Sirius XM Holdings Inc Q3 2024 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Kutgun Maral - Evercore ISI - Analyst : Good morning and thanks for taking my question. Just one, it's certainly encouraging to see the efforts on the pricing and packaging side. I was hoping you could expand a bit more on how you're looking to balance the opportunity to expand your TAM and go after new subscribers versus the risk of pricing down your existing subscriber base over time? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. OCTOBER 31, 2024 / 12:00PM, SIRI.OQ - Q3 2024 Sirius XM Holdings Inc Earnings Call

Question: Kutgun Maral - Evercore ISI - Analyst : Perfect. Thanks, Jennifer.

Question: Jessica Reif Cohen - BofA Global Research - Analyst : Thank you. This one is for Scott. There's just a lot going on in content. And I just hope that you -- I mean you've added big name to podcasting talent, which you mentioned, but there's been several over the last few years. I think next year, Howard Stern's contract comes up. So could you just talk about your overall podcast strategy, how profitable can this division be? How quickly can you monetize Call Her Daddy? And then any preliminary thoughts on Howard's upcoming contract?

Question: Jessica Reif Cohen - BofA Global Research - Analyst : Great. Thank you so much.

Question: Steven Cahall - Wells Fargo Securities LLC - Analyst : Thank you. First, I was wondering if you could just give us any more color on the complexion of the self-pay net adds in the quarter. You talked about the promotional and the streaming subscriber additions. I think streaming total subscribers or net adds is something we're all focused on at this point. So I was wondering if you could just give us any more information on what those did as well as maybe how the engagement looks like with those customer cohorts? And then Jennifer, as you continue to focus on the streaming audio product and you think about the competition in streaming audio, I was wondering if you think there's an opportunity to eventually ship that product to having some amount of on-demand music functionality. I know that would change the margins. But just wondering how you think about the evolution of the streaming-only experience as an addition to the in-car experience and what those tools might be? Thank you. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. OCTOBER 31, 2024 / 12:00PM, SIRI.OQ - Q3 2024 Sirius XM Holdings Inc Earnings Call

Question: Steven Cahall - Wells Fargo Securities LLC - Analyst : Thank you.

Question: Stephen Laszczyk - Goldman Sachs - Analyst : Hey. Good morning. Thank you for taking the questions. Two, if I could. First, for Jennifer, just on the state of the ad market. Could you talk a little bit more about what you're hearing from your ad partners as we head into the fourth quarter. How much visibility do you feel like they have into ad budgets going into year-end and then perhaps even early 2025? And then within that, how much visibility do you feel like you have into your ad partners choosing premium audio? I think you called out some of the competing ad inventory that's out there. Just curious if you could give us an update on that? And then secondly, just on the trade-off between churn and ARPU would appreciate any of your latest thoughts on how you're approaching balancing the two. Churn came in towards the lower end of the historical range this quarter, but at the same time, I think you called out some promotional pricing. Just curious how we should think about these two levers trending as you look to maximize revenue. Thank you.

Question: Stephen Laszczyk - Goldman Sachs - Analyst : That's great. Thank you, both.

Question: David Joyce - Seaport Global Securities LLC - Analyst : Thank you. Another question on advertising if I could. Looking at your various initiatives such as turning on the ads in-car for the non-subscribers and also working on replatforming. So all the streaming and satellite and 360 are all in the same platform. When do you expect these to start contributing and showing through and offsetting the broader ad market challenges that you've been discussing? Thanks.

Question: David Joyce - Seaport Global Securities LLC - Analyst : All right. Thank you, Jennifer.

Question: Cameron Mansson-Perrone - Morgan Stanley - Analyst : Thank you. Good morning. First, I wanted to follow up on ARPU. You guys in the past have talked about every other year philosophy or cadence of price increases. Is that still something we should expect heading into 2025? And just any color on how selective across the packages that any activity might be or whether we should expect anything more holistic on the satellite side? And then on the sales and marketing front, down nicely year over year even as you guys were able to drive improvement in net adds. So wondering if you could just comment on what's allowing you to find efficiency there while still driving nice funnel improvement and net adds improvement? Thanks.

Question: Cameron Mansson-Perrone - Morgan Stanley - Analyst : Very helpful. Thank you, both.