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Jun 30, 2024
Synchronoss Q2 2024 Earnings Report
Synchronoss's financial performance improved with revenue growth and increased profitability.
Key Takeaways
Synchronoss Technologies reported a strong second quarter in 2024, marked by a 6% year-over-year increase in revenue to $43.5 million. The company saw a significant improvement in net income, which increased by $11.1 million, and a notable rise in adjusted EBITDA, which improved by 115% to $13.0 million. Additionally, Synchronoss strategically retired its preferred stock, reducing total net debt and cost of capital.
Total revenue increased to $43.5 million, driven by 6.1% subscriber growth year-over-year.
Net income was $78 thousand, or $0.01 per share, compared to a loss of $(11.0) million, or $(1.13) per share, in the prior year period.
Adjusted EBITDA increased 115% to $13.0 million (29.9% of total revenue) from $6.1 million (14.4% of total revenue) in the prior year period.
The company repurchased all of its outstanding Preferred Stock and a portion of its Senior Notes, using a new financing arrangement that lowers total debt and cost of capital.
Forward Guidance
The company is revising upwards its outlook for adjusted Gross Margin and adjusted EBITDA for 2024, while reiterating its revenue, recurring revenue, and net cash flow outlook.
Positive Outlook
- Adjusted Gross Margin is now expected to be between 73% and 77% (previously 70%-75%).
- Adjusted EBITDA is now expected to be between $43 million and $46 million (previously $42 million to $45 million), which equals at least 25% adjusted EBITDA margin.
- Revenue range of between $170 and $175 million, which equals a range of 5-8% growth year-over-year is reiterated.
- Recurring revenue of between 85-90% of total revenue is reiterated.
- Net cash flow of at least $10 million (including debt amortization) is reiterated.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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