Synchronoss Technologies (SNCR) Q4 2024 earnings summary

Executive summary

• Achieved strategic transformation to a high-margin global cloud solutions provider, generating positive free cash flow and 29% adjusted EBITDA margins in 2024.

• Full-year 2024 revenue reached $173.6 million, up 5.7% year-over-year, driven by 6% cloud subscriber growth.

• Q4 2024 revenue grew 6.8% year-over-year to $44.2 million, with 91% recurring revenue.

• Signed multi-year contract extensions with AT&T, SFR, and Verizon, securing over 90% of 2025 projected revenue under contract.

• Launched Capsyl, a branded cloud product targeting smaller and international operators, expanding the addressable market.

Financial highlights

• Q4 revenue increased 6.8% year-over-year to $44.2 million; full-year revenue up 5.7% to $173.6 million.

• Adjusted gross profit for Q4 rose 12.7% to $35 million (79.3% margin); full-year adjusted gross profit up 10.5% to $135.7 million (78.2% margin).

• Q4 net income was $7.9 million ($0.71/share) vs. a net loss of $35 million prior year; full-year net income $4.6 million ($0.43/share) vs. a $64.5 million loss.

• Q4 adjusted EBITDA was $13.9 million (31.4% margin); full-year adjusted EBITDA $50.4 million (29% margin), up 60.6% year-over-year.

• Cash and equivalents at year-end were $33.4 million, up from $24.6 million at the end of 2023.

• Q4 free cash flow was $9.1 million; full-year free cash flow $13.4 million, with adjusted free cash flow at $23.3 million.

Outlook and guidance

• 2025 revenue guidance: $170–$180 million, with at least 90% recurring revenue.

• Adjusted gross margin expected at 78–80%; recurring revenue to be at least 90% of total.

• Adjusted EBITDA guidance: $52–$56 million; free cash flow: $11–$16 million (excluding $28 million anticipated federal tax refund plus interest in 2025).

• Anticipates mid-single-digit subscriber growth in 2025; double-digit revenue growth projected in coming years.