Thursday, January 30, 2025

SiriusXM Reports Loss Of 296,000 Subs For 2024, Total Now 33M


SiriusXM today announced its fourth quarter and full-year 2024 operating and financial results, including revenue of $2.19 billion and $8.70 billion, respectively, representing declines of 4% and 3%, respectively, compared to the same periods in 2023. The company reported net income of $287 million for the fourth quarter and a net loss of $2.08 billion for the full year 2024, compared to net income of $228 million and $988 million in the prior year, respectively. Earnings per diluted common share were $0.83 and $(6.14) for the fourth quarter and full-year 2024, respectively, compared to $0.67 and $2.77, respectively, in the same periods in 2023. 

In the fourth quarter of 2024, adjusted EBITDA totaled $688 million, a 4% decline from $715 million in the same 2023 period. For the full year 2024, adjusted EBITDA was $2.73 billion, reflecting a 2% decline compared to $2.79billion in the prior year. The decrease was driven by declines in subscriber revenue, partially offset by lower costs of services, personnel-related costs, sales and marketing, product and technology and general and administrative expenses. The company maintained a stable adjusted EBITDA margin of 31%. "At the end of 2024, we took significant steps to refocus on SiriusXM’s core strengths and enhance operational efficiency," said Jennifer Witz, Chief Executive Officer. 

Jennifer Witz
"By prioritizing our core in-car subscription business, leveraging our streaming capabilities, and growing our leadership in ad-supported audio, we are well-positioned to deliver long-term value. Looking ahead, we are energized by the opportunities to build on this strategy and continue offering unparalleled audio experiences through our platforms." 

SEGMENT HIGHLIGHTS 

Sirius XM Holdings operates two complementary audio entertainment businesses — one of which is referred to as “SiriusXM” and the second of which is referred to as “Pandora and Off-platform.” Further information regarding  these two segments will be contained in the company’s Annual Report on Form 10-K for the year ended  December 31, 2024. The financial highlights below exclude the impact of share-based payment expense. 

SiriusXM Fourth Quarter and Full-Year 2024 Segment Highlights 

SiriusXM Total Subscribers of 33 Million 

SiriusXM added approximately 149,000 self-pay subscribers in the fourth quarter of 2024, an increase of 18,000 compared to the fourth quarter of 2023. For the full-year 2024, self-pay subscribers decreased by 296,000, an improvement over the full-year decrease of 445,000 self-pay subscribers in 2023. SiriusXM ended 2024 with approximately 33 million total subscribers. Paid promotional subscribers declined by 79,000 during the fourth quarter and declined by 353,000 for the full-year 2024. The SiriusXM trial funnel reached approximately 7.3 million by the end of 2024, compared to 7.2 million in 2023 and 6.8 million in 2022. Self-pay monthly churn for the fourth quarter of 2024 finished strong, decreasing to 1.5%, down 10 basis points from the fourth quarter of 2023. Full-Year Revenue of $6.6 Billion 

In 2024, SiriusXM's total revenue was $6.6 billion, a 4% decrease from 2023. This decrease was primarily driven by a 4% reduction in subscriber revenue, attributed to a smaller average base of self-pay subscribers; a 6% decline in equipment revenue; and a 6% decline in other revenue. Additionally, for the full-year 2024, Average Revenue Per User (ARPU) decreased by $0.35 to $15.21, reflecting the impact of a growing number of self-pay streaming-only and promotional subscriptions, lower rates from automakers offering paid promotional plans, and a 1% decline in advertising revenue. 

Full-Year Gross Profit of $3.9 Billion 

Total cost of services at SiriusXM was $2.6 billion for 2024, a 2% decrease compared to the prior year. Gross profit at SiriusXM totaled $3.9 billion, a decrease of 6% compared to the $4.2 billion recorded in 2023, producing a gross  margin of 60%, one percentage point lower than the prior year.

No comments:

Post a Comment