SiriusXM Reports Q3 Revenue Drop and Subscriber Decline Amid Market Challenges

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November 17, 2024 at 11:35 PM

SiriusXM's third quarter of 2024 shows significant financial challenges, with revenues declining and subscription growth stalling. Here's what you need to know:

Car dashboard showing SiriusXM display

Key Financial Results:

Loss of 84 cents per share (compared to 90 cents earnings last year)
Total revenue declined 4.4% to $2.17 billion
Subscriber revenue down 4.86% to $1.64 billion
Advertising revenue decreased 2.17% to $450 million

Subscription Status:

Self-pay subscribers decreased 0.99% to 31.49 million
Net loss of 100,000 subscribers
Average revenue per user dropped to $15.16 (down 3.38%)
Total subscriber base declined 2.39% to 33.15 million

Business Development:

Completed Liberty Media transaction
Emerged as independent public company
Set long-term goals: 50 million subscribers and $1.8 billion in free cash flow

Contributing Factors to Decline:

Increased CTV market supply
Shift in advertiser spending
Limited election cycle
Low podcast inventory
Higher number of promotional rate subscribers
Growth in streaming-only plans

Equipment and Other Revenue:

Equipment revenue down 12.24% to $43 million
Other revenues stable at $33 million

This performance indicates SiriusXM faces significant challenges in maintaining growth and revenue stability in the evolving audio entertainment market.