NASDAQ$SNCR

Synchronoss Technologies Inc · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

Reported a 1% increase in total revenue, driven by cloud subscriber growth, the Brightspeed license, and the RCS platform launch, and a 109% increase in adjusted EBITDA.

Synchronoss Technologies reported a 1% increase in total revenue to $65.9 million and a 109% increase in adjusted EBITDA to $11.6 million, driven by strong cloud subscriber growth. The company is increasing its EBITDA expectations for the year to $45 to $55 million.

  • Announced 18% year-over-year Cloud subscriber growth.
  • Launched Synchronoss Cloud with Kitamura, marking the first implementation of Synchronoss Cloud in Japan.
  • Introduced Synchronoss Cloud for Home, enhancing the Company’s overall cloud offering.
  • Launched RCS-based Business Messaging Service with a major Tier One operator in the United States.

Headline financials

Total Revenue

$65.9M

Previous: $65.5M+0.6%
EPS (adj)

$0.18

Previous: -$2.97+106.1%
Recurring Revenue

84.9%

No prior period
Capital Expenditures

-$154K

Previous: -$721K+78.6%
Free Cash Flow

-$2.85M

Previous: $1.54M-284.9%
Net Income

-$3.04M

Previous: -$12.4M+75.4%
Operating Income

-$1.38M

Previous: -$9.04M+84.7%
Gross Profit

$41M

Previous: $36.9M+11.3%
Cash & Equivalents

$21.7M

Previous: $29.8M-27.1%
Total Assets

$439M

Previous: $465M-5.6%
Stock-Based Comp

$1.93M

Previous: $2.72M-29.2%

Revenue & EPS history

Synchronoss · Revenue · Quarterly

$65.9M

Q1 2022+0.6%vs Q1 2021
Beat estimate in 9 of 16 quarters(56%)
ActualEstimate

Forward guidance

Management expects second quarter revenue to be up slightly and adjusted EBITDA to be in-line with the first quarter. The Company is maintaining its expectation for GAAP revenue to range between $260.0 million and $275.0 million and is increasing its expectations for adjusted EBITDA performance in 2022 and now expects to achieve between $45.0 million and $55.0 million.

Tailwinds

  • Second quarter revenue expected to be up slightly.
  • Adjusted EBITDA expected to be in-line with the first quarter.
  • Will be free cash flow positive, on an adjusted basis, in the second quarter.
  • Reconfirming that it will be adjusted free cash flow positive for the full year 2022.
  • Cloud subscriber growth to continue at a double-digit rate on a year-over-year basis in 2022.

Headwinds

  • Digital revenue is expected to decline on a full-year basis due to the pending asset sale.
  • Messaging revenue will also decline as this business is operated for improved profitability rather than revenue growth.
  • Net contribution to GAAP revenue from non-cash deferred revenue is expected to be approximately $10 million less in 2022 than it was in 2021.
  • Cash flow during the first quarter was impacted by large, primarily vendor-related, annual payments.
  • Pending sale of the DXP and Activation assets in the second quarter will have an impact.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 1 quarterly earnings reports

Historical avg

+1.4%

Avg return

Earnings day

+8.0%

Avg return

5 days after

-6.1%

Avg return

30 days after

48%

29 / 61 earnings

Positive

+40.0%

Q4 2024

Best reaction

-25.4%

Q4 2015

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2024+40.0%
Q3 2025
Q2 2025
Q1 2025
Q3 2024-15.6%
Q2 2024-4.2%
Q1 2024+32.4%
Q4 2023-17.4%
Q3 2023-19.3%
Q2 2023+5.2%
Q1 2023-4.2%
Q4 2022-20.2%
Q3 2022-4.7%
Q2 2022-5.4%
Q1 2022+4.2%
Q4 2021-9.2%
Q3 2021+9.3%
Q2 2021-7.8%
Q1 2021-1.9%+0.0%-2.0%
Q4 2020-0.3%+15.9%-10.2%
Q3 2020+9.1%
Q2 2020+17.0%
Q1 2020-16.0%
Q4 2019-7.7%
Q3 2019-20.4%
Q2 2019-3.5%
Q1 2019+12.0%
Q4 2018-17.6%
Q3 2018+2.3%
Q2 2018+23.6%
Q1 2018+7.6%
Q4 2017+10.9%
Q2 2017+10.9%
Q3 2017+10.9%
Q1 2017-4.5%
Q4 2016-11.9%
Q3 2016+19.6%
Q2 2016+9.6%
Q1 2016+15.6%
Q4 2015-25.4%
Q3 2015-2.3%
Q2 2015+6.9%
Q1 2015-6.6%
Q4 2014-6.8%
Q3 2014+9.2%
Q2 2014+17.4%
Q1 2014+7.4%
Q4 2013+20.8%
Q3 2013+3.4%
Q2 2013+14.6%
Q1 2013+6.6%
Q4 2012+19.1%
Q3 2012-6.0%
Q2 2012+15.3%
Q1 2011+2.0%
Q1 2012-6.1%
Q4 2009-0.9%
Q4 2011-0.9%
Q3 2011-2.9%
Q3 2010-2.9%
Q2 2011-10.4%
Q4 2010-10.4%
Q2 2010-10.4%
Q1 2010+8.0%

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