Sirius XM Holdings Inc. (NASDAQ:SIRI) Q1 2022 Earnings Conference Call April 28, 2022 8:00 AM ET Company Participants Hooper Stevens - Senior Vice President, Investor Relations and Finance Jennifer Witz - Chief Executive Officer Sean Sullivan - Chief Financial Officer Scott Greenstein - President and Chief Content Officer Conference Call Participants Jessica Reif Ehrlich - Bank of America Securities Steven Cahall - Wells Fargo Barton Crockett - Rosenblatt Securities Kutgun Maral - RBC Capital Markets Stephe ...

Sirius XM Holdings, Inc. (NASDAQ:SIRI) Q4 2021 Earnings Conference Call February 1, 2022 8:00 AM ET Company Participants Hooper Stevens - VP, IR & Finance Jennifer Witz - CEO & Director Sean Sullivan - EVP & CFO Scott Greenstein - President and Chief Content Officer Conference Call Participants James Ratcliffe - Evercore ISI Bryan Kraft - Deutsche Bank Benjamin Swinburne - Morgan Stanley Jessica Reif Ehrlich - BofA Kutgun Maral - RBC Capital Markets Sebastiano Petti - JPMorgan Chase & Co. Steven Cahall - We ...

Subscriber Metrics - Sirius XM had approximately 34.0 million subscribers as of December 31, 2021, with subscriber revenue increasing by 4% to $6,084 million from $5,857 million in 2020[178][190] - Pandora had approximately 6.4 million subscribers as of December 31, 2021, with subscriber revenue increasing by 3% to $530 million from $515 million in 2020[180][193] - As of December 31, 2021, Sirius XM had approximately 34,033 subscribers, a decrease of 681 subscribers, or 2%, from 34,714 subscribers as of December 31, 2020[223] - Self-pay subscribers increased by 1,152 to 32,039, while paid promotional subscribers decreased by 1,833 to 1,994, resulting in a net subscriber addition of (681) for 2021[223] - Pandora had approximately 52,275 monthly active users as of December 31, 2021, a decrease of 6,607 users, or 11%, from 58,882 users as of December 31, 2020[227] Revenue Performance - Total consolidated revenue for the year ended December 31, 2021, was $8,696 million, an increase of 8% from $8,040 million in 2020[189][195] - Sirius XM's advertising revenue increased by 20% to $188 million in 2021, up from $157 million in 2020, driven by higher advertising on news and sports channels[189][191] - Pandora's advertising revenue increased by 30% to $1,542 million in 2021, up from $1,183 million in 2020, attributed to strong monetization and a full year of Stitcher revenue[189][194] - Income from operations for the year ended December 31, 2021, was $2,015 million, a significant increase of 135% from $858 million in 2020[189] - Net income for 2021 was $1,314 million, a substantial increase of 903% from $131 million in 2020[189] Cost and Expenses - Sirius XM's total cost of services increased by 11% to $3,968 million in 2021, compared to $3,579 million in 2020[189] - Programming and content expenses rose by 14% to $511 million in 2021 from $449 million in 2020, driven by higher content licensing costs[197] - Customer service and billing expenses increased by 5% to $415 million in 2021 from $394 million in 2020, attributed to higher transaction costs and consulting[198] - Transmission expenses surged by 29% to $159 million in 2021 from $123 million in 2020, primarily due to increased costs associated with cloud hosting and streaming services[199] - Cost of equipment decreased by 5% to $18 million in 2021 from $19 million in 2020, mainly due to lower direct sales[200] - Subscriber acquisition costs fell by 10% to $325 million in 2021 from $362 million in 2020, driven by lower subsidies and semiconductor supply shortages[205] - Sales and marketing expenses grew by 10% to $1,056 million in 2021 from $957 million in 2020, due to higher brand media and personnel-related costs[206] - Engineering, design, and development expenses increased by 1% to $265 million in 2021 from $263 million in 2020, primarily due to higher personnel-related costs[207] - General and administrative expenses rose by 1% to $514 million in 2021 from $511 million in 2020, driven by higher personnel and consulting costs[208] - Interest expense increased by 5% to $415 million in 2021 from $394 million in 2020, primarily due to a higher average outstanding debt balance[211] Cash Flow and Financing - Free cash flow for the year ended December 31, 2021, was $1,831 million, an increase of $171 million, or 10%, from $1,660 million in 2020[233] - Cash flows used in financing activities for the year ended December 31, 2021 included redemptions of senior notes totaling $3,594 million and share repurchases of $1,523 million[238] - As of December 31, 2021, the company had $1,749 million available for future borrowing under its Credit Facility, with no amounts outstanding[239] - The board of directors authorized a total of $18,000 million for stock repurchases, with cumulative repurchases since December 2012 amounting to $15,920 million[242] - A quarterly dividend of $0.0219615 per share was declared on January 26, 2022, with an expected annual dividend of $0.087846 per share[243] Operational Highlights - Sirius XM completed a $75 million investment in SoundCloud in February 2020, enhancing its advertising capabilities[184] - Sirius XM acquired Stitcher for $302 million in October 2020, creating a full-service platform for podcast creators and advertisers[185] - The company has entered into agreements for the design, construction, and launch of two new satellites, SXM-9 and SXM-10[250] - The company recognized an impairment charge of $956 million for the Pandora reporting unit in 2020 due to reduced long-term forecasts[249] - The company had no significant off-balance sheet arrangements that could materially affect its financial condition[245] - As of December 31, 2021, the company was in compliance with all debt covenants related to its senior notes and Credit Facility[244] Performance Metrics - Adjusted EBITDA for the year ended December 31, 2021, was $2,770 million, an increase from $2,575 million in 2020, reflecting a growth of approximately 7.57%[256] - The average self-pay monthly churn rate for satellite-enabled subscriptions was not explicitly stated, but it is a critical metric for assessing subscriber retention[252] - Subscriber acquisition costs (SAC) per installation decreased to $12.58 in 2021 from $18.65 in 2020, representing a reduction of approximately 32.5%[262] - The total number of satellite radio installations in new vehicles and shipments of aftermarket radios was 11,174 in 2021, up from 11,091 in 2020[262] - The company reported net cash provided by operating activities of $1,998 million for the year ended December 31, 2021, slightly down from $2,018 million in 2020[260] Market and Valuation - The company held a long-term investment in Sirius XM Canada amounting to $130.8 million, with a carrying value of $120.0 million as of December 31, 2021[267] - The loan to Sirius XM Canada bears interest at a rate of 7.62% per annum and is subject to changes in foreign currency exchange rates[267] - The company did not hold or issue any derivatives as of December 31, 2021, focusing on capital preservation and liquidity[267] - The fair market value of the company's debt is sensitive to changes in interest rates, with borrowings under the Credit Facility carrying a variable interest rate based on LIBOR[268]

Sirius XM Holdings Inc. (NASDAQ:SIRI) Q3 2021 Earnings Conference Call October 28, 2021 8:00 AM ET Company Participants Jennifer Witz – CEO Sean Sullivan – CFO Hooper Stevens – Senior Vice President Scott Greenstein – Chief Content Officer Conference Call Participants Steven Cahall – Wells Fargo Ben Swinburne – Morgan Stanley Jessica Reif Ehrlich – Bank of America Securities Jason Bazinet – Citi David Joyce – Barclays James Ratcliffe – Evercore ISI Operator Good morning and welcome to Sirius SM. Third Quart ...

Company and Industry Overview * **Company**: Sirius XM Holdings Inc. (NASDAQ: SIRI) * **Industry**: Media, Communications, and Entertainment * **Focus**: Satellite radio, streaming audio, and advertising Key Growth Pillars 1. **In-Vehicle Presence**: Maintaining and expanding SiriusXM's dominant position in the car audio market. 2. **Usage and Subscriptions Outside of the Vehicle**: Growing digital subscriptions and expanding the ad platform. 3. **Advertising Platform**: Leveraging the extensive advertising platform for growth. Core Views and Arguments * **Growth Outside of the Car**: The CEO, Jennifer Witz, emphasized that growth outside of the car, including digital subscriptions and the ad platform, represents the greatest opportunity for growth in the next 3-5 years. * **Content as a Differentiator**: SiriusXM's strong content offerings, including curated content, live news, sports, and podcasts, are a key driver of its success and differentiation from competitors. * **Churn Rate**: SiriusXM has achieved a historically low churn rate of 1.5%, driven by a strong value proposition and improved customer experience. Other Important Points * **Apple CarPlay and Android Auto**: Despite concerns about competition from Apple CarPlay and Android Auto, SiriusXM has maintained its leading position in the car audio market and has not seen significant erosion in performance. * **360L Platform**: The 360L platform is expected to be the default SiriusXM platform at all OEMs over time, improving content discovery and personalized experiences for consumers. * **Digital Subscriptions**: SiriusXM has a growing number of digital-only subscribers and is focused on expanding this segment through improved app experience and content offerings. * **Pandora**: Pandora is a key part of SiriusXM's strategy, with a focus on improving user experience, content, and distribution to slow listener declines. * **SXM Media**: SXM Media is a new sales organization that leverages the scale of SiriusXM's audio advertising platform and has been successful in closing major deals with advertisers. * **Podcasting**: Podcasting is a significant growth area for SiriusXM, with a focus on leveraging its strengths in content creation and distribution. * **Content Strategy**: SiriusXM focuses on providing a curated and diverse mix of content, including exclusive and non-exclusive offerings, to differentiate itself from competitors. * **Liberty Media**: Liberty Media owns approximately 80% of SiriusXM and has signed a tax-sharing agreement. The company's capital allocation strategy includes buybacks, dividends, and investment opportunities. * **SXM-7 Insurance Proceeds**: SiriusXM expects to receive all $225 million in insurance proceeds related to SXM-7 this year. * **SXM-9 Launch**: SXM-9 is expected to be launched about 3 years from now, following the completion of SXM-7 and SXM-10. * **Capital Expenditures**: SiriusXM has completed the SXM-7 and SXM-10 launches and is currently working on the next major ramp in capital expenditures.

Sirius XM Holdings Inc. (NASDAQ:SIRI) Q2 2021 Earnings Conference Call July 27, 2021 8:00 AM ET Company Participants Hooper Stevens – Senior Vice President, Investor Relations and Finance Jennifer Witz – Chief Executive Officer Sean Sullivan – Chief Financial Officer Scott Greenstein – President and Chief Content Officer Conference Call Participants Jessica Reif Ehrlich – Bank of America Securities Steven Cahall – Wells Fargo Jason Bazinet – Citi Ben Swinburne – Morgan Stanley Bryan Kraft – Deutsche Bank Do ...

Summary of Sirius XM Holdings, Inc. Conference Call Company Overview - **Company**: Sirius XM Holdings, Inc. (NASDAQ: SIRI) - **Event**: J.P. Morgan Technology, Media & Communications Conference - **Date**: May 25, 2021 - **CEO**: Jennifer Witz Key Points Subscriber Base and Churn - Record low churn rates indicate high loyalty and satisfaction among self-pay subscribers [2][3] - Significant increase in listening outside of vehicles, with a notable rise in trial starts [2][3] - Listening and trial metrics are at approximately 90% of pre-COVID levels [3] Auto Sales and Inventory - April saw a strong seasonally adjusted annual rate (SAR) of 18.5 million, the highest in 16 years [4][6] - OEMs are facing inventory challenges, impacting sales, but there is optimism for recovery in the second half of the year [4][7] - Third-party estimates suggest SAR may decline to the high 15 million range due to inventory issues [7] Advertising Revenue - Strong advertising performance with a 24% growth in Q1, driven by both on-platform and off-platform monetization [29] - Pandora's revenue per thousand impressions (RPM) rose 27% to $86, with off-platform revenue growing 48% [29] New Offerings and Content Strategy - Introduction of new high-end offerings and family plans to capture diverse consumer needs [15][16] - Testing of an ad-supported tier for SiriusXM, targeting non-subscribers and former subscribers [18] - Continued focus on enhancing content offerings, including partnerships with notable artists and brands [16][45] Podcasting and Digital Audio - SiriusXM aims to capitalize on the growing podcast advertising market, with expectations of double-digit revenue growth [42] - The company has made strategic acquisitions in the podcasting space, including Stitcher and Simplecast [37][42] Market Position and Competition - SiriusXM is positioned as a leader in digital audio advertising in North America, with a large addressable audience of 150 million listeners [31] - The company is adapting to competition from streaming services and in-car connectivity solutions like Android Auto and Apple CarPlay [26][27] Financial Outlook and Capital Allocation - The company remains a strong generator of free cash flow, with a history of returning excess capital to shareholders through buybacks and dividends [53][55] - Future capital allocation will focus on organic growth and selective acquisitions, supported by Liberty's ownership [54][55] Challenges and Risks - Potential risks include the impact of supply chain issues on vehicle production and subscriber growth, as well as competition in the podcasting and digital audio space [9][47] - The company is committed to maintaining a disciplined approach to content investments to protect gross margins [48] Additional Insights - Engagement outside of vehicles has increased, particularly among younger subscribers, which is expected to enhance retention [20][21] - The company is leveraging data to improve personalized marketing and enhance user experience across platforms [24][23] This summary encapsulates the key insights and strategic directions discussed during the conference call, highlighting Sirius XM's current performance, market challenges, and future opportunities.