Sirius XM (SIRI) 27 Apr 232023 Q1 Earnings call transcript

Greetings. Welcome to Sirius XM’s First Quarter 2023 Operating and Financial Results Conference Call. At this time all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] Please note this conference is being recorded.

turn of over Investor I’ll Senior Hooper time, President Vice Relations this the to conference Stevens, At and Finance. Mr. now may you begin. Stevens,

Tom Thank Chief call. everyone. quarter you, our Chief remarks morning, Sirius Sean Witz, and and questions first Officer, Sullivan, Officer; of XM’s our our President Greenstein, from the Berry, Welcome Tom will Jennifer, Jennifer XXXX of tomorrow. join CFO the Officer; we’ll who your will Today, to conference Executive assume Scott to Sean portion Q&A and Chief during have the Content Financial prepared earnings take position call. good and

and I would Litigation management’s of upon depend based XXXX. subject incorrect imprecise. statements and during Such forward-looking as current forward-looking may actual made materially. assumptions, like data risks that the forward-looking These term expectations and Reform statements beliefs Act are all in be upon to statements methods Securities that everyone results certain to is are or call Private uncertainties necessarily be statements differ that could the cause might defined and remind the or to

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

of include As compensation. we discussions begin, results effects about operating both discussions that will results I’d our actual adjusted call remind of like All adjusted to exclude today’s and results. listeners stock-based the

I’ll With to call hand that, Jennifer. the over

you joining everyone. Thank morning, good and for Hooper, Thanks, us.

contributions we employees shareholders. many will drive decade’s our finance Sean last to Officer. ensuring institutional that a business also as quarter’s With commitments across like few knowledge customers, together, transition. I deep continue our smooth Financial know for Chief Tom and I want and his experience thank these and years the welcome closely I’d Barry into jumping broad results, working growth be Before more experience than a the to and Tom’s incoming as to invaluable

expectations, first putting year the In free financial position strong a guidance initial increase cash full EBITDA flow. in to us adjusted and for our quarter, we outperformed our

We due and more that will to and to partly allowing solutions capture self-service I few programmatic are also bookings, minutes. in us address ad delivered our closed-end a better-than-expected revenue, leading this

discussed, previously in later around As launching improvements of this are to reduced marketing year. the quarter. contributed This we subscriber spend, negative streaming particularly we expected in anticipation the growth product

spend. even the and streaming strategy the the of positive to year, our test remainder us enable On side, with will sequentially results lower learn a baseline however, throughout improve subscriber of

While we The continue of the vehicle we churn the vehicle better up trials. quarter’s to fourth vehicles, and this, subscriber our a and to see X% an higher in driver QX. funnel. car quarter, tend the remain performance as to fourth sales quarter. opportunities Supporting XX% quarter-over-quarter We trials trial seasonally us opportunities reduced conversion the in for this business, and for declined sequentially once our first by a respectively, X% starts bigger saw for And new trial we dominant used streaming-only will again, the progresses. vehicle first see X% used overall also rebound trend overall believe quarter were and X% rebound year should starts including in subscriber new compared in

has subscriber loyal business XM and from profitable base Sirius incredibly a an benefits that today solid, margins. enviable

leading quarter just our generate satisfaction, by trial not each the direct-to-consumer high low ARPUs very of audio. media, OEM be and we with service a the millions starts across through continues supported to It and churn long-term partnerships. robust one of have We

that a future provided product growth. Our unmatched strong our distribution, for investment in and offerings offering new foundation content

audience expectations, such content as barriers pricing, control consumer However, particularly meet with discovery. we and address evolving segments, younger to must

intend allows that a have business while always service new with to this we content certain models and interactive year primary to We really of as as listener improve And issues discovery, matter. being a audio said, the plan tackle unmatched very prudent utilizing control business We lineup. fully serve platform later segments our profitable for for these more data-driven experience to do a complementary audience for make decisions subscription remain to services that others. continues to launching

audience Our the purchasing out the car segments. of usage premium in range making worth new for streamline the platform will service a and our enhance value and of XM Sirius wider and of

approach technology among multi-channel heard Additionally, all our to better drive messaging their to more to we’ll conversions one efforts. and moments leverage a subscriber fans. from size hear deliver our we a marketing are approach, ramping personalized dynamic individualized capabilities Transitioning up rich in only exclusive to our fits content marketing promote talent

want No listen. where they or matter how to

conversion, and the XXXX we we of growth for implications Sirius subscriber engagement in-car generation As approach and will confident next the launch streaming-only XM our in retention, alike. that beyond. experience, and ARPU, and are boost satisfaction customer will positive This have to upgrades customers

We’ll share several the but first year. brought the consumer providing insights of product and XXXX valuable already quarterly have full progress future months offers for re-launch platform on iterations this calls, exciting later

in-app we for select users example, genres new onboarding For to to efficient most content. more allowing experience relevant a the access faster, introduced

to leads This retention. listener higher feature drives engagement that

members, kind quarter, accommodate we for introduced six-month preferences. first of and flexible how packages. offer them we or choice increasingly listening even its and We’re This past add of streaming-only giving in-car Walmart+ trial the agnostic subscribers in a

transition first trialers offer subscribers. our ever streaming debuted existing it T-Mobile, easier Sirius Pandora with into trial six-month billing our premium expanding XM integrated paying making adding upon a four-month offer, and for we to Additionally, even

collaborations in best. experience them XM the inviting These Sirius to suits of that people our way demonstrate strategy

XXXL significant nearly expect are XX% XXXL. platform XXXX and new trials exit progress with in including to out We making rolling our of car

all will on Mercedes-Benz feature to XM on Over in increase select models installation part the the agreement OEMs an available next United of that to few including a models of years, XXXL expand Mercedes-Benz continue the it as across will make Sirius standard States.

trial vehicles car capable used to well. We see starts also will as begin and our XXXL

trialers significant the that encouraged very conversion in-car artist are channels, see are today. enable extra in We Pandora recommendations. We enhanced discovery more stations and getting vehicles lift improvements XXXL targeted we with and including control with by features engage see more started. our And when we just conversion

of features come, While great indicator are these vehicles, this what’s currently low. features and in still of a enabled to number these XXXL is only limited awareness available of a is

OEM tied initially, should along system grow automakers and this rapid way. adoption roll We our system XXXL improving to expect year. operating of materially the Automotive the volumes dominant in later feature become see will to Android more adoption but to platform with XXXL beginning parody small AAOS feature incorporation out operating the

listeners car, more Turning the new audiences hip-hop by continue focus than to and year a first double our these with our listening value and of and we who expanded younger to the genres several R&B extra percentage quarter, strong our given versus ago, content, the we in of the launched consuming have experience. engagement the channels seen channels, out driven controlled here we more in see

for for the powering Against all subscribers the audio space, NHL splintering home video content. as access We agreements to ensuring with of come. one and sports extended sports value years this rights in for the engagement our NASCAR and of continued record its incredible we major the stop offer

increased Sirius our we particularly Madness, in to continued number We engagement broadcast history during with and the from most Bowl Women’s March season. strong of broadcasts year our previous almost to XM’s to Super Basketball. women’s this NCAA subscribers XXX deliver the the listened was games doubling

diverse to talk and XM deliver As live are rethinking and subscribers. podcasts, content how the seamlessly them discoverability do and similarities for serve we our Sirius provide listeners. strong we we preferences develop across on-demand surface between control talk we to radio podcasts combine better service with platform, integrate With our and more our of see more opportunities new shows and can to

into quarter, and past group Sirius unit. we comedy group podcast This one and XM’s combined entertainment

by Earwolf and Our extensive includes channels talent A-list Conan exclusive and Team featuring O’Brien. Cohen chart-topping portfolio like Coco Andy Inks and podcasts

Our deals to to Hart, with and bring wherever and subscription want reach listen Brady. Ripa Kevin XM as they Sirius ad Kelly exemplified supported however audiences subscription very distribution recent by and models, value the Tom and

hear widely by Tom also hosted Let’s Radio released podcast, airs Laugh available our on extended Larry Brady, new subscribers, but Minds exclusively Camera returning can this a on Go!, Sirius Gray and Kelly’s as Off XM. Listeners with fall, podcast Radio subscribers will episodes then platforms demand Jim Loud in on to Talk Andy. his major is first show only Gold Let’s first Fitzgerald on Kevin’s And to channel our hit, Out all app. on available early be

to our our subscribers, in giving testament in to All quality leading our new also programming. of class continue we this to XM and listeners world talk will ad supported access audio a while leverage to draw content is Sirius high position

results unified bolstered business solid advertising Media podcasts banner the delivered quarter by Our in growth programmatic and SXM operated under sales. first

broader growing pain more facing our office the first offsetting be extremely And buying ad partially doubled help XX% efficient. headwinds programmatic and sales greater At of year-over-year, contributed ad and points year-over-year technology the using XX%. intersection We podcast of during the continues and by albeit, resolve growth small business overall our to revenue profitable, quarter. about podcast to marketers base two, automation making

this agreements SoundCloud network. owned we sales the relationship Alongside renewed with our quarter, our U.S. success, international ad and tech podcast advertising and with

creative audio diverse by brands to providing We cultural strategy. practice campaigns connect audiences also insights helping launched support fluency, and a young in with

audiences supported from networks to reVolver network, reach largest with Pandora portfolio also and Pattaya advertisers for includes the Hispanic and to which diverse ad Our of podcast opportunities podcast XM two Sirius the large audio. in offers

emphasize will across drive and recover, financial later between next this expand greater catering XM simplicity new consistency opportunity In listen Sirius and performance we increasingly base year. our as and generation better this the launched provide our they elegance, am subscriber I’m with our This experiences, sales discoverability, control auto streaming quarter to as short, our I confident and pleased subscribers experience in and in-car experience and devices. more to

will now the will brief Tom some the to financials and over detail. turn I remarks, then Sean more in through call go for

me smooth company, my to this Sirius and Berry, has serve it diligence, XXXX. transition. he veteran call, these be talented Thank years. Tom’s serve into It CFO confident Tom, all a this its take of a In please this as real him but expertise, And our employees Jennifer. let CFO I’m may organization will you, and that ensure to since have Sirius steps Tom with perspective, add role. it’s XM XM to a welcome shareholders new past and well financial worked X.X the is pleasure finance away. who to history been we together month, as past

everyone. Sirius investors and the controllers company’s with join more broadly conversation meet leading thank coming in about opportunity this Jennifer. my of team team the Sean, you, and to shaped weeks. XM who truly to the analysts I’m excited look you leadership morning, I of operations direction. Thank and forward leveraging Good and experience the you, work and with to the many long-term

lead I see talented think team continuity approach our I you’ll making. disciplined our and as decision financial finance continued

with So jump into that, it. let’s right

bit out a the revenue our noted, starts. as Jennifer expected, improving stronger first As and with finish albeit gradually trial to we quarter played performance, advertising

With to approximately these now our billion expectations increase $X.X control and EBITDA year our to full cash from free more billion from billion. able we’re $X.XX and approximately flow trends to targeted adjusted cost initiatives, $X.XX billion for $X.X guidance

principally reflected subscriber a weighted recorded to $X.X year due X% Sirius to base vehicle, decline OEM ARPU decline X% billion offset was X% that by compared billion The partially of $X.XX up a of in In subscriber we delivered was lower this period. modest revenue revenue, trial connected average revenue, segment prior promotional $XX.XX down which paid revenue XM year-over-year. the quarter, in and

by see progress with quarter-over-quarter quarter. the negative with and but adds given declined expect consistent in net net for to starts do in year quarter seasonally our lower higher in quarter trial We the adds, anticipate self-pay a Self-pay combined full we fourth still churn XXX,XXX modestly vehicle expectations streaming being first future aggregate.

XX% fleet XX% about Our stands million total enabled car and rate was and at penetration XXX our respectively, used and new vehicles.

flat nearly in segment, the revenue Pandora million, by revenue million, X% and first was Off-Platform the Advertising decreased slightly was prior year. quarter. In with total $XXX $XXX

hours continue climbed with were ad sales we be hours per per the still X% billion, active Although month. market, see as cautious tailwinds declined hours we users to just in XX Pandora’s ad X.X% about X.XX year-over-year overall podcasting.

due X% And costs. higher of royalties. to Gross a expenses performance rates of rights. XXXX slightly pre-XXXX XXXX end and in programming on discounted X% declined margin the royalties increased CPI expiration XX%, profit climbed X.XX on XM webcasting Sirius from announced billion, of in inflater as to change the segment music by driven and down a the production to representing due the of content The and fee CRB X% licensing was

segment in was Gross and Off-Platform representing million, down margin the XX% Pandora a XX%. profit XXX of in

effects revenue the of headwinds CPI light Here quarter, you’re ad inflater normal plus recent first streaming ad seasonally web with to seeing the in combined royalties. the

of We expect for the this the margin to year. remainder trend favorably

At employee the on XX% increase with and expenses the are deferred was majority while corporate Sales our level, of discussed, as XX% investment marketing litigation of lower G&A expenses new investments. up driven design development and up by on asset were plan. by adjustments and product comp engineering XX% back expenses the the

Putting million, was together, adjusted this all the year. down XXX over prior EBITDA X%

measures cost element see benefits our the already across third are reductions in deliver revenue ramping and in these saving quarter. in EBITDA fourth advertising second, strategic QX every business. to of Seasonality cost We beginning from should implemented in

During XXX in the XXX cash year. the generated million we down million quarter, of free first prior from flow,

of million of optimization CapEx of strategy. in SXM-XX construction we million $XX principally invest our million XXX and approximately to one-time increased XXX decline at related a the of This result the is severance SXM-XX payment cost as and satellite

ongoing discussed, CapEx should we as SXM-XX. XXX of XXXX some the million for preparation and As we SXM-XX on SXM-XX ramp by year full SXM-X and for previously increase top

CapEx and approximately $XXX XXXX. in XXXX million year the approximately million satellite million in per in be This range before XXXX approximately to and XX XXXX, XXXX, XXX declining will XX million spending

and idea of opportunities. This While The revenue customers new the remaining but spending. for the our can making now the shift. we general investments we’ll of a timing are scope to valuable payments us trajectory construction will support of years exact low milestone eventually inevitably band provide gives come, several

do combined we our of cycle, portion of expenditures, we for terms in timing later capital our of with to Following versus expenditures, anticipate cash seasonality free satellites of of any this this year. Because spending the in produce XXXX’s many build typical not on business receipts meaningful flow expect the a years.

to We capital the of a quarter low at we mid we dividends ended the within XX at shareholders Looking our threes. return allocation market million fourth first XXXX, targeted range repurchases, to stock results. million reentered our $XXX which with of the following leverage of is as quarter the for comprised million of X.X to times, and XX of quarter

environments, strong a variety continue a that provides to forward, of discipline us thoughtful flexibility and course, with navigate goal, capital our balance approach Moving and a is we sheet value to return. of future to

our market to Despite and start the good business challenges, I’m proud of year.

us of working Our this shapes how team success in to second to see excited position beyond. year the is and diligently XXXX I’m for half up. And

for to that, transition would I’ll seamless I this it Sean closing, turn Q&A. making also to With as for In like as the operator possible. over thank

questions. be of our with conducting you. Please [Operator Thank line we’ll time, you. this a And the At Thank proceed with from your session. ISI. Evercore question James question-and-answer Instructions] is Ratcliffe first

morning. Hi, good

third-party seeing they’re XM dash terms among office? the guys the regarding placement side, you of thanks Apple fairway. Sean, us luck on Pleasure gig, key And that CarPlay. if product? the the and coming your your next And you OEMs just and and GM top versus does keep on point sort the an around satellite the the Thanks. their on role, has whiteboard note, them very all, could that What good are much. Tom the the interfaces at positioning secondly, dropping you in of idea, on on role affect First into of list of own, bullet give announced planning the Sirius how of that their what’s in working radio with in priorities

go I’ll first. James, morning. Good Okay,

with effective in a Just the of other focused it lot areas about right in and raising a what is my ensuring headed our some on optimization manner. days early direction our our of cost focused in whiteboard, an we’re that and is of investing cost see structure or on I’m to spending in the you’ll talk we’re our time the is lot what in guidance

investing in We’re our future.

platforms. the in investing We’re new

We’re investing satellites. in

forward we’ll on business support position return us growth to the with So continue ahead. and view to the for year optimizing But our shareholders. my the capital business, plan the overall work and obviously carry is to obviously, of

to of second how OEMs James, see And integration we’ll how of CarPlay navigate and so question, your Auto. the Great. the this, kind Android

certainly we’re I model up to with choose think, the GM But take that that the through we’re out. Google as sustains be that to significant whatever well automotive the And And seems pursue. OEMs integrated somewhat Google. now positioned in operating we closely rules to from right sure and path. software incorporation unique Android in our are OEMs working seeing with system, make

we of of to moving deliver to toward many our either system. announced OEMs But we’re sign whereas I through of set. preferential positioned AOS that a allows frequently to also you continue majority or update other we service [ph]. like data have in The will think well we because up very It treatment unique services feature operating the And costs more much plan, cover ourselves. data maintain in And services our to display. process terms a setup us have other for need

chooses matter be no path believe there. well will we the positioned really So, OEM what

Thank you.

is Swinburne Ben with line the proceed next questions. with of your Please Our Stanley. Morgan from question coming

over that on the the question XXXX? little puts on then next of there? help to talk you experience same the business. subscriber new the rest particular, sort of the how a Hey, of good sort for little losses allow in-car that the the sort color give for to only morning. course Sirius Welcome bit things outlook maybe Tom. are the Jennifer, generation going of Could and improve the in bit year subscriber what streaming And And could you about the of us takes will are a XM moderate? of

I pretty starting think – do you to trial a usually that. have, on have good line guys starts improve, are sight of you

about us bridging the those two towards Just QX in better losses numbers subscriber would? the help half between think bases, if back you

Sure. Thank Ben. you,

the number expected we of trends prior forward in And terms to anticipated, we large be net QX the as going we point yes, the through was We year. right? Tom reversing expect in be QX that better to quarter in And to So earlier, a also each low the in are QX go quarter. as saw adds. part referenced

we said, than So as than quarter were trials QX impacted, lower QX been stronger, stronger have QX. quarter. was But by third trials fourth

for sets to And do expect that at So us one just years. stat to levels auto up well grow. I funnel. a watch in-car intent we’ve the and it’s buy the other the quite seen of couple that about over frequently to of we sales day saw we continue last the highest

So and of be made of course the there. is think pent-up to demand start to maybe funnel case back, a released the auto to some to year. over I the the course, for with improve helps incrementally but slowly, that demand be sales there of coming And

QX year a that is an XXXX. CSAT we’ve the and is the – our access. for this side, always And that streaming the well. as and true X.X%. in-car, And churn lot for churn by programming all to be at all-time still soft over On just anticipate high us, is at customer positioned very strongly additions satisfaction we it’s seasonally Well, since we’re time with made driven an at

specific holding which we some launch we’ve on some efficient trials in on in this much – we the efficiently that adds, more question But acquire will then hurdle in and we’re And to and of we more reduced active net has trials. continue streaming the operating the of buying gone cost level extent, of is be And quarter, the of actually platform, now to marketing generating and gone some through largely spend your fourth to the the are in to a had at fourth – did back down, we channels. until is conditions market that’s new quarter.

until to and total wouldn’t as the expect we’re launch net see adds They course not I that. car But streaming through our in-car after overall net functionality to So of to over the changes adds. improve a it subscribers, business continues customers support will in streaming-only car. outside capabilities be to year listening the for streaming will lot of waiting still major to underlying of the and support the also these our XXXL able business, only in but as

Sean, in your That’s of very Thank new best you. helpful. And opportunity. luck

Ben. Thanks,

line Our of question. next Crockett Please with question comes the with Securities. proceed Barton from your Rosenblatt

I Thank is wanted progression you for about taking just to subscriber follow-up here. a the question. And I what ask the on guess

So negative. guiding for subs the for I formally think weren’t well, that, year. were last on modestly a expectation call this quarter saying you Generally, number the you was for

you loose updated that is us that you financial kind commentary. you’ve can Or different in just wondering anything could you Is if this I guidance. you’ve on an there Here talk was see? come and give point? that to still of what update at subscriber

Yes, Barton.

modestly platform younger is is and listening of I capable provide to is cross are new who earlier, points. And have continuing new also the rates personalized again, believe XXXL, to negative. but we’re the particularly see And of these very we advance But addressing more drive the guidance that and Clearly, changed we negative see support but we launch some of can as but on us that much experiences. sure XXXL really going quarter, strong going car down expect also pain I on metrics that growth in would that vehicles. are trialers, and that that positions in XXX out and conversion making in to we this to XXXL. a proof haven’t We half year. trailers, heads progress and platform for in because this subscribers, what negative definitive said, expecting features, so we’re the for that improvements nets out sort positive point us And investing for I listening we for modestly seeing these of increases continue to quarter-over-quarter. on still be we focused, using are second when just are forward. drive this with And the expecting, highlighted the

XXXL, And your Okay. how a material view? can the that course is XXXL for mean coming give point subscriber I in is over now acquisitions? the on that progressing your sense us are you how what portion And to this platform? on of of right in year

Yes.

rollout, is has been this key long what’s promise So coming, and a time is delivering. of the the XXXL and now

actually in by We’re it a about our increase starts of think the currently come to car through early that as the car I And XX% starts have over. starts. of of used time, the to – trial over turn those about third end about it’s as new of trial cars will come, get well trial XXXL our some year. to will seeing then We’ll start years in it XX%

out. I also to has retention. because Mercedes well content are but rollout move to it’s through lift conversion, announced features not eager plan this subscribers. our more key to as we a And see we that it So only improved deliver rolling continue and our partners. morning to can ultimately, think to and in And very We it’s ARPU OEM even

Thank great. Okay, that’s you.

Thank you.

is Cahall line Please question. question Steven Wells of the with next proceed from Fargo. your Our with

was conversion Jennifer, you. rates. a if to wondering of line that just on discussion. little a talk you Thank follow-up maybe bit I

like know the pen nicely. sounds bit also So a tracking mix XXXL intent your to are commentary constructive. funnel sounds now. maybe Competition on up and is improving is I rates higher higher buy the now.

those versus you then to that historically, or wondering about growing should car in for range? trials what’s you the going sort to on activity do we new if market? year? just was conversion modest this think, you. I car today used Any contributing the and were on how decline could funnel rates And what either on in car the used where of I Thank think relatedly, expect are speak you how So mid-XXs commentary

Steven. Thanks, Sure.

tail used bit. the strong see to started market, to start the in with little year. just that, actually sales we a months that car the used first couple And in the pretty March, of car off On were

As know, but well. is our up increase trial versus which part used you big us funnel QX seen a we it did sets of have starts in QX, car

buyers to migrate on in down the The used still are and market come pretty any the market car used that side. I start would because car dynamics to highlight. new cars are tight seeing prices major But inventories many tough changes may cars we’re not as new the from in

increase a bit just talked conversion about rates call, I to saw so for the pressure in last really low-XXs rates, and for the with trend do this last add used. a And had the are on – in is the to seen lot years pen the few over new period. more but to some conversion downward over car low-XXs we’ve On time color it continuing the dramatic we the in rates that

place for going about low-XXs from X is up optimal were We us the And in range that I forward. to think at XXXX points XXXX. the we’ve settled in this sort of

the will abate to acceleration was cars. there years, in buying So some massive COVID, then the especially last And pressure percentage of that during millennials extent. over few a

more launching. that see competitive solved we growth with already normalized are it’s to the get platform and and new that actually some of point our And easily we the numbers. that starting And we’re continue, will while down at this to have challenges come XXXL in are level

So younger more opportunities service. to looking looking generations more control in particular They’re the experience. are for navigate listening more easily the to opportunities for

features audiences a we service know particularly and brings core better XXXL who seeing conversion those have who older are even are our generations, and our to XXXL lot to relative of And to navigating younger it. used rates among trialers And life.

you. Great. Thank

with your questions. The next question is Please Joyce from Seaport. the David with line of proceed

Thank you.

luck. good Sean, First,

the congratulations. near-term? you numbers newer we new and to the saw of on I’m Like of here would from ARPU Tom, the the increases, in auto your we since given the with think Thanks. Look well some be glad cadence deals some working trends missed. are in the be how new this year? ARPU what about media price As You’ll of increase on deal any Mercedes-Benz from what here extended promo impacts longer-term here. industry should impacts and as tenure the you. forward the recent Question to the

OEM puzzle The paid we one been of promotional down revenue the trending David. partners. as few and last Thanks, Sure. years, look OEM piece it’s has economics really the our with our just over at

pay the the will well, obviously So interaction where impact makes penetration increasing a OEMs with subsidy. receive some economic those And and the rates as for there’s choose constantly we’re it three of and sense. of revenue trial share to levers navigating higher

slowdown over impact through in think of should terms time. how flowing prepaid revenue OEM ARPU the So I of it’s

side, continue year-over-year to last time we’ve I comps, because than self-pay less as focused price would rate the the the we roll on be plans. increase, did we the expect On increase impactful primarily it’ll rate out in improvements full

the more that price may there’s And base a to points –positioning to plans about discounted end still and we annual the we opportunity. for since market I our but plans do launch be ARPU just But to launched onboard X%. platform. we on history focus promotional and with better retain that range, at likely we and demand solely have want to I increases the our structures lower future, a will maintaining in of had of where when makes I are the implement subscriber That there’s able are top be looking at long do lot ARPU think has sense. flexible it think of pricing at we don’t because average new

Okay. Great. you. Thank

line Sachs. questions. of proceed the Stephen from your Please coming is with with question Laszczyk next Our Goldman

next more the morning. Good distribution called distribution, great. with partnership later and funnel maybe into strategy third-party could talk the sizable about quarter. few years, see that for little digital could that you the you become I How strategy. out Jennifer you this acquisition a over a Maybe on you of year. fitting the think broader maybe was hoping how Walmart+ announcing the bit trial Hey,

Sure.

So streaming them that been we’re the Stephen, Walmart, been trial different particular satellite offers. great or launch we’ve they offer and do trial very T-Mobile Walmart that consumers partners a to able and and choose, want or in out And testing trial? in-car allows pleased test trial with have a an I’m to with an

opportunities personalized in and will build in testing rollouts some when much new really easier trial represented by majority do we funnel, capabilities of partnerships learning And our is on how trial trials in the partners. more been as we performance I very expect, place put our guardrails launch millions you that. of trial the funnel media has year starts in funnel, The and automotive these have challenge in and will trial generation, better just bringing And forward. advantage out and we’re we’ve more take believe distinct we better be an sort onboarding, terms that the of sales every in we’re would better opportunity. not of flows, to through we these the platform, of our platform of to recommendations active into the and untapped the streaming this positioned is of more partnerships on But execute phase going as

allocation. question. as hear follow-up going It’d for broadly CFO, as of returns, in that more maybe do leverage see the your past? thought then to be Thanks capital the thinking that leveraging how great be capital about anything first we here since forward James’ relative call color. right maybe it right And mindful Great. different the for What we mix just about profile, of you you’re one it’s to just should Tom, that

Great. Thanks, Stephen.

of X.X often call to look continue the half free be second as we at QX at be and all looking and and the will times low will as continue used years. to our time of cautious of a to we’ve in target we the the for in we $XXX first flow lot not, of leverage of lot we’re current said spend the last We’ll mid-Xs our factors. the macroeconomic than cash a at at our being as approach with a but So continue year-end light that this. returned disciplined to and disciplined. in over couple shareholders – our noted, of numbers quarter our Obviously, remainder of you going the was we of coming million this year. year. to lot But we And the process probably the in We’ll more opportunistic

Great. Thank you.

you. Thank

Thank you.

with Benchmark question. of question Harrigan Please from line Matthew is final Company. the your Our with proceed

you. Thank

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Thanks, and over it question. hand will to on start second on Matt. advertising your I Scott

up in positioned on we ad demand came where were solid late revenue ad the December certainly across streaming due X%. relationships on XX% And than because or budgets, to content podcasting. their And spot. to and quarter as quarter. in trends were just I that’s we side. quarter really continues open because programmatic a started really music revenue were QX in Our advertisers was representation that expected we with be these we down And have We year-over-year in the results based to the up have capture great that believe better had podcasting bright Podcasting well January. a solutions to heading

bring been traditionally much and been DXC to in ability DXC the Our has first more podcasting, brands soft into quarter. it’s

just custom audience or integrations. buy we an our basis market across network And and have come in in solutions buy on for either then to advertisers these even show level and

trends we’re the little softness some a recover. And to? there’s to really categories, in more, then well which on so restaurants, about Scott, continued the cost forward. coming that second going makes financial thing great just if and in place, and market side. uncertainty the positioned, I even guidance Certainly, softer it’s the continue we’ve half our positioned in travel, still casino, on And the is put been And you improvement that in but services. are reductions we’re back really think, sense hopeful the well podcasting telecom will the market want if we in even is automotive

Thanks Great. Matt.

be and freed of or a and on fact trialers So proud we looking one what voices And you One, between they while negotiate allow home issues of things. that have to anybody don’t moment. at at subscribers any talent, given decide we’re for we fits platform other our want true listen things to on alluded the logical comment the the anything the most to be into secondly, of and potential listeners that basically we of to letting the the look And we’re is at what directly. may voices. we those the package and totality diversity them to in

our lot consider decisions. So door it’s any find of People a before to way our and we anything factors else. make we like

your answers. for Thanks

everybody to later. Matt. Bye-Bye. you Talk for Thanks Rob. Thanks, Thanks participating today. operator,

you. today’s Thank will This conclude conference.

lines your time. at Thank disconnect you for may this You your participation.