Our final question is from the line of Matthew Harrigan with The Benchmark Company. The reversal isn't necessarily permanent, but it will sting in the near term. Good morning. 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? Thanks, Hooper, and good morning, everyone. The focus comes as advertising has more attention at SiriusXM, despite an ad market that is presenting challenges for most other companies. At this time all participants are in a listen-only mode. And I believe that is a very strong proof point for what we can continue to drive and see when we launch this new platform that is going to support 360L, but also drive cross-listening in and out of the car and provide much more personalized listening experiences. We ended the quarter with a leverage at 3.4 times, which is within our targeted range of low to mid threes. So with that, let's jump right into it. And while we may, in fact, be a potential or a logical home for anybody that fits into those voices. 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. Get your subscription for $40 per month and get access to Newsmax TV and others, like Bloomberg, BBC America, and Cheddar Business. Before jumping into the quarter's results, I'd like to welcome Tom Barry as our incoming chief financial officer. This past quarter, we combined Sirius XMs podcast group and comedy and entertainment group into one unit. WebSiriusXM delivers a broad range of information directly to your cars navigation system. I think youll see continuity as I lead our talented finance team and continued our disciplined approach financial decision making. And then over time, in the years to come, it will get to 80% of our trial starts. Satellite Radio Our total new and used car penetration rate was 80% and 55% respectively, and our enabled fleet stands at about 154 million vehicles. Before jumping into the quarters results, Id like to welcome Tom Barry as our incoming Chief Financial Officer. SEE INFOTAINMENT DETAILS SIRIUSXM TRAVEL LINK Thank you. James Ratcliffe -- Evercore ISI -- Analyst. Now I listen to Siriusxm Satellite Radio 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. Against the splintering of sports rights in the video space, we offer incredible value as the one-stop audio home for all major sports, and it's powering record engagement of this content. Great. For more information about those risks and uncertainties, please view Sirius XMs SEC filings and todays earnings release. With that, I'll turn it over to the operator for Q&A. SiriusXM has an incredibly solid, profitable business today that benefits from a loyal subscriber base and enviable margins. 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. We'll target leverage in the low to mid-3s in light of the macroeconomic factors. And I think, ultimately, ARPU as well because we can deliver even more content and features to our subscribers. Sirius XM Holdings Inc. (NASDAQ:NASDAQ:SIRI) Q1 2023 Earnings Conference Call April 27, 2023 8:00 AM ETCompany ParticipantsHooper Stevens Senior And I believe that because we were really well positioned to capture late in quarter demand that came in as advertisers started to open up their budgets, because we have these programmatic solutions across music streaming and podcasting. They showed a slight decline in its revenues: down 1.9% year-on-year to $2.14bn. 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. Sling is available starting at $40 per month for 30 channels, including Bloomberg, BBC America, and Cheddar Business. Here youve come in and youve updated financial guidance. Despite its lack of ESPN, the service offers almost every league, including NFL, NBA, MLB, NHL, and more. Please proceed with your question. And on that note, Tom, if you could just give us an idea, your key priorities coming into the role, sort of what's at the top of the bullet point list on the whiteboard in your office? I was wondering if you talk a little bit to conversion rates. Not every app is available on Apple's App Store, but depending on the streaming service you. Sirius xm Orbiter SB4000/SR4000/SM4000 Receiver * LIFETIME ACTIVE SUBSCRIPTION * Are you seeing any flux in terms of the categories that are participating or just kind of tailwinds for audio advertising even irrespective of the economy? Our next question is coming from the line of Ben Swinburne with Morgan Stanley. SiriusXM reported a rare drop in satellite radio users for the first quarter, and it told analysts to expect those figures to trend downwards throughout 2023. Yes, Barton. So we believe no matter what path the OEM chooses we'll be really well-positioned there. 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. This new experience will emphasize simplicity and elegance, provide more control and discoverability, and drive greater consistency between in-car and streaming experiences, better catering to our subscribers as they increasingly listen across devices. Our strong distribution, investment in new product offerings and our unmatched content offering that provided a foundation for future growth. Here you've come in and you've updated financial guidance. Following this build cycle, we do not anticipate any spending on satellites for many years. As we previously discussed, capex should increase by some $200 million for the full-year 2023 as we ramp SXM-11 and 12 on top of ongoing preparation for SXM-9 and 10. Transitioning from a one-size-fits-all approach to a dynamic multichannel individualized approach, we'll promote only heard-here moments and exclusive talent to drive subscriber conversions among their fans, no matter how or where they want to listen. We help resolve pain points facing marketers by using greater automation and making buying more efficient. If you have an ad-blocker enabled you may be blocked from proceeding. I would like to remind everyone that certain statements made during the call might be forward-looking statements as the term is defined in the Private Securities Litigation Reform Act of 1995. Our advertising business operated under the unified SXM Media banner delivered solid first quarter results, bolstered by growth in podcast and programmatic sales. 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. And I guess what I wanted to ask about is just a follow-up on the subscriber progression here. Welcome to Sirius XMs first quarter 2023 earnings conference call. Okay, James, Ill go first. Yes, Newsmax TV is included in your DirecTV Stream subscription. Sirius is getting a cut of the $ from those ads on the radio. You have three options to watch And just on the categories, its been continued improvement in travel, restaurants, casino, even automotive is coming back more, which makes sense and then softness in telecom and some financial services. Pandoras ad hours were 2.59 billion, declined just 4% year-over-year as hours per active users climbed 4.5% with 21 hours per month. In many ways, Sirius XM Holdings(SIRI 2.70%) is an edgy rock band that has gone mainstream. People find our way to our door, and we consider a lot of factors before we make any decisions. Such forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially. And so were really well positioned on the podcasting side. Certainly, theres still uncertainty in the second half I think, but we are hopeful that the market will continue to recover. This will have positive implications to ARPU, conversion, retention and subscriber growth in 2024 and beyond. Our total new and used car penetration rate was 80% and 55%, respectively and our enabled fleet stands at about 154 million vehicles. Sirius XM reports its first-quarter results on Thursday morning. Barrett Sports Media on Twitter: "Are you ready for the @NFL Draft What are you guys seeing among OEMs in terms of their positioning around third-party interfaces on the DASH versus their own? The OEM paid promotional revenue has been trending down over the last few years, and its really just one piece of the puzzle as we look at our economics with our OEM partners. The majority of our trial funnel as you would expect, is represented by the millions of trial starts that we do every year through our automotive partners. If it has a chance to turn things around, investors don't have to wait long for the next big test. With that, I'll hand the call over to Jennifer. And our goal, of course, is to continue a disciplined and thoughtful approach to capital return. Our ability to bring brands into podcasting, its traditionally been much more D2C and D2C has been soft in the first quarter. Thanks, Matt. They will improve over the course of the year as will overall total net ads. So its rolling out. But are there any circumstances where if I was Tucker or Don Lemon, why would I certainly want to be with you on the linear and podcasting side rather than Newsmax or OEM, but is that just two friends for you. And just on the categories, it's been continued improvement in travel, restaurants, casino, even automotive is coming back more, which makes sense, and then softness in telecom and financial services. I will now turn the call over to Sean for some brief remarks, and then Tom will go through the financials in more detail. Start watching with a free trial. Have a Samsung smart TV or another type of Android TV? 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. Invest better with The Motley Fool. 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. Despite market and business challenges, I'm proud of our good start to the year. WebSirius XM offers tons of wildly interesting channels you can explore, which can be found by following this link. We advise listeners to not rely unduly on forward-looking statements and disclaim any intent or obligation to update them. As it now looks to do build its digital business, the company is rethinking how that spoken word content is delivered. I just dont want to focus on ARPU solely because I do think theres demand at lower price points and we are looking at more flexible pricing structures that we will likely implement when we launch the new platform. 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. Let's get into the best options for everyone. Thank you. WebSiriusXM Satellite Radio is a broadcasting company that offers subscription services that allow you to listen to various channels of music, news, sports, and entertainment. OK. And to the point on 360L, can you give us a sense of right now how material 360L is for your subscriber acquisitions? So one of the things we're most proud of is what you alluded to, the true diversity of voices we have on the platform, and basically letting our subscribers and listeners and trialers decide what they want to listen to at any given moment. Obviously, as we said at the year-end call that a lot of our free cash flow and a lot of our numbers will be coming in the second half of the year, but we're going to continue with our disciplined approach, as we've used over the last couple of years. SiriusXM Hey, good morning. So that pressure will abate to some extent. Any commentary on how those are contributing to either the modest decline or the growing funnel and what we should expect for used car activity this year? And I believe that's because we were really well-positioned to capture late in-quarter demand that came in as advertisers started to open up their budgets because we have these programmatic solutions across music streaming and podcasting. Any commentary on how those are contributing to either the modest decline or the growing funnel and what we should expect for used car activity this year? Our strong distribution, investment in new product offerings, and our unmatched content offering that provided a foundation for future growth. 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. Subscribe for FREE! But we are continuing to see progress in advance of that on 360L. And yes, the trends that we saw in Q1 in large part are reversing as we go through the year. Welcome to SiriusXM's first quarter 2023 earnings conference call. Good morning. And then maybe the same question sort of on the in-car business, I think the trial starts are starting to improve. 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. Thank you. Just help us think about bridging the Q1 losses toward better numbers in the back half between those two subscriber bases, if you would. 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. Published: April 25, 2023. Cayman Kelly Celebrates 19 Years on Satellite Radio - MarketWatch Self-Pay net adds declined by 347,000 in the quarter consistent with our expectations given lower fourth-quarter vehicle and streaming trial starts, combined with seasonally higher churn in the first quarter. Pause and rewind live radio. But SiriusXM has their own ad-revenue on those news shows. Thank you. And CSAT is at an all time our customer satisfaction is at an all-time high since 2009. During a conference call with Wall Street analysts, she revealed that SiriusXM combined its podcast group and comedy and entertainment group into one unit during the first quarter. Question on the new trends given the new Mercedes-Benz deal and some recent price increases, what are the impacts on ARPU in the near-term? Our extensive portfolio includes chart-topping podcast by EarWolf and Team Cocoa and exclusive channels featuring A-list talents like Andy Cohen, [Inaudible], and Conan O'Brien. Thats very helpful. But we are well positioned to make sure that our incorporation sustains through whatever model the OEMs choose to pursue. WebSiriusXM Patriot is a conservative talk radio channel on Sirius Satellite Radio channel 125 and XM Satellite Radio channel 125 [1]. Thanks, Hooper, and good morning, everyone. Eduardo Razo. Thank you, and good morning, everyone. We're a platform that helps consumers choose the best streaming service for them through our content, resources, and tools for navigating the streaming landscape. No, Newsmax TV isn't included in your Philo subscription. Earnings of $0.07 a share would be a small step down from the $0.08 a share it clocked in with a year earlier. 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. OK. James, I'll go first. But were going to continue with our disciplined approach as weve used over the last couple years. 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 Satellite Radio Plans and Subscription Tiers SiriusXM offers two plan types. The company says it ended the first quarter with 46.7 million monthly active users, an eight percent decline from a year earlier. 1. And then secondly, its a bit of a more of a press question than an analyst question, its probably definitely falls into the diverse preferences of listeners buckets. And in particular, with Walmart, we're testing an offer that allows consumers to choose, do they want satellite trial or in-car trial or a streaming trial. Youre reading a free article with opinions that may differ from The Motley Fools Premium Investing Services. SIRI earnings call for the period ending March 31, 2023. Other channels on DirecTV Stream include: Cable News Network, HLN, Turner Classic Movies, TV Land, A&E, AMC, BET, Bravo, Comedy Central, Discovery Family Channel, E! The majority of OEMs have either announced or in process of moving toward that operating system. There are things worse than single-digit revenue growth. How sizable of a trial acquisition funnel you think that could become over the next few years? So the number in Q1 was anticipated, right? In closing, I would also like to thank Sean for making this transition as seamless as possible. The company ended March with just over 34 million subscribers for its radio service: a rise of just 0.2%. Normally, investors hope for a beat, but in this case, it could be a matter of just hoping that things aren't worse. 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. I would like to remind everyone that certain statements made during the call might be forward-looking statements as the term is defined in the Private Securities Litigation Reform Act of 1995. Im confident that Toms perspective, diligence, financial expertise, and history with Sirius XM will serve him well as he steps into the CFO role. And the competitive challenges we have are easily solved with 360L and the new platform that we're launching, and we are starting to see that already in some of our numbers. So some OEMs will choose to pay for the trial and receive a higher subsidy. We'll start seeing it actually come through used car trial starts, as well as some of those early cars turnover. So one of the things were most proud of is what you alluded to the true diversity of voices we have on the platform and basically letting our subscribers and listeners and trialers decide what they want to listen to at any given moment. And as Tom referenced earlier, we also expect each quarter going forward to be better to the prior quarter. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services. Our extensive portfolio includes chart-topping podcasts by Earwolf and Team Coco and exclusive channels featuring A-list talent like Andy Cohen Inks and Conan OBrien. This contributed to the expected negative subscriber growth in the quarter. Music, radio and podcasts, all free. So, we believe no matter what path the OEM chooses will be really well positioned there. The investments we are making now will support our remaining valuable low-band customers for several years to come, but we will eventually provide new revenue opportunities. The Rob Carson Show gives you a humorous yet concerned analysis of daily political events and how they affect struggling Americans, as well as exclusive interviews with influential hard-hitting guests. AAOS will roll out in small volumes initially, but should grow materially to become the dominant OEM operating system improving 360L adoption and feature parody along the way. Tom Barry -- Incoming Chief Financial Officer. Late last year, Newsmax ventured into radio with The Rob Carson Show in the noon-3 pm daypart at independently owned Talk Radio 680 WCBM Baltimore. We're investing in the new platforms. I will start on advertising and hand it over to Scott on your second question. The Motley Fool has no position in any of the stocks mentioned. Sirius XM offers superior reception. As we begin, Id like to remind our listeners that todays call will include. And I think we're very well-positioned to deliver our service through AAOS. Please proceed with your questions. Sirius XM And as we have always said, business models really do matter. But we are actually holding back largely until the launch of the new platform, which is in the fourth quarter. 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. Great. Witz noted however that their financial metrics exceeded their expectations for the year, and it was enough for the company to raise its financial guidance for full-year earnings from $2.7 billion to approximately $2.75 billion. New Home For Tucker Carlson Or Don Lemon? And then relatedly, I was just wondering if you could speak to what's going on in the used car market? Using our streaming recommendation system, the Flixed team has determined that Sling is the best way for most people to watch what's live on Newsmax TV because it offers the ideal combination of price, channels, and features. Sirius XM We also delivered better-than-expected ad revenue partly due to our leading self-service and programmatic solutions that are allowing us to capture close-end bookings, and I will address this more in a few minutes. With these trends and more targeted cost control initiatives, we're 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. In fact, that's why Sling is our top pick for watching Newsmax TV without cable. This article is a transcript of this conference call produced for The Motley Fool. All discussions of adjusted operating results exclude the effects of stock-based compensation. Please proceed with your questions. Gross profit in the Pandora and Off-Platform segment totaled $111 million. And to the point on 360L, can you give us a sense of right now how material 360L is for your subscriber acquisitions? WebStream SiriusXM on the go and at home. @SIRIUSXM is. Good morning, everyone. Download the SiriusXM Dealer App. Advertising revenue of $334 million decreased slightly by 1% in the first quarter. Just to talk about my whiteboard, what we're focused on. In this past month, we have all worked together to ensure a smooth transition. And I believe as we launch this platform, we will have more and more opportunities to better execute on that. Thanks, operator, Rob. What channel is NewsMax on Sirius XM - MusConv Access My Account. [Operator Instructions] Thank you. We also launched Fluency, a cultural practice, helping brands connect with young, diverse audiences in audio by providing insights to support campaigns and creative strategy. Thanks. SiriusXM also launched Team Coco Radio in November to leverage the podcasts that the Conan OBrien-led production studio creates. Pleasure working with you and good luck on the next gig, keep them in the fairway. Plus, we've compiled a list of the best overall streaming services for sports fans. Hi, good morning. Sirius XM shares hit a new seven-year low last month. 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. Please proceed with your questions. Barrett Sports Media on Twitter: "Are you ready for the @NFL Draft Hey, good morning. Please disable your ad-blocker and refresh. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. There has been media speculation that Tucker Carlson and Don Lemon, two cable talk hosts that lost their jobs this week, could turn to podcasting or satellite radio as their next moves. [Operator instructions] Please note, this conference is being recorded. We advise listeners to not rely unduly on forward-looking statements and disclaim any intent or obligation to update them. But you just have two rather polarizing TV news personalities becoming available, albeit, some bad actor issues at Tucker Carlson, Don Lemon.
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