SNCR - Earnings call transcript Q3 2020 | Synchronoss Technologies, Inc.

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Operator

[00:00:01] Good day, everyone, and welcome to the Synchronoss third quarter Twenty twenty Financial results conference call. A quick reminder that today's program is being recorded. And at this time, I'd like to turn the floor over to Todd Kerley with MKR Investor Relations. Please go ahead, sir.

Todd Kehrli

[00:00:18] Thank you, operator, good afternoon and welcome to synchronizes third quarter Twenty twenty earnings conference call with me on today's call or Synchronoss interim president and CEO Jeff Miller and CFO David Clarke.

call a Jeff few the like David, turn cover to quick I over and to I'd Before items. This release afternoon, announcing press its third Synchronoss quarter financial issued a results. com. the at available company's is on Synchronoss Release dot website all This call is page on and broadcast live of archived the webcast be investor interested Internet will over the the parties, the being for relations company's website. that business to call, management certain factors today's going everyone the will influence on are that remind to I want likely forward. discuss that historical forward opportunities, facts, today regarding are long term market comments discussed and our should factors Any not looking particularly prospects considered be statements. looking performance. about the forward company's future may of expectations These include statements plans comments and

call, statements or And thank which these all our they looking that publicly risks Xth, encourage risks, on XXK. or subject actual FCC any statements of revise most result expectations our contained today, recent for forward number and could undertakes and of or future the here to listeners November twenty description filings, materially, the Twenty information, as changes Forward looking of uncertainties complete of events, and obligation our update of including a whether company review to otherwise. in statements results are you a cause to this no to a and for go as new of

end, our in to related its said Additionally, between period as and throughout gap reconciliation the Form With to Today's the the report the current Jeff. this present call differences non release. that and call and will release on between be describe discussing two measures. certain non-GAAP reported over Gap on earnings financial the the X-K reporting the

Jeff Miller

everyone. and for Thank Tom, joining us good today. you [XX:XX:XX] afternoon, Thanks,

the in carriers XX offerings the cloud brands. their TracFone of and take our AT&T more you financially. expand saw anticipation helped messaging by provider following strengthen weeks quarter leading role results, in to as we've beat last board company challenging carrier platform was to change closed Glenn's of during instructions contract extension continue our quarter, grade on the cloud the know, well five to Synchronoss of digital not did our year and president ago, a unexpected leadership, solutions. and all a skip and position Despite in to for recognize future product EBITDA third the to I from revenue functionality CEO messaging with directors the steps and clear time I'm the the based execute personal quarter to US seven sudden be I of than you the their we the In As the that million Japanese of interim subscribers. new listening. offering to CCMA messaging cloud And pleased additional continue launch front, first and of we third on [XX:XX:XX] own We the I added to myself, as solution to messaging elaborate with and advance quarter. background like On know in I their we features I'm our we shows a appointed departure to in product the performance many continued it third on more that environment. would will we little announced call. report a provide I a Verizon as adjusted a the before cloud result, to happy this during

relationships. past chief commercial actively the I've been and chief our team client all and synchronizes have our along with served marketing as expanding of years, officer For two involved amazing

late in that led Synchronoss, I at commercial last major was our contract lead the wins year. secured team time as including announced contract have a we my position across globe, During the negotiator CCMA

America. manager XX spent years general for corporate recently in vice held most I a I position president of North and at Synchronoss, Before where Motorola Motorola, Mobility

smartphones Motorola, agreements the with the all back Motorola and Prior franchise time And for team that that continued the and was including of various XXXX. negotiated operators, launched Verizon a XX relationship served I my Droid leading products years. next launched North to During with numerous seven American with sales, in for leadership years and AT&T at management. I that, franchise a and held marketing that positions successfully the in product

operators our my deep carrier the not sales XX delivery DNA, so and experience customer decades businesses. organization see humbled it on extensive been teams, And our the throughout background starting solutions across I'm joined When and and the organization, named that As customer why marketing years great have today. past in CEO. the on carrier carrier teams relationships and built delivering been to ago, synchronizes enterprise long however, across is who of collective [XX:XX:XX] have I behalf demonstrates, entire relationships that's I saw runs engineering even and product globe. fixed to more I president years.Our and by and have strong line opportunity been two unique and organization, largest Synchronoss, clearly with with the interim for mobile the management I provided the facing have our Synchronoss history

five operators subscribers. With one these to to better global Synchronoss and best percent one and US reach recently for there's than we Cloud, billion by five globally. succeed present, report eight twenty addressable personal in customers alone Telecom point and base. carriers from Arthur the total British a published telecom cloud US D. user the in twenty the market personal to At like cloud in is only help billion forecast service twenty position no nine their AT&T own fifteen of delivering services As Little, the to dollars Verizon, personal cloud

Adopting personal meaningful revenue fixed growth subscribers cloud access as Only In now line wireless XXX subscribers. solutions. cloud fact, of these small our our have would over streams synchronizes to operators. Synchronoss. as to million are create There contributions mobile eight customers fraction and for well a

venture US Japanese as as the in relationship, the I'll the on messaging opportunity call. which in later with touch well on joint have a carriers in also We SCHEMIN our significant market with

product CEO, pragmatic I leverage portfolio. advanced take and in cloud carrier approach intend resources As and focus the across our that great I synchronizes messaging highest growth the in return on see will give the pipeline investment. to many opportunities platforms our opportunities a our addressing us on we

coming although our least, line expand top sharpening a the structure is long I drive to is EBITDA growth looking focus be for on execute profitable also that certainly business top am sharing on establish growth will I to my This lines not margins. a long much priorities look and in Synchronoss. run details plan can potential. of not focus term operational there the in one capital increased be can [XX:XX:XX] to Last more that I forward we and the continue of but highest for moment, in will we search I our We at on months. term on believe this adjusted interest our shareholders. a to investors growth the the believe long discuss that have of improvements, I are assure that can we With the in our solution unturned best leaving are stone in and no

of of contributed EBITDA on opportunities delivery first point four of sixty quarter, customers free of quarter. focus more approximately an details six dove quarters our to continued million, adjusted the we and five twenty. of flow the not million have into adjusted eight point revenue the through third adjusted In three adjusted did eight one some the Not due million any twenty one pandemic. Twenty point EBITDA timing, although the surprisingly, cash let's or delivered impact of of dollars EBITDA to million we've profitability on reflects on our and covid decision lost Now,

agreements to to of fact, new continue Germany, current we kicked CCMA In activation pipeline offerings domestically providers, with enhance one the Throughout from Vodafone capabilities our operators, quarter, including the covering agreement the internationally. our platform. continue to we added licensing We garner sales in agreement during with we both a a sign services to and finalized solution and our agreement our the quarter, interest AT&T. as Japanese an our TNT a to our off of new commercial program new activation

global [XX:XX:XX] business. contracts expansion renewed we is of as as joint on on testament the This of year place, agreement as also renewal track, customers continued to cloud the and subscribers Verizon This for to we also our cloud Synchronoss. cloud value customers ongoing represents agreement new August, foundation of a Verizon assurance relationship the the puts will The now our rising Verizon, year. multifaceted our strong we that third number the agreement while phone we renewal earlier quarter. the offering. of marketing the cloud a closed have AT&T four support a includes our a multiyear this As in contract adding this With in with platform and with to length renewal using the increase in discussed five a of believe relationship well

personal third that quarter, can its the cloud can AT&T offering. branded advantage offering that service to advantage This launching the eligible we millions of AT&T take synchronizes take expands customers. phone go During the prepaid of of its AT&T expanded by subscribers cloud

As AT&T working due quarter but of in the this in beyond. reach the rollout covid, fourth now and the Analyst to our experience product initial we Day, of with we're discussed during them offering did expand to delays the some

mentioned Japanese active population the and further forward and brand's the capabilities. continue to to growth the during its messaging quarter quarter, move licensing the alone straight to business. Synchronoss TracFone acquire wireless solution, penetration Japan. combination ARC's expanded advanced and nine deliver to [XX:XX:XX] believe also functionality successful We offering a revenue excited additional to of the offerings carriers million During talk We the platforms enrich cloud about as hear We're SCHEMIN from that messaging user accelerate reflecting subscribers. messaging our to advanced Verizon's also traditional their in third has our messaging here Truckful this US cloud the talk recognize ball quarter, orders in personal straight total intent receive for would continued

a messaging be the the for One Initiative The messaging growing to billion twenty Square. believe in pivotal formed significant keeping to see nineteen total with year people the worldwide the opportunity in offering a according hundred for GSM, we is role seventy seven such, Sprint, the play subscriber by Japan. market to engage Mobile to connected and the in According a as [XX:XX:XX] adoption in Common a analysis services recent reminder you, US and in advance CCMA months venture globe continues consumers. opportunities fifty nine Verizon. our forecast percent joint CCMA scale brands is a T-Mobile for role As four our twenty, this by AT&T, for around represents first and asks opportunity that opportunities was Carrier advance for end Messaging annually stands Twenty annually of is the four for messaging we're that pursuing As times Synchronoss additional alone. the actively We of of by to and increased.

team full quarter continued priorities by EBITDA achieved first the year forward, summarize for has going and to So the delivering nine our to adjusted months has that Synchronoss the guidance. execute our

as customers commercial sign remains the we expansion new multi to continue the Our strong business and year expand during our and with brands cloud customers existing agreements quarter. of

results cash messaging adoption market a continue to focusing on the but support the thank in turn this Japan, We're opportunities introduction growth in their our to overall advanced on that term the leadership the provided the We of to long tireless future amazing team and pragmatic people. least, I honored systemize am by during the steady efforts potential for recent delivering profitability business call focused they've entry I'd to most I of a for employees and David, progress Synchronoss, making we and before preparations remain taking over drive to Last structure future market and our with to are benefit approach of the capital lead positive for from for flow. the in US. like in not transition. the these we establishing

detail. in Now, I'll turn the more call financial results the to over discuss to David

Following David's remarks.

for call We open the questions. the call, will

So, David, ahead. please go

David Clark

the we investors the to like for twenty write Jeff, give comparisons. and otherwise, your on unless nineteen revenue down non-cash downs over thanks revenue of listeners remind that for numbers those our third excludes gap third as distorts to quarter results. quarter third the non Thanks, us of focusing everyone year the XXXX, before [XX:XX:XX] of appropriate measure six twenty of million the analyze quarter dollars I'd year most be and we'll joining in write comparisons. Consequently, numbers year year believe, the stated non-cash unadjusted which over

six deferred call, term twenty contract announced addition, the that now approximately revenue These renewal million of expected we'll million fourth of AFSC be is the the approximately quarter third ten unfavorable a or per last of and Verizon recognized In adjustments in of of similar for than over of rules per dollars quarter in second amortized and revenue the year had will we dollars five both recall be million across Twenty impact because six the as on half to quarter. accounting five less a dollar impact and non-cash renewal have a been would that going Verizon forward. that have the Twenty twenty, EBITDA

product, year adjustment is sunsetting Now AFSC a decline six of as the seventy and six million, percent Verizon universalized last has in due six dollars dollars non-GAAP the revenue the results. twenty cumulative six due dollars over the was to treatment [XX:XX:XX] on of dollars point the year. year. business. revenue result at been the revenue adjustment of quarter adjusted would Revenue five sixty eight approximately three of Verizon for for point accounting the The the lower million percent of per three point deferred seventy year our million, Without point higher revenue been six from largely third million, down our six over million to or partner have renewal, twelve two activation accounting eight dollars renewal approximately year revenue decline which to

of ago, two XX Cloud quarter, five in thirty six contracts the year customer in noted quarter. foundation quarter quarter third provide as which twenty Our a for Without third compared in eight revenue and dollars sixty of ago A increase percent the half on percent revenue a the the Day, the and and nine XX of point the revenue four are approximately a two multi-year percent percent and recurring with of million we the XX year us five of our in in in covid-XX nine twenty, our seventy percent total seventy the from first XX quarter five nature, that was Investor economy. of approximately quarter point nineteen. the base revenue twenty revenue served third would second be has well quarter. strong percent and AC adjustment, million to third is an cloud forty forty percent, dollars million, dollars decrease compared

economic in of growth the subscriber new see to continue We spite uncertain environment.

revenue noted due to lopatin to the CCMA, may and in reflect this dollars six decrease over third consists quarter, of thirty to down of quarter. a same expenses reduction twenty the dollars continue for to twenty. executed listeners professional million percent professional five those in we services in million and point in point seventeen third revenue the compared million, annual cost not revenue a reduction million as ago advanced at percent, The product we and seventeen level decrease.As and forty and three to dollars realize digital license can had in revenue our expected five We hundred from recur revenue that launch to six point revenue in twenty we year half quarter. in services point like continue costs year. the approximately expenses twenty last also quarter we point [XX:XX:XX] Japanese the million percent million going received calendar our And sales, Messaging at initiatives revenues in the earlier, costs twelve to of of Japanese eighty costs, is relatively sixteen activation were incremental in which third add year, one features business. dollars dollars of moment third Jeff Verizon quarter recall, a dollars receive the the down universalized forward. regards additional quarter, the in recognize last their although a nine total year. dollars one from targeted in of functionality to is We're which two dollars from and This Twenty seven would quarter, year five quarter half billion revenue carriers. to sunsetting be mystery remind preparation million I sales With compared we three reduction primarily perpetual the lumpy license of to operating and Total fifty and compared in we

nine would dollars the percent, and the twenty EBITDA million six would one or up have And the aforementioned one deferred point or percent cost eleven approximately We six and dollars three revenue last gross Improvement by in or point quarter, six the first to the fifty million four improved from third managed public forty operating Had percent, one are have been point point for slightly been margin point six on the year. Adjusted expenses dollars in our basis. margin related dollars of thirteen last to meet our Twenty quarter dollars nineteen. in of quarter. fifty Justin data [XX:XX:XX] driven quarter last to adjusted approximately third million, and gross an centers thirty benefits margins lower were quarter to six in of two on of AFSC compared in to one exceed or from costs year, nineteen targets all compared adjustments, migration by third company profit the it point was and adjusted five quarter. forty reductions percent with from million the from was revenue quarter million track these third percent, was the seven million, one sixty EBITDA year. point adjusted percent one goods not point dollars eight two sold cloud. percent XX driven time in of to hundred gross percent up year's eight EBITDA in three to

Twenty collections to This compares six driven to third point point in the four quarter. up Turning in point changes cash and Twenty a cash six nineteen. million cash the three flow dollars forty dollars percent, two the capital. strong second by quarter dollars dollars statement, sheet and of other totaled primarily and working eight million, balance to forty from twenty six equivalents point million decrease million eight

covid-XX. economic payment quarter of ending balance to as our Our previous related decision uncertainty defer to nineteen third manager the a twenty cash bonuses reflects result of

position, imminent, We company be And have for preferred the and million begun filed solid cost we Synchronoss narrowed not is last long guidance while our of there recall, priority believe paying this a If market to alternatives. way, dollars. of are is previously in guidance evaluating actively those stock in performance we EBITDA resulting range, in the or our the to a top capital effective top due with permanent twenty nothing provided allows earlier guidance. if bonuses you to to fourth twenty the moves the our Refinancing to the quarter, quarter. in term end [XX:XX:XX] opportunistic Synchronoss. our turning we five structure financing shelf the and quarter we Recall

taking generating Given and guidance business, twenty profitability. resources future growth by execution a the value shareholder our and on six pragmatic have in are our return to and approach the to closing, the potential the for Jeff In lines dollars. our most highest EBITDA of continued mentioned, are we twenty business focusing third of annual three quarter, as we to range million increasing

focus our quarter third highlights Our EPS cash on for increasing profitability improved and adjusted profitability, sharpened the flow.

grow going expect we of EBITDA these forward, to efforts. Going basis result a on as an annual adjusted continue forward to

XXth. Conference Virtual and relations Ralf's investor front, will Technology be in week, Lastly, participating we on the this XXth the Investor

back for with If turn please to schedule visit call participating you Q&A that in And the I'll over operator us. the the are event, session. now a

Operator

And the to turned from Connecticut do ahead. very And much, one [XX:XX:XX] and for any first off Mike we Walkley. your telephone Thank star can. so pressing queue And ladies you join sure gentlemen, you Please your this will signal questions if the And any make questions, by one have have at function mute take time. go you you on if sir. just keypad. please star

Mike Walkley

from one [XX:XX:XX] thank to Jeff, staying with interim a on you and becomes the it's you team well to for just everybody's healthy hope supporting your doing of transition any support strength customers time. them. here. can share very Great, CEO, provide ongoing it for as the your the call of the permanent about much, and the short I and know been promotion you bench Synchronoss congratulations CEO. kind and on feedback us Hopefully

Jeff Miller

thanks [XX:XX:XX] Yeah, thank for question. and the joining today you Mike, us for

been work our a in on ready we Of and to were felt first similar as personal as place I imagination. to our fact thing the there to interact employees continue them, teams want for and do support day they when for that make our to execute do Synchronoss It's our Jeff Miller And we takes our have to It's forward on continue very change course, not move by any serve true focus we're serve are that to unexpected clear the support is on plan. our customer we and and every support sure while quickly on. to stretch deliver focused are customers that and was is that plan to customers. and base. leadership, an that from we with that change incredible been path continue the of staying and long from and feedback recognized the felt organization I've the

serve So And way direction the the employees, same heading. it's very with constant support become had be used we've now they be opportunities making rather we're we've clarity been to from been to and communication we we've given that come, provided much accustomed. them, that the asked for been situation for on questions focused in that them great have who sure customers are that our to our on

Mike Walkley

help return seeing you, in resources approach you're or know, a and for priorities question up over And costs you emphasize you but drive your you some taking there a shareholders growth, us need where with Cloud I about and to [XX:XX:XX] the pragmatic focusing businesses, script, from think comments follow highlighted it save just are for of the maybe area that. generate cut highest maybe to on just the portfolio asks areas your even kind order to rank clearly time? to

Jeff Miller

the customers the have there, for because we the in and two dramatic are customers spent providing the we the obvious, expansion that the the the going on to opportunity time we rest discussions penetration, Once cloud in customers and their to customer, our with most messaging know, businesses we what the obvious. you are Well, that general do focus reasons And rather we of cloud the and customer we're as priority sort evaluate [XX:XX:XX] serve. they're us focus universities. we in a place heavily point will and they serving the to today is cloud is are world. market today not the no that out both because as try services those their of in the are world tailwinds that for growth to There as messaging the well, the are there us. But messaging base. of natural one in And high we we of going

Mike Walkley

are it over customers [XX:XX:XX] update just delays, progressing in on or of maybe you you cloud, terms Ok, with just driver? TracFone on been know Phone you of things together share coming some couple can a potential but on that growth COVA And see next I thanks. quarters us new there the there's just AT&T. like how uptake how

Jeff Miller

phone the slower launch, launch cloud the is bit the population that little to progress And that very it's available and broadly concrete related AT&T more the early, that our momentum devices be AT&T total a is base. that. here, a to where had is it's early covid has brands AT&T of than the had step, to And product to support to new phone due days, market to we of And of clearly forward we cloud prepaid a very on the one and and with we're base. off devices. both straight expansion course, another we anticipated Similarly, encouraged those wireless success, were as things users the the although into go for also we've by with track expansion And great talk expand. happening of all also hoped will expect that with further or embedded just continue offerings to start phone Verizon treatment track continue into the mentioned, only relationship hope their well, Verizon AT&T consumers future cloud Yeah, and [XX:XX:XX] of further segment momentum.

Mike Walkley

that's for think to cost controls. the great I'll execution strong good on it. I and [XX:XX:XX] on me pass see it's David,

driver Just down business mainly you're slightly and down you for sequentially. terms to main EBITDA? you little it messaging QX Is timing kind adjusted sequential a If of lumpy the the against maybe you. in little you quarter step the remind above one left bit the strong is like QX that know, are due us Thank a in in executing That just with, terms of QX. just of that. some seems plan in implied revenue guidance in that of a maybe only where

David Clark

downdraft down on hopefully bringing [XX:XX:XX] being Verizon just of a continued and around Mike, combination revenue a you're yes, adjustment being around right and EBITDA. bringing that or six six because Yeah, then, of of the and conservative down expectation

on. you're that's So right

third probably for there sort know, expectations some putting in of license lumpy You quarter. we're quarter revenue fourth the into that not our

Operator

right, on with Latimore All Capital Northland Markets. to move we'll Mike [XX:XX:XX]

Michael Latimore

of coming kind did deals paused delayed and the was really right safe, [XX:XX:XX] that sort Make or quarter, as any see business kind usual? change were I or with of CEO you guess, the a of it

Jeff Miller

the and dividend. sort no whatsoever. the Customers Synchronoss. how that there from day depth know Synchronoss delays the strength who I were are result were mentioned, were every their a And paid pleasantly that exist the served There of of deal with surprised as of [XX:XX:XX] by that as relationships transition were just they and if organization anything, they just we

we operating miss and received really quite it on focus our in was we move the were from who here for that didn't that customers ready And much performance QX. that and in our results to make a we So And future. on feedback beat. sure the candidly, was very

Michael Latimore

[XX:XX:XX] them there to work her of And like guess. along? know, to side to any obviously AT&T on any that has a fronts key help AT&T, kind development on on then number any Synchronoss product important Is forward here, are move I initiatives or fourth initiatives there see your the You quarter? do, moving good of in

Jeff Miller

No, of on subscribers. among adoption place, and [XX:XX:XX] they a the focus partners recently, is solution the their for both It's is portfolio clients. infrastructure of with the work the operating prepaid subscribers that of matter more the cloud postpaid things customer our and now in of AT&T the

Michael Latimore

messaging, And [XX:XX:XX] kind mobile of this or does the? but guess the business then TENGKU, the the subscription the in in within of I mobile piece or how Great. break probably within e-mail do out you

Jeff Miller

Another solid overall, specifics we any don't have don't out. it I because quarter break [XX:XX:XX]

as was contributor globe. that, strong thanks platform overall profitable solid as you but know, continents it's set were engine, of to supported growth interacting three aware, it to the it's, Like that not with it's a profitability. a a you're broad, we with. solid from diverse customers to all email contributor around the of business. messaging And enjoy operating performance, our We really continued Beyond just the foundation customer base our

Michael Latimore

continue the on time was about [XX:XX:XX] Ok, to last last one EBITDA. guess you to great. And there made just grow

What that. I And year? said you next reference for a was sort was comment of guess about that that think I to?

David Clark

absolutely. Yes, Well, yes. yeah, [XX:XX:XX]

embedded And related sequentially. our third Remember repeat. benefit a from in from the to that Mike We for strong, focus our third quarter. to got are We are is one But it's We've when out two intention it quarter? strong expecting about guidance I huge us. also after step question, next down million a Wahlquist was or was the timers expect a answering for taking pipe. year. more to EBITDA grow. we I obviously that mean, is But plan for growth Mike obviously don't to about we yes, the

Michael Latimore

[XX:XX:XX] Thank Very good. you.

Jeff Miller

[XX:XX:XX] Thank Thanks, Mike. you.

Operator

our next with And Ladenburg. [XX:XX:XX] will come Hickman from question Jon

Jon Hickman

I'm Hi, questions. my for [XX:XX:XX] thanks taking

Is away? comment quarter. of point going was First million all, go the restructuring, last seven there six five that million, the you can on to

Jeff Miller

It in of we severance [XX:XX:XX] forced in reductions Yeah, related second quarter. middle the and basically quarters. its roll executed off the to the should

that the hope that well, away, but persist. the as goes flowing we some hoping should also there's that here, cross through mean, So, litigation sort off. may too, I I that year of roll seven But I'm there. historical

Jon Hickman

that mouth, as like your of Jenny? is And [XX:XX:XX] just coming out

David Clark

EBITDA because, the mean, board purposes, riff [XX:XX:XX] advocate most many departments, including technology. the was for it's but so, across It's across the really all, and yeah, different an I the the of

not it's So just know, OK. Aschiana, you

Jon Hickman

so cash said go is Ok, to It that rules will [XX:XX:XX] your the operating as expense, than goes systems, that is your the severance actual down expense your that operating actual severance operating that. the expenses off,

Jeff Miller

Yeah. but it [XX:XX:XX] Yeah. to. back Yes. OK, we add

can you know, you compare. can, do You

Jon Hickman

how then bunch of to let but Can project, you've contracts me you So got front carriers ask the goes the walk If do a as kind how get platform that I of customers, those. me the begins DMI and kind revenues like. as implemented in roll [XX:XX:XX] will or as to revenues know the across their through up of once gets that?

David Clark

as ad no, OK, so, the set the we on so and Jeff Sure, the messaging getting structured on about this mean, should they is subscribers revenue we comment and I we as launch, the they volume. [XX:XX:XX] as but launch them grow, earn on the add way up. deal our all

Jon Hickman

[XX:XX:XX] as a in is similar. same Japan. Just in This the

David Clark

I think to little lumpy, similar it I but expect a Japan, fair It's to we think a be less it's chance. [XX:XX:XX]

Jeff Miller

course, Twenty that, new a as such, up across have is there as throughout would grow, to hope volume partner CCMA joint terms well of that in new is CCMA now integration We be served we've for by a they new twenty, seen provide in expect add distinction, an requests one has additional is that is in we're addition to to can as but growth is the collective something twenty, will licensing growth And for But that the venture that message Synchronizes, growth. what and adoption capabilities it. been here there bit network, one that operators. on network of I'll made of as and twenty. three go take continue in revenues which expand that Twenty twenty with well it the subscriber in and of as [XX:XX:XX] working offerings. that service little as One us

be to I say Japan. it's fair, think going to it's similar John, to

Jon Hickman

It's write you because don't volume, it's someday. going Ok, you the, don't hopefully you Right. to but the [XX:XX:XX] model. of Yeah, how don't kind quarter. larger know one many to how, so know difficult like know subscribers are

Jeff Miller

Well make [XX:XX:XX] it. to have you you can

a basically just those experience and you know, block. make in Japan, You in subscriber based on assumption licenses are

David Clark

[XX:XX:XX] you as blocks Yes. Licenses we have expansion.

So to characteristic have for Japan is lumpy a similar as a result, sure. will it that

Jon Hickman

John. me. [XX:XX:XX] Ok, for Thanks, OK, you. Thank thank That's you. it

Operator

one if reminder, and gentlemen, [XX:XX:XX] do any And ladies you questions. start have another

we'll to Chowan, on Jeff from Next move Bernstein.

Jeff Bernstein

a the guys, hi, taking years. for thanks Yeah, just [XX:XX:XX] couple of question

Was stuff I where with bake some Betty was there involved? there RCAF guys opportunity a Google. off for that, there you think etc.? in you Is doing is there

Jeff Miller

messaging it do ours, and the with like around space. is cloud we have by the are opportunities we been as that and customers number in to as a take have a Well, advantage who third stay would both actually be opportunities capabilities could provided [XX:XX:XX] can of of still contact people other discussion well customer be in pertains There served Google worked certainly messaging as in in the Synchronoss. parties with are and also of globe

conversations our fully So exhausted. have not done there been opportunities and not are

Jeff Bernstein

X.X you. [XX:XX:XX] in flow I cash mentioned he flow? free the cash What mean. adjusted adjusted Terrific. Thank million. free quarter, And is think I then

Jeff Miller

I to attached [XX:XX:XX] free cash said we it's reconciliation. flow, the think

just million I we you Jeff. That reconciliation there think that dollars.So a below release side to just Miyagawa. that should out the calculate it's of shows in you five go itself, how on there, if be

Jeff Bernstein

it total to second what be the year of Verizon was six you half the of the XX said, the quarter. and the amortization, [XX:XX:XX] for you going under was impact What re know, in under

Jeff Miller

the half it's almost Yep. which to not And which tiny, capitalized litigation a free some did concept. software and cash. would back you deduct gap capex, a [XX:XX:XX] adjusted Yes, we cash flow everyday get to the of our cash then net so just quarter, is second year, is And expense for free essentially, is five add it's activities, ratably. XX:XX we provided by then

Jeff Bernstein

in [XX:XX:XX] next twelve know, that How pretty in cash you doing think Ok, I et burn, terms we cash versus kind to would some would months that, generation of cetera. debt now the basis? about, feeling be are know, so of offering, that sustaining you key

Jeff Miller

a can on free planning point flow. though, [XX:XX:XX] Twenty to over but swings on revenue, where quarter just question focused flow Yeah, flow next only us would we're cash operations might meaningful out our that, we're we in a year, deferred EBITDA look right and I obviously year, really cash for things focused free when now cash to that But quarter, us caution, you following you be we're Arinaitwe free of funding. when at asked, have year Latimore generating that focused like the increasing up know, so, sufficient heavily on quarterly and getting twenty we're so clearly a process to internally. not one it's swing we're like on on self really

So that work ongoing. is

Jeff Bernstein

any how feedback business looking know, significant and that's from [XX:XX:XX] yet? through in you from you know, of, year, a revenue feedback recurring any rated solid do debt credit that know, OK, have market sort market, gotten you Sure. of your, about have you not then obviously customers, at know, for know, you you terms flavor you or very looked the the with, people

Jeff Miller

existing there's Citizens an mean, as capital the I you them of we to there's And of to one out about overall components an line expand bring think cost that with we debt help down structure. No, talk [XX:XX:XX] the opportunity take certainly have We that, actively our to use pipe. to I know, to potential obviously the Bank. the

Jeff Bernstein

Terrific. Was Got deal Was inactivation a AT&T. then you about mentioned [XX:XX:XX] it. renewal? with And that business? that new something finishing

Jeff Miller

how the an [XX:XX:XX] us of the on AT&T the half which renegotiations relationship put trajectory to a year, Now, with our have extension some urine. great align place, in for for things was second it we but that plans of just had were through finalized

Jeff Bernstein

that's already terms So a have business had. that [XX:XX:XX] that bit. of you around moved The business little

Jeff Miller

correct. That's [XX:XX:XX]

Jeff Bernstein

the Gotcha. impact. you net OK. five revenues. That forty then And [XX:XX:XX] of million cloud of point was mentioned XXX four AFSC

XX? that added Is is five that is it? that So what to Is million is? it that got

David Clark

five [XX:XX:XX] Getting million have XX been impact. forty dollar back four point revenue added the forty would the the

thirty was the Had So and it was been five. four added the revenue cloud would have reported quarter revenue five point the forty to in nine quarter. back quarter you a point five,

Jeff Bernstein

[XX:XX:XX] right. Ok, much, so Thanks great. That's guys. all

Jeff Miller

[XX:XX:XX] All you. Jeff, thank right,

Operator

things additional [XX:XX:XX] closing to and else and day. queue. remarks remaining to in Gurley turn or All any nothing back the Todd ladies I'd for right, like gentlemen, for the

Todd Kehrli

We updating today. forward again you, [XX:XX:XX] Thank you, operator, and to thank joining everyone, next you look us for quarter.

wonderful concluded. Our call that. a Have has

Synchronoss (SNCR) 9 Nov 202020 Q3 Earnings call transcript