Sirius XM (SIRI) 30 Apr 242024 Q1 Earnings call transcript

Greetings. Welcome to SiriusXM's First Quarter 2024 Earnings Conference Call. [Operator Instructions] Please note that 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 now may you your presentation. Stevens,

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

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

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

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

to meet and performance, quarter year course encouraged all guidance. on by full are We first are financial our of our we

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business. reach advertising, in our investments is monetize and in advertising growing SoundCloud, mention, portfolio Pandora, by biggest and advertising-based to audience are I of in creators, can believe We reach, as Our effectively out we to our incremental subscribers. growing. The podcast true about to a more in approach to growth benefit anchored digital engagement population network carving now this win-win. highlights sell every it's podcasting Media growing SiriusXM month, both the drive broad deliver SiriusXM and value to American interest broad experiences and unique also content reach the and and half that while delivering SiriusXM subscriptions content in began reaches to We service our audience SiriusXM podcasting now and

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open invest that opportunities Additionally, ad solutions us. up for in tech we continue new to

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path we our to are in we financial this incredible quarter believe grateful we improved deliver and to subscriber do this achieved here on for to team our stockholders, eager have as continue transformation. at in of right results are SiriusXM further be journey along we so. I'm and proud the the progress to the results I and to We

over summer, XX Tom, after as will did that we Officer the Before SiriusXM. years this that Verbrugge Commercial be to call stepping from pass share Chief his at to I Joe down yesterday, want I announced position retiring

I'll We of to his this company. And service you conversations to the financials, through over have active the deep commercial across We'd for impactful detailed walk are the long and talent Tom. to to more now in to thank call and turn organization. Joe bench internally role fill a like

everyone, us Thank first joining and for Jennifer, earnings XXXX morning, our thanks quarter good call. and you, for

year lead, for want transformational Jennifer's a acknowledge company. our Following to steady to I start the what is

pleased environment. challenging are headwinds guidance full the our reiterate year we from We financial to subscriber see despite

growth investing and to our on experience modernize go. billion strategic and customer car via advertising quarter. We $XXX across With ad driven to experience, the revenue and proposition, with sales, efficiencies remain programmatic our sales. was seeking in the SiriusXM value up our X% the are of dive in in are QX, We particularly total let's the We expanding year-over-year. on on $X.XX revenue in into increase focused podcast The in and our organization. by transform plan improving ad and business that, million, to the X% committed executing greater enhancing recorded a

fact, slightly higher compared first year's subscriber revenue In deeper XX% grew a with base podcasting a the last a quarter. Subscription offsetting dynamics, little to average into lower an modestly dipped ARPU. revenue slightly, vehicle subscriber vehicle with a this moved the number sales slightly used trials. unpaid into purchasers increase to and greater of in higher contributed and base existing self-pay new as churn, out quarter Delving of subscriptions

the to help future this expect in quarters. We trial grow conversions

X% which by increase. We boosted initiatives advertising our and development, million across XXXX half and to seasonality with performance the efforts lower year-over-year platforms. the year-over-year and saved EBITDA better across slightly we our greater company expenses. In first well design results increase a support improve resulting should business, back by and of investments this also optimization expect subscriber similar our These as $XXX which strategic optimization profit to in continue of legal quarter cost revenue enhancements benefited the XXXX, through our was in XXXX, The gross products tempered to year. Adjusted gains from in approximately the from million, were cost subscriber was and business. beginning the the see $XX as consolidations

saw Our investments our enhancing expenses total even important very focus cash increase decrease operating the we year-over-year, as business. reflecting efficiency in on a slight

delivered reported for approximately quarter X% price full revenue, price in increase billion increases The was last up year's segments. The the in down ARPU $XX.XX, Turning XXXX to was SiriusXM's $XX.XX the year-over-year. first quarter. early representing from driven segment of SiriusXM by $X.X in plans, self-pay to our ARPU only partially associated offset was by SiriusXM million during gross an promotional on with XX%. $XXX margin select subscribers a increase automakers. quarter, from streaming and impacted trials gross profit in paid also rates by plans. about reduced the

year-over-year, reported total $XXX our a Pandora million, in revenue increase $XXX the X% an segment to segment by X% the of a driven and of revenue our streaming in Turning growth X%. podcasting Advertising XX% revenue. off-platform revenue growth increased of and in million

X% ad average XX%, XX% advertisers per representing to a $XXX first up user from across were year's and buying. Segment Jennifer as active the slightly, a have margin hours mentioned, sales nice programmatic way and X% hours about continued the to profit As million reached per XX of first gross thrive, in XX% quarter, streaming prior was gravitate podcasting $XX. sufficient to quarter. the increased combined, ad month. of Pandora declining up and $X.XX billion, year-over-year saw hours Advertising lift RPM for

$XXX content the quarter, $XXX million quarter. from higher the cash attributed of capital free $XX for by million decrease QX XXXX. our timing realized expenditures The a an and was can new of partially decrease to million, offset During flow the the spend X% during lower payments be in vendor of quarter,

in XXXX. million technology We previous approximately fund investments. $XX in we to plan million quarter, $XXX disclosed In the invested more addition, our energy during clean

outside any are these with flow. investments, equity free of As cash investments

modeled that these roughly our cash taxes have $XXX year. by reduce million We will this investments

our capital the update we benefits after-tax and lastly, roughly will balance the of years in on come later cash previously, As mentioned in bulk $XXX returns. short sheet of the million investment a our cycle. And net

ended and net the $XXX to During our EBITDA million debt of adjusted X.Xx. through quarter the stockholders paid dividend first SiriusXM to quarter, with

leverage closure next with approach the low months, target to remain in to sheet, strong transaction a mid-Xx the we flexible As range. balance of maintaining Liberty and in committed Media of we couple the the a

reduce excess business our our back targeted the substantial with flow dividend, by our cash to used investments leverage XXXX. range in prioritize the primarily continuing half will discretionary the and ongoing of to We

an the Additionally, following of look share transaction. we at repurchases will in opportunistic manner the close

Now it over to hand I'll the Q&A. for operator

from comes question Sebastiano line first Our Petti Instructions] with [Operator the of JPMorgan.

first quickly for Tom. Just

guidance in to self-pay Just regards commentary. or

year-over-year year also gross as thinking anything? the basis. You of basis churn churn specific then line? the the any with to quarter balance just on seasonality vehicle-related anything the regarding longer-term and increase a on imply on expectations? And on Are about improvements you of the year the a voluntary there. favorable say side, adds currently you second churn you said expect perhaps in half the obviously, what back trying Does nonpay that seeing updates we're But on is in now you're this as similar

I'll Sebastiano, Yes. take that.

the similar that over I year. And relates So terms of improvements to we as sense earlier the last the the seasonality have to do churn. specific we as believe will of some the we as we give mentioned quarters. in we earlier second the that comments, you quarterly Obviously, vehicle-related half. movement do course but see in year provide guidance, don't year-over-year in to it should will think

higher in on So offset higher on that that in want on not QX, has we it last strong. it well have We slightly year. did where And conversion the be trial prior performance quarter, gross still continued in vehicle-related a higher outside was to grow churn DX improve first adds us driver point, yes, by single starts. had helps going the to so the and of which We side, of conversions versus the XX,XXX vehicle-related is higher performance biggest obviously quarter funnel overall, your based to first as and forward. was be. But starts mostly quarter still trial

trended for consumer of nonpay So on in result right and about as time at nonpay quite the for a softness No of voluntary, now. of the which change behavior. some any X% we've rate indications side, sort

one sequential plays sales. always, the as of the other on improvements come We related really through and we into yes, of be starting to what going as the out with it's vehicle the associated of analysts year, expecting with this be of rest in then new sort as the XXs. And conversion see high where course, car are app improvements SAAR marketing on to the and with timing year. trend rolling about we're in course the So back in that. half. improvement the now, Right somewhere good It's nonpay. And that about, the in strength factor we year, of should improvements at for used third-party we're in relates feel to to and that, are certainly voluntary new and the really in year-over-year car new auto really the the it really line move streaming greater we the late where year

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

question I have picture all. one big just for you

I knows think predictable. call a a of growth, top of reflect your another lot isn't could But that the a you line. of everyone have business, sort cash on to great multiple flow, great seems there this another belief that reaccelerate of initiative leg sort margins

question sort sort best action just of different to that is you other is, really a something my there explored and lot keep so potential empty potential about guys feel for could is that market of up sort things and of bit the of generating and launch Or And get animated course do you've engagement might like of the come the significant cash? deep of a the line free sort app, be acceleration? top

Good.

appreciate I question. Jason, the So

do change about than demand. terms investor number taking just sort have broader in of marketing and and the demand that to guess. and we reinvigorating the to that this are of base Liberty can to would address working we're perhaps We're this. story. But a the us and capitalize clear So content still terms multipronged business equity to simplified approach underway longer into to gives it's with rollout platform especially across effort And the we've new the flows. But things, successfully end-to-end say our we'd on the marketing price, about a of build our audiences looking tell structure improvements our marketing, been of on I ability two through have personalization opportunity hoped packaging. to and we key streaming of real a to but opportunities growth forward I pricing really side, in control, believe have really these starting in assumed products, get timing, across as transaction, our reasons and discovery probably clearly talking no we it's the execute on

also, indicators offering, a we're the content bolster talent. And of On awareness with to a going have lot with and to also the to with content. obviously, of take a seeing fast also seen, clearly but And product feature launched as we then we XXXL in parity key platform exclusive that's as continue app retention And have early. longer, really and improvements now have rollout to the brand and content more terms helps real our going just there, car, in campaign. acquisition that in more really and it's having ties you've side, we're new driving that place. podcast we with in of exclusivity which some We're recent positive there. But

content. And a we've then it showing broader packaging, there, the to talked less points at younger our packages with is is But on of cohorts. set demand testing with early, need and lower create and early lift some pricing and about price potentially capture

opportunities, And could we otherwise. have come that, or of with other interactive adding It's to demand areas think, with of our maybe more still capabilities, So early, are packages. course, certain exploration. I but drive do product to even Pandora there future potentially

potentially cost free ad And supported. looking obviously which then even side on the low would SiriusXM or at be offerings

through the I the think year. this major things are for this those So pieces out get as in transformation future to we of look

those qualitatively, Can proxy you I laid just or that are you your that much? the forecast, a numbers of just of lot sort say initiatives out embedded In follow-up? Liberty would you talked in not just ask one with that about financial filed

Yes.

this guidance put anticipated talking really been for provided but baked haven't they're 'XX that guidance we into forecast, about. the our the As for we've things we we certainly yet, together specific year. Obviously,

for the you when as year. you initiatives Okay. these think Jason, it that transform XXXX, we point. a lot of Yes. as and I at a mean it, in and say, at We -- when numbers we look had I just that obviously model look when building we're changing there, did at -- I would this

but we got this So directionally a obviously parts the right year. of lot they're moving way,

One it's to the monthly U.S. X of an of just we about. When audience you what downloads. I'm add, over podcasts look million other thing excited at have, XX

models say. you've heard and matter, Jennifer So others always as business

We continue is look saw at then the balancing taking to a fulcrum meant large the and from where behind that between we ago audience years paywall. And paywall. point Howard making taking what behind content

analyzing consistently the younger that at balance large audiences be audience, behind we those podcasting, we're large where So paywall. is. in But of that. and there is there a a some position any out have in leading large a could And audience point,

looking So just we're monitoring it to is but road, down consider. and it's something something at the

Deutsche Bryan Next from question with line Kraft Bank. is the of

nice wanted in also to it if Can you of look CapEx press category to you cash in seeing whether about the release, AI you mentioned could. and then SMBs enterprise the you CapEx, what pulling that seen business? level And as guess, temporarily assuming a my your bit see normalized terms number? first, your would about value non-satellite and SMB there and to question CapEx Pandora the the free Voices you you're you've of off two, opportunity at for And normalized Synthetic today are what how if in in tools high more to other exposure get satellite I versus and to that rebound be brings in more it investors that level is industry CapEx and growth? And have meaningful this whether much out a out guidance we second SMBs. a see be talk strength? And pulling today? I in for bit I CapEx the future advertising year to potential as expand a a for Tom. could talk the obviously in platform. flow, Tom, Can way a

Okay.

I'll So on one, first the on start just touching advertising. start the

advertising and over look X%, for is cylinders, the the streaming is podcast We said programmatic, a at which time overall. When is higher as on to advantage quarter, by XX%. us. us network for And quarter, first This the streaming quarter, up choppy. the RPMs said, a the we've our So been to strategy of great things XX%. of side ability demand has the to And podcasting we've drove everything had and it, ended that up the a also because demand the X% Obviously, by about but increased always on the you up, investment of contributed podcast for couple hit We side. advertising hit and up demand our about it lot the leverage across quarter. it's properly.

of who's So into the the quarter you to new when No but as as industries, look of second the significantly positively. advertising, signals heading factors say advertising, changed early part quarter. contributed we first at far lot a would overall I positive that continue of see out

there the that's advertising. Is I advertising? on anything So missed

and based where really years, Bryan, a Yes, in few [ there's the last on seen, fundamental more I shift just I advertising, thing coming -- with over expectations. is think, audio. fewer of more supply right? There's that interesting we've been just process, we relative think consumer the had have it sort just looking mentioned, plays we but with platform, really fulfill time. the quite on in played the well, buying in we've of is Tom the ad-supported and streaming we're available. And earlier targeting on And last sort introducing minute incredibly advertisers what and more need programmatic. really competitors and as well, side still ] And more later and really later, of side commitments extend it to in these capabilities to some for upfront in music do place especially to in terms on buying across And the our other the more podcast SVODs stages for peers programmatic, are at

more as relates strong really think and enterprise, versus And then I lot you'll solutions about more I sort of it offering to without so able more sales what unlocking programmatic, it that get a and and kind audio continuing. And and on into solutions of and been we've those integrate And the to now sort to their scale always assistance. had SMB side. it's allow of campaigns we've of lot trends think advertisers see to on experiment of business SMB smaller direct plays but do on come self-serve a

this I continue you opportunities to to on see grow do CapEx? so think touch in want And we area. And to

Yes.

payments, CapEx, principally So was lower because CapEx CapEx of -- Bryan, you quarter, of on the side. on at on as look first satellite principally timing lower

the the CapEx XXXX, broadly at So We our CapEx on of outer XXXX, have in will QX. years were at of to expect be around million. we somewhere we that for level lower highest more slightly XXXX, still $XXX look believe CapEx to and

Yes, it high. more. could be as Probably

I we our those we through do opportunity end-of-life few want side. side that the CapEx think through we Obviously, to the got guess, through will phrase, in satellite have on replacements make years sure I -- that next we broadcast in non-satellite thing business cycle we've non-satellite to the look, a of other, But and roll launches. terrestrial CapEx. for get better do lack as we CapEx maximize the the on need the make of invest in to that rolling is the

making that's and roll next we that into to and the we're legacy systems, sure off are business going then migrating And year. continuing to transform

of we'll some And year. as as a go kind Tom we higher we be in this to non-tech to CapEx next do in terms CapEx, overall levels see while so into said, high expect, of continue

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

I efforts and guess two questions. to go advertisers. on on can one One programming. have Obviously, have we programmatic advertising your really in. kicked I back

set is share podcasting plans? had to -- time. Just with this how replacement [indiscernible] you think And thinking of But if have other doesn't it's you of you in contract, tools? And it then maybe -- And your at you next also of about I Stern budget in more question your Howard initial terms the programming? different programming, broadly? a how end on marketers wondering back, he come how and long programming audio would digital of impact terms returning compare have in which how conversations and his year? are how is And

second let your to question going Jessica, cover I'm first. Scott

Okay.

So on Howard.

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you with what strategy You come time. And your and at at a we what of Cone James suited They current mean, be Howard target distinct own others. I audience is look after. whether that and given any love your Andy and they best it's their for Conan, demo up have replacements. Corden, audience, our style bench. and would that not go They're many demo

and continue go that evolve to And so our we stand as content pretty feel we forward. good where we front on

solutions solutions as have programmatic. Yes. we our of quite I others these do perspective, And back an much just we have industry-leading believe, on set not emphasized advertising, as have. certainly from And in

partnerships to Our we solutions that AdsWizz sure the new to capitalizing want technology continue remain their release the terms and make platform approach of forward We side, measurement look at on in serve walled on as really has and targeting with, whether work or that maybe others take it's to vendor pretty open going this. that continued garden. we'll to you

industry push standards improvements certainly looking to industry and for for. continue I are better we and and targeting certifications measurement advertisers think with the think, provides, what I to that overall So and

coming brand and You've more there well. talk tools suitability AI safety heard about solutions more year. Synthetic this as brought we'll Voices, We've clearly us have

are I so quarter, we well I -- just Jessica. up podcast being to And Tom And first certainly think really mentioned. the positioned as here, contributed in it

and podcasting because the together the the a all place, as in those across have terms really also place. on sales commentary on we a not Because service we SiriusXM great of lot other Locked the one audio just We have and leagues, have only sports of to sports in with content, leagues well a but all we like building of out play-by-play solutions network launched On, relationship we're the offering. we're side in bring only

David line Joyce Partners. of Our next from with the Research is question Seaport

like inning if in, the marketing you color and XXXL about could of on is ad thinking in functionality are that there driving a pricing sort later? do right And opportunity terms what via you of year there? and because the rolling competitors any provide more what what you're monetize this Is you you in that been Just versus say there, view the then on monetizing focused load is strategy to have you advertisements you've what thing. would advertising where your would there? Or up seek it terms new of engagement of a out

advertising really It's targeted and Sure. in still It's early for its really XXXL. infancy. it's David, really --

platform. that could to and music content broadcast offering, ad-supported Of we more and in free million the at. now, in opportunity road we stages. audience. But terms insights volumes X haven't true the give us terms right and certainly to over do just ad-supported want in but really channels, this something are We just terms grow far. early in vehicles up volumes. it's a on little offering testing anything customers an we on XXXL or of on But across as the it's year talk. But it's advertising around reduced build here we think opened some have having but develop limited the of in ad. today, mean, more about very we're mostly I ideally broader XX looking offering -- But self-pay would a a XXXL it's doing I implement XXXL targeted course, so more And fewer have to a million of some somewhere volume,

the be the say OEMs, and control opportunity out have right? just is three in improving XXXL in announcements personalization It's rolling doing discovery, XXXL we're the with the continues more to to really app. more in providing market, And like the you've features, get a is have messaging, overall more volume. ignition with Subaru, feature you've really in-vehicle which implementations of piece, seen low in which recommendations, second we as the that market AAOS and which including Mercedes, So are as car, prongs, set I'd on there. Hopefully, real market strategy customer more experience to full opportunities, so helps have the in and with continue parity, just building we seen, starting in

we've to to is we encouraged are about then are can really the really out and second pretty generally they're year higher. start So the car more of course, customers. awareness deliver personalized where across building this still which because then third And the half and personalized in will that's going really capabilities marketing is people And start to awareness, that And and right? a really the features to about Ford, part rates low. And awareness our that is in-car non-XXXL, campaigns XXXL to be than expanding what we're them, Nissan launched improving marketing AAOS there. know significantly come. And higher in of in come basis actually on Volvo what and better our to with why key we conversion but use understand the more

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

little love bit. I'd to a conversion into dig Jennifer,

digital raising vehicle signs what an little secondly, And you you're those kind a levels? on cohorts? And see are starting trial within some improving solve So meaningful to SiriusXM? to add update on get ARPU to conversion. I there's conversion bit. funnels of you've maybe ARPU, growth to is, picking and used comfortable do up, And with picking it have I then what self-pay track there a back need you where my subs? And too us net much need that the like of first-time give at And you target to is lot up younger early from buying you you're consideration a conversion What question bit? take been Or over guess for point in relaunch. streaming-only headwind the going kind sounds churns new car on just time? to levels to can a for starting car then is for towards conversion that, maybe of into big this on price we think trying car is with something

Thanks, Steven.

So There's trialers pieces. there's call our retention in-car rates on trialers. for there or conversion then conversion the what two post-trial I streaming are our first, really for and

flows engagement there's full levels. you to early content in-car on what out data couple flows, side on had in similar to and test the so And path. It's to journeys there's maturing early last little rates. But in just those a part building based longer our personalized the again, out subscribers level that current our full this of then streaming take journeys real behind. have tab the when indicators been full give of of to of the then, there we've look to And than a time, time second we're to feature personalized of been above belief for platform, after is listening in-trial we've we December a post-trial marketing those back indicators, even even and again, without months we higher streaming, need to couple continued great to the in were we improvement to build too January. real marketing the that rolling side, started the since steady the indicators And engagement, expected these very for probably is in-car leading the in and in is, which when out months now a late of taken expect more seen where this we releases trialers the significant we were look, in engagement the iterate cohort the done of improvements new but right where leading to had we the we where efforts the low a the look kind and great streaming there. And next make we a solve which side to out on for of these it's have is first last largest that both part flows, of new sort phase the strong just of scale a over some months, solutions. But us trial of on solve in of trialers. some have there's we the few couple of we've improvements came to launched, that would there For in listening unlock. going usage. early move few and stable we those rolled improve see and and and listening year, we roll these in lot and we're of to MAUs. last the gaps app to series it's we say -- personalization a out made get these for to engagement. And before of work X-month over the X as to listening the retention. And who content experience, streaming obviously starting where I'd able we're above We're retention. And at slow You many be streaming sort for weeks, X we've launch behind cohorts of capabilities, retention marketing year. early leading adjustments post-trial within And months terms It's indicator to We've get to are fully business a obviously able to on months which of we're of start far real we starting And generally prioritized to concerns of lot terms December. And a customers in are on

impacting earlier, of to of there, younger that not that. trialers clearly, may up case, be. have where -- So talk like a streaming that we in-car I in for we But really conversion in a growing let in-car lots overall. But Tom see how month rates today, necessarily have we streaming trial and taking to product. But some packaging them key on any really cannibalization. are, so not with really signed on having instead. about trialers ARPU I terms would in certainly more mentioned -- about think from want the seen in-car only and minute We expected to ARPU We've up generations. pressure I'll the pricing side, end don't a is product that to younger That come them our $XX

in actually why more flows, we doesn't our to being see into coming include customers cases, it as fact, In car. the streaming confused

which in audiences expect interested I integrated strong that of a think and is the a to and So a another, probably car, more our optimize into streaming-only would for there's I includes lot have two it's lot experience of may ultimately as we those. And opportunity One premium segments. growth the well. be tend looking to probably product. streaming younger And be

So conversion just rate. in-car the back to

conversion it And the So be in-car are it's growth. rates just side both the will for that's of personalized to to we the place car the about year. them longer of part used core side. going until take latter and in in-car out in because to of new to marketing the build not I future still talked all takes terms in and -- things And build flows, those business the need

a We streaming. learning lot are in

they're gives other running that ground impact some of I most we're prioritizing the the definitely proprietary believe us of to the systems think in-car the we off once of can there. So business marketing But we get over parts migration because the opportunity metrics.

improvements see around rolling to then later expect those through in conversion much year. And wouldn't the so ARPU? I until rates And Tom, of kinds

ARPU. on so And

where had March. $XX.XX. So last had which there on a year. We're plans period we We year-over-year increase the price a was increase price last basically principally full driven is QX, lapping by in

a mix year, the and overall looking at packaging calculation. on full the contributing factors So slightly we're on. but be But year, going little well the our lot ARPU bit to we'll as the we and the we other year-over-year. But up of as to obviously see initiatives down mix, for pricing promotional obviously, other a through the streaming have depend continue, will it

car about this testing look a raising as there's pricing to that expect in incorporated we're opportunity. But go do opportunity to we packages set the believe demand broader year and we and -- price about sorry, and all at an prices packaging as year also packaging front at up pricing we've in-car continue and guidance, where talked this next the our of lot a we for our would on to structure. into open believe was in a our of and packages, year. continue more that earlier that And to and in Yes, that isn't talked fact that

Goldman The is next with from Sachs. question Stephen Laszczyk

Tom. one Maybe for

in Is remaining far? on to pacing $XX then Could perhaps the against most been as progress there just you've executed where you next think about or closing? of you You make cost you should about just coming detail quarter. anything savings quarters, we one. into more can Any how then timing the efficiencies transaction the us the so few And progress secondly, say a think in the that? And cost the update able about would million be Liberty housekeeping great.

Yes.

a of Stephen, So couple things.

we've So outlined in savings had $XX Really, It's -- is about our to on the yes, QX, across been EBITDA script. what been on principally we million trying focused maintain we margin. a the of areas. of that variety

some some around margins. savings optimization head some did So in investing have we around we business. back in podcast programming and QX, our count of But of the the are and

$XXX on savings year. of said, continuing are worth the as trend, So million initiatives we our this

margin throughout and our the going And to of we going the we're lot the on to as with continuing the QX, XX% being said, and We optimization the cost between going there's through. net-net, saving happy continue look transformation a are initiatives year. reinvest. for things we've to at we're were But

the Liberty for planned is Liberty million. And would the broadly think, currently I QX. that's on then still early $XXX the transaction, I So just say transaction,

from are that. moving get can. there's We to we trying have we change no pieces, Denver close as far Obviously, lot a update in of as as to any as but soon

to first financials. quarter we're Yes, I'd just update say for going

said, timing. process, that's Tom and the of So as still obviously part But factors QX. expect the into early

from Our Stanley. final is Mansson-Perrone next question of and line Cameron Morgan the with

expect that really, positive year-over-year. gross Pandora. those Could for just today each you of to Obviously, on on Yes, about what we should at But over the maybe of how we businesses there. anything touch the I improvement ad the trends, whether more kind that helps music opportunity just beyond if the margin ask improvement what's and broadly, the to driving unit magnitude should year-over-year between is margin growth and strong performance off-net economics wanted and trends think continue? And of time? those then

from Cameron, monetizing to is would improvement SiriusXM. leveraging has create best different optimization and lot higher side the the overall, not and margin, So there ad But providing the benefit the right cost demand out really us the the due now. margin and what's a to products the changed is there products the corresponding out against that putting

to earlier, as mentioned side Pandora, growth business really rates don't which I the lot on opportunities side in on And we about to great $XX, margins prepared to that a continue see at continue of business, unit the Yes. of and off in and for to I'm platform. of necessarily how reported economics I'd Tom know we monetize -- programmatic very say even for and terms we for improve the talk the RPM podcasting overall, solutions. terms of really ad and obviously, healthy there, But there's have strong of sell-through, stronger on there. And look dynamics on we

coming the to Thank Thanks, you. in course. of speak everybody, you for weeks, participating today. We'll

concludes today's conference. This

lines thank you may for your your time, You at disconnect and this participation.