• Full Year Revenue: $173.6 million, a 5.7% increase year-over-year.
• Fourth Quarter Revenue: $44.2 million, a 6.8% increase from the prior year period.
• Adjusted EBITDA: Over $50 million for the full year, a 61% increase year-over-year.
• Adjusted EBITDA Margin: Approximately 29% for the full year; 31.4% in Q4.
• Net Income: $4.6 million for the full year; $7.9 million in Q4.
• Income from Operations: $21.7 million for the full year, up from a loss of $10.6 million in 2023.
• Free Cash Flow: $8.8 million generated for the full year; $9.1 million in Q4.
• Cloud Subscriber Growth: 6% year-over-year in Q4.
• Recurring Revenue: 91% of total revenue in Q4.
• Cash and Cash Equivalents: $33.4 million as of December 31, 2024.
• 2025 Revenue Guidance: $170 million to $180 million.
• 2025 Adjusted Gross Margin Guidance: 78% to 80%.
• 2025 Adjusted EBITDA Guidance: $52 million to $56 million.
• 2025 Free Cash Flow Guidance: $11 million to $16 million.

• Warning! GuruFocus has detected 5 Warning Signs with SNCR.

Release Date: March 11, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Synchronoss Technologies Inc (NASDAQ:SNCR) achieved a 6% year-over-year subscriber growth in Q4 2024, contributing to a full-year revenue increase of 5.7% to $173.6 million.
• The company reported over $50 million in adjusted EBITDA for the full year, marking a 61% increase year-over-year and surpassing the high end of their revised annual outlook.
• Synchronoss Technologies Inc (NASDAQ:SNCR) signed significant multiyear contract extensions with AT&T and SFR, securing over 90% of their 2025 projected revenue under multiyear contracts with global Tier 1 customers.
• The introduction of Capsule, a Synchronoss-branded Personal Cloud product, aims to expand their market reach by offering services to smaller and international operators without the need for customization or integration.
• The company reported a positive net income of $4.6 million for the full year 2024, a significant turnaround from a net loss of $64.5 million in 2023.

Negative Points

• Synchronoss Technologies Inc (NASDAQ:SNCR) anticipates a $2 million reduction in revenue for 2025 due to the non-recurrence of professional services revenue from the SoftBank integration.
• The company expects a $6 million revenue loss in 2025 due to BT winding down its legacy wireline cloud offering as part of a broader cost-reduction effort.
• Interest expenses have increased due to replacing preferred stock with a term loan, although this is expected to decrease over time.
• The company is still awaiting a $28 million IRS tax refund, which has been delayed, impacting their cash flow management.
• Synchronoss Technologies Inc (NASDAQ:SNCR) faces challenges in expanding their prepaid sector, which currently represents less than 5% of their total customer base.

Q & A Highlights

Q: Can you talk about the degree to which your cost-cutting or efficiency efforts are completed? Also, is there any seasonality we should expect in revenue or OpEx next year? A: Louis Ferraro, CFO: Our cost-cutting actions are substantially complete, but we will continue to seek efficiencies, especially with AI technologies. Jeffrey Miller, CEO: With 90% recurring revenue, we expect steady revenue throughout 2025, with potential increases in Q4 due to new customer opportunities.

Q: How does AI impact your company in terms of new revenue opportunities and cost efficiencies? A: Jeffrey Miller, CEO: AI enriches the consumer experience and creates potential revenue opportunities. We use AI for memory presentation and have features like Genius for premium offerings. AI also improves operational efficiency, reducing costs and allowing focus on technology enhancements.

Q: What are your plans for debt refinancing, and do you expect any delays in repayment? A: Louis Ferraro, CFO: We are actively exploring refinancing options for our senior notes and term loan. We expect to have a clear path for refinancing in the coming months and will update the financial community accordingly.

Q: How important is the prepaid sector to your growth? A: Jeffrey Miller, CEO: The prepaid sector currently represents less than 5% of our customer base but is gaining attention and marketing dollars, particularly from Verizon. We expect it to grow and contribute to subscriber revenue in 2025.

Q: Can you provide an update on your tax refund status? A: Louis Ferraro, CFO: We are confident in receiving the entire tax refund, including accrued interest, soon. Once received, 50% of the proceeds will be used to prepay a portion of the term loan at par.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.