SNCR - Earnings call transcript Q2 2020 | Synchronoss Technologies, Inc.

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Leslie Gahagan

Good morning, everyone. I am Leslie Gahagan, Investor Relations Analyst for Synchronoss Technologies. Welcome to our Second Quarter 2020 Earnings Call.

Joining me here is Synchronoss' President and CEO, Glenn Lurie; David Clark, our Chief Financial Officer; and Joe Crivelli, Senior Vice President of Investor Relations.

During today's call, we will make statements about expectations for the second half of 2020 and beyond. and forward-looking include the future statements operations financial considered securities of results be and and laws about position, may statements meaning within federal of These opportunities. market financial trends, intends, are statements expectations. such believes, of by Generally, and forward-looking indications identified other as words expects, anticipates, future

cause we factors more uncertainty. results Forward-looking to Please actual statements as our are that information and it, SEC the on see based for on refer risk the include may environment filings differ. business currently risks to and

Forward-looking today, this a future call these obligation as statements or are on as based and to assumptions on result statements no information of of new we undertake events. update

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

during again the bottom Thank to the Lurie. session, screen. over the in today, the of at questions you function call submit located joining I'll chat now the us Glenn and turn Finally, for please Q&A

Glenn Lurie

you, cover a quarter. morning, and thank years second well joining and Leslie, for additional renewal contract for an the announced morning. a as first. for I'll It's five of as for Thanks, the this big busy us we morning. everybody, earnings this Synchronoss day earnings Earlier a Verizon

two decades. the can of last economic despite challenging on momentum the environment you a from the As we year start of continue see, build to the most

brings at adjusted $XX.X the adjusted build million on quarter. clear up well well back and quarter, Based delivered end flow, quarter. continued the the prudent to perform double-digit and from struck. margin reflects these we As Furthermore, at of all and free economy, exceeded $XX first expectations. million is the after EBITDA topped as revenue $XX a COVID-XX results, executed before EBITDA continues million, the we and able the result the in liquidity million robust an as The disrupt during the cutting cash was external financial to internal us cost pandemic which and EBITDA million of $XX.X of to of to execute end Synchronoss that $XX.X it

and issue our stage ball quickly we forward business our with by became a we help strong second the most than of transition hard months home environment. first alike. for for to through short been and paradigm has working headed It the us responsibly close challenge, to an customers remain we've COVID-XX The of and the to and to last are X,XXX reacted adapt, to global which testament five when have from We the sure prospects momentum our now to quarters results shout-out a that move work-from-home tools technology offices business, Most productive. discussing company Pat our and the adjust for navigating a more their which closed. team, Doran, I are the health CTO, set and employees best-in-class Synchronoss the over deals, long had work to overall new term. business are this give source evolve, pandemic maintain quarter the helped able new new two deliver been to as maintain today. diligence remain of entire to Despite and our is had want and made continued team

In addition, of reduction the our gone execution has cost well. initiatives

a financials. incredibly savings the $XX headed a more we able annualized will this the few the to CCO, Miller, commentary some this our key wins our he million quarter. to in cost occasion cost in-year to moments by track events million activity like and are now provide customers achieve when new was to on take of to in canceled. commercial work year. discusses risen has Jeff on $XX We earlier achieve ways reach to critical quarter. discuss announced the savings David sales proud This find virtual environment team despite our to team and customer truly being I'm the second I'd industry

with Let cloud. me start

experience contract Verizon Synchronoss cloud This incremental extension the our Cloud for Cloud Verizon, their they Synchronoss. shows with to and also agreement relationship customer extension including and let's to certainty see demonstrates cloud a new the the largest extension commitment Now, further We previous commercial Verizon personal solid substantially with revenue term increased to in Verizon's structure value to long shareholders and our and our subscribers. Personal better and similar its This agreement. and a of the because is delivers great a financial relationship user with secured Platform, our turn for five-year Verizon, subscribers profits their new Verizon at deal. and our which for solidifies terms to long-standing This and stability.

our with to to marketing our subscriber a Verizon Another wireless efforts of is up component sell Verizon extension to base. Cloud step important agreement joint their marketing

when an marketing cloud effort previously catalyst believe for and both and growth new to is customer existing focused predominantly setup customers. adoption are Verizon's existing move upgrade of or to Cloud, incremental and effort adoption this their us Verizon joint to will we dedicated the Verizon in drive revenue deliver powerful customer To-date, on be not flow have We a the as onboarding marketing forward. coordinated this device. We Verizon to degree, had, we and a wireless direct

that our augment to to relationship in access with us the areas, will cloud service and initiatives offerings customers other expanded grow quarter additional help provide which revenue. in us securing by Verizon's Verizon cloud expanded also continue We

plan are artificial business intelligence objectives additional offering machine our experience during these the Also, performance share and Verizon the the is regarding that quarter. projections. enhance ahead to delivered to cloud leverage learning We Verizon continued customer initiatives family new and subscriber to they details marketplace. and enhancement the Cloud's we for will as subscribers launched of grow during quarter a

extended with developments Verizon relationship, with the the long-standing recap largest to and our customer. our we have So, cloud relationship

We base A when our joint subscribers. customers our of are new to bundles add broader to customers to growing even devices. us Cloud new or base more a collective the setup customer upgrade switch Verizon have their the subscriber the agreement existing with and will flow potential marketing platform marketing Verizon new intensify organically added in to enable services Verizon

that new access beyond to for working cloud are have what We jointly today. expand Verizon launching proposition product are enhancements customers. and with will And we our will customers their we on the new initiatives value developing increase that Verizon

those relationship Telecom, developments now have Verizon, and bed there We be always of a these four we Proximus. was customers for – if XX agreements: had SFR, our with Verizon, and a months, with once all. about to past this have put legacy multiyear question should but cloud renewal, renewed With the strong ever British over facts, BT

we've our with offering of and Synchronoss also new this demonstrates preloaded Verizon. Assurant. a three TracFone growing launched cloud that our our as offers of customers value device for label Box seen to proven with and AT&T, in the been personal customers Again, OOBE our white proposition provides OOBE driving earlier or flow During period, outstanding we embedded. delayed devices customers feel an progress heard customers adoption with their successful the and AT&T Personal this June, you've for the with to Android Starting update announced initiatives list during are an we Investor quarter, our cloud talk launch had that that AT&T's stand. Day I highlight being cloud Since as carrier Experience COVID-XX globally. us with want on our enhanced in setup shared provide and the subscribers. where Out we about, cloud-related to has other Cloud

Now, Android will flow go at every new AT&T. upgrade and through OOBE the subscriber

and Mobile Regarding next of family TracFone, we the within for of for Cloud. launch preparing set the started are TracFone now with the brands Personal SIMPLE

cloud using launched of our integration customers we Pocket and Mobile more now with digitally cloud our Assurant, application the with customers, second to two Cloud devices. mobile follow. targeted launching base our of acquisitions, to to of campaigns on tools existing protecting digital their second and assets experience social Following highlight during brand customers their plus the new to Spectrum new broadband Geek Personal a quarter we're Across customer launch benefits and have their with and

the Verizon messaging, work venture joint Messaging on to our to continues solution Turning and with CCMI T-Mobile, Advanced AT&T, forward. Sprint, move of

of Tokio are than During status and as for additional will EMEA the additional in and into value, we here advent UFJ experience, opportunities. technology and the the Marine new transactions. we messaging continued provides quarter, our both of company we messaging launched grow Musashino momentum totaling figures. include digital with service two institutions safe Nichido may Marine that to Messaging traction Bank, transformation service that top customers. quarter, for We're JCB, and APAC during Japan this for Bank, Synchronoss a source AXP seeing our well the in to in Japan can advanced user good bodes The be selected XX us differentiates material actively enable revenue companies enhance secured providers example nearing in telecom to financial a only advanced An Japan of the of additional things Synchronoss called inflection point in Participating by be investigating an these common Airpost global and provided one the years those believe RCS-based multiple for the that CCMI, and new Nichido) is for pursuits. this & and the +Message in and stream We the companies with [XX:XX:XX]. mid-seven also advancements in application. come. More provider Advanced interface believe has and where This US contracts Mitsubishi pursuits, are a that engaged proposals new also won (Tokio revenue major efficiency

competitive Core profitable our e-mail Turning for This battle the during was a for expansion platform, win nice won quarter, business. very Proximus. e-mail with Messaging to highly a legacy e-mail we

analytics, agreement contract service provider iNOW, financial and nationwide our offerings. SaaS customer with financial continued and the of Management customers Moving a and sales in cloud portfolio spatial our financial These a spatial the Philippines. Telecom to recent analytics seven-figure include to the Digital with digital, onboarding integrated pressures opportunities have with Access new COVID-XX Globe multiple a new of most presented to management

of quickly per We value (XX:XX:XX) Pack services our to with delivered our partner financial this to the integration customers. with our later digital believe companies to the who base. enables future also minority which AT&T extension T-Mobile believe contribute A our Management, customer to add XXX the we STI to to Advocates, new for quarter, continue will revenue continued STI millions Activation Wireless enterprise year agreement work continue opportunities business contract for both expected activations and management its which dollars Under We STI. and certification, Sage financial in Verizon, is Accelerator commercial Technologies analytics new Through providing our on or executed year. and we for team, a quick second update five-year completed to the third-party Synchronoss. and sell audit with will analytics Fortune and business Care to follow unit leadership Sequential DXP lead of this growth

Turning IoT. to

as solutions While to slowed some from work. access Smart to return customer physical businesses interest Buildings prepare pandemic receiving to locations deployments, increased are customer of the due to our our they

building. our and remediation building Smart As health visibility broad be control wellness every platform, offering. pathogen COVID-XX, the already plan owner will technologies to array We operator a by and leverage their our which Buildings real-time of provides for and sensor solutions result in a exploring to to looking information inclusion of of understand

million enhanced We're overcome the very results. quarter with economy team's steady Smart making expect communicate those ability for During a of of results, during the we further financial $XX our and we million, the in and business And positive Buildings quarter cash our a second that execute opportunities, growth long-term $XX the their to and progress platforms. we David and and part very our details. dashboards. the application of by $XX.X of second cash the million, We we Synchronoss set each happy short- to it for process through will customer extremely these free $XX our on of on we with of one entire and basis. sensors providing strong role thank to the I renewed technician the employees additional insights while delivering challenging are in-year execution reduce number visibility accomplishment in the provide of our on to is ensure a new COVID-XX and largest proud new quarter, annualized won have integration during conclusion, environment to business million deal, making This every and team, all target five-year to multisite costs and liquidity delivered happen. continue on deployment sufficient and that, to on the the our our In our a flow the cash deals, we in stage great objectives, solutions David? financial With expediate built year. which to and also half our for

David D. Clark

in the us. operating in Thanks, results. with digital new million down our our Revenue quarter cloud, review of I'll slightly Glenn, as revenue quarter offset compared year-ago revenue and for to Universal was and $XX.X messaging were joining sun-setting $XX.X decrease the STI to second thanks, everyone, agreement products. by for quarter ID increases due in a the million,

months XX, $XXX.X six million of a first June driven to revenue XXXX, in million the was decrease $XXX revenue. in For ended XXXX, six by again the months compared digital

XX% Our the recurring XX.X% was ago. second with year of quarter total quarter the and second in quarter in XX% compared the revenue in first a revenue

additional noted will extension driven revenue amortized the contract, a $XX and over revenue served the contract. remaining economy. the in our approximately was approximately Verizon subscriber X% was is would on well XXXX and deferred the and on in $XX.X has under on which the Cloud to COVID-XX contracts, sheet A note million million amortized the Due balance provides million quarter, our of increase the that multiyear $XX.X of renewal in term of professional new now been year-ago at revenue date renewal. services of revenues. revenue have XX% quarters of to quarter, Investor strong be over in the the foundation us As compared second the by we Day, base

second $XX last discuss million our quarter. $XX While was the profitability last balance ID this quarter. that revenue continued X.X% from $XX.X the compared to million generation with of additional and between $X basis. agreement deferred Digital to is the year-ago per $XX revenue the CCMI to year's operating a was lower reduced recognition Total under million match increase, due quarter-by-quarter Quarterly the compared venture. revenue and joint the or agreement EBITDA cohesive non-cash $XX.X metrics. by million in work compared XX.X% million in largely $XX.X was non-cash sun-setting will new of Japan recognition in second decrease million was and revenue free revenue approximately revenue it a now in year, year-ago Universal STI quarter the the million forward. $XX.X negligible in the by the Messaging quarter success the place flow to a quarter, in result product. in going be on of the expenses the were deferred quarter I'll to and quarter, costs in of compared in The also to cash down expected XXXX year for second in in future the driven from million more

total For and six $XXX.X million down and XX.X% the first in compared six expenses the million that's month, to of costs $XXX.X XXXX. were

from lower and the XXXX were cost the we related the reflects period. The charges the results. goods that executed data the higher offset six-month period, expected costs reduction the driven initiatives company-owned our reduction lower three-month are restructuring and These total and by in cloud. to in cost to by depreciation, both sold in delivering current expenses of For turn in change was the largely centers which migration

in approximately was Adjusted call XX.X% have of total, and compared XXXX. prior earnings our in the $XX.X gross cost last we we of the targeted second in in in quarter. annual in compared Adjusted savings $XX second reduction in year's Investor XX.X% base, margin in gross a Day, year's at realize the quarter to million was second quarter of noted last quarter. million $XX.X second profit million to expect operating which million As from expense $XX to

profit year's management The in and due better period. margin was improvement second quarter cost this in gross to gross

$XX.X XXXX, XXXX. months million first XX, the of compared ended months For the gross to six June million $XX.X was six in profit

quarter with XX, sun-setting months six gross XX.X% resulted first the For product. Universal XX%, compared the Adjusted is digital ID double this of ended in decrease in and quarter. largely was new $X.X six XXXX. And reductions. was profit up quarter, last months XX.X% the this our June the of STI, than the The adjusted since million million execution by in margin digits, primarily second to decrease the in of XXXX, $XX.X EBITDA QX cost driven was year's period Adjusted compared EBITDA XXXX. last a the XX.X% year's EBITDA from in was operating from revenue, six-month to our well highest and second margin in

Glenn as fully later quarter-end, with plan Turning quarter. cash there in-year, refund the sufficient calibrated Synchronoss. the Act positioning several actions of in very evaluating in our which million In business cash $XX XXXX. liquidity taxes about provision a financing move The approximately and when We this And was which with fancy, sheet feel – tax and to $XX it We all, quarter-end. from the from we year. to when CARES to cash imminent, after is our XXXX, company the the companies guidance is we universal not drawn we're at top XXXX, at to of XX-Q Act line CARES carry mean expect in We're actively for provision $XX.X further our is Refinancing liquidity. structure enables discussed, the public Note our repositioning quarter-end, to filing good last to enables ensure markets will primarily shelf was with of call, XXXX, some the we bolstered by credit a priority the paid self file permanent in loss to utilization prudent. million no, this of end – back quarter, end marketable we've of of balance. objective, $XX bolstered The liquidity at throughout the us provided balance enables utilization adjusted taken $XX $XX conserve original which included a million. quickly statement, Accordingly, positioned the securities, but will ourselves at and On second conjunction in and alternatives month, operating which cost-effective quickly Citizens it and mid-July, our XXXX. liquidity we connection year. under the rather markets that generated capital remains quickly million move throughout that liquidity, way. move our a Bank million quarter net in if access preferred years the stock is received After future. million flow in cash believe and for the at of essential our to of totaled is liquidity EBITDA point to maintained our and is our that that mean

renewal contract. The $XX earlier, revenue million amortized noted range million this term million. remaining removes latter revenue I $XX of would EBITDA non-cash million be deferred over of Verizon implied will this adjusted half of the year. now be deferred approximately accounting Under to the rules, XXX the ASC the $XX from $XX As new

change over new we over million expecting $XX narrowing in $XX top guidance year only the Again, of of half EBITDA we the want reiterate of range the $XX non-cash I of now adjusted amortization revenue the However, the the million of the reason for the EBITDA range. are to quarters. to to the next million. of are contract, instead the Accordingly, deferred life is due of for two the

Relations assist team to a and Q&A, who I will Joe the company part since to Relations the in will I long Investor a Investor the to it for Vice with that day-to-day leaving XX. has Synchronoss Joe time as the served back and will him Before will and our we quite be of President-Investor collaborated turn Analyst. Leslie responsibility will capacity Gahagan, consulting want on take who future. Crivelli, open from a over well now want and mention half December Joe XXXX, of Joe August thank over past I an year and Glenn. I over in as Relations wish his for contributions the have remain

Glenn Lurie

David. you, Thank

Before to I open we want questions, with recap we discussed just points. everything these critical for

EBITDA, proud free internal incredibly and are cash flow external delivering of team we revenue, for our and that adjusted exceeded First, expectations.

Our drove prudent execution margin. cost-cutting double-digit EBITDA and robust initiatives a

and of new closing our We long-term multiple with with renewals customer have important of strength relationships demonstrated the the several deals.

contract our with our about obviously Verizon. predictability give are stability We revenue and should comfort five-year This shareholders our each base. very excited extension of long-term about renewal

access morning's have related in to If expands base. Verizon, you have relationship we with release this this to not which Along website for press customer with the renewal, seen our announcement, turn information. expanded Verizon more visit please our

OOBE (XX:XX:XX), new have agreement we accelerate Android and revenue. AT&T and well. the to accelerate in we believe device from to cloud we'll to of market devices growth cloud deployment will as At begin cloud having joint believe stage the the moving time, our we flow, with same new embedded a revenue We AT&T security enable that are and and

for All for of Leslie, in open news second with this, queue? along will represents anybody do the that, we quarter questions. and shareholders. results, company now good I have strong With the our

Leslie Gahagan

is seems with have Let's It What take ask off directly. length question might extension? contract average I'll go of the a ahead just difficulty. the technical we the and Sterling Auty.

Glenn Lurie

extensions, Sterling, years. five we extension three And Verizon upfront with and the are the very I some The are were average obviously, of some mean, extensions? five. multiple years of being

between a three of the extensions, other five discuss and long how on think should assume shyer want don't I to years. our some and little are customers extensions you are, the but

Leslie Gahagan

Okay.

question is Mike from Walkley. Next

Glenn Lurie

you are. up. Hey, Mike, is. There saw There you pop he

T. Michael Walkley

Great. Okay.

this... format for New

Glenn Lurie

patience. future us. kind so and just with Yeah. guys the working think Mike? We We (XX:XX:XX) you we appreciate How you, appreciate of guys' Zoom's are you

T. Michael Walkley

the everybody's doing I'm on well. Hope well doing call.

Glenn Lurie

you. Thank

T. Michael Walkley

Yeah.

first strong So the the or cash is flow me can cash renewal. walk aspect of an just steps in Verizon free for I question cash flow? with for quarter the you Was strong there that maybe drove guess upfront on the through that the

Glenn Lurie

answer that. I'll let David

David D. Clark

Yeah.

Glenn Lurie

say Let from there's cash that. No. no me

David. ahead, go So,

David D. Clark

Yeah.

So the is obviously and quarter Verizon externally. certainly second renewal cash and liquidity was just management both EBITDA obviously quarter expected, this no second driven and cash internally Really, quarter. there stronger was good by the in

Glenn Lurie

Yeah. And I'd add, we Mike, that to David the going -as seeing. and what team that on already did already fantastically that's decisions some a you added just you're remember, team fantastic when job. on hitting. cost-cutting the we Once executed The we and COVID had with made the obviously we that year. cost-cutting started has We initiatives

T. Michael Walkley

have while line follow-up And I Great. guess a the I here, Okay. question.

Glenn Lurie

Sure.

T. Michael Walkley

OpEx is more reduction, the it on expenses out where's it the levels coming If trends sold the – of strong how on just we model? about so, of coming more about cost we out of think line? operating going should or cost think cost Just or Is cost should forward? goods

David D. Clark

take out the be across the We the a quarter probably will took down we'll kind across our flat the of out Costs our board. components is of where the the be reductions because cost cost of the that's majority. Now, will little cost larger year by costs board. to that's for largest where is remainder expectation. and Obviously, slightly business are

T. Michael Walkley

see kind Android of with couple AT&T trends the some talk base follow-up picking when in with you (XX:XX:XX) your Great. a think the about Glenn, dealing a timing, the the you And up quarter? on slowly smartphones in just fundamentals subscriber step-up Can can (XX:XX:XX) operators. And you the months? question just over and based some maybe for anything to cloud earlier you'll deals, of some that on of now in that start you bonds these of off the then, like share of last

Glenn Lurie

carriers closed Couple in, the Yeah. reopen have Carriers Actually doors. good appreciate strong we're thing we're that in they're going to had right, stores. obviously even this that of you're think some still announced that. about environment not absolutely to results. the things seeing is living The

said, our plan we're of with ahead As we customer. largest

One the enhancements decent actually we've we've led very of these been these with but with churn seen that adds, them on gross have is customers. drop reasons to that is, way obviously down also the working

candid on in AT&T, all. make how would as when have we those to Android So, devices. the we about in as And based that with asked on that pushed the focus actually our yes, And second year, executed I saw did of and you devices working increase as cloud COVID. things then Verizon, their got announcements as majority not we my were some the to very back to spot very plan be they've marketing always some you with said around But we with are of but doing, AT&T we in announcements exciting going us. they're we're just in are far work hoping with customers comments, a half good which

So quarter. seeing in the third here to we start that pick immediately expect up

that mean remainder the we a continue for I'm of they the for that opportunity, optimistic This see opportunities the think carriers and year though, to I I Mike, XXXX. opportunity can trend very is fantastic understand. to is very, grow and revenue. are there. the that looking

T. Michael Walkley

Last question here. on and Zoom then I'll pass the call

how engage deals overall, just that's to maybe because of out maybe environment? IoT, remote or little Just, got customers sounds any been about pushed some out is bit Can or sales it's face-to-face. in kind some tough existing digital, for a just Glenn, pushed this tougher things interacting lost your with you it like

Glenn Lurie

Yeah. I'd tell you this.

First we of all all, we haven't know. lost environment anything. is as The

host us every deals analytics The and is products a the about very, and as or my well. to done Most lot with away, hear side continued business we as at environment, Mike, normal. is financial I performing all get about would very cut we of all business tell is how to a in I they people, think platform actually it. take that very said. talk digital have company quarter it as on work. the twice we that for about make have touchless looking well. and but And future our that numerous as in of continue work we've to to digital. spatial are is that. this to and you, got we were us Digital The in do is well doing grow our you digital is it You've whether hope new digital experiences. business when comments, hard they're exciting didn't a doing future work digital the DXP, but side, during going I from about the the opportunity And future that

of IoT candidly, talk healthy to they to a make we've the are that well. have a on attached. smart, now is no how But but platform building. And the SaaS us the question, learning healthy. future not people without and And IoT healthy how with it's analytics we and of building; machine about coming can it just smart flexible IoT their not extensible can they that's side, done time and building lot On side a make only it's real

that, safe. be The say real-time go but actually we to think think do would I have not a work to forward, in we've – other people going do competitive remediation believe I'm want a very pathogens offer. that as there's I can help that thing And venue, is my and it's we're so going of to just to we aren't up. about platform we've a enthusiasm around so And I a building, restaurant know a gone talking – to do, got product others, got we're a we IoT And and platform has building. that,

T. Michael Walkley

taking strong margins. on for questions Thanks congrats and my the

Glenn Lurie

Mike. Thanks,

Operator

Okay.

Latimore Mike Our from will Northland. question come with next

Michael Latimore

all. you there, Hi

Glenn Lurie

Hey, Mike.

Michael Latimore

Good to you, morning. there. Hi guys. Good see

So obviously. Last great. on and they're deal, also that guess Verizon fire. kind these Congratulations they're set quarter, month deals, renewed on that like the the a two I was of time, big before on or

this guys renewed You early fairly here.

Glenn Lurie

Yeah.

Michael Latimore

do what continue kind of you talk renewal? was this the to Can through catalyst (XX:XX:XX) early to

Glenn Lurie

has But massive they're how obviously about the been the for customer. things. Sure. with as going continue all that time dollars not ours couple look a look and One, it carriers these outside the I and spending to as as and for whole us would to for many a then on and relook to of us, to down up long mean, and sense that agreement. having is – carriers Verizon. (XX:XX:XX) think as I made billions important of at product years. success is Verizon opportunities. we're XG, very them I a the find of of tow for they're talked them with – incremental relationship largest This for amounts obviously, sat for We It well. speaking going revenue customer been our we've to future CapEx, the Verizon just

which heard we in also You their we them talk really fact are majority great, has us push we've joint we new a might ask have for do me for but it and that opportunity that been back and the that exciting have now go talk flow much base, together. obviously the for success and we if which about time, and about do to to the had to with done is going so more first upgrades agreement marketing now of startup because we've

want of of Our Cloud piece we have take what they've have we're excited is the Personal by and the mentioned. customers, a And Platform that wanted this having way, all we that I second other this customers about to this platform. to that The beautiful do our initiatives obviously conversations with about advantages. those right? Obviously,

work with And our so customers that's individually. how we

agreement. sides, opportunity go was was future. to where really when about Timing in catalyst. our really And want we about first the both that's the the not so ends; elongate the And we're to it's agreement on wanting do

Michael Latimore

know influence quarter this Great. And about I about roughly we should million this year. from $X talked rec think a just you a on How the next standpoint, rev then Great. rec? rev from year –

David D. Clark

So been revenue past over had we've the deferred the year. that that the been years by We was this couple have would deferred basically of out recognizing specifically amortized revenue. that of end

the remaining the contract of life, renewal, contract extended or say. result a new As gets I for the it should

for deferred $X contract, forward. will from each revenue quarter this our going in So under be million runoff particular,

have It's change. the million out. would to two not the going recognized recognize that's be $X to There in We're going next pushed So of been quarters. each that.

Glenn Lurie

repeat important times. David and really a it This numerous said Mike, obviously Yeah. non-cash, I'll right? is

David D. Clark

Right.

Glenn Lurie

how David's are from said, think I at then note. So outgoing going our amounts all it's not the to when an important, comments David simplify it's look be. as think EBITDA total important I folks as and us cash. impacting you should do really well. where for negligible perspective This And really out (XX:XX:XX) think you to about

well as same the lot a time. at up cleaned So,

Michael Latimore

Great. Makes sense.

forward, then this process have the (XX:XX:XX)? every going go will you OOBE of did pretty much Android Glenn, through that new kind they're subscriber quarter then, (XX:XX:XX) say and So exiting

Glenn Lurie

and nice devices Obviously, about get every. Not – a wrote Yeah. as actually by that out. you were we coming it's device note the

of devices upon more move out based new to launches. their up We will and will see that device coming continue those

yeah, flow we're excited we're to starting see about and So, that it.

Michael Latimore

one. first And What do the some On just there. CCMI, lines that then kind official relates there? maybe service when expect business Great. last of and additional you mentioned the to you does –

Glenn Lurie

answer CCMI. and Yeah. for and at Well, as it launch. you appreciate question, the know, as can't and that I They've far leave said the speak as Mike, we'll we XXXX

with as far I we And and other asked and working have time. with for looking They are are. are help can other agreements at is that's As in picking hand at in all what really things, in this situations strategies business, them say hand. which those their yeah, point

Michael Latimore

luck. Good Thanks. Okay.

Glenn Lurie

you. Thank

Leslie Gahagan

And our all of with concludes that, that questions.

Glenn Lurie

Okay.

Leslie Gahagan

that concludes and call. right, the All

Glenn Lurie

thing, everybody during team. we I our want forward half very and our the we the to Pat, about Officer, looking prudent and results have customers. second execution, the The able the this Commercial want in. proud they Thank that environment to the to on team our last call of I that I'm taking incredibly deliver coming And can, of very thank one are you just Leslie, again I the year. Chief its we for were Synchronoss CTO, morning. proud has again much. guys been thank If for that of driven. the Jeff, care their results teams are to Very of

David D. Clark

Hey, Glenn.

Glenn Lurie

Yeah.

David D. Clark

asked about about from the question Real a quick. carrier of Rich global pipeline to want – changes he prospects. know Baldry any

Glenn Lurie

Oh. Rich. you. Great. Hey, Thank

Obviously, our as we've bit as had changes. earlier, pipeline things – strong going not as obviously to lost I far, a changes, and time. are not pipeline said pipeline growing. So of is more We take lot really a I say business. would still far

We events are way think candidly and We've we to the change our be industry canceled. about having be how pipeline. you seen drive

We putting World already going those have CESs be digital to obviously, CES events. a the expect a hard going XXXX, that of it's are announced the going the world, world of Congresses time And to the into event. Mobile

at to of carrier looking partners we're other So looking at our have with conversations ways executing and actually channels other ways continue with to partners, new carrier distribution.

about I'd all of those in our good now, we are. funnels right things play, say but are So where feel

David D. Clark

Glenn, Sterling question. more one has

Glenn Lurie

Sure.

David D. Clark

not on. He's coming

Glenn Lurie

We with Sterling... up follow Okay. can

David D. Clark

we'll with Then up follow Sterling.

Glenn Lurie

...next day or so.

Glenn Lurie

technology. Again, folks, appreciate the new

with any We and great thank over is of to very are and to next to you But speaking think I joining Zoom of all we're days. forward couple for much – going continue work look this. the you with

Operator

End] [Abrupt Goodbye...

Synchronoss (SNCR) 10 Aug 202020 Q2 Earnings call transcript