January 31, 2025
Sirius XM Holdings SIRI reported fourth-quarter 2024 earnings of 83 cents per share and beat the Zacks Consensus Estimate by 29.69%. The figure declined 7.8% on a year-over-year basis.
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Total revenues, on a reported basis, declined 4.3% year over year to $2.19 billion and missed the consensus mark by 0.73%.
Sirius XM has completed its transaction with Liberty Media and now emerged as a fully independent public company. It has also successfully achieved its full-year goal of $200 million in gross savings.
Sirius XM Holdings Inc. price-consensus-eps-surprise-chart | Sirius XM Holdings Inc. Quote
Subscriber revenues (74.6% of total revenues) declined 5.1% from the year-ago quarter to $1.63 billion, beating the Zacks Consensus Estimate by 0.15%.
Meanwhile, advertisement revenues (21.8% of total revenues) decreased 0.4% year over year to $477 million. The figure missed the Zacks Consensus Estimate by 0.45%. This decline was due to increasing new CTV supply in the market, increasing advertiser spending on performance products and low podcast inventory.
Equipment revenues (1.9% of total revenues) decreased 17.6% year over year to $42 million. The figure missed the Zacks Consensus Estimate by 10.94%.
Other revenues (1.6% of total revenues) decreased 2.7% year over year to $36 million and missed the Zacks Consensus Estimate by 0.86%.
The Sirius XM Standalone segment’s revenues (74% of total revenues) were $1.62 billion, down 5.6% year over year.
Total subscriber base declined 2% year over year to 33.23 million, missing the Zacks Consensus Estimate by 0.32%.
Revenues declined due to a 5.4% drop in subscriber revenues, which amounted to $1.5 billion. Advertising revenues were $43 million, flat year over year. Equipment revenues declined 17.6% year over year to $42 million. Other revenues declined 2.7% year over year to $36 million.
Self-pay subscribers decreased 1% year over year to 31.65 million. Net subscriber additions in the reported quarter were 70K against a net loss of 94K in the year-ago period.
Average revenue per user amounted to $15.11, down 3% year over year. The figure missed the Zacks Consensus Estimate by 0.3%.
Pandora and OFF platform’s revenues (26% of total revenues) declined 0.5% year over year to $568 million, owing to a 0.5% decrease in advertising revenues, which totaled $434 million. Subscriber revenues decreased 0.7% year over year to $134 million.
Self-pay subscribers decreased 5% year over year, ending the fourth quarter at 5.77 million. The figure missed the Zacks Consensus Estimate by 0.55%.
Total ad-supported listener hours were 2.39 billion in the fourth quarter, down 6% year over year. Advertising revenue per thousand listener hours was $108.37, down 3% year over year.
In the fourth quarter, total operating expenses decreased by 8.2% year over year to $1.68 billion. The operating expenses include legacy Liberty Sirius XM operating expenses.
Adjusted EBITDA declined 3.8% year over year at $688 million.
As of Dec. 31, 2024, cash and cash equivalents were $162 million compared with $127 million as of Sept. 30, 2024.
Long-term debt, as of Sept. 30, 2024, was $10.31 billion compared with $10.14 billion as of Sept. 30, 2024.
For the fourth quarter, cash flow from operations was $1.71 billion compared with $1.06 billion in the year-ago quarter.
Free cash flow was $516 million for the reported quarter, up from $402 million reported in the prior-year period.
Revenues are expected to be $8.5 billion. Adjusted EBITDA is projected to be $2.6 billion. Free cash flow is expected to be $1.15 billion.
Currently, Sirius XM carries a Zacks Rank #3 (Hold).
Akamai Technologies AKAM, AMETEK AME and DoorDash DASH are some better-ranked stocks that investors can consider in the broader sector. AKAM, AME and DASH carry a Zacks Rank #2 (Buy) each at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here .
Akamai Technologies shares have lost 18.2% in the trailing 12 months. AKAM is set to report its fourth-quarter 2024 results on Feb. 20.
AMETEK shares have gained 12.1% in the trailing 12 months. AME is set to report its fourth-quarter 2024 results on Feb. 4.
DoorDash shares have surged 75.8% in the trailing 12 months. DASH is set to report its fourth-quarter 2024 results on Feb. 11.
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