Sirius XM (SIRI) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue was $2.18 billion, down 3% year-over-year; net income rose to $316 million from $310 million.

• Adjusted EBITDA was $702 million, flat year-over-year but up 8% sequentially; margin improved by 1 point year-over-year.

• Self-pay net additions improved sequentially and year-over-year, though SiriusXM subscribers declined by 806K to 33.3M; Pandora MAUs fell 5% to 45.1M.

• Full-year 2024 financial guidance was reiterated, and the Liberty Media/New Sirius merger is expected to close after market on September 9, 2024.

• Strategic focus remains on enhancing subscription business, driving advertising growth, and optimizing financial performance.

Financial highlights

• Consolidated Q2 revenue was $2.18 billion, down 3% year-over-year; net income was $316 million, up 2% year-over-year.

• Adjusted EBITDA was $702 million, flat year-over-year but up 8% from Q1 2024, with a 32% margin.

• Free cash flow reached $343 million, up 6% year-over-year, aided by lower cash taxes.

• $103 million was returned to shareholders via dividends in Q2; net debt to Adjusted EBITDA ended at 3.2x.

• Q2 diluted EPS was $0.08.

Outlook and guidance

• Full-year 2024 financial guidance reaffirmed; revenue expected at ~$8.75 billion, adjusted EBITDA ~$2.70 billion, free cash flow ~$1.20 billion.

• Slight improvement in self-pay net adds expected for 2024 versus 2023.

• SiriusXM subscriber revenue expected to decrease due to lower average subscribers and ARPU; Pandora ad revenue expected to grow.

• Anticipates more free cash flow conversion as capital expenditures decline.

• Guidance excludes effects of Liberty Media transaction; free cash flow expected to be revised post-closing.