Sirius XM Earnings: Improved Pipeline Should Drive Revenue Growth

Sirius XM continues to perform solidly despite a challenging backdrop, as second-quarter revenue and EBITDA met FactSet consensus projections. The SiriusXM platform shed 132,000 self-pay customers in the quarter due to the weak pipeline in the second half of 2022, but the performance improved sequentially versus the loss of 384,000 subscribers in the first quarter. Ad revenue at Pandora continues to hold up better than expected due to strength in off-platform advertising. Management increased full-year guidance for free cash flow for the second quarter in a row while maintaining its revenue and adjusted EBITDA expectations. We are maintaining our $7.50 fair value estimate.