SiriusXM's subscriber revenue declined nearly 4% in 2024, despite flat advertising revenue. The company's new streaming app failed to meet expectations, leading to a refocus on its core in-car subscription business. While 2024 financial targets were met, concerns remain about future revenue growth and declining EBITDA.
SiriusXM reported a nearly 4% decline in subscriber revenue for the full year 2024, while advertising revenue remained flat. This came as the satellite radio company's new streaming app failed to attract subscribers as anticipated. The company generated $8.7 billion in revenue and adjusted EBITDA of $2.73 billion last year, representing a 3% and 2% decrease respectively from 2023 figures.
Subscriber revenue declines were the primary factor behind the lackluster performance, but the company partially offset this by reducing costs through cuts in marketing, business expenses, and staff. 'At the end of 2024, we took significant steps to refocus on SiriusXM's core strengths and enhance operational efficiency,' Sirius Chief Executive Officer Jennifer Witz said in a statement. 'By prioritizing our core in-car subscription business, leveraging our streaming capabilities, and growing our leadership in ad-supported audio, we are well-positioned to deliver long-term value. Looking ahead, we are energized by the opportunities to build on this strategy and continue offering unparalleled audio experiences through our platforms.'Sirius, the dominant provider of audio entertainment subscriptions in vehicles in the U.S., launched its streaming app in December 2023 in an effort to attract younger subscribers and counter concerns about softening subscriber revenue. To achieve this, the company has shifted resources away from the streaming app and back towards its core in-car subscription business. While the company met its 2024 financial targets, executives faced questions regarding disappointing advertising revenue and internal guidance indicating sharper declines in adjusted EBITDA in 2025 compared to 2024. SiriusXM's business model relies heavily on customers converting from free trial subscriptions to paid ones. Witz told analysts that the company expects to stabilize conversion rates this year for certain product lines, such as its 360L, a new premium in-vehicle audio platform with more channels. However, she cautioned that the number of net new subscribers in 2025 is again expected to decline. The company anticipates $8.5 billion in total revenue for 2025, with $1.15 billion in free cash flow and $2.6 billion in adjusted EBITDA
Siriusxm Subscriber Revenue Streaming App Advertising Revenue EBITDA In-Car Subscription Streaming Services
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