NASDAQ$SNCR

Synchronoss Technologies Inc · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Synchronoss's financial performance improved with revenue growth and increased profitability.

Synchronoss Technologies reported a strong second quarter in 2024, marked by a 6% year-over-year increase in revenue to $43.5 million. The company saw a significant improvement in net income, which increased by $11.1 million, and a notable rise in adjusted EBITDA, which improved by 115% to $13.0 million. Additionally, Synchronoss strategically retired its preferred stock, reducing total net debt and cost of capital.

  • Total revenue increased to $43.5 million, driven by 6.1% subscriber growth year-over-year.
  • Net income was $78 thousand, or $0.01 per share, compared to a loss of $(11.0) million, or $(1.13) per share, in the prior year period.
  • Adjusted EBITDA increased 115% to $13.0 million (29.9% of total revenue) from $6.1 million (14.4% of total revenue) in the prior year period.
  • The company repurchased all of its outstanding Preferred Stock and a portion of its Senior Notes, using a new financing arrangement that lowers total debt and cost of capital.

Headline financials

Total Revenue

$43.5M

Previous: $59.7M-27.2%
EPS

$0.01

Previous: -$0.27+103.7%
Recurring Revenue

90.5%

Previous: 83.8%+8.0%
Adjusted EBITDA

$13M

No prior period
Adjusted Gross Profit

$33.7M

No prior period
Adjusted Gross Margin

77.5%

No prior period
Adjusted Free Cash Flow

$8.93M

No prior period
Capital Expenditures

-$896K

Previous: -$994K+9.9%
Free Cash Flow

$10.9M

Previous: $11.6M-5.3%
Net Income

-$494K

Previous: -$8.52M+94.2%
Operating Income

$4.3M

Previous: -$3.95M+208.9%
Gross Profit

$33.1M

Previous: $37.9M-12.8%
Cash & Equivalents

$23.6M

Previous: $19.3M+22.3%
Total Assets

$296M

Previous: $384M-23.0%
R&D Expense

$11.9M

No prior period

Revenue & EPS history

Synchronoss · Revenue · Quarterly

$43.5M

Q2 2024-27.2%vs Q2 2023
Beat estimate in 9 of 16 quarters(56%)
ActualEstimate

Forward guidance

The company is revising upwards its outlook for adjusted Gross Margin and adjusted EBITDA for 2024, while reiterating its revenue, recurring revenue, and net cash flow outlook.

Tailwinds

  • Adjusted Gross Margin is now expected to be between 73% and 77% (previously 70%-75%).
  • Adjusted EBITDA is now expected to be between $43 million and $46 million (previously $42 million to $45 million), which equals at least 25% adjusted EBITDA margin.
  • Revenue range of between $170 and $175 million, which equals a range of 5-8% growth year-over-year is reiterated.
  • Recurring revenue of between 85-90% of total revenue is reiterated.
  • Net cash flow of at least $10 million (including debt amortization) is reiterated.

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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