On October 31, 2023, Sirius XM Holdings Inc (SIRI, Financial) announced its Q3 2023 operating and financial results. The company reported a net income of $363 million, marking a 47% increase from the $247 million recorded in the same period last year. Despite this, revenue remained relatively flat at $2.27 billion compared to Q3 2022.
Financial Performance
The company's adjusted EBITDA for the third quarter of 2023 increased by 4% to $747 million, compared to $720 million in Q3 2022. However, free cash flow decreased to $291 million from $329 million in the prior year period, primarily due to increases in satellite and non-satellite capital expenditures.
During Q3 2023, Sirius XM Holdings returned $165 million to its stockholders, consisting of $93 million of dividends and $72 million of share repurchases. The company also announced a 10% hike to its dividend, marking the seventh consecutive double-digit increase since its inception in 2016.
Segment Highlights
Sirius XM Holdings operates two complementary audio entertainment businesses, referred to as “SiriusXM” and “Pandora and Off-Platform.” In Q3 2023, SiriusXM's total revenue was $1.7 billion, a 1% decrease compared to the prior year period. Meanwhile, the Pandora and Off-Platform segment saw a 3% year-over-year increase in advertising revenue, reaching $418 million.
Outlook
The company reiterated its full-year 2023 guidance for revenue, adjusted EBITDA, and free cash flow. It expects total revenue of approximately $9.0 billion, adjusted EBITDA of approximately $2.75 billion, and free cash flow of approximately $1.15 billion.
Balance Sheet and Cash Flow
As of September 30, 2023, Sirius XM Holdings had cash and cash equivalents of $53 million. The company generated $1.28 billion in net cash from operating activities for the first nine months of 2023. The company's total assets stood at $10.13 billion, while total liabilities were at $13.02 billion.
Despite the challenges, Sirius XM Holdings continues to deliver solid results, maintaining strong margins and recording a record quarterly adjusted EBITDA. The company's unique content portfolio and ongoing enhancements to the user experience are expected to continue resonating with its audience in increasingly personalized ways.
Explore the complete 8-K earnings release (here) from Sirius XM Holdings Inc for further details.
