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]

Core Viewpoint - Synchronoss Technologies Inc. will hold a conference call to discuss its financial results for Q1 2025 on May 6, 2025, at 4:30 p.m. Eastern time [1][2] Group 1: Conference Call Details - The conference call will include a presentation by Synchronoss management followed by a Q&A session [2] - Dial-in numbers for the conference call are 877-451-6152 for domestic calls and 201-389-0879 for international calls [2] - The conference call will be broadcast live on the company's website [2] Group 2: Company Overview - Synchronoss Technologies is a global leader in personal Cloud solutions, enabling service providers to create secure connections with subscribers [3] - The company's SaaS Cloud platform enhances onboarding processes and subscriber engagement, leading to increased revenue, reduced costs, and quicker time-to-market [3] - Millions of subscribers rely on Synchronoss to protect their digital content and memories [3]

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]

Analyst's Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or ...

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]