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Sirius XM (SIRI) Q3 Earnings Beat Estimates, Revenues Miss
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Sirius XM Holdings (SIRI - Free Report) reported third-quarter 2023 earnings of 9 cents per share, which beat the Zacks Consensus Estimate by 12.5% and increased 50% year over year.
Total revenues on a reported basis declined 0.4% year over year to $2.27 billion and missed the consensus mark by 0.71%.
Subscriber revenues (76.1% of total revenues) declined 0.3% from the year-ago quarter to $1.72 billion. The figure missed the Zacks Consensus Estimate by 0.71%.
Meanwhile, advertisement revenues (20.3%) gained 0.7% year over year to $460 million. The figure beat the Zacks Consensus Estimate by 2.21%.
Equipment revenues (2.2% of total revenues) decreased 2% year over year to $49 million. The figure beat the Zacks Consensus Estimate by 3.12%.
Other revenues (1.5% of total revenues) decreased 15.4% from the year-ago quarter to $33 million and missed the Zacks Consensus Estimate by 15.28%.
Sirius XM Holdings Inc. Price, Consensus and EPS Surprise
Sirius XM segment revenues (75.8% of total revenues) were $1.72 billion, down 1.2% year over year.
Total subscriber base declined 0.6% year over year to 33.96 million, missing the Zacks Consensus Estimate by 0.09%.
Revenues witnessed a decline due to a 0.2% drop in average revenue per user, which amounted to $15.69. The figure missed the Zacks Consensus Estimate by 1.73%.
Subscriber revenues decreased 0.4% year over year to $1.59 billion. Advertising revenues were $42 million, down 16% year over year. Equipment revenues declined 2% year over year to $49 million. Other revenues decreased 15.4% year over year to $33 million.
Self-pay subscribers increased 3% year over year to 31.81 million. Net subscriber loss in the reported quarter was 94K compared with net additions of 138K in the year-ago period.
Pandora & OFF Platform Details
Pandora and OFF platform’s revenues (24.2% of total revenues) gained 2.2% year over year to $550 million, owing to a 2.7% increase in advertising revenues that totaled $418 million and subscriber revenues that improved 0.8% year over year to $132 million.
Self-pay subscribers of the Pandora Plus and Pandora Premium services decreased modestly in the third quarter of 2023 to end the period at 6.1 million.
Total subscribers decreased by 2.4% year over year, ending the third quarter at 6.11 million. The figure missed the Zacks Consensus Estimate by 1.45%.
Total ad-supported listener hours were 2.64 billion in the third quarter, down 4% year over year. Advertising revenue per thousand listener hours were $104.33, up 1% year over year.
Operating Details
In the third quarter, total operating expenses decreased 5.8% year over year to $1.7 billion.
Adjusted EBITDA increased 3.8% year over year to $747 million.
Balance Sheet & Cash Flow
As of Sep 30, 2023, cash and cash equivalents were $53 million compared with $51 million as of Jun 30, 2023.
The long-term debt, as of Sep 30, 2023, was $8.82 billion compared with $8.9 billion as of Jun 30, 2023.
For the third quarter, cash flow from operations was $478 million compared with $412 million in the year-ago quarter.
Free cash flow was $291 million for the third quarter of 2023, down from $329 million in the prior-year period.
2023 Guidance
Revenues are expected to be $9 billion. Adjusted EBITDA is expected to be $2.75 billion. Free cash flow is expected to be $1.15 billion.
Zacks Rank & Stocks to Consider
Currently, Sirius XM carries a Zacks Rank #4 (Sell).
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Sirius XM (SIRI) Q3 Earnings Beat Estimates, Revenues Miss
Sirius XM Holdings (SIRI - Free Report) reported third-quarter 2023 earnings of 9 cents per share, which beat the Zacks Consensus Estimate by 12.5% and increased 50% year over year.
Total revenues on a reported basis declined 0.4% year over year to $2.27 billion and missed the consensus mark by 0.71%.
Subscriber revenues (76.1% of total revenues) declined 0.3% from the year-ago quarter to $1.72 billion. The figure missed the Zacks Consensus Estimate by 0.71%.
Meanwhile, advertisement revenues (20.3%) gained 0.7% year over year to $460 million. The figure beat the Zacks Consensus Estimate by 2.21%.
Equipment revenues (2.2% of total revenues) decreased 2% year over year to $49 million. The figure beat the Zacks Consensus Estimate by 3.12%.
Other revenues (1.5% of total revenues) decreased 15.4% from the year-ago quarter to $33 million and missed the Zacks Consensus Estimate by 15.28%.
Sirius XM Holdings Inc. Price, Consensus and EPS Surprise
Sirius XM Holdings Inc. price-consensus-eps-surprise-chart | Sirius XM Holdings Inc. Quote
Sirius XM Standalone Details
Sirius XM segment revenues (75.8% of total revenues) were $1.72 billion, down 1.2% year over year.
Total subscriber base declined 0.6% year over year to 33.96 million, missing the Zacks Consensus Estimate by 0.09%.
Revenues witnessed a decline due to a 0.2% drop in average revenue per user, which amounted to $15.69. The figure missed the Zacks Consensus Estimate by 1.73%.
Subscriber revenues decreased 0.4% year over year to $1.59 billion. Advertising revenues were $42 million, down 16% year over year. Equipment revenues declined 2% year over year to $49 million. Other revenues decreased 15.4% year over year to $33 million.
Self-pay subscribers increased 3% year over year to 31.81 million. Net subscriber loss in the reported quarter was 94K compared with net additions of 138K in the year-ago period.
Pandora & OFF Platform Details
Pandora and OFF platform’s revenues (24.2% of total revenues) gained 2.2% year over year to $550 million, owing to a 2.7% increase in advertising revenues that totaled $418 million and subscriber revenues that improved 0.8% year over year to $132 million.
Self-pay subscribers of the Pandora Plus and Pandora Premium services decreased modestly in the third quarter of 2023 to end the period at 6.1 million.
Total subscribers decreased by 2.4% year over year, ending the third quarter at 6.11 million. The figure missed the Zacks Consensus Estimate by 1.45%.
Total ad-supported listener hours were 2.64 billion in the third quarter, down 4% year over year. Advertising revenue per thousand listener hours were $104.33, up 1% year over year.
Operating Details
In the third quarter, total operating expenses decreased 5.8% year over year to $1.7 billion.
Adjusted EBITDA increased 3.8% year over year to $747 million.
Balance Sheet & Cash Flow
As of Sep 30, 2023, cash and cash equivalents were $53 million compared with $51 million as of Jun 30, 2023.
The long-term debt, as of Sep 30, 2023, was $8.82 billion compared with $8.9 billion as of Jun 30, 2023.
For the third quarter, cash flow from operations was $478 million compared with $412 million in the year-ago quarter.
Free cash flow was $291 million for the third quarter of 2023, down from $329 million in the prior-year period.
2023 Guidance
Revenues are expected to be $9 billion. Adjusted EBITDA is expected to be $2.75 billion. Free cash flow is expected to be $1.15 billion.
Zacks Rank & Stocks to Consider
Currently, Sirius XM carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the Consumer Discretionary sector are PlayAGS (AGS - Free Report) , AMark Precious Metals (AMRK - Free Report) and American Public Education (APEI - Free Report) . American Public Education sports a Zacks Rank #1 (Strong Buy), while PlayAGS and AMark Precious Metals carry a Zacks Rank #2 (Buy) each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
PlayAGS, AMark Precious Metals and American Public Education are each scheduled to report the quarterly results on Nov 7.
The Zacks Consensus Estimate for AGS’ third-quarter 2023 earnings per share is pegged at 1 cent, up from a loss of 1 cent over the past 30 days.
The Zacks Consensus Estimate for AMRK’s third-quarter 2023 earnings is pegged at $1.88 per share, up 1.1% over the past 30 days.
The Zacks Consensus Estimate for APEI’ third-quarter 2023 loss is pegged at 25 cents per share, which has remained unchanged over the past 30 days.