Palantir shares slip by 7% despite posting record revenue in third quarter
Investing.com - Sirius XM Holdings Inc. (NASDAQ:SIRI) shares jumped 5.4% on Thursday after the audio entertainment company reported better-than-expected third quarter earnings and raised its full-year guidance across all key financial metrics.
The company reported third quarter earnings per share of $0.84, exceeding analyst estimates of $0.79, while revenue came in at $2.16 billion, slightly above the consensus estimate of $2.14 billion.
Though revenue declined 1% compared to the same period last year, the company raised its full-year guidance by $25 million across revenue, adjusted EBITDA, and free cash flow.
"This was a quarter of meaningful progress for SiriusXM," said Jennifer Witz, Chief Executive Officer. "We’re enhancing the subscriber experience through new content, deeper personalization, and continued innovation across every stage of the customer journey, driving greater engagement and value for our listeners."
The company now expects full-year revenue of approximately $8.525 billion, adjusted EBITDA of approximately $2.625 billion, and free cash flow of approximately $1.225 billion.
SiriusXM generated $257 million in free cash flow during the quarter, up significantly from $93 million in the prior-year period.
Despite losing approximately 40,000 self-pay subscribers during the quarter, SiriusXM maintained its churn rate at 1.6% and saw its average revenue per user increase slightly to $15.19 from $15.16 a year ago. The company ended the quarter with approximately 33 million total subscribers.
"Our third-quarter results demonstrate continued financial strength, and we are pleased to increase our financial guidance," said Tom Barry, Chief Financial Officer. "We maintained solid margins, with meaningful investments that drive clear payback in engagement, ad monetization, and OEM distribution largely off-set by disciplined cost management."
During the quarter, SiriusXM returned $111 million to shareholders through dividends and share repurchases while reducing its debt by $120 million.
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