Sirius XM Earnings: Subscriptions Have Improved, but Off-Platform Wins Offer Hope of Durable Stability

"Sirius XM's first-quarter sales grew 1% year over year, marking the best quarter on the top line since 2022. Much-improved subscriber losses and positive pricing trends led to the result."

"Podcast ad revenue grew 37% year over year. We estimate that total off-platform ad revenue grew nearly 24% and made up about 9% of total Sirius XM revenue during the quarter."

"Despite its recent appreciation, we think the stock is still priced for a long-term decline, while we believe sales and profits will generally be flat."

"During the quarter, the firm lost 111,000 paying SiriusXM subscribers. However, plan adjustments over the past year have stabilized average revenue per user, which was up 1%."

Sirius XM's first-quarter sales increased by 1% year over year, marking its best performance since 2022. Subscriber losses improved, and positive pricing trends contributed to this growth. Off-platform ad revenue, particularly from podcasts, grew significantly, with a 37% increase year over year. Despite these improvements, long-term revenue growth from the SiriusXM platform is doubtful due to competition. Recent partnerships, including one with YouTube, are expected to enhance advertising growth, although they may impact margins. The firm lost 111,000 paying subscribers but stabilized average revenue per user through price adjustments.

Read at www.morningstar.com