Company Overview - Synchronoss Technologies is a global leader in personal cloud solutions, empowering service providers to establish secure and meaningful connections with their subscribers [10] - The company's SaaS Cloud platform simplifies onboarding processes, fosters subscriber engagement, and enhances revenue streams while reducing expenses and speeding up time-to-market [10] - Synchronoss Personal Cloud supports over 11 million subscribers worldwide, processes upwards of 50 million photos daily, and manages 230 petabytes of storage [2] Product Enhancements - The next-generation Synchronoss Personal Cloud platform includes expanded AI-powered photo editing tools, improved storage, security, and photo optimization [1] - The platform offers a significantly improved interface, making the user experience easier, more engaging, and fun [3] - Enhanced backup functionality for iPhone users automatically downloads, backs up, and removes original high-resolution photos and videos when iOS Storage Optimization is enabled [5] - Android users have greater control over backups with improved folder functionality, allowing them to discover and preview third-party app folders directly from the home screen and specify which content to backup [6] AI-Powered Features - The AI-powered Genius photo editing suite includes new tools and features such as a Background Remover, Emojis, and Smart Stickers, providing users with endless customization options [8] - The "Memories" feature offers customizable slideshows with atmospheric soundtracks, creating an immersive experience for users to share their favorite moments [7] - An expanded range of Genius Styles includes 3D, Sketch, Anime, Art Style, and Color Pop options, making it easier than ever to access enhanced images [8] Market Positioning - Synchronoss Personal Cloud is purpose-built for service providers and telecom operators, ensuring the utmost data security and privacy [4] - Unlike third-party over-the-top cloud solutions, Synchronoss Personal Cloud does not monitor user behavior nor integrate ads into the user experience [4] - The cross-platform app supports an array of devices and offers a simple storage and fee structure, giving users control over how and what they want to backup and protect [4]

Value Investing and Stock Selection - Value investing is a preferred method for identifying strong stocks across various market conditions, utilizing proven valuation metrics [1] - Zacks' Style Scores system highlights stocks with specific traits, such as high grades in the "Value" category, which are particularly attractive to value investors [2] Synchronoss Technologies (SNCR) Valuation Metrics - SNCR currently holds a Zacks Rank of 2 (Buy) and an A grade for Value, indicating strong potential [3] - The stock's P/E ratio of 13.12 is significantly lower than the industry average of 35.82, suggesting undervaluation [3] - SNCR's Forward P/E has ranged from -16 to 27.71 over the past 52 weeks, with a median of 8.48 [3] - The P/B ratio of 2.94 is also attractive compared to the industry average of 3.64, with a historical range of 2.08 to 5.22 and a median of 3.44 [4] Investment Outlook for SNCR - SNCR appears undervalued based on key valuation metrics and its strong earnings outlook, making it a compelling value stock [5] - The Zacks Rank emphasizes earnings estimates and revisions, but investors also consider value, growth, and momentum trends when selecting stocks [6]

Core Viewpoint - Synchronoss Technologies (SNCR) has experienced a significant share price increase of 16.3% over the past month, outperforming both the Zacks Computer & Technology sector and the Zacks Internet - Software industry, which saw increases of 6% and 11% respectively [1] Revenue Growth and Guidance - The recent positive share price movement is attributed to strong revenue growth guidance for 2024, with projected revenues of $172-$175 million, reflecting a year-over-year growth of 6-8% [2][3] - Recurring revenues are expected to contribute 90-92% of total revenues, an increase from the previous estimate of 85-90%, indicating a focus on stable income through cloud-based solutions [3] Cloud Business Performance - The cloud segment has been a key driver of growth, contributing to an overall 8% year-over-year revenue increase in Q3 2024, supported by a 5.1% rise in subscriber activity [4] - The launch of the latest version of the Personal Cloud platform includes new features that enhance operational efficiency and customer experience [5][6] Strategic Partnerships - Synchronoss has formed significant partnerships with major carriers such as AT&T, T-Mobile, Verizon, and Sprint, which enhance its service offerings and market presence [7] - A three-year contract extension with SFR, a major French telecommunications provider, strengthens its position in the European market with access to 27 million subscribers [8] Financial Performance and Challenges - Despite the positive revenue outlook, cash flow management remains a concern, with Q3 2024 showing mixed results; net cash flow was positive, but free cash flow was negative at $27,000, down from $1.1 million in the prior year [9] - The company has a mixed earnings surprise history, with two earnings beats and two misses over the last four quarters, and the consensus estimate for 2024 revenues indicates a decline of 19.32% [10] Investment Considerations - While revenue growth is promising, Synchronoss faces financial hurdles, including ongoing net losses and cash flow stability challenges, highlighting the need for improved operational efficiency [11] - The current Zacks Rank for SNCR is 3 (Hold), suggesting a cautious approach for investors [12]

Group 1 - Proactive provides fast, accessible, informative, and actionable business and finance news content to a global investment audience [2][3] - The news team covers key finance and investing hubs, focusing on medium and small-cap markets, as well as blue-chip companies and broader investment stories [2][3] - Proactive's content includes insights across various sectors such as biotech, pharma, mining, natural resources, battery metals, oil and gas, crypto, and emerging technologies [3] Group 2 - Proactive adopts technology to enhance workflows, utilizing decades of expertise and experience among its content creators [4] - The company employs automation and software tools, including generative AI, while ensuring all content is edited and authored by humans [5]

Group 1 - Proactive provides fast, accessible, informative, and actionable business and finance news content to a global investment audience [2][3] - The news team covers key finance and investing hubs, focusing on medium and small-cap markets, as well as blue-chip companies and broader investment stories [2][3] - Proactive's content includes insights across various sectors such as biotech, pharma, mining, natural resources, battery metals, oil and gas, crypto, and emerging technologies [3] Group 2 - Proactive is committed to adopting technology to enhance workflows, utilizing decades of expertise among its content creators [4] - The company employs automation and software tools, including generative AI, while ensuring all content is edited and authored by humans [5]

BRIDGEWATER, N.J., Dec. 12, 2024 (GLOBE NEWSWIRE) -- Synchronoss Technologies, Inc. (“Synchronoss” or the “Company”) (NASDAQ: SNCR), a global leader and innovator in personal cloud platforms, today announced a three-year contract extension with a leading U.S. telecom provider. Synchronoss Personal Cloud™ enables the provider to deliver cloud offerings for users to securely backup, manage, and share content across smartphones, devices, and the cloud. “We’re proud of our long-standing relationship with this k ...

Synchronoss Technologies (SNCR) shares have surged 44.2% in the year-to-date (YTD) period compared with the Zacks Internet - Software industry’s return of 25.2% and the broader Zacks Computer & Technology sector’s appreciation of 25.8%.SNCR has outperformed its peers, such as Alphabet (GOOGL) and Dropbox (DBX) , which also offer personal cloud services integrated with its respective platforms.Alphabet has returned 23.5% YTD, whereas Dropbox has lost 8.2% over the same time frame.  The outperformance can be ...

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 ...

Long-only investment, evaluating companies from an operational, buy-and-hold perspective.Quipus Capital does not focus on market-driven dynamics and future price action. Instead, our articles focus on operational aspects, understanding the long-term earnings power of companies, the competitive dynamics of the industries where they participate, and buying companies that we would like to hold independently of how the price moves in the future. Most QC calls will be holds, and that is by design. Only a very sm ...

Core Insights - Synchronoss Technologies (SNCR) reported a non-GAAP loss of 26 cents per share in Q3 2024, missing the Zacks Consensus Estimate of earnings of 25 cents and down from earnings of 35 cents in the same quarter last year [1] - Net revenues for the quarter were $43 million, an 8% increase year-over-year, but fell short of the Zacks Consensus Estimate by 0.79% [1][2] Financial Performance - Total revenues increased to $43 million from $39.8 million in the previous period, driven by a 5.1% increase in cloud subscriber growth [3] - Quarterly recurring revenues accounted for 92.2% of total revenues, up from 89.5% in the prior-year period [3] - Adjusted EBITDA for Q3 was $12.7 million, reflecting a 29.5% margin, an increase from $9.2 million and a 23.2% margin in the prior-year quarter [6] - Operating income was $5.5 million in Q3, compared to a loss of $3.8 million in the same quarter last year [6] Cost Management - Adjusted gross margin increased by 310 basis points year-over-year to 79.6% [5] - Research and development expenses grew 11.1% year-over-year to $10.3 million, representing 24.1% of total revenues [5] - Selling, general and administrative expenses decreased by 32.2% year-over-year to $13.8 million, accounting for 19% of total revenues [5] Cash Flow and Balance Sheet - As of September 30, 2024, cash and cash equivalents were $25.2 million, up from $23.6 million as of June 30, 2024 [7] - Operating cash flow was $3.4 million in the reported quarter, down from $6.7 million in the previous quarter [7] - Adjusted free cash flow declined to $1.8 million from $3.9 million in the prior quarter [7] Future Guidance - For 2024, Synchronoss expects revenues between $172 million and $175 million, indicating 6-8% year-over-year growth [8] - Recurring revenues are anticipated to be 90-92% of total revenues [8] - Adjusted gross margin is expected to be between 77-78%, an increase from the previously mentioned 73-77% [9] - Adjusted EBITDA is projected to be between $47 million and $48 million, up from the previously stated $43-$46 million [9]