SiriusXM added 22,000 paid subscribers in the second quarter, reaching 33 million total, and raised its full-year guidance, even as shares fell 13% in pre-market trading after adjusted earnings slightly missed expectations.
The satellite radio company reported revenue of $2.16 billion, up 1% year over year and above expectations, along with net income of $239 million. Adjusted earnings per share came in at $0.70, a 23% increase from a year earlier but a slight miss versus analyst forecasts. Monthly churn improved to 1.4%, the lowest level in company history.
“Since resetting our strategy, we’ve been focused on building a stronger, more durable SiriusXM, and our second quarter performance demonstrates that strategy is delivering meaningful results,” said CEO Jennifer Witz.
“We achieved positive second-quarter self-pay net additions for the first time in four years, strengthened engagement and retention across our subscriber base, and continue to build momentum by delivering premium content and experiences that deepen our connection with listeners while creating new opportunities for advertisers. These results reflect disciplined execution and give us the confidence to raise our full-year guidance for revenue, Adjusted EBITDA, and free cash flow. We remain focused on creating long-term value by investing in the areas that strengthen our listener relationships and further differentiate SiriusXM.”
Off-platform advertising revenue, which includes podcasting and Pandora, rose 5% year over year to $413 million, driven by strength in podcasting, higher programmatic demand and technology fees, partially offset by softer streaming music advertising.
Podcasting revenue alone grew 30% year over year. The company has partnered with Apple to launch a new video podcast advertising service and with YouTube to become its exclusive advertising representative for inventory in the U.S.
In the past quarter, SiriusXM launched ABC News Live and 20/20 True Crime channels, added The John Kasich Show, and hosted Vice President JD Vance on The Megyn Kelly Show. It also renewed partnerships with Comedy Bang! Bang! and The School of Greatness and announced A History of the United States in 100 Objects, an original podcast produced with BBC Studios.
Separately, the company announced that Wayne D. Thorsen, executive vice president and chief operating officer, will leave effective Friday. SiriusXM does not intend to appoint a successor chief operating officer at this time.