Quarterly report pursuant to Section 13 or 15(d)

Segments and Geographic Information

v3.24.3
Segments and Geographic Information
 9 Months Ended
Sep. 30, 2024
Segment Reporting [Abstract]  
Segments and Geographic Information Segments and Geographic Information
In accordance with FASB ASC Topic 280, Segment Reporting, we disaggregate our operations into two reportable segments: Sirius XM and Pandora and Off-platform. The financial results of these segments are utilized by the chief operating decision maker, who is our Chief Executive Officer, for evaluating segment performance and allocating resources. We report our segment information based on the "management" approach. The management approach designates the internal reporting used by management for making decisions and assessing performance as the source of our reportable segments. For additional information on our segments refer to Note 1.
Segment results include the revenues and cost of services which are directly attributable to each segment. There are no indirect revenues or costs incurred that are allocated to the segments. We eliminate intersegment advertising campaign revenue. We had intersegment advertising revenue of $1 for each of the three months ended September 30, 2024 and 2023, and $3 and $2 during the nine months ended September 30, 2024 and 2023, respectively.
Segment revenue and gross profit were as follows during the period presented:
For the Three Months Ended September 30, 2024
Sirius XM Pandora and Off-platform Total
Revenue
Subscriber revenue $ 1,510  $ 135  $ 1,645 
Advertising revenue 41  409  450 
Equipment revenue 43  —  43 
Other revenue 33  —  33 
Total revenue 1,627  544  2,171 
Cost of services (a)
(658) (357) (1,015)
Segment gross profit $ 969  $ 187  $ 1,156 
The reconciliation between reportable segment gross profit to consolidated loss before income tax is as follows:
For the Three Months Ended September 30, 2024
Segment Gross Profit $ 1,156 
Subscriber acquisition costs (90)
Sales and marketing (a)
(206)
Engineering, design and development (a)
(57)
General and administrative (a)
(113)
Depreciation and amortization (145)
Share-based payment expense (58)
Impairment, restructuring and other costs (3,388)
Total other expense (96)
Consolidated loss before income taxes
 $ (2,997)
(a)     Share-based payment expense is presented as a separate line item for the purpose of this note and consists of $11 related to cost of services, $11 related to sales and marketing, $11 related to engineering, design and development and $25 related to general and administrative. These amounts have been excluded from these line items in this table for the three months ended September 30, 2024.

For the Three Months Ended September 30, 2023
Sirius XM Pandora and Off-platform Total
Revenue
Subscriber revenue $ 1,597  $ 132  $ 1,729 
Advertising revenue 42  418  460 
Equipment revenue 49  —  49 
Other revenue 33  —  33 
Total revenue 1,721  550  2,271 
Cost of services (b)
(674) (370) (1,044)
Segment gross profit $ 1,047  $ 180  $ 1,227 
    The reconciliation between reportable segment gross profit to consolidated income before income tax is as follows:
For the Three Months Ended September 30, 2023
Segment Gross Profit $ 1,227 
Subscriber acquisition costs (87)
Sales and marketing (b)
(224)
Engineering, design and development (b)
(61)
General and administrative (b)
(119)
Depreciation and amortization (145)
Share-based payment expense (57)
Impairment, restructuring and other costs (6)
Total other expense (158)
Consolidated income before income taxes
 $ 370 
(b)     Share-based payment expense is presented as a separate line item for the purpose of this note and consists of $13 related to cost of services, $13 related to sales and marketing, $11 related to engineering, design and development and $20 related to general and administrative. These amounts have been excluded from these line items in this table for the three months ended September 30, 2023.
For the Nine Months Ended September 30, 2024
Sirius XM Pandora and Off-platform Total
Revenue
Subscriber revenue $ 4,576  $ 407  $ 4,983 
Advertising revenue 124  1,171  1,295 
Equipment revenue 140  —  140 
Other revenue 93  —  93 
Total revenue 4,933  1,578  6,511 
Cost of services (c)
(1,987) (1,067) (3,054)
Segment gross profit $ 2,946  $ 511  $ 3,457 
The reconciliation between reportable segment gross profit to consolidated loss before income tax is as follows:
For the Nine Months Ended September 30, 2024
Segment Gross Profit $ 3,457 
Subscriber acquisition costs (272)
Sales and marketing (c)
(641)
Engineering, design and development (c)
(190)
General and administrative (c)
(326)
Depreciation and amortization (455)
Share-based payment expense (154)
Impairment, restructuring and other costs
 (3,441)
Total other expense (237)
Consolidated loss before income taxes
 $ (2,259)
(c)     Share-based payment expense is presented as a separate line item for the purpose of this note and consists of $34 related to cost of services, $34 related to sales and marketing, $34 related to engineering, design and development and $52 related to general and administrative. These amounts have been excluded from these line items in this table for the nine months ended September 30, 2024.


For the Nine Months Ended September 30, 2023
Sirius XM Pandora and Off-platform Total
Revenue
Subscriber revenue $ 4,757  $ 389  $ 5,146 
Advertising revenue 126  1,152  1,278 
Equipment revenue 142  —  142 
Other revenue 99  —  99 
Total revenue 5,124  1,541  6,665 
Cost of services (d)
(2,014) (1,097) (3,111)
Segment gross profit $ 3,110  $ 444  $ 3,554 
The reconciliation between reportable segment gross profit to consolidated income before income tax is as follows:
For the Nine Months Ended September 30, 2023
Segment Gross Profit $ 3,554 
Subscriber acquisition costs (270)
Sales and marketing (d)
(647)
Engineering, design and development (d)
(201)
General and administrative (d)
(416)
Depreciation and amortization (460)
Share-based payment expense (151)
Impairment, restructuring and other costs
 (56)
Total other expense (394)
Consolidated income before income taxes
 $ 959 
(d)     Share-based payment expense is presented as a separate line item for the purpose of this note and consists of $33 related to cost of services, $33 related to sales and marketing, $33 related to engineering, design and development and $52 related to general and administrative. These amounts have been excluded from these line items in this table for the nine months ended September 30, 2023.
A measure of segment assets is not currently provided to our Chief Executive Officer and has therefore not been provided.
As of September 30, 2024, long-lived assets were predominantly located in the United States. No individual foreign country represented a material portion of our consolidated revenue during the three and nine months ended September 30, 2024 and 2023.