Sirius XM Holdings Inc. (SIRI) Goldman Sachs Communacopia + Technology Conference (Transcript)

Industry/Company Overview * Company: Sirius XM Holdings Inc. (NASDAQ: SIRI) * Industry: Satellite radio and streaming audio services Key Points Transaction with Liberty Media * Transaction: SiriusXM completed the acquisition of the Liberty tracking stock group, making it a freely independent, publicly traded company. * Impact: * Simplified company structure and improved investor thesis. * Accelerated share repurchase, retiring 12% of shares and assuming $1.6 billion in debt. * Focus on investing in the business, maintaining the dividend, and deleveraging. Business Strategy * **Focus**: Delivering unique audio experiences, transforming the business for long-term success, and building on the strength of the core SiriusXM service. * **Key Areas of Investment**: * Strengthening presence in the car, including partnerships with OEMs, offering subscription bundles, and supporting pure-play EVs. * Enhancing 360L platform, focusing on personalized experiences, seamless integration with streaming products, and targeted advertising. * Expanding streaming-only offerings, targeting younger audiences, and improving engagement metrics. * Leveraging advertising assets, including Pandora, podcasting, and SXM Media, to grow the platform and increase revenue. Financial Outlook * **Revenue**:$8.75 billion in revenue, $2.7 billion in EBITDA, and$1 billion of free cash flow for 2024. * Headwinds: Economic uncertainty, shifting consumer behaviors, and increased competition. * Cost Structure: Focus on cost efficiency to balance short-term results with long-term investments. * Capital Allocation: Using cash flow to fund growth opportunities, maintain the dividend, deleverage, and be opportunistic about share repurchases. Other Important Points * 360L Penetration: Approximately 40% of new car trial starts have 360L, with plans to reach above 50% next year and above 80% in the coming years. * Streaming-Only Service: Launched at $9.99, targeting broader audiences and reducing reliance on discounted promotional plans. * Bundle Opportunities: Exploring opportunities to bundle services with Pandora, leveraging music discovery and interactive music capabilities. * Free Access Plan: Testing and learning into the product, with plans to unlock ad opportunities as volumes increase. * Content Strategy: Focusing on human curation and bringing differentiated content to the market, including exclusive content with talent like Alex Cooper.