Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2022 | Aug. 08, 2022 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2022 | |
Document Transition Report | false | |
Entity File Number | 001-40574 | |
Entity Registrant Name | SYNCHRONOSS TECHNOLOGIES, INC | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 06-1594540 | |
Entity Address, Address Line One | 200 Crossing Boulevard | |
Entity Address, Address Line Two | 3rd Floor | |
Entity Address, City or Town | Bridgewater | |
Entity Address, State or Province | NJ | |
Entity Address, Postal Zip Code | 08807 | |
City Area Code | 866 | |
Local Phone Number | 620-3940 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 91,181,635 | |
Entity Central Index Key | 0001131554 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q2 | |
Common Stock | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Common Stock, $.0001 par value | |
Trading Symbol | SNCR | |
Security Exchange Name | NASDAQ | |
8.375% Senior Notes due 2026 | ||
Document Information [Line Items] | ||
Title of 12(b) Security | 8.375% Senior Notes due 2026 | |
Trading Symbol | SNCRL | |
Security Exchange Name | NASDAQ |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 25,512 | $ 31,504 |
Accounts receivable, net | 43,306 | 47,586 |
Prepaid & other current assets | 47,763 | 42,901 |
Total current assets | 116,581 | 121,991 |
Non-current assets: | ||
Property and equipment, net | 4,911 | 6,979 |
Operating lease right-of-use assets | 22,791 | 26,399 |
Goodwill | 209,806 | 224,577 |
Intangible assets, net | 52,348 | 60,335 |
Loan receivable | 4,834 | 4,834 |
Other assets, non-current | 5,597 | 5,619 |
Total non-current assets | 300,287 | 328,743 |
Total assets | 416,868 | 450,734 |
Current liabilities: | ||
Accounts payable | 5,659 | 11,097 |
Accrued expenses | 58,373 | 61,916 |
Deferred revenues, current | 18,739 | 22,368 |
Total current liabilities | 82,771 | 95,381 |
Long-term debt, net of debt issuance costs | 133,826 | 133,104 |
Deferred tax liabilities | 579 | 560 |
Deferred revenues, non-current | 494 | 548 |
Leases, non-current | 32,442 | 36,095 |
Other non-current liabilities | 7,545 | 9,218 |
Total liabilities | 257,657 | 274,906 |
Commitments and contingencies: | ||
Redeemable noncontrolling interest | 12,500 | 12,500 |
Stockholders’ equity: | ||
Common stock, $0.0001 par value; 150,000 shares authorized, 89,045 and 88,305 issued and outstanding at June 30, 2022 and December 31, 2021, respectively | 9 | 9 |
Additional paid-in capital | 490,594 | 492,512 |
Accumulated other comprehensive loss | (48,221) | (32,985) |
Accumulated deficit | (364,019) | (368,713) |
Total stockholders’ equity | 78,363 | 90,823 |
Total liabilities and stockholders’ equity | 416,868 | 450,734 |
Series B Preferred Stock | ||
Current liabilities: | ||
Series B Non-Convertible Perpetual Preferred Stock, $0.0001 par value; 150 shares authorized, 71 and 75 shares issued and outstanding at June 30, 2022 and December 31, 2021, respectively | $ 68,348 | $ 72,505 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares | Jun. 30, 2022 | Dec. 31, 2021 |
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized (in shares) | 150,000,000 | 150,000,000 |
Common stock, shares issued (in shares) | 89,045,000 | 88,305,000 |
Common stock, shares outstanding (in shares) | 89,045,000 | 88,305,000 |
Series B Preferred Stock | ||
Preferred stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized (in shares) | 150,000 | 150,000 |
Preferred stock, shares issued (in shares) | 71,000 | 75,000 |
Preferred stock, shares outstanding (in shares) | 71,000 | 75,000 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | ||
Income Statement [Abstract] | |||||
Net revenues | $ 65,236 | $ 71,532 | $ 131,102 | $ 137,031 | |
Costs and expenses: | |||||
Cost of revenues | [1] | 22,316 | 27,142 | 47,155 | 55,779 |
Research and development | 13,460 | 17,197 | 29,251 | 34,594 | |
Selling, general and administrative | 15,288 | 21,909 | 33,185 | 39,837 | |
Restructuring charges | 1,019 | 877 | 1,704 | 1,590 | |
Depreciation and amortization | 8,259 | 8,485 | 16,293 | 18,352 | |
Total costs and expenses | 60,342 | 75,610 | 127,588 | 150,152 | |
Income (loss) from operations | 4,894 | (4,078) | 3,514 | (13,121) | |
Interest income | 118 | 25 | 210 | 30 | |
Interest expense | (3,343) | (144) | (6,668) | (239) | |
Gain on divestiture | 2,622 | 0 | 2,622 | 0 | |
Other income (expense), net | 4,065 | 1,576 | 5,769 | (1,820) | |
Income (loss) from operations, before taxes | 8,356 | (2,621) | 5,447 | (15,150) | |
(Provision) benefit for income taxes | (435) | 201 | (563) | 364 | |
Net income (loss) | 7,921 | (2,420) | 4,884 | (14,786) | |
Net (loss) income attributable to redeemable noncontrolling interests | (75) | (50) | (190) | 286 | |
Preferred stock dividend | (2,519) | (21,476) | (4,957) | (32,006) | |
Net income (loss) attributable to Synchronoss | $ 5,327 | $ (23,946) | $ (263) | $ (46,506) | |
Earnings (loss) per share: | |||||
Basic (in dollars per share) | $ 0.06 | $ (0.54) | $ 0 | $ (1.07) | |
Diluted (in dollars per share) | $ 0.06 | $ (0.54) | $ 0 | $ (1.07) | |
Weighted-average common shares outstanding: | |||||
Basic (in shares) | 87,124 | 44,131 | 86,031 | 43,438 | |
Diluted (in shares) | 89,249 | 44,131 | 86,031 | 43,438 | |
[1]Cost of revenues excludes depreciation and amortization which are shown separately. |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 7,921 | $ (2,420) | $ 4,884 | $ (14,786) |
Other comprehensive loss, net of tax: | ||||
Foreign currency translation adjustments | (12,157) | 120 | (15,316) | (1,768) |
Net income (loss) on inter-company foreign currency transactions | 62 | (213) | 80 | 539 |
Total other comprehensive income (loss) | (12,095) | (93) | (15,236) | (1,229) |
Comprehensive loss | (4,174) | (2,513) | (10,352) | (16,015) |
Comprehensive (loss) income attributable to redeemable noncontrolling interests | (75) | (50) | (190) | 286 |
Comprehensive loss attributable to Synchronoss | $ (4,249) | $ (2,563) | $ (10,542) | $ (15,729) |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (Unaudited) - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Treasury Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Accumulated deficit |
Beginning balance (in shares) at Dec. 31, 2020 | 51,177 | |||||
Beginning balance at Dec. 31, 2020 | $ 43,282 | $ 5 | $ (82,087) | $ 499,348 | $ (28,213) | $ (345,771) |
Beginning balance (in shares) at Dec. 31, 2020 | (7,162) | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stock based compensation | 5,034 | 5,034 | ||||
Issuance of restricted stock (in shares) | 1,798 | |||||
Issuance of restricted stock | 1 | 1 | ||||
Preferred stock dividend | (19,215) | (19,215) | ||||
Amortization of preferred stock issuance costs | (12,791) | (12,791) | ||||
Issuance of common stock related to acquisition (in shares) | 42,308 | |||||
Issuance of common stock related to acquisition | 110,000 | $ 4 | 109,996 | |||
Common Stock - Issuance Costs | (8,340) | (8,340) | ||||
Retirement of treasury stock (in shares) | (7,162) | (7,162) | ||||
Retirement of treasury stock | 0 | $ 82,087 | (82,087) | |||
Net income (loss) attributable to Synchronoss | (14,786) | (14,786) | ||||
Non-controlling interest | 0 | (286) | 286 | |||
Total other comprehensive income (loss) | (1,229) | (1,229) | ||||
Ending balance (in shares) at Jun. 30, 2021 | 88,121 | |||||
Ending balance at Jun. 30, 2021 | 101,956 | $ 9 | $ 0 | 491,660 | (29,442) | (360,271) |
Ending balance (in shares) at Jun. 30, 2021 | 0 | |||||
Beginning balance (in shares) at Mar. 31, 2021 | 51,331 | |||||
Beginning balance at Mar. 31, 2021 | 22,063 | $ 5 | $ (82,087) | 491,295 | (29,349) | (357,801) |
Beginning balance (in shares) at Mar. 31, 2021 | (7,162) | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stock based compensation | 2,221 | 2,221 | ||||
Issuance of restricted stock (in shares) | 1,644 | |||||
Issuance of restricted stock | 1 | 1 | ||||
Preferred stock dividend | (9,808) | (9,808) | ||||
Amortization of preferred stock issuance costs | (11,668) | (11,668) | ||||
Issuance of common stock related to acquisition (in shares) | 42,308 | |||||
Issuance of common stock related to acquisition | 110,000 | $ 4 | 109,996 | |||
Common Stock - Issuance Costs | (8,340) | (8,340) | ||||
Retirement of treasury stock (in shares) | (7,162) | (7,162) | ||||
Retirement of treasury stock | 0 | $ 82,087 | (82,087) | |||
Net income (loss) attributable to Synchronoss | (2,420) | (2,420) | ||||
Non-controlling interest | 0 | 50 | (50) | |||
Total other comprehensive income (loss) | (93) | (93) | ||||
Ending balance (in shares) at Jun. 30, 2021 | 88,121 | |||||
Ending balance at Jun. 30, 2021 | $ 101,956 | $ 9 | $ 0 | 491,660 | (29,442) | (360,271) |
Ending balance (in shares) at Jun. 30, 2021 | 0 | |||||
Beginning balance (in shares) at Dec. 31, 2021 | 88,305 | 88,305 | ||||
Beginning balance at Dec. 31, 2021 | $ 90,823 | $ 9 | $ 0 | 492,512 | (32,985) | (368,713) |
Beginning balance (in shares) at Dec. 31, 2021 | 0 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stock based compensation | 2,929 | 2,929 | ||||
Issuance of restricted stock (in shares) | 807 | |||||
Issuance of restricted stock | 0 | |||||
Preferred stock dividend | (4,814) | (4,814) | ||||
Amortization of preferred stock issuance costs | (143) | (143) | ||||
Shares withheld for taxes in connection with issuance of restricted stock (in shares) | 67 | |||||
Shares withheld for taxes in connection with issuance of restricted stock | (80) | (80) | ||||
Net income (loss) attributable to Synchronoss | 4,884 | 4,884 | ||||
Non-controlling interest | 0 | 190 | (190) | |||
Total other comprehensive income (loss) | $ (15,236) | (15,236) | ||||
Ending balance (in shares) at Jun. 30, 2022 | 89,045 | 89,045 | ||||
Ending balance at Jun. 30, 2022 | $ 78,363 | $ 9 | $ 0 | 490,594 | (48,221) | (364,019) |
Ending balance (in shares) at Jun. 30, 2022 | 0 | |||||
Beginning balance (in shares) at Mar. 31, 2022 | 88,244 | |||||
Beginning balance at Mar. 31, 2022 | 83,984 | $ 9 | $ 0 | 491,966 | (36,126) | (371,865) |
Beginning balance (in shares) at Mar. 31, 2022 | 0 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stock based compensation | 1,152 | 1,152 | ||||
Issuance of restricted stock (in shares) | 868 | |||||
Issuance of restricted stock | 0 | |||||
Preferred stock dividend | (2,376) | (2,376) | ||||
Amortization of preferred stock issuance costs | (143) | (143) | ||||
Shares withheld for taxes in connection with issuance of restricted stock (in shares) | (67) | |||||
Shares withheld for taxes in connection with issuance of restricted stock | (80) | (80) | ||||
Net income (loss) attributable to Synchronoss | 7,921 | 7,921 | ||||
Non-controlling interest | 0 | 75 | (75) | |||
Total other comprehensive income (loss) | $ (12,095) | (12,095) | ||||
Ending balance (in shares) at Jun. 30, 2022 | 89,045 | 89,045 | ||||
Ending balance at Jun. 30, 2022 | $ 78,363 | $ 9 | $ 0 | $ 490,594 | $ (48,221) | $ (364,019) |
Ending balance (in shares) at Jun. 30, 2022 | 0 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Operating activities: | ||
Net income (loss) from continuing operations | $ 4,884 | $ (14,786) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 16,293 | 18,352 |
Amortization of debt issuance costs | 678 | 0 |
(Gain) loss on disposals of fixed assets | 1 | (18) |
Gain on sale of DXP & Activations Solutions | (2,622) | 0 |
(Gain) loss on disposals of intangible assets | 0 | (550) |
Amortization of bond discount (premium) | 44 | 0 |
Deferred income taxes | (28) | (1,471) |
Stock-based compensation | 2,891 | 5,066 |
Operating lease impairment, net | 175 | 1,205 |
Changes in operating assets and liabilities: | ||
Accounts receivable, net | 3,661 | 4,743 |
Prepaid expenses and other current assets | (314) | (648) |
Accounts payable | (5,237) | 686 |
Accrued expenses | (2,650) | (4,151) |
Deferred revenues | (3,015) | (5,539) |
Other liabilities | (8,033) | 5,278 |
Net cash provided by operating activities | 6,728 | 8,167 |
Investing activities: | ||
Purchases of fixed assets | (573) | (1,250) |
Additions to capitalized software | (10,695) | (10,959) |
Proceeds from the sale of intangibles | 0 | 550 |
Proceeds from the sale of DXP & Activations Solutions | 7,500 | 0 |
Net cash used in investing activities | (3,768) | (11,659) |
Financing activities: | ||
Share-based compensation-related proceeds, net of taxes paid on withholding shares | 0 | (1) |
Taxes on withholding shares | 80 | (1) |
Debt issuance costs related to long term debt | 0 | (7,811) |
Proceeds from issuance of long term debt | 0 | 125,000 |
Repayment of revolving line of credit | 0 | (10,000) |
Proceeds from issuance of common stock | 0 | 110,000 |
Proceeds from issuance of Series B preferred stock | 0 | 75,000 |
Preferred dividend paid in the form of cash | (1,859) | |
Net cash (used in) provided by financing activities | (8,517) | 2,687 |
Effect of exchange rate changes on cash | (435) | (296) |
Net decrease in cash and cash equivalents | (5,992) | (1,101) |
Cash and cash equivalents, beginning of period | 31,504 | 33,671 |
Cash and cash equivalents, end of period | 25,512 | 32,570 |
Common Stock | ||
Financing activities: | ||
Common stock issuance costs | 0 | (8,340) |
Series A Preferred Stock | ||
Financing activities: | ||
Redemption of Preferred stock | 0 | (278,665) |
Supplemental disclosures of non-cash investing and financing activities: | ||
Paid in kind dividends | 0 | 31,277 |
Series B Preferred Stock | ||
Financing activities: | ||
Common stock issuance costs | 0 | (2,495) |
Preferred dividend paid in the form of cash | 0 | |
Redemption of Preferred stock | (6,738) | 0 |
Supplemental disclosures of non-cash investing and financing activities: | ||
Paid in kind dividends | $ 2,581 | $ 0 |
Description of Business
Description of Business | 6 Months Ended |
Jun. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business | Description of Business General Synchronoss Technologies, Inc. (“Synchronoss” or the “Company”) is a leading provider of white label cloud, messaging, and digital solutions that enable our customers to keep subscribers, systems, networks and content in sync. The Synchronoss Personal Cloud™ platform is a secure and highly scalable white label platform designed to store and sync subscriber’s personally created content seamlessly to and from current and new devices. This allows a carrier’s customers to protect, engage with and manage their personal content and gives the Company’s Operator customers the ability to increase average revenue per user (“ARPU”) through a new monthly recurring charge (“MRC”) and opportunities to mine valuable data that will give subscribers access to new, beneficial services. The Synchronoss Personal Cloud™ platform is specifically designed to support smartphones, tablets and wirelessly enabled consumer electronics such as wearables for health and wellness, cameras, tablets, e-readers, personal navigation devices, and GPS enabled devices, as well as connected automobiles and homes. The Synchronoss Messaging Platform powers mobile messaging and mailboxes for hundreds of millions of telecommunication subscribers. The Advanced Messaging platform is a powerful, secure, intelligent, white-label messaging platform that expands capabilities for communications service provider and multi-service providers to offer P2P messaging via Rich Communications Services (“RCS”). The Mobile Messaging Platform (“MMP”) provides a single standard ecosystem for onboarding and management to brands, advertisers and message wholesalers. |
Basis of Presentation and Conso
Basis of Presentation and Consolidation | 6 Months Ended |
Jun. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Consolidation | Basis of Presentation and Consolidation Basis of Presentation and Consolidation The accompanying interim unaudited condensed consolidated financial statements have been prepared by Synchronoss and in the opinion of management, include all adjustments necessary for a fair presentation of the Company’s financial position, results of operations and cash flows for the interim periods. They do not include all of the information and footnotes required by U.S. generally accepted accounting principles (“GAAP”) for complete financial statements and should be read in conjunction with the Company’s audited consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021. The results of operations for the three and six months ended June 30, 2022 are not necessarily indicative of the results to be expected for the year ending December 31, 2022. The condensed consolidated financial statements include the accounts of the Company, its wholly-owned subsidiaries and variable interest entities (“VIE”) in which the Company is the primary beneficiary and entities in which the Company has a controlling interest. Investments in less than majority-owned companies in which the Company does not have a controlling interest, but does have significant influence, are accounted for as equity method investments. Investments in less than majority-owned companies in which the Company does not have the ability to exert significant influence over the operating and financial policies of the investee are accounted for using the cost method. All material intercompany transactions and accounts are eliminated in consolidation. For further information about the Company’s basis of presentation and consolidation or its significant accounting policies, refer to the consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021. Risks and Uncertainties There continue to be uncertainties regarding the current coronavirus ("COVID-19") pandemic, and the Company is closely monitoring the impact of the pandemic on all aspects of its business, including how it will impact its customers, employees, suppliers, vendors, business partners and distribution channels. While the pandemic did not materially affect the Company’s financial results and business operations for the three and six months ended June 30, 2022, the Company is unable to predict the impact that COVID-19 will have on its financial position and operating results due to numerous uncertainties. The Company will continue to assess the evolving impact of the COVID-19 pandemic and will make adjustments to its operations as necessary. Recently Issued Accounting Standards Recent accounting pronouncements adopted Standard Description Effect on the financial statements ASU 2021-04 Earnings Per Share (Topic 260), Debt— Modifications and Extinguishments (Subtopic 470-50), Compensation—Stock Compensation (Topic 718), and Derivatives and Hedging— Contracts in Entity’s Own Equity (Subtopic 815-40) The amendments in this Update provide guidance for a modification or an exchange of a freestanding equity-classified written call option that is not within the scope of another Topic. We adopted this standard on January 1, 2022. The Company evaluated these changes and concluded that they did not have any material impact on the Company’s consolidated financial position or results of operations upon adoption. Date of adoption: January 1, 2022. ASU 2021-05 Leases (Topic 842). Lessors—Certain Leases with Variable Lease Payments The amendments in this Update affect lessors with lease contracts that (1) have variable lease payments that do not depend on a reference index or a rate and (2) would have resulted in the recognition of a selling loss at lease commencement if classified as sales-type or direct financing. FASB amends lessor classification guidance to prevent selling losses on leases with variable payments. We adopted this standard on January 1, 2022. The Company evaluated these changes and concluded that they did not have any material impact on the Company’s consolidated financial position or results of operations upon adoption. Date of adoption: January 1, 2022. ASU 2021-08 Business Combinations (Topic 805). Accounting for Contract Assets and Contract Liabilities The amendments in this Update primarily address the accounting for contract assets and contract liabilities from revenue contracts with customers in a business combination. However, the amendments also apply to contract assets and contract liabilities from other contracts to which the provisions of Topic 606 apply, such as contract liabilities from the sale of nonfinancial assets within the scope of Subtopic 610-20, Other Income—Gains and Losses from the Derecognition of Nonfinancial Assets. We adopted this standard on January 1, 2022. The Company evaluated these changes and concluded that they did not have any material impact on the Company’s consolidated financial position or results of operations upon adoption. Date of adoption: January 1, 2022. Digital Experience Platform and Activation Solutions Sale On March 7, 2022, Synchronoss Technologies, Inc. and iQmetrix Global Ltd. (“iQmetrix ”), entered into an Asset Purchase Agreement, pursuant to which Synchronoss has agreed to sell its Digital Experience Platform and activation solutions (the “DXP Business”) to iQmetrix for up to a total purchase price of $14 million. The purchase price is payable as follows: (i) $7.5 million on the closing date of the Transaction, (ii) $0.5 million deposited into an escrow account on the Closing Date, (iii) $1 million paid twelve (12) months from the Closing Date, and (iv) $5 million that may be payable as an earn-out. This transaction closed on May 11, 2022. The Company received the $7.5 million cash payment on the transaction close date and recorded the $0.5 million and $1 million escrow payments into other current assets noting this consideration is not contingent on any further actions. The Company determined the fair value of the earn-out provision was $3.6 million of which $3.0 million was recorded as an other current asset and the remaining portion was recorded as non-current other asset. The book value of the divested intangible assets associated with the DXP Business was $2.3 million. For the goodwill allocation, the fair value of the core reporting unit was estimated using a combination of the income approach, which incorporates the use of the discounted cash flow method, and the market approach, which incorporates the use of earnings and revenue multiples based on market data. Based on the fair value of the core reporting unit and the aggregate consideration received in the transaction, the Company determined the attributable fair value of goodwill to the DXP Business was $7.6 million. The transaction resulted in a $2.6 million gain in the second quarter of 2022. Accounts Receivable Securitization Facility On June 23, 2022 (the “Closing Date”), the Company and certain of its subsidiaries (together with the Company, the “Company Group”) entered into a $15 million accounts receivable securitization facility (the “A/R Facility”) with Norddeutsche Landesbank Girozentrale. The A/R Facility transaction includes (i) Receivables Purchase Agreements (the “Receivables Purchase Agreements”) dated as of the Closing Date, among the Company, as initial servicer, SN Technologies, LLC, a wholly owned special purpose subsidiary of the Company (“SN Technologies”), as seller, Norddeutsche Landesbank Girozentrale, as administrative agent (the “Administrative Agent”), and the purchasers party thereto, the group agents party thereto and the originators party thereto; (ii) Purchase and Sale Agreements (the “Purchase and Sale Agreements”) dated as of the Closing Date, between the Company Group, as originators (the “Originators”), and SN Technologies, as purchaser; (iii) the Administration Agreement (the “Administration Agreement”) dated as of the Closing Date, between the Company, as servicer, and Finacity Corporation, as administrator; and (iv) the Performance Guaranty (the “Performance Guaranty”) dated as of the Closing Date made by the Company in favor of the Administrative Agent. Pursuant to the Purchase and Sale Agreements, the Originators will sell existing and future accounts receivable [and related assets] (the “Receivables”) to SN Technologies in exchange for cash and/or subordinated notes. The Originators and SN Technologies intend the transactions contemplated by the Purchase and Sale Agreements to be true sales to SN Technologies by the respective Originators. Pursuant to the Receivables Purchase Agreement, SN Technologies will in turn grant an undivided security interest to the Administrative Agent in the Receivables in exchange for a credit facility permitting borrowings of up to $15 million outstanding from time to time. Yield is payable to the Administrative Agent under the Receivables Purchase Agreements at a variable rate based on the Norddeutsche Landesbank Girozentrale’s Hanover funding rate plus a 2.35% margin. The Company pays a commitment fee shall equal 0.85% per annum on the average daily unused outstanding capital. Pursuant to the Performance Guaranty, the Company guarantees the performance of the Originators of their obligations under the Purchase and Sale Agreements. The Company has not agreed to guarantee any obligations of SN Technologies or the collection of any of the receivables and will not be responsible for any obligations to the extent the failure to perform such obligations by the Company or any Originators results from receivables being uncollectible on account of the insolvency, bankruptcy or lack of creditworthiness or other financial inability to pay of the related obligor. Unless earlier terminated or subsequently extended pursuant to the terms of the Receivables Purchase Agreement, the A/R Facility will expire on June 23, 2025. The foregoing description of the A/R Facility and the respective transactions contemplated thereby does not purport to be complete and is qualified in its entirety by reference to the full text of the Receivables Purchase Agreements, Purchase and Sale Agreements, Administration Agreement and Performance Guaranty, copies of which are filed as Exhibits 10.1, 10.2, 10.3 and 10.4, respectively, on Form 8-K filed with Securities and Exchange Commission on June 23, 2022. The Company has not drawn on the A/R Facility as of June 30, 2022. |
Revenue
Revenue | 6 Months Ended |
Jun. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue Disaggregation of revenue The Company disaggregates revenue from contracts with customers into the nature of the products and services and geographical regions. The Company’s geographic regions are the Americas, Europe, the Middle East and Africa (“EMEA”), and Asia Pacific (“APAC”). The majority of the Company’s revenue is from the TMT sector. Three Months Ended June 30, 2022 Three Months Ended June 30, 2021 Cloud Digital Messaging Total Cloud Digital Messaging Total Geography: Americas $ 41,843 $ 8,985 $ 2,309 $ 53,137 $ 37,071 $ 10,603 $ 11,265 $ 58,939 APAC 7 907 6,345 7,259 — 915 6,249 7,164 EMEA 1,627 545 2,668 4,840 1,820 613 2,996 5,429 Total $ 43,477 $ 10,437 $ 11,322 $ 65,236 $ 38,891 $ 12,131 $ 20,510 $ 71,532 Service Line: Professional Services $ 3,234 $ 1,380 $ 2,642 $ 7,256 $ 3,884 $ 2,118 $ 2,587 $ 8,589 Transaction Services 210 1,721 33 1,964 1,321 945 2 2,268 Subscription Services 40,033 6,438 8,037 54,508 33,686 8,546 17,921 60,153 License — 898 610 1,508 — 522 — 522 Total $ 43,477 $ 10,437 $ 11,322 $ 65,236 $ 38,891 $ 12,131 $ 20,510 $ 71,532 Six Months Ended June 30, 2022 Six Months Ended June 30, 2021 Cloud Digital Messaging Total Cloud Digital Messaging Total Geography: Americas $ 81,558 $ 19,440 $ 5,001 $ 105,999 $ 74,102 $ 21,843 $ 14,781 $ 110,726 APAC 63 1,666 13,161 14,890 — 2,043 12,949 14,992 EMEA 3,357 1,495 5,361 10,213 3,685 1,222 6,406 11,313 Total $ 84,978 $ 22,601 $ 23,523 $ 131,102 $ 77,787 $ 25,108 $ 34,136 $ 137,031 Service Line: Professional Services $ 6,588 $ 3,016 $ 5,783 $ 15,387 $ 7,809 $ 4,229 $ 5,198 $ 17,236 Transaction Services 546 2,749 56 3,351 3,296 3,213 3 6,512 Subscription Services 77,844 14,648 16,552 109,044 66,682 16,979 28,535 112,196 License — 2,188 1,132 3,320 — 687 400 1,087 Total $ 84,978 $ 22,601 $ 23,523 $ 131,102 $ 77,787 $ 25,108 $ 34,136 $ 137,031 Trade Accounts Receivable and Contract balances The Company classifies its right to consideration in exchange for deliverables as either a receivable or a contract asset. A receivable is a right to consideration that is unconditional (i.e. only the passage of time is required before payment is due). For example, the Company recognizes a receivable for revenues related to its time and materials and transaction or volume-based contracts. The Company presents such receivables in Trade accounts receivable, net in its Condensed Consolidated Statements of Financial Position at their net estimated realizable value. The Company maintains an allowance for credit losses to provide for the estimated amount of receivables that may not be collected. The allowance is based upon an assessment of customer creditworthiness, historical payment experience, the age of outstanding receivables and other economic indicators. A contract asset is a right to consideration that is conditional upon factors other than the passage of time. For example, the Company would record a contract asset if it records revenue on a professional services engagement but are not entitled to bill until the Company achieves specified milestones. Contract assets balance at June 30, 2022 is $15.5 million. Amounts collected in advance of services being provided are accounted for as contract liabilities, which are presented as deferred revenue on the accompanying Condensed Consolidated Balance Sheets and are realized with the associated revenue recognized under the contract. Nearly all of the Company's contract liabilities balance is related to services revenue, primarily subscription services contracts. The Company’s contract assets and liabilities are reported in a net position on a customer basis at the end of each reporting period. Significant changes in the contract liabilities balance (current and non-current) during the period are as follows: Contract Liabilities 1 Balance - January 1, 2022 $ 22,916 Revenue recognized in the period (130,691) Amounts billed but not recognized as revenue 127,008 Balance - June 30, 2022 $ 19,233 ________________________________ 1 Comprised of Deferred Revenue Transaction price allocated to the remaining performance obligations Topic 606 requires that the Company disclose the aggregate amount of transaction price that is allocated to performance obligations that have not yet been satisfied as of June 30, 2022. The Company has elected not to disclose transaction price allocated to remaining performance obligations for: 1. Contracts with an original duration of one year or less, including contracts that can be terminated for convenience without a substantive penalty; 2. Contracts for which the Company recognizes revenues based on the right to invoice for services performed; 3. Variable consideration allocated entirely to a wholly unsatisfied performance obligation or to a wholly unsatisfied promise to transfer a distinct good or service that forms part of a single performance obligation in accordance with Topic 606 Section 10-25-14(b), for which the criteria in Topic 606 Section 10-32-40 have been met. This applies to a limited number of situations where the Company is dependent upon data from a third party or where fees are highly variable. Many of the Company’s performance obligations meet one or more of these exemptions. Specifically, the Company has excluded the following from the Company’s remaining performance obligations, all of which will be resolved in the period in which amounts are known: • consideration for future transactions, above any contractual minimums • consideration for success-based transactions contingent on third party data • credits for failure to meet future service level requirements As of June 30, 2022, the aggregate amount of transaction price allocated to remaining performance obligations, other than those meeting the exclusion criteria above, was $156.9 million, of which approximately 91.5 percent is expected to be recognized as revenues within 2 years, and the remainder thereafter. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements In accordance with accounting principles generally accepted in the United States, fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A three-level hierarchy prioritizes the inputs used to measure fair value as follows: • Level 1 - Observable inputs - quoted prices in active markets for identical assets and liabilities; • Level 2 - Observable inputs other than the quoted prices in active markets for identical assets and liabilities includes quoted prices for similar instruments, quoted prices for identical or similar instruments in inactive markets, and amounts derived from valuation models where all significant inputs are observable in active markets; and • Level 3 - Unobservable inputs - includes amounts derived from valuation models where one or more significant inputs are unobservable and require the Company to develop relevant assumptions. The following is a summary of assets, liabilities and redeemable noncontrolling interests and their related classifications under the fair value hierarchy: June 30, 2022 Total (Level 1) (Level 2) (Level 3) Assets Cash and cash equivalents $ 25,512 $ 25,512 $ — $ — Total assets $ 25,512 $ 25,512 $ — $ — Temporary equity Redeemable noncontrolling interests 1 $ 12,500 $ — $ — $ 12,500 Total temporary equity $ 12,500 $ — $ — $ 12,500 December 31, 2021 Total (Level 1) (Level 2) (Level 3) Assets Cash and cash equivalents $ 31,504 $ 31,504 $ — $ — Total assets $ 31,504 $ 31,504 $ — $ — Temporary Equity Redeemable noncontrolling interests 1 $ 12,500 $ — $ — $ 12,500 Total temporary equity $ 12,500 $ — $ — $ 12,500 ________________________________ 1 Put arrangements held by the noncontrolling interests in certain of the Company’s joint venture. Redeemable Noncontrolling Interests The redeemable noncontrolling interests recorded at fair value are put arrangements held by the noncontrolling interests in certain of the Company’s joint ventures. The Company recognizes changes in the redemption value immediately as they occur and adjusts the carrying value of the noncontrolling interest to the greater of the estimated redemption value, which approximates fair value, at the end of each reporting period or the initial carrying amount. The fair value of the redeemable noncontrolling interests was estimated by applying an income approach using a discounted cash flow analysis. This fair value measurement is based on significant inputs that are not observable in the market and thus represents a Level 3 measurement. Significant changes in the underlying assumptions used to value the redeemable noncontrolling interests could significantly increase or decrease the fair value estimates recorded in the Condensed Consolidated Balance Sheets. The changes in fair value of the Company’s Level 3 redeemable noncontrolling interests during the six months ended June 30, 2022 were as follows: Redeemable noncontrolling interests Balance at December 31, 2021 $ 12,500 Fair value adjustment (190) Net loss attributable to redeemable noncontrolling interests 190 Balance at June 30, 2022 $ 12,500 |
Leases
Leases | 6 Months Ended |
Jun. 30, 2022 | |
Leases [Abstract] | |
Leases | Leases The Company has entered into contracts with third parties to lease a variety of assets, including certain real estate, equipment, automobiles and other assets. The Company’s leases frequently allow for lease payments that could vary based on factors such as inflation or the degree of utilization of the underlying asset. For example, certain of the Company’s real estate leases could require us to make payments that vary based on common area maintenance charges, insurance and other charges. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. The Company is party to certain sublease arrangements, primarily related to the Company’s real estate leases, where it acts as the lessee and intermediate lessor. The Company reflects finance leases as a component of Leases, non-current on the Condensed Consolidated Balance Sheet. The finance leases were not material for the period ended June 30, 2022. The following table presents information about the Company's Right of Use (ROU) assets and lease liabilities at June 30, 2022: ROU assets: Non-current operating lease ROU assets $ 22,791 Operating lease liabilities: Current operating lease liabilities 1 $ 6,099 Non-current operating lease liabilities 32,047 Total operating lease liabilities $ 38,146 ________________________________ 1 Amounts are included in Accrued Expenses on the Condensed Consolidated Balance Sheet. The following table presents information about lease expense and sublease income for the three and six months ended June 30, 2022: Three Months Ended June 30, 2022 Six Months Ended June 30, 2022 Operating lease cost 1 $ 1,972 $ 4,014 Other lease costs and income: Variable lease costs 1 736 1,171 Operating lease impairments 1 (268) 175 Sublease income 1 (713) (1,359) Total net lease cost $ 1,727 $ 4,001 ________________________________ 1 Amounts are included in Cost of revenues, Selling, general and administrative and/or Research and development based on the function that the underlying leased asset supports which are reflected in the Condensed Consolidated Statements of Operations. The following table provides the undiscounted amount of future cash flows included in our lease liabilities at June 30, 2022 for each of the five years subsequent to December 31, 2021 and thereafter, as well as a reconciliation of such undiscounted cash flows to our lease liabilities at June 30, 2022: Operating Leases 2022 $ 4,828 2023 8,035 2024 8,174 2025 8,021 2026 7,859 Thereafter 10,448 Total future lease payments 47,365 Less: amount representing interest (9,219) Present value of future lease payments (lease liability) $ 38,146 The following table provides the weighted-average remaining lease term and weighted-average discount rates for our leases as of June 30, 2022: Operating Leases: Weighted-average remaining lease term (years), weighted based on lease liability balances 5.67 Weighted-average discount rate (percentages), weighted based on the remaining balance of lease payments 7.9% The following table provides certain cash flow and supplemental noncash information related to our lease liabilities for the six months ended June 30, 2022: Operating Leases: Cash paid for amounts included in the measurement of lease liabilities $ 5,039 |
Investments in Affiliates and R
Investments in Affiliates and Related Transactions | 6 Months Ended |
Jun. 30, 2022 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investments in Affiliates and Related Transactions | Investments in Affiliates and Related Transactions Sequential Technology International, LLC In connection with the divestiture of the exception handling business of the Company in 2017, Synchronoss entered into a three-year Cloud Telephony and Support services agreement (“CTS Agreement”) to grant Sequential Technology International, LLC (“STIN”) access to certain Synchronoss software and private branch exchange systems to facilitate exception handling operations required to support STIN customers. The CTS agreement expired in the first quarter of 2020. At the time of the expiration, the Company entered into an Asset Purchase Agreement with STIN. As part of the agreement, the Company received $1.6 million in exchange for certain hardware and system assets for the cloud telephony and remaining support service business. During the second quarter of 2020, the Company entered into an agreement with STIN and AP Capital Holdings II, LLC (“APC”) to divest its remaining equity interest in STIN as well as settle its paid-in-kind purchase money note (“PIK note”) and certain amounts due as of December 31, 2019 in consideration for a $9.0 million secured promissory note (the “Note”), which includes contingent consideration of up to $16.0 million. The Note has an 8% interest rate and a 3-year stated term. As part of the arrangement, APC acquired a majority stake of STIN. Additionally, in the event of a sale of STIN by APC and STIN at a future date, the Company shall receive 5% of such sale proceeds, after reducing the sale proceeds by any outstanding amounts of the above Note, including any earned contingent consideration. The Company determined the fair value of the Note as of the transaction date to be approximately $4.8 million. The Company determined the fair value of the Note using a discounted cash flow analysis, which discounts the expected future cash flows of the asset to determine its fair value. The fair value measurement is based on significant inputs not observable in the market and thus represents a Level 3 measurement. No gain or loss was recognized as a result of the transaction. As of June 30, 2022 , the Company reassessed the fair value of the Note and there were no material changes. In accordance with the terms of the agreement, STIN has made the required payments to the Company as of June 30, 2022. |
Debt
Debt | 6 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Debt | Debt Offering of Senior Notes On June 30, 2021, the Company closed its underwritten public offering of $120.0 million aggregate principal amount of 8.375% senior notes due 2026 at a par value of $25.00 per senior note (the “Senior Notes”). The offering was conducted pursuant to an underwriting agreement (the “Notes Underwriting Agreement”) dated June 25, 2021, by and among the Company and B. Riley Securities, Inc., as representative of the several underwriters (the “Notes Underwriters”). At the closing, the Company issued $125.0 million aggregate principal amount of Senior Notes, inclusive of $5.0 million aggregate principal amount of Senior Notes issued pursuant to the full exercise of the Notes Underwriters’ option to purchase additional Senior Notes. The Notes Underwriting Agreement contains customary representations, warranties and covenants of the Company, customary conditions to closing, indemnification obligations of the Company and the Notes Underwriters, including for liabilities under the Securities Act, other obligations of the parties and termination provisions. On June 30, 2021, the Company entered into an indenture (the “Base Indenture”) and a supplemental indenture (the “First Supplemental Indenture” and, together with the Base Indenture, the “Indenture”) with The Bank of New York Mellon Trust Company National Association, as trustee (the “Trustee”), between the Company and the Trustee. The Indenture establishes the form and provides for the issuance of the Senior Notes. The Senior Notes are senior unsecured obligations of the Company and rank equally in right of payment with all of the Company’s existing and future senior unsecured and unsubordinated indebtedness. The Senior Notes are effectively subordinated in right of payment to all of the Company’s existing and future secured indebtedness to the extent of the value of the assets securing such indebtedness and structurally subordinated to all existing and future indebtedness of the Company’s subsidiaries, including trade payables. The Senior Notes bear interest at the rate of 8.375% per annum. Interest on the Senior Notes is payable quarterly in arrears on January 31, April 30, July 31 and October 31 of each year, commencing on July 31, 2021. The Senior Notes will mature on June 30, 2026, unless redeemed prior to maturity. The Company may, at its option, at any time and from time to time, redeem the Senior Notes for cash in whole or in part (i) on or after June 30, 2022 and prior to June 30, 2023, at a price equal to $25.75 per Senior Note, plus accrued and unpaid interest to, but excluding, the date of redemption, (ii) on or after June 30, 2023 and prior to June 30, 2024, at a price equal to $25.50 per Senior Note, plus accrued and unpaid interest to, but excluding, the date of redemption, (iii) on or after June 30, 2024 and prior to June 30, 2025, at a price equal to $25.25 per Senior Note, plus accrued and unpaid interest to, but excluding, the date of redemption, and (iv) on or after June 30, 2025 and prior to maturity, at a price equal to 100% of their principal amount, plus accrued and unpaid interest to, but excluding, the date of redemption. On and after any redemption date, interest will cease to accrue on the redeemed Senior Notes. The Indenture contains customary events of default and cure provisions. If an uncured default occurs and is continuing, the Trustee or the holders of at least 25% of the principal amount of the Senior Notes may declare the entire amount of the Senior Notes, together with accrued and unpaid interest, if any, to be immediately due and payable. In the case of an event of default involving the Company’s bankruptcy, insolvency or reorganization, the principal of, and accrued and unpaid interest on, the principal amount of the Senior Notes, together with accrued and unpaid interest, if any, will automatically, and without any declaration or other action on the part of the Trustee or the holders of the Senior Notes, become due and payable. On October 25, 2021, the Company entered into an At Market Issuance Sales Agreement (the “Sales Agreement”) between the Company and B. Riley Securities, Inc. (the “Agent”), a related party, pursuant to which the Company may offer and sell, from time to time, up to $18.0 million of the Company’s 8.375% Senior Notes due 2026. Sales of the additional Senior Notes pursuant to the Sales Agreement, if any, may be made in transactions that are deemed to be “at the market offerings” as defined in Rule 415 under the Securities Act of 1933, as amended (the “Securities Act”). Under the Sales Agreement, the Agent will be entitled to compensation of 2.0% of the gross proceeds of all notes sold through it as the Company’s agent. During the fourth quarter of 2021, the Company sold an additional $16.1 million aggregate principal amount of Senior Notes pursuant to the Sales Agreement. The additional Senior Notes sold have terms identical to the initial Senior Notes and are fungible and vote together with, the initial Senior Notes. The Senior Notes are listed and trade on The Nasdaq Global Market under the symbol “SNCRL.” The carrying amounts of the Company’s borrowings were as follows: Senior Notes June 30, 2022 December 31, 2021 8.375% Senior Notes due 2026 $ 141,077 $ 141,077 Unamortized discount and debt issuance cost 1 (7,251) (7,973) Carrying value of Senior Notes $ 133,826 $ 133,104 ________________________________ 1 Debt issuance costs are deferred and amortized into interest expense using the effective interest method. The total fair value of the outstanding Senior Notes was $107.4 million as of June 30, 2022. T he Company is in compliance with its debt covenants as of June 30, 2022. 2019 Revolving Credit Facility On October 4, 2019, the Company entered into a Credit Agreement with Citizens Bank, N.A., for a $10.0 million Revolving Credit Facility. Borrowings under the Revolving Credit Facility bore interest at a rate equal to, at the Company’s option, either (1) the arithmetic average of the LIBOR rate determined by reference to the costs of funds for U.S. dollar deposits for the interest period (one, three or six months (or 12 months if agreed to by all applicable Lenders)) as selected by the Company relevant to such borrowing plus the applicable margin, or (2) a base rate determined by reference to the greatest of the federal funds rate plus 0.5%, the prime commercial lending rate as determined by the Agent, and the daily LIBOR rate plus 1.0%, in each case plus an applicable margin and subject to a floor of 0.5%. On June 30, 2021, the Company paid off the outstanding balance and closed the Revolving Credit Facility. Interest expense The following table summarizes the Company’s interest expense: Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 2021 Non-Convertible Senior Notes due 2026: Amortization of debt issuance costs $ 343 $ — $ 678 $ — Interest on borrowings 2,954 — 5,908 — Amortization of debt discount 22 — 44 — 2019 Revolving Credit Facility: Amortization of debt issuance costs — 72 — 84 Interest on borrowings — 63 — 126 Other 24 9 38 29 Total $ 3,343 $ 144 $ 6,668 $ 239 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive (Loss) / Income | 6 Months Ended |
Jun. 30, 2022 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive (Loss) / Income | Accumulated Other Comprehensive (Loss) / Income The changes in accumulated other comprehensive (loss) income during the six months ended June 30, 2022 were as follows: Balance at December 31, 2021 Other comprehensive loss Tax effect Balance at Foreign currency $ (29,350) $ (15,316) $ — $ (44,666) Unrealized income (loss) on intercompany foreign currency transactions (3,635) 128 (48) (3,555) Unrealized holding losses on marketable debt securities — — — — Total $ (32,985) $ (15,188) $ (48) $ (48,221) |
Capital Structure
Capital Structure | 6 Months Ended |
Jun. 30, 2022 | |
Stockholders' Equity Note [Abstract] | |
Capital Structure | Capital Structure Common Stock Each holder of common stock is entitled to vote on all matters and is entitled to one vote for each share held. Dividends on common stock will be paid when, and if, declared by the Company’s Board of Directors. No dividends have ever been declared or paid by the Company. Common Stock Offering On June 29, 2021, the Company closed its underwritten public offering of common stock, par value $0.0001 per share. The offering was conducted pursuant to an underwriting agreement (the “Underwriting Agreement”) dated June 24, 2021, by and between the Company and B. Riley Securities, Inc., as representative of the several underwriters (the “Underwriters”) for net proceeds of $102.3 million. At the closing, the Company issued 42,307,692 shares of common stock, inclusive of 3,846,154 shares of common stock issued pursuant to the full exercise of the Underwriters’ option to purchase additional shares of common stock. The Company used the net proceeds for the redemption of the Series A Convertible Preferred Stock. Shelf Registration Statement On August 19, 2020, the Company filed a universal shelf registration statement with the SEC for the issuance of common stock, preferred stock, debt securities, guarantees of debt securities, warrants and units up to an aggregate amount of $250.0 million (“the 2020 Shelf Registration Statement”). On August 28, 2020, the 2020 Shelf Registration Statement was declared effectiv e by the SEC. As of June 30, 2022, except for the Common Stock offering and the issuance of Senior Notes, the Company has not raised additional capital using the 2020 Shelf Registration Statement. Preferred Stock The Company’s Board of Directors (the “Board”) is authorized to issue preferred shares and has the discretion to determine the rights, preferences, privileges and restrictions, including voting rights, dividend rights, conversion rights, redemption privileges and liquidation preferences of preferred stock. Series B Non-Convertible Preferred Stock On June 30, 2021, the Company closed a private placement of 75,000 shares of its Series B Perpetual Non-Convertible Preferred Stock, par value $0.0001 per share, with an initial liquidation preference of $1,000 per share (the “Series B Preferred Stock”), for net proceeds of $72.5 million (the “Series B Transaction”). The sale of the Series B Preferred Stock was pursuant to the Series B Preferred Stock Purchase Agreement, dated as of June 24, 2021 (the “Series B Purchase Agreement”), between the Company and B. Riley Principal Investments, LLC (“BRPI”). In connection with the closing of the Series B Transaction, the Company (i) filed a Certificate of Designation with the State of Delaware setting forth the rights, preferences, privileges, qualifications, restrictions and limitations on the Series B Preferred Stock (the “Series B Certificate”) and (ii) entered into an Investor Rights Agreement with B. Riley Financial, Inc. (“B. Riley Financial”) and BRPI setting forth certain governance and registration rights of B. Riley Financial with respect to the Company. Certificate of Designation of the Series B Preferred Stock The rights, preferences, privileges, qualifications, restrictions and limitations of the shares of Series B Preferred Stock are set forth in the Series B Certificate. Under the Series B Certificate, the holders of the Series B Preferred Stock are entitled to receive, on each share of Series B Preferred Stock on a quarterly basis, an amount equal to the dividend rate, as described in the following sentence, divided by four and multiplied by the then-applicable Liquidation Preference per share of Series B Preferred Stock (collectively, the “Preferred Dividends”). The dividend rate is (1) 9.5% per annum for the period commencing on June 30, 2021 and ending on and including December 31, 2021, (2) 13% per annum for the year commencing on January 1, 2022 and ending on and including December 31, 2022; and (3) 14% per annum for the year commencing on January 1, 2023 and thereafter. The Preferred Dividends will be due in cash on January 1, April 1, July 1 and October 1 of each year (each, a “Series B Dividend Payment Date”). The Company may choose to pay the Series B Preferred Dividends in cash or in additional shares of Series B Preferred Stock. In the event the Company does not declare and pay a dividend in cash on any Series B Dividend Payment Date, the unpaid amount of the Preferred Dividend will be added to the Liquidation Preference. As of June 30, 2022, the Liquidation Value and Redemption Value of the Series B Preferred Shares was $73.0 million. On and after the fifth anniversary of the date of issuance, holders of shares of Series B Preferred Stock will have the right to cause the Company to redeem each share of Series B Preferred Stock for cash in an amount equal to the sum of the current liquidation preference and any accrued dividends. Each share of Series B Preferred Stock will also be redeemable at the option of the holder upon the occurrence of a “Fundamental Change” at (i) par in the case of a payment in cash or (ii) 1.5 times par in the case of payment in shares of Common Stock (such shares being, “Registrable Securities”), subject to certain limitations on the amount of stock that could be issued to the holders of Series B Stock. In addition, the Company will be permitted to redeem outstanding shares of the Series B Preferred Stock at any time for the sum of the then-applicable Liquidation Preference and the accrued but unpaid dividends. Pursuant to the Series B Certificate, the Company will be required to use (i) the first $50.0 million of proceeds from certain transactions (i.e., disposition, sale of assets, tax refunds) received by the Company to redeem for cash, shares of the Series B Preferred Stock, on a pro rata basis among each holder of Series B Preferred Stock and (ii) the next $25.0 million of proceeds from certain transactions received by the Company may be used by the Company to buy back shares of Common Stock and to the extent, not used for such purpose by the Company, to redeem, for cash, shares of the Series B Preferred Stock, on a pro rata basis among each holder of the Series B Preferred Stock. The Company shall be required to obtain the prior written consent of the holders holding at least a majority of the outstanding shares of the Series B Preferred Stock before taking certain actions, including: (i) certain dividends, repayments and redemptions; (ii) any amendment to the Company’s certificate of incorporation that adversely affects the rights, preferences, privileges or voting powers of the Series B Preferred Stock; and (iii) issuances of stock ranking senior or equivalent to shares of the Series B Preferred Stock (including additional shares of the Series B Preferred Stock) in the priority of payment of dividends or in the distribution of assets upon any liquidation, dissolution or winding up of the Company. Other than with respect to the foregoing consent rights, the Series B Preferred Stock is non-voting stock. Investor Rights Agreement On June 30, 2021, the Company, B. Riley Financial and BRPI entered into an Investor Rights Agreement (the “Investor Rights Agreement”). Pursuant to the Investor Rights Agreement, for so long as affiliates of B. Riley Financial beneficially own at least 10% of the outstanding shares of common stock (unless such equity threshold percentage is not met due to dilution from equity issuances), B. Riley Financial is entitled to nominate one Class II director (the “B. Riley Nominee”) to the Company’s board of directors (the “Board”), who shall be an employee of B. Riley Financial or its affiliates and is approved by the Board, such approval not to be unreasonably withheld. For so long as affiliates of B. Riley Financial beneficially own 5% or more but less than 10% of the outstanding shares of common stock (unless such equity threshold percentage is not met due to dilution from equity issuances), B. Riley Financial is entitled to certain board observer rights. A summary of the Company’s Series B Perpetual Non-Convertible Preferred Stock balance at June 30, 2022 and changes during the six months ended June 30, 2022, are presented below: Series B Preferred Stock Shares Amount Balance at December 31, 2021 75 $ 72,505 Issuance of Series B preferred stock — — Issuance costs related to preferred stock — — Amortization of preferred stock issuance costs — 143 Issuance of preferred PIK dividend 3 2,438 Redemption of Series B preferred shares (7) (6,738) Balance at June 30, 2022 71 $ 68,348 On April 1, 2022 the Company paid in-kind the accrued Series B Perpetual Non-Convertible Preferred Stock dividend of $2.4 million. On April 18, 2022, the Company made a $2.5 million principal and interest payment to redeem 2,438 shares of Series B Preferred Stock. On May 10, 2022, the Company made an additional $4.4 million principal and interest payment to redeem 4,300 shares of Series B Preferred Stock. On July 1, 2022 the Company paid the accrued Series B Perpetual Non-Convertible Preferred Stock dividend of $2.3 million in form of cash. Series A Convertible Preferred Stock In accordance with the terms of the Share Purchase Agreement dated as of October 17, 2017 (the “PIPE Purchase Agreement”), with Silver Private Holdings I, LLC, an affiliate of Siris (“Silver”), on February 15, 2018, the Company issued to Silver 185,000 shares of its newly issued Series A Convertible Participating Perpetual Preferred Stock (the “Series A Preferred Stock”), par value $0.0001 per share, with an initial liquidation preference of $1,000 per share, in exchange for $97.7 million in cash and the transfer from Silver to the Company of the 5,994,667 shares of the Company’s common stock held by Silver (the “Preferred Transaction”). Redemption of Series A Preferred Stock The net proceeds from the common stock public offering, Senior Note offering and the Series B transaction was used in part to fully redeem all outstanding shares of the Company’s Series A Preferred Stock on June 30, 2021 (the “Redemption”). The Company redeemed in full all of the 268,917 outstanding shares of the Series A Preferred Stock for an aggregate Redemption Price of $278.7 million and all rights under the Investor Rights Agreement relating to the Series A Preferred Stock were terminated effective with the Redemption. No Series A Preferred Stock remain outstanding or authorized as of June 30, 2022. Registration Rights The Investor Rights Agreement entered into on June 30, 2021 provides that in the event Synchronoss issues Registrable Securities to the holders of Series B Preferred Stock, such holders will have certain demand and piggy-back registration rights with respect to such Registrable Securities. In addition, on June 30, 2021, in connection with the redemption of the Series A Preferred Stock, the Investor Rights Agreement between the Company and Silver terminated. Stock Plans At the annual meeting of stockholders the Company held on June 16, 2022, the stockholders of the Company approved and adopted the Certificate of Amendment of the Company’s restated certificate of incorporation to increase the total number of shares of authorized common stock from 100 million shares to 150 million shares. As of June 30, 2022, there were 12.7 million shares available for the grant or award under the Company’s 2015 Equity Incentive Plan and 0.5 million shares available for the grant or award under the Company’s 2017 New Hire Equity Incentive Plan. The Company’s performance cash awards granted to executives under the Long Term Incentive (“LTI”) Pla ns have been accounted for as liability awards, due to the Company’s intent and the ability to settle such awards in cash upon vesting and the Company has reflected such awards in accrued expenses. As of June 30, 2022, the liability for such awards is approximately $0.5 million. Stock-Based Compensation The following table summarizes stock-based compensation expense related to all of the Company’s stock awards included by operating expense categories, as follows: Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Cost of revenues $ 139 $ 379 $ 360 $ 857 Research and development 316 696 872 1,551 Selling, general and administrative 509 1,270 1,659 2,658 Total stock-based compensation expense $ 964 $ 2,345 $ 2,891 $ 5,066 The following table summarizes stock-based compensation expense related to all of the Company’s stock awards included by award type, as follows: Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Stock options $ 446 $ 893 $ 1,240 $ 1,848 Restricted stock awards 509 1,329 1,387 3,039 Performance Based Cash Units 9 123 264 179 Total stock-based compensation before taxes $ 964 $ 2,345 $ 2,891 $ 5,066 Tax benefit $ 190 $ 440 $ 567 $ 937 The total stock-based compensation cost related to unvested equity awards as of June 30, 2022 was approximately $8.1 million. The expense is expected to be recognized over a weighted-average period of approximately 2.0 years. The total stock-based compensation cost related to unvested performance based cash units as of June 30, 2022 was approximately $0.5 million. The expense is expected to be recognized over a weighted-average period of approximately 1.1 years. Stock Options The Company uses the Black-Scholes option pricing model for determining the estimated fair value for stock options. The weighted-average assumptions used in the Black-Scholes option pricing model are as follows: Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Expected stock price volatility 74.1 % 83.1 % 74.1 % 83.1 % Risk-free interest rate 3.2 % 0.6 % 3.2 % 0.6 % Expected life of options (in years) 4.13 4.25 4.13 4.24 Expected dividend yield 0.0 % 0.0 % 0.0 % 0.0 % Weighted-average fair value (PSV) of the options $ 0.73 $ 1.81 $ 0.73 $ 1.89 The following table summarizes information about stock options outstanding as of June 30, 2022: Options Number of Weighted-Average Weighted-Average Aggregate Outstanding at December 31, 2021 4,715 $ 6.53 Options Granted 1,198 1.26 Options Exercised — — Options Cancelled (532) 12.57 Outstanding at June 30, 2022 5,381 $ 4.76 5.25 $ — Vested and exercisable at June 30, 2022 2,036 $ 8.12 3.94 $ — The total intrinsic value of stock options exercisable was nil at June 30, 2022 and 2021, respectively. The total intrinsic value of stock options exercised was nil and $0.6 thousand during the six months ended June 30, 2022 and 2021, respectively. Awards of Restricted Stock and Performance Stock A summary of the Company’s unvested restricted stock at June 30, 2022, and changes during the six months ended June 30, 2022, is presented below: Unvested Restricted Stock Number of Weighted- Average Unvested at December 31, 2021 2,574 $ 3.57 Granted 979 1.41 Vested (718) 4.30 Forfeited (173) 3.41 Unvested at June 30, 2022 2,662 $ 2.56 Restricted stock awards are granted subject to other service conditions or service and performance conditions (“Performance-Based Awards”). Restricted stock and Performance-Based Awards are measured at the closing stock price at the date of grant and are recognized straight line over the requisite service period. Performance Based Cash Units Performance based cash units generally vest at the end of a three-year period based on service and achievement of certain performance objectives determined by the Company’s Board of Directors. A summary of the Company’s unvested performance-based cash units at June 30, 2022 and changes during the six months ended June 30, 2022, is presented below: Unvested Cash Units Number of Period End Fair Value Unvested at December 31, 2021 1,996 $ 2.44 Granted — — Granted adjustment 1 (73) — Vested — — Forfeited (91) — Unvested at June 30, 2022 1,832 $ 1.15 ___________________________ 1 Includes changes in the unvested units due to performance adjustments Performance based cash units are measured at the closing stock price at the reporting period end date and are recognized straight line over the requisite service period. The expense for the period will increase or decrease based on updated fair values of these awards at each reporting da te. Unvested units fluctuations are shown as adjustments to units granted in the table above. These fluctuations are based on the percentage achievement of the performance metrics at the end of each reporting period. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company recognized an income tax expense of approximately $0.6 million and an income tax benefit of approximately $0.4 million during the six months ended June 30, 2022 and 2021, respectively. The effective tax rate was approximately 10.3% for the six months ended June 30, 2022, which was lower than the U.S. federal statutory rate primarily due to pre-tax losses in jurisdictions where full valuation allowances have been recorded. Additionally, the Company recognized a discrete income tax benefit in the period associated with the release of certain reserves for uncertain tax benefits. The Company’s effective tax rate was approximately 2.4% for the six months ended June 30, 2021, which was lower than the U.S. federal statutory rate primarily due to pre-tax losses in jurisdictions where full valuation allowances have been recorded, pre-tax losses in jurisdictions which have a zero tax rate, and certain foreign jurisdictions projecting current income tax expense. The Company also recognized a discrete tax benefit associated with the release of certain reserves for uncertain tax benefits during the period. The Company continues to consider all available evidence, including historical profitability and projections of future taxable income together with new evidence, both positive and negative, that could affect the view of the future realization of deferred tax assets. As a result of the assessment, no change was recorded by the Company to the valuation allowance during the six months ended June 30, 2022. On March 11, 2021 the American Rescue Plan Act ("ARPA") was signed into law which is aimed at addressing the continuing economic and health impacts of the COVID-19 pandemic. This legislation relief, along with the previous governmental relief packages provide for numerous changes to current tax law. The ARPA does not have a material impact on the Company’s financial statements in the period ending June 30, 2022. During 2021 the Internal Revenue Service commenced an audit of certain of the Company’s prior year U.S. federal income tax filings, including the 2013 through 2020 tax years. The audit is currently ongoing and the while receipt of the associated refunds would materially improve its financial position, the Company does not believe that the results of this audit will have a material effect on its results of operations. During the period ended June 30, 2022, the Company received $4.3 million in federal tax refunds. There is no change to the Company’s position on the remaining tax refunds. |
Restructuring
Restructuring | 6 Months Ended |
Jun. 30, 2022 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | Restructuring The Company continues to execute certain restructurings to identify workforce optimization opportunities to better align the Company’s resources with its key strategic priorities. A summary of the Company’s restructuring accrual at June 30, 2022 and changes during the six months ended June 30, 2022, are presented below: Balance at December 31, 2021 Charges Payments Other Adjustments Balance at June 30, 2022 Employment termination costs $ 3,247 $ 1,704 $ (2,736) $ (87) $ 2,128 |
Earnings per Common Share (EPS)
Earnings per Common Share (EPS) | 6 Months Ended |
Jun. 30, 2022 | |
Earnings Per Share [Abstract] | |
Earnings per Common Share (EPS) | Earnings per Common Share (“EPS”) Basic EPS is computed based upon the weighted average number of common shares outstanding for the year. Diluted EPS is computed based upon the weighted average number of common shares outstanding for the year plus the dilutive effect of common stock equivalents using the treasury stock method and the average market price of the Company’s common stock for the year. The Company includes participating securities (Redeemable Convertible Preferred Stock - Participation with Dividends on Common Stock that contain preferred dividend) in the computation of EPS pursuant to the two-class method. The two-class method of computing earnings per share is an allocation method that calculates earnings per share for common stock and participating securities. During periods of net loss, no effect is given to the participating securities because they do not share in the losses of the Company. The following table provides a reconciliation of the numerator and denominator used in computing basic and diluted net income attributable to common stockholders per common share from operations. Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Numerator - Basic: Net income (loss) from operations $ 7,921 $ (2,420) $ 4,884 $ (14,786) Net (loss) income attributable to redeemable noncontrolling interests (75) (50) (190) 286 Preferred stock dividend (2,519) (21,476) (4,957) (32,006) Net income (loss) attributable to Synchronoss $ 5,327 $ (23,946) $ (263) $ (46,506) Numerator - Diluted: Net income (loss) from operations attributable to Synchronoss $ 5,327 $ (23,946) $ (263) $ (46,506) Net income (loss) attributable to Synchronoss $ 5,327 $ (23,946) $ (263) $ (46,506) Denominator: Weighted average common shares outstanding — basic 87,124 44,131 86,031 43,438 Dilutive effect of: Shares from assumed conversion of Performance Based Cash Units 1,832 — — — Options and unvested restricted shares 293 — — — Weighted average common shares outstanding — diluted 89,249 44,131 86,031 43,438 Earnings (loss) per share: Basic $ 0.06 $ (0.54) $ — $ (1.07) Diluted $ 0.06 $ (0.54) $ — $ (1.07) Anti-dilutive stock options excluded — — — — Unvested shares of restricted stock awards 2,662 2,586 2,662 2,586 |
Commitments, Contingencies and
Commitments, Contingencies and Other | 6 Months Ended |
Jun. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments, Contingencies and Other | Commitments, Contingencies and Other Non-cancelable agreements The Company has various non-cancelable arrangements such as services for hosting, support, and software that expire at various dates, with the latest expiration in 2025. Aggregate annual future minimum payments under non-cancelable agreements as of June 30, 2022 are as follows: Year Non-cancelable agreements 2022 $ 10,022 2023 16,315 2024 13,425 2025 9,740 Total $ 49,502 Legal Matters In the ordinary course of business, the Company is regularly subject to various claims, suits, regulatory inquiries and investigations. The Company records a liability for specific legal matters when it determines that the likelihood of an unfavorable outcome is probable, and the loss can be reasonably estimated. Management has also identified certain other legal matters where they believe an unfavorable outcome is not probable and, therefore, no reserve is established. Although management currently believes that resolving claims against the Company, including claims where an unfavorable outcome is reasonably possible, will not have a material impact on the Company’s business, financial position, results of operations, or cash flows, these matters are subject to inherent uncertainties and management’s view of these matters may change in the future. The Company also evaluates other contingent matters, including income and non-income tax contingencies, to assess the likelihood of an unfavorable outcome and estimated extent of potential loss. It is possible that an unfavorable outcome of one or more of these lawsuits or other contingencies could have a material impact on the liquidity, results of operations, or financial condition of the Company. In the third quarter of 2017, the SEC and Department of Justice initiated investigations in connection with the June 2017 Announcement and certain transactions that the Company restated in the third quarter of 2018. The Company has received subpoenas, produced documents, and provided additional information to the government in connection with those investigations. On June 22, 2021, the Securities and Exchange Commission (“SEC”) staff verbally notified the Company that the staff has made a preliminary determination to recommend that the SEC initiate an enforcement action against the Company. This is in connection with certain financial transactions that the Company effected in 2015 and 2016 and its disclosure of and accounting for such transactions, which the Company restated in the third quarter of 2018 in its restated annual and quarterly financial statements for 2015 and 2016. That restatement followed the Company’s announcement, on June 13, 2017 (the “June 2017 Announcement”), that certain of its prior financial statements would need to be restated. Certain individuals, including certain former members of the Company’s management team, received similar notifications. On June 7, 2022 the SEC approved the Offer of Settlement and filed an Order Instituting Cease-And-Desist Proceedings pursuant to Section 21C of the Securities Exchange Act of 1934, Making Findings, and Imposing a Cease-And-Desist Order (the “SEC Order”). Pursuant to the terms of the SEC Order, the Company consented to pay a civil penalty in the amount of $12.5 million in equal quarterly installments over two years and to cease and desist from committing or causing any violations of Sections 10(b), 13(a), 13(b)(2)(A) and 13(b)(2)(B) of the Exchange Act and the associated rules thereunder. The expense associated with this settlement of the SEC Order has previously been accrued in the Company’s financial statements. The SEC filed similar orders as to the SEC Order with respect to certain former members of the Company’s management team contemporaneously. Also on June 7, 2022, the SEC filed a civil action against two former members of the Company’s management team, alleging misconduct arising out of the restated transactions that took place in 2015 and 2016 investigated by the SEC in connection with the June 2017 Announcement. The Company may be required to indemnify the former members of management in that action. Due to the |
Additional Financial Informatio
Additional Financial Information | 6 Months Ended |
Jun. 30, 2022 | |
Other Income and Expenses [Abstract] | |
Additional Financial Information | Additional Financial Information Other Income (expense), net The following table sets forth the components of Other Income (expense), net included in the Condensed Consolidated Statements of Operations: Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 FX gains (losses) 1 $ 3,896 $ 969 $ 5,614 $ (2,304) Government refunds 93 5 93 5 Income from sale of intangible assets 2 — 550 — 550 Other 2 76 52 62 (71) Total $ 4,065 $ 1,576 $ 5,769 $ (1,820) ________________________________ 1 Fair value of foreign exchange gains and losses 2 Represents an aggregate of individually immaterial transactions |
Basis of Presentation and Con_2
Basis of Presentation and Consolidation (Policies) | 6 Months Ended |
Jun. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Consolidation | Basis of Presentation and Consolidation The accompanying interim unaudited condensed consolidated financial statements have been prepared by Synchronoss and in the opinion of management, include all adjustments necessary for a fair presentation of the Company’s financial position, results of operations and cash flows for the interim periods. They do not include all of the information and footnotes required by U.S. generally accepted accounting principles (“GAAP”) for complete financial statements and should be read in conjunction with the Company’s audited consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021. The results of operations for the three and six months ended June 30, 2022 are not necessarily indicative of the results to be expected for the year ending December 31, 2022. |
Risks and Uncertainties | Risks and Uncertainties There continue to be uncertainties regarding the current coronavirus ("COVID-19") pandemic, and the Company is closely monitoring the impact of the pandemic on all aspects of its business, including how it will impact its customers, employees, suppliers, vendors, business partners and distribution channels. While the pandemic did not materially affect the Company’s financial results and business operations for the three and six months ended June 30, 2022, the Company is unable to predict the impact that COVID-19 will have on its financial position and operating results due to numerous uncertainties. The Company will continue to assess the evolving impact of the COVID-19 pandemic and will make adjustments to its operations as necessary. |
Recently Issued Accounting Standards | Recently Issued Accounting Standards Recent accounting pronouncements adopted Standard Description Effect on the financial statements ASU 2021-04 Earnings Per Share (Topic 260), Debt— Modifications and Extinguishments (Subtopic 470-50), Compensation—Stock Compensation (Topic 718), and Derivatives and Hedging— Contracts in Entity’s Own Equity (Subtopic 815-40) The amendments in this Update provide guidance for a modification or an exchange of a freestanding equity-classified written call option that is not within the scope of another Topic. We adopted this standard on January 1, 2022. The Company evaluated these changes and concluded that they did not have any material impact on the Company’s consolidated financial position or results of operations upon adoption. Date of adoption: January 1, 2022. ASU 2021-05 Leases (Topic 842). Lessors—Certain Leases with Variable Lease Payments The amendments in this Update affect lessors with lease contracts that (1) have variable lease payments that do not depend on a reference index or a rate and (2) would have resulted in the recognition of a selling loss at lease commencement if classified as sales-type or direct financing. FASB amends lessor classification guidance to prevent selling losses on leases with variable payments. We adopted this standard on January 1, 2022. The Company evaluated these changes and concluded that they did not have any material impact on the Company’s consolidated financial position or results of operations upon adoption. Date of adoption: January 1, 2022. |
Fair Value Measurements | In accordance with accounting principles generally accepted in the United States, fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A three-level hierarchy prioritizes the inputs used to measure fair value as follows: • Level 1 - Observable inputs - quoted prices in active markets for identical assets and liabilities; • Level 2 - Observable inputs other than the quoted prices in active markets for identical assets and liabilities includes quoted prices for similar instruments, quoted prices for identical or similar instruments in inactive markets, and amounts derived from valuation models where all significant inputs are observable in active markets; and • Level 3 - Unobservable inputs - includes amounts derived from valuation models where one or more significant inputs are unobservable and require the Company to develop relevant assumptions. |
Basis of Presentation and Con_3
Basis of Presentation and Consolidation (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Recently Issued Accounting Standards | Recent accounting pronouncements adopted Standard Description Effect on the financial statements ASU 2021-04 Earnings Per Share (Topic 260), Debt— Modifications and Extinguishments (Subtopic 470-50), Compensation—Stock Compensation (Topic 718), and Derivatives and Hedging— Contracts in Entity’s Own Equity (Subtopic 815-40) The amendments in this Update provide guidance for a modification or an exchange of a freestanding equity-classified written call option that is not within the scope of another Topic. We adopted this standard on January 1, 2022. The Company evaluated these changes and concluded that they did not have any material impact on the Company’s consolidated financial position or results of operations upon adoption. Date of adoption: January 1, 2022. ASU 2021-05 Leases (Topic 842). Lessors—Certain Leases with Variable Lease Payments The amendments in this Update affect lessors with lease contracts that (1) have variable lease payments that do not depend on a reference index or a rate and (2) would have resulted in the recognition of a selling loss at lease commencement if classified as sales-type or direct financing. FASB amends lessor classification guidance to prevent selling losses on leases with variable payments. We adopted this standard on January 1, 2022. The Company evaluated these changes and concluded that they did not have any material impact on the Company’s consolidated financial position or results of operations upon adoption. Date of adoption: January 1, 2022. ASU 2021-08 Business Combinations (Topic 805). Accounting for Contract Assets and Contract Liabilities The amendments in this Update primarily address the accounting for contract assets and contract liabilities from revenue contracts with customers in a business combination. However, the amendments also apply to contract assets and contract liabilities from other contracts to which the provisions of Topic 606 apply, such as contract liabilities from the sale of nonfinancial assets within the scope of Subtopic 610-20, Other Income—Gains and Losses from the Derecognition of Nonfinancial Assets. We adopted this standard on January 1, 2022. The Company evaluated these changes and concluded that they did not have any material impact on the Company’s consolidated financial position or results of operations upon adoption. Date of adoption: January 1, 2022. |
Revenue (Tables)
Revenue (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Revenue | Three Months Ended June 30, 2022 Three Months Ended June 30, 2021 Cloud Digital Messaging Total Cloud Digital Messaging Total Geography: Americas $ 41,843 $ 8,985 $ 2,309 $ 53,137 $ 37,071 $ 10,603 $ 11,265 $ 58,939 APAC 7 907 6,345 7,259 — 915 6,249 7,164 EMEA 1,627 545 2,668 4,840 1,820 613 2,996 5,429 Total $ 43,477 $ 10,437 $ 11,322 $ 65,236 $ 38,891 $ 12,131 $ 20,510 $ 71,532 Service Line: Professional Services $ 3,234 $ 1,380 $ 2,642 $ 7,256 $ 3,884 $ 2,118 $ 2,587 $ 8,589 Transaction Services 210 1,721 33 1,964 1,321 945 2 2,268 Subscription Services 40,033 6,438 8,037 54,508 33,686 8,546 17,921 60,153 License — 898 610 1,508 — 522 — 522 Total $ 43,477 $ 10,437 $ 11,322 $ 65,236 $ 38,891 $ 12,131 $ 20,510 $ 71,532 Six Months Ended June 30, 2022 Six Months Ended June 30, 2021 Cloud Digital Messaging Total Cloud Digital Messaging Total Geography: Americas $ 81,558 $ 19,440 $ 5,001 $ 105,999 $ 74,102 $ 21,843 $ 14,781 $ 110,726 APAC 63 1,666 13,161 14,890 — 2,043 12,949 14,992 EMEA 3,357 1,495 5,361 10,213 3,685 1,222 6,406 11,313 Total $ 84,978 $ 22,601 $ 23,523 $ 131,102 $ 77,787 $ 25,108 $ 34,136 $ 137,031 Service Line: Professional Services $ 6,588 $ 3,016 $ 5,783 $ 15,387 $ 7,809 $ 4,229 $ 5,198 $ 17,236 Transaction Services 546 2,749 56 3,351 3,296 3,213 3 6,512 Subscription Services 77,844 14,648 16,552 109,044 66,682 16,979 28,535 112,196 License — 2,188 1,132 3,320 — 687 400 1,087 Total $ 84,978 $ 22,601 $ 23,523 $ 131,102 $ 77,787 $ 25,108 $ 34,136 $ 137,031 |
Schedule of Significant Changes in the Contract Liabilities Balance | Significant changes in the contract liabilities balance (current and non-current) during the period are as follows: Contract Liabilities 1 Balance - January 1, 2022 $ 22,916 Revenue recognized in the period (130,691) Amounts billed but not recognized as revenue 127,008 Balance - June 30, 2022 $ 19,233 ________________________________ 1 Comprised of Deferred Revenue |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets and Liabilities Held and their Related Classifications Under the Fair Value Hierarchy | The following is a summary of assets, liabilities and redeemable noncontrolling interests and their related classifications under the fair value hierarchy: June 30, 2022 Total (Level 1) (Level 2) (Level 3) Assets Cash and cash equivalents $ 25,512 $ 25,512 $ — $ — Total assets $ 25,512 $ 25,512 $ — $ — Temporary equity Redeemable noncontrolling interests 1 $ 12,500 $ — $ — $ 12,500 Total temporary equity $ 12,500 $ — $ — $ 12,500 December 31, 2021 Total (Level 1) (Level 2) (Level 3) Assets Cash and cash equivalents $ 31,504 $ 31,504 $ — $ — Total assets $ 31,504 $ 31,504 $ — $ — Temporary Equity Redeemable noncontrolling interests 1 $ 12,500 $ — $ — $ 12,500 Total temporary equity $ 12,500 $ — $ — $ 12,500 ________________________________ 1 Put arrangements held by the noncontrolling interests in certain of the Company’s joint venture. |
Schedule of Changes in Fair Value of Level 3 | The changes in fair value of the Company’s Level 3 redeemable noncontrolling interests during the six months ended June 30, 2022 were as follows: Redeemable noncontrolling interests Balance at December 31, 2021 $ 12,500 Fair value adjustment (190) Net loss attributable to redeemable noncontrolling interests 190 Balance at June 30, 2022 $ 12,500 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Leases [Abstract] | |
Schedule of Operating Assets and Liabilities | The following table presents information about the Company's Right of Use (ROU) assets and lease liabilities at June 30, 2022: ROU assets: Non-current operating lease ROU assets $ 22,791 Operating lease liabilities: Current operating lease liabilities 1 $ 6,099 Non-current operating lease liabilities 32,047 Total operating lease liabilities $ 38,146 ________________________________ 1 Amounts are included in Accrued Expenses on the Condensed Consolidated Balance Sheet. |
Schedule of Components of Lease Expense and Weighted Average Lease Term and Rates | The following table presents information about lease expense and sublease income for the three and six months ended June 30, 2022: Three Months Ended June 30, 2022 Six Months Ended June 30, 2022 Operating lease cost 1 $ 1,972 $ 4,014 Other lease costs and income: Variable lease costs 1 736 1,171 Operating lease impairments 1 (268) 175 Sublease income 1 (713) (1,359) Total net lease cost $ 1,727 $ 4,001 ________________________________ 1 Amounts are included in Cost of revenues, Selling, general and administrative and/or Research and development based on the function that the underlying leased asset supports which are reflected in the Condensed Consolidated Statements of Operations. The following table provides the weighted-average remaining lease term and weighted-average discount rates for our leases as of June 30, 2022: Operating Leases: Weighted-average remaining lease term (years), weighted based on lease liability balances 5.67 Weighted-average discount rate (percentages), weighted based on the remaining balance of lease payments 7.9% The following table provides certain cash flow and supplemental noncash information related to our lease liabilities for the six months ended June 30, 2022: Operating Leases: Cash paid for amounts included in the measurement of lease liabilities $ 5,039 |
Schedule of Maturities of Operating Lease Liabilities | The following table provides the undiscounted amount of future cash flows included in our lease liabilities at June 30, 2022 for each of the five years subsequent to December 31, 2021 and thereafter, as well as a reconciliation of such undiscounted cash flows to our lease liabilities at June 30, 2022: Operating Leases 2022 $ 4,828 2023 8,035 2024 8,174 2025 8,021 2026 7,859 Thereafter 10,448 Total future lease payments 47,365 Less: amount representing interest (9,219) Present value of future lease payments (lease liability) $ 38,146 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Carrying Amounts | The carrying amounts of the Company’s borrowings were as follows: Senior Notes June 30, 2022 December 31, 2021 8.375% Senior Notes due 2026 $ 141,077 $ 141,077 Unamortized discount and debt issuance cost 1 (7,251) (7,973) Carrying value of Senior Notes $ 133,826 $ 133,104 ________________________________ 1 Debt issuance costs are deferred and amortized into interest expense using the effective interest method. |
Schedule of Interest Expense | The following table summarizes the Company’s interest expense: Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 2021 Non-Convertible Senior Notes due 2026: Amortization of debt issuance costs $ 343 $ — $ 678 $ — Interest on borrowings 2,954 — 5,908 — Amortization of debt discount 22 — 44 — 2019 Revolving Credit Facility: Amortization of debt issuance costs — 72 — 84 Interest on borrowings — 63 — 126 Other 24 9 38 29 Total $ 3,343 $ 144 $ 6,668 $ 239 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive (Loss) / Income (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of Changes in Accumulated Other Comprehensive Income (Loss) | The changes in accumulated other comprehensive (loss) income during the six months ended June 30, 2022 were as follows: Balance at December 31, 2021 Other comprehensive loss Tax effect Balance at Foreign currency $ (29,350) $ (15,316) $ — $ (44,666) Unrealized income (loss) on intercompany foreign currency transactions (3,635) 128 (48) (3,555) Unrealized holding losses on marketable debt securities — — — — Total $ (32,985) $ (15,188) $ (48) $ (48,221) |
Capital Structure (Tables)
Capital Structure (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Stockholder's Equity | |
Schedule of Series A Preferred Stock | A summary of the Company’s Series B Perpetual Non-Convertible Preferred Stock balance at June 30, 2022 and changes during the six months ended June 30, 2022, are presented below: Series B Preferred Stock Shares Amount Balance at December 31, 2021 75 $ 72,505 Issuance of Series B preferred stock — — Issuance costs related to preferred stock — — Amortization of preferred stock issuance costs — 143 Issuance of preferred PIK dividend 3 2,438 Redemption of Series B preferred shares (7) (6,738) Balance at June 30, 2022 71 $ 68,348 |
Schedule of Stock-based Compensation | The following table summarizes stock-based compensation expense related to all of the Company’s stock awards included by operating expense categories, as follows: Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Cost of revenues $ 139 $ 379 $ 360 $ 857 Research and development 316 696 872 1,551 Selling, general and administrative 509 1,270 1,659 2,658 Total stock-based compensation expense $ 964 $ 2,345 $ 2,891 $ 5,066 The following table summarizes stock-based compensation expense related to all of the Company’s stock awards included by award type, as follows: Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Stock options $ 446 $ 893 $ 1,240 $ 1,848 Restricted stock awards 509 1,329 1,387 3,039 Performance Based Cash Units 9 123 264 179 Total stock-based compensation before taxes $ 964 $ 2,345 $ 2,891 $ 5,066 Tax benefit $ 190 $ 440 $ 567 $ 937 |
Schedule of Fair Value Assumptions | The weighted-average assumptions used in the Black-Scholes option pricing model are as follows: Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Expected stock price volatility 74.1 % 83.1 % 74.1 % 83.1 % Risk-free interest rate 3.2 % 0.6 % 3.2 % 0.6 % Expected life of options (in years) 4.13 4.25 4.13 4.24 Expected dividend yield 0.0 % 0.0 % 0.0 % 0.0 % Weighted-average fair value (PSV) of the options $ 0.73 $ 1.81 $ 0.73 $ 1.89 |
Schedule of Information About Stock Options Outstanding | The following table summarizes information about stock options outstanding as of June 30, 2022: Options Number of Weighted-Average Weighted-Average Aggregate Outstanding at December 31, 2021 4,715 $ 6.53 Options Granted 1,198 1.26 Options Exercised — — Options Cancelled (532) 12.57 Outstanding at June 30, 2022 5,381 $ 4.76 5.25 $ — Vested and exercisable at June 30, 2022 2,036 $ 8.12 3.94 $ — |
Restricted stock awards | |
Stockholder's Equity | |
Summary of Unvested Restricted Stock and Performance Shares Activity | A summary of the Company’s unvested restricted stock at June 30, 2022, and changes during the six months ended June 30, 2022, is presented below: Unvested Restricted Stock Number of Weighted- Average Unvested at December 31, 2021 2,574 $ 3.57 Granted 979 1.41 Vested (718) 4.30 Forfeited (173) 3.41 Unvested at June 30, 2022 2,662 $ 2.56 |
Performance based cash units | |
Stockholder's Equity | |
Summary of Unvested Restricted Stock and Performance Shares Activity | A summary of the Company’s unvested performance-based cash units at June 30, 2022 and changes during the six months ended June 30, 2022, is presented below: Unvested Cash Units Number of Period End Fair Value Unvested at December 31, 2021 1,996 $ 2.44 Granted — — Granted adjustment 1 (73) — Vested — — Forfeited (91) — Unvested at June 30, 2022 1,832 $ 1.15 ___________________________ 1 Includes changes in the unvested units due to performance adjustments |
Restructuring (Tables)
Restructuring (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Restructuring and Related Activities [Abstract] | |
Schedule of the Restructuring Accrual and Changes | A summary of the Company’s restructuring accrual at June 30, 2022 and changes during the six months ended June 30, 2022, are presented below: Balance at December 31, 2021 Charges Payments Other Adjustments Balance at June 30, 2022 Employment termination costs $ 3,247 $ 1,704 $ (2,736) $ (87) $ 2,128 |
Earnings per Common Share (EP_2
Earnings per Common Share (EPS) (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Reconciliation of the Numerator and Denominator Used in Computing Basic and Diluted Net Income Attributable to Common Stockholders Per Common Share | The following table provides a reconciliation of the numerator and denominator used in computing basic and diluted net income attributable to common stockholders per common share from operations. Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Numerator - Basic: Net income (loss) from operations $ 7,921 $ (2,420) $ 4,884 $ (14,786) Net (loss) income attributable to redeemable noncontrolling interests (75) (50) (190) 286 Preferred stock dividend (2,519) (21,476) (4,957) (32,006) Net income (loss) attributable to Synchronoss $ 5,327 $ (23,946) $ (263) $ (46,506) Numerator - Diluted: Net income (loss) from operations attributable to Synchronoss $ 5,327 $ (23,946) $ (263) $ (46,506) Net income (loss) attributable to Synchronoss $ 5,327 $ (23,946) $ (263) $ (46,506) Denominator: Weighted average common shares outstanding — basic 87,124 44,131 86,031 43,438 Dilutive effect of: Shares from assumed conversion of Performance Based Cash Units 1,832 — — — Options and unvested restricted shares 293 — — — Weighted average common shares outstanding — diluted 89,249 44,131 86,031 43,438 Earnings (loss) per share: Basic $ 0.06 $ (0.54) $ — $ (1.07) Diluted $ 0.06 $ (0.54) $ — $ (1.07) Anti-dilutive stock options excluded — — — — Unvested shares of restricted stock awards 2,662 2,586 2,662 2,586 |
Commitments, Contingencies an_2
Commitments, Contingencies and Other (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contractual Obligation, Fiscal Year Maturity | Aggregate annual future minimum payments under non-cancelable agreements as of June 30, 2022 are as follows: Year Non-cancelable agreements 2022 $ 10,022 2023 16,315 2024 13,425 2025 9,740 Total $ 49,502 |
Additional Financial Informat_2
Additional Financial Information (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Other Income and Expenses [Abstract] | |
Schedule of Components of Other Income (expense), Net | The following table sets forth the components of Other Income (expense), net included in the Condensed Consolidated Statements of Operations: Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 FX gains (losses) 1 $ 3,896 $ 969 $ 5,614 $ (2,304) Government refunds 93 5 93 5 Income from sale of intangible assets 2 — 550 — 550 Other 2 76 52 62 (71) Total $ 4,065 $ 1,576 $ 5,769 $ (1,820) ________________________________ 1 Fair value of foreign exchange gains and losses 2 Represents an aggregate of individually immaterial transactions |
Basis of Presentation and Con_4
Basis of Presentation and Consolidation (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||||
Jun. 23, 2022 | May 11, 2022 | Mar. 07, 2022 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Proceeds from the sale of DXP & Activations Solutions | $ 7,500,000 | $ 0 | |||||
Gain on divestiture | $ 2,622,000 | $ 0 | 2,622,000 | $ 0 | |||
Accounts receivable securitization facility | $ 15,000,000 | ||||||
Borrowing capacity | $ 15,000,000 | ||||||
Commitment fee percentage | 0.85% | ||||||
A/R facility balance | 0 | $ 0 | |||||
Hanover Rate | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Basis spread on variable rate | 2.35% | ||||||
DXP Business | Held-for-sale | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Total purchase price | $ 14,000,000 | ||||||
Amount to be received on the closing date | $ 7,500,000 | ||||||
Escrow deposit | 500,000 | ||||||
Disbursement to be received 12 months from closing date | 1,000,000 | ||||||
Earn-out | $ 5,000,000 | ||||||
DXP Business | Disposed of by sale | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Escrow deposit | 500,000 | ||||||
Proceeds from the sale of DXP & Activations Solutions | 7,500,000 | ||||||
Additional escrow deposit | 1,000,000 | ||||||
Fair value of earn-out provision | 3,600,000 | ||||||
Divested intangible assets book value | 2,300,000 | ||||||
Fair value of goodwill | 7,600,000 | ||||||
Gain on divestiture | $ 2,600,000 | ||||||
DXP Business | Disposed of by sale | Other Current Assets | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Fair value of earn-out provision | $ 3,000,000 |
Revenue - Disaggregation of Rev
Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Disaggregation of Revenue [Line Items] | ||||
Net revenues | $ 65,236 | $ 71,532 | $ 131,102 | $ 137,031 |
Professional Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 7,256 | 8,589 | 15,387 | 17,236 |
Transaction Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 1,964 | 2,268 | 3,351 | 6,512 |
Subscription Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 54,508 | 60,153 | 109,044 | 112,196 |
License | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 1,508 | 522 | 3,320 | 1,087 |
Americas | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 53,137 | 58,939 | 105,999 | 110,726 |
APAC | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 7,259 | 7,164 | 14,890 | 14,992 |
EMEA | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 4,840 | 5,429 | 10,213 | 11,313 |
Cloud | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 43,477 | 38,891 | 84,978 | 77,787 |
Cloud | Professional Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 3,234 | 3,884 | 6,588 | 7,809 |
Cloud | Transaction Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 210 | 1,321 | 546 | 3,296 |
Cloud | Subscription Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 40,033 | 33,686 | 77,844 | 66,682 |
Cloud | License | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 0 | 0 | 0 | 0 |
Cloud | Americas | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 41,843 | 37,071 | 81,558 | 74,102 |
Cloud | APAC | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 7 | 0 | 63 | 0 |
Cloud | EMEA | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 1,627 | 1,820 | 3,357 | 3,685 |
Digital | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 10,437 | 12,131 | 22,601 | 25,108 |
Digital | Professional Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 1,380 | 2,118 | 3,016 | 4,229 |
Digital | Transaction Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 1,721 | 945 | 2,749 | 3,213 |
Digital | Subscription Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 6,438 | 8,546 | 14,648 | 16,979 |
Digital | License | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 898 | 522 | 2,188 | 687 |
Digital | Americas | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 8,985 | 10,603 | 19,440 | 21,843 |
Digital | APAC | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 907 | 915 | 1,666 | 2,043 |
Digital | EMEA | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 545 | 613 | 1,495 | 1,222 |
Messaging | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 11,322 | 20,510 | 23,523 | 34,136 |
Messaging | Professional Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 2,642 | 2,587 | 5,783 | 5,198 |
Messaging | Transaction Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 33 | 2 | 56 | 3 |
Messaging | Subscription Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 8,037 | 17,921 | 16,552 | 28,535 |
Messaging | License | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 610 | 0 | 1,132 | 400 |
Messaging | Americas | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 2,309 | 11,265 | 5,001 | 14,781 |
Messaging | APAC | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 6,345 | 6,249 | 13,161 | 12,949 |
Messaging | EMEA | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | $ 2,668 | $ 2,996 | $ 5,361 | $ 6,406 |
Revenue - Contract Assets and L
Revenue - Contract Assets and Liabilities (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2022 USD ($) | |
Revenue from Contract with Customer [Abstract] | |
Contract asset, balance | $ 15,500 |
Changes In Contract Liabilities [Roll Forward] | |
Balance - January 1, 2022 | 22,916 |
Revenue recognized in the period | (130,691) |
Amounts billed but not recognized as revenue | 127,008 |
Balance - June 30, 2022 | $ 19,233 |
Revenue - Remaining Performance
Revenue - Remaining Performance Obligations (Details) $ in Millions | Jun. 30, 2022 USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 156.9 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-07-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation, percent | 91.50% |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 2 years |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Held and their Related Classifications Under the Fair Value Hierarchy (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Assets | ||
Cash and cash equivalents | $ 25,512 | $ 31,504 |
Total assets | 25,512 | 31,504 |
Temporary Equity | ||
Redeemable noncontrolling interests | 12,500 | 12,500 |
Total temporary equity | 12,500 | 12,500 |
(Level 1) | ||
Assets | ||
Cash and cash equivalents | 25,512 | 31,504 |
Total assets | 25,512 | 31,504 |
Temporary Equity | ||
Redeemable noncontrolling interests | 0 | 0 |
Total temporary equity | 0 | 0 |
(Level 2) | ||
Assets | ||
Cash and cash equivalents | 0 | 0 |
Total assets | 0 | 0 |
Temporary Equity | ||
Redeemable noncontrolling interests | 0 | 0 |
Total temporary equity | 0 | 0 |
(Level 3) | ||
Assets | ||
Cash and cash equivalents | 0 | 0 |
Total assets | 0 | 0 |
Temporary Equity | ||
Redeemable noncontrolling interests | 12,500 | 12,500 |
Total temporary equity | $ 12,500 | $ 12,500 |
Fair Value Measurements - Level
Fair Value Measurements - Level 3 Redeemable Noncontrolling Interests (Details) - Redeemable Noncontrolling Interests $ in Thousands | 6 Months Ended |
Jun. 30, 2022 USD ($) | |
Changes in fair value of the Company’s Level 3 redeemable noncontrolling interests | |
Balance at December 31, 2021 | $ 12,500 |
Fair value adjustment | (190) |
Net loss attributable to redeemable noncontrolling interests | 190 |
Balance at June 30, 2022 | $ 12,500 |
Leases - ROU Assets and Lease L
Leases - ROU Assets and Lease Liabilities - Operating Assets and Liabilities (Details) $ in Thousands | Jun. 30, 2022 USD ($) |
ROU assets: | |
Non-current operating lease ROU assets | $ 22,791 |
Operating lease liabilities: | |
Current operating lease liabilities | 6,099 |
Non-current operating lease liabilities | 32,047 |
Total operating lease liabilities | $ 38,146 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Accrued expenses |
Leases - Components of Lease Ex
Leases - Components of Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2022 | Jun. 30, 2021 | |
Leases [Abstract] | |||
Operating lease cost | $ 1,972 | $ 4,014 | |
Other lease costs and income: | |||
Variable lease costs | 736 | 1,171 | |
Operating lease impairments | (268) | 175 | |
Sublease income | (713) | (1,359) | |
Total net lease cost | $ 1,727 | 4,001 | |
ROU asset impairment | $ 175 | $ 1,205 |
Leases - Maturities of Operatin
Leases - Maturities of Operating Lease Liabilities (Details) $ in Thousands | Jun. 30, 2022 USD ($) |
Leases [Abstract] | |
2022 | $ 4,828 |
2023 | 8,035 |
2024 | 8,174 |
2025 | 8,021 |
2026 | 7,859 |
Thereafter | 10,448 |
Total future lease payments | 47,365 |
Less: amount representing interest | (9,219) |
Present value of future lease payments (lease liability) | $ 38,146 |
Leases - Weighted Average Lease
Leases - Weighted Average Lease Term and Rates (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2022 USD ($) | |
Leases [Abstract] | |
Weighted-average remaining lease term (years), weighted based on lease liability balances | 5 years 8 months 1 day |
Weighted-average discount rate (percentages), weighted based on the remaining balance of lease payments | 7.90% |
Cash paid for amounts included in the measurement of lease liabilities | $ 5,039 |
Investments in Affiliates and_2
Investments in Affiliates and Related Transactions (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |
Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2017 | |
Sequential Technology International, LLC and AP Capital Holdings II, LLC | Loans Payable | |||
Schedule of Equity Method Investments [Line Items] | |||
Principal amount | $ 9,000,000 | ||
Contingent consideration, liability | $ 16,000,000 | ||
Interest rate, as a percent | 8% | ||
Stated term | 3 years | ||
Proceeds from sale, percentage | 5% | ||
Other assets fair value disclosure | $ 4,800,000 | ||
Sequential Technology International, LLC | |||
Schedule of Equity Method Investments [Line Items] | |||
Duration of services agreement | 3 years | ||
Consideration received | $ 1,600,000 |
Debt - Offering of Senior Notes
Debt - Offering of Senior Notes (Details) - Senior Notes - 2021 Non-Convertible Senior Notes due 2026: - USD ($) | Oct. 25, 2021 | Jun. 30, 2021 | Jun. 30, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||||
Principal amount | $ 18,000,000 | $ 120,000,000 | $ 16,100,000 | |
Interest rate, as a percent | 8.375% | |||
Par value (in dollars per share) | $ 25 | |||
Amount issued inclusive of underwriters' option to purchase | 125,000,000 | |||
Amount issued to underwriters | $ 5,000,000 | |||
Principal amount redeemed | 100% | |||
Percentage of debt holders demand full repayment on debt default amount | 25% | |||
Sales agent compensation, percentage | 2% | |||
Long-term debt fair value | $ 107,400,000 | |||
On or after June 30, 2022 and prior to June 30, 2023 | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, redemption price (in dollars per share) | $ 25.75 | |||
On or after June 30, 2023 and prior to June 30, 2024 | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, redemption price (in dollars per share) | 25.50 | |||
On or after June 30, 2024 and prior to June 30, 2025 | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, redemption price (in dollars per share) | $ 25.25 |
Debt - Carrying Amounts (Detail
Debt - Carrying Amounts (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 | Jun. 30, 2021 |
Debt Instrument [Line Items] | |||
Unamortized discount and debt issuance cost | $ (7,251) | $ (7,973) | |
Carrying value of Senior Notes | 133,826 | 133,104 | |
2021 Non-Convertible Senior Notes due 2026: | Senior Notes | |||
Debt Instrument [Line Items] | |||
Interest rate, as a percent | 8.375% | ||
8.375% Senior Notes due 2026 | $ 141,077 | $ 141,077 |
Debt - 2019 Revolving Credit Fa
Debt - 2019 Revolving Credit Facility (Details) - USD ($) | Oct. 04, 2019 | Jun. 23, 2022 |
Line of Credit Facility [Line Items] | ||
Borrowing capacity | $ 15,000,000 | |
Revolving Facility | ||
Line of Credit Facility [Line Items] | ||
Borrowing capacity | $ 10,000,000 | |
Debt, floor interest rate | 0.50% | |
Revolving Facility | Federal Funds Rate | ||
Line of Credit Facility [Line Items] | ||
Basis spread on variable rate | 0.50% | |
Revolving Facility | LIBOR | ||
Line of Credit Facility [Line Items] | ||
Basis spread on variable rate | 1% |
Debt - Interest Expense (Detail
Debt - Interest Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Debt Instrument [Line Items] | ||||
Amortization of debt issuance costs | $ 678 | $ 0 | ||
Amortization of debt discount | 44 | 0 | ||
Other | $ 24 | $ 9 | 38 | 29 |
Total | 3,343 | 144 | 6,668 | 239 |
Senior Notes | 2021 Non-Convertible Senior Notes due 2026: | ||||
Debt Instrument [Line Items] | ||||
Amortization of debt issuance costs | 343 | 0 | 678 | 0 |
Interest on borrowings | 2,954 | 0 | 5,908 | 0 |
Amortization of debt discount | 22 | 0 | 44 | 0 |
Line of Credit | Revolving Facility | ||||
Debt Instrument [Line Items] | ||||
Amortization of debt issuance costs | 0 | 72 | 0 | 84 |
Interest on borrowings | $ 0 | $ 63 | $ 0 | $ 126 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive (Loss) / Income - Changes in Accumulated Other Comprehensive Income (Loss) (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2022 USD ($) | |
Changes in accumulated other comprehensive income (loss) | |
Beginning balance | $ 90,823 |
Other comprehensive loss | (15,188) |
Tax effect | (48) |
Ending balance | 78,363 |
Accumulated Other Comprehensive Income (Loss) | |
Changes in accumulated other comprehensive income (loss) | |
Beginning balance | (32,985) |
Ending balance | (48,221) |
Foreign currency | |
Changes in accumulated other comprehensive income (loss) | |
Beginning balance | (29,350) |
Other comprehensive loss | (15,316) |
Tax effect | 0 |
Ending balance | (44,666) |
Unrealized income (loss) on intercompany foreign currency transactions | |
Changes in accumulated other comprehensive income (loss) | |
Beginning balance | (3,635) |
Other comprehensive loss | 128 |
Tax effect | (48) |
Ending balance | (3,555) |
Unrealized holding losses on marketable debt securities | |
Changes in accumulated other comprehensive income (loss) | |
Beginning balance | 0 |
Other comprehensive loss | 0 |
Tax effect | 0 |
Ending balance | $ 0 |
Capital Structure - Additional
Capital Structure - Additional Information (Details) | 6 Months Ended | ||||||||||||
Jul. 01, 2022 USD ($) | May 10, 2022 USD ($) shares | Apr. 18, 2022 USD ($) shares | Apr. 01, 2022 USD ($) | Jun. 30, 2021 USD ($) $ / shares shares | Jun. 29, 2021 USD ($) $ / shares shares | Aug. 19, 2020 USD ($) | Feb. 15, 2018 USD ($) $ / shares shares | Jun. 30, 2022 USD ($) vote $ / shares shares | Jun. 30, 2021 USD ($) $ / shares | Jun. 16, 2022 shares | Jun. 15, 2022 shares | Dec. 31, 2021 $ / shares shares | |
Class of Stock [Line Items] | |||||||||||||
Dividends | $ 0 | ||||||||||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.0001 | $ 0.0001 | $ 0.0001 | ||||||||||
Series B preferred dividend paid in the form of cash | $ 1,859,000 | ||||||||||||
Common stock, shares authorized (in shares) | shares | 150,000,000 | 150,000,000 | 100,000,000 | 150,000,000 | |||||||||
Silver Private Holdings I, LLC | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Consideration received on transaction | $ 97,700,000 | ||||||||||||
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.0001 | ||||||||||||
Preferred stock, liquidation preference (in dollars per share) | $ / shares | $ 1,000 | ||||||||||||
Preferred stock, shares issued (in shares) | shares | 185,000 | ||||||||||||
Number of shares repurchased under program (in shares) | shares | 5,994,667 | ||||||||||||
Minimum | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Preferred stock, ownership percentage | 5% | ||||||||||||
Maximum | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Preferred stock, ownership percentage | 10% | ||||||||||||
2020 Shelf Registration Statement | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Consideration received on transaction | $ 250,000,000 | ||||||||||||
2015 Plan | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Number of shares available for grant (in shares) | shares | 12,700,000 | ||||||||||||
Liability, accrued expenses, non-vested | $ 500,000 | ||||||||||||
2017 New Hire Plan | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Number of shares available for grant (in shares) | shares | 500,000 | ||||||||||||
Public Stock Offering | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Consideration received on transaction | $ 102,300,000 | ||||||||||||
Number of shares issued in transaction (in shares) | shares | 42,307,692 | ||||||||||||
Over-Allotment Option | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Number of shares issued in transaction (in shares) | shares | 3,846,154 | ||||||||||||
Common Stock | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Number of votes per share (vote) | vote | 1 | ||||||||||||
Series B Preferred Stock | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.0001 | $ 0.0001 | $ 0.0001 | $ 0.0001 | |||||||||
Preferred stock, liquidation preference (in dollars per share) | $ / shares | $ 1,000 | $ 1,000 | |||||||||||
Preferred stock, dividend rate, percentage one | 9.50% | ||||||||||||
Preferred stock, dividend rate, percentage two | 13% | ||||||||||||
Preferred stock, dividend rate, percentage three | 14% | ||||||||||||
Liquidation and redemption value | $ 73,000,000 | ||||||||||||
Multiplier of par | 1.5 | 1.5 | |||||||||||
Proceeds from sale of stock transactions used for redemption of shares | $ 50,000,000 | ||||||||||||
Proceeds from sale of stock transactions, used for redemption of shares and buy back of shares | 25,000,000 | ||||||||||||
Series B preferred dividend paid in the form of cash | $ 2,300,000 | $ 2,400,000 | $ 0 | ||||||||||
Redemption of Series B Preferred stock | $ 4,400,000 | $ 2,500,000 | $ 6,738,000 | 0 | |||||||||
Shares redeemed (in shares) | shares | 4,300 | 2,438 | |||||||||||
Preferred stock, shares issued (in shares) | shares | 71,000 | 75,000 | |||||||||||
Redemption of Series B preferred shares (in shares) | shares | (7,000) | ||||||||||||
Series B Preferred Stock | Private Placement | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Consideration received on transaction | $ 72,500,000 | ||||||||||||
Number of shares issued in transaction (in shares) | shares | 75,000 | ||||||||||||
Series A Preferred Stock | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Redemption of Series B Preferred stock | $ 0 | $ 278,665,000 | |||||||||||
Redemption of Series B preferred shares (in shares) | shares | 268,917 | ||||||||||||
Value of shares redeemed | $ 278,700,000 | ||||||||||||
Number of additional shares authorized (in shares) | shares | 0 |
Capital Structure - Preferred S
Capital Structure - Preferred Stock (Details) - Series B Preferred Stock shares in Thousands, $ in Thousands | 6 Months Ended |
Jun. 30, 2022 USD ($) shares | |
Increase (Decrease) in Temporary Equity [Roll Forward] | |
Beginning balance (in shares) | shares | 75 |
Issuance of Series B preferred stock (in shares) | shares | 0 |
Issuance costs related to preferred stock (in shares) | shares | 0 |
Amortization of preferred stock issuance costs (in shares) | shares | 0 |
Issuance of preferred PIK dividend (in shares) | shares | 3 |
Redemption of Series B preferred shares (in shares) | shares | (7) |
Ending balance (in shares) | shares | 71 |
Beginning balance | $ | $ 72,505 |
Issuance of Series B preferred stock | $ | 0 |
Issuance costs related to preferred stock | $ | 0 |
Amortization of preferred stock issuance costs | $ | 143 |
Issuance of preferred PIK dividend | $ | 2,438 |
Redemption of Series B preferred shares | $ | (6,738) |
Ending balance | $ | $ 68,348 |
Capital Structure - Stock-based
Capital Structure - Stock-based Compensation (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Employee Service Share-based Compensation, Aggregate Disclosures [Abstract] | ||||
Total stock-based compensation expense | $ 964 | $ 2,345 | $ 2,891 | $ 5,066 |
Tax benefit | 190 | 440 | 567 | 937 |
Stock-based compensation cost related to non-vested equity awards not yet recognized as an expense | 8,100 | $ 8,100 | ||
Weighted-average period over which stock-based compensation cost related to non-vested equity awards is expected to be recognized | 2 years | |||
Stock options | ||||
Employee Service Share-based Compensation, Aggregate Disclosures [Abstract] | ||||
Total stock-based compensation expense | 446 | 893 | $ 1,240 | 1,848 |
Restricted stock awards | ||||
Employee Service Share-based Compensation, Aggregate Disclosures [Abstract] | ||||
Total stock-based compensation expense | 509 | 1,329 | 1,387 | 3,039 |
Performance Based Cash Units | ||||
Employee Service Share-based Compensation, Aggregate Disclosures [Abstract] | ||||
Total stock-based compensation expense | 9 | 123 | 264 | 179 |
Stock-based compensation cost related to non-vested equity awards not yet recognized as an expense | 500 | $ 500 | ||
Weighted-average period over which stock-based compensation cost related to non-vested equity awards is expected to be recognized | 1 year 1 month 6 days | |||
Cost of revenues | ||||
Employee Service Share-based Compensation, Aggregate Disclosures [Abstract] | ||||
Total stock-based compensation expense | 139 | 379 | $ 360 | 857 |
Research and development | ||||
Employee Service Share-based Compensation, Aggregate Disclosures [Abstract] | ||||
Total stock-based compensation expense | 316 | 696 | 872 | 1,551 |
Selling, general and administrative | ||||
Employee Service Share-based Compensation, Aggregate Disclosures [Abstract] | ||||
Total stock-based compensation expense | $ 509 | $ 1,270 | $ 1,659 | $ 2,658 |
Capital Structure - Black-Schol
Capital Structure - Black-Scholes Assumptions (Details) - Stock options - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Weighted-average assumptions | ||||
Expected stock price volatility | 74.10% | 83.10% | 74.10% | 83.10% |
Risk-free interest rate | 3.20% | 0.60% | 3.20% | 0.60% |
Expected life of options (in years) | 4 years 1 month 17 days | 4 years 3 months | 4 years 1 month 17 days | 4 years 2 months 26 days |
Expected dividend yield | 0% | 0% | 0% | 0% |
Weighted-average fair value (PSV) of the options (usd per share) | $ 0.73 | $ 1.81 | $ 0.73 | $ 1.89 |
Capital Structure - Stock Optio
Capital Structure - Stock Options (Details) - USD ($) $ / shares in Units, shares in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Number of Options | ||
Options outstanding at the beginning of the period (in shares) | 4,715 | |
Options Granted (in shares) | 1,198 | |
Options Exercised (in shares) | 0 | |
Options Cancelled (in shares) | (532) | |
Options outstanding at the end of the period (in shares) | 5,381 | |
Vested and exercisable (in shares) | 2,036 | |
Weighted-Average Exercise Price | ||
Balance at the beginning of the period (in dollars per share) | $ 6.53 | |
Options Granted (in dollars per share) | 1.26 | |
Options Exercised (in dollars per share) | 0 | |
Options Cancelled (in dollars per share) | 12.57 | |
Balance at the end of the period (in dollars per share) | 4.76 | |
Vested and exercisable (in dollars per share) | $ 8.12 | |
Weighted-Average Remaining Contractual Term (Years) | ||
Outstanding | 5 years 3 months | |
Vested and exercisable | 3 years 11 months 8 days | |
Aggregate Intrinsic Value | ||
Outstanding | $ 0 | |
Vested and exercisable | 0 | |
Additional disclosures related to stock options | ||
Total intrinsic value for stock options exercisable | 0 | $ 0 |
Total intrinsic value for stock options exercised | $ 0 | $ 600 |
Capital Structure - Restricted
Capital Structure - Restricted Stock and Performance Stock (Details) shares in Thousands | 6 Months Ended |
Jun. 30, 2022 $ / shares shares | |
Restricted stock awards | |
Number of Awards | |
Non-vested at the beginning of the period (in shares) | shares | 2,574 |
Granted (in shares) | shares | 979 |
Vested (in shares) | shares | (718) |
Forfeited (in shares) | shares | (173) |
Non-vested at the end of the period (in shares) | shares | 2,662 |
Weighted- Average Grant Date Fair Value | |
Non-vested at the beginning of the period (in dollars per share) | $ / shares | $ 3.57 |
Granted (in dollars per share) | $ / shares | 1.41 |
Vested (in dollars per share) | $ / shares | 4.30 |
Forfeited (in dollars per share) | $ / shares | 3.41 |
Non-vested at the end of the period (in dollars per share) | $ / shares | $ 2.56 |
Performance based cash units | |
Number of Awards | |
Non-vested at the beginning of the period (in shares) | shares | 1,996 |
Granted (in shares) | shares | 0 |
Granted adjustment (in shares) | shares | (73) |
Vested (in shares) | shares | 0 |
Forfeited (in shares) | shares | (91) |
Non-vested at the end of the period (in shares) | shares | 1,832 |
Weighted- Average Grant Date Fair Value | |
Non-vested at the beginning of the period (in dollars per share) | $ / shares | $ 2.44 |
Granted (in dollars per share) | $ / shares | 0 |
Granted adjustment (in dollars per share) | $ / shares | 0 |
Vested (in dollars per share) | $ / shares | 0 |
Forfeited (in dollars per share) | $ / shares | 0 |
Non-vested at the end of the period (in dollars per share) | $ / shares | $ 1.15 |
Performance based cash units | 2015 Plan | |
Weighted- Average Grant Date Fair Value | |
Vesting period (in years) | 3 years |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | ||||
(Provision) benefit for income taxes | $ (435) | $ 201 | $ (563) | $ 364 |
Effective income tax rate | 10.30% | 2.40% | ||
Proceeds from income tax refunds | $ 4,300 |
Restructuring - Restructuring A
Restructuring - Restructuring Accrual and Changes (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Restructuring accrual and changes | ||||
Charges | $ 1,019 | $ 877 | $ 1,704 | $ 1,590 |
Employment termination costs | ||||
Restructuring accrual and changes | ||||
Balance at December 31, 2021 | 3,247 | |||
Charges | 1,704 | |||
Payments | (2,736) | |||
Other Adjustments | (87) | |||
Balance at June 30, 2022 | $ 2,128 | $ 2,128 |
Earnings per Common Share (EP_3
Earnings per Common Share (EPS) - Reconciliation of the Numerator and Denominator Used in Computing Basic and Diluted Net Income Attributable to Common Stockholders Per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Earnings Per Share Reconciliation [Abstract] | ||||
Net income (loss) from operations | $ 7,921 | $ (2,420) | $ 4,884 | $ (14,786) |
Net (loss) income attributable to redeemable noncontrolling interests | (75) | (50) | (190) | 286 |
Preferred stock dividend | (2,519) | (21,476) | (4,957) | (32,006) |
Net income (loss) attributable to Synchronoss | 5,327 | (23,946) | (263) | (46,506) |
Net income (loss) from operations attributable to Synchronoss | $ 5,327 | $ (23,946) | $ (263) | $ (46,506) |
Denominator: | ||||
Weighted average common shares outstanding - basic (in shares) | 87,124 | 44,131 | 86,031 | 43,438 |
Weighted average common shares outstanding - diluted (in shares) | 89,249 | 44,131 | 86,031 | 43,438 |
Earnings (loss) per share: | ||||
Basic (in dollars per share) | $ 0.06 | $ (0.54) | $ 0 | $ (1.07) |
Diluted (in dollars per share) | $ 0.06 | $ (0.54) | $ 0 | $ (1.07) |
Performance Based Cash Units | ||||
Denominator: | ||||
Shares from assumed conversion of Performance Based Cash Units, options and unvested restricted shares (in shares) | 1,832 | 0 | 0 | 0 |
Options and unvested restricted shares | ||||
Denominator: | ||||
Shares from assumed conversion of Performance Based Cash Units, options and unvested restricted shares (in shares) | 293 | 0 | 0 | 0 |
Stock Options | ||||
Earnings (loss) per share: | ||||
Anti-dilutive stock options excluded (in shares) | 0 | 0 | 0 | 0 |
Restricted Stock Awards | ||||
Earnings (loss) per share: | ||||
Anti-dilutive stock options excluded (in shares) | 2,662 | 2,586 | 2,662 | 2,586 |
Commitments, Contingencies an_3
Commitments, Contingencies and Other - Aggregate Annual Future Minimum Lease Payments Under Non-Cancelable Leases (Details) $ in Thousands | Jun. 30, 2022 USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2022 | $ 10,022 |
2023 | 16,315 |
2024 | 13,425 |
2025 | 9,740 |
Total | $ 49,502 |
Commitments, Contingencies an_4
Commitments, Contingencies and Other - Legal Matters (Details) $ in Millions | Jun. 07, 2022 USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Loss contingency, damages awarded | $ 12.5 |
Loss contingency, payment term | 2 years |
Additional Financial Informat_3
Additional Financial Information - Components of Other Income (Expense), Net (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Other Income and Expenses [Abstract] | ||||
FX gains (losses) | $ 3,896 | $ 969 | $ 5,614 | $ (2,304) |
Government refunds | 93 | 5 | 93 | 5 |
Income from sale of intangible assets | 0 | 550 | 0 | 550 |
Other | 76 | 52 | 62 | (71) |
Total | $ 4,065 | $ 1,576 | $ 5,769 | $ (1,820) |