Sirius XM (SIRI) 31 Oct 242024 Q3 Earnings call transcript

Greetings. Welcome to SiriusXM's Third Quarter 2024 Operating and Financial Results Conference Call. [Operator Instructions] Please note that this conference is being recorded.

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

and Thank Q&A Officer, you, Quarter have to Third to questions President Executive everyone. remarks Officer. your Chief Scott take Greenstein, of join good Earnings Conference Jennifer this morning, our call. Officer; Chief XXXX our will Chief Jennifer Welcome Barry, Call. our from Financial portion Content SiriusXM's and Witz, and the Tom will Today, prepared Tom during we and

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

Such that uncertainties risks forward-looking differ could cause to are materially. statements results to and subject actual

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

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

posted presentation we website on supplementary convenience. a Additionally, for have our Investor your Relations

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

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flow. reverse cash generation, subscribers long-term of are actions the to and driving toward cash market, billion enhance taking million free our the flow are We reintroduce declines excited XX $X.X to free and stem subscriber to in we our and targets recent business showcasing

a introduction goals, of core will free grow and With be building expect began of the we as in-app. across expansion our as to achieve exclusive offerings, our well in-car upon broader both portfolio through power the expanded To interactive value of insights of business customers control SiriusXM drive a bundle, ad-supported premium our set the and to our other subscribers tier tech of full each gained leverage replatforming we initiatives, the these we to these discovery Pandora the of content and we've last and to business an units deliver from year of crave. more the they give our

the from each updates content, ongoing how evolution As share maintaining our strength in enhancing business, business objectives key and price business optimizations. illustrate of we to we subscription of to our business our continue advertising against building with our measuring financial are making will and across progress our we technology

we pleased third from of Jumping our and still to year's into expect an slightly than the we are third last XX,XXX have last better additions, performance XXX,XXX improvement year's. net year full subscriber self-pay quarter, be delivered quarter, to

Our products, advertising shifting revenue CTV lower-than-expected election podcast the a than new lower of spend to truncated cycle flood inventory. a with advertisers market, demand softer entering towards due was supply and performance expected,

And revenue. ad a $XX lowering revenue by quarter fourth our as guidance impact also we to shift this result, expect We are million.

support aren't business we advertising potential and our the numbers, with confidence our company. I has in it While want to these reiterate happy to long-term of near-term growth the

here new to its and next Daddy, we where Her out SiriusXM Cooper's was seeing biggest past offering, enormous ad from year. early positive market the momentum our including agreement our flagship, the with “Call Gen opportunity and Alex had network entire new millennials drive months are coming bolster already programming exclusive Unwell and quickly, with selling few presenting the see Alex in from to subscribers both sponsorship network Unwell. The Z. the We resonance among strong podcast of One exclusive announcements with

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terms of seeing and are in politics listeners listened. news of double-digit We in number hours and programming, percentage increases both the

This aisle. both former Nikki from Dylan UN Ambassador, Z, voice Douglas, of and Gen quarter, we providing from shows the new sides for perspectives launched Haley, rising political

And quarter-over-quarter sports lineup, expert now listenership Jimbo commentators Belichick. including legendary new Bill introduced and coaches, we've underway, rising football our season with and Fisher football the into

role to we business across improving quarter, discovery. experience a of released focused updates continues and series our podcastings expand, As to the listener enhancing our this on podcast app,

to features our podcast see upticks audience and customers in as continue allow core better our both listenership These segments. future to us across we growth current serve and

also from display, and our in-car even vehicle launched sign more features as such allowing feature, on it for app the download into new to We them which makes and content to a demand. seamless access subscribers easily

of rates leading few new car higher trialers. these listen the show trial. customers last in results scaling Over early are to customer journeys at personalized our journeys began and we to majority Initial new our weeks, the used

first continue number to our some key the addition, days evolve the in journeys cohorts. of and streaming are driving an month in for active In increase

self-pay in the retention trial these improvements overall in be for satisfaction. customer drive life of conversion, throughout business key sustain to to will indicators for All and and it critical us leading order the and scale cycle increases are and these

subscription This we the to now program Toyota, with X participating. of quarter, and expand addition wholesale continued we our X-year have OEMs

this ordering to automotive encouraging, for new as results added-value additional The vehicles as said of driving be trials of while provide are are Early sub point-of-sale in our picture This used that ramp with some up. such in dealers subscription this can subscribers, where this quarter. Podcasts+ programs streaming us and contributed help showing owners to initiatives to identify our growth and subscriber feature. at performance relation same car momentum initiative interest initiatives program expanded our are bigger positive our

look and with in-car As value out our structure. this new new packaging pricing roll we to earlier to customers, build month, began we

pricing and both audio streaming begins Now service a competitive compelling for price for only strong and other SiriusXM in-car subscriptions makes complementary enthusiasts. at that audio $X.XX, with a

flexibility of $X.XX subscribers, talk for app our and offers in-car ever before. every with sports, the the music the purchase For more access providing subscribers and incredible on add-ons price car to news in channels ability to one point the than with

both subscribers subscribers this fans allow advantage who and This and to be listeners price pricing have listeners our us within tailor access for generations may package which on left These been away popular by enabling expanded to to includes price-conscious our new our help believe attract and move themselves. will for subscribers premium all by the to by of greater personalization greater offerings. discounted We accessibility across to from content, behind as platinum take updates packages and demand, their to up for which into relying of broader become simultaneously, interest help budget drive support ability families younger promotional our adjustments. devices provide and introduce X parent churn all the more features on future packages. stream short-term and content to been price plans, their should We've artist and instead subscription also features reduce pushing enjoyed most additional stations allowing

who to back this customers And subscribers well Walmart X our continue this announced to months a dedicated did to customers month, providing service will next not of brands launched provide new at our no our be each trials giving the prowess highlighting collaboration providing their effort quarter, And customers. platinum agreement the in also with we an cost. as of fans. both as trials to phase extended to Walmart+ of even of to win their Walmart we sports service, extended value convert, more of SiriusXM ESPN+

advertising Switching business. our to gears

factors second audio impacting digital noted, in ad our are the business As several half.

where investing targeting and recent with up data our by inventory. financial we opportunities responding Unwell strength clients. And new new and maintaining to with optimization. we are podcasting, ongoing and with our pursuing collaborations LiveRamp, audio our committed such are the better offer for measurement and board, can are with agreement enable for GroupM stack first-to-market We tech which as industry ad opening leaders, clean room within the Across agreements SmartLess in business

and tools We scalable is across are exceeding automation customer work agent our already AI advancing expectations. our our AI and business

our technology business-minded us opened allow our which product Irish center, quarter, a this tax-efficient investments technology will in we and to way. Additionally, manage

both long-term cash closing, subscriber continuing disciplined financial remain our free in In focused and path on success we to growth. flow a approach for our and putting ourselves and

capture the to consumer market, value retain quarter growth, Simultaneously, to pricing our the are drive now and long-term building spearheading We are and opportunity ahead. base. quarter, initiatives around each are we programming rapid solutions subscriber with and our excited and in sustainable for new exclusive features growth our demand about enhance excitement we

over share the And call will to pass to the on I Tom now more financials.

on morning, good will and your Today, more be I'm and excited operational happy performance, Afterwards, our and walk our through Jennifer, milestones you take key details third financial everyone. you, Thank share some questions. I highlight to quarter outlook. to Jennifer

decline $X.XX a year, to period quarter, SiriusXM notable and compared a by $X.XX X% decrease the $XXX driven in of Self-pay primarily X% XX,XXX the revenue revenue billion, last improvement to in same compared advertising this quarter subscribers the of driven a billion, SiriusXM primarily increased same X% quarter, million. churn. In lower to a delivered revenue by by to subscriber drop third last year,

over paid move to trials an saw the will company expected certain we of Additionally, subscribers from coming the from with new benefit OEMs changes lifetime by subscribers those profitability maximizing These promotional free. of car paid agreements decline as vehicle OEMs. new the in

decline the at Turning finish We $XX year-over-year to saw advertising million million. to $XXX modest revenue. a quarter

lower softer highlighted, Jennifer conditions, a increased was cycle election market to due and shorter competition, podcast decline inventory. the As

However, years launch advertising network. we ahead. supply, We of including saw with positive are outpacing investing and podcast podcast SiriusXM Unwell on technology the X% actively the for arrangements in distribution fourth position our in demand revenue to momentum increase quarter the a business in

see a solutions, integrating expanding ahead, social of video marketing drive ad by our growth. significant a capture we Looking XXX-degree opportunity dollars larger nonaudio to to and share

subscriber softer year-over-year, by $XXX million cost margin certain stable revenue, EBITDA EBITDA Adjusted of XX%. personnel-related in the offset quarter savings adjusted produced for services, a X% This G&A by expenses. by of decreased relatively driven and of

remain We transformation maintaining and and fuel culture of on longer-term the in cost full Most savings XXXX. to target our reinvested business these the disciplined year a our being track are savings goals. to are achieve financial firmly million strategic for $XXX

billion, $X.XX with year-over-year a down ending X%. decline our our which revenue quarter. third $X.XX SiriusXM Starting an million, the includes quarter $XX reflects and This Let's revenue to into segments. the segment, self-pay by $XX.XX on in $X.XX of declined generated compared in revenue dive streaming-only of X% rates subscribers This the In quarter advertising year. increase plans. the of promotional in $XX.XX deeper XXXX, and subscriber of total ARPU last at billion

our As furtherance subscription efforts value of improve goal. long-term subscriber of designed adds Jennifer being to revenue and in options all packaging new to and now and on mentioned, from future driving are the demand recent focus rolled rate our adjustments out pricing support this is overall the

to were $XXX Gross XX%, costs the last to our down a year. SiriusXM margin million $XX gross point million a to million, compared X same previous reached profit decline percentage brought year. in Subscriber compared in segment the This period the acquisition $XX drop. X%

Off-platform Shifting declined users subscriptions. revenue at decline, a Pandora tied hours to driven among stable Segment year-over-year flat while monthly hours. at XX ad-supported Pandora to listening million, revenue X% segment, totaled on remained billion, rate revenue $X.XX Pandora was by X% in increase million. $XXX increases our and average a X% $XXX to This sub ad relatively the remained by ad

the items X% podcast talk the get of housekeeping existing Liberty transaction's about deals. the profit and our upon and close in $XXX like impact portfolio free that was Pandora on increase impairments of and a a gross the we monetizing refine There of transaction, Off-platform point better Gross are to year-over-year, at are including to seek million, I'd XX% at that related improved to as Media of cash couple improve flow. reflecting and segment an margin

sustained third an transaction goodwill the In lower completed Liberty prior the to connection on close with heading converged SiriusXM those tracking the Liberty price of fair in price the of with as transaction, assessment share value company's into of the of Liberty the the share close. based stocks quarter,

impact the was billion noncash noncash charge does approximately or $X.XX cash flow, As a result, operations company's a charge liquidity. recorded. of impairment not This ongoing

to cash This the $XXX to approximately includes guidance legacy million billion. close, free Liberty adjustment fees, an Additionally, our flow which year-to-date cash in $X transaction's deal-related following we incorporates post-close revised additional for by costs, transaction the been fourth September tracker operating this, and has quarter. XX, allocated paid million Of additional and in Sirius the an $XXX expected with interest expenses interest approximately $XX costs. million

for $XX with programming flow the $XX was million costs, increase transaction-related elevated quarter lower from cash payments and last Liberty to approximately receipts, due The cash taxes by partially offset Free along decrease was cash higher million. third year CapEx, paid. lower in

our to investments at broadcast on of the $XXX level a and and similar our in about will expect by to CapEx year at million. year continue spending $XXX Looking tech new upgrades this infrastructure. side, to continue non-satellite we driven platform repeater continued next This million

a million We before ] anticipate the CapEx spending million this XXXX. $XXX approximately reduction and steady a expect way, in in CapEx seeing decline non-Sat by XXXX, million we of in Along satellite Zero $XX XXXX and in XXXX, we $XXX Starting Sat project XXXX $XX in to [ year about near to CapEx million. beyond. below $XXX in million

adjusted shares reduced Our remember, in our opportunistic while leverage our to first, quarterly economically, mid-Xx XX%. return capital represented on returning our second, maintaining by EBITDA; consistent: regular a with that long-term the leverage posture low we shrink of our priorities business; priority transaction And remain continuing target delever. capital and Liberty investing dividend outstanding our share third, allocation to

to million down $XX And Jennifer the revenue total a third for quarter $XXX to we debt the as $X.XXX guidance, ratio with million approximately paid we ad EBITDA revenue. our adjusted through and softer dividend, to SiriusXM the shareholders closed quarter, of During by billion are XXXX net adjusting on X.Xx. mentioned,

billion. approximately flow However, $X.X cash our of guidance and free EBITDA we $X adjusted of reiterating are to billion approximately

committed shareholders. to communications with enhancing we Lastly, our remain

site, as As Hooper noted, will our which to improve presentation to earnings added continue we an evolve our of transparency. to effort IR part

financials. also are and further our ways performance We More disclosures exploring additional to enhance come. to around operating

let's open and happy questions. Operator, will the I and to be line, Jennifer take

Kutgun from first And [Operator comes Instructions] line the ISI. with our Maral Evercore question of

to I see efforts on down bit certainly time? side. you're go you pricing new expand your Just subscriber encouraging expand the to opportunity and the risk one, after existing it's on to the over the more TAM subscribers a and hoping your how was could looking pricing packaging base balance versus of

Thank that. have just which top this also price convert starts but trials not strategy a have music-only Kutgun. for And We have lead on yet. lot add-ons will on trial impact and out on the to quarter, of $X.XX streaming, that Sure. we roll $X.XX the promotional we're will new roll the starts they seen out but current series to a that point, means plan you, We're a the of at price which the selected $X plus those the in the of in-car actually packaging of business, of starting pricing numbers point. starting and side

start point. initial that into the but results post-trial we encouraged So year, of going which see persistent transparency lower that, consumers shows that we the the to testing, that much saw price higher value there's by is promotion, impact very retention because and next more lot are a in after we'll

new a to our place. we've of to are that, a on going value pricing features, Now that these lot or new subscribers packages have through in do content, as to impact enhanced pull this it's lot I in cannibalization expect whether don't already to roll trials. of it But access through started order we have levers and ahead through rolling manage of

the this of Howard, sports programming at streaming adding live listen So Tom at I same adding and more better instance, moving but earlier, our multiple well around putting in -- stack broader some package, the packaging people with places so as our time. concurrency, the for log-ins in top that and in as mentioned down can

this we'll believe do I manage So able very to be effectively.

a have that we those revenue to the think are streaming-only market, plan audiences. than differently. our as have very focusing price opportunity in-car are I the you optimization the streaming also to know. increase strategically very by We continue And audiences overall And on $XX different choosing segments

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

There's years. is lot content. hope mean I you a that which you -- added one Scott. last talent, on And for several name This big in just there's few the just going but mentioned, I you've to over been podcasting

up. year, comes next contract think I Howard Stern's

your Call overall how And upcoming just then So Howard's on talk about division monetize, any How you strategy, profitable could Daddy? contract? be? can preliminary can quickly podcast Her you thoughts this

the podcasting take part. Howard and We'll first Okay. then

podcasting, the a and digital to advertising a always that. that was as on all So to of was mentioned went shrinking Podcast, that advertising fourth getting on, supplement demand, point we're there strategy our recently sales ad digital earlier quarter. business the we for fastest-growing we've as and with as mass as of seen the audio

time, settled bigger So rep not into lot a had at the ad of shows the deals.

those to So would mass, goal fund the get was so business have advertising the a it. and critical

done job we company. we've pretty in as good a a monetize showing think I that podcasts can

goal, Then and on to as was deals. mention those calls heard podcast talent, you've other could out content look come for of the me the that next

content did built So the each what in amounts, in, at or at of Apple. micro deals subscription was to SiriusXM we exclusive in in we test increasing our

interview Conan Edison has channels And year. launch given SmartLess of Howard it had we'll now first much major as our a got new quarter. O'Brien early has than the us events, you Unwell, content. to ago. know, listeners according this instance, starting even For X channel to month access earlier more with the subscriber in

resigned Robbins show. weekly with live a just Mel

to of at look obviously, what the to in business. subscription that make might with at that part. goal sense go directly figure And into behind data point and either or using going out we're something paywall, the continue testing So all in to to our shifts

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is to and start. already really our is SmartLess feel of monetization off a those well clear. where is The go. ahead good great Unwell projections, we will

As talent. for group singular pretended Carson just or those would replace simply No Howard, one Johnny retired he's were when them. that the They on a filling in others slots. new

Howard, he hope So we continues forever.

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

net was I give on if quarter. adds more the of First, could the the us self-pay complexion you any wondering just in color

promotional the additions. and about the subscriber talked streaming You

on this subscribers at total streaming think all we're point. net adds something or focused I is

like wondering just customer engagement well on did looks was give what cohorts? the you could if us more maybe as how any I So those as with those information

in-car on-demand change margins. those think to that audio, of some the think and streaming what that how music continue But audio you an if amount functionality. would experience product to of tools you as focus I an there's opportunity about product on the streaming the the Jennifer, ship the was experience just to as eventually might having wondering then And about and to think wondering I you in competition you know streaming-only be? evolution the addition

year-over-year be Starting the with third still and And I churn. we're with largest the Steven. net Thanks, adds landed Sure. pleased really quarter expect total. second on performance, to half the lower positive in the think we and was contributing in better quarter in factor where third

automotive conversion offset seen volumes, helped also rates We higher lower year-over-year. the which saw we've

this bit. car And you highlighted, would grown to conversion year, to Our that a continue. I as started and on we rates expect new side, the have stabilize streaming have subs

are key to for packaging to the just initiatives we because of roll to demand the time those retention. and would expect take bigger quarter generate and and and improve the think out we're lot marketing pricing increased I on rolling a out, starting personalized

place. key of not the we're lot for really the fall bigger waiting quarter because these different campaigns we But initiatives to into initiatives that a was and for launched

cars. So had others. we win-back on campaigns talked have many the subscriptions OEMs and with We've Podcast+ subscription, about. We've as the we've X-year had older focused

see comments, So and again, point conversion consumption of we early we and see important retention retention. one engagement and on expanding, a to for that when in ultimately set think I that conversion. on side, streaming in in-car so leading continue is to of the and what on are or for in nonmusic engagement, side. the improved content, content most we streaming the including in your We commented you earlier broader important in better have, trial on in-car our know either we're which, content customers indicators conversion And listen of seeing indicators the that of

that key scale very we our trialers. starting metrics trial improved with can So to we're in and pleased them what sustain Obviously, to sure we're early there. is make the those see engagement across

last then on And audio about question and your streaming demand.

us a factor term. big for longer that's So

and identity tech new us to delivery in not car, capabilities streaming So us in things also like is subscribers which make our and in that. and more key and for migrated and the a base sure fully and lot to only and but trialers in to pricing subscriber both flexibility we give platform, features will have that packaging the the launched content

an interactive bundle. will we at look And be able to of platform, that then

growing SiriusXM, ad expect term, And tier. choose over very have would So bundle, listen an we music the the human-curated discovery with rights emphasizing with to SiriusXM's we rights subscribers believe interactive the today alongside you with key song, to basically today Pandora an place whatever a alongside the for unique of have alongside we want of long use we that's Pandora.

that a bundled there, but needs we such services or discover in the and the a from save key co-sell experience are What's experience consumer friction is on listen to to integrated because obviously, way be very song removes them ensuring success to could easy into those it's it that customer a SiriusXM, Pandora the to clearly, today, that rediscover Premium. something and then on playlist the

there So date. with term, to that's focus real over affluent have frankly, penetrated not unlock think our the to a do we there's services on-demand demand very base longer retention opportunity streaming older are effectively and, where and and that associated

question next is with Stephen Laszczyk from line Goldman Our the of Sachs.

Two, if I could.

perhaps early fourth what just audio? of from ad How First, there. market. I about do then some choosing like partners how you you you're ad going ad the out partners little called have you into feel your hearing that, quarter. into bit a that's the talk much within and then the XXXX? And year-end as visibility into your more for you think budgets have much you Jennifer, inventory like we premium Could competing visibility the feel they into on ad ad state of out even head do

on update an us give could you if that? curious Just

approaching between the at the your historical some you're secondly, pricing. called in same of trade-off on X. balancing any just out range the promotional of how the would latest then thoughts appreciate churn quarter, time, towards I ARPU on end Churn and you the think lower but this And came

look about we revenue. X how you levers as these curious think maximize Just trending should to

at start then any other add and I'll it ads off turn to Tom to I'll over Sure. color.

advertisers a I more headwinds bottom and we a of our provided seeing of in of from the some seen there's the comments, shorter inventory. political on certainly, we're a shifting are earlier flood more And context brand and opportunities the on CTV been think to some podcast opposed for we've some changes supply as media impact performance-based cycle building. -- iOS then to shorter funnel

we where our the on investing counteracting is So focus can, see trends, in really tailwinds. where we

X% which was in the intersection but date, and quarter. significant the X% programmatic has our really in about is those is opportunity at quarter, overall, up real X, XX% the seen programmatic So in was podcasting, of podcasting growth small to the up

are content we've Scott and focus to content made. pursue of I -- for areas moves technology opportunity solutions. Tom the on the about think XXX podcasting here talked side. us of some an our There's as broader So mentioned,

easier implementations Desk and the earlier better continue the for targeting working buying Trade to call, on closely businesses. mentioned, the the all technology side, what We've smaller make number clean on we're of the other think, about the with efforts room. then there's And have underway. we just to we're I a in with of done and measurement, to undertaking in -- integrate UIDX. LiveRamp And technology call, terms with a It's we've of recently number

those the areas on. focused we're are So

for that I I think brands building point and bottom think opposed of course, focused we're as return of just into time. to year, reevaluate, and And for But hoping conversion. certainly next funnel brand go at we'll as we Tom... on a provide guidance looking in the

down in And add Stephen, sales the initial the talented the only has on looked outlined group with been been our -- we've we that ad comments, caused would thing is pivoting X% us headwinds those to I being guidance. assess I drove the full what of lot we down adjust and a QX wasn't as is offering our the terrible, factors that we've -- year, as revenue think and our but in

can to in but the multiple trying and is package and there's offering headwinds think was ensure aggressively focused factors on the there, I marketers. the that So to get -- optimal that optimal team we

look As our yes, ARPU, at our was if X.X%. far as very favorable churn, at you churn

that. look leverage pricing and happy board plans. at it you subscriber We out plans build roughly. ARPU we overall, to maintain across pricing very were the $X.XX continue When to our we promotional So with down base. use is the our promotional

I think that, later and as of it or the upgrading. our attracting optionality subscriber by overall as far base it's doing so retaining or and offering pricing periods us gives in makes And our the health subscribers. stronger expanding And

an subscriber our and overall, really work we're ARPU our strategy. obviously focused is say, base. But I So subscriber output. aggressively continuing The on the think to numbers subscriber I we're would on

package I talked plans, terms do the content, to not about, more getting entry from $XX are package think the because of the of customers Tom as not on that of right frankly, point in the the we've needs. and they're pressure highlighted start, ensure a have promotional but their And opportunity that priced with with what meet getting higher premium these Yes. we may on much

so call lower on discounted and discrete and up And our get price leverage and ARPU to to cancel opposed promotional have having opportunity think points these plan, I as more much to the bring we subscribers try them plans. for a on

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

Another question the and at I working could. turning initiatives on also your non-subscribers in-car replatforming. for ads looking Kind various of advertising, on if as such the on

ad through you've streaming do are and kind the of and these expect you market to satellite contributing When all same offsetting the been discussing? in So and XXX that broader and all challenges showing the platform. start

and and bit that any the impact set don't quarter, we're XX in content it's little a we to be engage last And there's I service learn the and customers channels. the not a are talked about chosen reason convert, in small. about with are numbers select We there there vehicles going very set access of if still to cannibalization is small, because a post-trial they seeing test free believe to mode. had have

in the channels. And of there's music advertising course,

So we'll learn there. continue to

more users. time it's us the time we specific going enabled. take targeted on technology Over XXXL ads that at sure to time, different to are ad over can to cars right? listening, leveraging make use consumers adjust to We the We're million that replacement for that's road to XXXL platform. the think build, are I opportunity about probably content an those XX are -- to

in the total year in other key this XX% new ramp next major really have in that, should that starts year XX%. XXXL, launch the And then our up We trial will OEM. following is accelerating car to one 'XX to of year with a over of

roll but out a in larger business prominent that million in as just a technology, SiriusXM access, We we XXXL providing ads to we scale in roll in car in trials, don't subscription where look IP-targeted free the ad the replacement offering can through $XXX to the revenue. right? also know, build So base ad more not starts have we'll and with well, about used it continue I car, ad for do to as much

as long in opportunity continue more provide opportunities. there to we grow as service So subscription is targeted can to these that our

our So well. here, it's in really build ad-supported scale side to as that we're the on a offering how but to take up apps future years about streaming going the excited complements

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

follow to wanted up I ARPU. First, on

kind just holistic of side? past You expect guys kind any color Is in the price packages any still have the of on selective whether be philosophy something should activity on increases. into about more kind every anything the cadence that year heading or that how And talked might we other satellite expect should XXXX? we across of or of

on guys then net to and in as adds. sales drive the marketing able front, you And improvement even year-over-year nicely down were

comment on adds could driving funnel you efficiency allowing So find improvement wondering and just there to you still while nice improvement? what's net if

on marketing the Tom can comment pricing and costs. take I'll sales then question and

other how I more a mentioned we but action We a might it least on take any can our for a there. months trajectory and we before rate every that withhold experience that broad-based recently so price earlier, as few increases added packages for year full-price want customers guidance value further at will to are be, to I on have on

content series features as including a well things, and as access. that's of And

I looking we've are on early for and of terms well that seen acquisition for the we think year, at next that and we so And still plans trends that will promotional the and same face retention. impact bode ARPU, in

it terms how So of will a of trajectory. the things be these Tom? balance out play ARPU in

more marketing side, sales time sales have fair our side, that a our costs sales starting and it's bear at the the had Pandora and spent cost on marketing would or effectiveness marketing of on Cameron, we side, I to analyzing amount is the we've the of on of on and the fruit. campaigns And reviewing the Sirius I say, on looking campaigns. whether think success side

time we going And I data have think on more getting ahead, to more more our more as of year and think we I start we as get spend sales look at spend. from we'll replatforming our the we're information, and effective use marketing

efficiency So forward. we getting, with go happy we're but for efficiency as I we're we're now, think also right for enhanced the looking

participating you call. for Thanks, and in today's speak thanks, everybody, We'll to All soon. Cameron, right.

conclude will conference. today's This

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