Synchronoss (SNCR) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term. Revisions to Earnings Estimates For the current quarter, Synchronoss is expected to post earnings of $0.07 per share, indicating a change of +125.9% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days. With an impressive externally audited track record, our proprietary stock ...

About Synchronoss Investor Relations Contact: Tom Colton and Alec Wilson Gateway Group, Inc. SNCR@gateway-grp.com Synchronoss granted the newly hired Japan Country Manager an aggregate of 15,000 time-based restricted stock awards. The shares of restricted stock will vest 1/3rd on the first, second, and third anniversary of the grant date, subject to continuous service after the first and second vesting. In addition, the employee received an aggregate of 5,000 time-based stock option awards. The Stock Option ...

BRIDGEWATER, N.J., May 29, 2024 (GLOBE NEWSWIRE) -- Synchronoss Technologies, Inc. ("Synchronoss" or the "Company") (NASDAQ: SNCR), a global leader and innovator in personal cloud platforms, is pleased to announce that Junji Nishara has been appointed as the new Country Manager for Japan operations, effective May 15, 2024. Synchronoss, which has operated in Japan for over 20-years, announced on November 1, 2023, that it will focus on its Cloud business following the sale of its Messaging and NetworkX busine ...

Core Insights - Synchronoss Technologies has appointed Junji Nishihara as the new Country Manager for Japan operations, effective May 15, 2024, highlighting the company's commitment to the Japanese market as a growth opportunity [1][4] - The company is shifting its focus to its Cloud business following the sale of its Messaging and NetworkX businesses, aiming to concentrate management resources and expand services for existing and new Cloud customers [2] - Synchronoss Personal Cloud has been deployed by SoftBank Corp. to power its Anshin Data Box service, which allows customers to backup and restore digital content [3] Company Strategy - The company emphasizes the importance of the Japanese market for growth and aims to enhance customer relationships and business expansion under the leadership of the new Country Manager [4] - Synchronoss is positioning itself to leverage the increasing adoption of cloud services in Japan, particularly in the SaaS sector, to address customer challenges across various industries [4][5] Leadership Background - Junji Nishihara brings extensive experience from previous leadership roles in sales and management at Hewlett-Packard Japan, Amazon Web Services, and Microsoft Japan, which positions him well to drive Synchronoss's growth in Japan [5] Company Overview - Synchronoss Technologies is recognized as a global leader in personal Cloud solutions, providing service providers with tools to create secure connections with subscribers, thereby enhancing revenue streams and reducing expenses [6]

The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price. Do they really matter, though? Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Synchronoss (SNCR) . Synchronoss currently has an average broker ...

Synchronoss (SNCR) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future. Over the past month, shares of this mobile services company have returned +43.5%, compared to the Zacks S&P 500 composite's +4.2% change. During this period, the Zacks Internet - Software industry, which Synchronoss falls in, has gained 3.8%. The key question now is: What could be the stock's futur ...

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) |