SiriusXM Reports 4% Revenue Drop, Subscribers Pegged At 33M

SiriusXM today announced its third quarter 2024 financial results, reporting total revenue of $2.17 billion, a 4% decline compared to the same period in 2023. 

The company reported a net loss of  $2.96 billion. Prior to the close of the transaction, Liberty completed an assessment of the fair value of the company’s goodwill based on a sustained lower share price, as SiriusXM’s share price converged with those of the Liberty tracking stocks heading into the closing. As a result, a non-cash impairment charge of approximately $3.36 billion was recorded. This non-cash charge does not impact the company’s cash flow, ongoing operations, or liquidity. Earnings per common diluted share were ($8.74) for the third quarter of 2024, compared to $0.82 in the third quarter of 2023

SiriusXM Third Quarter 2024 Segment Highlights

SiriusXM Total Subscribers of 33 Million: SiriusXM added approximately 14,000 self-pay subscribers in the third quarter of 2024, reflecting a year-over-year improvement primarily driven by lower churn. Paid promotional subscribers decreased by 114,000 as certain automakers transitioned to unpaid or shorter-term paid promotional plans. Self-pay subscriber churn finished the 2024 quarter at 1.6%, consistent with the third quarter of 2023. The SiriusXM trial funnel stood at approximately 7.3 million at the end of the third quarter of 2024, down slightly from 7.4 million at the end of the second quarter of 2024 and 7.5 million in the third quarter of 2023.

 SiriusXM Revenue of $1.6 Billion: SiriusXM reported total revenue of $1.6 billion for the third quarter of 2024, a 5% decline year-over-year. This decrease was primarily driven by a smaller average base of self-pay subscribers and a $0.53 drop in average revenue per user (ARPU), bringing ARPU to $15.16. The decline in ARPU resulted from a higher proportion of subscribers on self-pay promotional and streaming-only plans.

SiriusXM Gross Profit of $969 Million and Gross Margin of 60%: Total cost of services at SiriusXM decreased by 2% to $658 million for the third quarter of 2024 compared to the corresponding quarter in 2023. Gross profit at SiriusXM totaled $969 million, a decrease of 7% compared to the  2023 period, producing a gross margin of 60%, one percentage point lower than the prior year period

Pandora and Off-Platform Self-Pay Subscribers of 5.9 Million:  Self-pay subscribers of the Pandora Plus and Pandora Premium services decreased by 76,000 during the third quarter of 2024 to end the period at 5.9 million. The decrease was driven by a decline in trial starts and lower retention due to price increases on certain self-pay plans.

Pandora and Off-Platform Revenue of $544 Million: Pandora and Off-Platform revenue totaled $544 million in the third quarter of 2024, a decrease of 1%, or $6 million, from $550 million in the same period of 2023. Advertising revenue in the segment reached $409 million, reflecting a  2% decline from the $418 million recorded in the prior year period and a 2% increase compared to the second quarter of 2024. Subscriber revenue reached $135 million in the 2024 third quarter, a 2% year-over-year increase. Pandora and Off-Platform Gross Profit of $187 Million.