Jun 30, 2023

Synchronoss Q2 2023 Earnings Report

Reported financial results for the second quarter ended June 30, 2023.

Key Takeaways

Synchronoss Technologies reported a decrease in total revenue by 8.5% to $59.7 million, while invoiced cloud revenue increased by 24.0% to $46.4 million. The company experienced a net loss of $(11.0) million, or $(0.13) per share, compared to a net income of $5.3 million, or $0.06 per share, in the prior year period.

Secured a contract extension with Verizon to provide Synchronoss Cloud through 2030.

Achieved 11% year-over-year Cloud subscriber growth for the second quarter of 2023.

Invoiced Cloud revenue increased 24.0% year over year to $46.4 million in the second quarter.

Company reaffirms 2023 Guidance, Expects Return to GAAP Revenue Growth in Second Half of the Year and Positive Free Cash Flow in 2023

Total Revenue
$59.7M
Previous year: $65.2M
-8.5%
EPS
-$0.27
Previous year: $0.9
-130.0%
Gross Profit
$31.4M
Previous year: $42.9M
-26.8%
Cash and Equivalents
$19.3M
Previous year: $25.5M
-24.2%
Free Cash Flow
$6.4M
Previous year: $3.6M
+77.8%
Total Assets
$384M
Previous year: $417M
-7.9%

Synchronoss

Synchronoss

Synchronoss Revenue by Segment

Forward Guidance

Management expects third quarter revenue and adjusted EBITDA to moderately improve compared to the second quarter of 2023. The company is reiterating its expectation to be cash flow positive for 2023 and expects GAAP revenue to range between $242.0 million and $255.0 million.

Positive Outlook

  • Expects third quarter revenue and adjusted EBITDA to moderately improve.
  • Reiterating expectation to be cash flow positive for 2023.
  • Expects GAAP revenue to range between $242.0 million and $255.0 million.
  • Expects cash flow generation to significantly improve in 2024.
  • Expects Cloud subscriber growth to continue at a double-digit rate on a year-over-year basis in 2023.