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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].

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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 ...