Synchronoss Technologies(SNCR) - 2024 Q4 - Annual Results

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]