Sep 30, 2020

Synchronoss Q3 2020 Earnings Report

Synchronoss reported a revenue increase of 31.5% and a net loss decrease of 77.9% compared to the prior year's third quarter.

Key Takeaways

Synchronoss Technologies Inc. announced financial results for its third quarter ended September 30, 2020. The company reported a 40% increase in adjusted EBITDA year over year and raised its adjusted EBITDA guidance for the full year 2020. They also renewed their largest cloud customer, Verizon, to a five-year contract extension during the third quarter.

GAAP revenue was $68.6 million, compared to GAAP revenue of $52.2 million in the prior year’s third quarter.

Recurring revenue represented 80% of total GAAP revenue, up from 69% in the year ago quarter.

GAAP net loss for the quarter was $15.4 million, or $0.36 cents per share, compared to a GAAP net loss of $69.4 million, or $1.70 per share, in the prior year’s third quarter.

Adjusted EBITDA increased 40% year over year to $8.1 million, compared to $5.8 million in the third quarter of 2019.

Total Revenue
$68.6M
Previous year: $78.2M
-12.2%
EPS
$0.36
Previous year: -$5.58
-106.5%
Adjusted EBITDA
$8.13M
Previous year: $5.8M
+40.2%
Gross Profit
$40.2M
Previous year: $16.6M
+142.0%
Cash and Equivalents
$46.4M
Previous year: $19.2M
+141.5%
Free Cash Flow
$6.91M
Previous year: -$8.86M
-177.9%
Total Assets
$499M
Previous year: $516M
-3.4%

Synchronoss

Synchronoss

Forward Guidance

The company is raising its adjusted EBITDA guidance range for the full year to $23-$26 million, up from $20-$25 million.