Sirius XM(US:SIRI) The Motley Foolยท2025-01-30 15:44Core Insights - Sirius XM's stock outperformed the market, rising approximately 6% following the release of its fourth-quarter and full-year 2024 results, which exceeded expectations on both revenue and earnings [1] Group 1: Financial Performance - The company added 149,000 self-paying subscribers in the fourth quarter, a significant increase compared to the same quarter in 2023, despite a year-over-year decline in total self-pay subscribers [2] - Sirius XM confirmed its full-year 2025 guidance, projecting $8.5 billion in revenue and $1.15 billion in free cash flow, indicating a low valuation at less than 7 times expected free cash flow [2] - Free cash flow increased by 28% year over year in the fourth quarter, showcasing strong profitability [3] Group 2: Cost Management and Growth Initiatives - The company is on track with its cost savings initiatives, targeting an additional $200 million in annual savings by the end of 2025 [3] - Sirius XM's programmatic podcast ad revenue experienced double-digit percentage growth in 2024, reflecting successful growth strategies [3] Group 3: Investment and Market Position - The stock has attracted significant investment from Berkshire Hathaway, which holds a 35% stake, indicating confidence in the company's future growth potential [2] - The management aims to achieve $1.5 billion in free cash flow by 2027, positioning the company for potential long-term gains if strategies are effectively executed [2]