Sep 30, 2024

Synchronoss Q3 2024 Earnings Report

Synchronoss reported an 8% increase in third quarter revenue, driven by subscriber growth and recurring revenue.

Key Takeaways

Synchronoss Technologies reported strong third quarter 2024 results, with revenue increasing by 8% year-over-year to $43.0 million, driven by subscriber growth and a high percentage of recurring revenue. The company also improved its profitability and signed a three-year extension with SFR.

Total revenue increased to $43.0 million, primarily driven by 5.1% subscriber growth year-over-year.

Recurring revenue accounted for 92.2% of total revenue.

Gross profit increased 14.3% to $29.9 million, with a gross margin of 69.6%.

Adjusted EBITDA increased 36.8% to $12.7 million.

Total Revenue
$43M
Previous year: $55.6M
-22.8%
EPS
-$0.26
Previous year: $0.45
-157.8%
Gross Profit
$29.9M
Previous year: $30.7M
-2.6%
Cash and Equivalents
$25.2M
Previous year: $17.6M
+43.4%
Free Cash Flow
-$27K
Previous year: $1.14M
-102.4%
Total Assets
$300M
Previous year: $361M
-17.0%

Synchronoss

Synchronoss

Forward Guidance

Synchronoss is revising its 2024 outlook items upwards to more accurately reflect current expectations.

Positive Outlook

  • Revenue range of between $172 and $175 million, which equals a range of 6%-8% growth year-over-year.
  • Adjusted Gross Margin of between 77%-78%.
  • Adjusted EBITDA of between $47 million and $48 million, which equals at least 27% adjusted EBITDA margin.
  • Recurring revenue of between 90%-92% of total revenue.
  • Net cash flow outlook to be approximately $5 million this year.