Core Viewpoint - Momentum investing focuses on "buying high and selling higher" rather than traditional strategies of "buying low and selling high" [1][2] Group 1: Momentum Investing Strategy - Momentum investors often face challenges in determining the right entry point, as stocks may lose momentum when their valuations exceed future growth potential [2] - A safer approach involves investing in bargain stocks that exhibit recent price momentum, utilizing tools like the Zacks Momentum Style Score to identify such opportunities [3] Group 2: Synchronoss (SNCR) Stock Analysis - Synchronoss (SNCR) has shown a significant price increase of 65.1% over the past four weeks, indicating strong investor interest [4] - The stock has gained 15% over the past 12 weeks, with a beta of 1.73, suggesting it moves 73% more than the market [5] - SNCR has a Momentum Score of B, indicating a favorable time to invest based on momentum [6] Group 3: Earnings Estimates and Valuation - SNCR has received a Zacks Rank 1 (Strong Buy) due to upward revisions in earnings estimates, which typically attract more investors [7] - The stock is currently trading at a Price-to-Sales ratio of 0.57, suggesting it is undervalued at 57 cents for each dollar of sales [7] Group 4: Additional Investment Opportunities - Besides SNCR, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, presenting further investment opportunities [8] - The Zacks Premium Screens offer over 45 different strategies tailored to various investing styles, aiding in stock selection [9]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 Or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-40574 SYNCHRONOSS TECHNOLOGIES, INC. (Exact name of registrant as specified in its charter) (State or other ju ...

Financial Data and Key Metrics - Q1 2024 total revenue increased to $43 million, with recurring revenue representing 91% of total revenue, up from 88% in Q4 2023 and 87.9% in Q1 2023 [44][60] - Gross profit in Q1 increased 5.1% to $28.7 million, representing 66.9% of total revenue, compared to $27.3 million or 65% in the prior year period [66] - Q1 income from operations was $4.6 million, a significant improvement from a loss of $2 million in the prior year period, driven by revenue growth and expense management [8] - Adjusted EBITDA improved 78% year-over-year to $10.9 million, representing 25.4% of total revenue, up from $6.1 million or 14.5% in the prior year period [45] - Net income in Q1 was $2.3 million or $0.23 per share, a significant improvement compared to a loss of $13.4 million or $1.39 per share in Q1 2023 [40][45] - Cash and cash equivalents were $19.1 million at March 31, 2024, compared to $24.6 million at December 31, 2023 [24] - Free cash flow improved to negative $3.3 million in Q1, an improvement from negative $4.2 million in the same period last year [24] Business Line Data and Key Metrics - Cloud subscriber base now exceeds 10 million, with year-over-year growth of approximately 7% in Q1 [3][23] - Quarterly recurring revenue was 91.1% of total revenue, up from 88% in Q4 2023 and 87.9% in Q1 2023 [44] - The company expects cloud subscriber growth to continue in the high single-digit to low double-digit range throughout 2024 [10][23] - The successful rollout of the Anshin Data Box with SoftBank extends the company's global footprint and solidifies its role in driving cloud subscriber growth [62] Market Data and Key Metrics - The company's long-term contract with Verizon, extending through 2030, highlights the stability of its revenue, with 75% of total revenues secured under contracts of at least four years [41] - The addition of SoftBank, with over 100 million subscribers, offers a significant base to continue building upon the current growth trajectory [41] - The company is progressing discussions across various markets, including with global network operators and telecom providers [64] Company Strategy and Industry Competition - The company's transition to a cloud-only business model and cost optimization efforts following the divestiture of noncore businesses in Q4 2023 have driven financial gains [2][7] - The company's three main strategic priorities are: protecting and growing the cloud subscriber base, leading with innovative technology, and expanding the global customer base [38] - The introduction of auto scaling has significantly reduced compute expenses by over 50% for one customer, enhancing operational and financial efficiency [42] - The company is focused on integrating its solutions into customers' account applications, such as My Verizon or My AT&T, to foster increased user engagement with cloud offerings [43] Management Commentary on Operating Environment and Future Outlook - The company expects to achieve at least $10 million in net cash flow for 2024, driven by the superior revenue-to-cash conversion capabilities of its standalone cloud business [10][18] - The company anticipates further improvements in free cash flow generation in 2025, as it enhances revenue-to-cash conversion [18] - The company remains confident in achieving its GAAP revenue guidance of $170 million to $175 million for 2024, representing 5% to 8% year-over-year growth [47] - Adjusted EBITDA guidance for 2024 remains consistent at $42 million to $45 million, aligning with the targeted margin range [47] Other Important Information - The company made its final payment to the SEC related to the financial restatement completed in 2018, which is expected to increase 2024 cash flow by $4.8 million [67] - The company expects to receive a $28 million tax refund in the second half of 2024, which it plans to use to further pay down outstanding debt [25][73] Q&A Session Summary Question: What gross margin number can be expected for the year? - The company expects gross margins to be in the 75%-plus range for 2024, based on Q1 performance [49] Question: What is the expected ARPU for the rest of the year? - The company expects ARPU to remain consistent with past performance, contributing to continuous revenue growth [51] Question: What strategies are being pursued to decrease the cost of the capital structure? - The company is evaluating the use of the $28 million tax refund to pay down debt and is looking at other strategic moves to improve the capital structure [53][73] Question: What gives confidence that 2025 free cash flow will be higher than 2024? - Drivers include expected revenue growth, lower expenses, and reduced legal costs related to the financial restatement [74][75]

[Executive Summary](index=1&type=section&id=Executive%20Summary) [Q1 2024 Financial Highlights](index=1&type=section&id=Q1%202024%20Financial%20Highlights) Synchronoss Technologies achieved significant financial improvements in Q1 2024, with total revenue growing to $43.0 million and recurring revenue exceeding 91%, while enhancing profitability with expanded gross margins and increased net income and adjusted EBITDA | Metric | Q1 2024 | Q1 2023 | YoY Change | | :--- | :--- | :--- | :--- | | Total Revenue | $43.0 Million | - | Growth | | Recurring Revenue % | >91% | - | - | | GAAP Gross Margin | 67% | - | Expanded | | Adjusted Gross Margin | 76% | - | Growth | | Net Income | Increased $15.7 Million | - | Growth | | EPS | $0.23 | $(1.39) | Improved | | Adjusted EBITDA | $10.9 Million | - | Grew 78% | - Company reaffirmed its **full-year 2024 performance guidance**[1](index=1&type=chunk) [First Quarter and Recent Operational Highlights](index=1&type=section&id=First%20Quarter%20and%20Recent%20Operational%20Highlights) [Management Commentary](index=1&type=section&id=Management%20Commentary) CEO Jeff Miller highlighted the company's strategic transformation towards high-margin personal cloud services, leading to streamlined operations and improved financial health, driven by the SoftBank partnership and platform enhancements - Strategic transformation to a global cloud solutions provider, focusing on **high-margin personal cloud services**[3](index=3&type=chunk) - Successful launch of **Anshin Data Box personal cloud application** with SoftBank, expanding international markets[4](index=4&type=chunk) - Introduction of Enhanced Plans and Auto-scaling to boost platform capabilities, operational efficiency, and marketing flexibility[4](index=4&type=chunk)[5](index=5&type=chunk) - Personal cloud users grew **7% year-over-year**, driving recurring revenue to **over 91%**[5](index=5&type=chunk) - Profitability improved through post-divestiture cost restructuring, achieving an **adjusted EBITDA margin of 25.4%**[5](index=5&type=chunk) [Key Performance Indicators ("KPIs") and Financial Commentary](index=2&type=section&id=Key%20Performance%20Indicators%20%28%22KPIs%22%29%20and%20Financial%20Commentary) [CFO Financial Commentary](index=2&type=section&id=CFO%20Financial%20Commentary) CFO Lou Ferraro noted a strong financial start to 2024 with adjusted EBITDA up 78%, operational streamlining post-divestiture, and plans to use a $28 million tax refund to reduce capital costs - Adjusted EBITDA grew **78% to $10.9 million**, indicating a strong financial start[8](index=8&type=chunk) - Immediate operational streamlining measures implemented post-divestiture to enhance profitability of the personal cloud business[8](index=8&type=chunk) - Final payment of SEC obligations completed, paving the way for **free cash flow generation in 2024**[8](index=8&type=chunk) - Plan to utilize an upcoming **$28 million** US federal tax refund to reduce capital structure costs[8](index=8&type=chunk) [Q1 2024 Financial Results](index=2&type=section&id=Q1%202024%20Financial%20Results) Synchronoss achieved comprehensive improvements in revenue and profitability in Q1 2024, with total revenue up 2.4% to $43.0 million, net income turning positive, and adjusted EBITDA significantly increasing by 78% | Metric | Q1 2024 | Q1 2023 | YoY Change | | :--- | :--- | :--- | :--- | | Recurring Revenue % | 91.1% | 87.9% | Increased 3.2 percentage points | | Cloud User Growth | Approx. 7% | - | Continuous growth | | Total Revenue | $43.0 Million | $42.0 Million | Grew 2.4% | | Gross Profit | $28.7 Million | $27.3 Million | Grew 5.1% | | Gross Margin | 66.9% | 65.1% | Increased 1.8 percentage points | | Operating Income (Loss) | $4.6 Million | $(2.0) Million | Significant improvement | | Net Income (Loss) | $2.3 Million | $(13.4) Million | Significant improvement | | EPS | $0.23 | $(1.39) | Significant improvement | | Adjusted EBITDA | $10.9 Million | $6.1 Million | Grew 78% | | Adjusted EBITDA Margin | 25.4% | 14.5% | Increased 10.9 percentage points | | Cash and Cash Equivalents (End of Period) | $19.1 Million | $24.6 Million (Dec 31, 2023) | Decreased | | Free Cash Flow | $(3.3) Million | $(4.2) Million | Improved | | Adjusted Free Cash Flow | $0.6 Million | $(0.1) Million | Improved | [2024 Financial Outlook](index=3&type=section&id=2024%20Financial%20Outlook) [Full Year 2024 Guidance](index=3&type=section&id=Full%20Year%202024%20Guidance) Synchronoss expects positive trends to continue in 2024, reaffirming full-year financial guidance including at least $10 million in net cash flow and high single-digit to low double-digit cloud user growth - Expected net cash flow of at least **$10 million** in 2024[11](index=11&type=chunk) - Anticipated cloud user growth rate to remain in the **high single-digit to low double-digit range** in 2024[11](index=11&type=chunk) | Metric | FY 2024 Guidance | | :--- | :--- | | GAAP Revenue | $170.0 Million - $175.0 Million (Growth 5-8%) | | Adjusted EBITDA | $42.0 Million - $45.0 Million | [Conference Call](index=3&type=section&id=Conference%20Call) [Conference Call Details](index=3&type=section&id=Conference%20Call%20Details) Synchronoss held a conference call on May 7, 2024, at 4:30 PM ET to discuss Q1 results, with access via online registration or the investor relations website for webcast and replay - Conference call held on **May 7, 2024, at 4:30 PM ET**[14](index=14&type=chunk) - Online registration link provided to obtain dial-in information[16](index=16&type=chunk) - Webcast and replay available on the Synchronoss Investor Relations website[17](index=17&type=chunk) [Non-GAAP Financial Measures](index=3&type=section&id=Non-GAAP%20Financial%20Measures) [Explanation of Non-GAAP Measures](index=3&type=section&id=Explanation%20of%20Non-GAAP%20Measures) Synchronoss provides non-GAAP financial information to help investors assess ongoing operational performance and compare with industry peers, excluding certain non-recurring or non-core cash-settled expenses - Non-GAAP metrics include adjusted revenue, adjusted gross profit, adjusted gross margin, adjusted EBITDA, non-GAAP net income (loss) attributable to Synchronoss, non-GAAP diluted net income (loss) per share, free cash flow, and adjusted free cash flow[18](index=18&type=chunk) - Company believes non-GAAP metrics aid in evaluating **ongoing operational performance** and comparing with industry peers[18](index=18&type=chunk) - Non-GAAP adjustments include stock-based compensation, acquisition-related costs, restructuring charges, litigation and remediation costs, depreciation and amortization, interest income and expense, gain/loss on divestitures, income tax provision, and non-controlling interests and preferred stock dividends[19](index=19&type=chunk) - Non-GAAP financial measures should not be considered in isolation from or as a substitute for GAAP financial information[20](index=20&type=chunk) [Forward-Looking Statements](index=5&type=section&id=Forward-Looking%20Statements) [Forward-Looking Statements Disclaimer](index=5&type=section&id=Forward-Looking%20Statements%20Disclaimer) This press release contains "forward-looking statements" about Synchronoss's future expectations, plans, and prospects, which are subject to unpredictable risks, assumptions, estimates, and uncertainties - Forward-looking statements are based on current expectations and projections, but are subject to **unpredictable risks, assumptions, estimates, and uncertainties**[21](index=21&type=chunk) - Actual results may differ materially from those expressed or implied in forward-looking statements[21](index=21&type=chunk) - Company undertakes no obligation to update any forward-looking statements due to new information, future events, or other reasons[21](index=21&type=chunk) [About Synchronoss](index=5&type=section&id=About%20Synchronoss) [Company Overview](index=5&type=section&id=Company%20Overview) Synchronoss Technologies (Nasdaq: SNCR) is a global leader in personal cloud solutions, using its SaaS platform to help service providers build secure connections, simplify onboarding, and drive user engagement - Synchronoss Technologies is a **global leader in personal cloud solutions**[22](index=22&type=chunk) - Its SaaS cloud platform aims to help service providers build secure connections with users, simplifying onboarding and fostering user engagement[22](index=22&type=chunk) - The platform's goals are to **increase revenue, reduce expenses, and accelerate time-to-market**[22](index=22&type=chunk) [Financial Tables](index=7&type=section&id=Financial%20Tables) [Condensed Consolidated Balance Sheets](index=7&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of March 31, 2024, Synchronoss's total assets were $298.5 million, a slight decrease from $310.3 million on December 31, 2023, with cash and cash equivalents also declining | Item | March 31, 2024 (in thousands) | December 31, 2023 (in thousands) | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | 19,100 | 24,572 | | Accounts receivable, net | 22,482 | 23,477 | | Operating lease right-of-use assets | 13,867 | 14,791 | | Goodwill | 182,150 | 183,908 | | Other assets | 60,904 | 63,589 | | **Total assets** | **298,503** | **310,337** | | **Liabilities and Stockholders' Equity** | | | | Accounts payable and accrued expenses | 39,243 | 46,602 | | Deferred revenue | 656 | 1,095 | | Debt, non-current | 136,649 | 136,215 | | Operating lease liabilities, non-current | 21,953 | 23,593 | | Other liabilities | 4,742 | 4,898 | | Preferred stock | 58,802 | 58,802 | | Redeemable non-controlling interest | 12,500 | 12,500 | | Stockholders' equity | 23,958 | 26,632 | | **Total liabilities and stockholders' equity** | **298,503** | **310,337** | [Condensed Consolidated Statements of Operations](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Synchronoss achieved significant operational improvement in Q1 2024, with net revenue increasing, total costs and expenses decreasing, leading to operating income turning positive and net income significantly improving to $2.3 million | Item (in thousands, except per share data) | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :--- | :--- | :--- | | Net revenue | $42,965 | $41,985 | | Cost of sales | 10,223 | 10,960 | | Research and development | 10,331 | 12,744 | | Selling, general and administrative | 13,257 | 15,966 | | Restructuring charges | 219 | 342 | | Depreciation and amortization | 4,359 | 3,932 | | **Total costs and expenses** | **38,389** | **43,944** | | **Operating income (loss)** | **4,576** | **(1,959)** | | Interest income | 208 | 94 | | Interest expense | (3,517) | (3,454) | | Other income (expense), net | 3,811 | (2,975) | | Income (loss) from continuing operations before income taxes | 5,078 | (8,294) | | Income tax provision | (603) | (295) | | Net income (loss) from continuing operations | 4,475 | (8,589) | | Net loss from discontinued operations | — | (2,342) | | **Net income (loss)** | **4,475** | **(10,931)** | | Net income (loss) attributable to Synchronoss | $2,341 | $(13,391) | | Diluted net income (loss) per share | $0.23 | $(1.39) | | Diluted weighted-average common shares outstanding | 10,277 | 9,653 | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) In Q1 2024, Synchronoss reported net cash inflow from operating activities of $0.5 million, with net cash outflows from investing and financing activities, resulting in a decrease in cash and cash equivalents at period end | Item (in thousands) | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :--- | :--- | :--- | | Net income (loss) from continuing operations | $4,475 | $(8,589) | | Net loss from discontinued operations | — | (2,342) | | Net cash provided by operating activities | 527 | 1,295 | | Net cash used in investing activities | (3,803) | (5,470) | | Net cash used in financing activities | (2,129) | (2,299) | | Effect of exchange rate changes | (67) | 113 | | Net increase (decrease) in cash and cash equivalents | (5,472) | (6,361) | | Cash and cash equivalents at end of period | $19,100 | $15,560 | [Reconciliation of GAAP to Non-GAAP Financial Measures](index=10&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Financial%20Measures) Synchronoss provided a reconciliation of GAAP to non-GAAP financial measures, showing improved adjusted gross profit, adjusted gross margin, significantly increased adjusted EBITDA, and positive adjusted free cash flow in Q1 2024 | Item (in thousands, except per share data) | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :--- | :--- | :--- | | GAAP revenue | $42,965 | $41,985 | | Adjusted gross profit | $32,789 | $31,195 | | Adjusted gross margin | 76.3% | 74.3% | | GAAP net income (loss) attributable to Synchronoss | $2,341 | $(13,391) | | Non-GAAP net income attributable to Synchronoss | $4,572 | $(6,654) | | Non-GAAP diluted net income (loss) per share | $0.44 | $(0.69) | | Adjusted EBITDA | $10,893 | $6,107 | | Free cash flow | $(3,276) | $(4,175) | | Adjusted free cash flow | $622 | $(146) |

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 (Mark One) FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 Or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-40574 SYNCHRONOSS TECHNOLOGIES, INC. (Exact name of registrant as specified in its charter) Delaware 06-1594540 (I. ...

Financial Data and Key Metrics Changes - Gross profit in Q4 increased by 2.5% to $26.5 million, representing 63.9% of total revenue, compared to $25.8 million or 62.5% in the prior year [4] - For the full year, gross profit decreased by 7.6% to $105.8 million, or 64.4% of total revenue, down from $114.5 million or 65.9% in 2022 [4] - Adjusted EBITDA in Q4 increased by 127% to $10 million, accounting for 24.1% of total revenue, compared to $4.4 million or 10.7% in the prior year [52] - Full year adjusted EBITDA rose by 13.5% to $31.4 million, representing 19.1% of total revenue, up from $27.7 million or 15.9% in the prior year [52] - Net loss in Q4 was $35 million or $3.56 per share, compared to a net loss of $15.9 million or $1.66 per share in Q4 2022 [20] Business Line Data and Key Metrics Changes - Cloud revenue in Q4 was $41 million, up 3% year-over-year, representing over 99% of total revenue [32] - Subscriber growth was 9% year-over-year in Q4, with expectations for high single to low double-digit growth in 2024 [30][32] - Quarterly recurring revenue was 88% of total revenue, consistent with 89.5% in Q3 2023 and 81.1% in Q4 2022 [32] Market Data and Key Metrics Changes - The company launched Synchronoss Personal Cloud with SoftBank, which has over 100 million subscribers, expected to provide significant revenue growth [2] - The company anticipates that cloud revenue will comprise 100% of total revenue in 2024 [32] Company Strategy and Development Direction - The company aims to protect and grow its cloud subscriber base, expand its global customer base, and deliver new anchor features [30] - The strategic shift to a dedicated global cloud solutions provider was solidified by the divestiture of Messaging and NetworkX businesses [34] - The company plans to implement cost control measures, reducing annual costs by an additional $15 million for fiscal 2024 [34] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's financial foundation and growth potential, expecting net cash flow to be at least $10 million for 2024 [38] - The company anticipates GAAP revenue for 2024 to range between $170 million and $175 million, reflecting 5% to 8% growth [38] - Management highlighted the importance of partnerships with Tier 1 customers and the strong pipeline of sales opportunities globally [35] Other Important Information - Cash and cash equivalents increased to $24.6 million at December 31, 2023, from $21.9 million a year earlier [5] - The company has about $28 million in federal tax refund claims included in prepaid assets, with expectations to receive refunds in mid-2024 [5] Q&A Session Summary Question: Can you provide more details on the launch of SoftBank? - The launch of SoftBank's Anshin Data Box has been successful due to their retail-first strategy, leveraging 3,000 points of presence for direct consumer engagement [40] Question: What are the expectations for new customer revenue contributions in 2024? - The company has modest expectations for revenue contributions from new customers in 2024, with potential contracts expected to contribute more significantly in 2025 [41] Question: How will the enhanced service plans affect average ARPU and subscriber growth? - The introduction of enhanced plans allows for tiered service offerings, enabling service providers to differentiate and potentially increase ARPU [42] Question: Will the financial comparisons reflect the elimination of NetworkX revenues? - Yes, future comparisons will reflect the absence of NetworkX and other divested revenues, providing clearer visibility on performance [44][58]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 Or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-40574 SYNCHRONOSS TECHNOLOGIES, INC. (Exact name of registrant as specified in its charter) Delaware 06-15 ...

Financial Data and Key Metrics Changes - In Q3, adjusted EBITDA increased 16.7% to $13.4 million, representing 24% of total revenue, up from $11.5 million or 19.1% in the prior year [1] - Total revenue decreased 7.2% to $55.6 million from $59.9 million in the prior year period, primarily due to delays in key customer contract decision-making [62] - Gross profit increased 1.9% to $30.7 million, or 55.2% of total revenue, compared to $30.2 million or 50.4% in the prior year [42] - Net loss was $5.4 million or $0.06 per share, compared to a loss of $1.3 million or $0.01 per share in the prior year [63] Business Line Data and Key Metrics Changes - Cloud revenue made up 71% of total revenue in Q3, up from 64% in the same period in 2022, with cloud revenue of $39.7 million, a 3% year-over-year increase [22] - Invoiced cloud revenue increased 10.3% year-over-year to $41.6 million in Q3, with a trailing 12-month increase of 13.9% [23] - Messaging revenue was $9 million, down 23% year-over-year, and NetworkX revenue was $6.9 million, down 29% year-over-year due to delays in customer contract decision-making [61] Market Data and Key Metrics Changes - The company secured over 75% of its cloud revenue under contracts with at least 4-year terms, providing strong visibility into future revenue [20] - Quarterly recurring revenue was 88.4% of total revenue, an increase from 83.8% in the previous quarter and 83.7% in the same quarter last year [41] Company Strategy and Development Direction - The company is focused on a cloud-only business model following the divestiture of its Messaging and NetworkX businesses, aiming for higher margins and improved cash conversion [29] - Strategic priorities include protecting and growing subscribers, expanding the global customer base, and delivering new anchor features [32] - The company anticipates strong revenue growth in 2024, targeting gross margins of greater than 70% and adjusted EBITDA margins of greater than 25% [66] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, emphasizing a more focused and determined approach to delivering strong results and long-term value to stockholders [74] - The company expects cloud subscriber growth to moderate slightly in Q4 2023 but return to consistent double-digit growth in 2024 and beyond [26] - Management noted that the divestiture will improve the capital structure and enable the company to unlock the superior financial profile of the stand-alone Cloud business [60] Other Important Information - The company has updated its revenue recognition model for its Verizon Cloud contract to improve alignment between subscriber growth and revenue growth [40] - The company expects to generate strong cash flow in 2024, significantly improving its capital structure over time [66] Q&A Session Summary Question: What was the impairment on the loan? - The dollar value of the impairment was approximately $4.8 million [6] Question: Can you provide insight into the pipeline for Personal Cloud? - The company has ongoing discussions with a good number of existing operators, but these sales cycles take time to develop [7] Question: How much of the expected growth rate will come from existing versus new customers? - Approximately 75% of current revenues are covered by contracts with terms of four years or greater, indicating strong revenue predictability [71]

推出由 Synchronoss 個人云端提供支援的 Anshin 數據盒，整合了人工智能功能，使客戶能夠優化、整理和保護照片、影片及其他數碼內容新澤西州，布里奇沃特, Oct. 31, 2023 (GLOBE NEWSWIRE) -- Synchronoss Technologies, Inc.（下稱「Synchronoss」或「公司」）(Nasdaq: SNCR) 是在雲端、訊息傳遞以及數碼產品和平台領域的全球領導者和創新企業，其於今日宣布日本最大的電訊營運商之一，SoftBank Corp.（下稱「SoftBank」）已部署 Synchronoss 個人雲端以支撐其 Anshin 數據盒服務。 Anshin 數據盒讓顧客可以備份和還原儲存在手機和其他裝置上的照片、影片和檔案。此外，該平台的人工智能特性具備優化低解像度照片和透過一系列效應和風格化工具創建新類型的能力。 從 11 月起，SoftBank 的 Anshin 數據盒將透過多個分銷通路提供，數據盒每月包含 500 十億字節的儲存空間。此外，個人雲端服務將與新裝置整合，讓顧客可以在入職進程中輕鬆啟用該服務。SoftBank 還將透過其零售商店和數碼購 ...

PART I. FINANCIAL INFORMATION [Item 1. Condensed Consolidated Financial Statements and Notes](index=3&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements%20and%20Notes) This section presents Synchronoss Technologies' unaudited condensed consolidated financial statements and detailed notes for Q2 and H1 2023 [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets decreased to **$384.1 million** by June 30, 2023, from **$398.1 million** at year-end 2022, while total stockholders' equity declined Balance Sheet Highlights (In thousands) | Balance Sheet Highlights (In thousands) | June 30, 2023 | December 31, 2022 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $19,329 | $21,921 | | Total current assets | $97,798 | $105,287 | | Total assets | $384,129 | $398,072 | | **Liabilities & Equity** | | | | Total current liabilities | $82,946 | $80,183 | | Long-term debt, net | $135,379 | $134,584 | | Total liabilities | $252,133 | $249,127 | | Total stockholders' equity | $51,148 | $68,097 | [Condensed Consolidated Statements of Operations](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) The company reported a **net loss of $8.5 million** in Q2 2023 and **$19.4 million** for H1 2023, driven by lower revenues and increased expenses Key Metrics (In thousands, except per share) | Key Metrics (In thousands, except per share) | Q2 2023 | Q2 2022 | YTD 2023 | YTD 2022 | | :--- | :--- | :--- | :--- | :--- | | Net revenues | $59,713 | $65,236 | $117,421 | $131,102 | | (Loss) income from operations | $(3,947) | $4,894 | $(7,529) | $3,514 | | Net (loss) income | $(8,518) | $7,921 | $(19,449) | $4,884 | | Diluted EPS | $(0.13) | $0.06 | $(0.28) | $— | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operations increased to **$12.6 million** in H1 2023, despite a net decrease in overall cash and equivalents Cash Flow Summary (In thousands) | Cash Flow Summary (In thousands) | Six Months Ended June 30, 2023 | Six Months Ended June 30, 2022 | | :--- | :--- | :--- | | Net cash provided by operating activities | $12,556 | $6,728 | | Net cash used in investing activities | $(10,344) | $(3,768) | | Net cash used in financing activities | $(4,904) | $(8,517) | | Net decrease in cash and cash equivalents | $(2,592) | $(5,992) | | Cash and cash equivalents, end of period | $19,329 | $25,512 | [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) These notes detail accounting policies, revenue recognition, debt, and a significant contract renewal with Verizon - The company's revenue is primarily derived from Cloud, NetworkX, and Messaging products, with the Americas being the largest geographical market, and subscription services representing the largest portion of revenue[43](index=43&type=chunk)[44](index=44&type=chunk) - As of June 30, 2023, the aggregate amount of transaction price allocated to remaining performance obligations was **$79.8 million**, with approximately **96%** expected to be recognized as revenue within the next two years[51](index=51&type=chunk) - The company has **$141.1 million** in aggregate principal amount of 8.375% Senior Notes due 2026, with a carrying value of **$135.4 million** as of June 30, 2023[73](index=73&type=chunk) - Subsequent to the quarter end, on July 18, 2023, the company entered into an amended agreement with Verizon, extending their contract for **seven years** until June 30, 2030[113](index=113&type=chunk)[114](index=114&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=28&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses revenue decline due to deferred revenue runoff and asset divestitures, affirming sufficient liquidity for the next twelve months - The decrease in net revenues for Q2 2023 was primarily due to the expected runoff of deferred revenue recognized in Q2 2022 and revenue from the divested DXP and Activation assets in the prior year[131](index=131&type=chunk) - The increase in Selling, General and Administrative expense was mainly related to a lease impairment charge and non-recurring professional fees[134](index=134&type=chunk) - The company's top five customers accounted for **76.3%** of net revenues for the first six months of 2023, with Verizon representing more than **10%** of total revenues[125](index=125&type=chunk) - Management believes that existing cash, cash equivalents, and expected cash flows from operations will be sufficient to fund operations for the next twelve months[149](index=149&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=34&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces market risks from foreign currency fluctuations and interest rate changes, but does not use derivative instruments - The company is exposed to foreign currency translation risk as financial results from foreign operations are translated into U.S. dollars[167](index=167&type=chunk) - A hypothetical **100 basis point** movement in interest rates would impact annual interest income by approximately **$0.2 million**[170](index=170&type=chunk) [Item 4. Controls and Procedures](index=35&type=section&id=Item%204.%20Controls%20and%20Procedures) Disclosure controls and procedures were effective as of June 30, 2023, with no material changes to internal control over financial reporting - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of June 30, 2023[171](index=171&type=chunk) - No material changes to the company's internal control over financial reporting were identified during the quarter[172](index=172&type=chunk) PART II. OTHER INFORMATION [Item 1. Legal Proceedings](index=36&type=section&id=Item%201.%20Legal%20Proceedings) This section refers to Note 13 for legal proceedings, highlighting the **$12.5 million** SEC civil penalty - For details on legal proceedings, the report refers to Note 13 of the financial statements[175](index=175&type=chunk) - The primary legal matter is a settlement with the SEC, resulting in a **$12.5 million** civil penalty to be paid over two years[110](index=110&type=chunk) [Item 1A. Risk Factors](index=36&type=section&id=Item%201A.%20Risk%20Factors) New risks include strategic transaction uncertainty, high customer concentration, and financial institution stability concerns - The company has engaged a financial advisor to explore strategic transactions and has received a non-binding acquisition proposal from B. Riley Financial, creating uncertainty about its future direction[177](index=177&type=chunk) - Significant customer concentration risk persists, with the top five customers accounting for **76.3%** of net revenues for the six months ended June 30, 2023[180](index=180&type=chunk) - New risks are identified concerning the potential failure of financial institutions where the company holds cash balances in excess of FDIC insurance limits[182](index=182&type=chunk)[184](index=184&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=37&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no unregistered sales of equity securities during the period - None[185](index=185&type=chunk) [Item 3. Defaults Upon Senior Securities](index=38&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reported no defaults upon senior securities during the period - None[186](index=186&type=chunk) [Item 5. Other Information](index=38&type=section&id=Item%205.%20Other%20Information) The company reported no other information required to be disclosed in this item - None[188](index=188&type=chunk) [Item 6. Exhibits](index=39&type=section&id=Item%206.%20Exhibits) This section lists filed exhibits, including CEO/CFO certifications and a new agreement with Verizon - Exhibits filed include CEO and CFO certifications (Sections 302 and 906 of Sarbanes-Oxley Act) and XBRL interactive data files[190](index=190&type=chunk) - A Change Request and Amendment related to the Application Service Provider Agreement with Verizon Sourcing LLC were filed as exhibits[190](index=190&type=chunk)