NASDAQ$SNCR

Synchronoss Technologies Inc · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Reported fourth quarter and full year 2023 results, completing strategic transformation into a pure-play cloud company and launching SoftBank Personal Cloud in Q4.

Synchronoss Technologies reported Q4 2023 results, highlighting a strategic transformation into a pure-play cloud company, with revenue of $41.4 million exceeding expectations due to year-over-year cloud growth. The company reaffirms its 2024 guidance, demonstrating a streamlined financial profile and more profitable operations.

  • Exceeded the upper end of previously provided guidance ranges for 2023 revenue and adjusted EBITDA, delivering $164.2 million and $31.4 million, respectively, and achieved positive net cash flow in 2023.
  • Launched Synchronoss Personal Cloud as Anshin Data Box with SoftBank, expanding the company’s global footprint in the Japanese market.
  • Successfully executed on the strategic divestiture of the non-core Messaging and NetworkX businesses, focusing exclusively on providing its industry-leading, high-margin personal Cloud solution.
  • Removed $15 million in annualized FY 2024 costs from the go-forward Cloud business, enhancing operational efficiency and recalibrating the financial framework for improved profitability.

Headline financials

Total Revenue

$41.4M

Previous: $61.6M-32.8%
EPS (adj)

-$0.85

Previous: -$0.72-18.1%
Adjusted EBITDA

$9.98M

No prior period
Capital Expenditures

-$3.99M

Previous: $387K-1129.7%
Net Income

-$35M

Previous: -$15.9M-119.8%
Operating Income

$184K

Previous: -$3.47M+105.3%
Gross Profit

$26.5M

Previous: $32.2M-17.9%
R&D Expense

$11.2M

No prior period
Stock-Based Comp

$548K

Previous: $769K-28.7%

Revenue & EPS history

Synchronoss · Revenue · Quarterly

$41.4M

Q4 2023-32.8%vs Q4 2022
Beat estimate in 9 of 16 quarters(56%)
ActualEstimate

Forward guidance

Synchronoss anticipates positive trends with customers and the addition of SoftBank, expecting net cash flow to be at least $10 million for 2024. Cloud subscriber growth is projected to be in the high-single-digit to low-double-digit range. For fiscal year 2024, GAAP revenue is expected to range between $170.0 million and $175.0 million, with adjusted EBITDA between $42.0 million and $45.0 million.

Tailwinds

  • Continuation of positive trends with customers throughout 2023.
  • Recent addition of SoftBank as a customer.
  • Expiry of certain payment obligations and removal of other general costs in Q1.
  • Superior revenue to cash conversion capabilities of Cloud as a standalone business.
  • Expectation of net cash flow to be at least $10 million for 2024.

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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