Sirius XM Holdings (SIRI - Free Report) reported second-quarter 2021 earnings of 10 cents per share, which beat the Zacks Consensus Estimate by 42.8% and increased 100% year over year.
Total revenues, on a reported basis, increased 15.2% year over year to $2.15 billion. The top line beat the consensus mark by 4.3%. On a pro-forma basis, revenues increased 15.1% year over year.
Subscriber revenues (76% of total revenues) rose 4% from the year-ago quarter to $1.64 billion.
Advertisement revenues (19.9% of total revenues) increased 81.8% year over year to $429 million. Equipment revenues (2.4% of total revenues) surged 104% to $51 million.
Other revenues (1.8% of total revenues) increased 2.7% from the year-ago quarter to $38 million.
Sirius XM Standalone Details
Sirius XM segment pro-forma revenues were $1.64 billion, up 6.7% year over year. While the total subscriber base increased 0.7% to 34.5 million, the company witnessed growth of 4.4% in ARPU, which was $14.57.
Self-pay subscribers increased 3% year over year to 31.3 million. The company lost 23K net self-pay subscribers in the reported quarter.
Sirius XM traffic users were at 9.2 million, down 2% year over year. Also, Canada subscribers decreased 1% to 2.5 million.
Average self-pay monthly churn rate was 1.5% in the second quarter, down 10 basis points year over year.
Subscriber revenues rose 3.8% year over year to $1.5 billion. Equipment revenues increased 104% to $51 million.
Advertising revenues were $46 million, up 84% year over year. Other revenues increased 2.7% to $38 million.
Pandora Details
Pandora’s pro-forma revenues increased 53.6% year over year to $516 million owing to 81.5% growth in advertising revenues, which totaled $383 million. Subscriber revenues climbed 6.4% to $133 million.
The growth in ad revenues was due to increase in second-quarter monetization to $100.4 per thousand hours, up 81.7% year over year.
However, ARPU decreased 0.4% year over year to $6.67.
Monthly active users were 55.1 million at the end of the reported quarter, down from 59.6 million in the year-ago quarter. Ad-supported listener hours declined 7.9% to 3.03 billion.
Pandora exited the second quarter with 6.51 million self-pay subscribers, up 4.2% year over year.
Operating Details
In the second quarter, total operating expenses increased 2.7% year over year to $1.5 billion.
Revenue share and royalty costs were up 12.4% year over year to $662 million. Programming & content costs were $128 million, up 24.3%. Transmission costs increased 22% year over year to $50 million.
Cost of equipment remained flat year over year at $4 million. Customer service & billing costs increased 4.1% to $126 million.
Subscriber acquisition costs increased 85.4% year over year to $89 million. Engineering, design and development expenses increased 13.5% to $59 million.
Sales and marketing expenses increased 12.9% to $227 million. General and administrative costs increased 11.8% to $114 million.
Adjusted EBITDA increased 13.8% year over year to $700 million.
Balance Sheet
As of Jun 30, 2021, cash and cash equivalents were $1.12 billion compared with $59 million as of Mar 31, 2021.
Long-term debt, as of Jun 30, 2021, was $8.8 billion compared with $8.5 billion as of Mar 31, 2021.
At the end of the second quarter, Sirius XM’s net debt to trailing 12-month adjusted EBITDA ratio was 3.2.
2021 Guidance
Revenues are expected to be approximately $8.55 billion. Adjusted EBITDA is expected to be around $2.6 billion.
The company anticipates adding around 1.1 million Sirius XM self-pay net subscribers in 2021.
Free cash flow is expected to be approximately $1.7 billion.
Zacks Rank & Other Stocks to Consider
Currently, Sirius XM carries a Zacks Rank #2 (Buy).
Wolverine World Wide, Inc. (WWW - Free Report) , Brunswick Corporation (BC - Free Report) and Deckers Outdoor Corporation (DECK - Free Report) are some other top-ranked stocks in the broader consumer discretionary sector, each carrying a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
All these three companies are scheduled to report quarterly results on Jul 29.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Sirius XM Holdings (SIRI - Free Report) reported second-quarter 2021 earnings of 10 cents per share, which beat the Zacks Consensus Estimate by 42.8% and increased 100% year over year.
Total revenues, on a reported basis, increased 15.2% year over year to $2.15 billion. The top line beat the consensus mark by 4.3%. On a pro-forma basis, revenues increased 15.1% year over year.
Subscriber revenues (76% of total revenues) rose 4% from the year-ago quarter to $1.64 billion.
Advertisement revenues (19.9% of total revenues) increased 81.8% year over year to $429 million. Equipment revenues (2.4% of total revenues) surged 104% to $51 million.
Other revenues (1.8% of total revenues) increased 2.7% from the year-ago quarter to $38 million.
Sirius XM Standalone Details
Sirius XM segment pro-forma revenues were $1.64 billion, up 6.7% year over year. While the total subscriber base increased 0.7% to 34.5 million, the company witnessed growth of 4.4% in ARPU, which was $14.57.
Self-pay subscribers increased 3% year over year to 31.3 million. The company lost 23K net self-pay subscribers in the reported quarter.
Sirius XM traffic users were at 9.2 million, down 2% year over year. Also, Canada subscribers decreased 1% to 2.5 million.
Average self-pay monthly churn rate was 1.5% in the second quarter, down 10 basis points year over year.
Subscriber revenues rose 3.8% year over year to $1.5 billion. Equipment revenues increased 104% to $51 million.
Advertising revenues were $46 million, up 84% year over year. Other revenues increased 2.7% to $38 million.
Pandora Details
Pandora’s pro-forma revenues increased 53.6% year over year to $516 million owing to 81.5% growth in advertising revenues, which totaled $383 million. Subscriber revenues climbed 6.4% to $133 million.
The growth in ad revenues was due to increase in second-quarter monetization to $100.4 per thousand hours, up 81.7% year over year.
However, ARPU decreased 0.4% year over year to $6.67.
Monthly active users were 55.1 million at the end of the reported quarter, down from 59.6 million in the year-ago quarter. Ad-supported listener hours declined 7.9% to 3.03 billion.
Pandora exited the second quarter with 6.51 million self-pay subscribers, up 4.2% year over year.
Operating Details
In the second quarter, total operating expenses increased 2.7% year over year to $1.5 billion.
Revenue share and royalty costs were up 12.4% year over year to $662 million. Programming & content costs were $128 million, up 24.3%. Transmission costs increased 22% year over year to $50 million.
Cost of equipment remained flat year over year at $4 million. Customer service & billing costs increased 4.1% to $126 million.
Subscriber acquisition costs increased 85.4% year over year to $89 million. Engineering, design and development expenses increased 13.5% to $59 million.
Sales and marketing expenses increased 12.9% to $227 million. General and administrative costs increased 11.8% to $114 million.
Adjusted EBITDA increased 13.8% year over year to $700 million.
Balance Sheet
As of Jun 30, 2021, cash and cash equivalents were $1.12 billion compared with $59 million as of Mar 31, 2021.
Long-term debt, as of Jun 30, 2021, was $8.8 billion compared with $8.5 billion as of Mar 31, 2021.
At the end of the second quarter, Sirius XM’s net debt to trailing 12-month adjusted EBITDA ratio was 3.2.
2021 Guidance
Revenues are expected to be approximately $8.55 billion. Adjusted EBITDA is expected to be around $2.6 billion.
The company anticipates adding around 1.1 million Sirius XM self-pay net subscribers in 2021.
Free cash flow is expected to be approximately $1.7 billion.
Zacks Rank & Other Stocks to Consider
Currently, Sirius XM carries a Zacks Rank #2 (Buy).
Wolverine World Wide, Inc. (WWW - Free Report) , Brunswick Corporation (BC - Free Report) and Deckers Outdoor Corporation (DECK - Free Report) are some other top-ranked stocks in the broader consumer discretionary sector, each carrying a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
All these three companies are scheduled to report quarterly results on Jul 29.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Get the latest research report on DECK - FREE
Get the latest research report on SIRI - FREE
Get the latest research report on WWW - FREE
Get the latest research report on BC - FREE