NASDAQ$SNCR

Synchronoss Technologies Inc · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Reported a net income of $5.3 million and a cloud subscriber growth of 18% driving cloud revenue increase of 12%.

Synchronoss Technologies reported a decrease in total revenue by 9% to $65.2 million, but net income improved to $5.3 million. Cloud revenue increased by 12% and adjusted EBITDA increased by 7% to $14.2 million.

  • Cloud subscriber growth increased by 18% year-over-year.
  • Cloud revenue increased by 12% year-over-year.
  • Net income improved to $5.3 million compared to a net loss of $23.9 million in the prior year period.
  • Adjusted EBITDA increased 7% to $14.2 million.

Headline financials

Total Revenue

$65.2M

Previous: $71.5M-8.8%
EPS (adj)

$0.90

Previous: -$2.43+137.0%
Recurring Revenue

86.6%

Previous: 87.0%-0.5%
Capital Expenditures

-$573K

Previous: -$1.25M+54.2%
Free Cash Flow

$6.16M

Previous: $6.92M-11.0%
Net Income

$7.92M

Previous: -$2.42M+427.3%
Operating Income

$4.89M

Previous: -$4.08M+220.0%
Gross Profit

$42.9M

Previous: $44.4M-3.3%
Cash & Equivalents

$25.5M

Previous: $32.6M-21.7%
Total Assets

$417M

Previous: $464M-10.1%
Stock-Based Comp

$964K

Previous: $2.35M-58.9%

Revenue & EPS history

Synchronoss · Revenue · Quarterly

$65.2M

Q2 2022-8.8%vs Q2 2021
Beat estimate in 9 of 16 quarters(56%)
ActualEstimate

Forward guidance

Management expects third quarter revenue and adjusted EBITDA to be down slightly. Company narrows the range of its full year 2022 adjusted EBITDA expectations to between $48.0 million and $55.0 million and GAAP revenue for the fiscal year ending December 31, 2022 to range between $260.0 million and $270.0 million.

Tailwinds

  • Sales pipeline remains healthy
  • Subscriber growth continues to be strong
  • Cloud subscriber growth to continue at a double-digit rate on a year-over-year basis in 2022
  • Company expects to be free cash flow positive, on an unadjusted basis, given the trajectory of its Cloud business
  • Company expects to be free cash flow positive in 2023

Headwinds

  • Third quarter revenue and adjusted EBITDA to be down slightly
  • Approximately $2 million impact from the sale of the DXP and Activation assets in the second quarter
  • Approximately $4 million in deferred, non-cash revenue from the Cloud business, which benefited the second quarter and will not repeat in the third quarter
  • Third and fourth quarter cash flow results to decline moderately compared to the second quarter due to the non-recurring tax refund
  • Third and fourth quarter cash flow results to decline moderately compared to the second quarter due to timing of cash receipts and expenses

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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