SIRI - Earnings call transcript Q3 2018

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Operator

Good morning and welcome to SiriusXM's Third Quarter 2018 Results Conference Call. Today's conference is being recorded. A question-and-answer session will be conducted following the presentation. At this time, I would like to turn the call over to Hooper Stevens, Senior Vice President, Investor Relations and Finance. Mr. ahead. go please Stevens,

Hooper Stevens

Executive prepared good call. of Welcome Chief Today, the joined our our to for Greenstein, management will will and and CFO. quarter Executive SiriusXM's the be earnings call. available Chief Content Q&A At take our be Senior Frear, be questions. David of your conference Jim by President the morning, you remarks, and conclusion to everyone. also portion third Scott Officer, Vice President Thank Meyer, glad Officer, our will

First, expectations or made Litigation I'd is be as assumptions, certain XXXX. are and results cause or depend like to management's to Securities remind to are incorrect be all term could Act Reform everyone forward-looking during materially. current methods that may statements and defined Such the Private and statements and These might data the the forward-looking of imprecise. statements in actual call differ risks forward-looking statements subject beliefs upon necessarily that that uncertainties on based

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

prospectus the As to include Pandora a the may part with the proposed SiriusXM, the will proposed which documents transaction statement statement each with Holdings of SEC, regarding a participants and file of other SEC. on XM proxy merger, Pandora registration Media. comment this Sirius file on involving party intends a and the call, and SiriusXM will Form of S-X

results. that, the of both exclude results advise actual that stock-based adjusted operating effects about results will call Meyer. discussions I'd compensation. All begin, to of like today's we listeners Jim hand With discussions As results to I'll and adjusted the include our

James E. Meyer

for able deliver increase the for subscribers, I'm third today's exciting our guidance in EBITDA we morning were and quarter. With at XXXX in Thanks, I of of I'm think more to once all results good and for thrilled to participating call. with pleased growth. time a this momentum, can't you us and Hooper. Thank SiriusXM revenue the again

highest enabled ever both for rates about the in XXX,XXX are subscribers out to inherent our will content revenue revenue EBITDA better quarter, base total with I'm we headwind and our and apps, but ever us, XXXL, margin, drive million highest attained self-pay a EBITDA new reaching high engagement growth reaching marketing going the subs car billion, with quarter. ever at quarter in for coupling for time. with We churn with in-vehicle position We more and net new the of of expect lineup our our a outside of the lowest our maintaining including our year's attained future strong one at Media, $XXX our $X.XX subscribers added expanded David SiriusXM XX.X solid finish this units, the million continued hearing highest expense vastly which sales third quarter, streaming of to you any financials, I'm even conversations third stands in my as fleet bigger the success. base year. in But next-generation would OEMs investments about by proposed company our through of attained our third similar the with tremendous management. the they ever further of and by numbers about acquisition first million. XX.X achieving a XX% margin agreement equally SAAR our platform We overcame strong in this and XX.X Amazon. to million subscribers Auto we're speak self-pay last now expect Pandora with a level at paid push our thrilled more at driving third we adjusted quarter with impressive the to bigger level

the Our Land OEM and Since relationships Mazda, strong. we Volvo. extended the with Rover, agreements start remain Mercedes-Benz of third alone, Audi, Jaguar, quarter

with the in future planning OEMs As expect, our and well others, you vehicles the we these their might are service XXXXs. into of

and XXXL come. We by love are recognized the in for some higher terms. more many OEMs, commitments receiving at penetration some this financial Car schedules place cases, us prominently to agreeing years buyers to firm in and deployment improved have dash SiriusXM OEMs

security and A progress will approach the XX the few announcements at tangible Next ago back it to half model business, as and on meaningful rollouts vehicle that when XXXX. make brands. can CV deployments provide years cycle higher we expect services you of began their these OEM year, services invest And year. friends to XXXX additional I safety, XXXL unit, doing in in prefer our consumers they us making features progress different be let our a we SiriusXM will a marathon, be into now, we in would not convenience I which connected We see own told automotive ramping make sprint. to as the you

several well and car connected like dealerships. at assistance road. We CV years OEMs which and here pilot is are that be important and vehicles car very and roadside Labs, program services and business. also are months. for recently launched also now of enables live alert penetration is strategy. another Chrysler, already following Automatic last have it's significantly services yet grow paying Automatic in at a contributions now our we any in assess on to Program this a of Fiat are achieving to new ecosystems. Dealer enable offer they we ramping year, distribution can't this deliberate we OEMs, an connectivity aftermarket Several services to strong free way investment cash and acquired how services Toyota, three flow off. from we their Nissan we dealers smart At the free our seeing double-digit more positive including thrilled And premium here, revenue as growth to as as solution remain long-term main six crash This buyers almost This entertainment their

opportunity to We will in their improve hopefully I've encourage student importance distribution a dealers and recognize repeat expect relationships buyers. of long-term model. customers with the a always their been the good

connected Audio the the audio never customers thriving the ours smartphones Alexa consume are ever and SiriusXM devices, that with proposition is speakers, the has It served first increase first service the extremely still well, like our content connected isn't devices a When years, stickier. new in traction new June businesses with out enormous growing our OEM elsewhere, me before. to service Amazon's It's a entire efforts but opportunity a by to to exist me new speakers We and clear in But relationship like like significant drive subscribers is to the following market on and new enable businesses opportunities vehicle. now And grow we population in of well. on and with use actually engagement for consumption also to opportunities not bound In growth found set we For existing clicks. our channel, have easy-to-use through is zero-sum launched use ubiquity XXXX, audio subscribers voice to hundreds to these being created. unmatched it's beautifully. flourish that on remain SiriusXM smart Clearly, car used immediately may via who evolve the SiriusXM's service subscription for we vehicle, Echo we then has Alexa created value interface. the us the are the works deploying on smart opportunities pie to of And an devices of and OEMs. our many winning Amazon's tied devices. improved extending in make for directions. skill let growing. want more our The focused this to and to on position audio thousands existing subscribers our lineup across game. grow apps This of just rushing of reiterate, and with the of as our

in push could allows a existing of a our that lift Us a to car, contemplate car. with And diverse the to is the outside value part service of today to probably our driver began promotion we campaign, universe. biggest owners Home out program speaker smart drive that As collaborating Last new obtain Amazon significant the skilled Amazon audio of further knows Echo like a that SiriusXM. a announced trial we easily we week, knew free Bring of distributor

third-generation our or streaming-only We Access Echo commitments service bundling plans. months free to a are greater Dot or six also All with

more to market want, our and to but We base. want to promote however present to come and Amazon, it dynamic with on them to cross and to a they thrilled want, be easy. like I think working importantly, they people to always just I've and just we not relationship. There's between we're platform, extend with Amazon has to ways company of as cooperating additional listen actively this SiriusXM their are said wherever their service be

So stay tuned.

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focused Big Radio along SiriusXM we've coverage. a XX news will of of to stockholders, For Big us join and sports back we content and The recent make grow now business these talk Radio, alumni to a all-college dividends, Ten has – predictable off the plus company's highly with sports that, after college This way bigger. Ten, the unparalleled with throws SiriusXM channels as Big quarter let $XXX features Pac-XX the Radio, million model. SEC. is conferences: $XX repurchases the cash clearly fans and in plus SiriusXM XX/X more because margins ESPNU flow a to we all, high plus business in Big give Big XX, cash million it's third sports Power conference that channels Big launched continue access and in-depth great investors and and that lineup monetization result dominate its share exclusive channels, nearly more cash of money. excellence we SiriusXM's love, These game that channel, college channels, it the addition is high of and humming of that to and Ten ACC, which your extensive match across collection sports, country on coverage. variable athletic focus the each XX just deliver of programing two and live Quite honestly, Five sports

talented me Let and years continue in we're seeking returns software new and crystal making also this. our our will about subscribers constantly investing significant out future capacity our developers is to or come, to commitment data changing capital for our love. to Nothing hiring but stockholders in content scientists platforms, clear be

All keep and we of do we'll this doing.

bigger pleased were our future of step make I'm to we the setting Pandora quarter, path proposed with company able Media. our of much acquisition a This towards

huge business. Over of has the a a million advertising XX base Pandora scaled approximately built $X-billion-plus years, user and Americans

on two Pandora's versus can data. Number sitting apart. the have listening year, one the business, amount come we contact important taken business and a that about that board and tremendous team across past data better past we've the do many could so is in from concluded the Pandora's sharing Roger the thrive things future. and ability together his will the steps learned By cross-promote platforms for to we've year, Over Lynch of

give link cars the in used can are pay SiriusXM, our we the Pandora and more Pandora one addition, Pandora shop at will XX approval next go most of our you Last the day. are acquisition. towards want get and and way if the vote the and very we with This plan believe that exceed opportunity strong stockholder pencils few the at filed In this you moves S-X, better and next content that of sharpen for combined many trials two a very additional flip about business this Thursday, deal to our or the which later profitable. maybe running SEC over to Pandora plan back in a radio our our statistics file non-converters includes color a the is to of together end to proxy plus We're of million year. there we We conversion expect side the quickly new and will feel our we I truth period bigger, And we days makes year. tell Hart-Scott bit with integration Pandora for that to prospectus few on on people in is Pandora statement a soon. the don't a morning, expired a ways planning one uneventfully. more There that months. as with

expect we of talented speaking of our out to companies resources, that even Oakland would and talented In you on in to for enormous as can will the with a about over higher stronger. content, in let reaching and these a SiriusXM large user what was unmatched had Pandora's with to full to With speed people radio meantime, confident financial I it the me XXXX troves some privilege David. week, am bases Last all continue future, it's be our a meeting, of do fantastic hope data, of board with I while first two I group close the our talk was and shared vast quarter. ahead at together, exceeding expect. Pandora turn the laser of most that, employees. guidance, in It focus exactly technology. new or We

David J. Frear

over XXXX. and thanks the call. Jim. are continued net the churn better SiriusXM of the moved morning, year Thanks, slightly were in end self-pay our radios, produced equipped XXX XXX,XXX we and XXXX this XX% despite today. converting the and a the units. of over the quarter Strength results subs remarkably quarter, tracking a over At quarter. the XX% and adds into year-to-date the vehicles are everyone, Good strong healthy toward year's representing of million up third SiriusXM-enabled for still growing softer rate funnels retaining half Auto prior joining nearly on approximately road in as cars trial XX million country the with all with in back sales the

period. car approximately the used recently rate above penetration basis XX%, XXX Our hit prior-year points

doubles this starts exceed X.X The XX% Total of nearly penetration over over total As up used in where today. quarter-end, funnel cars to over it rate new expect fleet more the at including to than enabled more stood car to million, million match is trial our in X.X XXX,XXX nearly years, quarter than to at the the rates, X.X% million quarter XXX growing starts coming trial trial we eventually vehicle the rose third approximately growth X% X.X XXXX. million. from

quarter, larger self-pay third driven despite nearly quarter rates additions performance rate $X.XX With the of car Total by in our XXX,XXX The quarter Reported revenue effective We categories car bringing net fewer to of million decrease the for the ended and the continued the other of million new X. year-to-date, for ARPU XX.X voluntary in XX% entirely full-year due rates additions. subscriber or self-pay third with in X.X%, extraordinary in We the third those a on base we're the non-pay the self-pay $XX.XX reductions additions, quarter had headwind taking were XXX,XXX, base of totaling X.XXX up deactivations churn grew subscriber New X net as in the paid actually to excluding sub record. subscriber over XXX,XXX XXXX the guidance additions base. about trials recognition to standard quarter churn. third million. declined our rolled used conversion Churn high-XXs were net paid approximately quarter. were total at January performance. million. Self-pay resulting X% quarter a X.XX% for net self-pay nearly churn the XX.X in and year's the lowest was

December's and last CRB SAC the is production. in year's per to the in OEM With $XX, two in in in of the the the due X.X% months new with strength full-year dropped of cost increasing of accounting X.X and a and our was percentage just billion. share new low. our With was subscriber Remember, low only higher year Contribution quarterly lower margin acquisition revenue hardware composed and costs reductions vehicle Total X%, per service cost revenue the over from from increased effect $X.X less change, change, of versus we're growth, resulting accounting subscriber year, nearly revenue to customer third than subsidy the quarter record billion chipset expense the revenue quarter period. X% of total decision. rates, standard. quarter approximately as less or points more billing last lower acquisition prior the $X.XXX primarily than installing of Subscriber a than revenue SAC accounting prior-year guidance an car to install down left partially expense X.X%, nearly a the of radios in and XX% cost the of XX.X%, royalty equipment offsetting percent and all-time cost excluding as also resulting

lower our we as grew continue X% production. XX.X%, time significant million, growing headwind and to lower decision, the is target we to excellent CRB be by as technology drove quarterly last in to SAC new other EBITDA adjusted discipline $XXX lining roll flattish line every the expense record, created the for all-time revenue of grew than sales, to auto silver exceeding margin our automotive prior EBITDA ever. While new an item first out in declines year. and that cost December love the percentage Adjusted XX% Despite sales car execution a

do More not the importantly, investing future. our of in come improved not at cost the margins

to call, services new our features discussed future content, drive has growth in opportunities to every invest core business. continue Jim we and products, in As in

future in billion. new think free $X.X quarter, cash for can EBITDA of the of payment remain due same sum You performance, investment In year-over-year to adjusted EBITDA our guidance our full-year free XX% claims XX taking we to years resolve in into this $XXX Despite an confident previously-announced onetime down this guidance drive our of flow, up third flow sound feel our acquisition in pending Based Pandora which of to item, we in to on achieving products way, the approximately confident billion. growth. lump adjusted we approximately outstanding $X.X the totaled $XXX statutory million recordings. million, onetime license XX% of nearly cash of converted full-year

Third the impacted tax our addition of a credits. benefit X.X% benefits in the resulting driven rate million tax rate change low to million also million share-based XX% quarter. was in $XX to quarter savings from R&D income, fair The the loss from in investment a value was quarter $XXX $XX third third by effective Pandora state grew tax in and with approximately savings, from Tax compensation Act by of $XX million, unrealized tax which associated addition net a to in

rate million the years two second bond to on such XXXX in August $XXX with $XX a and XX the dividend announced In dividend and EBITDA just increase debt cash stands On million of absent full-year on ago. to approximately dividends nearly rate third undrawn had payable be billion. effective approximately quarter, capacity X, of we end we to should in until November, revolver quarter, in October million X million future. while times, and billion, our was longer-term Total debt-to-adjusted our our will repurchase stockholders. the the further paid our shares quarterly over maturities we XX%, now XX%, hand approximately benefits approximately the spent tax in approximately At expect We such anniversary $X.X increase its XXXX. introduction be tax at $X.X of of the no $XX our XX%

in and it ample With strong our flexibility capitalization business, questions. to investments for up strategic us provide liquidity stockholders. invest that, Our in further capital making open to continue operator, returns to let's

Operator

Jessica open for first questions. At call this of moment we'd Bank Q&A for roster. from We'll your a the America. to just like with And time, Reif to compile pause up the question comes

Jessica Jean Reif-Cohen

I have couple questions. Thank you. of a

On or And like a you're anything to the you the cost is Can programming Amazon expect new sorry. in decline that increased it to and – continue I'm – second, should going out we of on programming? specific quarter content the on rolling lot seems hear there me? cost, despite the deal then,

David J. Frear

Yeah.

were little Was was Jessica, about item cost garbled. I Yeah. content you garbled. it You another there asked special. know a little cost, about? a Yeah. anything asked you

Jessica Jean Reif-Cohen

the also give was that said press first is or on Amazon release deal, And could The one any if that you well. this says share? color step. There on actually as revenue there's the Jim SAC

So little either the deal approach can or how a talk you opportunities for you'll about other Amazon in-home? bit

James E. Meyer

this is Jessica, So, Jim.

will on start, come David me and Let back cost. to your then question

we of does our distribution remember, details Okay? deal give the deals. The Amazon not don't –

their of users. to product used among deploy Dot Echo And a way is which Obviously, in structured at it across way it's free the our the tremendous base. and as same deal if help among cooperating big Amazon platforms The haven't we're deploy and trials of time, brand-new both a looks. millions them it, to by deal our pure a millions their we've user help our millions promotion X, Okay? agreed is as you together

we've other in step about. talked Amazon a things I think it's to great first

but and can providers' perhaps kind we one easily, then, success pretty help its had That's work with and the something yet, other don't talk two example agreement of have deployment. We Amazon about. that through might to those as a Jessica. do think You we where interface services. has Obviously, talk reseller just can an or we together about kind certainly where as might hit over several think more announce of relationship that would us the next expect that double-edged intently and a you've use And want arrangements a are question, vision a us. will focused of making examples kind distribution-type significantly customers we anywhere on is go. products to I it. I with we of distributor service quite access on would that areas Furthermore, that to Alexa to work And our months a with voice both to bit shares easier be any of that

David J. Frear

the costs, on the happened – nothing And quarter. special Right. on the content in Jessica, that there's

continue in adjustment content. is runs that has have disturbs We There second with the way non-employee-based accounts quarter to through to change relationship third all FASB stock for do the an that that the to the options. the a quarter

we in adjustment circle We more quarter on can and back the that running there's through you And around an that sorted with so, through. later.

Jessica Jean Reif-Cohen

I And I the Scott call. on question? is throw then, can think just And one last

Scott Greenstein

Yes.

Jessica Jean Reif-Cohen

products? on video what's with color on your give Can any going us you

Scott Greenstein

Sure.

and Howard So, among getting that. running of as traction you significant most Howard with video, up is know, and others and fans

Jim stated, I'll that. video was on up live for the getting and in call, and places we're We're step working outfitting a busy video running. of the for, that that what and first As always complementary number studios excited in

snackable of the video. that two for You serving great are now. free see and media clip into other the the come things of more other our we go of sort do are as of tremendous video that places what and pickup content and Sarah clips out also social more And purposes. are they access combination on bites Silverman they They but we out have subscribers,

with as roll be that'll other So, on plan, but video there'll connected platform out. audio other the we things be our announcements

Jessica Jean Reif-Cohen

you. Thank

Operator

Amy Yong Yong Amy Capital Macquarie Inc. And we'll good Thanks question - Macquarie. morning. take and (USA), our from next with

over us With numbers. some anticipating at any back, top investments some and looking the you go that period needed? that guess, mentioned? of help the you a are lot buckets cross-promotional think there shop that look through cost are the for I us of I are the you're Pandora that And you. obvious synergy Pandora, some linking think maybe Can opportunities Thank as beyond you at then, revenue activities line of

David J. Frear

midnight better until shop the get the a go do have little And down next guys and Hart-Scott Pandora effectively weeks. us the going and last at over we're started over the business understanding Justice sitting few Amy, outstanding. with Department to So, with bit night, We then, their all line can't we'll anything get find we'll gives still activities. really future. that But We We the will have clear, in the in expect do the there. say that then we going engage more between expect We'll week start find the changing actually we to synergies next and synergies. do business. planning we'll top

future it's find We what you. call, expectations (USA), Macquarie be set our deal about it. Amy there's synergies, expanding said about like are. you calls and - going what isn't synergies, about to Got we Yong be we talk some but the last in cost Inc. cost expect to in the the product and Capital Thank we'll back to

Operator

we'll next Bank. Deutsche take Bryan our question with And Kraft from

Bryan Kraft

questions. had I Hi. Good two morning.

investment new the significant, that dealers OpEx Program? the paid this would how still wanted have rates at Thanks. conversion you car I to what on any Is to XXXL. support do good the it during far to or P&L? that switching And free you then, data by trial should with First, seeing so to be separately, subscription? early where make Labs' Is you're point? need buyers hit will too you the we that ask the also, think to to question ask paid Automatic period, And the the a Dealer it period about you prior

James E. Meyer

the works. you can of the tell have from our commitment. little our not when it than game XXXX from you will a Hooper you, have more entirely important is The significant financials. get with kind to Automatic, actually that. on in will one-off, right. get was can Hooper of numbers in I'm It But deal. how more dealers in back that you Bryan, not all way tell there pay which I programs, So, is a another commitment XXXX to on a commitment to back a sure the skin to were. it's or just have it attention financial either felt – they if can I I

and you. in through – so connected there's our be I to will here tell going to you, the opportunity. we've business just And like I encouraged have be my comments. space. This I to that think is deliberate early I'm signs launched and really OEM the vehicle caution tried by

to what we it's give sound In confident but to able that Our meaningful David, the your at I'm and that as you... the through we're we answer works to of opportunity the you yes, in strategy early on. what question work, be going have not deliberate work too XXXL, I'm is, still our bites. way is any be any aware slow that and doesn't relying to end.

David J. Frear

Yeah. with I the mean, spring. vehicles in XX-month starting rolled Yeah. Bryan, a Chrysler out trial in

really to anything not we're going material next until see spring. So,

Bryan Kraft

Okay. All right. Thank Great. you.

Operator

from Vijay And with our Jayant question Evercore. next comes

Vijay Jayant

Thanks.

I pay As understand music licensing a it, percentage revenue. different Pandora's structure yours. than of is They

you be Is Is optimistic an to I or is into guys or Is very better? Thank on you the opportunity? chance a that the a get of some sort that of closed? And single one once arrangement? you. Apple chance them could you think seem second, Amazon there of like platforms Google per there the you song. exclusive guys transaction Is other pay there combining partnership. deal a part Sirius

James E. Meyer

this wants – – which one exclusive it platform an obviously want be I we're possible. delivering listen easy we're while take not I put service certainly we're to to I'll our Amazon, first, focused and and listen on the any as So, is as agreement. And to is make as way, with customer that second to on anything the it want – easy again to any to

something I'm I I that agreed Modernization that, point what is continue a there's said, why how as so, of really, and take we'll David really I certainly for in note, work licensing, that compensate you one models is think important my nine around industry. music comments. was drama and is of And is of in outcome. down On I'll certainly thing with couple think performance but my did lot to weeks mind, the did a distribution path. constant hoping second, to out with included is on Act ago now and let passed Music Both want that to rights the essentially that, it in good conversation and about we that the spark to years It's of lot this will rate a comment David in a that been now remaining a a we I I included

believe should While years argue predictability important think we a finiteness something that the trust rate next and business. important is be and the And to our having rate, about we important lot a that's well. the have for to the me nine investors rate thing we I can about as argued really for

David J. Frear

and have products going that has structure the applies in and each looking we going licensing us structure to we company into aren't a It the that changing blend that Vijay, So, one licensing and industry. don't we as at negotiated that. try something I in would the with – see thing

Somebody is could now, music dollars to system, asked that intention more the game that. lot that with the think that and of do license that couple billion a call we industry absolutely still interesting we the the have an a material future opportunities. There's the we them to we far. relationship company have is, doing could – announcement to year. we've so been music fact sort will so from the we in paying really could for of And combined traffic dialogue there's with -the world's that than lead so industry But one another no doing a speak, switch whether of the we be

it together. well plays And think so, we all

Vijay Jayant

much. so Thanks Great.

Operator

with question from Riley our Crockett Barton next B. FBR. comes And

Barton Crockett

A Okay. materiality consumer for a flagging about. around curious questions. than is couple things taking kind Great. subscriptions that that, as of Thanks in of point? past. discussion direct give activity the you're subscriptions with direct up I ramp was addition a meaningful this or Amazon that of and new your I've starting subscriber deal more of opportunity the you – heard Is One some you bit? say Can still in it pretty to small at this little is us sense the

James E. Meyer

small. still very It's

Barton Crockett

you talked on also, about Okay. All right. Pandora... And when

James E. Meyer

various we're things. to kinds in with and understand you promote that be of and the still of honest ways trying that churn all business for characteristics the those stickiness business And to can you, that

XXXX and be elementary to kind going but And school or so, would learning I of expect we're continue to from high to intermediate a to the year, go move up school.

Okay? just it. not Because ramshack we're into going to into test this, way our run

Barton Crockett

who the among right. up don't guys people talk opportunity, pretty Do you Okay. of have them – you sign kind at promote is usage helpful. had an mean, On any to on don't for That's is kind All those offering greenfield real who content decline? about you a a also sign who what mentioned people Pandora. for also to well-penetrated group? there in the I I opportunity And heard of Pandora SiriusXM. improved data that Pandora, potential up Sirius or Pandora

content? out in you're Just could new a what little share thinking them get of they are content? there? terms you Could wondering thinking you about. that bit if your Could flesh What you help

James E. Meyer

everything So, number one, have move obviously is by one the plus the It's mean, result to – I free. idea to end think the be $X not two. the here on not will than more – to $XX I table way, $XX be customers after for or or from one is

even really they think Okay? do opportunity don't well already vehicle. expand the is just be million go learn to funnels business – things because I them that point really being the and vast thrilled do through reject a they that the subscribers, opportunity. not help that and through a may able through do to million monetizing way well in biggest The particularly a is for is our us the here is with either fact in been monetize towards ability trials which big and reason already discussion able still that point mobile in-home. listening to though It's XX really, They of the as XX people idea there with well business majority vehicle. They in really the we're thrilled Pandora's will want our do really, – we're approaching alternative a trial in being with pay. learn that we them to be today those to the them think are that in By and SiriusXM cannibalize include are big we've to them not alternative I another don't they our existing important or

get got I on the confident time until his can just of team to wrong on data tell and you have yet. question anecdotal I can some – terms until not right – asked. it's we more you, data, David and hood the under whether the spend In we I'm or

David J. Frear

things is the where what we work are where data So a match we'll And data go people little to And do shop so, one next gaps that. can the few out Barton, going and of databases the again, are, bit the to to planning integration. that's Certainly ago, looking there's we're figure to overlap over the and the do opportunities just can the months. have, at start do is, then get the together expired up they few we and early tech teams the for activity to of right? the doing then, now what be of how exactly once hours the together, we mash we'll that a that have, get to the start

James E. Meyer

see. we'll And

Barton Crockett

Okay. Thank All right. That's great. you.

Operator

next our Jason question Bazinet take with Citigroup. we'll from And

Jason Boisvert Bazinet

that's we I in just cross-promotion? of agreement terms had comments your a two-part question. sort from a On Amazon, infer that to with of Amazon domestic-only are

James E. Meyer

U.S.-only. It's Yes.

Jason Boisvert Bazinet

maybe you And the defensive are that embedded question. just Okay. update other know, Siri music of where dash, service in we sort mind an us that's the that terms the on some number subscription have icon? you of road sort of giving to the estimate cars then on Do in would you of a next

James E. Meyer

I important off the you give here. can't head. that I is One two Jason, so, think answer my – there's points of top Well

What conclusions Okay? says, everybody a hear and in draw mind, the places. no you getting they variety I one. it pie There's think what you needs you I is to the careful bigger, from tell of know, that and today before my question be can data is number

and weeks couple had bit quite they never bigger audio's I same the show, spoke how done thing. about been a that Pittman hotter Bob much think and ago pie the a in his see we is, words, research

business of you that from car because substitutive. Music I are back most careful think car got I away about is package gee, basically the today Spotify of what those and the to, they're is on used at to in is the music morphed things least I that taking pie, this And drawing for to MPX have what business to tell be into or part what in like expansion think for media be of oh, music. taking we're Apple that you, conclusions then the seeing the

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Jason Boisvert Bazinet

Thank you.

Operator

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James E. Meyer

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James E. Meyer

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Hooper Stevens

and you you. call in or we'll Thank in in year the much very the later you for quarter to participating call. Thank today's fourth speak

Hooper Stevens	Sirius XM Holdings, Inc.
James E. Meyer	Sirius XM Holdings, Inc.
David J. Frear	Sirius XM Holdings, Inc.
Scott Greenstein	Sirius XM Holdings, Inc.
Jessica Jean Reif-Cohen	Bank of America Merrill Lynch
Amy Yong	Macquarie Capital (NYSE:USA), Inc.
Bryan Kraft	Deutsche Bank Securities, Inc.
Vijay Jayant	Evercore Group LLC
Barton Crockett	B. Riley FBR, Inc.
Jason Boisvert Bazinet	Citigroup Global Markets, Inc.
Brian Russo	Credit Suisse Securities (USA) LLC

Sirius XM (SIRI) 24 Oct 182018 Q3 Earnings call transcript