SiriusXM Posts Good Quarter – Ups Guidance
The big news with SiriusXM’s Q2 was not that they hit the analysts targets, but rather what the future holds in store. The company reported a profit of 2 cents per share on revenue of $1.12 billion and a profit of $102.8 million. SiriusXM raised its subscriber guidance from 1.4 million additions this year to 1.8 million. The company also raised its revenue forecast to $4.5 billion. Highlights of the quarter included:
- Self-pay Net Additions Increase 37% to 519,000
- Record Second Quarter Revenue up 8% to $1.12 Billion
- Net Income of $103 Million, Including a Pre-tax $108 Million Settlement
- Adjusted EBITDA Climbs 12% to a Record $415 Million
- Free Cash Flow Reaches $371 Million, up 11%
- GAAP EPS of $0.02; Adjusted EPS of $0.03, Excluding Settlement
It is also notable that SiriusXM repurchased 144 million of its own shares during the quarter for $560 million. The company improved its churn to 1.6%, which would seem to indicate that the product remains sticky. The success in converting trial subscriptions to self paying subscriptions was about 41%, in line with recent quarters. The company reports an average revenue per user per month at $12.42. and a subscriber acquisition cost of just $32. This implies that the company can break even on a subscriber after just 2.5 months.
SiriusXM stock now trades in the $4 range and seems to be getting upgrades from the street.
You call it a “good quarter” I call it a GREAT QUARTER. It is never enough from siri.
You are so right, Sirifair6. No matter what positive news SiriusXM generates,the reaction always seems to be predictably underwhelming,laced with massive skepticism and disinterest. Any company would be thrilled to report this kind of progress. The contempt for this company still lingers, but those who are patient and continue to support SiriusXM will have the last laugh when all is said and done. Most of these analysts are clueless. I predict that SiriusXM will succeed beyond all of the naysayers expectations, and I’ve felt that way all along. It’s a unique service, with unique content. For those who are discerning and value quality, and who recognize that radio is more than just being a streaming jukebox, SiriusXM is the only choice.
Thank you, SteveO!
“SiriusXM is the only choice.”The beauty of it that it is not only “is” but also will be! There will be a breakout at some point sooner or later.
Sirifair6 – You are welcome. Your enthusiasm for SiriusXM is totally justified in my mind. What they are doing as far as content – diversification, selection, innovation, and actually delivering a radio service as opposed to a “me too” Pez dispenser spitting out songs – is an ignore at your own risk situation that will have a lot of people saying “I should have” after the ship has sailed. I’m also quite sure they didn’t buy Agero just to throw their money away. The connected car/SiriusXM service bundle will be a compelling, enticing proposition when it kicks in, and will only create more momentum. The fact that it’s not wildly popular with the masses only convinces me that eventually it will be. For those who say it costs too much, I would ask all the frugal penny pinchers out there to check their monthly bottled water, soda, cable, phone and lottery ticket bills. Their argument is complete nonsense.
I always look forward to your insightful comments!
If the stock could just find a $4.50-ish floor then that would put it beyond reach of a portion the “dailies” and start to attract institutional buyers.
Am i wrong in thinking that there was a significance to LMCA crossing over the 60% of Siri shares mark? They are clearly gonna do that this quarter. Does that matter?
Im my view, no, it does not matter at all. Whta does matter is the uncertainty. How far is siri going to go with buybacks because THEORETICALLY they can by back all shares except for liberty’s. Second thing that matrters is what are liberties plans regarding siri?
These two factors matter tremendously and they instill huge uncertainty about the company’s future!!!
Otherwise the company will be doing better than today hitting record after record with each Q. I expect the number of nt subs annually to get to 3M at some point in not so distant future.
I look in after a year of absence and this joke of a stock is playing the same game it’s been playing for years, wow what a joke