SNCR - Earnings call transcript Q3 2019 | Synchronoss Technologies, Inc.

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Greetings and welcome to the Synchronoss Technologies Incorporated Third Quarter 2019 Earnings Conference Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator instructions] As a reminder, this conference is being recorded.

It is now my pleasure to introduce our host Joe Crivelli, Vice President of Investor Relations. sir. you, Thank

begin. You may

Joe Crivelli

good Third afternoon, the Diego, Welcome everyone. XXXX Earnings Technologies Quarter Synchronoss Call. Thanks to

Joining me our on Chief the call is Glenn of and Officer. Executive Lurie, Synchronoss David Financial Clark, Chief Officer President and

of laws, the within for and our the and the expectations market business including meaning expects, our prospects as certain we SEC financial specific and we trends, prospects currently relating be position, forward-looking actual are on more may statements see cause the future risks may to securities identified statements other our XXXX make financial uncertainties. we to result of differ. environment are include update beyond future Please believes, and references filings refer call these for new factors During other that the as and our as information as this Any Generally, forward-looking call, statements indications expectations. based no to considered on undertake and risk or information trends opportunities. business and assumptions that statements and to by will on results it of of forward-looking the federal to statements about obligation future intends such based today events. a statements forward-looking future business words are on These anticipates, and statements

press non-GAAP we be reporting, of these description that in their measures Reconciliations measures the financial US measures to do to certain our to earnings enhance measures found addition non-GAAP believe non-GAAP report the GAAP. measures can to today’s conform addition We GAAP understanding of release. In GAAP in performance. not of

to the call Glenn will Lurie. I turn over now

Glenn Lurie

everybody us today. Joe and for joining Thanks thanks

that comment White new customer earnings, to has take Before a Synchronoss announce excited Cloud transformative I on announced. major deal new want Label to carrier for US-based to I multiple our we Today very exciting comment are and the offering. moment a on Tier-X

XXXX. expect in generate identity revenue industry remain customer this we Overtime, the quite typical it as early they’ve for around they their to launch this late in into was While requested, Synchronoss. material service

that growth This growth the revenue and is obviously believe in beyond. for double-digit path tremendous puts on XXXX return to sustain we catalyst us a Synchronoss

excited and moment, deal about we advanced most we announced with experience customer but catalog experience In module platform software believe very for retailers of American week. deal talk addition, analytics today. our about engine for we decision tobacco we’re more these the British based and the last a in with the new available have I’ll this modules two completion now digital

result expenses strategic of customer platforms an moving approach financial currently take STI our that this as a experience. and backdrop transform help with a accelerate set quarter With As British half in in prospects. XXXX, American executing believe successful We of first proof other moving will we’re entirely and tobacco is the result our ecosystem. Combined a new traditional we this also our outside the announced and Sequential manage four revenue growth, exciting new can future market their as customers pilot Technology and we to of first business an with we DXP and company case we believe of wins, customer relationship. toward our or the to process, the of forward to STI TMT end to conservative a being evaluating that in decision made process alternatives the can

As clear. become it the STI our we has realized process of from the cash, understanding potential

accounts writing XXXX. of We’re related XXXX off represents STI million which from invoices $XX and receivable

third revenue revenue. new an the a lease within relationship quarter, which offset as that adjustment scope us XXXX account of with STI accounting is to against requires cumulative rules as prior for the revenue Our write-off to is

year guidance track write-down and the would very on put established original have in we million to much $XX.X Excluding been that us full back STI would have revenue meet third March. quarter our

that third Obviously, guidance. accurately not full adjustment our one-time reflect to operational the to revenue the wins as a cumulative figure performance you the business. recent quarter of moment. our discuss earlier update does status impact So the and this we some I’ll partnership customers year on on David million now [indiscernible] $XX.X the of deals, revenue announced in a GAAP well will of year. as have an

of cloud also US-based new our customer to about wanted First, give the the on business. talked an but on X business. rest Cloud I’ve our Tier Cloud update already

offering Our of healthy the XXXX. delivered double-digit end Verizon subscriber growth has cloud since

family strong worked traction of and seeing we’ve under product. relationship addition, provides per continued terabytes plan. extremely look Verizon plan around view $XX.XX as the month, for In with two closely which to We to Cloud forward this their new storage innovation that a is early launch team Verizon the good

The until we has that so fourth the quarter, announced third time. identity the new quarter second on the from Cloud the silent the launch customer on mode in to quarter customers’ extended the still we’re

as information soon can. provide as we more will investors We to

We’re working excited to closely happen. them to that market make get are with this and

in migrating Assurant we Synchronoss as believe, to also the previously customers from revenue recognizing We Assurant the will Cloud. is quarter, relationship fourth planning our begin announced to begin

to Second, with messaging our respect business.

me on Let our you give Japan work an on Plus Message. update in

Initially AXP, optimize it. go they messaging where industries Our process carrier focused in first partners with the can launch. wave select rolling and the to now are in the they’re Application-to-Person of believe on AXP success carriers of advertising

initial quarter about we We expect we’re AXP coming the to fourth of flowing revenue grow revenue that of to recurring from very to in in expect our excited XXXX, messaging source scale new years. begin

messaging announce on the to future. near in opportunities hope very exciting in We business have also additional our advance working some we that we’re

business quarter. or agreements considerably of accelerated with Telkom in the our Wireless digital Indonesia business DXP after has our announcement our and our momentum DXP Third, Advocates Amazon, last

American also and This with quarter we DXP Ooredoo. Tobacco Indosat announced British deals

a We pilot to locations the Tobacco, Regarding BAT pilot locations BAT owned be we Synchronoss will Europe. believe BAT XX last The are across of X,XXX American the while a they unified optimize experience the in locations. design, across multi-country this provide across platform retail of deploy, DXP announced week their channels. additional to and launching customer or deployment British with its providing success manage ability DXP and of retail quickly could additional journey’s permanent BAT

As our combined a will experience retail earlier, improves overall core DXP catalog our did and the better modules experience I satisfying delivering Engine BAT with retail platform Decision in new revenue. to help maximizes in manage employees that customer

traditional proof this BAT case As with We market significant base leverage our pilot I with also will to DXP other this able of ecosystem. because for the success the be outside BAT it’s stated, first or TMT is believe, retailers. with

Ooredoo Ooredoo, chosen the provider in service that to interconnected has DXP deliver across help support also initiative encourage economic future a platform collaboration for announcing digital economy unified will involving to Indonesia platform IoT also today experience project, develop growth. a new engagement and are Indosat technology cases nation-wide used DXP The Synchronoss user and to ideas, leading channels. customers Synchronoss We Indosat a products

our that and portfolio to This product believe in Rackspace validate a for invoices. long-standing we business heading a platform within our growth financial expenses analytics platform multi-year has digital is signed that for nice Synchronoss XXXX. potential and accurately deal and a

in Amazon customers indicated per they forward. process underway Amazon five going customers [ph] and in queue fourth are on for with more Singapore The the integration first carriers with plan assigning are other live has Mexico quarter three with of into Amazon, quarter Synchronoss deployments being integrated in and

the where a in these Amazon deployments. generated As share we shared any mentioned, is through partnership success carrier revenue model,

such total As we larger expected announced value. contract of the in terms this is of one contracts, in XXXX,

acceptance on of full signed off criteria now officially Wireless Advocates has into moving and they’re DXP implementation.

be in will Our three-year the realized first revenue this fourth quarter. deal from

We’re completed. carrier and flow building that will journey’s out integrating and an is currently activation DXP, to into and work once customer workflows move the

glass is multiple Indonesia pane utilizing data to a they’re and DXP for single underway into likewise DXP sources of consolidate deployment their management portal. all feed commercial Telkom Our one of businesses to

physical with world’s or IoT, Microsoft, And the Adding been fourth, active our and partnership The IoT a with enterprises Accruent, valuable insights the leading expand the last facilities year effectiveness Tridium across greater will to we provider Rackspace are expertise to today resource Arrow, building announced building of we in is Synchronoss’ or pipeline extremely announcing a IoT analytics to solutions Internet revenue with worldwide deals with solutions. clients partnership collaboration in as smart our of and efficiency and current deliver system. quarter. monitoring management of XX,XXX it combine these Things asset

employees Intent America across to trusted greater is management with Europe, conjunction their world’s of XX,XXX facility software North In the will companies expertise Accruent we’ve in expertise a with signed which facility and Letter the Australia, CityFM, of to management create over drive with with end-to-end in efficiencies. engineering Synchronoss’ analytics facility combine an Asia and management scalable offering partnership, one most

Rackspace with proof-of-concept live our with completed IoT and have accelerator. Microsoft also We undertaking partnership

The early began of power XX to AT&T assigned facility license square with result for a a which PoC in solutions monitor, Synchronoss. next of that is centers and clients million on, that AT&T lined feet. working the IoT a is our engaging building we’re channel deal smart data X optimize measure their in gaining represent any sales up clients and usage to Antonio, this lot in momentum. major San traction has also As over we headquarters Rackspace jointly multi-year QX. these By control

seeing and the rebuilt offerings two of years our EBITDA believe, powerful value numerous added This and deals that products, has entire time, sales Synchronoss labor to announced. revenue relationships effort new that white such we’re that sales DXP past drive the and platforms proud funnel. the we’ve years. very will and work as year, We with the of to team I’m and these come. customer and energized over fruits our the shareholder for our we labelled IoT team, platform done In

our are set of relation my a majority Service, of revenue models. a double-digit company of goal CEO hope to revenue Mostly has importantly, as achieving higher with this these since reoccurring a Software very consistent PaaS, growth XXXX. the This these be a SaaS percentage Platform and new becoming that up been deals well because Synchronoss become the in Service company we’ll as is, base

customer has XXXX focus XXXX in British the in XXXX, was and as new The funnel such growing our for all revenue, growing business American Amazon, existing announced the winning four focus been preserving deals platforms sales tobacco. in with the while quality relationships,

others. new as three Verizon, as well Our carriers with Japanese and our BT customers relationships and strong cloud

meet additional have growth in now worked to being details. the financials sales week-by-week. in transformative more not done now will EBITDA revenue the hand, funnel review yet. There’s need new goals grow, we and we business we’re long-term and believe, the to our We and continuous deals David, still

David Clark

million for Glenn $XX.X been have of Thanks million us. quarter update the review everyone impact in and as will $XX.X Investor impairment year quarter guidance third $XX.X XXXX. should to revenue as due XXXX. invoices include quarter and is compares the ago however that $XX.X the Revenue second I results write-down periods. the would and the joining million. the This GAAP note from our million thanks well in for quarter STI for revenue STI to prior XXXX

The revenue quarter. decline $XX.X in the pre-STI up third X.X% cloud revenue second model. third XX% $XX was million quarter in total last third essentially Verizon in flat large second the of to million was true a subscribers quarter. due subscribers recurring in revenue from quarter actual revenue XX% $XX.X last Using had exceeded was to quarter. compared forecast million $XX.X Cloud revenue year’s down the to the in year’s million revenue figure the compared year-over-year in was Cloud

million recognition third $XX.X due in sales XXXX revenue was P&L the additional up where is the the to the from increase honeybee year million this ago of XX% revenue quarter The due of license owner our third of $XX.X XXXX the market. $XX.X in this setting $XX.X was the the in write-down, Messaging $XX.X well as from quarter. quarter quarter which excluding in the decrease prior million year-over-year year. up quarter sun XX.X% second and second year $XX.X platform. of in and revenue million product compares Japanese revenue in impact STI million in quarter deferred STI to million the of from fits in was in legacy The the as a to Digital was ago the

nine the loss net I’ll impacted now write-down profitability STI write-down GAAP Note in by discuss adjusted prior provide to metrics. margin the profit ability $XX.X and in figures the adjusted the quarters. million. gross we’ve comparison was back STI the gross apples-to-apples the to in all that, quarter for gross Adjusted but margin, the was $XXX.X added third an period were revenue do operating million months profit

quarter a $XXX period. share in first $XX.X million a per XXXX the million million of an year nine quarter for operations to GAAP share $XX.X or loss to loss net compared to from or loss and in the quarter Non-GAAP net loss with in in the million $XX.X ago period. million operations a continuing $X.XX a comparable Synchronoss or per $XX.X per $XX.X the XXXX the loss the was $XX.X nine-month from loss compared attributable XXXX. months in was $X.XX quarter the $X.X share continuing million excludes from which or $X.XX down third $X.XX improvement and million for share per the STI loss Non-GAAP write million

operations in quarter the Adjusted per period second excludes in million non-GAAP XXXX was quarter year. improvement share the million an the EBITDA or attributable of $X.X quarter or down nine-month $XX the last XXXX. third $XX.X which share continuing in with $X.X to STI was the For and per compared Synchronoss million $X.X loss of XX.XX net $X.XX from million a from million write

the $XX.X is marketable line cash in our Now and cash with and previous securities which Cash balance net million sheet turning flow. balance to quarter. in totaled

We remaining also paid down on in balance August. convertible notes our the

Over has to STI million outstanding the $XXX about quarter of a was from debt $XX quarter from ranged low Accounts net to at million ins end of the and end receivable our of high million. quarter five the $XX.X second a due cash write-down. the at convertible million past and was largely reduction balance $XX a

a a significant million cash $XX.X last year. months activity XX last nine is by for compared operating in the This Net to September turnaround ended was million provided months. $XX.X negative

As facility we a revolving provided Bank a credit into $XX has Citizens million company. which Synchronoss entered with announced, the three-year relationship to

finance million going liquidity which expected company with the provide addition revolver, chain In also additional program to we $XX Citizens of into to supply the to Citibank average $XX entered on a forward. for million

penalty. the closer our when preferred continue financing to get solutions longer the to XXXX term August, stock explore have We as date we we without redeem to option

been are take. will what recapitalization capital We both encouraged conversations about bankers providers with by we’ve so that far and investment having the form

Now to turn to guidance.

our of cash transition and down the annual STI STI base accounting revising for We’re relationships. to guidance impact revenue to the the the write-down due

guidance also the We’re narrowing range.

tracking STI business made performing to original mentioned, the of expected issued was are As year decision our was Glenn to the were meet address the at guidance as start and we our relationship. the that before

announced of We It funnel basis. visible that in the lower forward expected prior quarter accounts also the in cumulative under our note, the year included sales start also removal we a lease you million the going is year the To which if as for range of This was easy, $XX revenue receivable expect recognized math adjusted $XX STI guidance revenue on as fourth this full as we’ve take not STI end revenue million for reduction. revenue low the of of cash our guidance be a for be the million I’ll which our range. all progress we deals accounted make guidance were accounting nine it well new deduct and end why million our and revenue for of quarter to expected million low range year front. $XX and lower increased to in will XXXX EBITDA of write-down to a to that’s now as guidance million million $XXX fourth of $XX revised from to is $XXX $XXX accounting $X the revenue cash have the transition despite the the bring the of first year as accounts million million. months the to write-down $XXX accounts

chapter fourth to $XX investment the making investment in year, to expect new September business future $XX on through on history. million balance wins we as close spent to position in in the conservative we relationship million $XX this the spent [indiscernible] decision focus quarter. contract new we our take of mentioned a difficult success financial we’ve the that XX, all fourth based we we’re million STI company’s the of growth approximately we’re of support can is Earlier closing, this to the the on collectively business In and STI expect quarter in making now the know believe Synchronoss. in we We right relationship

future our of announced customers in Amazon customers XXXX we’ve such as well We and BT, new Synchronoss closing the cloud we’re DXP others deals with believe platforms. in deals traction the our as and in as and IoT demonstrating

forward As of SaaS Glenn and can said, going PaaS these that deal are we line based all for provider questions. that, with positions open solutions as a us the growing transformative and

Operator

Canaccord question with [Operator comes question. Walkley Mike your first Instructions] Please our state Genuity. from

Unidentified Participant

Mike. for on Anthony is This

American this announced Tobacco, of little how the a this this the about mentioned and tackling foray verticals diversification outside to you up just how about British Can is know previously just you Glenn first? you’re TMT a recently deal you kind set focus know about of of kind came I TMT. given this there, is with be on You might bit deal of point strategy you talk like which going

Glenn Lurie

we’ve question. we’ve for and carrier I the Yes, we history Microsoft around thank Amazon made, was came in and obviously the very you that, do is one Synchronoss’ moves deals there’s of into quickly some move TMT the deals able to And of done. with a been to to and focused. things when try other Yes, strategy very

and that, our where many the because that’s of many, One in digital the our places platform in it TMT we things is and about great of DXP have flexible mean, we very works is I focus relationships.

trying and worked outside parties with consultants whether as and journey. what we even with do could that customer were improve in introduced their third potential and them well as overall platform us experience them BAT on that seen went obviously and to build others them, in looking at have for to of started to that our showed digital deal We other we have relationships

excited XX Focused touch do, on to with platform, in Wireless physical similar way completely we rethink and actual to be. them a about what announced is the obviously a locations, Advocates. we’re journeys pretty have customer customer entire opportunity as the their allow working Really but we’re what how can

You will heading we go this forward. direction in us as see

discussions massive We so because know has of is and which relatable the journeys traditional much their have to who anybody we very what outside multiple channels of is is of customer bunch a software just a happening business whole inside marketplace. TMT

So, this job traditional from have step with in along and great ecosystem. TMT back LA, the retailers we have and of, outside and Congress a just was the team working got of Jeff we kind Mary team done her next the Mobile and where just numerous with conversations just World

Unidentified Participant

and SG&A any of sales of in it to foresee kind kind just conjunction then, outside TMT? that, of the of Got impacts with in scope the of expanding you to force do terms

Glenn Lurie

that not is, going don’t we’re that go one actually at we’re We us. with more of be Yes, all. be sell going things utilizing more partners will and to the to because and parties doing out third

that closely quite very key of know, are Rackspace of customers One us with bit traditional is partners the customers working outside of and Rackspace retailers for us announced many the example, was a ecosystem. you to show DXP ago we in helping their their

our actually that partners, we’re co-sell as parties with want going us as well So, to to DXP that. to sell do platform represent utilize third and

Unidentified Participant

know or I I don’t of can map, profile it is, the provide you Got a the around just envelope XX% if on on back of think it margin that the STI, then color kind and that? is

David Clark

our because that hard businesses. support to there non-STI services do so are it’s shared many Yes,

because what to purposes directly directly item. impairment this hard Obviously, of was applied back it’s breakout So, a or applied. sort it’s non-recurring added EBITDA for not

Unidentified Participant

just lastly me Got queue. for on to it pass then and I’ll and

carriers don’t that. speak US how I RCS-CCMI Synchronoss in much potential involvement JV announced recently recently. know can to you I think

Glenn Lurie

Yes, we that, this on can’t comment time.

Unidentified Participant

Understood. Thank you.

Operator

question next comes Baldry from your Please you, with Capital. Roth your question. Richard Thank state

Q –Richard Baldry

the based the fourth like would pretty success year, the would quarter, expect you say, drivers speed to The be it but would P&L year of what pretty the it looks headlines $XX fourth rollout can we the but is in million would that in with up where spending maybe faster. materially for talk quarter moderate we arguably and and expected throughout see what to little that that I a coincident through will see been

Glenn Lurie

and jump Sure, Rich. I’ll David if see to in. can Yes, I wants start

deals X As we they much gotten that and we’ve number customers to cloud have we our new there’s example, other launched would started in done that we’re that understand quarter. expect about we based in which fourth seen stated then to so deals can’t more we’ve fourth as spend. very that XXXX, say probably quarter, deals customer, will close work deals I and that success that much fourth Obviously to additional go based Tier that US we is get in you have that, close you’ve also early of invest to obviously in optimistic already now for we the can to quarter. drive deliver of the and have but

David Clark

that one itself and in would two being, manifest Rich, lines; one and being of And development. cost research revenues

Q –Richard Baldry

about, talk number to would based as $XX when taken possibly it your of sort early forma you back that as that goal comparison double-digit on growth and to for backing revenue out or into pro we sake? million of and was XXXX, the get that Okay

David Clark

to it STI or take, to expect is, take I know take have to whatever an for so do think it we don’t but have you really out. to successor going comparison form you’d I that’s mean out. relationship sake, have what with there I ongoing think

Q –Richard Baldry

wins after before of could sort the to the you think where of they in around of half start new be maybe they share deploy XXXX, second could lot of talk the material sort and first quickly variety color you about think XXXX? but a any out got those half how see to online, come come, revenues ramp look of those there’s generate Can of some think you impact then, we whether a started [indiscernible] Just of ways all you I at, how they customer characteristic, it. to And quickly the coming?

Glenn Lurie

success do and with a level – question. high of But then I me specifics a this from customer, you subscriber materiality the some into get about short-term happens a deals implementation second specific cloud would and Yes, long-term, base to contracts. for the paid as is it let and because basis, we me say is deals per based. as specific grow are good which and obviously for by dollars, really The platform very fantastic you it, you but – but our are you’ve majority if us to invest think way got know, there material. that on [indiscernible] is the a subscriber by it the cloud for get then hard slowly a It’s of build.

grow We I so when XXXX. today want they to PaaS doing will in us our that we’re will in and is is quarter for we them the grow announced, the with that XXXX you look and the, that to being which want one the part obviously in and customers. I then do and customers. Assurant grow be we’ve in obviously call will in then want and cloud have one, obviously at think quarter second being, to look work those win what launch new announced and and we to company three we the we then new our mentioned business the with and start revenue in that the with the scratch They from the SaaS deals of fourth

our in majority well deals working cost that success going we’ve customers. The the be done will and into success a are Obviously, a we our revenue. We I expect about said cases will what is XXXX. announced see of as talked from gotten others, were in be, these talk our with you as obviously base with DXP, exciting we’re Indosat most more model revenue as DXP. belt upfront relationship in Amazon again and then we’re about to and whether and we We’ve from to or the under is they you got implementation there then think see on Advocates us see exciting as exactly expect all are it going there’s about that revenue we going well. we sharing here starting early and start more expect I do we’re those grow those really XXXX, in said, deals first Wireless lot we’ve few nice to base relationship we If they that to wins they’re and to

little a like about a somebody great Smart If different, you if think we done example. when we’ve Rackspace buildings with do IoT is

We’re in they they messaging advance seeing revenue the in revenue little our have have certainly deals from messaging is Message there. new profile business to hope a and seen you’ve quicker those business happening right depending our key what’s then and obviously relationship now to We Plus those, email as different additional in with as earlier. can of well how a our bit and obviously a come on come,

can’t deals. specific get So that into really I helps, I very hope

Q –Richard Baldry

with on sort about had a you’ve more also generically XXXX and of sort potential to about heading of had of deal sort and just support in deal the do them to speaking, of terms getting and pretty again big and recently. activity your feel Thanks. maybe you year more of the flurry How bandwidth come? launch the front to ready wins of Right you into broadly rest

Glenn Lurie

a definitely now. and and and XX through is with job to repeat the working our so Pat a very working really feel time delivery. a did CMO, Mary as is, good team we velocity happening, spend deliver our going process as cloud feel our in We these of CCO this. his good, we our resources cost so on through really Miller, all and good XX a lot our Jeff, on of The spend Obviously our to to lot we’re at our together Jeff while and planning put our the and this. that others, is Pat and drive Doran it’s and Clark, came CTO Mary time up XXXX, we Pat about of ability news work ability how into going labeling picking part we’re fantastic lower and XX to where platforms. also velocity so is

the long where earlier Now the current good cycle the as my funnel, build volumes the come our a you I far had in XXXX were and in hard deal in the customers seeing come are starting was is as part the coming. that sure TMT benefits of – flow sales know reaping it’s XXXX and it of comments goes, that’s as we’re funnel and to why work making about you’re

truly We in one done. well of also, those very team both get deals global you in these first kudos wanted team Jeff regions and and as and our to of a in you’re many Asia Europe the leadership in, happening with things the together if of I coming working be we to is goes and recall – did those to player, seeing

So, deal goal our SaaS us we’re PaaS definitely not we actually label, based down deliver or see want saying White our making that’s times. to working good but XX% we’re deals volume. Label the upon of the to handle I’m and towards slowing, allows we them to I yet, ability white the progress coming going to it is a player. velocity flow which up custom the we’re It’s do I’ve goal. many repeatable. said a this see cost our don’t fact structures we’re that staying deliver and – the XX% there flat but lot be

Q –Richard Baldry

thank you. Great,

Operator

you. Thank

JPMorgan. Our with next question comes from Auty Sterling

Q –Sahil Dhingra

maybe to the in after the This this that or maybe is to question. to quarter Sahil US lead revenue impact service for on cloud the the guidance? any delay you taking new on my Did or QX for Sterling. Thank in customer

Glenn Lurie

that XXXX, to quarter, lead to as said we not an when to that. for guidance expect so XXXX does launching give will be it that in we we particular No, customer, this in it lead expect our early impact we

Q –Sahil Dhingra

you. Thank

So, immediate other any in success replicate any geographies, plans the of business plans. Japan to messaging the to

Glenn Lurie

Obviously, team Absolutely, repeat done Message success proud we’re planned. are we Plus absolutely and model many that what We globally with it’s a with the hope great and definitely Japan. that had about we’ve we having that will in model over. really others think times that the of many, the conversations and carriers and we

Q –Sahil Dhingra

as of a in if the fastest, may. From you modeling do one if mean it. Thank growth double-digit perspective return growing you And more, to which you. Got business I see XXXX? a I segment

Glenn Lurie

adding business through, think is strong we believe very cloud Well went partners, year. obviously this customers I as our new three obviously

we’ve you, that nascent very and have for certainly was very, very, special of in well. solid business, we partners We done momentum also in that in fully messaging is other on IoT strong this was anticipate, not incredible we’re and expect least doing small what very something we XXXX but and lot announced business year. of as us lastly, [ph] just work in as the marketplace business grower level we discussed question, we’ve to platform our and the do obviously a experience we’ve be that accuhire and shows then And your are replicating first business the a countries. It on the a a digital Japan gaining that

Q –Sahil Dhingra

Got it, thank you.

Operator

you. our Allen Partwell Instructions] with Please [ph] comes question. Thank Investments. your state [Operator next Jason question from

Unidentified Participant

and company the the a I’ve I in have Couple narrative investing and numbers following of numbers been to it between the discontinuity the like I At tracking half year on Two times today. questions. prompts them. and about that’s questions just the enjoyed what progress. communicated and and feel around for guess clarify, conversations

And I’ll so, spoken a clarity there. when for a of questions hopefully trying we’ve sequential to more Number of get one talk number double-digit guess about my bring that ask here. sake, little growth which some own times clarity. I is, two you

expectation, elaborate like sequential clarify and at an me times in As you XXXX communicating a look you which that front? talk on to that like times about that kind category as goal. growth you a you’re at Glenn sounds Can touch, and to of double-digit that business sounds

Glenn Lurie

the or never term the word and that. sure Yes, make wanted for on we “sequential” clear we’re question so used to thanks of all first

A. we what head forward and that’s is Point David when give is, said, our we guidance so we Okay, said we can as the an announced, the said make B, will I and time kind going for based is that the customers believe return for Synchronoss that hope the basis. we deals and appropriate get XXXX and annual Year, going year that which on announce we’ll of upon revenue point this into the we is on line upon New will growth to the double-digit believe believe year, based end be deals before the having we based forward, of we put we’ve possible upon we double-digit across believe we to

Unidentified Participant

of the will then me your this guidance and when including on quarterly that Kind from call, you bake into a already be internally guidance. hear that, perhaps thank times earlier a will because and for that guidance is been saying, Okay, call help you there’s analysis question. better comments and was be revision second of deal, your maturity baked okay of that able then understand derived I’ll into made to team. well The deal to when you’re

factor as like So, about into are elaborate Can maturity of I team? a guidance the you and for know on your what internally to for deal relative that looks formally. you your intentional you to that you guys

David Clark

news visibility very news good it The a cycle. The news like, long is. have takes do go into is we we New to we our of business is, longer bad funnel as news, have good bad than Year, what sales the when we

really long annual fairly about strictly and guidance. we the change do put we guidance and issue because range the when one also can annual So, reasons quarter-to-quarter things there. a of in issue do hard we large also It’s think

clarity it. about So hopefully that how think as more you to gives a little we

Glenn Lurie

funnels. business One our thing it’s looking comments, I sales at with to think I’ll platforms add our David ours like In too. important four a

closed have, is have look you’re the understanding at what and deals every of those this deal you through, science of a know working, an art the that, past years not at close, when have also to so look we looks percentage do, going We what you in in what is so history percentage at a walk put have and David two as a have going been we since with years. what your said, exactly our on to for here upon guidance based give then guidance that’s high and always us, during going a when movement you the happened happened a deals you I’ve you’re year because what’s and low in of bit

Unidentified Participant

Okay, that’s helpful. Thank you.

Operator

gentlemen, are turn time. back there and Ladies Thank floor management you. to I questions at you. no closing further will for remarks. this Thank the

Glenn Lurie

that STI I much. accounting Obviously, they we again appreciate about and questions, proud what of conservative and very everybody to are very we’ve proud all very I make. for for you right comments that right of were I’m that felt very the today you talk said guidance the would the to made The joining in very, XXXX. was support the lot know very had, to exciting we the numerous do that was us We have but all the is a trend gotten met we thing Thank times good. that that today everybody’s fact the we also and we accomplished. decision everybody’s of the needed we that work management business the David and of we’ll Thank appreciate you we all soon. interest team, but four as gave do have as have, for and we a year beginning and momentum platforms to

Operator

today’s Have conference. parties a This All concludes day. can great disconnect.

Synchronoss (SNCR) 4 Nov 192019 Q3 Earnings call transcript