SiriusXM Holdings Inc. (NASDAQ:SIRI) Q2 2024 Earnings Conference Call August 1, 2024 8:00 AM ET

Company Participants

Jennifer Witz - CEO
Tom Barry - CFO
Scott Greenstein - President & CMO
Hooper Stevens - SVP, IR, and Finance

Conference Call Participants

Steven Cahall - Wells Fargo
Jessica Reif Ehrlich - Bank of America Securities
Barton Crockett - Rosenblatt Securities
Stephen Laszczyk - Goldman Sachs
Jim Goss - Barrington Research
Cameron Mansson-Perrone - Morgan Stanley

Operator

Greetings. Welcome to SiriusXM's Second Quarter 2024 Earnings Conference Call [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. Stevens, you may now begin your presentation.

Hooper Stevens

Thank you, and good morning, everyone. Welcome to SiriusXM's second quarter 2024 earnings conference call. Today, we will have prepared remarks from Jennifer Witz, our Chief Executive Officer, and Tom Barry, our Chief Financial Officer. Scott Greenstein, our President and Chief Content Officer, will join Jennifer and Tom to take questions during the Q&A portion of this call.

I would like to remind everyone that certain statements made during the call might be forward-looking statements as the term is defined in the Private Securities Litigation Reform Act of 1995. These, and all forward-looking statements, are based upon management's current beliefs and expectations and necessarily depend upon assumptions, data or methods that may be incorrect or imprecise. Such forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially. For more information about those risks and uncertainties, please view SiriusXM's SEC filings and today's earnings release. We advise listeners to not rely unduly on forward-looking statements and disclaim any intent or obligation to update them. As we begin, I'd like to remind our listeners that today's call will include discussions about both actual results and adjusted results. All discussions of adjusted operating results exclude the effects of stock-based compensation.

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

Jennifer Witz

Thank you, Hooper, and good morning, all. Thank you for joining us today. SiriusXM's financial position remains robust as we steadily enhance our business and establish a sustainable foundation for growth. We grew adjusted EBITDA 8% sequentially in the second quarter of 2024, and saw our margin improve by a point year-over-year. With these solid margins and declining capital expenditures, we anticipate converting more of this strong EBITDA into growing free cash flow in the coming years. In our subscription business, self-pay net additions saw sequential and year-over-year improvement, largely due to strong retention, and we still expect to see slightly better self-pay net adds this year compared to last. Our advertising business remains a key focus, and we see an opportunity for growth as the year progresses. Assuming all closing conditions are met, we expect to complete our transaction with Liberty Media after the market close on Monday, September 9, and we are reiterating all of our full-year 2024 financial guidance. Our leading content portfolio and differentiated position in the audio industry remain core to our business, and we are leveraging these strengths by focusing on three strategic priorities, enhancing our subscription business, driving advertising growth, and maintaining our financial success through continued optimization across every aspect of our business. We are confident these areas of focus will lead to improvements over the medium to long term.