per thousand listener hours was $90.88, up 6.8% year over year.
Operating Details
In the first quarter, total operating expenses decreased 0.4% year over year to $1.72 billion. The company saved approximately $45 million through cost optimization efforts and consolidation across its businesses.
Adjusted EBITDA rose 4% year over year to $650 million.
Balance Sheet & Cash Flow
As of Mar 31, 2024, cash and cash equivalents were $71 million compared with $216 million as of Dec 31, 2023.
The long-term debt, as of Mar 31, 2024, was $8.72 billion compared with $8.69 billion as of Dec 31, 2023.
For the first quarter, cash flow from operations was $308 million compared with $350 million in the year-ago quarter.
Free cash flow was $132 million for the reported quarter, down from $144 million reported in the prior-year period. The decrease was attributable to an increase in content and other vendor payments, partially offset by lower satellite capital expenditures. In addition, in the first quarter of 2024, the company invested approximately $187 million in carbon capture tax equity investments and plans to invest an additional approximately $50 million in the remainder of 2024.
These equity investments are expected to reduce the company’s cash taxes by approximately $130 million in 2024. The company anticipates the majority of the $250 million in net after-tax cash benefits to be realized in the latter part of the seven-year investment period.
2024 Guidance
Revenues are expected to be $8.75 billion. Adjusted EBITDA is projected to be $2.7 billion. Free cash flow is expected to be $1.2 billion.
Zacks Rank & Stocks to Consider
Currently, Sirius XM carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Consumer Discretionary sector are Disney DIS, Reynolds Consumer Products REYN and Roblox RBLX, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Shares of Disney have jumped 26.2% year to date. DIS is set to report second-quarter fiscal 2024 results on May 7.
Shares of Reynolds Consumer Products have gained 7% year to date. REYN is slated to report first-quarter 2024 results on May 8.
Shares of Roblox have plunged 23.5% year to date. RBLX is set to report first-quarter 2024 results on May 9.
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