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)

Synchronoss Technologies, Inc. (NASDAQ:SNCR) Q2 2023 Earnings Conference Call August 8, 2023 4:30 PM ET Company Participants Jeff Miller - President and Chief Executive Officer Lou Ferraro - Chief Financial Officer Operator Good afternoon, and welcome to Synchronoss Technologies Second Quarter 2023 Earnings Conference Call. Joining us today are Synchronous Technologies' President and CEO, Jeff Miller; and CFO, Lou Ferraro. Following their remarks, we will open the call for questions. Then before we conclud ...

Synchronoss Technologies, Inc. (NASDAQ:SNCR) Q1 2023 Earnings Conference Call May 9, 2023 4:30 PM ET Company Participants Jeff Miller - President and Chief Executive Officer Lou Ferraro - Chief Financial Officer Conference Call Participants Operator Good afternoon. Welcome to Synchronoss Technologies First Quarter 2023 Earnings Conference Call. Joining us today are Synchronoss Technologies President and CEO, Jeff Miller; and CFO, Lou Ferraro. Following their remarks, we will open the call for your questions ...

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, 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 06-159454 ...

Part I [Item 1. Business](index=5&type=section&id=Item%201.%20Business) Synchronoss Technologies, Inc. provides white-label cloud, messaging, digital, and network management solutions primarily for communications service providers, mobile insurance providers, and retailers - The company's business is structured around three core product sets: EngageX (Personal Cloud, Advanced Messaging, Email), OnboardingX (Backup/Restore, Content Transfer), and NetworkX (network design and management)[18](index=18&type=chunk)[24](index=24&type=chunk) - Synchronoss serves three main markets globally: communications service providers (like mobile network operators), mobile insurance providers, and retailers, with key customers including AT&T, BT, Verizon, and Comcast[19](index=19&type=chunk)[20](index=20&type=chunk) - The company faces competition from Over-the-top (OTT) service providers like Apple and Google in the Personal Cloud space, and from Telecom Expense Management (TEM) providers like TEOCO and Tangoe for its Digital Products[43](index=43&type=chunk)[46](index=46&type=chunk) - As of December 31, 2022, the company held **71 issued patents** and had **7 pending** in the United States, with an additional **75 issued** and **6 pending** internationally[36](index=36&type=chunk) - As of December 31, 2022, Synchronoss had **1,391 full-time employees** located across India, North America, Europe, and the Asia Pacific regions[50](index=50&type=chunk) [Item 1A. Risk Factors](index=12&type=section&id=Item%201A.%20Risk%20Factors) The company identifies numerous risks to its business, categorized into operational, business/industry, legal/regulatory, and financial risks - A substantial portion of revenue comes from a limited number of customers; in 2022, the top five customers accounted for **73.4% of net revenues**, with Verizon alone representing more than **10%**[73](index=73&type=chunk) - The company faces significant competition in highly competitive and fragmented markets, including from in-house departments of its customers and large competitors with greater resources[132](index=132&type=chunk) - The business is subject to complex and evolving data privacy laws globally, such as the GDPR in Europe and the CPRA in California, which impose significant compliance costs and potential penalties for violations[156](index=156&type=chunk)[157](index=157&type=chunk)[158](index=158&type=chunk) - On December 27, 2022, the company received a notice from Nasdaq for non-compliance with the minimum bid price requirement, posing a risk of delisting if compliance is not regained[208](index=208&type=chunk) - The company settled with the SEC regarding restated financial statements from 2015-2016, agreeing to a civil penalty of **$12.5 million** payable over two years, and may also be required to indemnify former management members in a related civil action[186](index=186&type=chunk)[551](index=551&type=chunk) [Item 1B. Unresolved Staff Comments](index=42&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports that it has no unresolved staff comments from the SEC - None[210](index=210&type=chunk) [Item 2. Properties](index=42&type=section&id=Item%202.%20Properties) The company's corporate headquarters is a leased office space of approximately 120,000 square feet in Bridgewater, New Jersey, with other leased facilities globally - The company leases its corporate headquarters in Bridgewater, New Jersey, along with other offices in the US and internationally, with lease terms expiring between 2023 and 2028[211](index=211&type=chunk) [Item 3. Legal Proceedings](index=42&type=section&id=Item%203.%20Legal%20Proceedings) This section refers to Note 20 of the Consolidated Financial Statements for a discussion of material pending legal proceedings - For details on legal proceedings, the report refers to Note 20 in Part II, Item 8[212](index=212&type=chunk) [Item 4. Mine Safety Disclosures](index=42&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not Applicable[213](index=213&type=chunk) Part II [Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=43&type=section&id=Item%205.%20Market%20for%20Registrant's%20Common%20Equity,%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) This section details the market for the company's common stock (SNCR) and senior notes (SNCRL) on The Nasdaq Global Select Market, confirming no cash dividends on common stock and outlining Series B Preferred Stock dividend structure - The company's common stock trades on The Nasdaq Global Select Market under the symbol "**SNCR**"[215](index=215&type=chunk) - No cash dividends have ever been declared or paid on the company's common stock, and none are anticipated in the foreseeable future[216](index=216&type=chunk) - The Series B Preferred Stock has a tiered dividend rate, which was **13% per annum for 2022** and increased to **14% per annum for 2023** and thereafter; dividends can be paid in cash or in additional shares of Series B Preferred Stock[218](index=218&type=chunk) - On June 30, 2021, the company redeemed all **268,917 outstanding shares** of its Series A Preferred Stock for an aggregate price of **$278.7 million**; no Series A Preferred Stock remains outstanding[221](index=221&type=chunk)[265](index=265&type=chunk) [Item 6. [Reserved]](index=46&type=section&id=Item%206.%20%5BReserved%5D) This section is intentionally left blank by the company [Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=46&type=section&id=Item%207.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management reports a **$28.0 million decrease in net revenues** for 2022 compared to 2021, primarily due to the dissolution of CCMI, the sale of non-strategic assets, and unfavorable foreign exchange rates, resulting in a shift to operating income Fiscal Year 2022 vs. 2021 Financial Results (in thousands) | Metric | 2022 | 2021 | $ Change | | :--- | :--- | :--- | :--- | | **Net revenues** | $252,628 | $280,615 | $(27,987) | | **Total costs and expenses** | $251,306 | $299,632 | $(48,326) | | **Income (loss) from operations** | $1,322 | $(19,017) | $20,339 | - The decrease in 2022 revenue was attributed to the dissolution of CCMI, the sale of the DXP and Activation assets, deferred revenue run-off, and unfavorable foreign exchange impacts[238](index=238&type=chunk) - The top five customers accounted for **73.4% of net revenues in 2022**, highlighting significant customer concentration, with Verizon accounting for over **10%** of revenues[231](index=231&type=chunk) Cash Flow Summary (in thousands) | Activity | 2022 | 2021 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $17,359 | $4,945 | | **Net cash used in investing activities** | $(13,166) | $(23,943) | | **Net cash (used in) provided by financing activities** | $(13,276) | $16,188 | - As of December 31, 2022, the company had **$21.9 million in cash and cash equivalents** and believes this is sufficient to fund operations for the next twelve months[246](index=246&type=chunk)[248](index=248&type=chunk) [Item 7A. Quantitative and Qualitative Disclosures About Market Risk](index=57&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risks are foreign currency exchange risk and interest rate risk, with no derivative instruments used for hedging - The company is exposed to foreign currency exchange risk due to its international operations but does not engage in hedging activities[312](index=312&type=chunk)[313](index=313&type=chunk) - A hypothetical **100 basis point movement** in interest rates would affect the company's annual interest income by approximately **$0.2 million**[315](index=315&type=chunk) [Item 8. Financial Statements and Supplementary Data](index=58&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section presents the company's audited consolidated financial statements for fiscal years 2020, 2021, and 2022, along with the independent auditor's report and detailed accompanying notes [Report of Independent Registered Public Accounting Firm](index=59&type=section&id=Report%20of%20Independent%20Registered%20Public%20Accounting%20Firm) Ernst & Young LLP issued an unqualified opinion on the consolidated financial statements, identifying critical audit matters related to revenue recognition and goodwill impairment - The independent auditor, Ernst & Young LLP, issued an **unqualified opinion** on the company's consolidated financial statements[319](index=319&type=chunk) - Critical Audit Matters identified were related to the judgment in recognizing revenue with multiple performance obligations and the assumptions used in the goodwill impairment test[323](index=323&type=chunk)[324](index=324&type=chunk)[328](index=328&type=chunk) [Consolidated Financial Statements](index=61&type=section&id=Consolidated%20Financial%20Statements) The consolidated financial statements show total assets decreased to **$398.1 million** in 2022 from **$450.7 million** in 2021, with a net loss of **$7.7 million** for 2022 Consolidated Balance Sheet Data (in thousands) | | Dec 31, 2022 | Dec 31, 2021 | | :--- | :--- | :--- | | **Total Assets** | $398,072 | $450,734 | | **Total Liabilities** | $249,127 | $274,906 | | **Total Stockholders' Equity** | $68,097 | $90,823 | Consolidated Statement of Operations Data (in thousands) | | 2022 | 2021 | 2020 | | :--- | :--- | :--- | :--- | | **Net revenues** | $252,628 | $280,615 | $291,670 | | **Income (loss) from operations** | $1,322 | $(19,017) | $(48,122) | | **Net loss** | $(7,716) | $(23,098) | $(10,358) | | **Net loss attributable to Synchronoss** | $(17,468) | $(58,451) | $(48,683) | [Notes to Consolidated Financial Statements](index=67&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes provide critical details supporting the financial statements, including the sale of the DXP business, revenue disaggregation, goodwill balance, debt structure, capital stock, and the SEC settlement - On May 11, 2022, the company closed the sale of its Digital Experience Platform (DXP) business to iQmetrix for a total potential purchase price of up to **$14 million**, resulting in a gain of **$2.5 million**[352](index=352&type=chunk)[355](index=355&type=chunk) Revenue by Product Line (in thousands) | Product Line | 2022 | 2021 | | :--- | :--- | :--- | | **Cloud** | $163,331 | $165,982 | | **Digital** | $40,338 | $54,456 | | **Messaging** | $48,959 | $60,177 | | **Total** | $252,628 | $280,615 | - The goodwill balance was **$210.9 million** as of December 31, 2022, with no impairment recorded as the fair value of the reporting unit exceeded its carrying value[463](index=463&type=chunk)[465](index=465&type=chunk) - The company has **$141.1 million** in aggregate principal amount of **8.375% Senior Notes due 2026**, with interest payable quarterly[476](index=476&type=chunk)[483](index=483&type=chunk) - The company settled with the SEC and agreed to pay a civil penalty of **$12.5 million** in equal quarterly installments over two years[551](index=551&type=chunk) [Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](index=106&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20with%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) This item is not applicable to the company - Not applicable[558](index=558&type=chunk) [Item 9A. Controls and Procedures](index=106&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and internal control over financial reporting were effective as of December 31, 2022, a conclusion affirmed by the independent auditor - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of December 31, 2022[559](index=559&type=chunk) - Management concluded that the company's internal control over financial reporting was effective as of December 31, 2022[560](index=560&type=chunk) - Ernst & Young LLP, the independent registered public accounting firm, provided an **unqualified opinion** on the effectiveness of the company's internal control over financial reporting as of December 31, 2022[561](index=561&type=chunk)[565](index=565&type=chunk) [Item 9B. Other Information](index=108&type=section&id=Item%209B.%20Other%20Information) The company reports that there is no other information to disclose for this item - None[572](index=572&type=chunk) Part III [Item 10. Directors, Executive Officers and Corporate Governance](index=108&type=section&id=Item%2010.%20Directors,%20Executive%20Officers%20and%20Corporate%20Governance) Information required for this item is incorporated by reference from the company's definitive Proxy Statement for its 2023 Annual Meeting of Stockholders - Information for this item is incorporated by reference from the Registrant's definitive Proxy Statement for its 2023 Annual Meeting of Stockholders[10](index=10&type=chunk) [Item 11. Executive Compensation](index=108&type=section&id=Item%2011.%20Executive%20Compensation) Information regarding executive compensation is incorporated by reference from the company's definitive Proxy Statement for its 2023 Annual Meeting of Stockholders - Information for this item is incorporated by reference from the Registrant's definitive Proxy Statement for its 2023 Annual Meeting of Stockholders[10](index=10&type=chunk)[576](index=576&type=chunk) [Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=108&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Information concerning security ownership by certain beneficial owners and management is incorporated by reference from the company's definitive Proxy Statement for its 2023 Annual Meeting of Stockholders - Information for this item is incorporated by reference from the Registrant's definitive Proxy Statement for its 2023 Annual Meeting of Stockholders[10](index=10&type=chunk)[577](index=577&type=chunk) [Item 13. Certain Relationships and Related Transactions, and Director Independence](index=108&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions,%20and%20Director%20Independence) Information regarding certain relationships, related party transactions, and director independence is incorporated by reference from the company's definitive Proxy Statement for its 2023 Annual Meeting of Stockholders - Information for this item is incorporated by reference from the Registrant's definitive Proxy Statement for its 2023 Annual Meeting of Stockholders[10](index=10&type=chunk)[578](index=578&type=chunk) [Item 14. Principal Accounting Fees and Services](index=109&type=section&id=Item%2014.%20Principal%20Accounting%20Fees%20and%20Services) Information concerning the fees and services of the company's principal accountants is incorporated by reference from the company's definitive Proxy Statement for its 2023 Annual Meeting of Stockholders - Information for this item is incorporated by reference from the Registrant's definitive Proxy Statement for its 2023 Annual Meeting of Stockholders[10](index=10&type=chunk)[579](index=579&type=chunk) Part IV [Item 15. Exhibits, Financial Statement Schedules](index=109&type=section&id=Item%2015.%20Exhibits,%20Financial%20Statement%20Schedules) This section lists the financial statements, financial statement schedules, and all exhibits filed as part of the Annual Report on Form 10-K - This section contains the index to the consolidated financial statements, financial statement schedules, and a list of all exhibits filed with the report[581](index=581&type=chunk)[583](index=583&type=chunk) [Item 16. Form 10-K Summary](index=112&type=section&id=Item%2016.%20Form%2010-K%20Summary) The company indicates that there is no Form 10-K summary - None[592](index=592&type=chunk)

Synchronoss Technologies, Inc. (NASDAQ:SNCR) Q4 2022 Earnings Conference Call March 7, 2023 4:30 PM ET Company Participants Jeff Miller - President and Chief Executive Officer Lou Ferraro - Chief Financial Officer Conference Call Participants Josh Nichols - B. Riley Michael Latimore - Northland Capital Markets Operator Good afternoon. Welcome to Synchronoss Technologies Fourth Quarter and Full Year 2022 Earnings Conference Call. Joining us today are Synchronoss Technologies President and CEO, Jeff Miller; ...

Financial Data and Key Metrics Changes - In Q3 2022, total revenue decreased by 14% to $59.9 million from $69.8 million in the prior year period, primarily due to deferred revenue runoff, divestiture of assets, unfavorable foreign exchange impacts, and a slowdown in purchasing activity [41][42] - Adjusted EBITDA decreased by 7% to $11.5 million, with a margin of 19.1%, compared to $12.3 million and 17.6% in the prior year period [46] - Net loss improved to $1.3 million or negative $0.01 per share, compared to a net loss of $9.8 million or negative $0.11 per share in the prior year [45] Business Line Data and Key Metrics Changes - Cloud revenue was $38.6 million, down 11% year-over-year, but accounted for 64% of total revenue, up from 62% in the same period last year [36] - Digital revenue decreased by 33% year-over-year to $9.6 million, making up 16% of total revenue [37] - Messaging revenue was $11.7 million, down 5% year-over-year, representing 20% of total revenue [37] Market Data and Key Metrics Changes - The company experienced a negative impact of approximately $1.8 million from foreign currency fluctuations in Q3, contributing to the overall revenue decline [42] - The global economic environment, including foreign exchange, represented revenue headwinds across all business lines, causing delays in customer decisions and slowing mobile handset purchases [14] Company Strategy and Development Direction - The company continues to execute its cloud-first strategy, focusing on subscriber growth and cloud invoiced revenue growth, which reached 65% of total revenue for the first nine months of 2022, up from 58% in the previous year [9][41] - The company aims to simplify its business composition to highlight the strong profit and growth profile of its cloud business while driving free cash flow improvements [14] - New customer agreements and expansions, including a letter of intent with a Tier 1 global operator, are expected to contribute significantly to future revenue [20][21] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenging macroeconomic environment but emphasized the solid fundamentals of the business and the ongoing focus on profitability and cash flow generation [33][34] - The company expects continued double-digit growth in cloud subscribers and invoiced cloud revenue, projecting incremental increases in revenue and EBITDA in Q4 [48][49] - The anticipated growth in 2023 is contingent on the macroeconomic landscape, but improvements in the cloud business are expected to drive overall EBITDA performance [64] Other Important Information - The company has made significant operational improvements, evidenced by an $11.8 million improvement in operating income driven by cost reductions [52] - The company is maintaining its full-year 2022 adjusted EBITDA expectations between $48 million and $55 million, while adjusting total GAAP revenue expectations to between $253 million and $260 million [50][51] Q&A Session Summary Question: Cost improvement initiatives and future plans - Management confirmed that the primary cost-saving actions are completed, but they continue to examine the operating cost structure for further efficiencies [56] Question: Revenue expectations from new Tier 1 customer - Management indicated that the new customer is expected to generate over $50 million in revenue over the life of the contract, with approximately $1 million expected in Q4 from initial implementation and professional services [58][59] Question: Outlook for product categories and EBITDA growth - Management anticipates that cloud will continue to grow as a percentage of overall revenue, while messaging and digital will also grow but at a moderated pace [63] - The macroeconomic landscape will influence EBITDA growth, but improvements in the cloud business are expected to drive overall performance [64]

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, 2022 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 ...