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Dec 31, 2023
Synchronoss Q4 2023 Earnings Report
Reported fourth quarter and full year 2023 results, completing strategic transformation into a pure-play cloud company and launching SoftBank Personal Cloud in Q4.
Key Takeaways
Synchronoss Technologies reported Q4 2023 results, highlighting a strategic transformation into a pure-play cloud company, with revenue of $41.4 million exceeding expectations due to year-over-year cloud growth. The company reaffirms its 2024 guidance, demonstrating a streamlined financial profile and more profitable operations.
Exceeded the upper end of previously provided guidance ranges for 2023 revenue and adjusted EBITDA, delivering $164.2 million and $31.4 million, respectively, and achieved positive net cash flow in 2023.
Launched Synchronoss Personal Cloud as Anshin Data Box with SoftBank, expanding the company’s global footprint in the Japanese market.
Successfully executed on the strategic divestiture of the non-core Messaging and NetworkX businesses, focusing exclusively on providing its industry-leading, high-margin personal Cloud solution.
Removed $15 million in annualized FY 2024 costs from the go-forward Cloud business, enhancing operational efficiency and recalibrating the financial framework for improved profitability.
Forward Guidance
Synchronoss anticipates positive trends with customers and the addition of SoftBank, expecting net cash flow to be at least $10 million for 2024. Cloud subscriber growth is projected to be in the high-single-digit to low-double-digit range. For fiscal year 2024, GAAP revenue is expected to range between $170.0 million and $175.0 million, with adjusted EBITDA between $42.0 million and $45.0 million.
Positive Outlook
- Continuation of positive trends with customers throughout 2023.
- Recent addition of SoftBank as a customer.
- Expiry of certain payment obligations and removal of other general costs in Q1.
- Superior revenue to cash conversion capabilities of Cloud as a standalone business.
- Expectation of net cash flow to be at least $10 million for 2024.
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