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@ ...

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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]

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SNCR's full-year Zacks Consensus Estimates are calling for earnings of $1.58 per share and revenue of $174.4 million. These results would represent year-over-year changes of -3.07% and +0.46%, respectively. Investors should also take note of any recent adjustments to analyst estimates for Synchronoss. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performanc ...

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]

Group 1: Synchronoss (SNCR) Performance - Synchronoss shares increased by 12.3% to close at $12.23, supported by strong trading volume, significantly higher than normal [1] - The stock has gained 4.9% over the past four weeks, indicating a positive trend [1] - The company is experiencing strong recurring revenue growth and has secured strategic multiyear contracts with major customers [1] Group 2: Earnings Expectations - Synchronoss is expected to report quarterly earnings of $0.29 per share, reflecting a year-over-year decline of 34.1% [2] - Revenue expectations for the upcoming quarter are $42.11 million, which is a 2% decrease from the same quarter last year [2] - The consensus EPS estimate for Synchronoss has been revised 2.9% higher in the last 30 days, suggesting potential price appreciation [3] Group 3: Industry Context - Synchronoss operates within the Zacks Internet - Software industry, where BILL Holdings is another notable company [3] - BILL Holdings has a consensus EPS estimate of $0.38, which is a 36.7% decrease compared to the previous year [4] - Both Synchronoss and BILL Holdings currently hold a Zacks Rank of 3 (Hold), indicating a neutral outlook [3][4]

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]

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 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 [13][15] 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 offerings [12] - A new go-to-market strategy was announced, introducing Capsyl, a Synchronoss branded Personal Cloud product aimed at smaller and international operators [22] - The company is leveraging AI and machine learning to enhance user engagement and improve operational efficiency [11][48] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth prospects for 2025, anticipating mid-single digit subscriber growth across the existing customer base [18] - The company expects to achieve a revenue range of $170 million to $180 million for 2025, with adjusted EBITDA projected between $52 million and $56 million [37] - Management highlighted the importance of the tax refund process, which is expected to positively impact the company's financial position [36] Other Important Information - The company reported a free cash flow of $9.1 million in Q4, a significant improvement from a negative $4.4 million in the prior year [34] - The company is actively exploring options for debt refinancing and expects to have a clear path for refinancing senior notes and term loans [55] 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 potential increases in Q4 due to new customer opportunities [44] Question: How does AI impact revenue opportunities and cost efficiency? - AI is seen as a way to enrich consumer experience and create additional revenue opportunities, while also improving operational efficiency [48][49] Question: What are the plans for debt refinancing? - The company is actively looking at debt refinancing options and expects to have a clear path in the coming months [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]

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].