(Reuters) – SiriusXM topped market estimates for quarterly revenue on Tuesday as the radio company’s tie-ups with automakers helped draw users to its audio product services while on the road.
Shares of the company rose more than 3% in premarket trading, having surged to their highest level in more than 18 years last month.
SiriusXM, whose growth primarily relies on sales of vehicles that use its audio products, has benefited this year from a pick-up in global vehicle shipments.
The company also partnered with Volvo in the quarter to continue to be the standard across the automaker’s vehicle lineup.
The audio entertainment company reported second-quarter revenue of $2.25 billion, beating estimates of $2.24 billion, according to Refinitiv data.
Its adjusted profit of 8 cents per share was also above analysts’ average estimate of 7 cents per share.
After reporting better-than-expected free cash flow of $323 million in the quarter, the company also raised its expectation for the full year.
It now expects annual free cash flow to be around $1.5 billion, compared with $1.1 billion it had previously expected.
SiriusXM, which competes with the likes of Spotify and Alphabet’s YouTube, saw improvement in self-pay subscribers that declined 132,000 from a year earlier, compared with a fall of 347,000 in the first quarter.
The company is launching a data-driven platform later this year that will allow for more control of the listener experience and improve discovery, helping users better utilize its content lineup.
(Reporting by Samrhitha Arunasalam in Bengaluru; Editing by Shweta Agarwal)
