Group 1 - Synchronoss (SNCR) shares closed at $12, reflecting a decrease of 1.88% from the previous trading session, underperforming compared to the S&P 500's loss of 1.12% [1] - Over the past month, Synchronoss shares gained 31.5%, outperforming the Computer and Technology sector, which saw a decline of 4.05%, and the S&P 500, which declined by 2.91% [1] Group 2 - The upcoming earnings per share (EPS) for Synchronoss is projected at $0.29, indicating a 34.09% decrease compared to the same quarter last year [2] - Revenue is expected to be $42.11 million, reflecting a 2% decline from the corresponding quarter of the previous year [2] Group 3 - For the full year, analysts expect earnings of $1.58 per share and revenue of $174.4 million, representing changes of -3.07% and +0.46% respectively from the previous year [3] Group 4 - Recent changes to analyst estimates for Synchronoss are important as they reflect short-term business trends, with positive revisions indicating analyst optimism regarding the company's business and profitability [4] Group 5 - The Zacks Rank system, which considers estimate changes, provides a rating system for investors, with the current Zacks Rank for Synchronoss being 3 (Hold) [5][6] Group 6 - Synchronoss is currently traded at a Forward P/E ratio of 7.74, which is a discount compared to the average Forward P/E of 27.97 for its industry [7] - The Internet - Software industry, part of the Computer and Technology sector, has a Zacks Industry Rank of 78, placing it in the top 32% of over 250 industries [7]

Synchronoss (SNCR) shares soared 12.3% in the last trading session to close at $12.23. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 4.9% gain over the past four weeks.Synchronoss is benefiting from strong recurring revenue growth, strategic multiyear contracts with major customers, and the successful launch of its Capsyl Personal Cloud solution.This mobile services company is expected to post quarterly earnings of $0.29 per sh ...

Financial Data and Key Metrics Changes - 2024 was a landmark year for the company, achieving a 5.7% year-over-year revenue increase to $173.6 million, exceeding the midpoint of the outlook [7] - Adjusted EBITDA for the full year was over $50 million, a 61% increase year-over-year, with adjusted EBITDA margins at approximately 29% [7][34] - The company reported a net income of $4.6 million for the full year, compared to a net loss of $64.5 million in 2023 [33] Business Line Data and Key Metrics Changes - The company achieved a 6% year-over-year subscriber growth in Q4, contributing to a recurring revenue model that now represents 91% of total revenue [7][28] - Adjusted gross profit in Q4 increased by 12.7% to $35 million, representing 79.3% of total revenue [30] - Income from operations for the full year was $21.7 million, a significant improvement from a loss of $10.6 million in 2023 [31] Market Data and Key Metrics Changes - The company signed significant multiyear contract extensions with AT&T and SFR, with over 90% of projected 2025 revenue under multiyear contracts with global tier one customers [8][9] - The company is experiencing positive early indicators of success in expanding its Personal Cloud solution, particularly with AT&T and SoftBank [12][14] Company Strategy and Development Direction - The company is focused on organic growth opportunities within its blue-chip customer base and expanding its Personal Cloud solution beyond traditional phone upgrade cycles [12] - The introduction of Capsyl, a Synchronoss branded Personal Cloud product, aims to accelerate adoption and global availability, targeting smaller and international operators [22] - The company is pivoting its business model to emerge as a high-margin, free cash flow positive cloud provider, with a focus on new customer expansion and continued growth [26] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the early positive signs of subscriber adoption at AT&T and the expansion of Verizon cloud growth [26] - The company anticipates mid-single digit subscriber growth across its existing customer base in 2025, despite some expected revenue declines from specific customers [18][25] - Management highlighted the potential of AI to enhance product offerings and improve operational efficiency, which could drive top-line growth and expand margins [47][49] Other Important Information - The company expects a range of $170 million to $180 million in revenue for 2025, with adjusted EBITDA projected between $52 million and $56 million [37] - The company is confident in receiving a tax refund of approximately $28 million, which will be used to prepay a portion of its term loan [36] Q&A Session Summary Question: Can you talk about the degree of cost-cutting or efficiency efforts completed and any expected seasonality? - Management believes cost-cutting actions are substantially complete but will continue to seek efficiencies, especially with AI technologies [42] - Revenue is expected to be steady throughout 2025, with increases anticipated from Q1 to Q4 [44] Question: How does AI offer new revenue opportunities or help cut costs? - AI is being employed to enrich consumer experiences and create additional revenue opportunities, while also improving operational efficiency and reducing costs [48][49] Question: What are the plans for debt refinancing? - The company is actively examining options for refinancing its senior notes and term loan and will provide updates as progress is made [55] Question: How important is the prepaid sector to growth? - The prepaid sector currently represents less than 5% of the total customer base but is expected to grow and contribute to subscriber revenue projections in 2025 [58]

Synchronoss Technologies, Inc. (NASDAQ:SNCR) Q4 2024 Earnings Conference Call March 11, 2025 4:30 PM ET Company Participants Ryan Gardella - Investor Relations Jeff Miller - President and Chief Executive Officer Lou Ferraro - Chief Financial Officer Conference Call Participants Richard Baldry - Roth Capital Operator Greetings and welcome to the Synchronoss Technologies Fourth Quarter 2024 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will f ...

Business Strategy and Focus - The company divested its Messaging and NetworkX businesses on October 31, 2023, to focus solely on cloud-centric solutions [24]. - The company announced a new strategy focusing on cloud-centric solutions, although there is no guarantee of consistent and sustainable profitability as a result [51]. - The company has pivoted its strategy to focus on cloud-centric solutions, having divested its Messaging Solutions and Digital Solutions business units on October 31, 2023 [101]. - The company plans to continue making acquisitions and strategic transactions to strengthen its business, but these may not produce anticipated results [88]. - The company anticipates continued growth in B2B and Business-to-Business-to-Consumer driving customer transactions, particularly in the telecom market [209]. Financial Performance - Net revenues increased by $9.4 million to $173.6 million for the year ended December 31, 2024, compared to 2023, primarily due to continued cloud subscriber growth [214]. - Income from operations improved by $32.3 million, reaching $21.7 million for the year ended December 31, 2024, compared to a loss of $10.6 million in 2023 [214]. - The Company reported a net income from continuing operations of $6.2 million for the year ended December 31, 2024, compared to a loss of $34.1 million in 2023 [214]. - Research and development expenses decreased by $3.7 million to $42.8 million in 2024 from $46.6 million in 2023 [214]. - Selling, general and administrative expenses decreased by $13.5 million to $51.7 million in 2024 from $65.2 million in 2023 [214]. Market Trends and Opportunities - The personal cloud market is projected to grow at an 18.5% compound annual growth rate (CAGR) from 2023 to 2028, indicating strong consumer demand [34]. - By 2027, North America is expected to achieve 90% 5G penetration, creating opportunities for service providers to monetize new offerings [30]. - Nearly one-third of users in North America who have not adopted personal cloud solutions intend to do so within the next three years, highlighting market potential [34]. - The transition to 5G is expected to enable new use cases and applications, with Mobile Value-Added-Services projected to reach $309.1 billion by 2025 [29]. Risks and Challenges - The company faces substantial customer concentration, with a limited number of customers accounting for a significant portion of revenue, posing a risk to financial stability [51]. - The company may need to engage in equity or debt financings to secure additional funds, which could lead to significant dilution of existing stockholders' ownership interests [54]. - The company has experienced an increase in the average length of its sales cycles, which could adversely affect revenue growth and profitability [56]. - The company faces significant competition from established firms and new entrants, which could adversely impact its market share and pricing power [112]. - The company is subject to various operational risks, including reliance on third-party providers and potential defects in complex products [51]. Regulatory and Compliance Issues - The company faces potential regulatory challenges that could adversely affect its ability to realize cost or revenue synergies from acquisitions and divestitures [92]. - Increased regulation regarding privacy and data protection could lead to higher operational costs and reduced demand for the company's services [126]. - Compliance with the EU GDPR and similar regulations imposes comprehensive obligations that could increase costs and limit international growth opportunities [136]. - The company is subject to evolving privacy laws, which may require significant system changes and could adversely affect marketing effectiveness and margins [137]. Cybersecurity and Operational Risks - The company faces increasing risks related to cybersecurity incidents, including potential breaches that could disrupt operations and harm reputation [74]. - The company has implemented various security measures, but unauthorized access and theft of intellectual property remain significant concerns [78]. - The Chief Information Security Officer (CISO) oversees cybersecurity risk management, reporting to the Chief Technology Officer, ensuring a systematic approach to threat assessment and mitigation [189]. - Cybersecurity risks are managed through a comprehensive program, with ongoing investments in technology and personnel to protect critical systems and information [188]. Customer Relationships and Revenue - Customer renewal rates are critical for future success, as subscription agreements typically last three to five years, and any decline could materially affect revenue [111]. - The company's top five customers accounted for 97.6%, 96.6%, and 94.6% of net revenues for the years ended December 31, 2024, 2023, and 2022, respectively [63]. - Verizon and AT&T each accounted for more than 10% of the company's revenues in 2024 and 2023, with a contract extension with AT&T until December 31, 2027 [63]. Financial Obligations and Debt - The maturity date of the company's Senior Notes is June 30, 2026, and failure to refinance or repay could lead to significant financial challenges [54]. - The Senior Notes are unsecured and effectively subordinated to any secured indebtedness, meaning they have lower priority in the event of liquidation [167]. - The company may face significant operational and financial restrictions due to the terms of its Credit Agreement, which could harm its business prospects [158]. - Future debt or preferred equity securities may adversely affect the market price of the company's common stock, as these securities would have seniority over common stock [166].

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Financial Performance - Fourth quarter revenue increased by 6.8% year-over-year to $44.2 million, with 91% of this revenue being recurring[1] - Total revenue for the full year 2024 was $173.6 million, reflecting a 5.7% increase from the previous year, driven by 6.0% cloud subscriber growth[3] - Net income for the fourth quarter was $7.9 million, compared to a net loss of $35.0 million in the prior year period[6] - Net income from continuing operations for the year 2024 was $6,154 thousand, compared to a loss of $34,054 thousand in 2023[25] - GAAP net income for Q4 2024 was $7,889,000 compared to a loss of $35,001,000 in Q4 2023[27] - Non-GAAP net income for Q4 2024 was $10,419,000, a significant improvement from a loss of $10,400,000 in Q4 2023[27] Profitability Metrics - Gross margin expanded to 69.1%, while adjusted gross margin rose to 79.3%[1] - Adjusted EBITDA for the full year increased by 60.6% to $50.4 million, with an adjusted EBITDA margin of 29.0%[6] - The company reported an adjusted gross profit of $35,042 thousand for Q4 2024, with an adjusted gross margin of 79.3%[26] - Adjusted EBITDA for the year ended December 31, 2024, was $50,414,000, up from $31,396,000 in 2023[28] Cash Flow and Liquidity - Free cash flow for 2025 is anticipated to be between $11 million and $16 million, excluding the expected federal tax refund[11] - Cash and cash equivalents at the end of Q4 2024 were $33.4 million, up from $25.2 million at the end of Q3 2024[6] - Net cash provided by operating activities for the year 2024 was $28,280 thousand, compared to $18,829 thousand in 2023, an increase of 50.5%[25] - Free cash flow for Q4 2024 was $9,054,000, recovering from a negative $4,392,000 in Q4 2023[29] - The company reported a net cash provided by operating activities of $13,075,000 for Q4 2024, compared to a cash outflow of $407,000 in Q4 2023[29] Expenses and Costs - Total costs and expenses for the year 2024 were $151,912 thousand, down from $174,842 thousand in 2023, a reduction of 13.1%[21] - Interest expense increased to $18,003 thousand in 2024 from $13,963 thousand in 2023, a rise of 29.1%[21] - Stock-based compensation expense for Q4 2024 was $996,000, an increase from $501,000 in Q4 2023[27] - Restructuring, transition, and cease-use lease expenses for Q4 2024 totaled $1,976,000, down from $4,140,000 in Q4 2023[27] Future Outlook - The company expects 2025 revenue to be between $170 million and $180 million, with recurring revenue projected to be at least 90% of total revenue[11] - The launch of Capsyl, a new turn-key personal cloud platform, is aimed at mobile operators and broadband service providers[3] Shareholder Metrics - The weighted-average common shares outstanding for diluted earnings per share increased to 11,038 thousand in 2024 from 9,822 thousand in 2023[23] - The weighted-average shares outstanding for diluted earnings in Q4 2024 were 11,038,000, compared to 9,822,000 in Q4 2023[27]

Fourth Quarter Revenue Grew 6.8% Year-Over-Year to $44.2 Million, Including 91% Recurring Revenue GAAP Gross Margin Expands to 69.1%; Adjusted Gross Margin Rises to 79.3% Announced Three-Year Contract Extension with Major U.S. Telecom Provider in December Unveiled Capsyl, a Turn-Key Personal Cloud Solution for Global Operators, in March 2025 BRIDGEWATER, N.J., March 11, 2025 (GLOBE NEWSWIRE) -- Synchronoss Technologies Inc. (“Synchronoss” or the “Company”) (Nasdaq: SNCR), a global leader and innovator in Pe ...

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Group 1 - Synchronoss (SNCR) closed at $8.66, reflecting a +1.88% increase, outperforming the S&P 500's 1.12% gain [1] - Over the past month, Synchronoss shares have declined by 12.46%, while the Computer and Technology sector and the S&P 500 have lost 7.5% and 4.13% respectively [1] Group 2 - Synchronoss is set to announce its earnings on March 11, 2025, with an expected EPS of $0.10, representing a 111.76% increase year-over-year [2] - Revenue is anticipated to reach $43.64 million, indicating a 5.41% rise compared to the same quarter last year [2] Group 3 - Recent modifications to analyst estimates for Synchronoss are crucial, as they reflect short-term business trends and positive revisions are seen as favorable for the company's outlook [3] - The Zacks Rank system, which incorporates these estimate changes, provides a rating system for actionable insights [4] Group 4 - Synchronoss currently holds a Zacks Rank of 3 (Hold), with the consensus EPS estimate remaining unchanged over the last 30 days [5] - The company has a Forward P/E ratio of 5.84, significantly lower than the industry average of 25.91 [6] Group 5 - The Internet - Software industry, part of the Computer and Technology sector, has a Zacks Industry Rank of 133, placing it in the bottom 48% of over 250 industries [6][7]