Audio entertainment company SiriusXM reported fourth-quarter results broadly in line with Wall Street expectations, with total revenue of about $2.3 billion and earnings per share of 9 cents.
The company also added 348,000 self-pay subscribers during this period. On a conference call with analysts, CEO Jennifer Witz said average revenue per user peaked in 2022, while churn (the percentage of subscribers who unsubscribe) hit a record low. She calls this combination “a reflection of subscribers’ high level of satisfaction with the premium listening experience that we are constantly developing and improving.”
Wall Street had expected sales of $2.3 billion and earnings of 8 cents per share.
The company released financial guidance for 2023 that includes revenue of $9 billion. It would be flat by 2022.
Investors reacted negatively to the earnings report and full-year outlook, sending Sirius shares down nearly 6% to around $5.50 in early trading. They recently fell to their lowest level since 2020.
SiriusXM has diversified in recent years by acquiring music streamer Pandora and entering podcasting, but its traditional in-car satellite subscriber base remains under pressure. New and used car sales fell 3% and 7%, respectively, in the quarter, the company said. Witz pointed to the impact of macroeconomic factors such as inflation on car prices, adding that new and used car sales “drive our primary trial rights and are a key element of how we then add self-paying subscribers.”
While the advertising climate has been turbulent and podcasting is not immune to this trend, SiriusXM has put together an impressive lineup of top titles. To be one of the most famous crime junkie, office ladies, Dateline NBC, Pod Save America And Conan O’Brien needs a friend. Driven by podcasts, the company reported full-year 2022 ad revenue of $475 million, up 34% from 2021.
Witz said audience-based advertising tools are starting to provide a boost. “This part of our offering offers greater efficiency through automation, which continues to evolve in podcasting, making it a fantastic opportunity for us as we continue to grow this part of our business,” she said.
Source: Deadline
Elizabeth Cabrera is an author and journalist who writes for The Fashion Vibes. With a talent for staying up-to-date on the latest news and trends, Elizabeth is dedicated to delivering informative and engaging articles that keep readers informed on the latest developments.
