SiriusXM Reports Record High 32.4M Subs, Pandora Down Slightly

• 2022 Revenue of $9.0 Billion, Up 4% Year-Over-Year
• Net Income of $1.21 Billion in 2022 and Diluted EPS of $0.31
• Adjusted EBITDA Reaches $2.83 Billion
• SiriusXM Achieves Financial Guidance in 2022; Reports Full-Year Self-Pay Net Additions of 348,000

SiriusXM today announced fourth quarter and full-year 2022 operating and financial results, including revenue of $2.28 billion and $9.0 billion, respectively. SiriusXM's revenue was flat in the fourth quarter compared to the prior year period, and increased by 4% in 2022 compared to the prior year. 

The company recorded net income of $365 million and $1.21 billion in the fourth quarter and full-year 2022, respectively, compared to $318 million and $1.31 billion in the prior year, respectively. Net income per diluted common share was $0.09 and $0.31 in the fourth quarter and full-year 2022, respectively.

Adjusted EBITDA of $742 million and $2.83 billion for the fourth quarter and full-year 2022 increased 10% and 2% respectively, compared to the prior year periods.

Jennifer Witz

"2022 was a strong year for SiriusXM, as we continued to focus on bringing consumers the best in audio entertainment both in-car and on the go, reaching record high revenue and record low churn,” said Jennifer Witz, Chief Executive Officer. 

"Our strong operating and financial performance in 2022 are a testament to our resilient business model and growing contribution from streaming, which helped us deliver 348,000 net new self-pay subscribers. In 2023, we expect SiriusXM to deliver strong operating performance and generate significant cash, even as we face a challenging economic environment and continue to make material investments in our technology infrastructure.”

"SiriusXM met all of its financial guidance in 2022 – a notable accomplishment in a tough year. We believe our new 2023 financial guidance reflects our current view of the business and industry trends," said Sean Sullivan, Chief Financial Officer. "While we are not issuing subscriber guidance today, we anticipate modestly negative self-pay net adds for the year as economic and demand uncertainty persists, auto sales remain soft, and we reduce marketing ahead of our planned launch of a new streaming experience later this year.”

➤SiriusXM 2022 Segment Financial Metrics and Highlights 

Self-Pay Subscribers Reach Record-High of 32.4 Million SiriusXM ended 2022 with 32.4 million self-pay subscribers, an increase of 348,000 for the year, aided by a growing base of streaming-only subscribers. Paid promotional subscribers decreased by 76,000 for the year, reflecting impacts of contractual changes with certain automakers and reduced new vehicle inventories and sales. The total SiriusXM trial funnel ended the fourth quarter at 6.8 million, down approximately 224,000 from the previous quarter but remained flat year over year. Self-pay monthly churn of 1.5% for the fourth quarter and year remained at record low levels. 

SiriusXM Full-Year Revenue Reaches $6.9 Billion SiriusXM total revenue reached $6.9 billion in 2022, a 4% increase compared to 2021. This growth was driven by an $0.87 increase in average revenue per user (ARPU), up 6% year-over-year, resulting in a record ARPU of $15.63. SiriusXM subscriber revenue climbed 5%, partially offset by a decrease in paid promotional subscribers, and advertising revenue grew 4%. 

SiriusXM Full-Year Gross Profit of $4.3 Billion Total cost of services at SiriusXM was $2.6 billion for the year, a 2% increase compared to the prior year. Gross profit at SiriusXM totaled $4.3 billion, an increase of 6% compared to 2021, producing a gross margin of 62%, roughly a point higher than the prior year. 

Product Advances Rolled-Out in 2022 During the fourth quarter, SiriusXM launched a free beta version in Lucid electric vehicles with hundreds of SiriusXM channels and features like SiriusXM's Pandora Stations, on-demand content and podcasts. The full SiriusXM experience is expected to become accessible to all Lucid drivers through an over-the-air update later this year. SiriusXM also released an updated version of the SXM App for iOS and Android devices that introduced a refreshed design experience to enhance navigation and streamline content discovery with expanded personalization features for subscribers. Similar improvements were also made to the SXM App on Apple CarPlay and Android Auto. 

Continued Investment in Content SiriusXM continues to bring listeners exclusive content from some of the biggest entertainers in the business. In 2022, the company launched a variety of new music programming with over 40 exclusive channels spotlighting artists such as Aretha Franklin, The Chicks, and Selena Gomez, and celebrated some big moments with its Small Stage series featuring iconic performances ranging from Lizzo and Halsey to the Red Hot Chili Peppers and Pearl Jam. The company also signed several agreements with podcast powerhouses, including Crooked Media and Freakonomics, and launched a 24/7 original comedy channel with Team Coco Radio in the fourth quarter. Additionally, SiriusXM agreed to multiyear extensions with some of the biggest sports leagues in the nation, including renewals with the National Football League (NFL) and, most recently, the National Hockey League (NHL). 

➤Pandora and Off-Platform 2022 Segment Financial Metrics and Highlights 

Self-Pay Subscribers Slightly Down to 6.2 Million Self-pay subscribers to the Pandora Plus and Pandora Premium services decreased slightly by 2% in 2022, ending the year at 6.2 million compared to 6.3 million in 2021. 

Pandora and Off-Platform Full-Year Revenue Reaches $2.1 Billion Pandora and Off-platform revenue for the year reached $2.1 billion, a 1% increase compared to the prior year. Fullyear 2022 advertising revenue in the Pandora and Off-Platform segment increased to $1.6 billion, up 2% from the prior year. Off-platform ad revenue reached $475 million, climbing 34% in 2022, with podcasting revenue driving most of this growth. 

Pandora and Off-Platform Full-Year Gross Profit of $655 Million Total cost of services in the segment reached $1.4 billion, a 9% increase compared to $1.3 billion in 2021. The increased costs were driven primarily by investments in podcast content. This resulted in gross profit in the Pandora and Off-Platform segment of $655 million, producing a gross margin of 31%, down 5 percentage points from the prior year. 

MAUs and Advertising-Supported Listening Declines Pandora finished 2022 with 47.6 million Monthly Active Users (MAUs), down 9% from 52.3 million in the prior year period. Total ad-supported listener hours were 10.9 billion at the end of 2022, down 6% from 11.5 billion in 2021. Average monthly listening hours per ad-supported user climbed 4% to 20.6 in 2022 compared to 19.9 in 2021. Ad Representation and Podcasting SXM Media, the company's combined advertising sales group, strengthened its podcast business in 2022. In the fourth quarter 2022, the company signed a renewal agreement with the award-winning podcast series “How Did This Get Made?” and launched a new wellness series with the motivational audio creator and international bestselling author Mel Robbins. These programs are just part of the company’s extensive podcast content offering, which includes five of the top 20 most listened to podcasts in the U.S., per Edison Research, and illustrate SiriusXM’s continued commitment to both podcast creators and brands looking to tap into the medium.