Synchronoss Technologies SNCR shares have surged 58.6% over the trailing 12-month period compared with the Zacks Internet - Software industry’s return of 32.1% and the broader Zacks Computer & Technology sector’s appreciation of 29.3%.

SNCR has outperformed its peers, such as Microsoft MSFT and Dropbox DBX, which also offer personal cloud services integrated with its respective platforms.

Microsoft has returned 23.5% in the trailing 12-month period, whereas Dropbox has lost 3.9% over the same time frame.  

The outperformance can be attributed to SNCR’s strong demand for its personal cloud solutions and rich partner base.

SNCR Launches Next-Gen Cloud Platform With AI Features

SNCR’s number of cloud subscribers grew 5.1% year over year in the third quarter of 2024, which drove 8% of total revenues. Quarterly recurring revenues were 92.2%. This growth reflects SNCR’s increasing reliance on cloud services to bolster its business model.

In January 2025, SNCR launched the next-generation Synchronoss Personal Cloud platform at CES 2025, offering enhanced AI-powered photo editing tools, an improved interface, and advanced backup functionalities. 

Available globally through carriers like AT&T, Verizon VZ, and SoftBank, the platform now supports over 11 million subscribers, with features like iPhone storage optimization and Android’s improved folder backup. 

The platform prioritizes data privacy and security, providing users with a seamless, ad-free experience and customizable options to manage and enhance its digital content.

Expanding Clientele Aids SNCR’s Prospects

SNCR’s rich partner base has also been a major growth driver for its success. Strong demand for the company’s personal cloud, which supports smartphones, tablets, desktop computers and laptops, is expected to expand its clientele, which includes Verizon and AT&T.

In December 2024, SNCR announced a three-year contract extension with a leading U.S. telecom provider for its Personal Cloud solution, enabling secure backup, management, and sharing of content across devices and the cloud.

Synchronoss Technologies’ 75% of revenues are under contract for at least four years, which boosts top-line visibility.

In the third quarter of 2024, SNCR secured a three-year contract extension with SFR, part of Altice France, which operates high-speed fixed and mobile networks serving over 27 million users. The extension further deepens SNCR’s integration with SFR’s ecosystem, reflecting strong customer satisfaction and the value of SNCR’s cloud platform.

SNCR’s Earnings Estimate Reflects Mixed Prospects

The Zacks Consensus Estimate for full year 2025 revenues is currently pegged at $180.87 million, indicating year-over-year growth of 4.53%.

The Zacks Consensus Estimate for 2024 earnings is pegged at $1.46 per share, which increased 9.7% in the past 30 days, suggesting a 99.32% year-over-year increase.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

What Should Investor’s Do With SNCR Stock?

SNCR’s shares are currently trading at a significant discount, as suggested by a Value Score of A. 

The forward 12-month Price/Sales ratio for SNCR stands at 0.52, significantly below the industry average of 2.96.

SNCR’s robust pipeline of new customer opportunities, continued product innovation, particularly in AI and cloud services, and a focus on enhancing user experience and security, are expected to benefit the company for sustained revenue expansion and market leadership in the cloud solutions space. The stock’s attractive valuation also makes it worth investing in right now.

At present, Synchronoss Technologies’ sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

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