Synchronoss Technologies (SNCR) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue grew 8% year-over-year to $43 million, with adjusted EBITDA up 36.8% to $12.7 million and recurring revenue comprising 92.2% of total.

• Operating income improved to $5.52 million from a loss of $3.79 million year-over-year, reflecting cost reductions and restructuring.

• Net loss was $5.7 million ($0.56/share), impacted by $5.5 million in FX losses and higher interest expense.

• Transformation to a global SaaS/cloud provider continues, with strategic divestitures and a focus on cloud-centric solutions.

• Major contract extension signed with SFR and new AI-driven cloud platform features launched.

Financial highlights

• Q3 2024 revenue: $43 million (up from $39.8 million), driven by 5.1% cloud subscriber growth.

• Adjusted gross profit rose 12.4% to $34.2 million (79.6% margin); gross profit was $29.9 million (69.6% margin).

• Adjusted EBITDA margin increased to 29.5% from 23.2% year-over-year.

• Cash and equivalents at September 30, 2024: $25.2 million.

• Free cash flow was negative $27,000 in Q3, down from positive $1.1 million last year.

Outlook and guidance

• Full-year 2024 revenue guidance raised to $172–$175 million, with adjusted gross margin at 77–78%.

• Recurring revenue expected at 90–92% of total revenue.

• Adjusted EBITDA guidance increased to $47–$48 million.

• Net cash flow for 2024 expected to be ~$5 million, excluding $28 million IRS tax refund now anticipated in 2025.

• Liquidity expected to be sufficient for the next twelve months, supported by cash, financing, and positive cash flows.