SiriusXM Radio Stock Loses Value As Q1 Earnings Disappoint Investors
Sirius struggles to grow
Sirius continued to lose self-pay subscribers, falling 359,000 to 33 million because of a decline in trial starts at the end of 2023 and higher self-pay monthly churn at 1.7%. Overall revenue fell 1% to $2.16 billion, outperforming estimates at $2.12 billion, but revenue from SiriusXM dropped 1% to $1.7 billion. Ad revenue growth, however, showed a bright spot up 7%, compared with a 1% drop in subscription revenue.
What's next for SiriusXM
SiriusXM reiterated its 2024 guidance with revenue expected to reach $8.75 billion, adjusted EBITDA of $2.7 billion, and free cash flow of $1.2 billion, projecting a 2.2% decline from 2023 levels. Despite a market cap of $11 billion, revenue forecasts slightly missed consensus at $8.79 billion, raising growth concerns and weighing on the stock's performance.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.