In This Article:
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Total Revenue: Increased to $43 million in Q1 2024 from $42 million in the prior year.
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Net Income: Improved to $2.3 million in Q1 2024, a significant rise from a loss of $13.4 million in Q1 2023.
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Earnings Per Share (EPS): Rose to $0.23 in Q1 2024 from a loss of $1.39 per share in Q1 2023.
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Adjusted EBITDA: Grew 78% to $10.9 million in Q1 2024, representing 25.4% of total revenue.
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Gross Margin: Increased to 66.9% in Q1 2024 from 65% in the prior year period.
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Free Cash Flow: Improved to negative $3.3 million in Q1 2024 from negative $4.2 million in Q1 2023.
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Recurring Revenue: Accounted for 91.1% of total revenue in Q1 2024, up from 87.9% in Q1 2023.
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Cloud Subscriber Growth: Approximately 7% year-over-year increase in Q1 2024.
Release Date: May 07, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Synchronoss Technologies Inc (NASDAQ:SNCR) reported a significant improvement in net income to $2.3 million and earnings per share of $0.23 for Q1 2024, marking a substantial year-over-year improvement.
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The company achieved a 78% year-over-year growth in adjusted EBITDA, reaching $10.9 million in Q1 2024.
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Recurring revenue constituted 91% of total revenue, indicating a stable and predictable revenue stream.
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Synchronoss Technologies Inc (NASDAQ:SNCR) has secured long-term contracts, such as the one with Verizon extending through 2030, ensuring revenue stability.
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The company successfully launched the Anshin Data Box with SoftBank, expanding its global footprint and subscriber base.
Negative Points
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Despite improvements, the company reported a negative free cash flow of $3.3 million in Q1 2024, although it was an improvement from the previous year.
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The company's total revenue saw a modest year-over-year increase to $43 million from $42 million, indicating slow revenue growth.
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Synchronoss Technologies Inc (NASDAQ:SNCR) still faces significant outstanding debt, with a remaining balance due of approximately $28 million.
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Legal expenses and SEC penalty payments continue to impact financial flexibility, although they are expected to decrease in 2025.
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The company's cash and cash equivalents decreased to $19.1 million at the end of March 2024, from $24.6 million at the end of December 2023.
Q & A Highlights
Q: Could you give some color on what kind of gross margin number could we expect for the year? A: Jeff Miller, President & CEO of Synchronoss Technologies, indicated that the company expects gross margins to be in the 75%-plus range for 2024, based on Q1 performance and ongoing execution. CFO Lou Ferraro clarified that this refers to adjusted gross margins, not GAAP gross margins, which were reported at 67% for the quarter.