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Jun 30, 2022
Synchronoss Q2 2022 Earnings Report
Reported a net income of $5.3 million and a cloud subscriber growth of 18% driving cloud revenue increase of 12%.
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
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