Investment Strategy - The individual follows value investing principles laid out by Benjamin Graham, Phil Fisher, Charlie Munger, and Warren Buffett [1] - The individual has developed a simple and practical way to structure an investment portfolio for early retirees, as outlined in the article "The Portfolio For Early Retirees" [1] - The individual strives to gather above-average knowledge about stock picks, which requires significant time investment [1] Achievements and Recognition - The individual won the Seeking Alpha Contrarian Contest in 2015 and was among the winners of several other competitions in later years [1] - The individual has been a regular contributor to Seeking Alpha Pro since its inception [1] Professional Background - The individual has a diverse professional background, including roles as a sales agent, project manager, translator, computer consultant, and software engineer [1] - The individual has built a house with their own hands and has published books and essays on literature, philosophy, and art [1] - The individual has written for various magazines in different countries [1] Portfolio Management - The individual has been managing a portfolio for friends and themselves since early retirement in 2004 [1] - The individual manages the portfolio full-time and focuses on in-depth research rather than frequent new investment ideas [1]

SIRIUS XM HOLDINGS INC. OCTOBER 31, 2024 1 THIRD QUARTER 2024 OPERATING AND FINANCIAL RESULTS | --- | --- ...

Core Viewpoint - Sirius XM reported a revenue decline of 4.4% year-over-year for the quarter ended September 2024, with an EPS of -$0.84 compared to $0.90 in the same quarter last year, indicating significant underperformance against analyst expectations [1]. Financial Performance - Revenue for the quarter was $2.17 billion, missing the Zacks Consensus Estimate of $2.19 billion by 0.91% [1]. - The EPS surprise was -212.00%, with the consensus EPS estimate being $0.75 [1]. Subscriber Metrics - Net additions of self-pay subscribers were 14, exceeding the estimated -5 [3]. - Ending subscribers for Pandora and Off-platform were 5,875, slightly above the estimate of 5,873 [3]. - Ending subscribers for Sirius XM were 33,156, below the estimate of 33,220 [3]. Average Revenue Per User (ARPU) - ARPU for Sirius XM was $15.16, slightly below the estimate of $15.24 [3]. Revenue Breakdown - Total revenue for Sirius XM was $1.63 billion, compared to the average estimate of $1.64 billion, representing a year-over-year decline of 5.5% [3]. - Total revenue for Pandora and Off-platform was $544 million, below the average estimate of $559.63 million, with a year-over-year change of -1.1% [3]. - Subscriber revenue for Sirius XM was $1.51 billion, compared to the estimate of $1.52 billion, reflecting a -5.5% change year-over-year [3]. - Advertising revenue for Sirius XM was $41 million, slightly below the estimate of $41.85 million, with a year-over-year change of -2.4% [3]. - Equipment revenue for Sirius XM was $43 million, compared to the average estimate of $46.78 million, representing a -12.2% year-over-year change [3]. - Subscriber revenue for Pandora and Off-platform was $135 million, matching the estimate of $135.74 million, with a year-over-year increase of 2.3% [3]. - Advertising revenue for Pandora and Off-platform was $409 million, below the estimate of $423.89 million, reflecting a -2.2% year-over-year change [3]. Stock Performance - Sirius XM shares have returned +15.9% over the past month, outperforming the Zacks S&P 500 composite's +1% change [3]. - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3].

Financial Data and Key Metrics Changes - Sirius XM reported revenue of $2.17 billion for Q3 2024, a decrease of 4% year-over-year, primarily due to a 5% drop in subscriber revenue to $1.65 billion and a 2% decline in advertising revenue to $450 million [24][26] - Adjusted EBITDA for the quarter was $693 million, down 7% year-over-year, resulting in a stable adjusted EBITDA margin of 32% [28] - Free cash flow for Q3 was $93 million, a decrease attributed to increased Liberty transaction-related costs and lower cash receipts [36] Business Line Data and Key Metrics Changes - The Sirius XM segment generated $1.63 billion in revenue, with subscriber revenue of $1.51 billion, reflecting a 5% decline year-over-year [29] - The Pandora and Off-Platform segment's revenue remained flat at $544 million, with ad revenue declining by 2% to $409 million [32] Market Data and Key Metrics Changes - Advertising revenue was softer than expected, with a modest decline of $10 million year-over-year, attributed to increased competition and a shorter election cycle [26][9] - Podcast revenue increased by 6%, indicating demand outpacing supply [26] Company Strategy and Development Direction - The company aims to achieve long-term targets of 50 million subscribers and $1.8 billion in free cash flow by leveraging a free ad-supported tier and a premium interactive bundle [6][7] - New pricing strategies, including a $9.99 entry point for streaming and in-car services, are designed to attract price-sensitive customers while maintaining existing subscriber value [16][17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the advertising business's long-term potential despite near-term challenges, emphasizing ongoing investments in technology and partnerships [9][20] - The company is focused on enhancing customer engagement and retention through personalized marketing and improved content delivery [14][67] Other Important Information - A noncash impairment charge of approximately $3.36 billion was recorded due to the Liberty Media transaction, which does not impact cash flow or liquidity [34] - The company is committed to maintaining a disciplined financial culture and achieving a $200 million cost savings target for 2024 [28] Q&A Session Summary Question: Can you expand on balancing the opportunity to expand your TAM and the risk of pricing down your existing subscriber base? - Management noted that initial testing of new pricing strategies shows higher retention post-trial due to transparency and lower price points [46] Question: Can you discuss your overall podcast strategy and the profitability of this division? - Management highlighted the importance of building a critical mass in podcasting to supplement ad sales, with positive early results from new podcast agreements [54] Question: What insights can you provide on self-pay net adds and engagement? - Management reported that lower churn and higher automotive volumes contributed to net adds, with ongoing initiatives expected to improve retention [63] Question: How do you view the state of the ad market heading into Q4? - Management acknowledged headwinds in the ad market but emphasized growth in programmatic and podcasting segments, with a focus on better targeting and measurement [72][75] Question: What is the outlook for ARPU and pricing increases? - Management confirmed a trajectory for rate increases every other year, with plans to enhance value in full-price packages before any price actions [89]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 2024 OR ☐TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM __________ TO ________ COMMISSION FILE NUMBER 333-276758 Sirius XM Holdings Inc. (Exact name of registrant as specified in its charter) Delaware 93-4680139 (State or ...

Earnings Performance - Sirius XM reported a quarterly loss of $0.84 per share, missing the Zacks Consensus Estimate of $0.75, representing an earnings surprise of -212% [1] - The company's earnings per share (EPS) for the same quarter last year was $0.90 [1] - Over the last four quarters, Sirius XM has surpassed consensus EPS estimates two times [2] Revenue Performance - Sirius XM posted revenues of $2.17 billion for the quarter ended September 2024, missing the Zacks Consensus Estimate by 0.91% [2] - This compares to year-ago revenues of $2.27 billion [2] - The company has topped consensus revenue estimates just once over the last four quarters [2] Stock Performance - Sirius XM shares have lost about 49.9% since the beginning of the year, compared to the S&P 500's gain of 21.9% [3] Earnings Outlook - The current consensus EPS estimate for the coming quarter is $0.80 on $2.22 billion in revenues [7] - For the current fiscal year, the consensus EPS estimate is $3.04 on $8.75 billion in revenues [7] - The estimate revisions trend for Sirius XM is mixed, translating into a Zacks Rank 3 (Hold) [6] Industry Context - Sirius XM belongs to the Zacks Broadcast Radio and Television industry, which is currently in the bottom 19% of the 250 plus Zacks industries [8] - The top 50% of Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1 [8] Peer Comparison - Saga Communications, another stock in the same industry, is expected to post quarterly earnings of $0.13 per share, representing a year-over-year change of -71.1% [9] - Saga Communications' revenues are expected to be $28.7 million, down 1.5% from the year-ago quarter [10]

Revenue and Financial Performance - Total revenue for Q3 2024 was $2.17 billion, a 4% decline compared to Q3 2023[1] - SiriusXM revenue declined 5% year-over-year to $1.6 billion, with ARPU dropping to $15.16[6] - Pandora and Off-Platform revenue decreased 1% to $544 million, with advertising revenue down 2% to $409 million[12] - Full-year 2024 revenue guidance adjusted to $8.675 billion, with adjusted EBITDA expected at $2.7 billion and free cash flow at $1 billion[17] - Total revenue for the three months ended September 30, 2024, decreased by 4% to $2.171 billion compared to $2.271 billion in 2023[23] - Sirius XM subscriber revenue declined by 5% to $1.510 billion for the three months ended September 30, 2024, from $1.597 billion in 2023[23] - Pandora and Off-platform subscriber revenue increased by 2% to $135 million for the three months ended September 30, 2024, from $132 million in 2023[23] Profitability and Margins - Adjusted EBITDA of $693 million, representing a 32% margin, a 7% decline year-over-year[2] - Pandora and Off-Platform gross profit increased 4% to $187 million, with a gross margin of 34%[13] - Adjusted EBITDA for the three months ended September 30, 2024, was $693 million, a 7% decrease from $747 million in 2023[23] - Sirius XM gross profit decreased by 7% to $969 million for the three months ended September 30, 2024, from $1.047 billion in 2023[23] - Pandora and Off-platform gross profit increased by 4% to $187 million for the three months ended September 30, 2024, from $180 million in 2023[23] - Total company Adjusted EBITDA decreased by $54 million (7%) to $693 million for the three months ended September 30, 2024[27] Subscriber Metrics - SiriusXM added 14,000 self-pay subscribers in Q3 2024, with self-pay churn at 1.6%[5] - Subscribers to the Cloud Cover music programming service are now included in Pandora's subscriber count[25] - Sirius XM self-pay subscribers decreased by 314,000 (1%) to 31,497,000 as of September 30, 2024[26] - Pandora and Off-platform monthly active users declined by 2,779,000 (6%) to 43,721,000 as of September 30, 2024[26] - Pandora and Off-platform self-pay subscribers decreased by 285,000 (5%) to 5,875,000 as of September 30, 2024[26] - Sirius XM Canada subscribers decreased by 102,000 (4%) to 2,559,000 as of September 30, 2024[26] Costs and Expenses - Total cost of services decreased by 3% to $1.015 billion for the three months ended September 30, 2024, from $1.044 billion in 2023[23] - Additions to property and equipment increased from $521 million in 2023 to $563 million in 2024[20] - Sirius XM SAC per installation increased by $2.21 (18%) to $14.67 for the three months ended September 30, 2024[27] - Total share-based payment expense for the three months ended September 30, 2024, was $58 million, compared to $57 million in 2023[24] Cash Flow and Liquidity - Cash and cash equivalents dropped from $306 million in December 2023 to $127 million in September 2024[19] - Net cash provided by operating activities decreased from $1,301 million in 2023 to $1,062 million in 2024[20] - Revolving credit facility borrowings rose from $1,670 million in 2023 to $1,841 million in 2024[20] - Total cash, cash equivalents, and restricted cash decreased from $335 million in 2023 to $135 million in 2024[21] - Free cash flow decreased by $165 million (64%) to $93 million for the three months ended September 30, 2024[27] - Total company net cash provided by operating activities decreased by $135 million to $309 million for the three months ended September 30, 2024[30] Impairments and Losses - Net loss of $2.96 billion due to a non-cash impairment charge of $3.36 billion related to the Liberty Media transaction[1] - Net income for the nine months ended September 30, 2024, was a loss of $2,362 million compared to a profit of $760 million in the same period in 2023[20] - Net loss for the three months ended September 30, 2024, was $2.958 billion, compared to a net income of $291 million in 2023[23] - Non-cash impairment and restructuring costs surged from $21 million in 2023 to $3,355 million in 2024[20] Assets and Liabilities - Total assets decreased from $30,056 million in December 2023 to $27,483 million in September 2024[19] - Goodwill decreased from $15,209 million in December 2023 to $12,390 million in September 2024[19] - Retained earnings dropped from $15,353 million in December 2023 to $10,889 million in September 2024[19] Operational and Strategic Initiatives - SiriusXM introduced new in-app features and a seamless app download for in-car subscribers to enhance user experience[10] - The company remains on track to achieve $200 million in cost savings for the full year 2024[14] - SiriusXM is migrating its billing system and payment processing function to a new service provider[32] - The company uses artificial intelligence in its business, with potential risks including reputational harm and legal liability[32] Market and Competitive Landscape - SiriusXM reaches a combined monthly audience of approximately 150 million listeners[32] - Pandora's ad-supported business has experienced a substantial and consistent loss of monthly active users[32] - The company faces significant competition, which is likely to increase over time[32] - SiriusXM relies on third parties for the operation of its business, and their failure could adversely affect operations[32] - The company may not realize the benefits of acquisitions or other strategic investments and initiatives[32] - SiriusXM's Pandora and Off-platform business generates a significant portion of its revenues from advertising[32] - SiriusXM has significant indebtedness, and its subsidiaries' debt contains certain covenants that restrict operations[32] - The company may face lawsuits, incur liability, or suffer reputational harm due to content published through its services[32]

NEW YORK, Oct. 31, 2024 /PRNewswire/ -- SiriusXM (NASDAQ: SIRI) today reported operating and financial results for the third quarter of 2024, which have been posted to the Investor Relations section of the SiriusXM website at https://investor.siriusxm.com.About Sirius XM Holdings Inc.SiriusXM is the leading audio entertainment company in North America with a portfolio of audio businesses including its flagship subscription entertainment service SiriusXM; the ad-supported and premium music streaming services ...

Core Viewpoint - Sirius XM (SIRI) has received an upgrade to a Zacks Rank 2 (Buy) due to an upward trend in earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system is based on changes in a company's earnings picture, which is crucial for predicting near-term stock price movements [2][4]. - The correlation between earnings estimate revisions and stock price movements is strong, indicating that institutional investors' actions based on these estimates can lead to significant price changes [4][6]. Sirius XM's Earnings Outlook - For the fiscal year ending December 2024, Sirius XM is expected to earn $3.22 per share, reflecting a 0.6% increase from the previous year [8]. - Over the past three months, the Zacks Consensus Estimate for Sirius XM has increased by 5.2%, indicating positive sentiment among analysts [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 (Strong Buy) stocks historically generating an average annual return of +25% since 1988 [7]. - Sirius XM's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [10].

Sirius XM (SIRI) is set to report third-quarter 2024 earnings on Oct. 31.The Zacks Consensus Estimate for third-quarter earnings has moved south by 2.4% to 80 cents per share in the past 30 days. Image Source: Zacks Investment ResearchThe consensus mark for revenues is pegged at $2.19 billion, indicating a 3.52% decrease from the year-ago quarter’s reported figure.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.On Sept. 10, SiriusXM started operating as an independent public company w ...