Sirius XM Holdings Inc (SIRI) 2023 Q2 法說會逐字稿

Greetings, and welcome to the Sirius XM's Second Quarter 2023 Operating and Financial Results Conference Call. (Operator Instructions) As a reminder, this conference is being recorded.

您好，歡迎參加 Sirius XM 2023 年第二季營運與財務業績電話會議。 （操作員指示）謹此提醒，本次會議正在錄製中。

It is now my pleasure to introduce your host, Hooper Stevens, Senior Vice President, Investor Relations and Finance. Thank you, Hooper. You may begin.

現在我很高興向您介紹主持人胡珀史蒂文斯 (Hooper Stevens)，他是投資者關係和財務部高級副總裁。謝謝你，胡珀。你可以開始了。

Thank you, and good morning, everyone. Welcome to SiriusXM's Second Quarter 2023 Earnings Conference Call. Today, we will have prepared remarks from Jennifer Witz, our Chief Executive Officer; and Tom Barry, our Chief Financial Officer. Scott Greenstein, our President and Chief Content Officer, will join Jennifer and Tom to take your questions during the Q&A portion of this call.

謝謝大家，大家早安。歡迎參加 SiriusXM 2023 年第二季財報電話會議。今天，我們將準備我們執行長 Jennifer Witz 的演講；以及我們的財務長湯姆·巴里 (Tom Barry)。我們的總裁兼首席內容官斯科特·格林斯坦（Scott Greenstein）將與詹妮弗和湯姆一起在本次電話會議的問答部分回答您的問題。

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 Sirius XM's SEC filings in today's earnings release. We advise listeners to not rely unduly on forward-looking statements and disclaim any intent or obligation to update them.

我想提醒大家，電話會議期間所做的某些陳述可能是前瞻性陳述，該術語的定義見1995 年《私人證券訴訟改革法案》。 ，以及必然依賴可能不正確或不精確的假設、數據或方法。此類前瞻性陳述存在風險和不確定性，可能導致實際結果出現重大差異。有關這些風險和不確定性的更多信息，請查看 Sirius XM 在今天的財報中向 SEC 提交的文件。我們建議聽眾不要過度依賴前瞻性陳述，並否認任何更新這些陳述的意圖或義務。

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.

在我們開始時，我想提醒我們的聽眾，今天的電話會議將包括有關實際結果和調整後結果的討論。所有對調整後經營績效的討論均排除了股票薪酬的影響。

With that, I'll hand the call over to Jennifer.

這樣，我就把電話轉給詹妮弗。

Thanks, Hooper, and good morning, everyone. Thank you for joining us. We're pleased with our accomplishments this quarter and remain on track to meet the guidance we set forward for the 2023 fiscal year, including our newly increased free cash flow guidance. Our strong second quarter performance reflected most prominently in our EBITDA growth, significant cash generation and sustained low churn at 1.5%, reaffirms our consumer value proposition and the enduring appeal of our differentiated business model in audio entertainment.

謝謝胡珀，大家早安。感謝您加入我們。我們對本季所取得的成就感到滿意，並將繼續實現我們為 2023 財年設定的指導，包括我們新增加的自由現金流指導。我們強勁的第二季業績最突出地體現在我們的EBITDA 成長、大量現金產生和1.5% 的持續低流失率，重申了我們的消費者價值主張以及我們在音頻娛樂領域差異化業務模式的持久吸引力。

We closed the quarter with over 34 million total subscribers to our flagship SiriusXM service and as we expected, we saw a meaningful sequential improvement in self-pay net subscriber additions compared to the first quarter. The improvement in auto trial starts that began in the first quarter continued into the second quarter and while producing an increase in vehicle-related churn still sets us up for continued improvements in subscriber performance and a positive back half of the year.

本季結束時，我們的旗艦 SiriusXM 服務的訂戶總數超過 3,400 萬，正如我們預期的那樣，與第一季相比，自付費用淨訂戶增量出現了有意義的連續改善。從第一季開始的汽車試用開始的改善一直持續到第二季​​度，儘管汽車相關的客戶流失率有所增加，但仍然為我們的訂戶績效持續改善和今年下半年的積極發展奠定了基礎。

I'm also pleased to report our ad revenue was in line with our expectations which in today's choppy market is a testament to the strength of our sales offering, including our robust podcast content network and in-demand suite of programmatic solutions. And while we're cautiously optimistic the second half will see year-over-year improvement in ad revenue, there are still many variabilities in the marketplace, we will be watching closely. It appears at this time that more substantial gains in the ad market will not come before 2024.

我還很高興地報告，我們的廣告收入符合我們的預期，在當今動盪的市場中，這證明了我們銷售產品的實力，包括我們強大的播客內容網絡和受歡迎的程序化解決方案套件。儘管我們對下半年廣告收入將比去年同期改善持謹慎樂觀態度，但市場仍存在許多變數，我們將密切關注。目前看來，廣告市場在 2024 年之前不會有更大的成長。

The quarter saw strong momentum behind our strategic investments as well, with work accelerating behind the scenes in support of our Next Generation SiriusXM product experience planned to roll out later this year. We're bullish on our business transformation to meet the consumer demands of tomorrow, particularly those of younger audience segments. We're confident that our programming lineup is truly unparalleled, and now we must address price, control and discovery and provide even greater connection between experiences in car and on streaming devices to create an even stronger value proposition for our subscribers and to bring new listeners into our ecosystem.

本季我們的策略投資也呈現強勁勢頭，幕後工作加速推進，以支持我們計劃於今年稍後推出的下一代 SiriusXM 產品體驗。我們看好我們的業務轉型，以滿足未來消費者的需求，特別是年輕受眾群的需求。我們相信我們的節目陣容確實是無與倫比的，現在我們必須解決價格、控制和發現問題，並在汽車體驗和串流媒體設備體驗之間提供更緊密的聯繫，為我們的訂閱者創造更強大的價值主張並吸引新的聽眾進入我們的生態系統。

Our talented team of engineers are nearing the finish line with a complete refactor of our tech stack built from the ground up in record time. In addition to our own proprietary tools and technologies, a key component of this build is leveraging the best systems and solutions on the market to accelerate our time line and give us the backing we need to continue to innovate and iterate quickly.

我們才華橫溢的工程師團隊即將在創紀錄的時間內對我們的技術堆疊進行全面重構，從而接近終點線。除了我們自己的專有工具和技術之外，此構建的一個關鍵組成部分是利用市場上最好的系統和解決方案來加快我們的時間線，並為我們提供持續創新和快速迭代所需的支持。

Within AI, for example, we're both tapping into our own growing rich data environment as well as utilizing salesforce's marketing and data clouds to supercharge our MarTech, allowing us to engage current and potential trialers and subscribers with highly personalized campaigns that increase early engagement and strengthen listening habits. We're excited about the upcoming platform launch and look forward to sharing more details, including a preview of the new app and a glimpse into the cutting-edge features to come in car at a press event we're planning to host in New York this fall. Stay tuned for more details to follow.

例如，在人工智慧領域，我們既利用自己不斷成長的豐富資料環境，又利用salesforce 的行銷和資料雲來增強我們的行銷技術，使我們能夠透過高度個人化的活動吸引當前和潛在的試用者和訂閱者，從而提高早期參與度並加強傾聽的習慣。我們對即將推出的平台感到興奮，並期待分享更多細節，包括新應用程式的預覽以及我們計劃在紐約舉辦的新聞發布會上一睹汽車中的尖端功能今年秋天。請繼續關注後續更多詳細資訊。

In parallel with the product work as part of our go-to-market strategy, we're evaluating our content packages and pricing with an expectation that we can better appeal to each of our target segments and in doing so, continue to grow our subscriber base, revenue and profitability. This research will help us evolve our pricing strategy in 2024 and beyond.

在作為我們進入市場策略一部分的產品工作的同時，我們正在評估我們的內容包和定價，期望我們能夠更好地吸引我們的每個目標細分市場，並在此過程中繼續增加我們的訂戶基礎、收入和盈利能力。這項研究將幫助我們制定 2024 年及以後的定價策略。

As we continue to embark on this significant evolution to strategically realign SiriusXM for future growth, we're seeing strong indicators in early testing that we're on the right path. For example, we know habits are formed early and engagement in the first week of our streaming trial is a critical indicator of longer-term retention. Through an ongoing series of initiatives, we're happy to share that we experienced record high week 1 stream rates this past quarter. Outperformance came from improved audience targeting, stronger value prop alignment with our user messaging and the launch of more personalized onboarding journeys.

隨著我們繼續著手這一重大變革，從策略上重新調整 SiriusXM 以實現未來的成長，我們在早期測試中看到了強有力的跡象，表明我們正走在正確的道路上。例如，我們知道習慣是很早就形成的，而串流媒體試驗第一週的參與度是長期保留的關鍵指標。透過一系列持續的舉措，我們很高興與大家分享，上個季度我們的第一週直播速率創下了歷史新高。出色的表現來自於改進的受眾定位、與我們的用戶訊息傳遞更緊密的價值主張以及推出更個人化的入職旅程。

Furthermore, we're getting much more efficient at capturing customers with our streaming cost per acquisition down 20% from a year ago, and we're pacing to drive the same number of streaming-only trial starts with a significantly reduced marketing spend. We expect these better engagement trends and lower acquisition costs will only improve as we launch our new platform later this year.

此外，我們在吸引客戶方面變得更加高效，每次獲取的串流媒體成本比一年前下降了 20%，我們正在努力推動相同數量的純串流試用，同時大幅減少行銷支出。我們預計，隨著我們今年稍後推出新平台，這些更好的參與趨勢和更低的購買成本只會得到改善。

We also continue to see data that reinforces the significance of our app as an accelerant to in-car conversion with significantly higher conversion rates across segments, demographics and regions for those who stream.

我們也繼續看到數據強化了我們的應用程式作為車內轉換促進劑的重要性，對於串流媒體用戶來說，跨細分、人口統計和地區的轉換率顯著提高。

Lastly, we saw a strong usage of SiriusXM on CarPlay and Android Auto in the quarter, with streaming through these platforms, up over 30% year-over-year. The widening adoption of these technologies reinforces our broad and adaptive approach to reaching new subscribers and accommodating their listening preferences.

最後，我們看到本季 SiriusXM 在 CarPlay 和 Android Auto 上的強勁使用，透過這些平台進行串流播放，較去年同期成長超過 30%。這些技術的廣泛採用強化了我們廣泛且適應性強的方法來吸引新用戶並滿足他們的聆聽偏好。

Turning to our in-car business. I'd like to share some highlights and lay out a few strategic -- a few key strategic areas where we see opportunities for additional growth with OEMs. First, while I've spent a lot of time talking about our strategic evolution, I want to reiterate that the car funnel remains a strong and significant business for us. These 2 tracks are not mutually exclusive. In fact, as we dive deeper into our audience segmentation work, we've been able to confirm that nearly 1/3 of our in-car trials are coming from growth segments, which we've previously shared represent about 1/4 of the market at about 50 million to 55 million adults in the U.S. These audiences tend to be younger and more diverse compared to our average in car subscriber today. They're inclined to pay for more than 1 audio service. They are looking for a variety of premium audio content and our new platform will address gaps in our offering versus the expectations of these audiences.

轉向我們的車載業務。我想分享一些亮點並列出一些策略——我們看到與原始設備製造商額外成長的機會的幾個關鍵策略領域。首先，雖然我花了很多時間談論我們的策略演變，但我想重申，汽車通路對我們來說仍然是一項強大而重要的業務。這兩條軌道並不互相排斥。事實上，隨著我們更深入研究受眾細分工作，我們已經能夠確認近 1/3 的車內試驗來自成長細分市場，我們之前分享過的成長細分市場占到了約 1/4。的汽車市場約有5,000 萬至5,500 萬成年人。他們傾向於為不只一種音訊服務付費。他們正在尋找各種優質音訊內容，我們的新平台將彌補我們的產品與這些受眾的期望之間的差距。

We remain focused on enhancing our great position in the car, most recently exemplified by our new agreement with Volvo that will continue SiriusXM as a standard feature across Volvo Cars lineup of vehicles and will facilitate the debut of SiriusXM with 360L and the automakers all new and fully electric 2024 Volvo EX30 and EX90 SUVs. EVs overall represent a significant and growing opportunity for the company. And while we have more work to do with the newer EV-only manufacturers, we're widely available in 49 different EV models sold in the U.S. market, and our long-standing OEM partners include SiriusXM in their electric vehicles at penetration rates consistent with how they include the service in their gas-powered vehicles.

我們仍然致力於增強我們在汽車領域的領先地位，最近我們與沃爾沃達成的新協議就是例證，該協議將繼續將SiriusXM 作為沃爾沃汽車系列車輛的標準功能，並將促進SiriusXM 與360L 的首次亮相以及所有新車型和汽車製造商的推出。總體而言，電動車對公司來說是一個重要且不斷成長的機會。雖然我們與較新的純電動車製造商還有更多工作要做，但我們在美國市場上銷售的49 種不同電動車型號中廣泛使用，而且我們的長期OEM 合作夥伴在其電動車中採用了SiriusXM，滲透率與他們如何將這項服務納入其汽油動力車輛中。

The headway we're making within the EV market, coupled with increased 360L penetration rates, presents opportunities to market the stickier interactive features and capabilities available in vehicles connected with our streaming content delivery solutions. These features, including extra channels, Pandora artist stations and enhanced recommendations. We'll begin to see greater consistency across the different car infotainment systems as adoption of the Android Automotive operating system within our 360L platform begins to roll out across various automakers later this year. All this work demonstrates the ways we're continuously enhancing the in-car experience and finding ways to improve our conversion funnel. Overall, I couldn't be more excited for our future as we continue to own the car as the #1 premium audio service.

我們在電動車市場取得的進展，加上 360L 滲透率的提高，為行銷與我們的串流內容交付解決方案相連的車輛中提供的更具黏性的互動特性和功能提供了機會。這些功能包括額外頻道、潘朵拉藝術家站和增強推薦。隨著今年稍後各汽車製造商開始在我們的 360L 平台中採用 Android Automotive 作業系統，我們將開始看到不同汽車資訊娛樂系統之間的更大一致性。所有這些工作都展示了我們不斷增強車內體驗並尋找改善轉換管道的方法。總的來說，我對我們的未來感到非常興奮，因為我們繼續擁有這輛車作為排名第一的高級音訊服務。

Moving on to content. I want to highlight a few recent launches we're incredibly proud of that speak to the relevance of our platform with award-winning entertainment brands and the biggest artists including the launch of 8 time Grammy Award winner, Carrie Underwood's new full-time artist channel, Carrie's Country. The channel went live from Nashville in early June and quickly landed as one of our top country music streaming channels. As the country music industry continues to experience a surge in popularity, we're excited to be the home for some of the biggest names in the category.

繼續內容。我想強調一下最近推出的一些讓我們感到非常自豪的產品，這些產品說明了我們的平台與屢獲殊榮的娛樂品牌和最大的藝術家的相關性，其中包括8 屆格萊美獎得主Carrie Underwood 的全新全職藝術家頻道的推出，嘉莉的國家。該頻道於六月初在納許維爾上線，並迅速成為我們頂級鄉村音樂串流頻道之一。隨著鄉村音樂產業的受歡迎程度持續飆升，我們很高興成為該類別中一些最知名人士的家園。

We're also seeing a growing demand on our platform for Latin music and kids programming and continue to expand our content portfolio and promotions around these genres. For example, last month, we launched Moonbug Radio, an exclusive new year-round channel in collaboration with the award-winning entertainment company behind some of the most popular kids content today. It's a strong addition and contributed to an uptick in the percentage of listeners consuming kids' content. We also opened the doors of our new state-of-the-art complex in Miami with a week long celebration in May headlined by Howard Stern, along with special events and performances across several SiriusXM channels and the launch of a brand-new Latin pop channel, Hits Uno. The Miami studio has quickly become a home for Miami natives like Pitbull and DJ Khaled and a Mecca for Latin artists like Becky G, Anitta, Prince Royce, and Tito El Bambino to stop by for special appearances and performances, all of which have contributed to growth in the percentage of listeners consuming Latin music across a variety of different genres.

我們也看到對我們平台的拉丁音樂和兒童節目的需求不斷增長，並繼續圍繞這些流派擴大我們的內容組合和促銷活動。例如，上個月，我們推出了 Moonbug Radio，這是一個獨家的全年頻道，與當今一些最受歡迎的兒童內容背後的屢獲殊榮的娛樂公司合作。這是一個強而有力的補充，有助於提高消費兒童內容的聽眾比例。我們還在邁阿密開設了最先進的新綜合大樓，並於5 月份舉辦了由霍華德·斯特恩(Howard Stern) 領銜的為期一周的慶祝活動，並在多個SiriusXM 頻道舉辦了特別活動和表演，並推出了全新的拉丁流行音樂頻道，點擊 Uno。邁阿密工作室很快就成為 Pitbull 和 DJ Khaled 等邁阿密本地人的家，以及 Becky G、Anitta、Prince Royce 和 Tito El Bambino 等拉丁藝術家駐足觀看特別亮相和表演的聖地，所有這些都為消費各種不同流派的拉丁音樂的聽眾比例有所增長。

Lastly, time spent listening to sports content continues to climb and demonstrates that consumers love SiriusXM as a one-stop audio home for all major sports. We recently saw a strong engagement with our NBA play-by-play coverage during the playoffs and the percentage of listeners tuning in to PGA Tour Radio more than doubled during the quarter.

最後，收聽體育內容的時間持續增加，這表明消費者喜歡 SiriusXM 作為所有主要體育賽事的一站式音訊之家。最近，我們發現季後賽期間 NBA 逐場比賽報告的參與度很高，本季收聽 PGA 巡迴廣播電台的聽眾比例增加了一倍以上。

Moving on to our advertising business. Within podcasting, we're now starting to see the true potential of our podcast business as it reaches scale, with continued room for long-term growth fueled by increasing advertiser demand, expansion of our ad tech solutions and the long tailwind from greater consumer adoption. With several years in the podcast business now under our belt, we have a clear path to profitable growth with increasing margins as the economics of podcast deals improved across the industry. We appeal to creators through our platform-agnostic representation and distribution and are seeing many major brand advertisers embracing podcasting given our best-in-class ad solutions, including brand suitability tools, targeting and measurement capabilities.

繼續我們的廣告業務。在播客領域，隨著廣告商需求的增加、廣告技術解決方案的擴展以及消費者採用率的提高所帶來的長期推動力，我們現在開始看到播客業務的真正潛力，因為它達到了規模，且持續存在長期成長的空間。我們在播客業務上已有多年經驗，隨著整個產業播客交易經濟性的改善，我們有一條清晰的獲利成長之路，利潤率不斷提高。我們透過與平台無關的展示和分發來吸引創作者，並且看到許多主要品牌廣告商都在接受播客，因為我們擁有一流的廣告解決方案，包括品牌適宜性工具、定位和衡量功能。

In fact, in the first half of 2023, we have commitments booked with over 2,600 podcast campaigns across more than 100 Fortune 500 brands. Additionally, we remain focused on the long tail growth opportunity within our programmatic advertising business.

事實上，在 2023 年上半年，我們已為 100 多個財富 500 強品牌預訂了 2,600 多個播客活動。此外，我們仍然專注於程序化廣告業務中的長尾成長機會。

We're also currently in testing with a new suite of AI advertising tools that will help us optimize campaigns from planning through execution. This will lower the barrier of entry to audio and democratize access for small businesses while offering faster smarter solutions to empower larger brands to create and execute audio campaigns more seamlessly and efficiently. We look forward to sharing more details on future calls.

我們目前也正在測試一套新的人工智慧廣告工具，這將有助於我們優化從規劃到執行的行銷活動。這將降低音訊的進入門檻，並使小型企業的存取民主化，同時提供更快、更聰明的解決方案，使更大的品牌能夠更無縫、更有效率地創建和執行音訊活動。我們期待在未來的通話中分享更多詳細資訊。

And while there remains uncertainty in the broader marketplace, most notably illustrated by the television upfronts where marketers were hesitant to commit their budgets and seeking lower CPMs, we're cautiously optimistic about our continued prospects with audio advertising offering a more cost-effective and attractive solution to marketers looking for both broad reach and targeted audiences.

儘管更廣泛的市場仍然存在不確定性，最明顯的是電視前期行銷人員對承諾預算和尋求更低的每千次展示費用猶豫​​不決，但我們對音訊廣告提供更具成本效益和吸引力的持續前景持謹慎樂觀態度。

Again, I'm extremely pleased with the results of our second quarter. We continue to delight consumers with new audio entertainment experiences and made significant improvements to our commercial business while work accelerated behind the scenes as we gear up for our launch later this year. The early indicators we're seeing today give me more conviction than ever in our differentiated audio experience and the massive opportunity that lays ahead.

再次，我對第二季的結果非常滿意。我們繼續為消費者提供新的音訊娛樂體驗，並對我們的商業業務做出重大改進，同時為今年稍後的推出做好準備，幕後工作也加快了。我們今天看到的早期指標讓我比以往任何時候都更加相信我們差異化的音訊體驗和未來的巨大機會。

I'll now turn it over to Tom, who will go through the financials in more detail.

我現在將其交給湯姆，他將更詳細地介紹財務狀況。

Thank you, Jennifer, and good morning, everyone. As Jennifer noted, we had a very solid second quarter and we're in good shape as we head into the second half of the year. We're reiterating our revenue and adjusted EBITDA guidance and increasing our free cash flow guidance to $1.15 billion based on lower expected cash taxes and improved working capital resulting in a higher free cash flow conversion.

謝謝你，詹妮弗，大家早安。正如詹妮弗指出的那樣，我們的第二季度表現非常穩健，並且在進入下半年時我們的狀態良好。我們重申我們的收入和調整後的 EBITDA 指導，並將我們的自由現金流指引提高至 11.5 億美元，這是基於較低的預期現金稅和改善的營運資本導致更高的自由現金流轉換。

In the quarter, we recorded $2.25 billion of revenue, relatively flat across the lines of business compared to the prior year. Subscriber revenue was slightly higher driven by increased self-pay revenue, while advertising revenue decreased as a result of lower Pandora ad hours and sell-through. In the quarter, we're pleased with the $445 million of advertising revenue delivered considering the ongoing headwinds. We continue to expect sequential improvements in ad revenue with continued growth anticipated in podcasting and programmatic.

本季度，我們錄得 22.5 億美元的收入，與前一年相比，各業務線的收入相對持平。由於自付費收入增加，訂戶收入略有增加，而廣告收入則因潘朵拉廣告時間和銷售量減少而下降。考慮到持續的不利因素，我們對本季 4.45 億美元的廣告收入感到滿意。我們繼續預期廣告收入將持續改善，播客和程序化預計將持續成長。

Adjusted EBITDA of $702 million increased by 3% year-over-year and 12% sequentially, consistent with our expectations. The year-over-year increase was driven by reduced sales and marketing expenses, partially offset by higher revenue share and royalties and G&A. Total cash operating expenses in the second quarter were down 2% year-over-year. The company's focus on improving efficiency and cost structure contributed to these benefits and we're continuing to pursue areas that will enhance productivity and reduce expenses.

調整後 EBITDA 為 7.02 億美元，年增 3%，季增 12%，與我們的預期一致。同比成長是由銷售和行銷費用減少所推動的，但部分被收入份額、特許權使用費和一般管理費用的增加所抵消。第二季現金營運支出總額較去年同期下降 2%。公司對提高效率和成本結構的關注促成了這些效益，我們將繼續致力於提高生產力和減少開支的領域。

Turning to the segments. The SiriusXM segment delivered $1.7 billion in revenue, which was relatively flat year-over-year. Subscriber and equipment revenue during the quarter saw a slight increase of 1% and 4%, respectively, year-over-year. And as expected, given broader market conditions, advertising revenue in the SiriusXM segment was down approximately 8% year-over-year as broadcast ad revenue lagged digital. The total ARPU for the quarter was $15.66, up modestly year-over-year and up 2.4% from the first quarter of 2023. The increase in ARPU can primarily be attributed to price increase on certain of our full price plans implemented in March.

轉向細分市場。 SiriusXM 部門實現了 17 億美元的收入，與去年同期相比相對持平。本季用戶營收和設備營收年增 1% 和 4%。正如預期的那樣，鑑於更廣泛的市場狀況，SiriusXM 細分市場的廣告收入同比下降約 8%，因為廣播廣告收入落後於數位廣告收入。本季的 ARPU 總額為 15.66 美元，年比小幅成長，較 2023 年第一季成長 2.4%。

Gross profit in the SiriusXM segment for the quarter remained relatively flat at $1.05 billion, representing a margin of 61%. Additionally, in the quarter, we recorded a 16% decrease in subscriber acquisition cost per installation compared to prior year.

SiriusXM 業務本季的毛利相對持平，為 10.5 億美元，利潤率為 61%。此外，在本季度，我們的每次安裝用戶獲取成本比去年同期下降了 16%。

In this Pandora and Off-Platform segment, total revenue of $528 million remained nearly flat compared to prior year period. Advertising revenue in the segment of $400 million saw a modest decrease of 1% year-over-year. In the quarter, Pandora ad hours were 2.73 billion, declined just 4% year-over-year and supported by a 3% increase in average hours per ad active user to 22 hours per month. Softness in owned and operated revenue was partially offset by 13% year-over-year growth in podcasting and off-platform revenue.

在 Pandora 和平台外業務領域，總收入為 5.28 億美元，與去年同期相比幾乎持平。 4 億美元部分的廣告收入較去年同期小幅下降 1%。本季度，Pandora 廣告時長為 27.3 億小時，年比僅下降 4%，而每位廣告活躍用戶的平均廣告時間增加了 3%，達到每月 22 小時。自有和營運收入的疲軟被播客和平台外收入年增 13% 所部分抵銷。

Pandora gross profit in the Pandora and Off-Platform segment was $152 million, down 9% year-over-year, but up 37% quarter-over-quarter with a margin of 29%. The decline was due to seasonally light ad revenue, ad market challenges and the CPI inflator to web streaming royalties. However, we expect this margin to improve for the remainder of the year.

Pandora 潘朵拉和平台外業務的毛利為 1.52 億美元，年減 9%，但較上季成長 37%，利潤率為 29%。下降的原因是廣告收入季節性清淡、廣告市場面臨挑戰以及網路串流版稅的消費物價指數上漲。然而，我們預計今年剩餘時間這一利潤率將有所改善。

Across the company, we continue with our transformation efforts optimizing the cost structure, prudently investing in our product and content and leveraging technology and automation to simplify our business in interaction with our listeners. We have a number of ongoing initiatives underway across the company, including early results that reduced second quarter customer service costs while improving our CSAT scores and our operating efficiency. Additionally, we're seeing the benefits of our facility optimization initiatives and have reduced our real estate footprint by 38% relative to our pre-COVID floor space. Our optimization strategy will position us well to respond to the marketplace as macroeconomic factors improve.

在整個公司範圍內，我們繼續進行轉型工作，優化成本結構，謹慎投資我們的產品和內容，並利用技術和自動化來簡化我們與聽眾互動的業務。我們在整個公司範圍內正在進行多項舉措，包括降低第二季度客戶服務成本、同時提高我們的 CSAT 分數和營運效率的早期成果。此外，我們也看到了設施優化措施的好處，並且相對於新冠疫情之前的建築面積，我們的房地產佔地面積減少了 38%。隨著宏觀經濟因素的改善，我們的優化策略將使我們能夠更好地應對市場。

During the quarter, we generated $323 million of free cash flow, down from $435 million year-over-year due to increased cash taxes paid of $48 million, higher satellite CapEx of $20 million driven by the SiriusXM 11 and 12 construction as well as higher non-satellite CapEx of $9 million related to the Next Generation SiriusXM experience launch. We continue to expect free cash flow to be strongly weighted to the fourth quarter, given the normal seasonality in our business combined with the timing of royalty, satellite and interest payments.

本季度，我們產生了3.23 億美元的自由現金流，低於去年同期的4.35 億美元，原因是支付的現金稅增加了4800 萬美元，SiriusXM 11 和12 建設以及更高的衛星建設導致衛星資本支出增加了2000 萬美元。考慮到我們業務的正常季節性以及特許權使用費、衛星和利息支付的時間，我們仍然預計第四季度的自由現金流將受到強烈影響。

And finally, we continue to deliver our capital allocation strategy and maintained our targeted leverage ratio of low to mid-3s, ending the quarter at 3.4x. In the second quarter of 2023, we returned approximately $229 million to shareholders, comprised of $94 million of dividends and $135 million of stock repurchase, about double the amount repurchased in the first quarter. We remain focused on returning capital to our shareholders in a prudent and disciplined manner.

最後，我們繼續實施資本配置策略，並將目標槓桿率維持在 3 左右的低至中水平，本季結束時槓桿率為 3.4 倍。 2023 年第二季度，我們向股東返還約 2.29 億美元，其中包括 9,400 萬美元的股息和 1.35 億美元的股票回購，約為第一季回購金額的兩倍。我們仍然專注於以審慎和自律的方式向股東返還資本。

Moving forward, we continue to value a strong balance sheet that provides us with the flexibility to navigate changing market environments while executing on our strategy to optimize our cost structure, prioritize product and content investments and integrate innovation at all facets of the company.

展望未來，我們繼續重視強大的資產負債表，它使我們能夠靈活地應對不斷變化的市場環境，同時執行我們的策略，優化成本結構，優先考慮產品和內容投資，並在公司的各個方面整合創新。

With that, I'll turn it over to the operator for Q&A.

這樣，我會將其轉交給接線員進行問答。

(Operator Instructions) Our first question is from Steven Cahall with Wells Fargo.

（操作員說明）我們的第一個問題來自富國銀行的 Steven Cahall。

Jennifer, as you look to relaunch the app experience. I think the hope is that you'll get more engagement in discovery, both in and out of the car. And I think the app already has a lot of incremental stations, music stations that aren't on satellite. And if engagement is going to benefit from that, I think there's also some skippability with songs on those. So I'm just wondering how we should think about as you look to relaunch the app in the back half of the year? What the gross margins start to look like as that streaming business builds? Are the royalty structures materially different than what you have in car on the satellite side? I mean you talked a little bit about lower customer acquisition costs. Maybe you can just help us think about streaming margins overall versus satellite margins.

Jennifer，您希望重新啟動應用程式體驗。我認為我們希望您能夠更多地參與車內和車外的探索。我認為該應用程式已經有很多增量電台，即不在衛星上的音樂電台。如果參與度能從中受益，我認為這些歌曲也有一些可跳過性。所以我只是想知道，當您希望在下半年重新推出該應用程式時，我們應該如何考慮？隨著串流媒體業務的建立，毛利率開始是什麼樣子？特許權使用費結構與衛星端汽車的特許權使用費結構是否有重大差異？我的意思是，您談到了降低客戶獲取成本。也許你可以幫助我們考慮串流媒體的整體利潤與衛星電視的利潤。

And then secondly, churn was excellent, 1.5% as the trial funnel improves. What kind of upward pressure do you expect from vehicle churn maybe in the back half of the year of net adds start to go positive? And relatedly, any comments you could make on how conversion is trending because I think it's been a bit choppier between model mix and demo mix in the post-COVID period.

其次，隨著試用漏斗的改善，流失率非常好，為 1.5%。當您預計下半年淨增量開始轉正時，車輛流失會帶來什麼樣的上行壓力？與此相關的是，您可以對轉換趨勢發表任何評論，因為我認為在後疫情時期，模型組合和演示組合之間的情況有點不穩定。

Sure. Thanks, Steven. So taking the margin question first, we're investing in this platform to support both the streaming business, which will enable us, we believe, to improve our streaming subscribers who listen in and outside of the car, but also to improve retention and conversion among our in-car subscribers because when they stream, we see higher conversion and retention rates. So what we're building that will come out, as we've discussed later this year and roll through with future releases into next year are going to support both sides of the business. But to your point on streaming margins, really, there's a couple of dynamics. On average, our streaming licensing, our music licensing and our customer service and billing costs, which include sort of the app store fees we have to the extent that customers are coming through the app stores directly are, in general, lower than what we see on the satellite side for our music licensing, our OEM revenue share and our customer service and billing.

當然。謝謝，史蒂文。因此，首先考慮利潤問題，我們投資這個平台是為了支持串流媒體業務，我們相信，這將使我們能夠改善在車內和車外收聽的串流媒體訂閱者，同時也提高保留率和轉換率在我們的車內訂閱者中，因為當他們進行串流媒體播放時，我們看到更高的轉換率和保留率。因此，正如我們在今年稍後討論的那樣，我們正在建立的產品將會推出，並將在明年推出未來的版本，這將為業務雙方提供支援。但就您關於串流媒體利潤的觀點而言，確實存在一些動態。平均而言，我們的串流媒體許可、音樂許可以及客戶服務和計費成本（其中包括我們在客戶直接透過應用程式商店訪問時所收取的應用程式商店費用）總體上低於我們所看到的水平在衛星方面我們的音樂許可、我們的OEM 收入份額以及我們的客戶服務和計費。

So margins are a bit stronger from a percentage standpoint, pricing is lower, right? Our streaming-only subscriptions are today about $10.99. And our core package on the in-car side, which also includes streaming access is $18.99. So overall, we feel really good about the business model, both on the streaming side and on the in-car side and expect to probably have add more subscribers on the streaming side as we move forward as we see more growth there.

因此，從百分比的角度來看，利潤率更高，定價更低，對嗎？目前，我們的串流訂閱價格約為 10.99 美元。我們車內的核心套餐（還包括串流媒體訪問）價格為 18.99 美元。因此，總的來說，我們對串流媒體端和車內端的商業模式感覺非常好，隨著我們看到串流媒體方面的更多增長，我們預計可能會在串流媒體方面增加更多訂戶。

And to your question on churn. Yes, another great quarter. We're really pleased with our performance there. We have very solid voluntary, involuntary churn, no signs of really any consumer weakness. We're continuing to roll through the rate increase on full price packages, and we have not seen any disruptions in terms of the voluntary churn. You noted vehicle related. So we did see an uptick in vehicle related in the last quarter. Auto sales have been getting stronger. The estimates for the rest of the year are -- typically they lag, and they would suggest if the full year was $14.8 million or $15 million that auto sales would actually decline on the new car side in the next 2 quarters. So we're cautious about how that will evolve. We believe that there are definite signs with higher inventory levels and otherwise that auto sales will perform well in the second half.

關於您關於客戶流失的問題。是的，又是一個偉大的季度。我們對我們在那裡的表現非常滿意。我們有非常堅實的自願、非自願的流失，沒有任何消費者疲軟的跡象。我們正在繼續提高全價套餐的費率，並且我們沒有看到自願流失方面出現任何中斷。您注意到與車輛相關。因此，我們確實看到上個季度與車輛相關的業務增加。汽車銷售越來越強勁。今年剩餘時間的估計通常會滯後，他們會建議，如果全年銷量為 1,480 萬美元或 1,500 萬美元，那麼未來 2 個季度新車銷量實際上會下降。因此，我們對事情的發展持謹慎態度。我們認為，庫存水準上升已是明顯跡象，下半年汽車銷售將表現良好。

But to your point, to the extent, there's a very strong fourth quarter with the unique dynamics of our funnel, we would likely see more vehicle-related churn there, but see the conversions rolling through into next year. But our guidance reflects those trends, and we're very focused on doing exactly what we said we would do with improving quarters of net adds throughout the year and the back half being positive.

但就你的觀點而言，第四季度的表現非常強勁，我們的漏斗具有獨特的動態，我們可能會看到更多與車輛相關的客戶流失，但會看到轉換延續到明年。但我們的指導反映了這些趨勢，我們非常專注於完全按照我們所說的那樣去做，改善全年各季度的淨增長，並在下半年實現積極的增長。

And was there one other part to your question?

您的問題還有其他部分嗎？

No, I think you touched on it all. Yes, conversion rate. Yes.

不，我想你已經談到了這一切。是的，轉換率。是的。

I just briefly touch on conversion rates. We see a fair amount of stability right now. We're very eager for what's to come with the new platform, but just ahead of that, we have a number of pilots and tests in market, leveraging data from 360L to improve personalized marketing. We're leveraging new channels that are really only possible through 360L. We have an in-vehicle messaging capability with one of our OEMs, and we're providing easier access to streaming, so we can again get our in-car trialers to stream earlier in trial outside of the car to help with discovery and navigation. So conversion rates have been pretty stable right now.

我只是簡單地談一下轉換率。我們現在看到相當穩定的情況。我們非常渴望新平台帶來的功能，但在此之前，我們已經在市場上進行了多次試點和測試，利用 360L 的數據來改善個人化行銷。我們正在利用實際上只有透過 360L 才能實現的新管道。我們與我們的原始設備製造商之一擁有車載訊息傳輸功能，並且我們正在提供更輕鬆的串流媒體訪問，因此我們可以再次讓我們的車內試用者在車外的試驗中儘早進行串流媒體傳輸，以幫助發現和導航。所以目前轉換率相當穩定。

Our next question is from Jessica Reif Ehrlich with Bank of America.

我們的下一個問題來自美國銀行的 Jessica Reif Ehrlich。

A couple of different things. So Jennifer, can you maybe -- if you can give us more color on what you're thinking about pricing changes? Are these different packages that you'll introduce with the new streaming offer? And how does listening differ inside and outside the car in terms of like music, talk, news, sports? So that's the first thing.

有一些不同的事情。那麼，詹妮弗，您能給我們更多關於您對定價變化的想法嗎？您將在新的串流媒體服務中引入這些不同的套餐嗎？在音樂、談話、新聞、運動等方面，車內和車外的聆聽有何不同？這是第一件事。

And then the second, I'm just wondering if the -- you talk a lot about advertising. It sounds like you guys are confident that it will improve. Are you seeing signs of that? And what will be the biggest drivers in podcasting or the non-music platform?

然後第二個問題，我只是想知道您是否談論了很多有關廣告的內容。聽起來你們對它會有所改善充滿信心。你看到這樣的跡象了嗎？播客或非音樂平台的最大驅動力是什麼？

And then the last thing, sorry for so much. But podcasting the content, there seems to look like there's a lot going on in the industry. What are you seeing in terms of cost and competition for content when it seems like others are maybe pulling back a bit?

最後一件事，抱歉這麼多。但從播客內容來看，這個行業似乎發生了很多事情。當其他人似乎有所退縮時，您對內容的成本和競爭有何看法？

Okay. Thanks, Jessica. I'll start with pricing. As you know, we use free trials when we bring people into the car funnel and also increasingly on the streaming side as well. And in the car funnel, we typically use introductory promotional prices to bring people into the self-pay subscription base. And I think where we've seen some pressure is with the identified growth segments and their interest at paying those full price rates that customers roll to after the introductory pricing period ends. And we believe that there is demand among those growth segments if we repackage and perhaps create packages with less content. And then we've done a fair amount of research on this, but now we're going to go through some testing in the next few months to actually prove this out.

好的。謝謝，傑西卡。我將從定價開始。如您所知，當我們將人們帶入汽車管道時，我們會使用免費試用，而且在串流媒體方面也越來越多。在汽車通路中，我們通常使用介紹性促銷價格來吸引人們進入自付費訂閱基礎。我認為，我們看到的一些壓力來自於已確定的成長細分市場，以及他們對支付客戶在介紹性定價期結束後轉向的全價利率的興趣。我們相信，如果我們重新包裝，或創造內容較少的包裝，這些成長領域就會有需求。然後我們對此做了相當多的研究，但現在我們將在接下來的幾個月內進行一些測試以實際證明這一點。

I mean the dynamic, obviously, that we need to make sure we sell for is that we don't see any of our current customers trading down to those packages. And we believe we have set a path here, but we do want to test some in-market packages to make sure that when we roll this out, there is that opportunity to maximize growth in both areas. But as I referenced earlier, we do have a lower price package in market in-streaming, and that has given us an opportunity to test with these lower -- potentially more diverse, younger and some lower income segments with that package and continue to do that.

顯然，我的意思是，我們需要確保我們的銷售目標是我們沒有看到任何現有客戶降價購買這些套餐。我們相信我們已經在這裡設定了一條道路，但我們確實想測試一些市場上的軟體包，以確保當我們推出它時，有機會最大限度地實現這兩個領域的成長。但正如我之前提到的，我們在市場串流媒體中確實有一個較低的價格套餐，這讓我們有機會用該套餐測試這些較低的套餐——可能更多樣化、更年輕和一些低收入群體，並繼續這樣做那。

I think the question on listening differences, so one thing we do see is that when -- not surprisingly, when our customers listen to a broader set of content across genres, music and non-music, their retention is higher. And of course, it has a lot to do with the breadth of the content that we have. We've talked a lot about how sports plays into that and a lot of our other news, politics, comedy, entertainment content is really critical in terms of driving retention. And we see similar dynamics both in the car and out of the car in terms of the level of music and nonmusic listening with perhaps a bit more nonmusic listening in our streaming service.

我認為問題在於聆聽差異，所以我們確實看到的一件事是，毫不奇怪，當我們的客戶聆聽更廣泛的跨流派、音樂和非音樂內容時，他們的保留率更高。當然，這與我們擁有的內容的廣度有很大關係。我們已經討論了很多關於體育如何發揮作用的問題，而我們的許多其他新聞、政治、喜劇、娛樂內容對於提高保留率確實至關重要。我們在車內和車外的音樂和非音樂聆聽水平上看到了類似的動態，在我們的串流媒體服務中可能有更多的非音樂聆聽。

With advertising, I'll turn it over to Tom to make some comments there.

至於廣告，我會把它交給湯姆在那裡發表一些評論。

Yes. Just Jessica, on the advertising side, our dynamic ad sales team has continued to face resiliently against the headwinds that are in the industry. So if you look at our individual businesses, SiriusXM side is down slightly at 1.5%, but it's lower spots and softness in the news and media space. Pandora is lower on streaming sell-through and demand which has hampered a little bit. But the reality is that growth of podcasting is making a significant contribution to the overall ad revenue. We continue to see strength in travel and tourism and telecom in the Pandora side.

是的。傑西卡，在廣告方面，我們充滿活力的廣告銷售團隊繼續頑強地應對行業中的逆風。因此，如果你看看我們的個別業務，SiriusXM 方面略有下降，為 1.5%，但它在新聞和媒體領域的位置較低且疲軟。潘朵拉的串流銷售和需求較低，這有點阻礙了。但現實情況是，播客的成長正在對整體廣告收入做出重大貢獻。我們繼續看到潘朵拉方面的旅行、旅遊和電信領域的實力。

Just skipping back to the strength on the podcast side, we continue to see growth with podcast RPMs up double digits this quarter, and the build-out of the podcast revenue channel has significantly helped our sales organization. We currently have 3 channels -- 3 revenue channels to sell across on the ad sales side, the satellite, the podcast and the streaming and our top 20 advertisers advertised on 2 of the 3 channels, 17 of the 20 advertised on 2 of the 3 channels. So the breadth of our product is strong and we consider that the rest of the year we'll continue to fight the headwinds that are in the marketplace, and we look for 2024 to be more robust in the industry, especially on the digital side.

回到播客方面的實力，我們繼續看到本季播客每千次展示收入成長兩位數，播客收入管道的建立極大地幫助了我們的銷售組織。我們目前有3 個管道——廣告銷售方面的3 個收入管道、衛星、播客和串流媒體，我們的前20 名廣告商在3 個管道中的2 個上做了廣告，20 個廣告商中有17 個在3 個頻道中的2 個上做了廣告。因此，我們產品的廣度很強，我們認為今年剩餘時間我們將繼續對抗市場中的逆風，我們預計 2024 年該行業將更加強勁，尤其是在數字方面。

Yes. And Scott, do you want to pick up podcasting?

是的。史考特，你想學播客嗎？

Yes, sure. So Jessica, a couple of things. The overall view is podcasting has remained relatively stable in terms of what's working. So for instance, the top 10 in podcasting and top 20 largely has the same podcast it had at least a year ago. And we have 2 of the top 10, 5 of the top 20 and 14 of the top 50 and when you look at some of the bigger ones, Audiochuck, NBC, Crooked, Coco, Freakonomics and all of those, we feel really good on our ability to market and get those out there, but more importantly, to monetize those. As Tom mentioned, I think our monetization is getting better all the time. And while content will never be science, this is the closest it's come as compared to the satellite.

是的，當然。傑西卡，有幾件事。總體觀點是，播客在有效方面保持相對穩定。舉例來說，播客排行榜前 10 名和前 20 名的播客基本上與至少一年前相同。我們有 2 個前 10 名、5 個前 20 名和 14 個前 50 名，當你看看一些較大的公司時，Audiochuck、NBC、Crooked、Coco、Freakonomics 等等，我們感覺非常好我們有能力進行行銷並將其推向市場，但更重要的是，將其貨幣化。正如湯姆所提到的，我認為我們的獲利能力一直在變得更好。雖然內容永遠不會是科學，但與衛星相比，這是最接近科學的。

Also the multiple distribution platforms. So when you look at the Tom Brady podcast, which started out that way, is now exclusive on SiriusXM. So our ability to look at distribution channels as well as advertising channels and find the optimum point to use on any of these gives us, I think, the flexibility we need. Obviously, if anything frees up, that matters or is emerging, we can be a player in that market, given our financial position. So we feel pretty good where we're in podcasting right now.

還有多個分發平台。因此，當您查看 Tom Brady 播客時，它一開始就是這樣的，現在是 SiriusXM 的獨家播客。因此，我認為，我們研究分銷管道和廣告管道並找到最佳使用點的能力為我們提供了所需的靈活性。顯然，如果有任何事情被釋放、重要或正在出現，考慮到我們的財務狀況，我們可以成為該市場的參與者。所以我們現在在播客方面感覺很好。

Our next question is from Jason Bazinet with Citi.

我們的下一個問題來自花旗銀行的 Jason Bazinet。

I know you guys have always been focused on the U.S. and Canada. But as the app becomes a bigger part of the narrative. Has there been any change in your thinking about sort of your geographic aspirations?

我知道你們一直關注美國和加拿大。但隨著應用程式成為敘述中更重要的一部分。您對地理抱負的看法有什麼改變嗎？

I think, Jason, we certainly are building a set of capabilities and underlying platform that could be used in other territories. So there is an opportunity there, probably more so in English-speaking areas. We have not pursued the licensing that would be required there. But also, we're just very focused at this stage in maximizing our opportunity in North America because we really believe that we have super -- we've been successful at super serving our core audience within those segments, largely with our in-car offering. And going forward, we have a lot more opportunity to tap into these growth segments that really represent another, like I said earlier, 50 million to 55 million adults in the U.S. And of course, there's incremental opportunity in Canada as well.

我認為，傑森，我們當然正在建立一套可以在其他領域使用的功能和底層平台。所以那裡有機會，在英語地區可能更是如此。我們尚未申請那裡所需的許可。而且，我們現階段非常專注於最大化我們在北美的機會，因為我們真的相信我們擁有超級——我們已經成功地為這些細分市場的核心受眾提供超級服務，主要是透過我們的車載產品奉獻。展望未來，我們有更多的機會進入這些真正代表另一個成長領域的機會，正如我之前所說，美國有 5,000 萬至 5,500 萬成年人。

And there are ways for us to serve them both in the car and through our streaming experience on the phone or other streaming devices, in a much more effective way as we tap into addressing the pain points with better discovery and control in our product experience. So we're excited about the growth that we have in North America ahead of us.

當我們透過在產品體驗中更好地發現和控制來解決痛點時，我們可以透過多種方式在車內以及透過手機或其他串流媒體設備上的串流體驗以更有效的方式為他們提供服務。因此，我們對北美地區的成長感到興奮。

Our next question is from Sebastiano Petti with JPMorgan.

我們的下一個問題來自摩根大通的塞巴斯蒂亞諾·佩蒂。

I just wanted to clarify on the advertising front. Has your expectation for the second half changed relative to maybe what you had been messaging on the first quarter in terms of just the second half recovery, obviously, things are choppy, but I just wasn't sure if we now expect more of the year-on-year improvement or just benefits of the broader markets and being more weighted into '24? And then I have a quick follow-up as well.

我只是想澄清一下廣告方面的問題。相對於您在第一季所傳達的下半年復甦的信息，您對下半年的預期是否發生了變化？還是只是更廣泛市場的好處以及更多地關注“24”？然後我也會進行快速跟進。

I mean the second half of the year, Sebastiano will obviously have comparables to the prior year. They're a little bit better, but we don't see a lot of changes. We think it's still going to be choppy. But obviously, we're focused on podcasting and the ad sales team will continue to focus on the ad front.

我的意思是，今年下半年，塞巴斯蒂亞諾顯然會與去年相比。它們好一點，但我們沒有看到太多變化。我們認為它仍然會波動。但顯然，我們專注於播客，廣告銷售團隊將繼續專注於廣告方面。

Yes. I would just add that the marketers out there, the brands have budgets to deploy. And I think we're really well positioned with the capabilities that Tom discussed in terms of being able to take advantage of close-in bookings to the extent that those open up with programmatic or audience buys across our network or to do more custom-oriented programs with advertisers in podcasting or with live events. So I think we -- as Tom said, I don't think we've changed our expectations that much. There's probably a little less upside in Q3 than in Q4. The comps get a bit easier as we go through the year. But the dynamics we've set at the offset -- at the outset of the year have probably changed a bit in terms of the strength of the recovery not really coming until 2024.

是的。我想補充一點，行銷人員、品牌都有預算可以部署。我認為我們確實具備湯姆所討論的能力，即能夠利用近距離預訂，在我們的網絡上通過程序化或受眾購買或進行更多面向定制的活動。 。所以我認為我們——正如湯姆所說，我認為我們沒有太大改變我們的期望。第三季的上漲空間可能比第四季小一些。隨著這一年的過去，比賽變得更容易了。但我們在年初設定的動態可能已經發生了一些變化，因為復甦的力道要到 2024 年才會真正到來。

That's helpful. And just zooming out real quick, if I could. I think, Jennifer, you described it as a strategic transition with the business and so, there are some onetime costs that Sirius wearing this year. You have the reduction in force. It sounds like there's an eye towards additional efficiencies in the business here. But how should we think about -- I guess, if you can provide some high-level thoughts on where -- the growth algorithm for the business on a go-forward basis, if we think out 12, 24 months from here, Sirius has a high-growth capital return story, free cash flow machine. I mean has the growth algorithm changed? How are you thinking about, I guess, the Ps and Q of the business and the free capital profile on the other side of this transition as you kind of attack these new cohorts and podcasting and advertising scale as a percentage of the business?

這很有幫助。如果可以的話，就快速縮小。我想，詹妮弗，你將其描述為業務的戰略轉型，因此，小天狼星今年承擔了一些一次性成本。你的力量減少了。聽起來這裡的業務似乎著眼於提高效率。但我們應該如何思考——我想，如果你能提供一些關於未來業務成長演算法的高層次想法的話，如果我們考慮從這裡開始 12、24 個月，Sirius 已經高成長的資本回報故事，自由現金流機器。我的意思是成長演算法改變了嗎？我想，當您攻擊這些新群體以及播客和廣告規模佔業務的百分比時，您如何看待業務的 Ps 和 Q，以及轉型另一面的自由資本狀況？

Sure. I'll start with the top line, and Tom can talk a bit about the free cash flow dynamic. So, as we look to build out this new platform and address margins a bit earlier, in the call, but our margins -- our variable margins across in-car and streaming are very strong. So we have -- we're sort of indifferent as to where we add subscribers. And I would expect that and I've certainly been saying that this new platform will better position us all other things being equal, of course, on auto sales and things like that, but better position us to add subscribers going forward.

當然。我將從頂線開始，湯姆可以談談自由現金流動態。因此，當我們希望建立這個新平台並在電話會議中更早解決利潤問題時，但我們的利潤——我們在車內和串流媒體方面的可變利潤非常強勁。所以我們對在哪裡添加訂閱者有點漠不關心。我希望這一點，我當然一直在說，這個新平台將使我們在所有其他方面都處於平等地位，當然，在汽車銷售和類似的事情上，但更好地使我們在未來增加訂戶方面處於有利地位。

So we're looking to return to subscriber growth and the pricing side of it we're still researching and testing. So there will be opportunities, I'm sure, to capture more demand among those subscribers with lower-priced packages, but we also believe that because we have a very affluent and satisfied customer base that there are more opportunities at the higher end as well. So I think that there are dynamics on both the sort of P and Q side that will work in our favor going forward. And advertising is a great business for us. We love the position we have in terms of the 3 channels that Tom talked about and our Pandora business is profitable and that has a lot to do with some of the cost efficiencies we've put in place. But we like the dynamics of that business going forward as well.

因此，我們希望回到用戶成長和定價方面，我們仍在研究和測試。因此，我確信，我們將有機會透過低價套餐來吸引訂戶的更多需求，但我們也相信，由於我們擁有非常富裕且滿意的客戶群，因此高端市場也有更多機會。因此，我認為 P 和 Q 方面都存在動態，這將有利於我們前進。廣告對我們來說是一項偉大的事業。我們喜歡湯姆談到的 3 個管道方面的地位，我們的潘朵拉業務是有利可圖的，這與我們實施的一些成本效率有很大關係。但我們也喜歡該業務的未來發展動力。

So then Tom, do you want to talk about free cash flow?

那麼湯姆，你想談談自由現金流嗎？

Yes, sure. Sebastiano, so just covering free cash flow. I mean, we had a good quarter at $323 million. It was down obviously from prior year, as you're aware, from the -- as it relates to the higher satellite payments and tax payments. So we raised our guidance for the year based upon our review of the -- as a review of our cost and basically our working capital and principal and in taxes. And so we raised our guidance based upon that to $1.15 billion. I think we'll continue to generate significant cash. We're always looking at our free cash flow conversion and our free cash flow per share. But I think as you look at the year, we continue to generate a very significant positive cash. We said it will be back-end loaded to the fourth quarter.

是的，當然。塞巴斯蒂亞諾，所以只是涵蓋自由現金流。我的意思是，我們這個季度表現不錯，銷售額達 3.23 億美元。如您所知，它比上一年明顯下降，因為它與更高的衛星付款和納稅有關。因此，我們根據對我們的成本以及基本上是我們的營運資本、本金和稅收的審查，提高了今年的指導。因此，我們將基於此的指導提高至 11.5 億美元。我認為我們將繼續產生大量現金。我們一直在關注我們的自由現金流轉換和每股自由現金流。但我認為，回顧這一年，我們繼續產生非常可觀的正現金。我們說過它將在第四季度進行後端加載。

Just talking about the cost savings, you hit it right. We have optimized our floor space. We're down about 38% from pre-COVID pandemic era and we did have a downsizing earlier this year. We're being very detailed and very, very focused on our cost structure as we're building out the revenue and the strength of the top line. We need to -- and the Jennifer and the team here has been very focused on taking costs out of the business. They're moving us towards more efficiency and innovation and putting the cost of the dollars where the future next-generation SiriusXM is. And so although we've done some early cost reductions, we're continuing in really an ongoing program, and we've seen early benefits in call centers and just optimization across the business. But we will continue to focus on that and obviously reinvest in areas that will thrive whether it's content or whether it's technology that will drive our future. So that's......

就節省成本而言，您說得對。我們優化了佔地面積。與新冠疫情大流行之前相比，我們的規模減少了約 38%，今年早些時候我們確實進行了裁員。在我們建立收入和營收實力的過程中，我們非常詳細、非常關注我們的成本結構。我們需要—珍妮佛和這裡的團隊一直非常注重降低業務成本。他們正在推動我們提高效率和創新，並將美元成本放在未來下一代 SiriusXM 的成本上。因此，儘管我們已經做了一些早期的成本削減，但我們仍在繼續進行真正的持續計劃，並且我們已經看到了呼叫中心的早期效益以及整個業務的優化。但我們將繼續關注這一點，並顯然將在將蓬勃發展的領域進行再投資，無論是內容還是技術將推動我們的未來。所以說…

I would just add, Sebastiano, on free cash flow that we have a unique set of dynamics that we've talked about this year and particularly with satellite CapEx rolling through at levels of about $300 million this year and next year. And I think as we've talked about over time, that goes to 0, probably for several years. And so we have the tailwind of working our way through that build cycle. But we also believe there's potential upside on both working capital and taxes as we move forward. So we will continue to be a strong and growing cash flow generator for years to come.

Sebastiano，我想補充一點，關於自由現金流，我們今年討論過一系列獨特的動態，特別是今年和明年衛星資本支出將達到約 3 億美元的水平。我認為，正如我們所討論的，隨著時間的推移，這個數字可能會下降到 0，而且可能會持續幾年。因此，我們可以順風順水地完成建造週期。但我們也相信，隨著我們的前進，營運資金和稅收都有潛在的上升空間。因此，我們將在未來幾年繼續成為強大且不斷成長的現金流產生器。

Our next question is from Cameron Mansson-Perrone with Morgan Stanley.

我們的下一個問題來自摩根士丹利的卡梅倫·曼森-佩羅內。

It's interesting to see the sequential improvement in MAUs at Pandora. Can you talk about what you're seeing in terms of the trends there? And then on the off-net growth at Pandora pretty healthy in the second quarter, you talked about remaining focused on the long tail programmatic part of the podcast business. What do you do to pull forward that opportunity there? Any color there would be helpful.

有趣的是，Pandora 的月活躍用戶數連續提高。您能談談您所看到的趨勢嗎？然後，關於潘朵拉第二季相當健康的網外成長，您談到了繼續關注播客業務的長尾程式化部分。你會採取什麼措施來推動這個機會？任何顏色都會有幫助。

Sure. On Pandora MAUs, we have -- we continue to find ways to improve on platform listening with both investments in our algorithmic programming and also more branded channels such as VIP Rap, [ElPolso], The 615. So that supported the loyal cohort behavior that we've continued to see on the platform. We've also been testing new onboarding features in Pandora to help new customers that are coming in, build personalized stations. One of the things that we're doing is taking those learnings and using them as we build out the SiriusXM experience as well. And we continue to make headway on our CRM and marketing efforts to reduce churn there. So it's been a number of initiatives. And yes, trends have been slightly more positive, with MAUs down just 6% and hours down 4% in the last quarter.

當然。在 Pandora MAU 上，我們繼續尋找方法來改進平台收聽，投資於我們的演算法程式設計以及更多品牌頻道，例如 VIP Rap、[ElPolso]、The 615。平台上看到。我們也一直在 Pandora 中測試新的入門功能，以幫助新客戶建立個人化電台。我們正在做的事情之一就是在建立 SiriusXM 體驗時汲取這些經驗並加以利用。我們繼續在 CRM 和行銷工作上取得進展，以減少客戶流失。因此，我們採取了一系列措施。是的，趨勢稍微積極一些，上個季度的月活躍用戶數僅下降了 6%，工作時間下降了 4%。

And I think the -- we continue to take actions there to improve the profitability of the business. But we have a lot of optionality going forward with our Pandora segment.

我認為－我們將繼續採取行動來提高業務的獲利能力。但我們的潘朵拉業務有很多選擇。

And on the programmatic side, I mean, Tom touched on this. We have -- we've just started, I think, tapping the opportunity on programmatic for podcasts. We've had it in place on the music streaming side for a number of years. And it's -- by the way, still nowhere near what I think you see on video platforms, but there is opportunity to continue to build out the tools there on both streaming and on podcasting. And we're really just, again, getting started on the podcasting side. So I think there's growth going forward for programmatic there.

我的意思是，在程序化方面，湯姆談到了這一點。我認為，我們剛開始利用播客程序化的機會。我們在音樂串流媒體方面已經使用它很多年了。順便說一句，它仍然遠不及我認為您在視訊平台上看到的那樣，但有機會繼續在串流媒體和播客上建立工具。我們真的只是再次開始播客方面的工作。所以我認為那裡的程序化交易將會成長。

Our next question is from Kutgun Maral with Evercore ISI.

我們的下一個問題來自 Evercore ISI 的 Kutgun Maral。

One on self-pay net adds and one on costs. So first, I don't think there were too many surprises with self-pay net adds this quarter, and it's certainly encouraging to track towards a positive back half. Sorry to get a bit specific, but is it too future to suggest that you'll get to positive next quarter? Or is it more likely that Q3 will be maybe closer to flattish before you see a bigger ramp in the fourth quarter? And I know we're not talking too specifically on the contribution of streaming versus satellite. But is your expectation that satellite also begins to trend positive as well? Or is the overall outlook more driven by upside from streaming?

一份是關於自付淨額的，一份是關於成本的。因此，首先，我認為本季的自付費用淨增加不會有太多驚喜，而且後半段的正成長肯定令人鼓舞。很抱歉說得具體一些，但是現在就暗示您下個季度會取得積極成果是否太未來了？或者在第四季度看到更大的成長之前，第三季是否更有可能接近持平？我知道我們並沒有太具體地談論串流媒體與衛星的貢獻。但您是否期望衛星也開始呈現正面的趨勢？還是整體前景更受到串流媒體上行的推動？

And on the expense side, can you help us better understand some of the cost trends in the back half as you look to relaunch SiriusXM's NextGen? I think sales and marketing in the first half continued to be down ahead of the relaunch. Presumably, this continues in Q3 and then reverses in Q4, where I assume you'll see some EBITDA pressure, but any added color would be helpful.

在費用方面，當您希望重新推出 SiriusXM 的 NextGen 時，您能否幫助我們更了解下半年的一些成本趨勢？我認為在重新推出之前，上半年的銷售和行銷繼續下降。據推測，這種情況將在第三季度繼續，然後在第四季度出現逆轉，我認為您會看到一些 EBITDA 壓力，但任何添加的顏色都會有所幫助。

Okay. I'll let Tom address the cost in a minute. But on the net adds, Kutgun, I mean -- I'm not going to provide any more specific guidance on Q3 and Q4. We have said that we expect the back half to be slightly positive. I mean there's too much variability around Q3 really to provide a more specific number. But my expectation is that it will be better than Q2, right? So the trends will continue to improve over the course of the year.

好的。我稍後會讓湯姆解決費用問題。但在網上補充道，Kutgun，我的意思是——我不會提供有關第三季度和第四季度的任何更具體的指導。我們已經說過，我們預計下半年會略有積極。我的意思是，第三季的變化太大，無法提供更具體的數字。但我的預期是它會比第二季更好，對嗎？因此，這一趨勢將在今年繼續改善。

And on the streaming versus satellite -- not really -- I don't plan to give more insight into that right now. Going forward, I would expect we'll share some more metrics around those 2 pieces of our business. But I will say that our streaming net adds will also improve over the course of the year. And we highlighted some of the trends that we're seeing, which are really encouraging in terms of early in trial engagement, which obviously plays into better retention and ultimately, higher LTVs for our streaming subscribers. And coupled with that, lower cost to acquire. So that helps give us confidence that when we launch this new platform, which will give us even more capabilities to improve both of those pieces of the equation, that we'll continue to see upside in our streaming net adds.

關於串流媒體與衛星電視——不是真的——我現在不打算對此進行更多深入的了解。展望未來，我預計我們將圍繞這兩項業務分享更多指標。但我要說的是，我們的串流淨增加量在這一年中也將有所改善。我們強調了我們所看到的一些趨勢，這些趨勢在早期試用參與度方面確實令人鼓舞，這顯然有助於提高串流媒體用戶的保留率，並最終提高串流媒體用戶的生命週期價值。除此之外，購買成本也更低。因此，這有助於讓我們相信，當我們推出這個新平台時，這將為我們提供更多能力來改進這兩個方面，我們將繼續看到串流媒體網路增加的優勢。

On the cost side, you're correct. We're obviously back loading sales and marketing. We had planned that all year. As you saw in the quarter, we were down year-over-year by 23% in sales and marketing. As you look at the fourth quarter, including our press event we will have for the app, we have backloaded a lot of the costs, but I believe we also will have heavy cash flow in the fourth quarter. So the realignment of the cost and everything is planned. And obviously, we're driving towards our $2.75 billion adjusted EBITDA target for the full year. So I don't see a lot changing other than as you're right, the sales and marketing will obviously be back loaded into the fourth quarter.

從成本角度來看，你是對的。顯然，我們正在重新加載銷售和行銷工作。我們一整年都這麼計劃的。正如您在本季度看到的，我們的銷售和行銷年減了 23%。當你看第四季度時，包括我們將為該應用程式舉行的新聞發布會，我們已經積壓了很多成本，但我相信我們在第四季度也將擁有大量現金流。因此，成本和一切的重新調整都是有計劃的。顯然，我們正在努力實現全年調整後 EBITDA 27.5 億美元的目標。因此，我沒有看到太多變化，除了你是對的之外，銷售和行銷顯然將回到第四季度。

All right. Thanks, everyone, for participating in our call this morning, and we look forward to continuing the conversation with many of you in the coming days. Take care.

好的。感謝大家今天早上參加我們的電話會議，我們期待在未來幾天繼續與你們中的許多人進行對話。小心。

This concludes today's conference. You may disconnect your lines at this time. Thank you for your participation.

今天的會議到此結束。此時您可以斷開線路。感謝您的參與。