And right now were certainly seeing significant take up in Android automotive operating system, the integrated software from Google. What is SiriusXM, What's On, Subscriptions, Shop and Listen Online. Thanks, Steven. Welcome to SiriusXM's first quarter 2023 earnings conference call. But our team's pick for most people to watch . We had a really solid quarter with ad revenue down just 2%. The Motley Fool has a disclosure policy. Thanks, David. First of all, Sean, thanks very much. Sure. And CSAT is at an all time -- our satisfaction is at an all-time high since 2009. And in March, we started to see that tail off a little bit. Just subscribe to Sling, Fubo TV, or DirecTV Stream to get Newsmax TV on your Android smart TV. On the self-pay side, I would continue to expect improvement in year-over-year comps as we roll out the rate increase. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services. As we previously discussed, CapEx should increase by some 200 million for the full year 2023 as we ramp SXM-11 and SXM-12 on top of ongoing preparation for SXM-9 and SXM-10. With that, Ill turn it over to the operator for Q&A. Sirius XM Or search "Newsmax" on your favorite podcast platform. This feature drives listener engagement that leads to higher retention. And, Sean, best of luck in your new opportunity. Additionally, we debuted our first-ever integrated billing with T-Mobile, expanding upon our existing six-month SiriusXM streaming offer and adding a Pandora Premium four-month trial offer, making it even easier for trialers to transition into paying subscribers. Supporting this, first quarter vehicle trial starts were up 7% overall compared to the fourth quarter, including a 3% rebound in new vehicle trials and an 11% rebound in used vehicle trials. Sirius XM has fallen short of Wall Street's profit targets in two of the past three quarters, and Thursday's financial update might not provide any relief. No, Newsmax TV isn't included in your Hulu subscription. The Sirius XM segment delivered $1.7 billion in revenue, which was down 2% principally due to lower OEM paid promotional trial revenue reflected in ARPU of $15.29 and decline subscriber revenue connected vehicle, partially offset by a weighted average subscriber base that was up 1% year-over-year. Listeners can hear Kevin show Gold Minds on all major podcast platforms with extended episodes available early to subscribers on his Laugh Out Loud radio channel only on SiriusXM. Our advertising business operated under the unified SXM Media banner delivered solid first quarter results bolstered by growth in podcasts and programmatic sales. Jennifer, maybe just a follow-up on that line of discussion. And we're just in the phase of really testing and learning on these rollouts and we'll be much better positioned when we build out some of the capabilities in the new platform in terms of easier sales flows, better onboarding, more personalized recommendations to take advantage of these partnerships going forward. And in particular with Walmart, were testing an offer that allows consumers to choose, do they want a satellite trial or an in-car trial or a streaming trial? Is It Time to Buy This Year's Worst-Performing Growth Stocks? Please proceed with your question. Entertainment Television, ESPNU, INSP, Science, FYI, MTV2: Music Television, BBC America, beIN Sports, CMT, and more. To make the world smarter, happier, and richer. Sure. But positioning for the future, we have had a long history since we launched annual average increases in ARPU of about 3%. Our ad-supported portfolio from Pandora to the SiriusXM Podcast Network, which also includes two of the largest Hispanic podcast networks with Pitaya and reVolver offers opportunities for advertisers to reach large and diverse audiences in audio. The dynamics are tough in the market because many buyers as new car prices start to come down, may migrate from used cars to new cars, and inventories are still pretty tight on the used car side. No, Newsmax TV isn't included in your YouTube TV subscription. It will be less impactful than the last time we did the rate increase because we focused primarily on full-price plans, and that has a lot to do with maintaining our promotional plans and market our discounted plans to be able to better onboard and retain our subscriber base where it makes sense. I was just wondering if you could give us an update on that subscriber kind of loose commentary. Thank you, and good morning, everyone. First, Sean, good luck. Sirius XM's guidance calls for $9 billion in revenue this year, flat with where it landed in 2022. Flixed is a website run by a small remote team that helps people navigate the rapidly evolving streaming ecosystem. [Operator Instructions] Thank you. Additionally, we are ramping up our marketing technology capabilities to better leverage our rich content to deliver more personalized messaging in our marketing efforts. Apr 27, 2023, 8:00 a.m. I will now turn the call over to Sean for some brief remarks, and then Tom will go through the financials in more detail. One, we don't comment on anything we're looking at directly. And please let me add my welcome to Tom Berry, who may be new to this call, but is a veteran of Sirius XM and its finance organization since 2009. Thanks Matt. Welcome to SiriusXM's first quarter 2023 operating and financial results conference call. Our final question is from the line of Matthew Harrigan with Benchmark Company. Sirius XM (SIRI) Q4 2022 Earnings Call Transcript, U.S. Money Supply Is Doing Something It Hasn't Done in 90 Years, and It May Signal a Big Move for Stocks, Why I Refuse to Chase the Maximum Social Security Benefit, A Bull Market Is Coming: 3 Stocks to Buy Without Hesitation, 1 Trillion-Dollar Growth Stock Down 28% You'll Regret Not Buying on the Dip, Join Over Half a Million Premium Members And Get More In-Depth Stock Guidance and Research, Copyright, Trademark and Patent Information. Were increasingly flexible and even agnostic in how we add subscribers and accommodate listening preferences. *Average returns of all recommendations since inception. SiriusXM So the number in Q1 was anticipated, right? Thanks. Sirius XM's guidance calls for $9 billion in revenue this year, flat with where it landed in 2022. And then to your question on streaming net ads, we did -- to some extent, we've gone through this hurdle of the reduced marketing spend we had in the fourth quarter, and now we're operating at a much more efficient level. Image source: The Motley Fool. Thank you. This month SiriusXM signed a new five-year deal with Hartbeat, the production company run by actor and comedian Kevin Hart. And our ad technology business continues to be extremely profitable, growing about 20% year-over-year and partially offsetting broader headwinds during the first quarter. In short, I am pleased with our financial performance this quarter, and I'm confident in our opportunity to expand our subscriber base as auto sales recover and relaunch the next-generation SiriusXM experience later this year. Our next question is from the line of Steven Cahall with Wells Fargo. But we're still waiting to launch a lot of these underlying capabilities and functionality to be able to support the streaming business, not only for streaming-only subscribers but also as it continues to support our in-car business through customers listening outside of the car and 360L in the car. As we approach the launch of our next-generation SiriusXM experience, we are confident that the upgrades will boost engagement and customer satisfaction for in-car and streaming-only customers alike. *Stock Advisor returns as of April 24, 2023. While we continue to see opportunities for a bigger streaming-only business, car sales will remain the dominant driver of our subscriber funnel. However, to meet evolving consumer expectations, particularly with younger audience segments, we must address barriers, such as pricing, control, and content discovery. Let's get into the best options for everyone. Thank you, Sean, and thank you, Jennifer. Some sports might be live on Fubo TV right now. Jennifer, maybe just a follow-up on that line of discussion. And James, to your second question, so we'll see how this -- how the OEMs navigate kind of the integration of CarPlay and Android Auto, I think GM seems to be somewhat unique in that path. Great. There are many ways to watch Newsmax TV without cable, including Sling, Fubo TV, or DirecTV Stream. So I think there is a case to be made for demand to start coming back, maybe some of the pent-up demand to be released and auto sales to slowly, but incrementally improve over the course of the year. In particular, what are the things that are going to allow for the streaming-only subscriber losses sort of moderate? In the first quarter, we outperformed our initial financial expectations, putting us in a strong position to increase our full year guidance for adjusted EBITDA and free cash flow. This past quarter, we introduced a first-of-its-kind six-month trial offer for Walmart Plus members, giving them the choice of in-car or streaming-only packages. We expected Q1 to be a low point in terms of net adds. And so were really well positioned on the podcasting side. Making the world smarter, happier, and richer. Please disable your ad-blocker and refresh. Have a Samsung smart TV or another type of Android TV? Subscribe to Sling, Fubo TV, or DirecTV Stream to get Newsmax TV on Roku. No, Newsmax TV isn't included in your Philo subscription. The dynamics are tough in the market because many buyers as new car prices start to come down may migrate from used cars to new cars and inventories are still pretty tight on the used car side. I look forward to leveraging my experience of leading the SiriusXM controllers team to more broadly work with operations and the leadership team who shape the company's long-term direction. Thanks, Hooper, and good morning, everyone. WebNewsmax Podcasts The Rob Carson Show Complete replay of the nationally syndicated talk radio show "The Rob Carson Show" by Newsmax Radio. And is it really the downward pressure weve seen over the last few years had a lot to do with the dramatic increase we saw in pen rates over that time period. SiriusXM has announced that Howard Stern will bring his show to Miami to officially open its newest broadcast complex. What channel is NewsMax on Sirius XM Gross profit in the Pandora and off-platform segment was $111 million, down 19% and representing a margin of 24%. This feature drives listener engagement that leads to higher retention. I was just wondering if you could give us an update on that subscriber kind of loose commentary. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. Well target leverage in the low to mid-3s in light of the macroeconomic factors. So its rolling out. I would expect the second half to be positive and that sort of nets us out to the modestly negative. SiriusXM bought Conan OBriens Team Coco last year in a $150 million deal that also included a five-year talent agreement for Team Coco staff to collaborate on content, including the new satellite radio channel. Is It Time to Buy This Year's Worst-Performing Growth Stocks? One, we dont comment on anything were looking at directly. As we begin, Id like to remind our listeners that todays call will include. Sirius XM So whats key is the rollout, and this has been a long time coming, and the promise of 360L is now delivering. On the used car market, just to start with that, the used car sales were actually pretty strong in the first couple of months of the year. At this time, Ill turn the conference over to Hooper Stevens, Senior Vice President of Investor Relations and Finance. We have a service with very high satisfaction, low churn, and one of the leading ARPUs across direct-to-consumer media, not just audio. So your commentary on the intent to buy and the improving funnel sounds constructive. And on that note, Tom if you could just give us an idea, your key priorities coming into the role, sort of whats at the top of the bullet point list on the whiteboard in your office? This SiriusXM hack crack apk (SiriusXM Dealer App) allows its users to hack Sirius satellite radio signals and refreshes their free trials every three months. The next question is from the line of David Joyce with Seaport. We advise listeners to not rely unduly on forward-looking statements and disclaim any intent or obligation to update them. If it has a chance to turn things around, investors don't have to wait long for the next big test. That's due to the great content relationships, we have, on the representation side, and our ability to bring brands into podcasting, Witz said. Please proceed with your questions. You'll be missed. So some OEMs will choose to pay for the trial and receive a higher subsidy. SiriusXM Theres so much here you can explore it forever, and while But you just have two rather polarizing TV news personalities becoming available, albeit, some bad actor issues at Tucker Carlson, Don Lemon. All of this is a testament to our leading position in talk audio, and we will continue to leverage our world-class content to draw in new SiriusXM subscribers while also giving ad-supported listeners access to our high-quality programming. Unfortunately, for Sirius XM Shareholders, the stock is playing to empty halls. Listen Page - Newsmax Broadcasting Inc A question-and-answer session will follow the formal presentation. And I kind of apologize for the question, but I can't resist. 360L mix is also sounds like tracking up nicely. OK. And to the point on 360L, can you give us a sense of right now how material 360L is for your subscriber acquisitions? Barton Crockett -- Rosenblatt Securities -- Analyst. Good morning. Great. ET. Podcasting continues to be a bright spot, Witz said. Here's why: If, for whatever reason, watching Newsmax TV on Sling doesn't work for you, we've also rounded up 2 more options and we even divided them up into the best picks for people who also watch lots of sports, news, reality TV, and more. Partnership is sort of an untapped opportunity. I'm glad you extended your tenure in the media industry here. So that pressure will abate to some extent. I just saw a stat the other day that we watch quite frequently about intent to buy, and it's at one of the highest levels we've seen over the last couple of years. Sirius XM Fubo TV isn't only great for sports fans, though. With strong similarities between talk radio and podcast, we can do more to seamlessly integrate them across our service and provide more control and discoverability for our subscribers. And we are starting to see that already in some of our numbers. Do you have -- you usually you guys have a pretty good line of sight on that. And thats due to the great content relationships we have on the representation side. The other two components of Sirius XM's full-year outlook -- adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of roughly $2.7 billion and $1.05 billion in free cash flow -- are well below last year's results. This will have positive implications to ARPU, conversion, retention and subscriber growth in 2024 and beyond. Thank you. If you're trying to watch Newsmax TV without cable and you also watch a lot of sports, Fubo TV is probably the best pick for you. SEE INFOTAINMENT DETAILS SIRIUSXM TRAVEL LINK The satellite radio provider has sold out now. Hey, great. Hooper Stevens. It's traditionally been much more D2C and D2C has been soft in the first quarter. With these trends and more targeted cost control initiatives, were now able to increase our full year guidance for adjusted EBITDA from $2.7 billion to approximately $2.75 billion and our free cash flow expectations from $1.05 billion to approximately $1.1 billion. Our advertising business operated under the unified SXM Media banner delivered solid first quarter results, bolstered by growth in podcast and programmatic sales. Here youre seeing the normal effects of seasonally light ad revenue in the first quarter, combined with recent ad headwinds plus the CPI inflater to web streaming royalties. Our new platform will streamline purchasing and usage in and out of the car and enhance the value of Sirius XM making our service worth the premium for a wider range of audience segments. So it's rolling out. Thanks. What do you see as the right leverage profile, the right mix of capital returns? And while we may in fact be a potential or logical home for anybody that fits into those voices. But we are actually holding back largely until the launch of the new platform, which is in the fourth quarter. Sirius XM is trading for less than 12 times trailing earnings. The Rob Carson Show gives you a humorous yet concerned analysis of And Im excited to see how this year shapes up. But the streaming trial funnel, our challenge has not been trial generation, and weve put very distinct guardrails in place and how were active in performance media in bringing trials into the funnel, partnerships is sort of an untapped opportunity. On the positive side, however, our test-and-learn strategy will enable us to improve streaming subscriber results sequentially throughout the remainder of the year, even with a lower baseline of spend. WebA longtime Newsmax contributor, #1 rated radio host and successful columnist, Gerry Callahan calls it like he sees it and offers sharp commentary on the news of the day. With a huge number of subscription plans covering every conceivable way to get entertained, Sirius XM is one of the best entertainment platforms around for sure. So that pressure will abate to some extent. WebListen to music, live sports play-by-play, talk & entertainment radio and & favorite podcasts. [Operator instructions] One moment please will we poll for questions? So Q1 was impacted, as we said, by lower fourth-quarter trials and then third quarter, but Q1 trials have been stronger -- were stronger than Q4. SIRI earnings call for the period ending March 31, 2023. David Joyce -- Seaport Research Partners -- Analyst. Username. Sirius followed their initial launch with two more which gives them a total of three active satellites in orbit which deliver high-quality radio programs. Theyjust revealed what they believe are thetenbest stocksfor investors to buy right now and Sirius XMwasn't one of them! Before jumping into the quarters results, Id like to welcome Tom Barry as our incoming Chief Financial Officer. Welcome to SiriusXM's First Quarter 2023 Earnings Conference Call. We increased the number of women's games we deliver to our subscribers to almost 800 broadcasts, doubling from the previous season. And as we have always said, business models really do matter. Listen to music, live sports radio, the best talk and entertainment radio. The Favorites area will appear; click on it, and the web will show all of your presets. Generally, the expectation was modestly negative. The channel features exclusive hosts such as Cam & Company from NRANews (until June 2018), David Webb, and Andrew Wilkow. Listeners can hear Kevins show Gold Minds on all major podcast platforms with extended episodes available early to subscribers on his Laugh Out Loud Radio channel only on Sirius XM. Sirius XM Patriot Theyre looking for more opportunities to more easily navigate the service. Sirius XM Holdings Inc. (NASDAQ:NASDAQ:SIRI) Q1 2023 Earnings Conference Call April 27, 2023 8:00 AM ETCompany ParticipantsHooper Stevens Senior As Jennifer noted, the first quarter played out as we expected, albeit with a bit stronger finish to our advertising revenue performance and gradually improving trial starts. The Motley Fool has no position in any of the stocks mentioned. Self-pay subscribers decreased by 347,000 during Q1 as a result of fourth quarter declines in trial starts for new and used vehicles, reduced marketing spend, and seasonally higher churn typically seen in the first quarter. Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. On the churn side, in-car, Q1 is always seasonally soft for us, and we anticipate that to be true for this year as well. And I guess what I wanted to ask about is just a follow-up on the subscriber progression here. We extended agreements with the NHL and NASCAR ensuring continued access for our subscribers for years to come. Image source: The Motley Fool. Additionally, we debuted our first ever integrated billing with T-Mobile, expanding upon our existing six-month Sirius XM streaming offer and adding a Pandora premium four-month trial offer, making it even easier for trialers to transition into paying subscribers. Putting all this together, adjusted EBITDA of $625 million was down 9% over the prior year. Okay. But we are actually holding back largely until the launch of the new platform, which is in the fourth quarter. Satellite Radio All discussions of adjusted operating results exclude the effects of stock-based compensation. Our team is working diligently to position us for success in the second half of 2023 and beyond, and I'm excited to see how this year shapes up. As previously discussed, we reduced marketing spend, particularly around streaming in anticipation of product improvements we are launching later this year. Devices supported by Fubo TV include: web browsers, Android, iOS, Amazon Fire, Roku, Chromecast, Apple TV, LG/Samsung Smart TVs, and Xbox One. For more information about those risks and uncertainties, please view SiriusXM's SEC filings and today's earnings release. Learn more about Sling plans and pricing. These collaborations demonstrate our strategy of inviting people to experience Sirius XM in the way that suits them best. Complete replay of the nationally syndicated talk radio show "The Rob Carson Show" by Newsmax Radio. At this time all participants are in a listen-only mode. The company says it ended the first quarter with 46.7 million monthly active users, an eight percent decline from a year earlier. Other channels on Fubo TV include: Hallmark Movies & Mysteries, TV Land, BET, Bravo, Comedy Central, Discovery Family Channel, E! A connected car offers cheaper alternatives. Sling is available starting at $40 per month for 30 channels, including Bloomberg, BBC America, and Cheddar Business. Matthew Harrigan -- The Benchmark Company -- Analyst. Well continue our current process of being cautious and disciplined. Sirius is getting a cut of the $ from those ads on the radio. So younger generations in particular are looking for more opportunities to control the listening experience. Just to talk about my whiteboard, what were focused on or Im focused on in the early days is a lot of what youll see in raising our guidance in some of the other areas is were investing a lot of time in our cost structure and ensuring that our spending and our cost optimization is headed the right direction with it in an effective manner. Great. Thats very helpful. SiriusXM also launched Team Coco Radio in November to leverage the podcasts that the Conan OBrien-led production studio creates. How sizable of a trial acquisition funnel you think that could become over the next few years, and maybe how you see that fitting into the broader digital strategy later this year. That's why we recommend trying Sling. Our total new and used car penetration rate was 80% and 55% respectively, and our enabled fleet stands at about 154 million vehicles. And we are just getting started. [Operator Instructions] Please note this conference is being recorded. We ended the quarter with a leverage at 3.4 times, which is within our targeted range of low to mid-threes. If you're someone who watches a lot of news, you probably want to subscribe to a streamer with access to the most popular news channels. Is this happening to you frequently? In addition to satellite radio, customers who buy or lease an equipped vehicle are eligible to receive a 3-month trial subscription to one or more of the following services. At this time, well be conducting a question-and-answer session. Newsmax While this is a great indicator of whats to come, these features are currently only available in a limited number of 360L enabled vehicles, and awareness of these features is still low. Thanks, operator, Rob. Maybe for Jennifer on distribution. SiriusXM has announced that Howard Stern will bring his show to Miami to officially open its newest broadcast complex. Jennifer, could you talk a little bit about the subscriber outlook for the rest of the year in particular, what are the things that are going to allow for the streaming only subscriber losses to sort of moderate? Thank you, and good morning, everyone. Because this typical seasonality of our business in terms of receipts versus expenditures, combined with the timing of our capital expenditures we expect to produce a meaningful portion of 2023's free cash flow later in the year. I mean what portion are coming in on that platform? We believe our overall subscriber performance should also trend better quarter over quarter as the year progresses. Are you seeing any flex in terms of the categories that are participating or just kind of tailwinds for audio advertising or even irrespective of the economy? Invest better with The Motley Fool. So with that, let's jump right into it. Good morning. SiriusXM has announced that Howard Stern will bring his show to Miami to officially open its newest broadcast complex. We have seen the percentage of listeners consuming these genres more than double versus a year ago, driven by younger audiences who value the more controlled listening experience. And its driven a lot by the programming additions that weve made and the streaming access. Alongside our ad tech success, this quarter, we renewed U.S. and international sales agreements with SoundCloud and our advertising relationship with the own podcast network. We also delivered better-than-expected ad revenue, partly due to our leading self-service and programmatic solutions that are allowing us to capture closed-end bookings, and I will address this more in a few minutes. Shows & Schedules 124 Listen Live SiriusXM Patriot Here, you're seeing the normal effects of seasonally light ad revenue in the first quarter, combined with recent ad headwinds plus the CPI inflator to web streaming royalties. And how does that affect the placement and role of the SiriusXM product? I just saw a stat the other day that we watch quite frequently about intent to buy and its at one of the highest levels weve seen over the last couple of years. What Channel is Newsmax on Sirius XM Radio? - hamtronics.com Transitioning from a one size fits all approach to a dynamic multi-channel individualized approach, well promote only heard hear moments and exclusive talent to drive subscriber conversions among their fans. Sirius XM Stock Has a Lot to Prove This Week, 3 Nasdaq 100 Stocks That Are No-Brainer Buys in April, I Wouldn't Touch This Stock With a 10-Foot Pole 10 Years Ago -- Now I Can't Stop Buying Shares. Sirius XMs Super Bowl broadcast this year was the most listened to in our history and strong engagement continued during March Madness, particularly with NCAA Womens Basketball. And returning this fall, Let's Go, hosted by Tom Brady, Larry Fitzgerald, and Jim Gray, will be available first to our subscribers, then on-demand exclusively in our app. People find our way to our door and we consider a lot of factors before we make any decisions. And the trends that we saw in Q1 in large part are reversing as we go through the year. Tom, take it away. As you know, it is a big part of our funnel but we have seen used car trial starts did increase in Q1 versus Q4, which sets us up well. And so we're really well-positioned on the podcasting side. Hi, good morning. Sure. With that, I'll hand the call over to Jennifer. We intend to make prudent decisions to remain a very profitable business that continues to serve as a primary audio subscription service for certain audience segments while being complementary to interactive services for others. This contributed to the expected negative subscriber growth in the quarter.