About this content About Angela Harmantas Angela Harmantas is an Editor at Proactive. She has over 15 years of experience covering the equity markets in North America, with a particular focus on junior resource stocks. Angela has reported from numerous countries around the world, including Canada, the US, Australia, Brazil, Ghana, and South Africa for leading trade publications. Previously, she worked in investor relations and led the foreign direct investment program in Canada for the Swedish government ...

Revenue and Guidance - First quarter revenue was $42.2 million, with 93.1% of it being recurring revenue[1][6] - The company reaffirms its full-year revenue guidance of between $170 million and $180 million[1][12] - Recurring revenue is expected to be at least 90% of total revenue for the year[1][12] - Net revenues for Q1 2025 were $42,213 thousand, a decrease of 1.75% from $42,965 thousand in Q1 2024[27] Profitability and Margins - Gross margin expanded to 70.4%, while adjusted gross margin rose to 79.0%[1][7] - Adjusted EBITDA increased by 17.0% to $12.7 million, with an adjusted EBITDA margin of 30.2%[1][12] - Adjusted gross margin is projected to be between 78% and 80% for the full year[1][12] - Adjusted gross profit for Q1 2025 was $33,359 thousand, an increase from $32,789 thousand in Q1 2024, resulting in an adjusted gross margin of 79.0%[31] Net Income and Loss - The company reported a net loss of $3.8 million, compared to a net income of $4.5 million in the prior year period[1][7] - Net loss attributable to Synchronoss was $3,817 thousand in Q1 2025, compared to a net income of $2,341 thousand in Q1 2024[32] - Basic earnings per share for Q1 2025 was $(0.37), down from $0.24 in Q1 2024[27] Cash Flow and Expenses - Free cash flow for the first quarter was $(3.0) million, compared to $(3.3) million in the prior year period[1][12] - Free cash flow for Q1 2025 was $(3,017) thousand, compared to $(3,276) thousand in Q1 2024[34] - Cash and cash equivalents decreased to $29,138 thousand as of March 31, 2025, from $33,375 thousand at the end of 2024[30] - Total costs and expenses decreased by 11.5% to $33,984 thousand in Q1 2025 from $38,389 thousand in Q1 2024[27] Operational Performance - Income from operations increased significantly to $8,229 thousand in Q1 2025, compared to $4,576 thousand in Q1 2024[27] - Net cash provided by operating activities was $293 thousand in Q1 2025, down from $527 thousand in Q1 2024[34] Debt and Financing - The company closed a $200 million term loan refinancing, extending debt maturity until 2029[1][4] Stock-Based Compensation - The company reported a significant increase in stock-based compensation expense to $2,129 thousand in Q1 2025 from $1,110 thousand in Q1 2024[32]

Financial Data and Key Metrics Changes - Revenue for the quarter was $42,400,000, reflecting a subscriber growth of 3.3% across the global customer base [3] - Adjusted EBITDA increased 17% year over year to $12,700,000, representing an adjusted EBITDA margin of 30.2% [4] - Total revenue was $42,200,000, down slightly from $43,000,000 in the prior year period due to the expiration of a customer contract [13] - Adjusted gross profit was $33,400,000 or 79% of total revenue, benefiting from cost efficiencies [14] - Net loss was $3,800,000 or a negative $0.37 per share, primarily due to $5,600,000 in non-cash foreign exchange losses [15] - Cash and cash equivalents were $29,100,000 as of 03/31/2025, with free cash flow at negative $3,000,000 [16] Business Line Data and Key Metrics Changes - Quarterly recurring revenue was 93.1% of total revenue, indicating a stable cloud business model [13] - Cloud subscriber growth was 3.3%, driven by demand for the personal cloud platform [13] Market Data and Key Metrics Changes - The company is seeing accelerated adoption at AT&T through streamlined digital onboarding, increasing cloud awareness and elevating take rates [8] - Positive retail sales momentum for Anshin Data Box at SoftBank resulted in subscriber additions ahead of expectations [9] - Verizon's cloud offer transition to a premium My Plan PERC has led to continued growth in cloud PERC adoption [9] Company Strategy and Development Direction - The strategic transformation to a leading global cloud solutions provider has resulted in a more predictable and stable business model [3] - The company is focused on enhancing its personal cloud platform and pursuing growth opportunities, supported by a new $200,000,000 term loan [6] - The company is optimistic about new customer prospects and aims for double-digit revenue growth in the future [11] Management Comments on Operating Environment and Future Outlook - Management reiterated annual guidance metrics despite challenging macroeconomic conditions, including tariffs and global trade uncertainties [4] - The company is closely monitoring industry headwinds, particularly tariffs that could impact device costs and upgrade cycles [12] - Management expressed confidence in the sales pipeline, which is stronger than the previous quarter [11] Other Important Information - The company completed a refinancing of its debt, strengthening its capital structure and extending debt maturity to 2029 [6] - The company is committed to cost control, having cut overall operational expenses by 11.5% year over year [6] Q&A Session Summary Question: Cost structure and further reductions - Management believes the current cost structure is largely where it wants it to be, with major reductions made at the end of 2023 and 2024 [20] Question: New customer prospects - Opportunities for new customers are global, with active conversations in the U.S., Asia Pacific, Europe, and Africa [22] Question: Expected free cash flow - Free cash flow is expected to be between $11,000,000 and $16,000,000 for the year, with a consistent performance anticipated [26] Question: Growth comparison between AT&T and SoftBank - Both AT&T and SoftBank are growing at a healthy pace, contributing significantly to the first quarter's growth [27] Question: Modeling gross margins - Adjusted gross margins are expected to remain between 78% and 80% throughout the year [28]

Financial Performance - The company reported total revenue of $42.2 million for the first quarter of 2025, a decrease from $43.0 million in the prior year period, primarily due to the expiration of a customer contract in December 2024, despite a 3.3% growth in cloud subscribers year-over-year [5][6]. - Quarterly recurring revenue constituted 93.1% of total revenue, an increase from 91.1% in the prior year period [6]. - Gross profit increased by 3.4% to $29.7 million, resulting in a gross margin of 70.4%, compared to 66.9% in the prior year [6]. - Adjusted gross profit rose by 1.7% to $33.4 million, with an adjusted gross margin of 79.0%, up from 76.3% in the prior year [6]. - The company reported a net loss of $3.8 million, or $(0.37) per diluted share, compared to a net income of $4.5 million, or $0.23 per diluted share, in the prior year period [6][23]. - Adjusted EBITDA increased by 17.0% to $12.7 million, with an adjusted EBITDA margin of 30.2%, compared to 25.4% in the prior year [6][23]. Operational Highlights - The company successfully executed a $200 million term loan refinancing, extending debt maturity until 2029, which strengthens its capital structure and provides anticipated financial stability [3][5]. - The company reaffirmed its full-year guidance metrics, indicating confidence in achieving its financial targets despite a volatile global economy [3][7]. Cash Flow and Liquidity - Cash and cash equivalents were reported at $29.1 million as of March 31, 2025, down from $33.4 million as of December 31, 2024 [6][21]. - Free cash flow for the first quarter was $(3.0) million, compared to $(3.3) million in the prior year period, indicating a consistent cash spend during this historically heavy cash outflow period [6][26]. 2025 Financial Outlook - The company reiterated its full-year revenue guidance range of between $170 million and $180 million, with recurring revenue expected to be at least 90% of total revenue [11]. - Adjusted gross margin is projected to be between 78% and 80%, and adjusted EBITDA is expected to be between $52 million and $56 million, equating to at least a 30% adjusted EBITDA margin [11]. - Free cash flow is anticipated to be between $11 million and $16 million, excluding the expected federal tax refund of approximately $28 million plus applicable interest [11].

Synchronoss (SNCR) closed at $10.48 in the latest trading session, marking a +0.38% move from the prior day. The stock's performance was ahead of the S&P 500's daily gain of 0.15%. Meanwhile, the Dow gained 0.35%, and the Nasdaq, a tech-heavy index, lost 0.09%.Heading into today, shares of the mobile services company had lost 6.2% over the past month, lagging the Computer and Technology sector's gain of 1.15% and the S&P 500's loss of 0.21% in that time.The investment community will be paying close attentio ...

Core Viewpoint - Synchronoss Technologies Inc. has successfully entered into an agreement to refinance its existing senior notes and term loan facilities with a new $200 million, four-year term loan, enhancing its financial flexibility and extending the maturity of its debt until 2029 [1][4]. Financial Details - The proceeds from the new term loan will be utilized to repay the remaining $73.6 million principal of the original $75 million term loan facility and the $121 million remainder of the senior notes [2]. - Approximately $8 million from the company's balance sheet will be used to complete the transaction, covering fees, call protection payments, and accrued interest [2]. - The new term loan has a maturity date of April 24, 2029, and is priced at SOFR plus 700 basis points, with a leverage-based stepdown of 50 basis points [3]. Management Commentary - The Chief Financial Officer of Synchronoss expressed satisfaction with the completion of the new term loan facility, highlighting that it eliminates the near-term overhang associated with the now-retired senior notes and enhances the company's financial stability [4]. - The refinancing is expected to improve the capital structure, allowing Synchronoss to invest further in its Personal Cloud solution and provide greater operational flexibility [4]. Company Overview - Synchronoss Technologies is a global leader in personal Cloud solutions, enabling service providers to create secure connections with subscribers, thereby enhancing revenue streams and reducing expenses [5].

Group 1 - Synchronoss (SNCR) ended the recent trading session at $10.53, showing a +1.74% change from the previous day's closing price, which lagged behind the S&P 500's daily gain of 2.51% [1] - Over the past month, Synchronoss shares experienced a loss of 13.89%, underperforming the Computer and Technology sector's loss of 12.18% and the S&P 500's loss of 8.86% [1] Group 2 - The upcoming financial results for Synchronoss are anticipated to show an EPS of $0.29, reflecting a 34.09% decline compared to the same quarter last year, with a revenue estimate of $42.11 million, indicating a 2% decrease from the same quarter last year [2] - For the annual period, the Zacks Consensus Estimates predict earnings of $1.58 per share and revenue of $174.4 million, representing shifts of -3.07% and +0.46% respectively from the previous year [3] Group 3 - The Zacks Rank system, which assesses estimate changes, indicates that positive revisions can signal optimism about a company's business outlook [4] - Synchronoss currently holds a Zacks Rank of 2 (Buy), with the consensus EPS estimate remaining unchanged over the last 30 days [5] Group 4 - Synchronoss is trading at a Forward P/E ratio of 6.55, significantly lower than the industry average Forward P/E of 23.39, suggesting that the company is trading at a discount [6] - The Internet - Software industry, part of the Computer and Technology sector, has a current Zacks Industry Rank of 82, placing it in the top 34% of all industries [6]

BRIDGEWATER, N.J., April 22, 2025 (GLOBE NEWSWIRE) -- Synchronoss Technologies Inc. ("Synchronoss" or the "Company") (Nasdaq: SNCR), a global leader and innovator in Personal Cloud platforms, will hold a conference call on Tuesday, May 6, 2025 at 4:30 p.m. Eastern time (1:30 p.m. Pacific time) to discuss its financial results for the first quarter ended March 31, 2025. Financial results will be issued in a press release prior to the call. Investor Relations Contact: Ryan Gardella ICR for Synchronoss SNCRIR@ ...

Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis and ...

Core Viewpoint - Synchronoss Technologies (SNCR) has shown strong performance in the stock market, with a 12.2% return over the past three months, outperforming both the Zacks Computer and Technology sector and the Internet - Software industry [1] Group 1: Recent Performance - The recent rally in SNCR shares is attributed to a strong fourth-quarter 2024 performance, driven by a growing cloud subscriber base, particularly in its Personal Cloud solution [2] - In the fourth quarter of 2024, Synchronoss reported a 6% year-over-year increase in cloud subscribers, contributing to overall revenue growth [4] - The company has outperformed industry peers such as Appian, BlackBerry, and Five9, whose shares have declined significantly over the same period [1] Group 2: Product and Market Expansion - The expanding cloud market is creating favorable conditions for SNCR, with its Personal Cloud platform designed to enhance revenue, customer engagement, and digital security for network operators and mobile insurance providers [3] - SNCR launched an enhanced version of its Personal Cloud platform in Q3 2024, introducing features like "Memories" and AI-enhanced "Genius" to improve user engagement [5] - The company also introduced Capsyl Cloud, a turnkey personal cloud platform aimed at mobile operators and broadband service providers, facilitating rapid deployment of secure cloud services [6] Group 3: Partnerships and Contracts - SNCR is strengthening its market position through partnerships with major telecom providers such as AT&T, Verizon, and SoftBank, which enhances its growth prospects [7] - The relationship with SoftBank is particularly significant, as it allows for broader integration of SNCR's cloud platform across SoftBank's diverse portfolio [8] - In December 2024, SNCR secured a three-year contract extension with a major U.S. telecom operator, providing predictable revenue streams and long-term stability [9] Group 4: Financial Estimates - The Zacks Consensus Estimate for second-quarter 2025 revenues is $42.94 million, indicating a 1.2% year-over-year decline [10] - The consensus estimate for second-quarter 2025 earnings is 39 cents per share, reflecting a year-over-year decrease of 18.75% [11] - For 2025, revenues are estimated at $174.40 million, showing a year-over-year increase of 0.46%, while earnings are projected at $1.58 per share, implying a year-over-year decline of 3.07% [11]