SIRI - Earnings call transcript Q3 2019

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Operator

Good morning, and welcome to SiriusXM's Third Quarter 2019 Results Conference Call. Today's conference is being recorded. A question-and-answer session will be conducted following the presentation. [Operator Instructions]

At this time, I would like to turn the call to Hooper Stevens, Senior Vice President, Investor Relations and Finance. Mr. sir. ahead, go please Stevens,

Hooper Stevens

available Vice Thank you conference Officer on Securities to the earnings our upon during depend Senior cause Reform everyone. be At incorrect These Financial are and the conclusion XXXX. all good that and Today Jim current to assumptions the may morning of Executive our like as beliefs call. imprecise. Frear prepared uncertainties Executive data will Act of Chief by subject Such remind based and be Welcome the take forward-looking made and Content for be and Meyer and questions. remarks Jennifer expectations statements might certain Chief differ joined Officer. SiriusXM's will also Private materially. forward-looking Sales Greenstein statements that Scott Witz to usual glad David management statements statements President defined results call. and Marketing to Officer; Operations Litigation and forward-looking our President I risks call our is will or that be of as our of portion be your Chief President Q&A methods necessarily everyone management's to would actual term or are that could the in and

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

adjusted discussions pro adjustments. results Pandora Jim X I'll both accounting today's exclude call on to will I'd transaction As XXXX operating include certain price to that All assume effects discussions Meyer. like stock-based about of forma results pro closed purchase we of actual compensation the results adjusted the hand the January remind over and listeners our and forma and begin results.

James Meyer

EBITDA first ever. and Good X% single-quarter $X the subscriber was Revenue and free across $XXX also of up morning. for EBITDA board set an cash excellent and SiriusXM growth time Thank the solid Adjusted you XX% robust a with climbing expansion flow. Hooper. delivered exceeded to third million. by quarter record billion

With metrics of reiterate for pleased strongly I'm our our for financial self-pay our results these full to all and subscriber guidance guidance year great growth. increase

gross last quarter I third net quarter climbed no net able the with quite much SiriusXM a churn churn performance additions. larger sequentially adds how to feat quarter rounded XXXXXX attain confident X third our year will rate. the like some and acceleration self-pay approaching year-over-year. was improvement bit and to base. we growth Our say million pleased self-pay in I'd small year-over-year third sequentially of both I phenomenal additions was headwinds faced extremely were it from self-pay we over to full get we year's guidance the our to as of quarter. third strong am X.X% And a in down Needless additions was Though in and emphasize net some

additional this increased and very users. new in using to promote content. digital both The up our our Pandora out products XXX scale and approximately We're to car scale has million quickly to already attract to of speed and acquisition improvements car

Someone and Billboard on of the You As ultimately pickup on Lewis example summer it driving #X over to the last XXX igniting platforms week. brought of started million that the radio an plays to plays we Capaldi's listeners Loved song our streaming

talk advertising excellent has in-vehicle us broadened acquisition an later our nicely The much which bigger market-leading advanced made and SiriusXM's car. I'll about include more This outside of business Pandora to set position. has skill the digital complements

-- XX.X nearly year. the XX to million XX.X on range million along last million flat humming is SAAR with

to discussions next our may next with year. XXs will in a overall bit push our latest years. be at from more launching accelerating year low several was today deploy based numerous XX% OEMs streaming we XXX fleet well expect about over even higher OEMs next GM decade. XXX XXXL as XX% even the And than this solution enabled more year. million we with beginning This the and hybrid than million models to penetration still go the to next our deployments upon satellite are While And over

auto an deployment model XXXX signed through includes of we example significant XXXL. of week the on this Nissan for Yet SiriusXM the a that long also the Just extension company's year betting another haul. with

an to business of contribution expected great heart with our vehicle SiriusXM's growth. unit decade million an But economics pathways Match finding new visibility remain -- we and business reinforcing drive the install, sources low of additional and many churn in at vehicles fantastic are with We low margins consistently with subscribers existing coming continue SAC high SiriusXM the have value historically that engage record expected per and and years out-of-car grow. has enabled long-term core should high so. the proposition the XXX net record additional to must ARPU,

Google. yesterday include Google available new now bundled Google prominently Google announced at Just will a Assistant agreement on will offer distribution will a and offer subscriptions buyers promotional these of of rates Google service Nest free new a and SiriusXM we X-month our with hub. devices be that trial devices. Nest

example a video We've for moving grows vast gradually the vehicle apps population evolve subscribers. just new quickly announcement over more our We've engagement extra interface made no time our we at how available the improve of features expanding will and the a offering. experience to better charge of majority in-car with one greatly improved streaming channels now out the is are car. XXXL the of While Google as quickly

CE consumers now on home content go We've a plans number easily connected available price on for the of devices. the growing created and meaningful. grow time lineups streaming-only in attract points and The areas room these and We targeted over new year but to with become of subscriber even to from next these and today more new are are students contributions users. plenty growth marketing approaches to small have to general

At very moved have quickly. Pandora we

have time but more advertising We on David make and in we pleased to climbed numbers that profit through profitability strides second Ad-supported to was cost and X% the X.X% will revenue are the moved spend and gross business efficiencies monetization. of at continuing the quarter. XX%. declines still were X.X% down expanded in improvement this in the an but listening XX.X% Pandora I'm quarter hours from first

figure lot was off-platform had of have this ahead let's a growth we ad but solid as and not that well. We heavy highest-ever of us lifting our revenue quarterly forget

dynamically content we've You discovery Pandora experience with app I'm also personalized music feed each hyper-relevant that at the been happy accelerating an content is to driving new in updated more all-new surface For quick designed including leading mobile third to before. of quarter a experience innovation greater user users report to to pace on-demand this shows day. that tailored our access people and the giving to than throughout Early data discovery

Pandora also Modes launched For lean podcasting fine-tune also more stations more even towards hub be shows it of and grow to help platform their for with our more. Deep for exclusive new to catalog lets which to podcasters its also Favorites, creators. many We submit self-service easier users as listeners You made to benefits added Crowd added Discovery, We've We've well and exposing SiriusXM. Pandora's will forward Among Cuts a growing from types content. by

platform and is Most long-term curation ad is and rudimentary better be very tech to biggest ad targeting. great excited in In with better we improved Frankly the personalized. there. in addition this I'm disrupted are strong. be here about area the and and progress and advertising podcasting And podcast eventually at and in advantage technology continued unquestionably making ripe we will discovery as are Pandora to our monetization well. not very content

changes where watches listening Premium video performing But to a and Our audience. excellent are performance with around user newly unlock is offering completely both content. off-platform driving both are particularly a SoundCloud really well programmatic the what younger biggest to come platforms is our reimagining are on-demand Pandora most On with scaled and at we with possible ad listeners. results. exciting access

content are listener to by brands are SiriusXM deals tailored our advantages we specific their reinforcing key We and both bases. content with positioning extending new at

our will curated that progress differentiated will means It built-in content other important the and over SiriusXM megastars audio fan bases superior I to brands more market be brand ways as in Pandora But relevance. playlists business the Pandora more and from branded continue to different. want This at Pandora. stations an and We to reinvigorate in we using to some think strategy with the of great the and drive will well. making at to and area. SiriusXM demand be part of mean successful and be been offerings the have we're years

Howard's Howard by array of stars complex special and a of with Stern. all our our Just the new to performance state-of-the-art christened our us our at a Billie special is in a brands to by welcomed programming SiriusXM of we -- short studio his Underwood, performances even phenom few Angeles L.A. series vast capital valuable Garage. name for and our Eilish and closer the by L.A. talent Carrie Roberts compelling of a more special shows ability in the subscribers. just broadcast performances to The in exclusively month entertainment media a from live broadcasts ago call street-level interviews weeks and Hollywood followed by space Howard few. for bolsters young of Julia game was and world Los to create top we Being

to what Marvel their Marvel scripted and care creates and People Last unrivaled. success with we podcasts don't podcasting pivotal associate week best illustrates Pandora always foremost. first We collaboration is approach. love announced quality to more with for storylines compelling. want our brands fantastic unscripted SiriusXM create is and want record just This of the neatly character-driven they deal and we the and a exclusively platforms. about

with year. Carter partner podcast we to In this create athlete-empowered fall. to sports Maverick thrilled next and see LeBron the football up James are and a debut UNINTERRUPTED Weeks exciting with series new brand weekly We founded by content teamed XX Marvel to this

his with we launched Films And full our Tonight channel and of comedy are Carson full-time Papa we NFL L.A. Netflix Kevin Hart are comedy us devoted to celebrates and the channel. his his now from Fortune working original new the Feimster Tom coproduce Comedians relationship with upcoming full-time series launched playing of our comedy special and first In directly a We broadcasting show studio. season. live daily that Show. channel. comics in Johnny expanded XXXth a XX-part to NFL's archives also episodes the podcast

high-profile arrangements and News FOX We with others. Pitbull Andy have renewed Cohen extended and content SiriusXM

do as our exclusive to in and our show the continue world to superstars that Music And Channel audience channel. power before the from on matters. Trevor delighted Rock came Baseball platform Studios on more a on also collaboration Bauer pitcher mentioned Swift our We channel we perform competitive have both Center SiriusXM a the Volume be to Wilson host day audio thrilled exclusive I to that League All-Star it of tuned and show talk Rita Pandora to on acknowledge released -- an talk our with Stay new SiriusXM and for to subscribers. live before Taylor an a Al Drake SiriusXM. across Major music songs will show on show album Franken new about new signed stretch in political are Channel. host working to Progress this. her performing of was

best not So our are we laurels. while have content on the available resting media we in clearly

expect We are iconic audio users can what refine to forward brands. X our always moving from

to penetration I of well rate some we head the we expanded We'll pleased growing grow with base to with car longer-tailed expanded next at engagement of position. should XXXL and mention our car a deployments both out-of-car and early new-car among am as and a Internet-driven business benefit very used have existing results As into more efforts an not rising the SiriusXM subscriptions subscribers. our of of see outside distribution year

Pandora and to best improved consumer ad reach and business in ad-based an with other to product audio SiriusXM. a model publishers. entertainment continue audio We at technology for leading set the content best-in-class audio off-platform and have our expands solution

$X it over with this us invest management I you in tremendous to flexibility nurtured of while so the over Our financial year us aggressively business bench added capital to continuing to to With more deep for to significant our we've model future turn pleased and deploy prepare billion our couldn't be David. me challenges. that shareholders far And talent alone. flexibility gives let

David Frear

an EBITDA added all-time Good strong our XXXX additions Thanks million. subscriber high into had XXXXXX half to morning SiriusXM's year-on-year continued third the We net call. since the X% the thanks additions joining XXXX. of adjusted Jim. for XX% and start year. back for of best and to everyone grew total quarter forma Pro grew and revenue net self-pay $XXX

companies the As which on years. for the pro combine both X I results quarter discuss forma results in the the full I'll focus for quarter the

sales in XX auto at Third approximately with X% strong quarter slightly coming million. were at SAAR unchanged very up

on exceeded The total road installed used car channel the grew slightly from XX% remain U.S. prior penetration XX% from and XXX confident was the in year-on-year XX% penetration cars second the XX% up rate or that and Our the XXX will reach we above XX% rate the in gross rate next approximately in year. period. rate pen helped lift total self-pay the the our just jumping The quarter of used our the base to quarter additions year-over-year basis in of of to vehicles million XX% quarter XX% approximately points year

total the the XX.X the record increase over X%. grow XXX XXXXXX funnel to to a At the X.X match subscribers. the net trial brought million next to continued Used new the SiriusXM Used million. car climbs car at steadily end it -- as car pen rate pen were base quarter will at starts quarter of rate. additions approximately stood trial more than years several to Self-pay self-pay solidly in

mid in per and car quarter X.XX% was third Conversion Churn to remained and month respectively. continues X% third the quarter and notch below XX% new X.X% at down churn. offset ARPU a the record rising low strong below rounded quarter year's range the quarter just just business and the rates voluntary vehicle upper improving as be expected our end in lower $XX.XX of approximately the used in last non-pay XX% of growing a churn of by still year. than in our last over to range to

cost growth X% million quarter nearly the royalties comp $XXX X% SiriusXM's with costs. and Total base excluding stock-based grew in increased of and higher programming to $X.XX third in in billion. quarter services Together our to share segment driven subscriber by X% revenue content revenue the for

approximately XX% relationship Gross Adswizz SiriusXM growth the a profit X% platform sell-through strong to our over Pandora XX% revenues prior year. from this drove than producing higher performance. to pricing with Higher prior grew gross totaled to $XXX the in bookings prior approximately Ad in-quarter strong contributions quarter flat and from biggest million the continued grow X% SoundCloud $XXX reaching million and year quarter increasing for RPMs ever. of $XX.XX At the the the year. advertising margin

hours trends continued MAUs ad and million hours X% down down billion. XX.X to with ad MAU and X% to X.XX

Pandora's our distribution XXXXXX ended paid million. trials been making ultimately expect trends years technology X-year in performance have subscribers approximately and the net X.X While total a of the the audience to in resulting promotional a In trial audience additions self-pay subscription quarter content XXXXX Pandora's Pandora. quarter in grew a wireless product we at carrier investments to in third retired. paid with being promotional improve

to promotional end revenue sub of XXXXX. total of Total million over X% period million a included X% ad-supported X.X $XXX revenue paid the which these as subscriber brought million. grew at prior growing The majority base year listeners. subscription the subscribers Pandora base Pandora to $XXX of produced in listeners This quarter The up continued of quarter. the the

quarter driven of approximately primarily lower XXX of This represented cost third customer million percent billing than jumped of share X% the a in royalties total services million prior $XXX as Pandora's in expansion a 'XX higher revenue over year by to expenses XX% and With basis quarter. period of to service profit XX% third points with only and gross revenue. the the the $XXX margin increasing

billion. to profit over pro or QX over revenue it or XX% XX% 'XX approximately forma increase adjusted it this EBITDA X% For to million $XXX just gross $XXX driving billion through million. fell million of over forma $X fell grew XX% of to $X.X to about pro the that company through to $XX up X% combined and up driving

quarter cash GAAP in quarter. in of approximately third We growing was in a free July adjusted XX.X% from associated million the $XXX $XXX with converted in income only XXX margin $XXX flow this net points nonrecurring to addition third year EBITDA XX% quarter of ago. the the in basis expenses of primarily year Adjusted EBITDA the in XX% approximately senior period by driven redemption notes $XX the million from million prior million million of benefits tax our the to prior refinancing of declined X% $XX year period. approximately into

prior X.X% quarter to year the tax for company's The was third effective period. in the rate compared XX.X%

our a was share shares. for With X.XX of on fully billion XXXX tax pro expect in billion forma average a count with year per share revenue We approximately for left year full cash basis rate be Earnings approximately diluted quarter GAAP our billion. effective $X.XXX flow will free approaching new $X.XX EBITDA adjusted $X.X the of XX%. guidance $X.XX the and calls approximately months billion X for of diluted

are guidance stock million net billion first X returns for quarter We year-to-date our In self-pay sub capital repurchased our confidently adds to we of approaching common returns million. third over largest bringing the capital total of months reiterating ever. our $XXX $X.X X for

us At billion adjusted up our revolving credit quarter continue under shareholders. this capital ample operator nearly with to to gives for questions. let's our facility business returning our in $X.X end investing debt open while it X.XXx. With was EBITDA liquidity that And available to

Operator

from Instructions] will We now our Evercore. from Vijay [Operator Jayant take first question

James Ratcliffe

be year-on-year much advertising On conversion Vijay. comparable -- per monetizing to you're listeners any side had you seeing for incremental that? impact are do could SiriusXM. listener cetera? Pandora grow get have It's stabilizing do Secondly color on How what to clearly the you on and James in particular? versus vehicle -- one standard on if and least Ratcliffe vehicles expense there? better. how ad rate with Sirius Pandora XXXL on at room XX% operating radios up looks so you've And more revenue What I Two one prospects on et the side the for Pandora about

James Meyer

me XXXL product We're of your and It's a let of Pandora I'll we've try a on generation conversion quantity. couple know out had questions. XXXL of to very David first very the the over turn small for a to So then beginning see bit there. on it I quite that.

-- you. honestly that's conclusion meaningful I I don't haven't for James reached So any

beginning to with We are announced in we last seeing significant buildup as now XXXL deploy. GM quarter

to get much And expect that certainly next can late so would visibility of early see. summer year spring we base I kind more bigger a and probably

In as the same every on is our terms of partners our our ultimately next it continue one is today to with color years to just XXXL is single the on And the with color announcement will more. one always I've said. one beat - out over the steadily roll cars. where Nissan single X XXXL of every goes of

tinker And better it with so to the pleased Obviously with but it's do constantly make really we're pleased I'm we where that is. take question? to going. really how Dave want it Pandora you

David Frear

Yes.

terms the is lot capacity team of James a delivers ROI advertisers revenue perspective per so pricing out that out there of isn’t that of product there to the ad delivers audio and the Pandora able listener way really So the for does. an from Pandora that; get in really premium

effectively to think increase I about trying feel said that terms of in being the same That subscription way prices. about we prices do we that that in segment increasing

business. against lot day a every fight to of competitors sort hard your book to keep got of of You

the just with monetizes premium just we not premium looking it's Pandora audio away of the prices. there's have benefits product the in already and intend of a team we're that growth banging so all room of do keep think off-platform We that for said the platform. ROI. sort It to the sales for jack so a But business. lot great on to And a at advertising being inherent

sort others opportunity And monetization huge company. continue so with not we think the of just a inventory ability but for with to driving the our is

a talk while. I management a it for It's this a X-year a takes of this to invest of mean to been a about invest to got got In us in terms partnerships different sort content, XX% you've in stabilize now to decline few audience long hearing making. time calls We It's look the been disciplines in we've audience. to path in distribution the stabilizing audience. and

and there we more And tremendous can to out you we customer do you because there's fundamentally intend content a different that's We can fully interesting put of great engage on in amount that. engaging believe more better think while the content there ways.

so stay just posted. keep we'll you tuned And and

James Meyer

Yes.

I I said would competition we'll have But competition think which good we that's David well respect. -- it. at add deal think this of game of is with -- out James there said we Dave. there And plan keep a the thing and is a lot lot a we only to

Operator

take now We Cahall will Steven from Fargo. our next Wells question from

Steven Cahall

up adds Yes. wondering But what thinking you'll I you're know higher bit SAAR? expected Maybe you in think the give around just Self-pay preview was on rate first next on subscription guide year maybe ARPU of was on penetration you're us and to connected terms could this in probably subscription. it excluding SiriusXM January. seeing especially XX% if of your And of side I net vehicle quarter. a the light what for I as in then

still some MRF I there's through there. rolling think

the Or time. on single that kind And the of the digit subscription the just term? like should inflationary rates? revert about it to power grows So seems high mid- ad to Does relatedly medium how pricing about can do it we back side you just still ARPU like all talk think to for here? you

a ad the SiriusXM growth driver? is So ARPU also continued

James Meyer

can take this I'll the guidance David So take we'll early year. our rest them? of has the in give taught since is you David me first which one next one

David Frear

Yes.

done rather X So look than quarter the to of we've we've take this what last years. a long at I and looks of of back think and ARPU X on better the kind step look is it how the that - sort mean subscription thing particular a been any the saying at for I over time course

And to couple about to averages think underlying per of place and that's out year. see prices X.X% the of stay. what we a there's good And a inflation spikes in it probably you while

James Meyer

And I'll a just comment. make

-- are seeing single we're On the low SiriusXM we We're high double-digit advertising growth. pleased. sales to quite there digits

David Frear

Yes, low double-digit.

James Meyer

We that pleased. next them pretty We're year fourth out quarter good team a drive really and we're And hard. as expecting strong well. Yes. of growth

really us. a it's So for bright spot

Operator

Bank now America will take next Jessica Lynch. We Merrill from of from our Ehrlich question Reif

Jessica Reif

questions. of Couple

podcasting. The companies round over a like entities, on you couple focus this of your would talk area. of seems you a different define next you success investment the just this first there really big It content one area are in for level investing in different for Sirius of the and Can in number about you? for years? And how

made is given how as said about just question speakers? Second the smart you expand much has in-home Google have deal Can the proliferation increased for with Home in-home, made And talk you've Alexa. the with such deal to a you the efforts outside you great of vehicle. usage you

you represent? And more talk don't I focusing for restaurant. we Sirius much. guess of And the Business third very you're vehicle does that and for But final sort really area the [indiscernible] opportunity commercial big this an attention one about noticed is the outside as how that of

James Meyer

might able be Jim. them There's right business an a that. we're amplify one continue it. It's -- in. in to path it we Scott how take take and one of we have of I'll Business. to our couple So -- I'll do to middle now planning and a It's for to the process obvious SiriusXM weigh frankly first. really look The Jessica David the that over relatively We not at small. do it's turn -- can I'll last then

and of product. We're It kind with good growth. It's just happy is low is right expect I would kind it now where of it'll a grows.

we've there. acquisition a impressed just anything opportunities even look it's it business obvious us. to continue opportunities. We It's at that But -- seen But for not good that's little I've for looked that one me. is

discipline first podcasting a the disciplined our foremost. is with foremost and approach this. I taking We're word used I've Going first very would to back say to team and

success X in to my in X sides actually -- there's podcasting there think mind. I of are success sides

is with support and in robust building we needs a First we business technology supported way ad that think lot tailor structure. can of technical things. that those is that And including the foremost structure ads a think mean I be it by very that and to the necessary to the

working road on are map what believe a teams now to do we that. right Our is solid

kind That all have I know yet some it first map right and road with ourselves. next will I it right. things But outside it. work year. of don't It investment. to small would us may more or not But But to do what that's certainly tell just got that I and half an to keep doing some visibility it you earth-shattering towards we're in may we expect know is involve we we and of there moving get the we partners. here want

available. I know library part agrees -- comments since Scott have vast On them it not the in to Scott that have content side what on that to want quantity. about we with That I a think -- I couldn't which don't us wrote mean said is it stuff is clear more doesn't my of

really of brands we here. don't is extraordinary of we're us which brands believe content the about many and the To game why we of the think going really in entertainment podcasting of the so where have big big value that the is the weighed quality all Marvel the we is believe announcement yet

We this correctly. make and go that to content how as get down subscribers find Again Scott together all on them want physical the here they know little X path got the there's to we to it I simple when will it promote we things. it to sure know you and discipline reassure Jessica we then it finally -- oh okay? other got how to with anything though will area

then want and -- podcast want just run so don't say "Hey drive And our thing to the I deliver out whole -- to we're go there and don't I it. we in --

Sorry Scott?

Scott Greenstein

the One obviously -- Just Jim said. I on quick agree what things. with two

as at make a podcasting difference will is our the want Pandora strategy content content to act other Our and content. and find Sirius than fuse listeners our best of strategies. a on any also other no that We truly have find to different

So continue. that will

and business The most a big big names, the both many in names, about. fact opportunity that excited brands individual of lot we're are the that is

most Given out podcasts free -- an for very Pandora on put feed are already. RSS podcasts approaching good that has XXXX quietly accumulated

or the will So like or economics no that on everybody there tonnage else. virtually be limited

[ph] make others and difference. [Marvels] The a will

different The it's entire can surface align whether an -- enough it's issue game Once you your you there's is out able with surface Pandora well it's tremendous other the your and question and if as is podcast once learns music music soon surface not a to they way is well algorithm can of Pandora's because the podcasts pace amount point there. when. industry when curate music a the and

game think And obviously think on monetization and touched the we'll we as and on that as suited quality the as potential it. And ad podcast orders we're David we be off-platform in for well game. well

David Frear

the level enhanced the the investments we revenue. we so monetization. of to we invest podcast expect the monetize Jessica investment don't will there's in -- alter in way though really dollar So podcast per And

success. at. Audience that definition something engagement looking to is we're about going talked You of be

trends the of It's so you changing investments podcast. I economic fundamentally should the in think the business. don't yes And think of

know much little vehicle share much about but we have we're going up how going the of thrilled a And of hard -- kind up satellite And in much stream how side with to we expanding don't and the of is on we measure. they us it's funny satellite it and your the don't lot overall since that of So on we is listening on streaming the get and listen it's say how audience visibility engagement. people significantly because for know right? last definitely in it's the thing -- outside the of -- a hard to terms

Jessica Reif

guess Drake I big one last is the When And question. reveal?

James Meyer

we'll about Well in have around I around think January. electronics -- in that more the consumer -- early say -- early

Scott Greenstein

That's correct.

James Meyer

Well we're working hard.

Operator

And the Deutsche question from next take Bryan from we'll Kraft now Bank.

Bryan Kraft

question ask you content Wanted cost. to a about

us year. down SiriusXM the have that this investment? increased break you budget the driving programming help more are than increased segment you primary Can content areas historically by You've to the just

think on about video the announced like how give about particularly what think beyond forward? us new should year with investment you can returns Drake you've sense cetera? outlook initiatives this And going And any cost content we looks the the this et as we of Marvel

David Frear

from that deals investments way. think step-up tend few in -- on as most cost overabsorbs same in think often the and have year going cost we comes for that's in that that don't about the I then up is content history. What we you've we renewal have next since I content seen that multiyear do years. you should a different So content -- over think podcast there's the in And revenue and is to this anything always the growth

Bryan Kraft

Okay.

rate So a a beyond kind more of like year this growth of what normalized it is expect? you'd sounds

David Frear

right. That's exactly Yes.

James Meyer

us. to certainly kind blubbered out reiterate Brian thing we're a just I up to renewal with able with comments the little sense only were one -- that I us. I'd makes FOX to thing really want re-signed deal pleased to to of with to We News do economics is my a point have that multiyear

several and what But having redo of of for part things we SiriusXM stays really ahead that really step as really back now a place is to important -- of FOX our us that one years pleased these And base a demands. tend and it a then listener having then cost that at there's flat -- in said the we're David News with.

Scott Greenstein

point on that. other one just And

and compared sales in monetizing the making with content. skills Jim the and as David Sirius both comes in referred our ad content content years the monetization to to are a huge Pandora and ago old new As difference

Operator

take now Morgan will our next We Swinburne Stanley. from from Ben question

Ben Swinburne

this a you of low time. for churn the But a guys about twice. ahead keeping have it at successful company Jim up of brought as talked you highly and been an opportunity long you churn fall couple at conferences

on I'd of you math the number given I of the because about it So it business. with call thought helps that simple ask the the the I think base if really move can you growth size

and think on help sort and any us about that? So of color and more the you pay sort opportunity non-pay how of or it get between voluntary

this wanted Marvel IP. I tons And competition I'm back for just sure of to there to because come was

to So us share on business? or the perspective can brand Scott's from relationship you use anything with -- from the how drive maybe Marvel the with you

the the extent? for its leveraging the business just that and impact had pretty that fullest company. on to would it has And studio big just entertainment it's like wondering partnership seem consumer a thinking the that you're about given I'm how

James Meyer

on the subscription it how churn. large and a business subscriber of business dirty So And I of Ben is how XXX% -- you're business right -- running. secret I mean the large believe a churn indicator key obviously is churn. is the very management of -- anything is as

we almost all where We're of most making of improving like at no and Frankly available aimed to charge our the -- are. streaming things initiative we're in really like doing churn. everything -- at adding are with pleased subscribers value terms of virtually

they We less know listen to the likely churn. more the are people

is -- putting other -- that is bigger but -- as all help churn the gets but that turnover things my a have fleet churn. vehicle that it of those we're way vehicle premise There turnover certainly gets I the our is help going can it So together. which the higher. continue a percent force becomes

that you what as to look the for need growth to opposed more really the so in number. offset And is car used churn in

really we're this. on focused So

I we've think with we're comfortable what probably said.

are comfortable said with We on churn. we've what

I to and single opinion we ready in that help it is can as the But we and my area about. our us think drive certainly that not that ranges lower biggest influence what steady think could to I'm growth.

there terms anything want to... In Scott Marvel of is you

Scott Greenstein

Sure.

significant they've Why is of One wouldn't obviously be? competition. things. audio couple a way that it made last Ben are. they're difference. field not So they and now in quick media [entered] a think sort ever a it I And of was they've Every yes the field of

lost driven. is factor get which sight algorithmically on audio And players the lot largely good. are want this was the don't that Marvel with So a of that there's I to NFL digital and

biggest single here. was the same history of production to Marvel's NFL quality factor with the of long and the coming and they with referred SiriusXM's factor that it audio

So we're that. excited about

other it's those but at and come Marvel judiciously interested led we're looking the them in since have opportunity at. to look to brands to has being high-quality obviously announcement And it nice to the have

Operator

will Kannan We our question from next from Barclays. Venkateshwar now take

Kannan Venkateshwar

a So I guess. couple

the Firstly as growth normal trial with well quarter this really for you growth strong I seasonality about the subscriber that was -- compared as your think year typically your compared full guidance to we seen. think have if

to that guidance higher? the why million is $X why not So

conservative some these the to that deals car think are very you're guys example deals it the X Nissan Because for what in automakers relative any with first have about different? secondly seems structure these when of done you of like quarters. doing you And then newer

deal with Because recently. Nissan also a Google signed

are Is deals and that doing? other they approaching you the So XXXL deals from have different all how they it any past are guys the done?

James Meyer

Okay.

So one. let me take the latter

as think years -- guess to auto in In terms without I many sound I deals want I of sounding looks arrogant understand start or landscape entertainment what the better anybody like than us with I'll the don't I we come. think vehicle -- and the to for well infotainment

And so we're of referenced the and with aware Google deals well others. you

a has opinion candidly in on By conflict deal in I strategy. think Google our audio at the particular calling is Google systems. doesn't -- is our with And the way Google in strategy. strategy GAS with my decided Android for way that what Google any quite pace least That --

quite -- with their them faster nice they've recalls so and a to them lot it's of to years innovate their their get been way automakers. frankly helps the the the offload both It for for spending that move along and -- Xs by and And development. tier

that. doing they're why get I So

are aware in We are these acutely the technology. are of things that transition of happening what

assume you're is the screen us you have very customer years changed the I just placed service finds and X asking from is where penetration not to we're the I commitments where think vehicle ago the ones think should for that important how and ago deals years we your crucial. the that in we're and did really aware what's what also XX on

why that's very XXXL important. -- are Because the It's so just about get where on. And that It's going gets our these the the XXXL we so best tell is consumer quite to is want yes. screens and you to experience complicated. can so be the service part I the screen not primary early

been just think have prominence yes so acutely we've deals and to the where penetration And changed I and not And we're placement with well. pretty -- as that. it's successful it's

the question guidance want guidance. our on You want our say to guidance? I take the to is

David Frear

And a Yes. big impact as true. few difference -- too. basis subscriber produces mentioned net funnel a guidance that's And pretty before a the of giving points growth one business. Jim it's And a much we have we're on for huge in -- we adds right? The And got large side. churn base

add because fun net those way tiny -- it they adds. So it's just wrong cautious if where the these takes we the of also it's it we that on impact net net are about a bit former. the things of one that only than just has gave the has things impact each And an an go one's very it way guidance if right outside in outsized more adds go

more very of nothing the at looking the rest it's than we're look So year. --

XX confident days. the We what making And next see the of in happens are million. $X we'll

James Meyer

I David's doesn't in to -- quite know the into midterm. And know that one it what what don't exactly it XXXXXX I more ago it's point mean Yes. next honestly -- because just I'll of add announced just But I vehicles X on going that they strike. goes one on production GM missed it were anything XX days days. mean while means they color --

to was through got that work what We know vehicles be and XXXXXX while way strike their -- trial know of funnels miss is. at We timing there a the don't Those on. those whether don't retail went that rebuilt. while

think more far element why into you and thinking might next guidance our to that one far is get the than -- our think. X factor X of over more that certainly sophisticated We'll that's We I but weeks. visibility on just

Operator

We final question and will Citi. take next from Jason our Bazinet from

Jason Bazinet

die tuned of of the new? pursue up that's I to car to sort just you the us last had Can will remind something and satellite satellites sort two Sirius X when free questions. those

James Meyer

think I die. never they

Jason Bazinet

are from on you as and believing have you towards IP My as you there as is more in been business. a pretty your guys moves past years have satellite away second the [convictive] bigger just international international And out the that I so over more about consumption of or still an wonder XX things isn't been there opportunity of as opportunity? you car mix consistent for -- your as focus question is not

James Meyer

the David take first. I'll will one take the second and

that opportunities. they still candidly focus area mega of regional want We at still pretty Quite instead with I'm of We distribution. look convinced not a look worldwide -- still about that's distribution lot a at So it. megastars for talk to us.

I tell is market great that We not money on it you -- I that it that haven't certainly to large want anyone works. it. the so I'm is certainly rule not of and -- I one? can seen seen that. but The you so We'll American just it and to that we said really opportunities out. But yet offsets haven't going we're news North that affluent afraid that anything to it. looking first do yet the take have doubt David do certainly keep international

David Frear

Yes. Sure.

subscribers current XM the revenue-generating a the on the X and can and a for in So has actually The its ways. platform. long yes of answer sort field maybe to in that work the last is production on chipset time peak the is right time. already the so will active There fleet platform its the reached that so its down. really hopeful fleet didn't die lot I Sirius are Sirius we're there way peak the really Sirius begin at -- low-band of different of most it Sirius But are fleet

case And for that years. the another remain we X expect probably to X solid

'XX of Sirius I from the remember have on a straggler to think or year. course maybe the can't production next I production And leave to sort the just the there perspective in last X is year we the of production. in 'XX big a a that production and if Sirius X platform of years the away drop just real in OEMs new platform is

is content on the can XM when way Sirius about you a probably that a in years again think change effectively Radio in that's terms the people good of But There's it of and with away. and satellite we window and little enter bit changing content would X the considering X there. the radios giving

Hooper Stevens

call in participating for we'll and everybody you today's soon.+ you Thank speak to

Sirius XM (SIRI) 31 Oct 192019 Q3 Earnings call transcript