In the first quarter of 2024, SiriusXM faced some challenges in its subscriber base. Here are the key figures:
Satellite Radio Subscribers: The company experienced a loss of 445,000 satellite radio subscribers during this period. This decline may be attributed to various factors, including competition from streaming services and shifts in consumer preferences.
Pandora Subscribers: Pandora, which is part of the SiriusXM portfolio, also saw a decrease. The platform lost 64,000 subscribers during the same quarter.
SiriusXM today announced first quarter 2024 financial results, including revenue of $2.16 billion, an increase of 1% compared to the first quarter in 2023. The company recorded net income of $265 million in the first quarter of 2024 compared to $233 million in the prior year’s quarter. Net income per diluted common share was $0.07 in the first quarter of 2024 compared to $0.06 in the first quarter of 2023. Additionally, the company reported that its ad revenue increased 7% compared to the same period in 2023, offsetting a 1% drop in subscription revenue in the same 2023 period. Adjusted EBITDA was $650 million in the first quarter of 2024, up 4% compared to the first quarter of 2023 with a 30% EBITDA margin, the result of higher revenue and lower fixed costs.
"I'm pleased to share solid first quarter financial results, underscored by record ad revenue for a first quarter and strong consumer engagement with our newly-released content," stated CEO Jennifer Witz. “And while still in its infancy, we are starting to see promising early indicators from new users of our recently rebuilt SiriusXM app. We have significantly stepped-up the pace of experimentation and innovation, a critical lever in our mission to deliver improved subscriber performance while maintaining a disciplined approach to spending in our focus on profitability.”
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| Jennifer Witz |
"Our reiterated guidance for revenue, adjusted EBITDA, and free cash flow reflect the predictability of our business model and the levers we have for cost efficiencies, even as we continue the investments in our satellites and next generation platform,” stated Tom Barry, Chief Financial Officer. “We continue to expect our subscriber results to improve from 2023, and we should see similar seasonality in 2024, with better year-over-year subscriber performance beginning in the back half of the year. Following the completion of the Liberty transaction, we plan to maintain our target leverage ratio of mid-to-low three times adjusted EBITDA and expect to be back in this range in the second half of 2025."
During a morning analyst call, Witz conceded the launch of the new SiriusXM streaming app for some longtime customers had been “disruptive,” but added innovation to reach younger subscribers beyond cars was growing. “Our early engagement metrics and other consumer signals we are following from the new SiriusXM app are improving. We are confident that our app platform relaunch and the product improvements coming in the car are putting us on the right path,” she told analysts about signing up new streaming-only subscribers.
SiriusXM executives on the call talked about continuing innovation to drive new subscriber growth and revenues. That included possibly putting some podcasts behind a paywall or offering a lower-cost and even free, ad-supported SiriusXM service.
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