SiriusXM Holdings Inc.

Greetings. Welcome to the SiriusXM first quarter 2025 earnings call. At this time, all participants are in listen-only mode. The question and answer session will follow the formal presentation. If anyone should require operator assistance, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce Hooper Stevens, Senior Vice President of Investor Relations and Finance. Thank you, Hooper. You may begin.

Thank you and good morning, everyone. Welcome to SiriusXM's first quarter 2025 earnings conference call. Today, we will have prepared remarks from Jennifer Witts, our Chief Executive Officer, and Tom Berry, our Chief Financial Officer. Scott Greenstein, our President and Chief Content Officer, and Wayne Thorson, our Executive Vice President and Chief Operating Officer, will join Jennifer and Tom to take your questions during the Q&A portion of this call. I would like to remind everyone that certain statements made during the call might be forward-looking statements as the term is defined in the Private Securities Litigation Reform Act of 1995. These and all forward-looking statements are based upon management's current beliefs and expectations and necessarily depend upon assumptions, data, or methods that may be incorrect or imprecise. Such forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially. For more information about those risks and uncertainties, please view SiriusXM's SEC filings and today's earnings release. We advise listeners to not rely unduly on forward-looking statements and disclaim any intent or obligation to update them. As we begin, I'd like to remind our listeners that today's call will include discussions about both actual results and adjusted results. All discussions of adjusted operating results exclude the effects of stock-based compensation. Additionally, we have posted a supplementary presentation on our investor relations website for your convenience. With that, I'll hand the call over to Jennifer.

Thanks, Hooper, and good morning, everyone. Thank you for joining us today. Q1 marked our first full quarter since unveiling our new strategic direction and sharpened focus on super serving our core in-car audience at SiriusXM. We are already seeing early benefits from these efforts, as reflected in our solid first quarter results. Given our momentum and despite broadening economic uncertainty, we're pleased to confidently reiterate our full year guidance today. Across the business, we remain dedicated to our three key pillars, enhancing our subscription business with a keen eye toward our in-car leadership, leveraging the strength of our advertising business across our portfolio, and optimizing efficiencies to deliver both cost reductions and higher returns. Diving into the first quarter, our subscription business delivered strong results with solid year-over-year improvement in self-pay net ads driven by positive trends within our in-car business, which offset an expected reduction in streaming net ads. We saw reduced in-car churn, largely due to lower cancel demand and non-pay, despite the full price rate increase we implemented in early March and signs of declining U.S. consumer confidence. Even in the face of economic uncertainty, our business remains resilient, buoyed by our industry-leading customer satisfaction and the essential nature of our service to our core subscriber base. Underpinning everything we do is the unique live and human-curated content we offer our subscribers, which fuels fandom and the must-hear moments that happen on our air every day. Our coverage of and presence at every major sporting event from the Super Bowl to March Madness and our exclusive music channels, including pop-ups curated by the biggest artists such as Lady Gaga, bring fans closer to what they love. Additionally, our wide variety of news and politics programming, where we are seeing double-digit listenership growth, and our new talk programming, including the launch of shows featuring Alex Coopers on Well and Page Six, deliver value to our subscribers that they simply cannot get on any other service. We will continue to leverage the power of our extensive live and on-demand catalogs as we look to both showcase our value to current subscribers and introduce new listeners to our portfolio. Our efforts to add more value across our packages are paying off. Many of our subscribers are now enjoying the additional channels and programming newly included in their plans. And time spent listening in our app where we offer even more content has increased year over year among in-car customers. We believe this led to the better than expected reaction to our rate increase, which impacted virtually all full price plans as we experienced minimal churn impact. We have also made progress rolling out our new in-car pricing and packaging structure. This strategy, along with additional actions taken last year, has reduced our reliance on discounted promotional pricing and acquisition, while improving price transparency, building brand trust, and driving our highest quarterly customer satisfaction on record. New programs launched over the past several months, including Tesla, enhancements to our used car owner data, and our multi-year OEM subscriptions, which continue to expand, launching in model year 2026 Ford and Lincoln vehicles later this year, also led to improved in-car acquisition in the first quarter compared to last year. These programs give us confidence our strategy is working as we continue to unlock opportunities to grow within our core audience segments. We are committed to ensuring we provide the right offerings for our customers and are focused on both enhancing the value of our higher-priced tiers and introducing additional options for more price-conscious listeners. This includes the launch of an ad-supported subscription featuring a compelling subset of our music and talk programming, which will open up a new, persistently lower-priced option in almost 100 million cars already on the road. The new tier allows us to leverage the strength of our advertising business without putting our more premium tiers at risk. The opportunity here also grows as our fleet becomes increasingly IP enabled. We remain on track to have more than half of new SiriusXM equipped cars featuring our 360L product this year, allowing us to further customize offerings for our subscribers across content, marketing, and advertising. We plan to begin testing early iterations of this new subscription in the coming months, enabling us to hone the offering and bring to market the strongest package. This is another way we are working to showcase the value of our service to potential subscribers, building upon the work we've done to date with both free access, which continues to expand, and our free-to-air events, which included Chris Stapleton Radio broadcasting free to all SiriusXM radios throughout February. On the topic of advertising, ad revenue was mostly flat as compared to the same quarter in 2024. While we are closely watching day-to-day changes in the marketplace, the flexibility and broad reach of our offering allows us to meet the evolving needs of today's advertisers. This is best represented by the launch of our Creator Connect solution, which allows marketers to tap into creators' audiences across audio, video, and social. In the first quarter alone, we have already outpaced our full year 2024 bookings for social and video and see this as a continued growth driver. In Q1, our podcasting revenue was up 33% year over year. Our podcast network clocked close to 1 billion downloads across audio and video in the first quarter, and we now reach an audience of 70 million monthly podcast listeners. Our expertise in monetizing digital ad-supported music within Pandora provides a strong basis for the opportunity ahead as we look to expand SiriusXM advertising. The ability to deliver audiences across broadcast, streaming, and podcasts, inclusive of video and social, makes us a unique one-stop shop for marketers, and we are continuing to invest in ad tech solutions to make it easier for advertisers to buy, plan, and measure across all three. At a corporate level, we remain committed to optimizing the business and driving efficiencies. In addition to ongoing cost actions, we are testing a variety of new initiatives for savings and growth. We continue to see strong potential in areas such as AI, where we are leveraging the latest technologies to improve the customer experience, our marketing, and our ads business. In closing, while we are watching the shifting economic forces closely, we are pleased with our first quarter results and continue to have confidence in our full year guidance today, as well as in our ability to deliver meaningful value to consumers across our business in the quarters to come. With that, I'll pass it over to Tom.