Sirius XM (SIRI) 1 Nov 222022 Q3 Earnings call transcript

Thank you, and good morning, everyone. Welcome to SiriusXM's Third Quarter 2022 Earnings Conference Call. Today, we will have prepared remarks from Jennifer Witz, our Chief Executive Officer; and Sean Sullivan, our Chief Financial Officer. Scott Greenstein, our President and Chief Content Officer, will join Jennifer and Sean to take your questions. 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. imprecise. statements necessarily upon or depend may incorrect forward-looking and current methods all be and expectations upon or and are management's based beliefs that These assumptions, data and Such uncertainties to forward-looking materially. subject statements to differ that cause actual are could results risks

more rely and please unduly intent statements disclaim SEC those on view We advise or risks earnings any update and forward-looking today's release. about them. obligation listeners information SiriusXM's For uncertainties, filings to to not and

to All remind compensation. include exclude like listeners adjusted As that actual call will we would of With begin, results call our discussions the hand results over today's I stock-based operating I'll effects the and discussions to both that, about Jennifer. adjusted results. of

us results third we our on management Thanks, Hooper, and organization. we good as a cost morning, growth joining In delivered disciplined quarter, today. everyone. and solid across to for Thank drive continue to focus approach the you

the in While of our near-term in investments the Self-pay as top quarter. revenue we drive of listening as that versus improvements mind, a sustained objectives quarter low and the resulted in while adds were record factors X% ad focused macroeconomic third revenue late net remain love. the total value remained that our experiences continuous in grew stockholders, strategy differentiated will the in churn including and customers long-term for spending period, we year XXX,XXX flat on prior X.X%, advertising relatively deceleration a are

content highly subscription is our the the of despite growth, listeners, our a chain continued resilient our testament of subscriber automotive to model. constraints, Our supply business value loyalty and

full the uncertainty environment are to some will advertising headwinds guidance, of guidance. pleased although financial we year such, degree to XXXX continue add reaffirm achieving in our As in

we and enhancements. experiences with slate, on expand exciting As product an remain we our and steady with to technology OEM and into content new fourth maintaining listener relationships work momentum focused deliver quarter, the move incredible

and products buyers content and automakers. Our to attractive vehicle remain extremely

XX%, used our our September. to fleet penetration quarter, XXX and and in reached agreements respectively, and rates Stellantis. of at XX% several and in automakers Subaru with new continue third enabled the extensions vehicles Our including vehicle We completed remain strong million

XXXL exit our and SiriusXM-enabled the vehicles year installations, XXXX up with launched popular new XXX to Nissan as of addition, Ultimate, in of we In a the end this platform approximately XXXX. basis points should percentage compared XXXL

over-the-air experience version EV customers our vehicles. full be the standard update are SiriusXM We pleased later we months, launching will Announced the receive start-ups. electric an trial a in debuted with months, for also have with full lineup all the of available When SiriusXM. Lucid yesterday, the Lucid's SiriusXM in will customers time will coming move beta progress XXXX, the seen funnel. In first in coming into subscription of free

expected While relatively experience. distribution drive on of and year. our the our led which to particularly our on performance business, initial enhanced test the capabilities beta entertainment broadening strong to acquisition will past focus streaming side and to this channels audio has volumes exciting Lucid growth to funnel, of to opening continues solutions of subscriber the be is in-vehicle small, forward our continuous opportunity new provides year, see new This the majority be an

our will significant over sales Streaming more our proposition even our investing that at rebound building it in become our are value much a part capabilities While of subscriber our part auto in in-car the early we anticipation is the remains as streaming an important time. still also in business subscribers. stage, near of for and out mix an future, experience

of willing segments additional to These growth audio more population. our streams demographics, segments younger, identifying entertainment. beyond quarter that of historical and growth multiple are expanding U.S. comprise also the diverse an are pay for We

segments. fall, Conan and multiple appeals audience. to SiriusXM date podcasts installment spots found our categories of We feature of talent, attractive on second one music to highlighting the biggest ad showcase and we of launched the coupled The new The acquisition lifestyle contributed the our that genres. in return a national find Alacare, many with diversity are content campaign, past such several we X sports, of SiriusXM on the campaign, NFL multigenerational SiriusXM, ad showcasing Home Chains and these quarter, offering, only content help the working additional as of scale national including that offers music side. O'Brien, and the non-music have the To premium that comedy, our months consumers this this content to to streaming

from been music are proprietary from hard up and made our user content scaling vehicle. personalization improvements and This technology to We and behavior, past improvements advancements team Pandora learn with of interactions and to consumer core that the experiences, signals catered model taste we've with experience our algorithms consumer drove product and in music that our listening Pandora's across most several SiriusXM. more user's past deliver our in personalized each listener long out working artists. driven has our songs Recently, Pandora quarter, include to vital notably by continually experience and improve both algorithm to technology derived preferences. enabling the leveraged adding

product, which and we several music rates. side, data-driven our to in-vehicle drive on listener introduction click-through recommendations helped improvements in has increases XXXL talk the double-digit of XU made SiriusXM including the personalization On TAB,

a screen. version enhancements. SiriusXM's XXXX ship Last new next increased to user and plan content, on navigation, the rolled will Android enhancements that of coming and is update carousels several personalized enhance quick year. listeners' also personalized updated mode XXXL to SiriusXM on and Now update vehicles for with and we our year, the CarPlay Pandora design GM core the made engagement to Android refresh app week, will new will the redesign One will this navigation update also discovery. mobile more out Apple's Later including team. discovery new The like We significantly interface OEMs and Playing streamline carousels that of access in recommendations, and stations months. coming ease with to An SXM Touch the a wide with an access new of will content select has experience we cells months. are of SiriusXM Auto SiriusXM The be These in in launch making in recommendation should just improvements upgraded visual the products include that of start the we dark updated enhancements live artist series from design a iOS range

and draw and enhancements, younger broaden to opportunity saw more artist streaming to the on tends product continue music, that diverse. real intimate other experiences music are our over-index we subscribers and the events. launches addition unique celebrity to for have In we to new talent. artists comedy audience decades. and highlight special and fandom that segment content connections This built our This of in brand sports past We X artist past a and shows, the quarter on see over channels to

limited-run X-time LGBTQ Grammy with Radio the new their our summer. channel on the launch Somewhere her celebrating artist example of country Channel, The the a across Award-winning was another example, conversations engages this artists launched Chicks from where a connect guests And while Brandi music Carlile, Singer-Songwriter tour of the community Brandi and they For the candid Grammy great the experiences. allies. show, The Spectrum, in Over fans the of to curated time winners on vehicle were great provided channel with XX for promotional The

Jam Philadelphia, quarter, in us to pearl subscriber with ology in Lizzo other reaching Apollo App York a record rebroadcast a in contributed Los the most our stations our Enter to this valuable small-stage series, while Theater and on-demand year-over-year content we iconic our continue on-demand Legend experiences hosted the New Detroit. City to John through highs, listening. in X Turning Hot campaigns benefit dedicated in Red Angeles, we and popular lift for earlier incredible this to of month, across and pop-up unique hometown Chili These and Peppers, XX% bands at prove promotions in the hosted her SXM channels Win performed

and fully rate campaign sports and around front, by more converting one a saw than an outlets. We awareness. sports in extended other game, dedicated recently exclusive proven in higher launched as our America We on and sticking with to else increase performance subscribers SiriusXM sports know agreement to NFL to share audio new subscribers on NFL fan, we subscription underserved Sports every is appeal listen subscribed have retention remains trialers strong our continue and subscription to North one games to our a there unmatched recently anyone with to at opportunity capture in this for the quarter third live to category. of audio. events rates. platform The sports we higher with paid sports cover first-ever, a channels who offering one more third-party also broadcaster essential listeners audio

remain broader Lastly, the incredibly we cultivating. we bullish news and ecosystem talk audio entertainment, were that continually on political

podcast, SiriusXM's election As includes Pod the part programming to also studios. tapping full-time garage available the we Needs of of America at O'Brien Conan comedy former behind had weekend This Barack subscribers recordings podcast L.A. with a taken large-scale Save exclusive original have elections. Progress SiriusXM soon leading a up top-ranked month's his President audiences Coco front to Media's this interview access America Crooked taped Team be only lineup SiriusXM And coverage, Save to over popular launching early Pod fandom channel's subscribers, Obama. special will a our live midterm Friend. in into of channel SiriusXM

over strategy and we and SiriusXM. platforms the thing XXX the advertisers broadcast broader tremendous audience and network. advertising. the in we listeners, of distribution audience us the ad makes and in through podcast SiriusXM, creators creators' access they unique offering Today, unique live give podcasting SoundCloud monetize best and and to also audio sets our all as off-platform across content marketplace Pandora, and reach touch Our most, efficiently talent want Having including while us Off-Platform apart can digital a exclusive leader million

rankings give Top We Friend ways ad in scale. Needs agreements with in Prime podcasting, In than growth Conan have making distribution Office SXM representation Podcast added other seeing efficient recently and the we the third new to to more quarter, at with buy continually the Ladies, chart. we Save ad products Edison's automated Capitalizing Junky, a and Robin any Dateline America Greatness and Pod and network, the more the shows are of advertising on O'Brien podcast. Mel XX deployed NBC, brands Media school

year. their podcast Our more reach Solution than from last plus audience allows gives Revenue XXX year product targeting. Programmatic, saw meaningfully these control to advertisers these versus Everywhere our as solutions, audience wherever such ago, over additional to new X listening, solutions network compared advertisers a and Podcast they're brands increased we Select better and podcast leveraging QX

around impacting uncertainty to continued macro ad in drivers business. the dampen early we to coming of factors expect trends digital and broader We months by foundational but are SXM our recessionary encouraged the response economy audio Media the market, these the

are of by consumers business finish with and closing pipeline our year Team of of of We up, performance our days and To we and the energized show avenues momentum turn Apollo. it momentum special despite at the next continue live I'll The the to Sean. all am including Coco's content, long-term for value actions with and distribution, the to technology business wrap the confident uncertainty year share and most week's are new that exclusive product and in award-winning build listeners. I progress SXM enhancements appropriate committed the and and launch with with premium and of hip-hop of incredibly led Drake's our the Grammy pursue over the to to excited choice and equally SiriusXM downloads some announcement the in comprehensive audio culture SiriusXM. And I'm Drake of taken we environment, followed, best content. channel to next fresh app delivering opportunity macro to week record-breaking an sustainable strong event remain the organization have exciting vehicle artist in at we for and that, to excited

revenue in everyone. financials, Starting of with the marketing, material that, to up climbed billion. subscription to development. was revenue Thank was advertising EBITDA product at and to investments $X.XX continue and up while $XXX was $XXX million good you, we a $X.X revenue in Adjusted Within Jennifer, to quarter flat as sales, quarter make X% content billion. the third X% morning, million, recap X%

we to real of intend we select quarter, as reflecting onetime the charges, leases, exit During a booked onetime from recoveries. of earnings no longer income $XXX write-off pursue enhancements third estate down share of or million XXXX insurance was costs. million personnel satellite million the quarter Net other software quarter on to initiatives $XX diluted that excluding severance cash for speed the ahead free $XXX and generated the million, during of $X.XX listener $XXX the year-over-year, to third development we common flow of quarter, cost experience. We restructuring the $X.XX as representing of per benefited

addition, as last loss flow felt most impact net million In taxes carryforwards year-over-year became year. a the cash free fully federal of in operating increase cash material utilized of our $XX

timing XXX, required taxes expect we expect Also, likely increase We This smaller scale currently production expect much credits the mitigated were procured year's to $XX next satellites that are be capital grow of other which to XXXX, SXM million R&D $XXX as in on this ramp. are to to cash by R&D year meaningfully These therefore, use Section tax in expenditures continue XX XXXX, certain ahead, including the of to we adverse next tax growing million year. under a to partially year. be and increase being available credits. taxes, cash capitalized was XX our to and the looking expenses approximately for now begins

conferences we that years used September, low-band combination means more thought have discussed today at in a and programs few improving spectrum successful and our might a win-back have of on subscribers years of investor As we than we churn ago. car

portion options our refresh spectrum constellation our create streams and low-band revenue the premium of commitment this will give also services on new this our long us So over term. on spectrum maintaining to signals to

by to Turning subscribers. period, includes a advertising subscriber year third growth by segments. which to SiriusXM with At billion, the increased in prior self-pay on operating in revenue platform, trial to a larger quarter increase rate driven compared total $X.X paid ARPU to partially our lower X% SiriusXM, combined record X% the base a offset X% $XX.XX, the a

by As our streaming-only an growth outstanding base. Jennifer to was combined XXX,XXX, self-pay trial SiriusXM's the in mentioned, quarter, leading quarter in the second boosted subscriber net opportunities conversion growth growth in increased funnel subscriber with

third point QX representing year's and climbed Gross Off-Platform our year. SiriusXM into year, the versus and million will trial per margin into record next expect was During X,XXX the the remain remain of both sales declined slightly trial this consensus revenue net fallen SAAR to profit In segment XX%, third Pandora's gross to $XXX XX.X the auto revenue XXXX. and We sequentially third impact continue self-pay and XX.X third car million. industry a from prices as quarter, near has slight SiriusXM's quarter highs. in of a continued vehicle million May, advertising continue. Since $XXX X% the than soft to last XXXX last used to $XXX ad estimate from of segment, were X% a and that increase quarter billion, quarter. new funnel of higher Pandora And continue largely softness starts and adds in anticipate $X.XX to down analysts hours

of in in content, of The to expect segment due margin the are deals of recent during and generated new our XX% Off-Platform investments and company's revenue, making year-over-year. $X.X time. and we months. the we of total to advertising During $XXX is tech all representation EBITDA to billion, reiterate saw and in an in in billion. XXXX new more we third we existing million, Gross we to the of and us. have approximately was Today, XXXX, guidance quarter, the telecoms a increase podcasting these strong shown margin. over over continue revenue roughly advertising financial million time. the ad financial XX% travel growing weakness representing the margin quarter, improve and flow This political in XX% for of $XXX Non-Pandora gross about XX% entertainment, Off-Platform $X.XX quarter past our free expect $X Pandora billion declined revenue profile adjusted of ad total quarter, revenue categories Pharma, growth in decrease about cash this been Podcasting mostly services and for restaurants, profit have

we important headwinds XXXX expect our rates our the organization, some in or macro and year. and cost across streaming discounted that in the we advertising XXXX. the discipline in will costs focused given the CPI expiration outlook on the to increase Given and be to of adjustments discipline will continue market, royalty That music pre-XXXX content royalties next an of remain produce

of to the billion. with allocation million and stockholders to quarter third we in $XX roughly $XXX On returned repurchases front, in capital $XXX bringing million million dividends, $X.XX capital year-to-date share returns the

of recurring pleased dividend. net increase. previously the very increases a This quarter our are We in dividend to in sixth row low a third year's XX% the within further year the top on at range debt-to-EBITDA double-digit to mid-Xs increase ended last XX% we to X.Xx marks of We announce our articulated.

remains liquidity and maturities sheet cash billion balance exceptionally Our limited September revolver via near-term available undrawn and the capacity. end well positioned of at roughly with $X.X of

investing in up returning have let's the With We continue operator, to to capacity that, strategic open Q&A. and continue stockholders. to business, evaluating to significant opportunities our it capital

[Operator first Instructions]. We Swinburne now from at take Stanley. our Morgan question Ben

in then becoming margins? maybe pretty I digital build, business on core satellite large like seems shake out relative terms year, questions. impact about does mentioned into discipline unit the at front. business the of on Maybe for maybe, this digital think Sean, to and some OpEx it's the the of the back you to next all next into growth pull opportunities that which you expense the year? the are to whether economics pressures two think on can enough see And to leaning of they of in remind of got economics company overall to you us cost you where you for One, sort continue you've and point start and space for of looking as that you subscribers, when attractive guys just think kind or not sort gross How about where Jennifer, front. licensing

Ben. Thanks, Okay.

the on to pretty past are economics talked different that satellite the First, streaming versus the a the terms we unit cost about acquire subscriber. in subs, of in upfront

focusing subscriber. satellite from have to on SAC our side, a doesn't tie business, necessarily As producing we know that the your you years upfront on

will performance On Obviously, direct per to markets. the really the we much costs are as with streaming partners marketing-based, in And seeing media. of that we're our business, are whether marketing subscribers. on relates they these based upfront side happening be focused on the more or it what trial fluctuate LTV of cost

so what And of is may that of clearly shift the dynamics quarter, funnel automotive in a a obviously in whereas trials are given period. function given a the

in in also, we're trends continue the But be trials towards market. more how to investments has and to make optimize So general, investing effective of marketing get which that continues will to we efficient. advertising on we're our obviously, as we term there. just for that, buy based dynamic levels we business, the The of near been streaming subscribers at rates. learn lower in are the able channels more Part

actual gross we So consistent. past, don't the economics -- I overall as I enough are our to satellite, relatively material lower past, but not mean the from really a the impact consistent. margin in percentages said are in margin. prices And But standpoint, today on streaming the on as we said pretty than are they're margin

for expense again, that Yes. And Ben, to growth, long-term investing important we're it's obviously growth. the on reiterate

number around that's and a product, both doing things we're platform, functionality, CapEx. features, of So OpEx and

more that call, just it. say it's we'll the to of important and the impacting into everyone on February think year-end business to we're things as on the look are fact XXXX, that focused in and the we certainly have some I for highlight as

to the end XXXX of expire thought of worth that's example, it the was for public pre-'XX, years for of So event the a 'XX. everyone I that since number ago. it a was expiry that highlighting

We've remain focused. facility we'll rationalization. about So talked

took in the QX. some saw You of we charges

that and roles initiatives, strategic the to to continue look organization growth the key on we prioritize have plan. efficiencies that continue fund for against headcount key and initiatives the to continue do and We to across we'll

question America. of next from Reif Jessica now We'll take Ehrlich at our Bank

you is you And level, wondering, are And say pricing kind And call increases operators hearing to call different in the color that. starting just cable how about it's does subs How you're turn that? Podcast and sales churn targeting. talk the but level, you astounding, from at give thinking on secondly, on any of of Your from just I'm at just this your so only? that And debt? mentioned to is it just clarification, a prior us mean this low. are seeing low power, imply last, I streaming bad just can Everywhere? this then efforts? kind more can offer what you'd out We're

of I Okay. couple could a take those.

has at be low to So churn, our starting with amazed churn I continue been. how rate

that have voluntary negative We a consumer different on seen canceled concerned that or non-pay be to real any is demand about. side on impacts the there the indicate not would of health

voluntary I trend that very our improvements have streaming nonpaying again, our made products. in that It's in continue to X.X% range. And we to the sort X% that So strong. of tie been to

many drive of more across subscribers. listening car, continues those the engagement to subscribers have satellite that We and outside

slowly the so recover. we to as vehicle-related funnel hopefully, to -- the or would trial And continues going increase, auto auto forward expect

this think gives But last again we very that and have some us we're We but on year. our on we voluntary. opportunity So at And I churn, rates. year, as will to have in rate an fall next non-pay will the forward do pleased look rolling obviously look we on impact through we pricing. are where did that increase

consistently have We prices. raised

at priced we've launched ago XX these you a think, and $XX. years we're as price at primary package $XX services -- I point now our know, is

average reality prices. very inflationary have and And our so continue Obviously, that. more video an features on certainly are listen products that and help the in X%. building our certainly the some to with we think, and for will through increased support audio about and in in of subscribers, raising value tailwinds, an continue... focused products value access There we're other should that in I content, could But increase we can locations. So deliver annual is environment, capabilities services better we that the to to come need

checking Just you now. back all hear if us? still? see hear can me to you -- --

that. about Sorry

X increase about so us we're trying with these allow we capabilities brands increasingly look, and that brands capabilities continue minded, important have are Okay. privately to across will podcast connect on for targeting scale will doing offer that to for automated solutions very ComScore talked brand to Great. new The suitability what we're our their products last at that is includes and solutions also And quarter more filtering, can We're predictive to in And to which network. audiences -- ad there. content advertising. safety their brands enable advertisements. audiences guidelines

is to using how So fact we programmatic market that clearly are automated the on will technology. continue the our just this to continue general. indication And we market, audio video and behind innovate that is where an towards I think, of solutions some Ad in the move more

developing solutions podcast podcast that important to revenue. are the clearly look, So in we're growth drive

You see the or the podcast world, relative networks Chuck of our the numbers biggest it's -- NBCUniversal, advertising some to to grow. that general overall we in some advertising whether Crooked of our Media. Off-Platform and on in And represent Audio continues

there one invest we're here. So was other. to continue going And to

your think I Jessica, subs. then, And the question was about number last streaming of Yes.

revisit can yet We material, and that. have more that disclosed the that future. And in not as we grows becomes

Kraft Bank. on Deutsche move question from at our to now We'll next Bryan

can they customer slowed some I do you broader just and seeing subs the First, of I could can contribution to as advertising if what so And I And Apple color as that behavior? Spotify? anything to other provide the and you And you just know in rough I home see terms political? quarter? quarter. could. but us to If by impacted it you services the adds maybe wanted in behavior you guess, secondly, if political anything on out-of-home great. holding up subscribe -- in two, if okay? I talk demographics your in from disclose on-demand Has Music cycle? could churn, what any you're the far subscribers then fourth quarter? Do anything streaming-only in you ask then third their as far I just wanted Is music being is or it of know, degree remind participate usage? far you be Sean, to their additional net about yet, share also, us car like the engagement, listening don't behavior give as there that on would on to mean don't What's could

Yes.

So Bryan, start. me let

see I we So of advertising the market, mentioned of I end think in as deceleration third comments, quarter. on my the bit did a a the in

In landscape I advertising. terms think demand, in terms across broadly of of that we're seeing the

But the news have watching think It are XXXX it guidance. So we good we thing as over about delivering is we the our really is closely. one financial the that we don't capacity. have complete control

monetize always the QX. at hasn't We QX, in case been have in which the to ability Pandora

So and the deteriorate market not to stabilize the good we about opportunity. We need feel just further. any

have political, QX to seen expectation portion, year, midterm cycle. in we growth. is growth do see not from hopefully, uptick versus saw surprisingly. in we elections. As the material a cycle it not the is but we'll It last the participate And We political a political slight the the in relates in QX

that. do we'll So

you on think good in satellite side. adds to QX QX. saw jump I As in I to know if the in want said, net anything behavior streaming and Jennifer, and in is relates as the thing listening in the both subs, streaming don't else it I positive we streaming-only

be in the what And different are than a they look there segment. little do our But to believe we a They from like, are is still a relatively larger subscribers go streaming to terms opportunity tend that -- small our of of segments in overall base. more urban. diverse, after portion general, more that younger, core

rates on high . that in today clearly in-car focused penetration We has have obviously been relatively listing.

think as the the car. a update little released CarPlay and So that in to major or Auto we as we more is to listening of subscribers type years, well of time update the we'll also you offer really discovery Android listen car, there here. in more because content. But is They outside is This app I saw that pursue listen And expect whether navigation improve the through are still for we We in terms and an different that several and they're behaviors definitely Auto. of Android recently a these we've application, diverse. younger first there and better to done you come capability see streaming-only the well. as more subscriptions, through CarPlay or

So lot versus improvements. rock really there's more and rolling country out front there's our started here, and on more opportunity of think hip-hop in-car with product we getting and just I and subscribers. And hard a still are the maybe pop

We clearly we of and enabling to with they more to we channels, these more on we year. that your surrounding is listeners do control coming that. launched design to into hope our Pandora these content, going refresh that making are with apps, carousels They have more just have but come personalization content listen something may in love. work the on in sure -- which the are app artist to specific, listening this and subscribers to more just we listen have on-demand enable an even And environment extra where and consumers later expect a in to stations based

our at Wells We will next Fargo. Cahall from Steven to move on now question

OEMs got at penetration models just maybe electric any And is secular and wondering of penetration So the versus difference in was of as existing Lucid and electric big what I growing OEMs. interesting, to your vehicles able trend announcement because you're at if got a some if I that's such all as thought new was vehicles you've we've well track combustion vehicles.

And one. that's first that. quick couple then just follow-ups after So of a the

Yes. Thank you, Steven.

really one just announcement, they're the to Lucid On leaders and part the we're the because luxury pleased in in Lucid, EV them. with the be with space, aligned of thrilled

make that I electric, is if satellite things access that hear think one we a in embedded that that have not they radio want or customers to vehicle, or from of combustion they an the it's we're SiriusXM embedded whether experience. to continue subscription sure great to our

where logical given that really It's hearing launches affluent the we from obviously many and targeting and And certainly customer initial consumers. higher of so that's base, it well. EV up, that's have we come do been keep our

Our just vehicle expect similar those in EV pretty being our by on the coming low. in started agreements on for and I say the years, we produced of doing more are have are to OEMs start-up more combustion of pen very relationships that cars side. electric see to months. the to rates have we what pen engine automakers, that -- we are these The mean that the companies on sort had we getting are rates the with EV some

that there's of So other the in SiriusXM. on are working automakers not for years. business side to a these the difference that rates pen with all And again, the all OEMs really very been we've over committed

Stellantis extension with announced we and that saw You with Subaru. the

renew So we of and continue very service and to the obviously, that provide seamless car. There's extend just having easy-to-use lot the agreements. a in we those for support,

should up one which little forward? how to do to pretty first, modeling should churn? I of satellites a pick housekeeping adds And no then Maybe think XX a on couple expect are kind ball ones. going be about has up, crystal and start bit XX due inventories we self-pay CapEx a as well going whenever And soon. to know we up, think ramping to churn net tick vehicle and I our just of pick

absorbed CapEx, on 'XX. that and the said, XX, Steven, XX I and of think we 'XX majority Yes, in spend will the as be

and in 'XX will moderating bubble be those the So and then years beyond.

expect you're as churn, later lift new some end site. auto on vehicle we absolutely right, see by And the would Yes. pick use, on way, up, to the sales

We'll to Sachs. Goldman move our at question Stephen from next on Laszczyk

you rates music XX% on Apple your week. the over little some beyond other expand from priced you see by at the Then just I a strategy is about think X% And if pricing more that think did the price the we your earlier, in above ARPU the a from you time typical and are could about broader of X% streamers, services? point to to year? over the Can about seen growth headroom base increases just something maybe we've the next you to service Maybe how that follow-up. give have bit that pricing other talk

up see many end We doesn't certainly choose to using AM/FM. hurt. do active that be It subscribers of our really who

from year So while in car, a AM/FM competing other still with dominant are share standpoint. we is audio the services,

us relative I value cognizant how a continue the relative time. we're confidence for priced we that been competition. But these of And productive certainly adding So we a would we're tailwind. a of prices to way premium to very to level in rates raise AM/FM gives to other Obviously, of some the that subscription. some probably more long have is to say rise room in have music streaming

penetration. Great. follow-up on EV Steve's on the question a And then just prior

Do quo significant deals traditional that manufacturers think I And EV just and expect to you should EVs of software-enabled. status deals with forward? the XXX% with aware be are the then both economics if curious of. differences this be your for we was any Lucid I going over Tesla versus there, of automakers there's in the

we in it actually forward, Tesla -- car. we may vehicles. leveraging In have certain we'll in it depending in be the the cases, hardware different modules. And cases, certain act, EV the look with modem the So the do may In automaker. upon have going

and data. satellite for broad-based preferred get on term. we availability have distribution the capabilities, then interactive think I solution the benefit of And medium to because the side, on and XXXL channel the in economics is of benefits certainly the streaming with back we efficient all personalization near us

listen that car to to customers to frankly, wherever are to make improved our sure is we Android shown, as want preferred and however us. plate want they listen that Auto of in just will we we do be So flexible but terms experiences to to and solution, we've launching us want come because

is we on I going can technology room that to the there. yes, So use forward EV we'll make think that with and there we increase sure the side flexible be rates, penetration certainly to continue

should economics some the in we that? Or are about similar, aspects? how think And different

the revenue or payments payments trial on no I the lanes and economics, the the depend will that, automaker. specific think whether obviously, the it's of economics pieces -- share, subsidies, like things

don't so -- for to solution that continue to for the there we best incentives us the extent the I'm the offer to looking provide subscribers. with they easy in to subscribers to car, So it hardware But subscribe not is self-pay talk about we're to work trialers them economics subsidies, the to for wouldn't and have deal make become I work going automakers not will to but that to with us for or convert and sales.

way revenue a as in believe we . So incentivize that. to share

next ISI. Ratcliffe now question final our will James take Evercore We at from and

to looking looks Can the -- year-on-year. just us the Pandora help people are related Or less any where hours digital audio? listening pricing Just Where down. spending or RPM listening like at in side, loads? on Are changes these break hours? was are their And flat that, it you ad are down that going? in to they

I Yes. James, were From for perspective, down slightly RPA the the from prior we an year. think quarter,

ad the has hours to over largely Listening quarters. has active listener think down. few consistent I the load I continued increase. hours reiterate, been last per are would

customers. most listening from So more we continue and our loyal to have more

challenge to capture the new in terms where been. ability So has that's of the users, registered

pressure So from about talked RPM macro the be marketplace. advertising trends. We under to continues slightly

if, specifically. where Jennifer, want to know don't going I they're comment you So

the increasingly a free a up interactive is set it in generally, they've of capabilities. the user But audio do actually prior they to And Most Pandora back the with in users already stations offer. services. I dynamic The they we -- the But consumers listening -- multiple have we're as more other previously. in to U.S. audio services recapturing to has see coming service listening of well. But those that going capabilities base it's trend is same that most where that do listeners are the are tiers specific services to other for bit. the dynamics terms fluctuated

of some the to of And overall we have science stemming have Sean changed We -- the dynamic and -- lot losses, can of how to I of that, be about said what what increasing load, can a things haven't front back do in that load but obviously time, on we like ad materially. great cohorts. seen do recent many as just I ad do going appropriately products believe advertisers our different also of standpoint put us that well. in over to competitors we our And benefits the are from listener and

James, in for to We'll you Goodbye. for everybody, today. thanks, And participating joining speak call. you soon. our thank

Goodbye.