Synchronoss Q2 2022 Earnings Report
Key Takeaways
Synchronoss Technologies reported a decrease in total revenue by 9% to $65.2 million, but net income improved to $5.3 million. Cloud revenue increased by 12% and adjusted EBITDA increased by 7% to $14.2 million.
Cloud subscriber growth increased by 18% year-over-year.
Cloud revenue increased by 12% year-over-year.
Net income improved to $5.3 million compared to a net loss of $23.9 million in the prior year period.
Adjusted EBITDA increased 7% to $14.2 million.
Synchronoss
Synchronoss
Synchronoss Revenue by Segment
Forward Guidance
Management expects third quarter revenue and adjusted EBITDA to be down slightly. Company narrows the range of its full year 2022 adjusted EBITDA expectations to between $48.0 million and $55.0 million and GAAP revenue for the fiscal year ending December 31, 2022 to range between $260.0 million and $270.0 million.
Positive Outlook
- Sales pipeline remains healthy
- Subscriber growth continues to be strong
- Cloud subscriber growth to continue at a double-digit rate on a year-over-year basis in 2022
- Company expects to be free cash flow positive, on an unadjusted basis, given the trajectory of its Cloud business
- Company expects to be free cash flow positive in 2023
Challenges Ahead
- Third quarter revenue and adjusted EBITDA to be down slightly
- Approximately $2 million impact from the sale of the DXP and Activation assets in the second quarter
- Approximately $4 million in deferred, non-cash revenue from the Cloud business, which benefited the second quarter and will not repeat in the third quarter
- Third and fourth quarter cash flow results to decline moderately compared to the second quarter due to the non-recurring tax refund
- Third and fourth quarter cash flow results to decline moderately compared to the second quarter due to timing of cash receipts and expenses