NASDAQ$SNCR

Synchronoss Technologies Inc · Q1 2024 earnings

Q1 2024 earnings · · Investor relations

Briefing

Reported first quarter results with revenue growth and improved profitability.

Synchronoss Technologies reported a strong first quarter in 2024, marked by revenue growth to $43.0 million and enhanced profitability. The company's strategic focus on high-margin Personal Cloud services and operational streamlining led to a net income of $2.3 million, a significant improvement from the previous year. Adjusted EBITDA increased by 78% to $10.9 million, reflecting the success of post-divestiture cost restructuring and the company reaffirmed its 2024 guidance.

  • Recurring revenue surpassed 91%, driven by a 7% year-over-year growth in Personal Cloud subscribers.
  • Adjusted EBITDA margins reached 25.4% due to enhanced profitability through post-divestiture cost restructuring.
  • SoftBank's Anshin Data Box saw strong early subscriber adoption, indicating growth in the Japanese market.
  • Net income improved by $15.7 million year-over-year, with EPS rising to $0.23 from $(1.39) in Q1 2023.

Headline financials

Total Revenue

$43M

Previous: $57.7M-25.5%
EPS

$0.23

Previous: -$0.72+131.9%
Recurring Revenue

91.1%

Previous: 86.6%+5.2%
Adjusted EBITDA

$10.9M

No prior period
Adjusted Gross Profit

$32.8M

No prior period
Adjusted Gross Margin

76.3%

No prior period
Adjusted Free Cash Flow

$622K

No prior period
Capital Expenditures

-$517K

Previous: -$876K+41.0%
Free Cash Flow

$10K

Previous: $419K-97.6%
Net Income

$4.48M

Previous: -$10.9M+140.9%
Operating Income

$4.58M

Previous: -$3.58M+227.7%
Gross Profit

$32.7M

Previous: $37.3M-12.3%
Cash & Equivalents

$19.1M

Previous: $15.6M+22.8%
Total Assets

$299M

Previous: $391M-23.7%
R&D Expense

$10.3M

No prior period
Stock-Based Comp

$1.11M

Previous: $1.74M-36.2%

Revenue & EPS history

Synchronoss · Revenue · Quarterly

$43M

Q1 2024-25.5%vs Q1 2023
Beat estimate in 9 of 16 quarters(56%)
ActualEstimate

Forward guidance

Synchronoss anticipates continued positive trends with its customers and expects net cash flow to be at least $10 million for 2024. The company maintains its expectation for GAAP revenue to range between $170.0 million and $175.0 million, and adjusted EBITDA to range between $42.0 million and $45.0 million in 2024.

Tailwinds

  • Continuation of positive trends experienced with customers.
  • Addition of SoftBank as a customer.
  • Expiry of certain payment obligations.
  • Removal of other general costs.
  • Superior revenue to cash conversion capabilities of Cloud as a standalone business.

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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