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Dec 31, 2024
Synchronoss Q4 2024 Earnings Report
Synchronoss reported revenue growth and strong profitability in Q4 2024, with improved margins and free cash flow.
Key Takeaways
Synchronoss delivered a strong Q4 2024, with revenue increasing 6.8% year-over-year to $44.2 million. The company reported net income of $7.9 million and adjusted EBITDA of $13.9 million, reflecting a 38.9% increase from the prior year. Gross profit improved to $30.6 million, with gross margin expanding to 69.1%. Free cash flow for the quarter was $9.1 million, reflecting the company's strong operational execution and profitability improvements.
Q4 2024 revenue increased 6.8% year-over-year to $44.2 million.
Net income rose to $7.9 million, reversing a prior-year loss.
Adjusted EBITDA grew 38.9% to $13.9 million, with a 31.4% margin.
Free cash flow reached $9.1 million, reflecting improved financial health.
Forward Guidance
Synchronoss projects 2025 revenue between $170 million and $180 million, with at least 90% recurring revenue and an adjusted EBITDA margin of 30% or more.
Positive Outlook
- 2025 revenue guidance set between $170 million and $180 million.
- Recurring revenue expected to remain above 90%.
- Adjusted EBITDA projected to be between $52 million and $56 million.
- Company expects to receive a $28 million federal tax refund in 2025.
- Continued expansion of cloud services with new product launches and contracts.
Challenges Ahead
- Higher interest expenses may impact net profitability.
- Ongoing restructuring costs may continue in early 2025.
- Potential delays in the expected $28 million tax refund.
- Competition in the cloud services space remains intense.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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