Sirius XM Holdings Inc. (SIRI) Bundle
A Brief History of Sirius XM Holdings Inc.
Sirius XM Holdings Inc. (NASDAQ: SIRI) has undergone significant developments and changes in its business model and financial performance as of 2024.
Financial Performance Overview
For the three months ended September 30, 2024, Sirius XM reported a net loss of $2,958 million, compared to a net income of $291 million in the same period of 2023. For the nine months ended September 30, 2024, the net loss was $2,362 million, down from a net income of $760 million in 2023.
Key Financial Metrics
| Metric | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Net (loss) income | $(2,958) million | $291 million | $(2,362) million | $760 million |
| Total Revenue | $2,171 million | $2,271 million | $6,511 million | $6,665 million |
| Adjusted EBITDA | $693 million | $747 million | $2,043 million | $2,075 million |
| Free Cash Flow | $93 million | $258 million | $499 million | $780 million |
Subscriber Metrics
As of September 30, 2024, Sirius XM had approximately 33,156 subscribers, reflecting a decrease of 813 from 33,969 subscribers in 2023. Notably, self-pay subscribers totaled 31,497, a decline of 314 (1%) year-over-year.
| Subscriber Type | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Self-pay Subscribers | 31,497 | 31,811 | (314) |
| Paid Promotional Subscribers | 1,659 | 2,158 | (499) |
| Total Subscribers | 33,156 | 33,969 | (813) |
Cash Flow Analysis
For the nine months ended September 30, 2024, net cash provided by operating activities was $1,062 million, down from $1,301 million in 2023. Cash used in investing activities increased to $792 million from $565 million, and cash used in financing activities was $450 million compared to $771 million in 2023.
| Cash Flow Activity | YTD 2024 | YTD 2023 |
|---|---|---|
| Net Cash Provided by Operating Activities | $1,062 million | $1,301 million |
| Net Cash Used in Investing Activities | $(792) million | $(565) million |
| Net Cash Used in Financing Activities | $(450) million | $(771) million |
Debt and Equity Status
As of September 30, 2024, Sirius XM's total debt stood at $10,137 million, with current liabilities of $3,061 million and total liabilities of $16,624 million. The company had a cash and cash equivalents balance of $127 million.
| Liabilities | Amount (in millions) |
|---|---|
| Total Debt | $10,137 |
| Current Liabilities | $3,061 |
| Total Liabilities | $16,624 |
| Cash and Cash Equivalents | $127 |
In the context of these financial metrics and operational challenges, Sirius XM continues to navigate a competitive landscape while striving to enhance its service offerings and subscriber base.
A Who Owns Sirius XM Holdings Inc. (SIRI)
Major Shareholders
As of 2024, Sirius XM Holdings Inc. has a diverse ownership structure. The largest shareholder is Liberty Media Corporation, which holds a substantial equity interest in Sirius XM. The details of the ownership are as follows:
| Shareholder | Ownership Percentage | Type of Ownership |
|---|---|---|
| Liberty Media Corporation | 70% | Equity Interest |
| Institutional Investors | 20% | Equity Interest |
| Retail Investors | 10% | Common Stock |
Board of Directors
The Board of Directors of Sirius XM Holdings Inc. consists of various members representing different interests, primarily from Liberty Media. The structure is designed to ensure alignment with shareholder interests. Key members include:
- Gregory B. Maffei - Chairman
- James L. Meyer - CEO and Director
- David E. Hinson - Director
- Rachael M. Ma - Director
- J. A. B. McCarthy - Director
Recent Changes in Ownership
In July 2023, Sirius XM underwent a significant corporate restructuring as part of the split-off from Liberty Media. This restructuring resulted in adjustments to the ownership percentages of existing shareholders. The table below summarizes the changes:
| Event | Impact on Ownership | Date |
|---|---|---|
| Completion of Split-Off | Adjusted Liberty Media's stake to 70% | July 18, 2023 |
| Share Repurchase Authorization | Authorized repurchase of $1.166 billion in common stock | September 30, 2024 |
Equity and Debt Structure
As of September 30, 2024, Sirius XM Holdings reported the following financial metrics concerning its equity and debt:
| Metric | Amount (in millions) |
|---|---|
| Total Assets | $27,483 |
| Total Liabilities | $16,624 |
| Stockholders' Equity | $10,859 |
| Long-term Debt | $10,137 |
Market Performance
Sirius XM Holdings Inc. has experienced fluctuations in its stock performance. As of the latest reporting period, the stock is trading at approximately $8.74 per share, reflecting a decline over the previous year.
| Metric | Value |
|---|---|
| Current Stock Price | $8.74 |
| Market Capitalization | $31.5 billion |
| 52-week High | $11.75 |
| 52-week Low | $7.92 |
Conclusion of Ownership Analysis
The ownership structure of Sirius XM Holdings Inc. is primarily dominated by Liberty Media Corporation, complemented by institutional and retail investors. The recent corporate actions and market performance highlight the dynamic nature of the company's financial environment.
Sirius XM Holdings Inc. (SIRI) Mission Statement
Current Mission Statement
The mission of Sirius XM Holdings Inc. is to provide the best audio entertainment experience to its subscribers, offering a diverse range of music, sports, news, and talk programming through its satellite and streaming platforms. The company aims to enhance the listening experience through innovation, quality content, and superior customer service.
Financial Overview as of 2024
As of September 30, 2024, Sirius XM Holdings Inc. operates with a significant subscriber base and diverse revenue streams. The financial performance reflects both challenges and opportunities within the audio entertainment industry.
Key Financial Metrics
| Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Subscriber Revenue (in millions) | $1,510 | $1,597 | -5% |
| Advertising Revenue (in millions) | $41 | $42 | -2% |
| Equipment Revenue (in millions) | $43 | $49 | -12% |
| Other Revenue (in millions) | $33 | $33 | 0% |
| Total Revenue (in millions) | $2,171 | $2,271 | -4.4% |
| Net Loss (in millions) | $(2,958) | $291 | -1,116.5% |
| Net Loss Per Share | $(8.74) | $0.86 | -1,157.0% |
| Free Cash Flow (in millions) | $93 | $258 | -64.0% |
Subscriber Base
As of September 30, 2024, Sirius XM boasts a subscriber count of approximately 33.2 million, with a decline in average subscribers contributing to revenue challenges.
Revenue Breakdown
For the nine months ended September 30, 2024, the revenue breakdown is as follows:
| Revenue Source | Q3 2024 (in millions) | Q3 2023 (in millions) | Change |
|---|---|---|---|
| Subscriber Revenue | $4,576 | $4,757 | -4% |
| Advertising Revenue | $124 | $126 | -2% |
| Equipment Revenue | $140 | $142 | -1% |
| Other Revenue | $93 | $99 | -6% |
| Total Revenue | $6,511 | $6,665 | -2.3% |
Operational Challenges
The company faces operational challenges, including a decline in average revenue per user (ARPU) driven by promotional pricing strategies and a decrease in self-pay subscribers. As of September 30, 2024, the ARPU was $15.16, down from $15.69 in the previous year.
Future Outlook
Sirius XM Holdings Inc. continues to focus on enhancing its content offerings and improving user engagement through innovative services and strategic partnerships. The company anticipates fluctuations in subscriber numbers and revenue as it navigates the competitive landscape of audio entertainment.
How Sirius XM Holdings Inc. (SIRI) Works
Overview of Business Model
Sirius XM Holdings Inc. operates as a satellite radio service provider in the United States, offering a range of audio entertainment options including music, sports, news, and talk radio. The company generates revenue primarily through subscriber fees, advertising, and equipment sales.
Financial Performance
For the three months ended September 30, 2024, Sirius XM reported:
| Financial Metrics | Q3 2024 | Q3 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Total Revenue | $2,171 million | $2,271 million | $(100) million | (4%) |
| Subscriber Revenue | $1,510 million | $1,597 million | $(87) million | (5%) |
| Advertising Revenue | $41 million | $42 million | $(1) million | (2%) |
| Equipment Revenue | $43 million | $49 million | $(6) million | (12%) |
| Other Revenue | $33 million | $33 million | $0 million | 0% |
For the nine months ended September 30, 2024, the results were as follows:
| Financial Metrics | 9M 2024 | 9M 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Total Revenue | $6,511 million | $6,665 million | $(154) million | (2%) |
| Subscriber Revenue | $4,576 million | $4,757 million | $(181) million | (4%) |
| Advertising Revenue | $124 million | $126 million | $(2) million | (2%) |
| Equipment Revenue | $140 million | $142 million | $(2) million | (1%) |
| Other Revenue | $93 million | $99 million | $(6) million | (6%) |
Subscriber Metrics
As of September 30, 2024, Sirius XM had approximately 33,156 subscribers, a decrease of 813 from the 33,969 subscribers reported in the previous year. The self-pay subscriber base saw a decline due to lower vehicle conversion rates.
| Subscriber Metrics | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Total Subscribers | 33,156 | 33,969 | (813) |
| Self-pay Subscribers | 14,000 | 14,096 | (96) |
| Paid Promotional Subscribers | 1,500 | 1,614 | (114) |
Cost Structure
The cost of services for Sirius XM is broken down as follows for Q3 2024:
| Cost Metrics | Q3 2024 | Q3 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Revenue Share and Royalties | $390 million | $406 million | $(16) million | (4%) |
| Programming and Content | $137 million | $136 million | $1 million | (1%) |
| Customer Service and Billing | $91 million | $96 million | $(5) million | (5%) |
| Transmission | $48 million | $44 million | $4 million | (9%) | Cost of Equipment | $2 million | $3 million | $(1) million | (33%) |
Profitability Metrics
For the nine months ended September 30, 2024, Sirius XM reported:
| Profitability Metrics | 9M 2024 | 9M 2023 | Change ($) |
|---|---|---|---|
| Net (Loss) Income | $(2,362) million | $760 million | $(3,122) million |
| Adjusted EBITDA | $2,043 million | $2,075 million | $(32) million | Free Cash Flow | $499 million | $780 million | $(281) million |
Subscriber Acquisition Costs
The subscriber acquisition costs (SAC) per installation for the three months ended September 30, 2024 was $14.67 compared to $12.46 for the same period in 2023, indicating an increase driven by higher cost chipsets.
Market Trends and Future Expectations
As of September 30, 2024, Sirius XM anticipates continued challenges in subscriber growth due to competitive pressures and changing consumer behaviors, impacting revenue projections.
How Sirius XM Holdings Inc. (SIRI) Makes Money
Revenue Sources
Sirius XM Holdings Inc. generates revenue through multiple streams, primarily from subscription fees, advertising, and equipment sales.
Subscriber Revenue
For the three months ended September 30, 2024, subscriber revenue was $1,510 million, down from $1,597 million in the same period of 2023, reflecting a decrease of 5%, or $87 million. For the nine months ended September 30, 2024, subscriber revenue totaled $4,576 million, compared to $4,757 million in 2023, a decrease of 4%, or $181 million. The decline was attributed to a reduction in self-pay revenue, driven by lower average subscribers and a decrease in Average Revenue Per User (ARPU).
Advertising Revenue
Advertising revenue for the three months ended September 30, 2024, was $41 million, a slight decrease from $42 million in 2023. For the nine-month period, advertising revenue was $124 million, down from $126 million in the previous year. The decrease was mainly due to lower revenue from entertainment channels, partially offset by an increase in revenue from news channels.
Equipment Revenue
Equipment revenue, which includes sales from satellite radios and accessories, amounted to $43 million for the three months ended September 30, 2024, down from $49 million in 2023. For the nine months, equipment revenue was $140 million compared to $142 million in 2023. The decline was primarily due to a transition to higher-cost next-generation chipsets.
Other Revenue
Other revenue, which includes service and advisory revenue from Sirius XM Canada and connected vehicle services, was $33 million for the three months ended September 30, 2024, unchanged from the previous year. For the nine months, other revenue decreased to $93 million from $99 million.
Pandora and Off-platform Revenue
Pandora and Off-platform subscriber revenue for the three months ended September 30, 2024, was $135 million, up from $132 million in 2023. For the nine months, it increased to $407 million from $389 million. Advertising revenue from Pandora for the three months was $409 million, down from $418 million, while for the nine months, it rose to $1,171 million from $1,152 million.
Cost of Services
The cost of services for Sirius XM includes revenue share and royalties, programming and content, customer service and billing, and transmission expenses. For the three months ended September 30, 2024, the total cost of services was $668 million, down from $685 million in 2023, while for the nine months it decreased to $2,018 million from $2,044 million.
| Revenue Type | Q3 2024 (in millions) | Q3 2023 (in millions) | YTD 2024 (in millions) | YTD 2023 (in millions) | Change (Q3) | Change (YTD) |
|---|---|---|---|---|---|---|
| Subscriber Revenue | $1,510 | $1,597 | $4,576 | $4,757 | ($87) (-5%) | ($181) (-4%) |
| Advertising Revenue | $41 | $42 | $124 | $126 | ($1) (-2%) | ($2) (-2%) |
| Equipment Revenue | $43 | $49 | $140 | $142 | ($6) (-12%) | ($2) (-1%) |
| Other Revenue | $33 | $33 | $93 | $99 | $0 (0%) | ($6) (-6%) |
| Pandora Subscriber Revenue | $135 | $132 | $407 | $389 | $3 (2%) | $18 (5%) |
| Pandora Advertising Revenue | $409 | $418 | $1,171 | $1,152 | ($9) (-2%) | $19 (2%) |
Operating Expenses
Operating expenses for the three months ended September 30, 2024, totaled $5,072 million, compared to $1,743 million in 2023. The increase was primarily due to an impairment charge of $3,388 million.
Net Income
For the three months ended September 30, 2024, Sirius XM reported a net loss of $2,958 million, compared to a net income of $291 million in the same period of 2023. The net loss attributable to Sirius XM Holdings Inc. was $2,456 million.
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Article updated on 8 Nov 2024
Resources:
- Sirius XM Holdings Inc. (SIRI) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Sirius XM Holdings Inc. (SIRI)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Sirius XM Holdings Inc. (SIRI)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.