- Revenue in First Quarter 2022 of $2.19 Billion; an Increase of 6%
Year-Over-Year
- First Quarter 2022 Net Income Climbs to $309 Million; Diluted EPS of $0.08
- Adjusted EBITDA of $690
Million, an Increase of 1% Year-Over-Year
- Year-to-Date Capital Returns to Stockholders of
$1.3 Billion
- SiriusXM Reiterates Full-Year Subscriber and Financial
Guidance
NEW
YORK, April 28, 2022 /PRNewswire/ -- SiriusXM
today announced first quarter 2022 operating and financial results,
including revenue of $2.19 billion,
an increase of 6%, compared to the prior year period. The
company recorded net income of $309
million in the first quarter 2022 compared to $219 million in the prior year. Net income
per diluted common share was $0.08 in
the first quarter 2022 compared to $0.05 in the prior year period.
Adjusted EBITDA reached $690
million in 2022, climbing 1% from $682 million in the first quarter of
2021.
"SiriusXM delivered a record first quarter churn rate of just
1.6%, and we drove a 9% increase in average revenue per user to a
new all-time high. Overall, the first quarter marked a great
start to the year, even as SiriusXM's near-term subscriber growth
remains limited by supply constraints in the automotive
industry. We are making substantial investments to grow our
advertising platform through new podcast agreements and to grow
SiriusXM digital with enhanced brand and performance
marketing. In the first quarter, we returned $1.3 billion to our stockholders through regular
and special dividends and common stock repurchases. We remain
on track to attain our full-year subscriber and financial
guidance," said Jennifer Witz, Chief
Executive Officer of SiriusXM.
"Content will always power our strong listenership and sustained
subscriber loyalty at SiriusXM, and this quarter we continued to
expand our offering through new agreements with artists and
creators. We have announced multiple distribution and
advertising sales agreements with top podcast brands such as
Crooked Media, and several agreements include new content developed
specifically for the SiriusXM platform. We kept our content
fresh by launching an array of new pop-up channels and resumed even
more live performances with legendary artists," added Witz.
BUSINESS AND CONTENT UPDATE
New vehicle penetration at all-time high.
SiriusXM's hardware was incorporated into approximately 83% of new
vehicles sold in the United States
in the first quarter of 2022, up from approximately 81% in the
first quarter of 2021. SiriusXM's enabled fleet grew to
nearly 146 million vehicles, up 9% from a year prior.
SiriusXM expands content offering and offers even more live
performances. SiriusXM continues to add compelling and
timely content across music genres, talk, entertainment, sports and
comedy. SiriusXM introduced listeners to new, limited-time
artist channels from the legendary and prolific artist Joni Mitchell, rock and soul icon Tina Turner, decade-spanning alt-rocker
Avril Lavigne, and genre-bending
country superstar Maren
Morris. The company also launched a year-long channel
from one of the bestselling acts in music history, Red Hot Chili
Peppers, and curated artist-branded channels that drew headlines
and subscriber attention, such as Neil Young Radio and the David
Bowie Channel. SiriusXM gave listeners access to great live
performances by major artists including Avril Lavigne, John Legend, John Mayer and Kelly
Rowland.
Podcast business continues to grow. SXM Media, the
company's combined advertising sales organization, continues to be
a dominant force in podcast ad sales, ranking as the #1 podcast
advertising network in weekly U.S. listener reach according to
Edison Research. SXM Media currently represents three of the
top 15 podcasts in the country according to Edison Research,
including Crime Junkie, Office Ladies, Dateline NBC, and soon a
fourth, Pod Save America.
2022 GUIDANCE AND FINANCIAL UPDATE
The Company reiterates full-year 2022 guidance for self-pay net
subscriber additions, revenue, adjusted EBITDA, and free cash flow
as follows:
- SiriusXM self-pay net subscriber additions of approximately
500,000,
- Total revenue of approximately $9.0
billion,
- Adjusted EBITDA of approximately $2.8
billion, and
- Free cash flow of approximately $1.55
billion.
"Following nearly $1.1 billion
paid in special and recurring dividends in February, and
approximately $200 million in first
quarter common stock repurchases, we ended the quarter with net
debt to adjusted EBITDA of 3.5 times, flat from year-end 2021 on a
pro forma basis after giving effect to the approximately
$1.0 billion special dividend.
Our balance sheet remains well-positioned, and earlier this month
we opportunistically executed a $500
million two-year term loan, the proceeds of which we used to
refinance a portion of our revolving credit facility balance at a
more favorable interest rate. We retain significant
flexibility to continue investing to grow our business, pursue
external opportunities, and continue returning capital to
stockholders," said Sean Sullivan,
Chief Financial Officer of SiriusXM.
FIRST QUARTER 2022 SEGMENT HIGHLIGHTS
Sirius XM Holdings operates two complementary audio
entertainment businesses — SiriusXM and the Pandora and
Off-platform business. Further information regarding these
two segments will be contained in the company's Quarterly Report on
Form 10-Q for the quarter ended March 31, 2022. The
financial and operating highlights below exclude the impact of
share-based payment expense.
SIRIUSXM SEGMENT
- Self-Pay Subscribers Remain at 32.0Million.
SiriusXM self-pay subscribers decreased modestly by 25,000, and
paid promotional subscribers decreased by 54,000. Continuing
impacts of new vehicle trial structures with certain automakers
contributed to negative paid promotional net additions during the
quarter. Total subscribers were 34.0 million at March 31, 2022. The total SiriusXM trial
funnel stood at approximately 6.9 million at the end of the
quarter, up from 6.8 million at the end of the fourth quarter of
2021. Self-pay monthly churn remained approximately flat
during the quarter but notched a first quarter record at 1.6%.
- SiriusXM Revenue Increased 6% to $1.7
Billion. First quarter 2022 revenue grew 6% to
$1.7 billion compared to the first
quarter of 2021. This growth was driven by a 9% increase in
SiriusXM's average revenue per user (ARPU) to $15.53 and a 3% increase in SiriusXM self-pay
subscribers, partially offset by the effects of a lower base of
paid promotional subscribers.
- Gross Profit Increased 8% to $1.1
Billion and Gross Margin Remained Stable. Total
cost of services at SiriusXM increased by 4% to $649 million for the quarter compared to the
corresponding quarter in 2021. Gross profit at SiriusXM
totaled $1.1 billion, an increase of
8% compared to the 2021 period, producing a gross margin of 62%, a
1 percentage point increase from the prior-year.
- SiriusXM Continued to Offer Special Programming. During
the quarter, SiriusXM created special programming recognizing women
and Black artists. In March, Women's History Month, the
company devoted a channel to the defining, female-led festival tour
of the 90s, with The Lilith Fair Tribute Channel. It aired
alongside a variety of other programming dedicated to female
artists across genres. Earlier, for Black History Month,
SiriusXM worked with artists to create the Aretha Franklin Channel,
Miles Davis Radio, and The Motown Channel. The company also
launched It's Showtime at The Apollo! Comedy, a channel dedicated
to the legendary and star-making variety show. The channel
showcased the very best stand-up from the program's decades-long
run, including early performances from some of today's biggest
comedians.
- Creating Synergies and Opportunities with Podcasts.
During the quarter, SiriusXM also created opportunities for podcast
talent to appear on SiriusXM with new channels and shows. The
company launched Freakonomics Radio Network, the first streaming
channel to be dedicated to a podcast. Freakonomics Radio
Network is a curated collection of the best of the award-winning
series. SiriusXM launched two new live call-in shows: Open
Lines on Faction, in which the hosts of the popular horror comedy
podcast Last Podcast on the Left talk directly with listeners about
a paranormal topic of their choice; and It's Me, Tinx LIVE, on the
Stars channel, in which the well-known digital creator and host of
the popular podcast by the same name, gives advice directly to
listeners.
PANDORA AND OFF-PLATFORM SEGMENT
- Advertising Revenue Increased 8% to $336 Million. First quarter ad revenue
in the Pandora and Off-platform segment, including the company's
podcasting business, increased by 8% year-over-year to $336 million, a record for first quarter ad
revenue. Ad revenue in the off-platform business climbed 43%
year-over-year to nearly $95 million
in the first quarter. Ad revenue also benefited from strong
monetization of $89.77 per thousand
hours at Pandora, compared to $85.69
from the prior year.
- Total Advertising-Supported Listener Hours of 2.68
Billion. Monthly Active Users (MAUs) at Pandora were 50.6
million in the first quarter of 2022, down from 55.9 million in the
prior year period. Total ad-supported listener hours were
2.68 billion in the first quarter of 2022, down from 2.87 billion
in the 2021 period.
- Self-Pay Subscribers Increase Modestly. Self-pay
subscribers to the Pandora Plus and Pandora Premium services
increased by 4,000 in the first quarter of 2022 to end the period
flat at 6.3 million.
- Gross Profit Flat. Subscriber revenue increased by
1%, advertising revenue increased by 8% and total cost of services
increased by 8% during the first quarter of 2022. This resulted in
gross profit in the Pandora and Off-platform segment of
$137 million, flat with the
corresponding 2021 period, and produced a gross margin for the year
of 29%, down 2 percentage points from prior year period.
- Continued Focus on Content. During the quarter,
Pandora created new ways for listeners to experience the music they
love with a personalized station Mode curated by Lebron James on Pandora's UNINTERRUPTED Radio
and a special Valentine's Day station featuring Pandora's "Top
Thumb Hundred" most popular love songs of the past year. In
addition, Pandora teamed up with SoundCloud to highlight innovative
emerging artists with the new "Digicore by SoundCloud" station, and
added a number of top Latin music artists to its suite of
Billionaires Stations, highlighting artists with over one billion
spins on Pandora.
- Expanding Podcast Representation. During the
quarter, the company signed global multiyear exclusive agreements
with Crooked Media, which showcases some of the most popular and
critically acclaimed podcasts in the country such as "Pod Save
America," and reVolver, a leading multicultural, audio-on-demand
content creator and publisher. These agreements secured the
global advertising sales rights for SXM Media, and continued to
expand the company's off-platform business and solidify SXM Media
as a leader in the sales of audio advertising for podcasts.
Subscriber acquisition costs increased by 5% to $90 million in the first quarter of 2022 compared
to the prior year period, driven by higher equipment installations
by automakers. Sales and marketing costs increased by 28% to
$259 million in 2022 compared to the
prior year, boosted by increased performance marketing and the
continuation of a multi-media national ad campaign promoting
SiriusXM which was launched in late 2021. Engineering, design
and development costs rose 9% to $59
million, and general and administrative expenses increased
by 3% to $109 million in 2022.
Free cash flow was $258 million,
up approximately 22% from the prior year period, primarily due to
higher receipts from customers, partially offset by higher
satellite capital expenditures.
Net income per diluted common share was $0.08 in the first quarter 2022 compared to
$0.05 in the prior year period.
The first quarter of 2021 was impacted by a $245 million non-cash impairment charges
associated with the company's SXM-7 satellite loss and certain
lease termination costs, and a $95
million benefit associated with a state tax audit
settlement, a negative net impact of $0.02 per share.
FIRST QUARTER 2022 RESULTS
SIRIUS XM HOLDINGS INC.
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS
OF COMPREHENSIVE INCOME
(UNAUDITED)
|
|
|
For the Three Months Ended March
31,
|
(in millions, except per share
data)
|
2022
|
|
2021
|
Revenue:
|
|
|
|
Subscriber revenue
|
$
1,713
|
|
$
1,611
|
Advertising revenue
|
383
|
|
354
|
Equipment revenue
|
53
|
|
57
|
Other revenue
|
37
|
|
36
|
Total
revenue
|
2,186
|
|
2,058
|
Operating
expenses:
|
|
|
|
Cost of
services:
|
|
|
|
Revenue share and royalties
|
670
|
|
640
|
Programming and content
|
140
|
|
130
|
Customer service and billing
|
125
|
|
117
|
Transmission
|
51
|
|
48
|
Cost of equipment
|
3
|
|
4
|
Subscriber acquisition
costs
|
90
|
|
86
|
Sales and
marketing
|
272
|
|
217
|
Engineering, design and
development
|
67
|
|
64
|
General and
administrative
|
123
|
|
121
|
Depreciation and
amortization
|
135
|
|
132
|
Impairment,
restructuring and acquisition costs
|
—
|
|
245
|
Total operating
expenses
|
1,676
|
|
1,804
|
Income from operations
|
510
|
|
254
|
Other (expense)
income:
|
|
|
|
Interest expense
|
(103)
|
|
(100)
|
Other income
|
2
|
|
3
|
Total other (expense)
income
|
(101)
|
|
(97)
|
Income (loss) before
income taxes
|
409
|
|
157
|
Income tax (expense)
benefit
|
(100)
|
|
62
|
Net income
(loss)
|
$
309
|
|
$
219
|
Foreign currency translation adjustment, net of
tax
|
8
|
|
5
|
Total comprehensive
income (loss)
|
$
317
|
|
$
224
|
Net income per common
share:
|
|
|
|
Basic
|
$
0.08
|
|
$
0.05
|
Diluted
|
$
0.08
|
|
$
0.05
|
Weighted average common
shares outstanding:
|
|
|
|
Basic
|
3,948
|
|
4,137
|
Diluted
|
4,024
|
|
4,222
|
Dividends declared per
common share
|
$
0.2719615
|
|
$
0.014641
|
SIRIUS XM HOLDINGS INC.
AND SUBSIDIARIES
CONSOLIDATED BALANCE
SHEETS
|
|
(in millions, except per share
data)
|
March 31, 2022
|
|
December 31, 2021
|
ASSETS
|
(unaudited)
|
|
|
Current
assets:
|
|
|
|
Cash and cash equivalents
|
$
76
|
|
$
191
|
Receivables, net
|
650
|
|
722
|
Related party current assets
|
13
|
|
21
|
Prepaid expenses and other current assets
|
317
|
|
246
|
Total current assets
|
1,056
|
|
1,180
|
Property and equipment,
net
|
1,458
|
|
1,450
|
Intangible assets,
net
|
3,166
|
|
3,186
|
Goodwill
|
3,180
|
|
3,151
|
Related party long-term
assets
|
541
|
|
526
|
Deferred tax
assets
|
200
|
|
200
|
Operating lease
right-of-use assets
|
346
|
|
358
|
Other long-term
assets
|
216
|
|
223
|
Total assets
|
$
10,163
|
|
$
10,274
|
LIABILITIES AND STOCKHOLDERS' EQUITY
(DEFICIT)
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts payable and accrued expenses
|
$
1,179
|
|
$
1,299
|
Accrued interest
|
71
|
|
173
|
Current portion of deferred revenue
|
1,451
|
|
1,454
|
Operating lease current liabilities
|
52
|
|
49
|
Related party current liabilities
|
68
|
|
5
|
Total current
liabilities
|
2,821
|
|
2,980
|
Long-term deferred
revenue
|
91
|
|
97
|
Long-term
debt
|
9,832
|
|
8,832
|
Deferred tax
liabilities
|
512
|
|
478
|
Operating lease
liabilities
|
344
|
|
362
|
Other long-term
liabilities
|
150
|
|
150
|
Total liabilities
|
13,750
|
|
12,899
|
Stockholders' equity
(deficit):
|
|
|
|
Common stock, par value $0.001 per share; 9,000 shares
authorized; 3,940
and 3,968 shares issued; 3,940 and 3,967 shares
outstanding at March 31, 2022
and December 31, 2021, respectively
|
4
|
|
4
|
Accumulated other
comprehensive income, net of tax
|
23
|
|
15
|
Additional paid-in
capital
|
—
|
|
—
|
Treasury stock, at cost; — and 1 shares of common stock at
March 31, 2022 and
December 31, 2021,
respectively
|
(2)
|
|
(8)
|
Accumulated
deficit
|
(3,612)
|
|
(2,636)
|
Total stockholders' equity
(deficit)
|
(3,587)
|
|
(2,625)
|
Total liabilities and
stockholders' equity (deficit)
|
$
10,163
|
|
$
10,274
|
SIRIUS XM HOLDINGS INC.
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS
OF CASH FLOWS
(UNAUDITED)
|
|
|
For The Three Months Ended March
31,
|
(in millions)
|
2022
|
|
2021
|
Cash flows from
operating activities:
|
|
|
|
Net
income
|
$
309
|
|
$
219
|
Adjustments to reconcile net
income to net cash provided by operating activities:
|
|
|
|
Depreciation and
amortization
|
135
|
|
132
|
Non cash impairment and
restructuring costs
|
—
|
|
245
|
Non-cash interest
expense, net of amortization of premium
|
5
|
|
5
|
Provision for doubtful
accounts
|
15
|
|
10
|
(Gain) loss on
unconsolidated entity investments, net
|
(3)
|
|
1
|
Loss (gain) on other
investments
|
3
|
|
(1)
|
Share-based payment
expense
|
45
|
|
51
|
Deferred income tax
expense (benefit)
|
29
|
|
(76)
|
Amortization of
right-of-use assets
|
12
|
|
15
|
Changes in operating
assets and liabilities:
|
|
|
|
Receivables
|
57
|
|
45
|
Related party, net
|
60
|
|
10
|
Prepaid expenses and other
current assets
|
(71)
|
|
(20)
|
Other long-term
assets
|
1
|
|
(4)
|
Accounts payable and accrued
expenses
|
(116)
|
|
(173)
|
Accrued interest
|
(102)
|
|
(94)
|
Deferred revenue
|
(9)
|
|
(59)
|
Operating lease
liabilities
|
(15)
|
|
(12)
|
Other long-term
liabilities
|
—
|
|
(2)
|
Net cash provided by operating
activities
|
355
|
|
292
|
Cash flows from
investing activities:
|
|
|
|
Additions to property
and equipment
|
(97)
|
|
(78)
|
Purchases of other
investments
|
—
|
|
(3)
|
Acquisition of
business, net of cash acquired
|
(44)
|
|
6
|
Investments in related
parties and other equity investees
|
(1)
|
|
(5)
|
Repayment from related
party
|
—
|
|
2
|
Net cash used in investing
activities
|
(142)
|
|
(78)
|
Cash flows from
financing activities:
|
|
|
|
Taxes paid from net
share settlements for stock-based compensation
|
(29)
|
|
(20)
|
Revolving credit
facility, net
|
981
|
|
374
|
Principal payments of
long-term borrowings
|
(1)
|
|
(1)
|
Common stock
repurchased and retired
|
(206)
|
|
(522)
|
Dividends
paid
|
(1,073)
|
|
(61)
|
Net cash used in financing
activities
|
(328)
|
|
(230)
|
Net decrease in cash,
cash equivalents and restricted cash
|
(115)
|
|
(16)
|
Cash, cash equivalents
and restricted cash at beginning of period
(1)
|
199
|
|
83
|
Cash, cash equivalents
and restricted cash at end of period (1)
|
$
84
|
|
$
67
|
(1) The following table reconciles cash, cash equivalents and
restricted cash per the statement of cash flows to the balance
sheet. The restricted cash balances are primarily due to letters of
credit which have been issued to the landlords of leased office
space. The terms of the letters of credit primarily extend beyond
one year.
(in millions)
|
March 31, 2022
|
|
December 31, 2021
|
|
March 31, 2021
|
|
December 31, 2020
|
Cash and cash
equivalents
|
$
76
|
|
$
191
|
|
$
59
|
|
$
71
|
Restricted cash
included in Other long-term assets
|
8
|
|
8
|
|
8
|
|
12
|
Total cash, cash
equivalents and restricted cash at end of period
|
$
84
|
|
$
199
|
|
$
67
|
|
$
83
|
Unaudited Results
Set forth below are our results of operations for the three
months ended March 31, 2022 compared with the three months
ended March 31, 2021. Legal settlements and reserves and
share-based payment expense have been excluded from cost of
services line items and presented as their own line items in the
table below, as this is consistent with how the segments are
evaluated on a regular basis. Our results also exclude
certain purchase price accounting adjustments related to other
revenue and revenue share and royalties.
|
For the Three Months Ended March
31,
|
|
2022 vs 2021 Change
|
|
2022
|
|
2021
|
|
Amount
|
|
%
|
Revenue
|
|
|
|
|
|
|
|
Sirius XM:
|
|
|
|
|
|
|
|
Subscriber revenue
|
$
1,582
|
|
$
1,481
|
|
$
101
|
|
7%
|
Advertising revenue
|
47
|
|
42
|
|
5
|
|
12%
|
Equipment revenue
|
53
|
|
57
|
|
(4)
|
|
(7)%
|
Other revenue
|
37
|
|
36
|
|
1
|
|
3%
|
Total Sirius XM
revenue
|
1,719
|
|
1,616
|
|
103
|
|
6%
|
Pandora and
Off-platform:
|
|
|
|
|
|
|
|
Subscriber revenue
|
131
|
|
130
|
|
1
|
|
1%
|
Advertising revenue
|
336
|
|
312
|
|
24
|
|
8%
|
Total Pandora and Off-platform
revenue
|
467
|
|
442
|
|
25
|
|
6%
|
Total consolidated
revenue
|
2,186
|
|
2,058
|
|
128
|
|
6%
|
Cost of services
|
|
|
|
|
|
|
|
Sirius XM:
|
|
|
|
|
|
|
|
Revenue share and
royalties
|
382
|
|
378
|
|
4
|
|
1%
|
Programming and
content
|
122
|
|
113
|
|
9
|
|
8%
|
Customer service and
billing
|
102
|
|
96
|
|
6
|
|
6%
|
Transmission
|
40
|
|
32
|
|
8
|
|
25%
|
Cost of equipment
|
3
|
|
4
|
|
(1)
|
|
(25)%
|
Total Sirius XM cost of
services
|
649
|
|
623
|
|
26
|
|
4%
|
Pandora and
Off-platform:
|
|
|
|
|
|
|
|
Revenue share and royalties
|
288
|
|
262
|
|
26
|
|
10%
|
Programming and
content
|
10
|
|
9
|
|
1
|
|
11%
|
Customer service and
billing
|
22
|
|
19
|
|
3
|
|
16%
|
Transmission
|
10
|
|
15
|
|
(5)
|
|
(33)%
|
Total Pandora and
Off-platform cost of services
|
330
|
|
305
|
|
25
|
|
8%
|
Total consolidated cost
of services
|
979
|
|
928
|
|
51
|
|
5%
|
Subscriber acquisition
costs
|
90
|
|
86
|
|
4
|
|
5%
|
Sales and
marketing
|
259
|
|
202
|
|
57
|
|
28%
|
Engineering, design and
development
|
59
|
|
54
|
|
5
|
|
9%
|
General and
administrative
|
109
|
|
106
|
|
3
|
|
3%
|
Depreciation and
amortization
|
135
|
|
132
|
|
3
|
|
2%
|
Impairment,
restructuring and acquisition costs
|
—
|
|
245
|
|
(245)
|
|
(100)%
|
Share-based payment
expense (1)
|
45
|
|
51
|
|
(6)
|
|
(12)%
|
Total operating
expenses
|
1,676
|
|
1,804
|
|
(128)
|
|
(7)%
|
Income (loss) from operations
|
510
|
|
254
|
|
256
|
|
101%
|
Other (expense)
income:
|
|
|
|
|
|
|
|
Interest expense
|
(103)
|
|
(100)
|
|
(3)
|
|
(3)%
|
Other income
|
2
|
|
3
|
|
(1)
|
|
(33)%
|
Total other (expense)
income
|
(101)
|
|
(97)
|
|
(4)
|
|
(4)%
|
Income (loss) before
income taxes
|
409
|
|
157
|
|
252
|
|
161%
|
Income tax (expense)
benefit
|
(100)
|
|
62
|
|
(162)
|
|
(261)%
|
Net income
(loss)
|
$
309
|
|
$
219
|
|
$
90
|
|
41%
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
|
$
690
|
|
$
682
|
|
$
8
|
|
1%
|
|
|
|
|
|
|
|
|
Gross Profit - Sirius XM
|
$
1,070
|
|
$
993
|
|
$
77
|
|
8%
|
Gross Margin % - Sirius XM
|
62%
|
|
61%
|
|
1%
|
|
2%
|
Gross Profit - Pandora and Off-platform
|
$
137
|
|
$
137
|
|
$
—
|
|
—%
|
Gross Margin % - Pandora and Off-platform
|
29%
|
|
31%
|
|
(2)%
|
|
(6)%
|
(1) Allocation of share-based payment expense:
|
For the Three Months Ended March
31,
|
(in millions)
|
2022
|
|
2021
|
Programming and content - Sirius XM
|
$
7
|
|
$
7
|
Customer service and billing - Sirius XM
|
1
|
|
2
|
Transmission - Sirius XM
|
1
|
|
1
|
Programming and content - Pandora and Off-platform
|
1
|
|
1
|
Sales and marketing
|
13
|
|
15
|
Engineering, design and development
|
8
|
|
10
|
General and administrative
|
14
|
|
15
|
Total share-based
payment expense
|
$
45
|
|
$
51
|
Key Financial and Operating Metrics
A full glossary defining our key financial and operating metrics
can be found in our Quarterly Report on Form 10-Q for the quarter
ended March 31, 2022.
Subscribers and subscription related revenues and expenses
associated with our connected vehicle services and Sirius XM Canada
are not included in Sirius XM's subscriber count or
subscriber-based operating metrics.
Set forth below are our subscriber balances as of March 31,
2022 compared to March 31, 2021:
|
As of March 31,
|
|
2022 vs 2021 Change
|
(subscribers in thousands)
|
2022
|
|
2021
|
|
Amount
|
|
%
|
Sirius XM
|
|
|
|
|
|
|
|
Self-pay subscribers
|
32,014
|
|
31,013
|
|
1,001
|
|
3%
|
Paid promotional
subscribers
|
1,940
|
|
3,486
|
|
(1,546)
|
|
(44)%
|
Ending subscribers
|
33,954
|
|
34,499
|
|
(545)
|
|
(2)%
|
Sirius XM Canada subscribers
|
2,523
|
|
2,600
|
|
(77)
|
|
(3)%
|
|
|
|
|
|
|
|
|
Pandora and Off-platform
|
|
|
|
|
|
|
|
Monthly active users - all services
|
50,554
|
|
55,870
|
|
(5,316)
|
|
(10)%
|
Self-pay subscribers
|
6,328
|
|
6,392
|
|
(64)
|
|
(1)%
|
Paid promotional
subscribers
|
—
|
|
64
|
|
(64)
|
|
(100)%
|
Ending
subscribers
|
6,328
|
|
6,456
|
|
(128)
|
|
(2)%
|
The following table contains our Non-GAAP financial and
operating performance measures which are based on our adjusted
results of operations for the three months ended March 31,
2022 and 2021:
|
For the Three Months Ended March
31,
|
|
2022 vs 2021 Change
|
(subscribers in thousands)
|
2022
|
|
2021
|
|
Amount
|
|
%
|
Sirius XM
|
|
|
|
|
|
|
|
Self-pay subscribers
|
(25)
|
|
126
|
|
(151)
|
|
(120)%
|
Paid promotional subscribers
|
(54)
|
|
(341)
|
|
287
|
|
84%
|
Net
additions
|
(79)
|
|
(215)
|
|
136
|
|
63%
|
Weighted average number
of subscribers
|
33,890
|
|
34,462
|
|
(572)
|
|
(2)%
|
Average self-pay
monthly churn
|
1.6%
|
|
1.6%
|
|
—%
|
|
—%
|
ARPU
(1)
|
$
15.53
|
|
$
14.30
|
|
$
1.23
|
|
9%
|
SAC, per
installation
|
$
12.73
|
|
$
10.90
|
|
$
1.83
|
|
17%
|
|
|
|
|
|
|
|
|
Pandora and Off-platform
|
|
|
|
|
|
|
|
Self-pay subscribers
|
4
|
|
113
|
|
(109)
|
|
(96)%
|
Paid promotional subscribers
|
(69)
|
|
2
|
|
(71)
|
|
(3,550)%
|
Net
additions
|
(65)
|
|
115
|
|
(180)
|
|
(157)%
|
Weighted average number
of subscribers
|
6,356
|
|
6,385
|
|
(29)
|
|
—%
|
Ad supported listener
hours (in billions)
|
2.68
|
|
2.87
|
|
(0.19)
|
|
(7)%
|
Advertising revenue per
thousand listener hours (RPM)
|
$
89.77
|
|
$
85.69
|
|
$
4.08
|
|
5%
|
|
|
|
|
|
|
|
|
Total Company
|
|
|
|
|
|
|
|
Adjusted EBITDA
|
$
690
|
|
$
682
|
|
$
8
|
|
1%
|
Free cash flow
|
$
258
|
|
$
211
|
|
$
47
|
|
22%
|
|
|
(1)
|
ARPU for Sirius XM
excludes subscriber revenue from our connected vehicle services of
$49 and $45 for the three months ended
March 31, 2022 and 2021, respectively.
|
Reconciliation from GAAP Net income to Non-GAAP Adjusted
EBITDA:
|
For the Three Months Ended March
31,
|
(in millions)
|
2022
|
|
2021
|
Net income:
|
$
309
|
|
$
219
|
Add back items excluded
from Adjusted EBITDA:
|
|
|
|
Impairment, restructuring and acquisition costs
|
—
|
|
245
|
Share-based payment expense
|
45
|
|
51
|
Depreciation and amortization
|
135
|
|
132
|
Interest expense
|
103
|
|
100
|
Other income
|
(2)
|
|
(3)
|
Income tax expense (benefit)
|
100
|
|
(62)
|
Adjusted
EBITDA
|
$
690
|
|
$
682
|
Reconciliation of Free Cash Flow:
|
For the Three Months Ended March
31,
|
(in millions)
|
2022
|
|
2021
|
Cash Flow information
|
|
|
|
Net cash provided by
operating activities
|
$
355
|
|
$
292
|
Net cash used in
investing activities
|
$
(142)
|
|
$
(78)
|
Net cash used in
financing activities
|
$
(328)
|
|
$
(230)
|
Free Cash Flow
|
|
|
|
Net cash provided by
operating activities
|
$
355
|
|
$
292
|
Additions to property and equipment
|
(97)
|
|
(78)
|
Purchases of other investments
|
—
|
|
(3)
|
Free cash
flow
|
$
258
|
|
$
211
|
Reconciliation of SAC, per installation:
|
For the Three Months Ended March
31,
|
(costs in millions and installs in
thousands)
|
2022
|
|
2021
|
Subscriber acquisition
costs, excluding connected vehicle services
|
$
90
|
|
$
86
|
Less: margin from sales
of radios and accessories, excluding connected vehicle
services
|
(50)
|
|
(53)
|
|
$
40
|
|
$
33
|
Installations
|
3,125
|
|
3,068
|
SAC, per installation
(a)
|
$
12.73
|
|
$
10.90
|
|
|
(a)
|
Amounts may not
recalculate due to rounding.
|
About SiriusXM
Sirius XM Holdings Inc. (NASDAQ: SIRI) is the leading audio
entertainment company in North
America, and the premier programmer and platform for
subscription and digital advertising-supported audio products.
SiriusXM's platforms collectively reach approximately 150 million
listeners, the largest digital audio audience across paid and free
tiers in North America, and
deliver music, sports, talk, news, comedy, entertainment and
podcasts. Pandora, a subsidiary of SiriusXM, is the largest
ad-supported audio entertainment streaming service in the U.S.
SiriusXM's subsidiaries Stitcher, Simplecast and AdsWizz make it a
leader in podcast hosting, production, distribution, analytics and
monetization. The Company's advertising sales organization, which
operates as SXM Media, leverages its scale, cross-platform sales
organization and ad tech capabilities to deliver results for audio
creators and advertisers. SiriusXM, through Sirius XM Canada
Holdings, Inc., also offers satellite radio and audio entertainment
in Canada. In addition to its
audio entertainment businesses, SiriusXM offers connected vehicle
services to automakers. For more about SiriusXM, please go to:
www.siriusxm.com.
This communication contains "forward-looking statements"
within the meaning of the Private Securities Litigation Reform Act
of 1995. Such statements include, but are not limited to,
statements about future financial and operating results, our plans,
objectives, expectations and intentions with respect to future
operations, products and services; and other statements identified
by words such as "will likely result," "are expected to," "will
continue," "is anticipated," "estimated," "believe," "intend,"
"plan," "projection," "outlook" or words of similar meaning. Such
forward-looking statements are based upon the current beliefs and
expectations of our management and are inherently subject to
significant business, economic and competitive uncertainties and
contingencies, many of which are difficult to predict and generally
beyond our control. Actual results and the timing of events may
differ materially from the results anticipated in these
forward-looking statements.
The following factors, among others, could cause actual
results and the timing of events to differ materially from the
anticipated results or other expectations expressed in the
forward-looking statements: We have been, and may continue to
be, adversely affected by supply chain issues as a result of the
global semiconductor supply shortage; The ongoing COVID-19 pandemic
has introduced significant uncertainty to our business; we face
substantial competition and that competition is likely to increase
over time; our efforts to attract and retain subscribers and
listeners, or convert listeners into subscribers, which may not be
successful, and may adversely affect our business; we engage in
extensive marketing efforts and the continued effectiveness of
those efforts is an important part of our business; we rely on
third parties for the operation of our business, and the failure of
third parties to perform could adversely affect our business; we
may not realize the benefits of acquisitions and other strategic
investments and initiatives; a substantial number of our Sirius XM
subscribers periodically cancel their subscriptions and we cannot
predict how successful we will be at retaining customers; our
ability to profitably attract and retain subscribers to our Sirius
XM service as our marketing efforts reach more price-sensitive
consumers is uncertain; our business depends in part on the auto
industry; failure of our satellite would significantly damage our
business; our Sirius XM service may experience harmful interference
from wireless operations; our Pandora ad-supported business has
suffered a substantial and consistent loss of monthly active users,
which may adversely affect our Pandora business; our failure to
convince advertisers of the benefits of our Pandora ad-supported
service could harm our business; if we are unable to maintain
revenue growth from our advertising products our results of
operations will be adversely affected; changes in mobile operating
systems and browsers may hinder our ability to sell advertising and
market our services; if we fail to accurately predict and play
music, comedy or other content that our Pandora listeners enjoy, we
may fail to retain existing and attract new listeners; privacy and
data security laws and regulations may hinder our ability to market
our services, sell advertising and impose legal liabilities;
consumer protection laws and our failure to comply with them could
damage our business; failure to comply with FCC requirements could
damage our business; if we fail to protect the security of personal
information about our customers, we could be subject to costly
government enforcement actions and private litigation and our
reputation could suffer; interruption or failure of our information
technology and communications systems could impair the delivery of
our service and harm our business; the market for music rights is
changing and is subject to significant uncertainties; our Pandora
services depend upon maintaining complex licenses with copyright
owners, and these licenses contain onerous terms; the rates we must
pay for "mechanical rights" to use musical works on our Pandora
service have increased substantially and these new rates may
adversely affect our business; failure to protect our intellectual
property or actions by third parties to enforce their intellectual
property rights could substantially harm our business and operating
results; some of our services and technologies may use "open
source" software, which may restrict how we use or distribute our
services or require that we release the source code subject to
those licenses; rapid technological and industry changes and new
entrants could adversely impact our services; we have a significant
amount of indebtedness, and our debt contains certain covenants
that restrict our operations; we are a "controlled company" within
the meaning of the NASDAQ listing rules and, as a result, qualify
for, and rely on, exemptions from certain corporate governance
requirements; while we currently pay a quarterly cash dividend to
holders of our common stock, we may change our dividend policy at
any time; our principal stockholder has significant influence,
including over actions requiring stockholder approval, and its
interests may differ from the interests of other holders of our
common stock; if we are unable to attract and retain qualified
personnel, our business could be harmed; our facilities could be
damaged by natural catastrophes or terrorist activities; the
unfavorable outcome of pending or future litigation could have an
adverse impact on our operations and financial condition; we may be
exposed to liabilities that other entertainment service providers
would not customarily be subject to; and our business and prospects
depend on the strength of our brands. Additional factors that could
cause our results to differ materially from those described in the
forward-looking statements can be found in our Annual Report on
Form 10-K for the year ended December 31, 2021, which is filed with
the Securities and Exchange Commission (the "SEC") and available at
the SEC's Internet site (http://www.sec.gov). The information set
forth herein speaks only as of the date hereof, and we disclaim any
intention or obligation to update any forward looking statements as
a result of developments occurring after the date of this
communication.
Source: SiriusXM
Contact for SiriusXM:
Investor contact:
Hooper Stevens
212-901-6718
Hooper.stevens@siriusxm.com
Media contact:
Patrick
Reilly
212-901-6646
patrick.reilly@siriusxm.com
View original content to download
multimedia:https://www.prnewswire.com/news-releases/siriusxm-reports-first-quarter-year-2022-results-301534884.html
SOURCE Sirius XM Holdings Inc.