NASDAQ$SNCR

Synchronoss Technologies Inc · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Reported financial results with positive income from operations and adjusted free cash flow.

Synchronoss Technologies reported Q3 2022 results with a focus on profitability and cash flow generation. The company saw improvements in operating income and adjusted free cash flow year-over-year, driven by double-digit cloud subscriber growth and invoiced cloud revenue growth. They extended their cloud agreement with AT&T and signed a Letter of Intent with a tier one global operator.

  • Operating income was $1.3 million, compared to a loss of $10.5 million in the prior year period.
  • Adjusted free cash flow was $2.8 million, a $6.6 million improvement from Q3 2021.
  • Cloud subscriber growth increased by 15% year-over-year.
  • Invoiced Cloud revenue increased 6.8% year-over-year.

Headline financials

Total Revenue

$59.9M

Previous: $69.8M-14.1%
EPS (adj)

$0.36

Previous: $0.81-55.6%
Capital Expenditures

-$1.02M

Previous: -$1.39M+26.3%
Free Cash Flow

$10.1M

Previous: $4.17M+141.5%
Net Income

$1.09M

Previous: -$8.11M+113.4%
Operating Income

$1.28M

Previous: -$10.5M+112.2%
Gross Profit

$37.5M

Previous: $42.5M-11.9%
Cash & Equivalents

$22.6M

Previous: $24.1M-6.4%
Total Assets

$399M

Previous: $448M-11.0%
Stock-Based Comp

$1.8M

Previous: $2.16M-16.8%

Revenue & EPS history

Synchronoss · Revenue · Quarterly

$59.9M

Q3 2022-14.1%vs Q3 2021
Beat estimate in 9 of 16 quarters(56%)
ActualEstimate

Forward guidance

Management expects fourth quarter revenue and adjusted EBITDA to increase. The Company still expects to be free cash flow positive, on an adjusted basis, for the year, and looking to 2023, the Company reiterated that it expects to be free cash flow positive, on an unadjusted basis.

Tailwinds

  • Growth in the fourth quarter is expected to come from continued strength in the Company’s Cloud and Messaging businesses
  • Growth in the fourth quarter is expected to layer growth from existing customers
  • Growth in the fourth quarter is expected to come from expected new customer agreements in the quarter.

Headwinds

  • Company now expects GAAP revenue for the fiscal year ending December 31, 2022, to be between $253.0 million and $260.0 million from a previous range of $260.0 million to $270.0 million.
  • Revision was primarily the result of the $5.5 million annualized negative impact in FX
  • Revision was primarily the result of the delay in some decision making due to the macroeconomic environment.

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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