Sirius XM (SIRI) 31 Oct 232023 Q3 Earnings call transcript

Greetings. Welcome to SiriusXM's Third Quarter 2023 Financial and Operating Results Conference Call. At this time, all participants are in listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] Please note, this conference is being recorded. I'll now turn the conference over to Hooper Stevens, Senior Vice President of Investor Relations and Finance. Mr. begin. may you Stevens,

or Tom and good Conference our Welcome during have Call. term are the XXXX. statements Private Reform Witz, uncertainties forward-looking as Officer; questions Jennifer to risks your Content from imprecise. Officer, subject and the current to Financial Quarter call prepared might SiriusXM's statements remind be would XXXX and made like expectations could Q&A differ of portion upon everyone based Officer. and forward-looking President Jennifer and that are Executive will Securities to Such Chief certain is Tom statements methods Earnings the and Today, necessarily our depend These our upon Act incorrect Scott data morning, you, Chief forward-looking statements and assumptions, beliefs Chief actual or Greenstein, to everyone. call. I materially. results that Third the defined take remarks Barry, during Thank all cause to we be management's that and in Litigation join of will may this

more those information uncertainties, release. and view SEC For filings earnings today's risks SiriusXM's and please about

rely intent not them. to forward-looking listeners disclaim on any advise We and or statements update to obligation unduly

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

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

everyone. morning, good and appreciate being today. Hooper, really Thanks, everyone here We

approximately in closed service to progress goals with XX subs. the to sequential remain and track our on the net quarter for total SiriusXM We improvements and drive flagship subscribers are We to year. pleased we quarter-to-quarter continued made million strong quarter self-pay this our with full meet the

still of year. year And Subscriber churn year. expect are ad approximately relatively flat formal The back for half market net last remained for subscriber vehicle-related at close guidance low we despite we this soft, XXXX, turnover. versus X.X% we the slightly subscriber remains additions anticipating positive the and not in did although issue self-pay increases incredibly overall to

strikes start SiriusXM within this While after CPG marketing some begin such audience important given to SAG also our verticals remains buying bounce as did making and continue partner apart, an tailwind Podcasting past our the key back. to both WGA set in entertainment and scale. to the see delayed quarter, flexibility space a resulted we us and programmatic capabilities campaigns

capture our you years over we the live service human-curated of As our to few the subscriber positive consumer demand position accelerating us been differentiates the have with we've to audio that business in shared transformation to quarters, growth for better last SiriusXM capture ourselves ahead. and

this retention customers. new quarter. business. on focus onboarding continued enhancing improving Ahead and of in and as returns cash Our of ongoing investment profitable rollout ready business, underscored business amid next-generation model our streaming resilient and we trialers bringing efforts the flow of launch, by to extremely upcoming our our efficiencies and of significant generation persist this the phase past Increasing later the quarter, streaming-only in for platform even our we

are cohort first our moving very beginning ever are trialers X-month earlier And first with and off while pleased we still see this integrated early, we the offer provider, we billing to year, streaming results. the with T-Mobile announced the of

expect where content just streaming preview going launch on improvements provide continued and marketing our look unveil We of put we event look will press enhanced new transformation our year. with us from new what on marketing our a first that confident in coming for path into will we the much industry This you products, been and as a tomorrow at series year up in at of our retention capabilities detail to past are experience, years. this beginning more. only next reveal our year will refreshed is streaming brand launch of move forward and a and the through a acquisition and subscriber accelerate to products, a innovations the later this We we we've that more week and in brand platform

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continues growth, streaming our drive future While will today. in-car our our experience to long-term company's the be experience business of a cornerstone

of the with quarter, and agreements automakers. in with pleased of adoption and are progress new the our made extending long-term innovation We technologies platform driving the XXXL

fact, in traditional F-XXXs I'm and F-XXX that on Ford XXXX, to today with in available year XX for to feature SiriusXM beginning running. model being Lightning, make In announce addition excited best-selling a will the standard years vehicle America's

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significant a marks us. for launch milestone this So

apart. personalities radio we creators listeners the back premium with at that quarter, diverse love content and brought they Looking artist, the closer a curated slate to our programming past service sets

she season already which a with to includes closer multiyear we general This rise deal. example, Megan political presidential incredibly to expect Trump. a with progress be leading a on halls next when Megan candidates. last provides top figures, that of range year's Democrats to across our percentage some our with in-depth platform headline to can viewpoints Kelly to in significant from Republican with we've the the election. we of interviews month further underway, growth of to regular making as recently programming, a channels, show, former in interest Donald with which our appearances the including growing interview new had town significant move proud we political extended a We're wide continues political listeners For exclusive channel we're announced, and seeing XXXX President, deliver cultural

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the Brady, in carry our agreement News, content News of NFL and our FOX produced not home commentary the and September. our we extension Jim multiyear alone, exclusive Fitzgerald last the across biggest to fans sports value but so HLN, Overall excellent announced spent own and we with NBA, with announcers we the to roster simulcast launched are which much MSNBC Tom the of In NFL, total week, the Gray the SiriusXM of in news listeners Headlines so Radio. for and back, addition the season, up Business NFL was football, action season including television listening also sports. host, MLS one-stop XX/X. percentage also CNBC, And former consumers many FOX the go with as NFL delivered of in game to we exclusive positive country, broadcast Show And content In a FOX provide third and We Smith That's in this unique trends town outlets more and the the Larry season, show, seeing this and Today radio let's every added college of games. exceptional channel, with beyond channels, talk we and time only saw SiriusXM your the our uptick with deliver. we quarter connecting NHL listening, are to Alex Pool listeners of our CNN, of an year-over-year quarter. fall discovering destination live start in

our SiriusXM listeners anniversary [Lutan] including cities. community event & concert special something multiple a The show hosted for summer to past of fans, giving in with of very a Cares approach and that listeners Hispanic day specialty dedicated and spotlighting, a pop-up in Grammy aims everyone In and for Heritage we greater exclusive work. with music the with Club for to part SiriusXM Likewise, HipHop and philanthropic Girls also Latin Boys August, of Hamptons. initiative promote our From celebration artist culture events, to was we music the the across communities throughout programming, holistic clan share with a incredible quality of event Pandora could in this and award-winning the social live had Month edge alignment where a and further we one-of-a-kind and which SiriusXM XXth the SiriusXM hear this in channel, quarter.

built the to years, Radio to the in Hop next meaningful was makers. and great an us change honor have our of a over music in get Hip also culture listeners. deliver formats content delivering roster success to viral back such channel, artists and it these continued for generation continues be TikTok music past that We've quarter impacted ways in of TikTok to out this through the personalities. diverse influencers we that with how and host and different present an resonates younger, package more incredible

the the songs September, show their the a influencers. in we of in U.S. influence dedicated share for respective viral they TikTok where top on culture music And introduced each hosted and commentary one we example, personalities the of resident pop countdown most platform introduced of TikTok by our platform. the For yesterday, on on just shows of comprised add popular new areas weekly XX

Moving growth on continues to to driver. our be advertising business. a Podcasting

in delivered in XXXX booked sales. than already XXXX more have we year We full

and of Our programmatic third is growth marketplace the podcasting quarter up year-over-year. outpacing broader was specifically XX% XX%

points. innovative as our capabilities show by delivering an space on well both work bigger picture through pain solutions addressing at level within at this develop audience industry continuing aimed focused are We and to targeting as

new as brand a provide that such to scaling the safety and on advertisers ad This remain reporting our barriers they time, real insights within and business. contextual we removing includes time solution analysis marketplace of in advertising broader automation post-campaign SiriusXM growing together historical expect the to give to are investment. relaunch podcast us. a up We barometer in their space of focused opportunities digital new users their Arts so our marketing third-party pool further AI. and advertising SiriusXM as new the welcome advertising We active dollars able with includes confidence buy can to first-of-its-kind suitability monthly can the our expand suitability brands over opening for them increases By to as and podcast to with the now in suitability, we brand available developed mid-campaign platform well brand receive offering, optimize drive verification platform, and

third am our progress I with quarter. the and results extremely Again, in pleased

to cash a service on sharing many like our human-curated we SiriusXM's and coming ahead, robust as week in to Looking our forward expect audio I generation North next position America. at underway years premium in details event the transformation more we York. in look our grow leading New

in now to the it turn Tom, over will who through more I'll detail. financials go

and morning, Jennifer, you, everyone. Thank good

As line Jennifer third are our in with overall quarter noted, results expectations.

be royalties. X% a and cost approximately dive to X%, grew just million. advertising financials. revenue let's quarter was can marketing and the in our billion. came attributed revenue at to by initiatives $XXX Within sequential of uptick by Now million subscription optimization billion. Adjusted share basis $X.XX $XXX an were and at into EBITDA Revenue for partially X% year-over-year $X.X quarter the sales third in and unchanged expenses, that, which under while offset on This reduced revenue improvement increased

continue the decreased produced third overall. $XX ongoing savings Operating by during look cost for the X% to savings initiatives new third for Our we quarter million nearly quarter, efficiencies. and of expenses net

Turning per to earnings diluted share translating recorded million, We of common XX% year-over-year a to increase the quarter $XXX net to income. $X.XX. in

lower due R&D capital reduced slight ramped the XX% million quarter, cash $XXX as credits. and tax and taxes Free in quarter expenditures we was as as cash satellite increase saw year's other in non-satellite than well flow third third last up a to

As probably years. to remain but we many period in CapEx coming of heightened in of see zero you continue the know, this satellite a to tapering

XX in X XX. refresh, and for on SXM as ramp and we the satellite top the SXM full of XX $XXX year for preparation million are and ongoing expecting we As a approximately CapEx XXXX

$XXX numbers, million zero. satellite XXXX. $XXX to into and million approximately see $XX ballpark near in in or Using to we be $XX the XXXX, we should CapEx remain XXXX, range Heading million will at in in in million XXXX $XXX declining million before XXXX

to expenditures showcase capital $XX primarily launch to million, by [Non-sat] in non-satellite year. the range plan that SiriusXM related to $XXX $XXX next-gen the week. million Additionally, million be will we rose roughly next this CapEx

by cash timing of satellite As we trends of interest seasonal the fourth previously year a flow in free delivering quarter, free full meaningful and driven the mentioned, in payments. anticipate and royalty, portion business our our

and SiriusXM down as segment, In down extremely market. The the to X% of the revenue, revenue $X.X advertising SiriusXM XX% toughest an billion was in business, navigate sequentially. segments. continue turning advertising quarter tough year-over-year broadcast we delivered the to Now the year-over-year we flat

quarter, partially lower March OEM reported price paid benefited Total plan paid full and saw the absorbed revenue. Gross advertising price representing revenue X% increase certain music I declines we promotional was higher improved offset balances of subscription about plans. OEMs vehicle to self-pay royalties, offset $XX.XX. OEM as vehicle subscribers share. $XX by from rates SiriusXM third headwinds last in billion subs margin point subscription to unsold growth lowering only were from in on slightly promotional a X promotional and as million trials, connected plans roughly quarter rev We $X.XXX compared to ARPU revenues and XX%, inventory. down in mentioned and a decreased well select by on ARPU segment as The self-pay from third paid profit year's the during higher

a million to basis. Advertising million the year-over-year revenue $XXX ad offset of music year-over-year increased quarter X% growth profit compared and in the total on in In a sequentially approximately margins X% year-over-year programmatic Pandora increased year-over-year by and of royalties, off-platform of podcasting approximately driven and and the result sequentially, revenue in segment, million margin steady of X% sales. off-platform partially XX% segment representing Pandora and $XXX a higher prior the podcasting total X% XX%. Gross $XXX as improving of by segment and increased X%

offer. On with we adjusted seventh net pending. third the requirement we our transaction $XXX to of the remain changing another of repurchase regulatory composed Regardless This sheet original At X.Xx. always was to end its allocation that hike since inception and we market third plan quarter, We the this the were returned share annual provides At environments. million ended dividend, some expect in announced navigate we is proposed XXXX. of million quarter in debt out while Liberty's strong hypotheticals, time, of market will And the recently million our repurchase. front, to capital approximately balance to through of we a quarter to dividends shareholders an SEC value the of given $XX a $XX in the perspective. from flexibility transaction recurring XX% increase stock the EBITDA

low but free of proposal potential last, and special directors Liberty the independent a as And Media cash flow continue we certainly company. existing EBITDA So the target maintain roughly looking a billion least, regarding of transaction Board our not ahead, plan and nonbinding for to approximately we of existing to be capital $X.XX leverage revenue We of billion, with $X.XX also of our committee $X about efficient billion. you're involving mid-Xs. XXXX. guidance Today, received adjusted to our aware, reiterated long-term financial from

liabilities stock of through to This the SiriusXM the of will Media Liberty split-off company of NewCo formed group combination from the separation newly and consist subsequent Liberty tracking a assets attributed transaction and the of potential and SiriusXM. a

evaluating a potential has Liberty and is of the SiriusXM stock of the of committee in As engaged class hold The our these company. transactions, combined one all of result special the stock advisers common tracking would stock holders proposal.

committee terms do approved Further, completed is evaluate such be Board not business further the we will long-term that are its requirements. transaction, In really regulatory know required transaction except on role. proposal. or We Special not our or transaction. until company playing plans any the as committee of and we, I the are team advisers Directors general, expect to other law and this proposal as appropriate, special news Committee special conditions information and the do is other and the concludes that or a and the transaction company's of otherwise if supporting the Jennifer our a any providing or by disclosure our they In the management and

focus on proposal our the through the we works company we always and positioning have. this customers our of process, While the maintain long-term unwavering as its will way

over I'll for turn that, the it to operator Q&A. With

Our with first Kraft of line question Bryan Instructions] Deutsche [Operator the Bank. from today is

I return tailwind natural sales though now the wanted as wasn't seems it needed churn. you, conversion it adds. the auto to that increase appears are vehicle-related self-pay to at ask to in offset But that enough business guess, providing I to the self-pay net quarter, this least to

confidence positive level adds to you what you're seeing dynamic And on could quarters. that related next year. about conversion that, currently going reversing and conversions recent into a to that's translate your forward So rate net maybe talk will what's sustained versus self-pay so self-pay how trended in in if basis the

on the going product streaming make marketing really enable a on but do and in forward. product here year, and car And course around this we next to year broader of launch in then that with first, Sure. we've Conversion platform, improvements solve these with this trying we're course, relatively of and through rates into building vehicles. as and we'll in conversion pricing. have our in that the starting more to the impact But comes over for control stable to trying side XXXL for forward. which, what discovery, the the we going continue roll rates us move year. But year, expect in and been will new lot about out and pain solve both that's to to discussed we're see talked next in-car late this platform work of we've We're streaming to improvements points core past, going a

of direct But providing to point a our more We've tailwind. sales you conversion a be that out auto been seem process. heavily for reliant in-car bit marketing on

and much ticking that with strikes used have going faster growth the trials we the lot where seen on in it been been fleet bit, with rental momentum new -- trends by trials on a some on There's we now up seen and should consumer, of But forward. more car fleet car and don't the still do have as side growth seems that provide has in and we the consumer side. the new rental but much. participate not improved resolution, a but propelled We

a enough seen this domestics to We for but had basically really used the the from sales on vehicle-related auto in auto fourth growing inventory biggest next manage both in for three churn hope potentially. going year, But to side because funnel impact trial course, the impact really and new in an starts into car higher-than-expected year, again, strong would we hand they through result hadn't our it. the very of quarter

obviously, only building the that's So the downside, funnel.

Our America. Bank is Reif line of with Jessica from question the Ehrlich of next

a of have I questions. couple

users. One of the attract to be seems of major the future younger drivers growth to ability

you your content can you about a move bit the little new goal? will And launch towards just not, slightly of along be different. And a sorry app launch app But plans offering talk but question, of with to those consider audio completely So for the are then just into books. or much, see adjust the would that the so streaming the something Spotify pushing different. that may we well? or lines as you completely that Is different what

were a G&A marketing quarter. lot. costs a XX%. lot Your Sales down down down this and

you spending? of permanent great. more were it -- margins deferred your is obviously, Or a this So But is cut?

in content new can So and you the can jump cost and maybe, structure. Tom, Scott, you then on talk start about I'll

younger certainly the apps, us demand year address will audiences. with launch new help yes, this Jessica, of streaming So later

very fit growth market, we've they overall the faster objective the be make listening premium are have sure apps and of identified that product effective to service might market there is which provide. X/X can our to an -- segments, we we adult for So about the looking on-demand for what move start because a to in music streaming audio experiences to audio beyond

in for we to have control content and to to navigate the them have the product. to and audiences extent, difficult today we the we largely, content need it's believe just address So some discover these

the so well we size our significant a very actually funnel of our a represent and younger have funnel. generations robust streaming And as reasonably as in-car funnel

more? bringing satisfy get we're just now products. So to the to there. you needs better consumers they their younger need We talk want do And Scott, once into our

Sure.

of don't it what a think younger, So Jessica. should, couple things, it is comes often to overlooked, I When sports. gets which

a that six particular. in need attracted younger now, all And has always audience to streaming have right we games you video the So services broadcast.

solid. pretty So that piece is

podcasts. the mentioned, out can music our DJ either a artist an do within will new as through other product that that pop-ups. evolve product in on be of found that to it come mentioned we I app it that doesn't there as in ways. think comedy, On you can things the there's basis. It's there and on other component artist think that. And nothing or do goes. And it's guest books things, our an or almost audio a of will isn't it. that with get particular, the and Jennifer have come one doesn't and politics, side, our I whether other question unlimited When In music, a let younger But

served question their now that as got can have they're be a of audience served those well, a that will It's to just many surface a way in used a just be of finding it's to well is We younger audience and content. core those. and found

Jessica the cost then And last part your question on savings. of to

time, product. company, we're obviously, and an going the next the is refresh to week through So same at organizational be And the next-gen internally launching optimization.

of processes to we're look technology, at variety areas. a we a of see the wide As in savings starting lot leverage and

up already. have of them Some shown

processes. I we'll our we internally on Some are ways forward. as to go we And think technology, on more savings focus of see them dependent future but innovative continue to enhance

the $XX worth net savings optimization some you then recognized million there marketing, quarter, the worth that's quarter. some of as million level, savings As in the in discussion, the from quarter, fourth there there's of is noted we obviously. deferred this optimization to level and in I is about but said, And $XX sales with

the have more year in quarter come in ahead. and the to next will We

So that's the update on...

quarters. to hit I record $XXX say, we're million the Yes. clearly nice in individual third a managing would to of EBITDA while not It's high quarter.

feel good our to cash strong EBITDA ability going to we and forward. So flow generate about continue margins

the coming is question Wells next of with Steven Our line from Fargo. Cahall

[MITs] First, talked for think XXXL to next Auto. week's you just what wanted about I for the launch, product conversion understand next-generation Android

So are lot updates current of I there positive two not kind app-based coming? the Auto Android has that a think consumer or apps had feedback. of improvements so

getting are streaming-only you'll So customers a that plus subs. have update then current next-gen update at more targeted

understand just rate. XX lot ARPU trying seen subscription So then streaming the for up inflationary to last usually that SiriusXM at over dynamic. grew of years, price an services a and months. We've And direct-to-consumer take

there has ARPU out. I as well. there in some know Your flattened is mix

So you term, longer bigger SiriusXM move how as component we ARPU within especially that? the a think subscription do over to digital about

Sure. more say, about what's a next Stephen, We'll have lot to when launching and week.

question. couple So to parts your But there tune a hopefully, for in are you'll of that.

and updated they'll And streaming out those of and be will And late instances. and year, new will we'll be over course across updated who our well in-car subscribers serve few Android. the streaming new CarPlay our also existing So auto we'll then -- as so iOS are and weeks. Android subscribers as also roll a have streaming launching that this those apps, be will both

and launching first XXXL car. Automotive our obviously, used, system That's SiriusXM of of this the be Android comments announce instance we can they based, are So We my it's did an it the car earlier with year. car. or outside that integrated in solution operating in in

will the taking We And And to time. over OEM form the whatever and but AAOS that's ultimately the to take of want part sure to a are different rolling it technology are that will going be clearly, we do automakers OEM different there. believe be of the course, we vast automotive use. make And of implementations, the rollout. of out paths majority architecture typical chooses

to a of clearly, XXXL and terms is the allow integrated AAOS more features XXXL do frequently. updating our Recommendations, core by ignition So car taking best we're satellite apps, recommendations. will on lot our in whether retention. and the IP, advantage more consumer one to us going is subscription going said of an have We the of in to enhancing in experience instance earlier product in that first basis, forward or it's of value and on

And so come with that and XXXL we in to of in year. next XXXL AAOS as move will instances start other into

gives that want first, we're sense to going hopefully, and talk updates technology of then of apps bit we've And forward. there'll Tom, to apps, have you And time, as in with out consistent to how improvements this the streaming to those we how little do rolling course, rolled start our out, past. a those be about in-car that over you will to So regular a bit ARPU?

next in coming be OEMs. some the far year. side, to we price level premium up by looking doing promotional relates is just increase and the it promotional next a offset March as on increase plans did Pandora from will the So has increase price ARPU, we increase the of as But on coming Pandora the self-pay on ARPU, actually at driven to we what Plus as the a have price in overall a but and plans been rate been price the overall drag obviously ARPU. has is But increase the September,

we're address. So we're the in that we're that to model, continue and week and the looking the balancing balancing at the trial our of the as launch look plans pricing at price the we to model we continuing as pricing plans then look economics next increase obviously

how side, on plans the to no there's the using in in say have and difference attract retain promotional I'd Yes. series we're we past. customers as

specific with and those our we a increased through pen you reflect promotional our we and still economics, was we deals path deals. in that which include a referenced Tom just the done is that he also past, lower bit a in narrower revenue, increase rate the improved doesn't think of scope ones believe the especially on continued as referenced economics. Overall, paid trial there. I of extension addressed rates automakers function OEM plans we've negotiation And necessarily -- are than driving the haven't the

I and and it's them or grow an in perhaps less We we've the metric, the but just believe said to we an opportunity an subscriptions packages, our core subscribers for getting ARPU be obviously that to as very streaming to And that for enhance our rate could about see And think specifically. by opportunity points. but not follow output. the there is increases want We past, support at lower they into also it's the ongoing segments value price in future. much the of content subscribers content

nets I how out improve revenue don't to definitely about So know feel but of overall. necessarily in good opportunity ARPU, I that our terms

question of next Mansson-Perrone comes Cameron Stanley. the line Morgan Our with from

Two, if I can.

Pandora one for a are business OffNet levels good The could wondering, the to but year. overall driving Pandora. was the if we is this reiterated record in where you that? the help know at on, gross at point highlighted us obviously the I time then economics, on wondering was years you margins, accretive broadcast what's margins And now at came improving guidance. there. in I EBITDA gross First first improvement I of understand couple

on was full you light the decent I XQ guys some of EBITDA last implied think terms is XQ? in downtick provide if in have the saving I quarters wondering just margin a you the the implied cost couple had, could success color of that guidance from of is by year what

one margin. on Pandora Yes, I'll gross take first the

primarily. economics of side. just advertising improving really So earlier it improved the podcasting in And podcast about revenue on this as is function a highlighted driving we is comments

the said, third believe were I you we XX% quarter. So in up

deals, the to the faster continue lot we front. the expect falls continue podcast on improving We that And the advertising given just And to gross overall the on structure of to revenue. margin. monetization through market grow a of podcasting than

at when based suitability lot We safety targeting bringing for, solutions identification of into a over as listening on more the space of looking which better is platforms, and more users, brands and the brought brands and we're or challenging brand happening have multiple it's well. is very our relationships solutions and Pandora, are whether that its

want So that's there. you driver do Tom, the primary to...

Cameron, for Thanks, sure. question. Yes, the

$X.XX year, The billion. the we being for have As reality guidance, you far as focus of is we our on at look when approximately. guidance EBITDA full

cost metric each we level say approximately marketing overall, the of then being you've to the And have so variability royalties have the side obviously, of and would the of target. at on each fourth just above quarter variability at talked there's focus that's on you some below But guidance seen them fourth gave. And this we of and quarter higher is there as that I look the each look and the metrics, with the the pushed with and year, we about of them, when and would optimization. I it. quarters EBITDA, But around the

and any is And there uncertainty year, through were because much we improvement. where slow And last really and materialized start move to about this -- like we've year. some so right progress, looks going just expecting And sitting see be this we would. time it it 'XX Yes. that seen think we at in advertising recovery we we level were hasn't now, I expected but before we as a now the really it certainly to it's

uncertainty, So ad -- the and us quarter overall. revenue quarter given revenue for for is that revenue for biggest fourth

So I revenue. as a ceiling clearly, likely looking say approximate would at billion just on Tom we're and like said, very $X

is line Citi. question from next Our of Bazinet with Jason the

that response with you today unpacking bit to a pricing Do three are you pain pain give rollout? today. exist just you solve or mind that little either you points, control confidence mentioned the an platform research that that the give question, discovery, anecdotes those you points next-gen can that and In earlier on

We've of side, the and a lot, to just even where better into people on it's discovery our discovery, a terms understand testing an front Yes. the subscriptions. we in And We Sure. lot bringing constraints are this research of on right? talked terms of control done set content. in Jason, incredible and have about,

about the or we right? very passionate channel, are content passion is, the even subscribers favorite Billy or Our whether it's around we have, Beetles or people music find but highlighted, the that pop-up Scott have Their Joel can't it TikTok it. such whatever sports

other as platform to without about you having the car into products. right? to I've streaming an build all like set the just that we we've need of before, always that products And had and facilitate of and engagement that the you do talked a this that discovery model turn work, And get dial,

XXXL, And that so coming on surely, and in but our slowly a engine and suite lot is have streaming we'll will which of and recommendations whole is in keyed the overall. recommendations, that through our apps, improvements definitely improvements across support to go our of products

because also with a And content, they is and love them they touched into Scott people surround recommendations will key lot other to as the like. on that. discovery So content you then get

interactive have which, And can about how where not of as do music fully that with providing can new instance. skip have. also we week. but will better have you we'll also, this next content a customers preview again, We some is to the service, control features, for you songs, idea Control channels

New something into have channel in certain may new, to to features able an they have, we'll who something be listening else customers allow gotten and believe, that's easier and we put may a point them that similar where want to a way. very

the improved in is products and there discovery and pricing. control So

have is subscribers making broad content something they music a may, look whether packages for nonmusic able have different set attract for to This have younger content, And are music consumers different now service. broad some solve or will and music product critical and set we human-curated looking on-demand in to to those at points really been music about a We've a side. the ways we products reduced or price at price what complement of some many of who using are of in on-demand be to who prospects set us fact, of But to to our else are to really that of consumers complementary it's is complementary the sure as on at consumers' audio collections. points, need. oftentimes, in that content have music always

next the Crockett from Barton Rosenblatt. of is Our with line question

detail that at into And you a know production? your kind penetration what are you term? kind consolidation we zero. this car talked of outlined kind you about you rates. In ground And of CapEx us And remain? the know I So level where the you one if of kind of environment, essentially networks maintenance I what of also term is and penetration contemplating the point getting question. in is towards have like. of your your constellations more long of terms I satellite the around was the trending repeater could long interested will CapEx that little that's give of on then now bit XXXL the penetration? are F-XXX new What trucks.

you would could that, elaborate be on If helpful. it

Sure.

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Yes.

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next Our comes Stephen Laszczyk question and Goldman Sachs. final from with

into then any or what the of a of that's There's terms to end of end? it and focus mindful non-pay you on quarter fourth speak you're we health on costs on heading think would indicators of heading First, been would just could uptake on or be next impacts I update the if the trajectory the you the year maybe terms the lot real-time consumer quickly heading of auto churn over, certain packages the voluntary of be of or be consumer should that for seeing that you that in with And of curious what year. whether consumer us the into in of Jennifer. equipment of health the just in year or the being audio trials just on into front, track the strike some the the helpful.

Stephen. Sure,

really other -- or terms trials no strike, material metrics. on the auto So nothing on in of to say that

going we be should forward. So on that front I think fine

of strong we retail consumer and just overall health confidence really have the spending. the consumer, On seen

direction. into When or not rates up certainly a few next lot any in auto heading savings been As non-pay sort advertising you just and Voluntary quite But discernible general so fallen they're for been about of of consumer. and for taking overall, in year-over-year, where second. indicator that recession. about pre-COVID. non-pay really have been us, And X% uncertainty a is for year's several know, voluntary despite best give increase now, the but is But not have quarters non-pay for were our the a there's vehicle-related a take, have points and churn either possible obviously, at fact health of default basis credit the out happening entry consistently bit. above leading recovery to our very last year there's card the continues rates, satisfaction which be then level. our they

we're something clearly, watching as the it's So close year. closely, we out

for everybody, We'll speak you participating to soon. Thanks, today.