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Dec 31, 2022
Synchronoss Q4 2022 Earnings Report
Reported fourth quarter and full year 2022 results, showing improvements to profitability and cash flow.
Key Takeaways
Synchronoss Technologies reported a decrease in total revenue for Q4 2022, but highlighted growth in its core Cloud business with subscriber growth of 14% and invoiced Cloud revenue growth of 9.5%. The company finalized a major agreement with a Tier One global operator expected to deliver over $50 million over the term of the relationship. Management reiterated its expectation to be cash flow positive for 2023.
Cloud subscribers grew 14% year-over-year in Q4 2022.
Invoiced Cloud revenue increased 9.5% year-over-year to $41.4 million in Q4 2022.
Signed a multi-year agreement with one of the largest global operators to deploy the Synchronoss Personal Cloud.
Reached milestone of more than 30 million RCS-based Messaging subscribers in Japan, a 62% increase since November 2020.
Forward Guidance
Synchronoss is reiterating its expectation to be cash flow positive for 2023 and expects Cloud subscriber growth to continue at a double-digit rate. For the fiscal year ending December 31, 2023, the Company expects GAAP revenue to range between $242.0 million and $255.0 million and adjusted EBITDA to range between $44.0 million and $55.0 million.
Positive Outlook
- Continued strong performance within the Company’s core Cloud business
- Improvements in operational expense management
- Expectation to be cash flow positive, on an unadjusted basis, for 2023
- Expectation to generate cash flow in the single-digit millions for the full year
- Cash flow generation to significantly improve in 2024
Challenges Ahead
- Revenue in the first and second quarters of 2023 is expected to decline moderately year-over-year on a GAAP basis.
- Net contribution to GAAP revenue from non-cash deferred revenue is expected to be $7.4 million less in 2023 than it was in 2022, most of which is related to the first half of the year.
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