Synchronoss Technologies Inc.
(“Synchronoss” or the “Company”) (Nasdaq: SNCR), a
global leader and innovator in Personal Cloud platforms, today
reported financial results for its second quarter ended June 30,
2024.
Second Quarter and
Recent Operational Highlights
- Reported total revenue of $43.5
million, driven primarily by 6.1% subscriber growth
year-over-year.
- Generated $78 thousand in net
income, $4.3 million in income from operations, $7.6 million in
free cash flow, and $13.0 million in adjusted EBITDA.
- Repurchased all of the Company’s
$60.8 million of outstanding Preferred Stock at a discounted price
of $52.6 million and $19.7 million of Senior Notes at a discounted
price of $16.5 million, using a $75 million new financing that
lowers its total debt and cost of capital.
- Partnered with Verizon to provide
customers Unlimited Cloud Storage as part of their new myPlan and
myHome Perks offers, deepening an already longstanding partnership
with the wireless carrier.
- Announced the appointment of Junji
Nishihara as the new Country Manager for Japan. Japan has been a
long-standing market of focus for the Company, and continues to
represent a significant growth opportunity for our personal cloud
platform.
Management Commentary
“We are pleased with our strong results for the
quarter, including year-over-year growth in revenue, more than
doubling our adjusted EBITDA, and an approximately $11 million
increase in net income. Our strategic transformation into a
focused, high margin, cloud-only business is complete, and yielding
the improving free cash flow and profitability we expected,” stated
Jeff Miller, President and CEO of Synchronoss. “Our opportunistic
retirement of our preferred stock and a portion of our Senior
Notes, both at a significant discount to face value, were the
latest accomplishments of our planned strategic initiatives
designed to streamline our business and bolster our balance sheet.
We were able to lower our cost of capital, which will result in
additional cash generation capabilities to provide greater
operational flexibility. Continuing to execute on our strategic
decisions, gives us confidence in our ability to consistently
deliver top-line growth with improved profitability and free cash
flow generation going forward.”
Second Quarter
2024 Financial Results:
On October 31, 2023, the Company entered into an
Asset Purchase Agreement to divest its Messaging and NetworkX
businesses. As such, unless otherwise noted, all financial metrics
herein represent continuing operations, except for comparative
purposes to the Consolidated Statements of Cash Flows for full year
2023, which were presented for the whole company at the time.
- Total revenue
increased to $43.5 million from $41.0 million in the prior year
period, driven primarily by 6.1% cloud subscriber growth.
- Quarterly recurring
revenue was 90.5% of total revenue, compared to 89.5% in
the prior year period.
- Gross profit
increased 13.6% to $29.3 million (67.5% of total revenue) from
$25.8 million (62.9% of total revenue) in the prior year
period.
- Adjusted Gross
profit increased 12.1% to $33.7 million (77.5% of total
revenue) from $30.0 million (73.2% of total revenue) in the prior
year period.
- Income (loss) from
operations was $4.3 million, a significant improvement
from a loss of $(5.1) million in the prior year period.
- Net income (loss)
was $78 thousand, or $0.01 per share, compared to $(11.0) million,
or $(1.13) per share, in the prior year period. Net income from
discontinued operations was $0.7 million, or $0.08 per share, in
the prior year period.
- Adjusted EBITDA (a
non-GAAP metric reconciled below) increased 115% to $13.0 million
(29.9% of total revenue) from $6.1 million (14.4% of total revenue)
in the prior year period.
- Cash and cash
equivalents were $23.6 million at June 30, 2024, compared
to $19.1 million at March 31, 2024. In the second quarter of
2024, free cash flow was $7.6 million and adjusted free cash flow
was $8.9 million, compared to $6.4 million and $9.6 million,
respectively, in the prior year period. The Company did not receive
additional U.S. federal tax refunds during the period, leaving its
remaining anticipated balance due at approximately $28 million,
which is expected to be received in the second half of 2024.
2024 Financial Outlook
The Company is revising two 2024 outlook items
upwards to more accurately reflect current expectations:
- The Company now expects adjusted
Gross Margin of between 73%-77% (previously 70%-75%);
- The Company now expects adjusted
EBITDA of between $43 million and $46 million (previously $42
million to $45 million), which equals at least 25% adjusted EBITDA
margin.
The Company is reiterating its other 2024
outlook items, including:
- Revenue range of between $170 and
$175 million, which equals a range of 5-8% growth
year-over-year;
- Recurring revenue of between 85-90%
of total revenue;
- Net cash flow of at least $10
million (including debt amortization).
A reconciliation of GAAP to non-GAAP results has
been provided in the financial statement tables included in this
press release. An explanation of these measures is included below
under the heading "Non-GAAP Financial Measures." With respect to
forward looking statements related to adjusted EBITDA, the Company
has relied upon the exception in item 10(e)(1)(i)(B) of Regulation
S-K and has not provided a quantitative reconciliation of
forecasted adjusted EBITDA to forecasted GAAP net income (loss)
attributable to Synchronoss or to forecasted GAAP income (loss)
from operations, before taxes, within this earnings release because
the Company is unable, without making unreasonable efforts, to
calculate certain reconciling items with confidence. These items
include, but are not limited to, other income, other expense,
(provision) benefit for income taxes, depreciation and amortization
expense, stock-based compensation expense, restructuring charges,
gain (loss) on divestitures, net (loss) income attributable to
redeemable noncontrolling interests.
Conference CallSynchronoss will
hold a conference call today, August 6, 2024, at 4:30 p.m.
Eastern time (1:30 p.m. Pacific time) to discuss these results.
Synchronoss management will host the call,
followed by a question-and-answer period.
Registration Link: Click here to register
Please register online at least 10 minutes prior
to the start time. Upon registration, the webcast platform will
provide dial-in numbers and a unique access code. If you have any
difficulty with registration or connecting to the conference call,
please contact Investor Relations at SNCRIR@icrinc.com.
The conference call will be broadcast live and
available for replay here and via the Investor Relations section of
Synchronoss' website at www.synchronoss.com.
Non-GAAP Financial Measures
Synchronoss has provided in this release selected financial
information that has not been prepared in accordance with GAAP
although this non-GAAP financial information is derived from
numbers that have been prepared in accordance with GAAP. This
information includes historical non-GAAP revenues, adjusted gross
profit, adjusted gross margin, adjusted EBITDA, non-GAAP net income
(loss) attributable to Synchronoss, diluted non-GAAP net income
(loss) per share, free cash flow, and adjusted free cash flow
(which excludes cash payments and receipts related to non-core
business activities). The Company believes that the exclusion of
non-routine cash-settled expenses, such as litigation and
remediation costs (net) and restructuring costs in the calculation
of adjusted free cash flow which do not correlate to the operation
of its business, provide for more useful period-to-period
comparisons of the Company’s results. Synchronoss uses these
non-GAAP financial measures internally in analyzing its financial
results and believes they are useful to investors, as a supplement
to GAAP measures, in evaluating Synchronoss’ ongoing operational
performance. Synchronoss believes that the use of these non-GAAP
financial measures provides an additional tool for investors to use
in evaluating ongoing operating results and trends, and in
comparing its financial results with other companies in
Synchronoss’ industry, many of which present similar non-GAAP
financial measures to investors. As noted, the non-GAAP financial
results discussed above add back fair value stock-based
compensation expense, acquisition-related costs, restructuring,
transition and cease-use lease expense, litigation, remediation and
refiling costs and depreciation and amortization, interest income,
interest expense, loss (gain) on divestitures, other (income)
expense, provision (benefit) for income taxes, and net loss
(income) attributable to noncontrolling interests, and preferred
dividends.
Non-GAAP financial measures should not be
considered in isolation from, or as a substitute for, financial
information prepared in accordance with GAAP. Investors are
encouraged to review the reconciliation of these non-GAAP measures
to their most directly comparable GAAP financial measures as
detailed above. Investors are encouraged to also review the Balance
Sheet, Statement of Operations, and Statement of Cash Flow. As
previously mentioned, a reconciliation of GAAP to non-GAAP results
has been provided in the financial statement tables included in
this press release.
Forward-Looking
StatementsThis press release includes statements
concerning Synchronoss and its future expectations, plans and
prospects that constitute “forward-looking statements” within the
meaning of federal securities law. These forward-looking statements
reflect our current views with respect to, among other things,
future events and our financial performance. These statements are
often, though not always made through the use of words or phrases
such as “may,” “might,” “should,” “could,” “predict,” “will,”
“seek,” “estimate,” “project,” “projection,” “annualized,”
“strive,” “goal,” “target,” “outlook,” “aim,” “expect,” “plan,”
“anticipate,” “intends,” “believes,” “potential” or “continue” or
other similar expressions are intended to identify forward-looking
statements. These forward-looking statements are not historical
facts and are based on current expectations and projections about
future events and financial trends that management believes may
affect its business, financial condition and results of operations,
any of which, by their nature, are uncertain and beyond our
control. Accordingly, we caution you that any such forward looking
statements are not guarantees of future performance and are subject
to risks, assumptions, estimates and uncertainties that are
difficult to predict. Although we believe that the expectations
reflected in these forward looking statements are reasonable as of
the date made, actual results may prove to be materially different
from the results expressed or implied by the forward looking
statements. Except as otherwise indicated, these forward-looking
statements speak only as of the date of this press release and are
subject to a number of risks, uncertainties and assumptions
including, without limitation, risks relating to the Company’s
ability to sustain or increase revenue from its larger customers
and generate revenue from new customers, the Company’s expectations
regarding expenses and revenue, the sufficiency of the Company’s
cash resources, the impact of legal proceedings involving the
Company, including the litigation by the Securities and Exchange
Commission against certain former employees of the Company
described in the Company’s most recent SEC filings, and other risks
and factors that are described in the “Risk Factors” and
“Management’s Discussion and Analysis of Financial Condition and
Results of Operations” sections of the Company’s Annual Report on
Form 10-K for the year ended December 31, 2023, which is on file
with the SEC and available on the SEC’s website at www.sec.gov.
Additional factors may be described in those sections of the
Company’s Quarterly Report on Form 10-Q for the quarter ended June
30, 2024, expected to be filed with the SEC in the third quarter of
2024. The company does not undertake any obligation to update
any forward-looking statements contained in this press release as a
result of new information, future events or otherwise.
About SynchronossSynchronoss
Technologies (Nasdaq: SNCR), a global leader in personal Cloud
solutions, empowers service providers to establish secure and
meaningful connections with their subscribers. Our SaaS Cloud
platform simplifies onboarding processes and fosters subscriber
engagement, resulting in enhanced revenue streams, reduced
expenses, and faster time-to-market. Millions of subscribers trust
Synchronoss to safeguard their most cherished memories and
important digital content. Explore how our Cloud-focused solutions
redefine the way you connect with your digital world at
www.synchronoss.com.
Media Relations
Contact:Domenick
CileaSpringboarddcilea@springboardpr.com
Investor Relations Contact:Ryan
GardellaICR for SynchronossSNCRIR@icrinc.com
SYNCHRONOSS
TECHNOLOGIES, INC.CONDENSED CONSOLIDATED
BALANCE SHEETS(Unaudited) (In
thousands) |
|
|
June 30,2024 |
|
December 31,2023 |
ASSETS |
|
|
|
|
Cash and cash equivalents |
|
$ |
23,648 |
|
$ |
24,572 |
Accounts receivable, net |
|
|
19,859 |
|
|
23,477 |
Operating lease right-of-use assets |
|
|
10,702 |
|
|
14,791 |
Goodwill |
|
|
181,574 |
|
|
183,908 |
Other assets |
|
|
59,889 |
|
|
63,589 |
Total assets |
|
$ |
295,672 |
|
$ |
310,337 |
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
Accounts payable and accrued expenses |
|
$ |
39,467 |
|
$ |
46,602 |
Debt, current |
|
|
1,875 |
|
|
— |
Deferred revenues |
|
|
1,059 |
|
|
1,095 |
Debt, non-current |
|
|
184,357 |
|
|
136,215 |
Operating lease liabilities, non-current |
|
|
20,255 |
|
|
23,593 |
Other liabilities |
|
|
5,540 |
|
|
4,898 |
Preferred stock |
|
|
— |
|
|
58,802 |
Redeemable noncontrolling interest |
|
|
12,500 |
|
|
12,500 |
Stockholders’ equity |
|
|
30,619 |
|
|
26,632 |
Total liabilities and stockholders’ equity |
|
$ |
295,672 |
|
$ |
310,337 |
SYNCHRONOSS
TECHNOLOGIES, INC.CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS(Unaudited) (In thousands,
except per share data) |
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Net revenues |
|
$ |
43,458 |
|
|
$ |
41,019 |
|
|
$ |
86,423 |
|
|
$ |
83,004 |
|
Costs and expenses: |
|
|
|
|
|
|
|
|
Cost of revenues1 |
|
|
10,401 |
|
|
|
11,488 |
|
|
|
20,624 |
|
|
|
22,448 |
|
Research and development |
|
|
11,896 |
|
|
|
13,274 |
|
|
|
22,227 |
|
|
|
26,018 |
|
Selling, general and administrative |
|
|
12,788 |
|
|
|
17,256 |
|
|
|
26,045 |
|
|
|
33,222 |
|
Restructuring charges |
|
|
48 |
|
|
|
21 |
|
|
|
267 |
|
|
|
363 |
|
Depreciation and amortization |
|
|
4,028 |
|
|
|
4,064 |
|
|
|
8,387 |
|
|
|
7,996 |
|
Total costs and expenses |
|
|
39,161 |
|
|
|
46,103 |
|
|
|
77,550 |
|
|
|
90,047 |
|
Income (loss) from
operations |
|
|
4,297 |
|
|
|
(5,084 |
) |
|
|
8,873 |
|
|
|
(7,043 |
) |
Interest income |
|
|
183 |
|
|
|
127 |
|
|
|
391 |
|
|
|
221 |
|
Interest expense |
|
|
(3,486 |
) |
|
|
(3,461 |
) |
|
|
(7,003 |
) |
|
|
(6,915 |
) |
Other income (expense), net |
|
|
1,220 |
|
|
|
(268 |
) |
|
|
5,031 |
|
|
|
(3,243 |
) |
Income (loss) from continuing
operations, before taxes |
|
|
2,214 |
|
|
|
(8,686 |
) |
|
|
7,292 |
|
|
|
(16,980 |
) |
Provision for income taxes |
|
|
(2,708 |
) |
|
|
(532 |
) |
|
|
(3,311 |
) |
|
|
(827 |
) |
Net (loss) income from
continuing operations |
|
|
(494 |
) |
|
|
(9,218 |
) |
|
|
3,981 |
|
|
|
(17,807 |
) |
Discontinued operations: |
|
|
|
|
|
|
|
|
Income (loss) from discontinued operations, before taxes |
|
|
— |
|
|
|
951 |
|
|
|
— |
|
|
|
(627 |
) |
Provision for income taxes |
|
|
— |
|
|
|
(251 |
) |
|
|
— |
|
|
|
(1,015 |
) |
Net income (loss) from discontinued operations |
|
|
— |
|
|
|
700 |
|
|
|
— |
|
|
|
(1,642 |
) |
Net (loss) income |
|
|
(494 |
) |
|
|
(8,518 |
) |
|
|
3,981 |
|
|
|
(19,449 |
) |
Net income attributable to redeemable noncontrolling interests |
|
|
5 |
|
|
|
14 |
|
|
|
— |
|
|
|
28 |
|
Preferred stock dividend and gain on repurchase of preferred
stock |
|
|
567 |
|
|
|
(2,475 |
) |
|
|
(1,562 |
) |
|
|
(4,949 |
) |
Net income (loss) attributable
to Synchronoss |
|
$ |
78 |
|
|
$ |
(10,979 |
) |
|
$ |
2,419 |
|
|
$ |
(24,370 |
) |
Earnings (loss) per
share: |
|
|
|
|
|
|
|
|
Basic: |
|
|
|
|
|
|
|
|
Net income (loss) from continuing operations |
|
$ |
0.01 |
|
|
$ |
(1.21 |
) |
|
$ |
0.24 |
|
|
$ |
(2.35 |
) |
Net income (loss) from discontinued operations |
|
|
— |
|
|
|
0.08 |
|
|
|
— |
|
|
|
(0.17 |
) |
Basic |
|
$ |
0.01 |
|
|
$ |
(1.13 |
) |
|
$ |
0.24 |
|
|
$ |
(2.52 |
) |
Diluted: |
|
|
|
|
|
|
|
|
Net income (loss) from continuing operations |
|
$ |
0.01 |
|
|
$ |
(1.21 |
) |
|
$ |
0.24 |
|
|
$ |
(2.35 |
) |
Net income (loss) from discontinued operations |
|
|
— |
|
|
|
0.08 |
|
|
|
— |
|
|
|
(0.17 |
) |
Diluted |
|
$ |
0.01 |
|
|
$ |
(1.13 |
) |
|
$ |
0.24 |
|
|
$ |
(2.52 |
) |
Weighted-average common shares
outstanding: |
|
|
|
|
|
|
|
|
Basic |
|
|
10,042 |
|
|
|
9,685 |
|
|
|
9,942 |
|
|
|
9,669 |
|
Diluted |
|
|
10,424 |
|
|
|
9,685 |
|
|
|
10,265 |
|
|
|
9,669 |
|
_________________________________1 Cost of
revenues excludes depreciation and amortization which are shown
separately.
SYNCHRONOSS
TECHNOLOGIES, INC.CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS(Unaudited) (In
thousands) |
|
Six Months Ended June 30, |
|
|
2024 |
|
|
|
2023 |
|
Net income (loss) from
continuing operations |
$ |
3,981 |
|
|
$ |
(17,807 |
) |
Net loss from discontinued
operations |
|
— |
|
|
|
(1,642 |
) |
Adjustments to reconcile net income (loss) to net cash from
operating activities: |
|
|
|
Non-cash items |
|
10,341 |
|
|
|
23,446 |
|
Changes in operating assets and liabilities |
|
(2,482 |
) |
|
|
8,559 |
|
Net cash provided by operating activities |
|
11,840 |
|
|
|
12,556 |
|
|
|
|
|
Investing activities: |
|
|
|
Purchases of fixed assets |
|
(896 |
) |
|
|
(994 |
) |
Purchases of intangible assets and capitalized software |
|
(6,614 |
) |
|
|
(9,350 |
) |
Net cash used in investing activities |
|
(7,510 |
) |
|
|
(10,344 |
) |
Financing activities: |
|
|
|
Net cash used in financing activities |
|
(5,105 |
) |
|
|
(4,904 |
) |
Effect of exchange rate changes on cash |
|
(149 |
) |
|
|
100 |
|
Net decrease in cash and cash equivalents |
|
(924 |
) |
|
|
(2,592 |
) |
|
|
|
|
Beginning cash and cash
equivalents from continuing operations |
|
24,572 |
|
|
|
18,310 |
|
Beginning cash and cash
equivalents from discontinued operations |
|
— |
|
|
|
3,611 |
|
Beginning cash and cash equivalents |
|
24,572 |
|
|
|
21,921 |
|
Ending cash and cash
equivalents from continuing operations |
|
23,648 |
|
|
|
15,342 |
|
Ending cash and cash
equivalents from discontinued operations |
|
— |
|
|
|
3,987 |
|
Ending cash and cash equivalents |
$ |
23,648 |
|
|
$ |
19,329 |
|
SYNCHRONOSS
TECHNOLOGIES, INC.RECONCILIATION OF GAAP TO
NON-GAAP FINANCIAL MEASURES(Unaudited) (In
thousands, except per share data) |
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Non-GAAP financial measures
and reconciliation: |
|
|
|
|
|
|
|
|
GAAP Revenue |
|
$ |
43,458 |
|
|
$ |
41,019 |
|
|
$ |
86,423 |
|
|
$ |
83,004 |
|
Less: Cost of revenues |
|
|
10,401 |
|
|
|
11,488 |
|
|
|
20,624 |
|
|
|
22,448 |
|
Less: Restructuring1 |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
92 |
|
Less: Depreciation and Amortization2 |
|
|
3,723 |
|
|
|
3,716 |
|
|
|
7,724 |
|
|
|
7,308 |
|
Gross Profit |
|
|
29,334 |
|
|
|
25,815 |
|
|
|
58,075 |
|
|
|
53,156 |
|
Gross Profit as % of
Revenue |
|
|
67.5% |
|
|
|
62.9% |
|
|
|
67.2% |
|
|
|
64.0% |
|
Gross Profit increase
(decrease) % |
|
|
13.6% |
|
|
|
|
|
9.3% |
|
|
|
|
|
|
|
|
|
|
|
|
Add / (Less): |
|
|
|
|
|
|
|
|
Stock-based compensation expense |
|
|
71 |
|
|
|
73 |
|
|
|
94 |
|
|
|
152 |
|
Restructuring, transition and cease-use lease expense |
|
|
532 |
|
|
|
414 |
|
|
|
556 |
|
|
|
597 |
|
Depreciation and Amortization2 |
|
|
3,723 |
|
|
|
3,716 |
|
|
|
7,724 |
|
|
|
7,308 |
|
Adjusted Gross Profit |
|
$ |
33,660 |
|
|
$ |
30,018 |
|
|
$ |
66,449 |
|
|
$ |
61,213 |
|
Adjusted Gross Margin |
|
|
77.5% |
|
|
|
73.2% |
|
|
|
76.9% |
|
|
|
73.7% |
|
_________________________________1 Amounts
associated with cost of revenues.2 Depreciation
and Amortization contains a reasonable allocation for expenses
associated with cost of revenues.
SYNCHRONOSS
TECHNOLOGIES, INC.RECONCILIATION OF GAAP TO
NON-GAAP FINANCIAL MEASURES(Unaudited) (In
thousands, except per share data) |
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
|
|
2024 |
|
|
2023 |
|
|
|
2024 |
|
|
2023 |
|
GAAP Net income (loss)
attributable to Synchronoss |
|
$ |
78 |
|
$ |
(10,979 |
) |
|
$ |
2,419 |
|
$ |
(24,370 |
) |
Less: Net loss (income) from discontinued operations |
|
|
— |
|
|
(700 |
) |
|
|
— |
|
|
1,642 |
|
GAAP Net income (loss)
attributable to Synchronoss excluding discontinued operations |
|
|
78 |
|
|
(11,679 |
) |
|
|
2,419 |
|
|
(22,728 |
) |
Add / (Less): |
|
|
|
|
|
|
|
|
Stock-based compensation expense |
|
|
1,245 |
|
|
1,392 |
|
|
|
2,355 |
|
|
2,851 |
|
Restructuring, transition and cease-use lease expense |
|
|
2,333 |
|
|
2,642 |
|
|
|
2,800 |
|
|
3,358 |
|
Amortization expense |
|
|
273 |
|
|
273 |
|
|
|
546 |
|
|
534 |
|
Sublease receivable impairment |
|
|
806 |
|
|
— |
|
|
|
806 |
|
|
— |
|
Change in contingent consideration |
|
|
— |
|
|
659 |
|
|
|
— |
|
|
659 |
|
Litigation, remediation and
refiling costs, net |
|
|
291 |
|
|
2,384 |
|
|
|
672 |
|
|
4,343 |
|
Non-GAAP Net income
attributable to Synchronoss |
|
$ |
5,026 |
|
$ |
(4,329 |
) |
|
$ |
9,598 |
|
$ |
(10,983 |
) |
|
|
|
|
|
|
|
|
|
Non-GAAP Net (loss) income per
share: |
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.50 |
|
$ |
(0.45 |
) |
|
$ |
0.97 |
|
$ |
(1.14 |
) |
Diluted |
|
$ |
0.48 |
|
$ |
(0.45 |
) |
|
$ |
0.94 |
|
$ |
(1.14 |
) |
Weighted-average shares
outstanding: |
|
|
|
|
|
|
|
|
Basic |
|
|
10,042 |
|
|
9,685 |
|
|
|
9,942 |
|
|
9,669 |
|
Diluted |
|
|
10,424 |
|
|
9,685 |
|
|
|
10,265 |
|
|
9,669 |
|
_________________________________1 Amortization
from acquired intangible assets.
SYNCHRONOSS
TECHNOLOGIES, INC.RECONCILIATION OF GAAP TO
NON-GAAP FINANCIAL MEASURES(Unaudited) (In
thousands) |
|
|
Three Months Ended |
|
Six Months Ended |
|
|
Jun 30, 2024 |
|
Mar 31, 2024 |
|
Dec 31, 2023 |
|
Sep 30, 2023 |
|
Jun 30, 2023 |
|
Jun 30, 2024 |
|
Jun 30, 2023 |
Net income (loss) attributable to Synchronoss |
|
$ |
78 |
|
|
$ |
2,341 |
|
|
$ |
(35,001 |
) |
|
$ |
(5,171 |
) |
|
$ |
(10,979 |
) |
|
$ |
2,419 |
|
|
$ |
(24,370 |
) |
Add / (Less): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation expense |
|
|
1,245 |
|
|
|
1,110 |
|
|
|
501 |
|
|
|
1,037 |
|
|
|
1,392 |
|
|
|
2,355 |
|
|
|
2,851 |
|
Restructuring, transition and cease-use lease expense |
|
|
2,333 |
|
|
|
467 |
|
|
|
4,140 |
|
|
|
203 |
|
|
|
2,642 |
|
|
|
2,800 |
|
|
|
3,358 |
|
Sublease receivable impairment |
|
|
806 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
806 |
|
|
|
— |
|
STIN Note receivable impairment |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
4,834 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Change in contingent consideration |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
824 |
|
|
|
659 |
|
|
|
— |
|
|
|
659 |
|
Litigation, remediation and refiling costs, net |
|
|
291 |
|
|
|
381 |
|
|
|
807 |
|
|
|
1,654 |
|
|
|
2,384 |
|
|
|
672 |
|
|
|
4,343 |
|
Net loss (income) from discontinued operations |
|
|
— |
|
|
|
— |
|
|
|
2,501 |
|
|
|
(8 |
) |
|
|
(700 |
) |
|
|
— |
|
|
|
1,642 |
|
Loss on sale of discontinued operations |
|
|
— |
|
|
|
— |
|
|
|
16,382 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Depreciation and amortization |
|
|
4,028 |
|
|
|
4,359 |
|
|
|
4,352 |
|
|
|
4,482 |
|
|
|
4,064 |
|
|
|
8,387 |
|
|
|
7,996 |
|
Interest income |
|
|
(183 |
) |
|
|
(208 |
) |
|
|
(56 |
) |
|
|
(149 |
) |
|
|
(127 |
) |
|
|
(391 |
) |
|
|
(221 |
) |
Interest expense |
|
|
3,486 |
|
|
|
3,517 |
|
|
|
3,566 |
|
|
|
3,482 |
|
|
|
3,461 |
|
|
|
7,003 |
|
|
|
6,915 |
|
Other expense (income), net |
|
|
(1,220 |
) |
|
|
(3,811 |
) |
|
|
6,341 |
|
|
|
(4,456 |
) |
|
|
268 |
|
|
|
(5,031 |
) |
|
|
3,243 |
|
Provision (benefit) for income taxes |
|
|
2,708 |
|
|
|
603 |
|
|
|
3,893 |
|
|
|
23 |
|
|
|
532 |
|
|
|
3,311 |
|
|
|
827 |
|
Net (income) loss attributable to noncontrolling interests |
|
|
(5 |
) |
|
|
5 |
|
|
|
(26 |
) |
|
|
18 |
|
|
|
(14 |
) |
|
|
— |
|
|
|
(28 |
) |
Preferred stock dividend and gain on repurchase of
preferred stock |
|
|
(567 |
) |
|
|
2,129 |
|
|
|
2,584 |
|
|
|
2,474 |
|
|
|
2,475 |
|
|
|
1,562 |
|
|
|
4,949 |
|
Adjusted EBITDA
(non-GAAP) |
|
$ |
13,000 |
|
|
$ |
10,893 |
|
|
$ |
9,984 |
|
|
$ |
9,247 |
|
|
$ |
6,057 |
|
|
$ |
23,893 |
|
|
$ |
12,164 |
|
SYNCHRONOSS
TECHNOLOGIES, INC.RECONCILIATION OF GAAP TO
NON-GAAP FINANCIAL MEASURES(Unaudited) (In
thousands) |
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Net cash provided by operating
activities |
|
$ |
11,313 |
|
|
$ |
11,261 |
|
|
$ |
11,840 |
|
|
$ |
12,556 |
|
Add / (Less): |
|
|
|
|
|
|
|
|
Capitalized software |
|
|
(3,328 |
) |
|
|
(4,756 |
) |
|
|
(6,614 |
) |
|
|
(9,350 |
) |
Property and equipment |
|
|
(379 |
) |
|
|
(118 |
) |
|
|
(896 |
) |
|
|
(994 |
) |
Free Cashflow |
|
|
7,606 |
|
|
|
6,387 |
|
|
|
4,330 |
|
|
|
2,212 |
|
Add: Litigation and remediation costs, net |
|
|
450 |
|
|
|
2,358 |
|
|
|
3,006 |
|
|
|
5,184 |
|
Add: Restructuring |
|
|
869 |
|
|
|
898 |
|
|
|
2,211 |
|
|
|
2,101 |
|
Adjusted Free Cashflow |
|
$ |
8,925 |
|
|
$ |
9,643 |
|
|
$ |
9,547 |
|
|
$ |
9,497 |
|
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