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Highlights

  • SIRI’s Q3FY24 revenue decreased by 4.4% YoY to USD 2,171 million, primarily due to a decline in subscriber revenue
  • The company reported a net loss of USD 2,958 million in Q3FY24, impacted by increased expenses
  • SIRI’s Q3FY24 gross margin of 46.1% and EBITDA margin of 30.8% outperformed industry medians

Sirius XM Holdings Inc. (NASDAQ:SIRI) hold an audio business portfolio including SiriusXM, Pandora, podcasts, and Off-platform.

In the third quarter of the financial year 2024 (3QFY24), SIRI reported total revenue of USD 2,171 million, a 4.4% decrease compared to USD 2,271 million in Q3FY23. It was primarily driven by a decline in subscriber revenue.

During the quarter, the company recorded net loss of USD 2,958 million, compared to the net profit of USD 291 million in the prior corresponding period (pcp), largely due to increased costs associated with impairment, restructuring, and other expenses.

Year-to-date operating cash flows stood at USD 1,062 million, down 18.37% YoY from USD 1,301 million, impacted by reduced net income and the unfavourable effect of changes in net working capital.

Additionally, cash and cash equivalents fell by 58.5% YoY, from USD 306 million in Q3FY23 to USD 127 million in Q3FY24. It was due to cash outflow from investing and financing activities, partially offset by cash inflow from operating expenses.

On a positive note, SIRI achieved a gross margin of 46.1% in Q3FY24, exceeding the industry median of 43.0%. Its EBITDA margin of 30.8% and operating margin of 22.4% also outperformed the respective industry medians of 9.2% and 1.5%.

Company Outlook

SiriusXM has updated its financial guidance for 2024. The company has lowered its revenue projections but reaffirmed its expectations for adjusted EBITDA and free cash flow. It now expects total revenue of about USD 8.675 billion, adjusted EBITDA of around USD 2.7 billion, and free cash flow of approximately USD 1 billion.

Top 10 shareholders

SIRI’s top 10 shareholders collectively hold approximately 59.91% of the company’s shares, indicating a concentrated ownership structure. The largest shareholders are Berkshire Hathaway Inc. with a 34.63% stake, followed by The Vanguard Group, Inc. with 6.80%.

Stock Performance

The stock has experienced a decline of approximately 18.41% over the past three months and a more significant drop of 29.74% in the last nine months. It is currently trading closer to the lower end of its 52-week range, which spans from a high of USD 55.40 to a low of USD 20.47. As of January 21, 2025, the stock closed at USD 22.19.

Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is January 21, 2025. The reference data in this report has been partly sourced from EODHD/Others.