Financial Data and Key Metrics Changes - Revenue for Q1 2025 was $42.4 million, reflecting a 3.3% subscriber growth across the global customer base [4] - Adjusted EBITDA increased 17% year over year to $12.7 million, representing an adjusted EBITDA margin of 30.2% [5] - Total revenue decreased slightly from $43 million in the prior year to $42.2 million due to the expiration of a customer contract [15] - Adjusted gross profit was $33.4 million, or 79% of total revenue, benefiting from cost efficiencies [16] - Net loss was $3.8 million, or a negative $0.37 per share, primarily due to non-cash foreign exchange losses [17] - Free cash flow was negative $3 million, with adjusted free cash flow at negative $3.3 million, consistent with historical expectations for Q1 [18] Business Line Data and Key Metrics Changes - Quarterly recurring revenue constituted 93.1% of total revenue, indicating a stable cloud business model [15] - Cloud subscriber growth was driven by demand for the personal cloud platform, achieving a 3.3% increase [15] Market Data and Key Metrics Changes - The company operates with over 90% of revenue classified as recurring, with significant contracts with Tier one carriers like AT&T, Verizon, and SoftBank [5] - Positive retail sales momentum for Anshin Data Box at SoftBank contributed to subscriber additions exceeding expectations [10] - Verizon's cloud offer transition to a premium My Plan PERC has led to continued growth in cloud PERC adoption [10] Company Strategy and Development Direction - The strategic transformation to a leading global cloud solutions provider has resulted in a more predictable and stable business model [4] - The company is focused on enhancing its personal cloud platform and pursuing growth opportunities, supported by a new $200 million term loan [6][7] - Cost control measures have led to an 11.5% reduction in overall operational expenses year over year [8] Management Comments on Operating Environment and Future Outlook - Management reiterated annual guidance metrics despite macroeconomic challenges, indicating confidence in subscriber growth and financial stability [5][19] - The company is optimistic about new customer prospects and is engaged in discussions with both new and existing carriers [12] - Management is closely monitoring industry headwinds, particularly tariffs affecting device costs, which could influence subscriber growth [13] Other Important Information - The company completed a refinancing of its debt, strengthening its capital structure and extending debt maturity to 2029 [7] - The anticipated IRS tax refund of $28 million will be used to prepay a portion of the term loan [19] Q&A Session Summary Question: What degree do you think you're now sort of getting that cost structure down where you want it to be? - Management believes the major reductions made position the company well, and the current cost structure is largely where it should be [23] Question: Are the new prospects international or expanding on existing customers? - Opportunities are global, with active conversations in the U.S., Asia Pacific, Europe, and Africa [25] Question: What kind of free cash flow can be expected this year? - Free cash flow is expected to be between $11 million and $16 million, with consistent performance anticipated [29] Question: Among AT&T and SoftBank, which one is growing faster? - Both AT&T and SoftBank are growing at a healthy rate and meeting expectations [31] Question: How should gross margins be modeled for the year? - Adjusted gross margins are expected to remain between 78% and 80% throughout the year [32]

Financial Data and Key Metrics Changes - Revenue for the quarter was $42,400,000, reflecting a subscriber growth of 3.3% across the global customer base [3] - Adjusted EBITDA increased 17% year over year to $12,700,000, representing an adjusted EBITDA margin of 30.2% [4] - Total revenue was $42,200,000, down slightly from $43,000,000 in the prior year period due to the expiration of a customer contract [13] - Adjusted gross profit was $33,400,000 or 79% of total revenue, benefiting from cost efficiencies [14] - Net loss was $3,800,000 or a negative $0.37 per share, primarily due to $5,600,000 in non-cash foreign exchange losses [15] - Cash and cash equivalents were $29,100,000 as of 03/31/2025, with free cash flow at negative $3,000,000 [16] Business Line Data and Key Metrics Changes - Quarterly recurring revenue was 93.1% of total revenue, indicating a stable cloud business model [13] - Cloud subscriber growth was 3.3%, driven by demand for the personal cloud platform [13] Market Data and Key Metrics Changes - The company is seeing accelerated adoption at AT&T through streamlined digital onboarding, increasing cloud awareness and elevating take rates [8] - Positive retail sales momentum for Anshin Data Box at SoftBank resulted in subscriber additions ahead of expectations [9] - Verizon's cloud offer transition to a premium My Plan PERC has led to continued growth in cloud PERC adoption [9] Company Strategy and Development Direction - The strategic transformation to a leading global cloud solutions provider has resulted in a more predictable and stable business model [3] - The company is focused on enhancing its personal cloud platform and pursuing growth opportunities, supported by a new $200,000,000 term loan [6] - The company is optimistic about new customer prospects and aims for double-digit revenue growth in the future [11] Management Comments on Operating Environment and Future Outlook - Management reiterated annual guidance metrics despite challenging macroeconomic conditions, including tariffs and global trade uncertainties [4] - The company is closely monitoring industry headwinds, particularly tariffs that could impact device costs and upgrade cycles [12] - Management expressed confidence in the sales pipeline, which is stronger than the previous quarter [11] Other Important Information - The company completed a refinancing of its debt, strengthening its capital structure and extending debt maturity to 2029 [6] - The company is committed to cost control, having cut overall operational expenses by 11.5% year over year [6] Q&A Session Summary Question: Cost structure and further reductions - Management believes the current cost structure is largely where it wants it to be, with major reductions made at the end of 2023 and 2024 [20] Question: New customer prospects - Opportunities for new customers are global, with active conversations in the U.S., Asia Pacific, Europe, and Africa [22] Question: Expected free cash flow - Free cash flow is expected to be between $11,000,000 and $16,000,000 for the year, with a consistent performance anticipated [26] Question: Growth comparison between AT&T and SoftBank - Both AT&T and SoftBank are growing at a healthy pace, contributing significantly to the first quarter's growth [27] Question: Modeling gross margins - Adjusted gross margins are expected to remain between 78% and 80% throughout the year [28]

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]