Synchronoss Technologies (SNCR) Q4 2024 earnings summary

Executive summary

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

• Achieved 6% year-over-year subscriber growth in Q4, driving full-year revenue of $173.6 million, up 5.7% year-over-year and above guidance midpoint.

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

• Signed multi-year contract extensions with AT&T, SFR, and Verizon, securing over 90% of 2025 projected revenue under contract with Tier 1 customers.

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

Financial highlights

• Q4 revenue rose 6.8% year-over-year to $44.2 million, driven by cloud subscriber growth.

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

• Q4 income from operations was $7.3 million, up from $2.2 million; full-year income from operations reached $21.7 million, reversing a prior-year loss.

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

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

Outlook and guidance

• 2025 revenue guidance: $170–$180 million; adjusted gross margin: 78–80%; recurring revenue: at least 90% of total.

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

• Anticipates mid-single-digit subscriber growth in 2025 across existing customers.

• Expects double-digit revenue growth in coming years from new customer contracts.