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Mar 31, 2024
Synchronoss Q1 2024 Earnings Report
Reported first quarter results with revenue growth and improved profitability.
Key Takeaways
Synchronoss Technologies reported a strong first quarter in 2024, marked by revenue growth to $43.0 million and enhanced profitability. The company's strategic focus on high-margin Personal Cloud services and operational streamlining led to a net income of $2.3 million, a significant improvement from the previous year. Adjusted EBITDA increased by 78% to $10.9 million, reflecting the success of post-divestiture cost restructuring and the company reaffirmed its 2024 guidance.
Recurring revenue surpassed 91%, driven by a 7% year-over-year growth in Personal Cloud subscribers.
Adjusted EBITDA margins reached 25.4% due to enhanced profitability through post-divestiture cost restructuring.
SoftBank's Anshin Data Box saw strong early subscriber adoption, indicating growth in the Japanese market.
Net income improved by $15.7 million year-over-year, with EPS rising to $0.23 from $(1.39) in Q1 2023.
Forward Guidance
Synchronoss anticipates continued positive trends with its customers and expects net cash flow to be at least $10 million for 2024. The company maintains its expectation for GAAP revenue to range between $170.0 million and $175.0 million, and adjusted EBITDA to range between $42.0 million and $45.0 million in 2024.
Positive Outlook
- Continuation of positive trends experienced with customers.
- Addition of SoftBank as a customer.
- Expiry of certain payment obligations.
- Removal of other general costs.
- Superior revenue to cash conversion capabilities of Cloud as a standalone business.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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