SiriusXM Reports First Quarter 2021 Results

• First Quarter Revenue of $2.06 Billion; an Increase of 5% From Prior Year Period
• First Quarter Net Income of $219 Million; Diluted EPS of $0.05, or $0.07, Excluding One-Time Items
• Adjusted EBITDA of $682 Million in the First Quarter, Up 7% From Prior Year Period
• SiriusXM Self-Pay Net Subscriber Additions of 126,000, an Increase of 83% Year-Over-Year
• SiriusXM Reiterates 2021 Financial and Subscriber Guidance

SiriusXM today announced first quarter 2021 operating and financial results, including revenue of $2.06 billion, an increase of 5% compared to the prior year period.  The company recorded net income of $219 million in the first quarter of 2021, compared to $293 million in the prior year period.  First quarter 2021 net income included a $220 million non-cash impairment charge related to the failure of the company's SXM-7 satellite, not reflecting any potential insurance recoveries, a $25 million charge related to the surrender of certain office space, and a $95 million benefit associated with a state tax audit settlement.  Net income per diluted common share was $0.05 in the first quarter 2021, compared to $0.07 in the prior year period.  Diluted EPS was $0.07 in the first quarter excluding the impact of the two impairments and the tax audit settlement mentioned above.

Adjusted EBITDA in the first quarter was $682 million, up 7% from $639 million in the prior year period.

"I am pleased to announce SiriusXM has started the year impressively – we added 126,000 self-pay net subscribers, an 83% increase as compared to the period a year ago, saw a first quarter record-low churn rate of 1.6%, and are reporting a new record-high quarterly adjusted EBITDA figure.  These strong results reflect the value we bring to our listeners through the breadth and depth of our content.  Our advertising revenue grew 24%, driven by robust monetization of both on- and off-platform opportunities, as well as the growing podcast market.  While we are benefiting from the broader reopening of the economy and the acceleration of consumers' digital adoption, the meaningful long-term investments we've been making are also paying off.  This includes creating and delivering compelling content, strengthening our digital product experiences, and scaling a full suite of end-to-end distribution and monetization solutions for content creators and publishers.  We are extremely focused on achieving our 2021 goals and reinforcing our long-term position as North America's premier audio entertainment company," said Jennifer Witz, Chief Executive Officer of SiriusXM.

SiriusXM operates two complementary audio entertainment businesses — SiriusXM business and our Pandora business. 

Self-Pay Subscribers Reach a Record-High 31.0 Million.  SiriusXM added 126,000 net new self-pay subscribers in the first quarter, an 83% increase from the 69,000 added in the first quarter of 2020.  Paid promotional subscribers decreased by 341,000.  A new vehicle trial structure adjustment for two automakers, and to a lesser extent, lower vehicle shipments due to silicon supply constraints, contributed to negative paid promotional net additions during the quarter.  Total subscribers at the end of the first quarter were 34.5 million, a reduction of 1% from the prior year period.  The total SiriusXM trial funnel stood at approximately 8.7 million at the end of the first quarter, up from approximately 8.4 million at the end of 2020, on record trial starts in the first quarter of 2021.  Self-pay monthly churn for the first quarter improved to 1.6% from 1.8% in the first quarter of 2020.

SiriusXM Revenue Increased 2% to $1.62 Billion.  First quarter 2021 revenue grew 2% to $1.62 billion.  This growth was primarily driven by a 3% increase in SiriusXM's average revenue per user (ARPU) to $14.30, and a 3% increase in SiriusXM self-pay subscribers, partially offset by the decrease in paid promotional SiriusXM subscribers

PANDORA SEGMENT

Advertising Revenue Increased 29% to $312 Million.  First quarter ad revenue at Pandora, which includes off-platform results such as the company's AdsWizz business, increased by 29% year-over-year to $312 million.  Ad revenue was boosted by strong monetization of $85.69 per thousand hours at Pandora, growing 27% over the prior year period.  Ad revenue also benefited from the acquisition of Stitcher in the fourth quarter of 2020.

Stitcher and Off-Platform Performance.  In the first quarter of 2021, Stitcher and our off-platform advertising businesses recorded $67 million in revenue.  Off-platform revenue, excluding Stitcher, increased approximately $14 million or 48% compared to the first quarter of 2020.  More brands are advertising on Stitcher podcasts than any other network.  Stitcher recently launched "The Atlas Obscura Podcast", which hit the Top 10 on the Apple Podcast charts.  Other available podcasts on Stitcher now include "Kevin Hart's Comedy Gold Minds," and "Marvel Declassified."

Total Advertising-Supported Listener Hours of 2.87 Billion.  Monthly Active Users (MAUs) at Pandora were 55.9 million in the first quarter of 2021, down from 60.9 million in the prior year period.  Total ad-supported listener hours were 2.87 billion in the period, down from 3.13 billion in the first quarter of 2020.

Self-Pay Net Adds of 113,000.  Pandora added 113,000 net new self-pay subscribers to its Pandora Plus and Pandora Premium services in the first quarter 2021 to end the period with 6.4 million self-pay subscribers to those services.

Gross Profit Grows 30%.  Subscriber revenue increased by 2%, advertising revenue increased by 29% and total cost of services increased by 16% during the first quarter of 2021. This resulted in gross profit at Pandora of $137 million, up 30% over the first quarter of 2020, and produced a gross margin for the quarter of 31%, a 3 point increase from the prior year period.