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Dec 31, 2021
Synchronoss Q4 2021 Earnings Report
Synchronoss reported strong Q4 2021 earnings, marked by revenue growth and multi-year highs in gross profit and operating income.
Key Takeaways
Synchronoss Technologies reported a strong finish to 2021, with Q4 revenue growth and multi-year highs in gross profit, operating income, and adjusted EBITDA. The company's long-term, profitable growth plan is supported by a 15% increase in Q4 Cloud revenue and optimized cost structures in Digital and Messaging.
Entered into a definitive agreement for the sale of the Company’s Digital Experience Platform (“DXP”) and Activation Solutions (“Activation”) to iQmetrix.
Announced 18% year-over-year Cloud subscriber growth.
Awarded contract by Telkomsel, Indonesia’s largest mobile operator, to provide Synchronoss’ Personal Cloud solution.
Signed multiple Japanese operators to additional Advanced Messaging licenses.
Synchronoss
Synchronoss
Forward Guidance
Synchronoss expects to be cash flow positive in 2022. Cloud subscriber growth is projected to continue at a double-digit rate, while Messaging and Digital revenues are expected to decline.
Positive Outlook
- Cloud subscriber growth to continue at a double-digit rate in 2022
- Cloud revenue also growing over the next year
- Company expects GAAP revenue to range between $260.0 million and $275.0 million.
- Revenue in the first quarter is expected to be at a similar level to 2021 performance.
- The Company expects adjusted EBITDA to range between $40.0 million and $50.0 million.
Challenges Ahead
- Adjusted cash flow will remain negative in the first quarter and improve throughout the year.
- Management plans for Messaging and Digital revenues to decline.
- The comparable 2021 revenue is $264.0 million after adjusting for the sale of the Company’s DXP and Activation assets over the last nine months of 2021.
- The net contribution to GAAP revenue from non-cash deferred revenue is expected to be approximately $10 million less in 2022 than it was in 2021.
- Due to several, large and primarily vendor-related annual payments, adjusted cash flow will remain negative in the first quarter and improve throughout the year.