Sirius XM Earnings: Soft Pipeline Hurts Net Adds but Pandora Ad Revenue Better Than Expected

Sirius XM posted an in line start to a challenging 2023, as first-quarter revenue and EBITDA met FactSet consensus projections. The SiriusXM service lost 384,000 self-pay customers in the quarter, as expected since management warned last year that the pipeline in the second half of 2022 was weak. Ad revenue at Pandora held up better than expected as podcasting is still benefiting from tailwinds. Management increased full-year guidance for free cash flow and adjusted EBITDA while maintaining the revenue expectation. We are maintaining our $7.50 fair value estimate.