SNCR - Earnings call transcript Q3 2024 | Synchronoss Technologies, Inc.

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Operator

Greetings, and welcome to the Synchronoss Technologies Third Quarter 2024 Earnings Call. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce Ryan Gardella of Investor Relations.

Ryan Gardella

Thanks, Bill. Good afternoon, and welcome to the Synchronoss Technologies Third Quarter 2024 Earnings Conference Call.

Synchronoss Ferraro. and are and Jeff today Lou CFO, us Technologies CEO, President Miller; Joining everyone have afternoon, now, our earnings on By should Investor website. press quarter company's the release XXXX third issued section this Relations which available access is of to the will Today's we with after begin session. question-and-answer will from Jeff a call Lou, and remarks which host

everyone will call. Before I'll to Jeff made over by statements recorded we the Miller. I like available via regarding would forward-looking for conclude, call With section call I'll the a cautions provide the that to made and link that, remind during company's the website. be Investor the this this of necessary replay turn management Relations in

Jeffrey Miller

call. Thank and Welcome, you, Ryan. everyone, today's thank joining for you

advance comparisons since solutions transformation SaaS The and to provider. our operational pleased I'm global quarter financial our year-over-year some and continued of strongest cloud report steady of to a the progress, third

increase the year's quarter, prior a of recorded $XX and revenue increase year which of For million. an $X.X we result adjusted last results to million, of over XX% period, represented $XX.X the comparable strong EBITDA X% million,

of positive year-over-year. also subscriber another solid flow growth We generation reported and cash net of quarter X.X%

progress we've recurring revenue we and a of continuing a revenue, gross margin, with our for adjusted the As pleased full our adjusted financial increase result results, to to achieved positive are position in be year guidance EBITDA.

provider our a has of Our growth and strategy. execution global success profitability solutions succeeded, to our transformation to that results the and cloud cloud -- and strong speak

and to is operates communities. more Altice subscriber and extension continue serves their In a today results, and have France early than offering mobile a renewal. and our part we client In platform were to addition it of networks million XX businesses Personal SFR contract also across announced storage individuals, Cloud financial high-speed, signed to October, X-year SFR fixed France, to the key positive thrilled base.

as of meaningful them to deeply offers. ecosystems. value enhanced partnership will builds a our us and and into our SFR relationship on with SFR extension user marketing expansion recognizes experiences our X-year more with their represents efforts and Our platform extension integrate allow that the This

However, we are resting there. not

improving sure resell protected never models, is data with to existing customer an every strong the have of people subscriber future use data making access are level are Customer AI can platform. To subscribers we well Cloud We their at customer high-level maintain customers only bedrock our part new competitive important have important and years. upcoming same that by refining additional we do we differentiation of to the subscribers on. we clients the as our potential their renewals as sources customers, in confidence way to with edge competitors, offering interested opportunities the existing we to as the can is rely current the of most is new product for in their security These drive attained This content. extensive with and who platform. our line both retention and train achieve top revenue our and of Personal to their in safeguards, information. or pursuing that with in successes from never improving substantial our We a product updating, subscribers are while dedicated that customers line of in we've and providing that Cloud that top-tier growth our pipeline Personal which customers privacy-focused are bottom ensure encryption our marketplace. a the double-digit plan Perhaps any this

code confidential or storage the being private provider now to first end folder which secure users in cloud security. The capabilities security, in data as nature behind the innovator been allows ubiquitous second biometric industry. capability, also a users comprehensive none to We have and of give our remain is pin backup to an such the content

solution Synchronoss is unique for service, of and across point a devices Personal of families position platform-agnostic single a all-encompassing in and As full serve being a households of range backup Cloud as operating possible able a systems. to

security our of our fit version adoption engagement part strategy, models, we them innovation development, to we've that pretrained, As September, utilize smart with we and features our a users end product capabilities. needs as latest Personal implemented drive and part we which then also tune features announced and introduced Cloud, And their several of with innovative content. In policy. AI and of AI our AI to provide enhanced the open-source

transform users with significant filters. of enhancements to improve well their or but a photos added not that many may user one-click notification a array We side, with editing, and movie and to be users AI feature format shared allows to as is can that in nonetheless is backup curation friends, crucial an which experience. AI-enhanced an management, optimize Genius which added Memories, we the On edit, of content with see

adjusts account discussed Finally, this we demand. auto-scaling, platform, of in in form for earlier particularly driving fluctuations which and financial capacity of our operational the dynamically the Cloud Personal efficiencies in our year, platform to

customers, subsequently multiple auto-scaling by almost the compute in since across implementation particular, material launched The customers have auto-scaling. expenses for of who seeing one We our XX% has now are benefits. of major dropped

customers as differentiate users. and technology future and direct new to for cost customers for can well our significant us the engaging that received about savings and potential excited being delivers current together, is generated. our our We're partners by experience how an and our Taken as value innovation drive this be

EBITDA. we revenue third exception. SFR. growth the consistent driving adjusted in announced after the We results, quarter X% excellent in by highlighted no And and are was growth ended, quarter extension X-year focused XX% the posted with We financial on the and progress,

partners of carrier to our our Personal operational We're the We users for already add enhancements gives also Cloud and that Personal efficiency builds upgrades functionality released while users they've security of listening this platform. upon the subscribers platform to latest version Cloud, and robust our want our and which asked to usability. and enhancing

to Lou? like more the our over a to I'd Lou of financial Now call review for turn detailed performance.

Lou Ferraro

everyone to here us joining today. Thanks, thanks for Jeff, again and

go to I'd prior First, our was period. QX. in the indicators, revenue important recurring performance benchmark subscriber serve believe which we XX.X% Quarterly versus as an approximately total of company's XX.X% recorded year-over-year over key X.X% in success. We for year of like revenue our growth cloud

in million Turning quarter as ended the now prior of from increase total gross or from revenue increased the to and quarter in $XX.X for $XX.X XX.X% the Jeff XX.X% $XX period, revenue, primarily Adjusted revenue This to of an growth Total in million million prior our was the third increased million profit of the quarter revenue third XX, up of result in financial results X%, September $XX.X mentioned. third cloud subscribers. performance period. year in XX.X% had total year XXXX. the to

a Third improvement revenue, gross the to prior expense due million in quarter income million, The in with post-divestiture and of continued profit adjusted period. a year from from the primarily rise coupled income loss in operations. were streamline operations $X.X taken operations significant to was management $X.X increases from measures

material discussed ongoing last in company June provided on savings basis. we the loan to term financing an quarter, As our

preferred up of structure $X.X results combined sequentially stock loan replacing preferred a when expense interest quarter. lower factors loan, and interest considered, year-over-year, compared new expense our to are all $X.X interest dividend is in primarily in quarterly interest-bearing a expense While financing the our million with XX% and term dividend the and to line the million associated due term prior stock

in of out realized an in of we Additionally, finally, plus and we $XXX,XXX per also must expense net as wanted share to on EBITDA or impact I exchange current from had expect unrealized the of XX.X% netting million, million line, adjusted expect period. EBITDA intercompany period. XXX QX, interest a year And the was in of loan $X.X and in our rates X.X% losses rates. Net margin to adjusted occur. in call or due falling loss year on $X.X our based as to basis interest to loss of of to per the margin to points. $X.X EBITDA negative foreign which In balances loss interest $XX.X SOFR per improved benefit prior result the a from financing share quarter, up is occasionally $X.XX million year effect million a $XX.X reduction that XX.X%, QX which approximately representing at each million $X.XX prior amortize compared adjusted the

to to $XX.X the sheet. on million Cash equivalents same on balance as million from 'XX. in declined the period $XX,XXX $X.X cash In $XX.X year. positive to XX, negative were and free compared flow last Moving XX, cash June XXXX, QX, our million of September

cash in and free year period add-back of compared adjusted the prior in $X.X $X.X the litigation to million to the due costs remediation to year primarily prior million period. higher declined Our flow

status. refund tax our on due the the federal any remaining update an provide did to leaving like refunds would tax receive I approximately during at Next, not $XX million. period, We balance additional

of to for on steps number increase immediate a the pressure and taken their active need have the this bodies control the part. regulatory that action express process We on

within Advocate contacted for ensuring independent IRS an organization First, for the we have service IRS the taxpayers. responsible Taxpayer timely Service,

does are our interest IRS refund every refund are or representatives XXXX. now be cash state-level to approximately million possible. Despite Due operating expenses the with possible, applicable be working attempt net we estimated reasonable the year. and million appears cash our updating This change business, we delayed $X it currently pulling to $XX plus efficiency not lever the outflows. tax reflect that any in extent the Second, and of tax of in this refund, to to timing to local is our received anticipated expedite the flow our the

term plan of the par. from tax receive once $XX we this half the to applicable interest the the As portion anticipated refund to a at a of million of we prepay reminder, use refund, IRS XX% proceeds loan plus

Moving to guidance.

in more most reflect we final it revise outlook our results. to quarter XXXX, determined our be to we As X items to prudent order of upward the into of move accurately

$XXX of million million we which XXXX, previous between revenue, range $XXX $XXX million. and up now year and for the between range full is from expect $XXX of the For million a

the between is we up XXXX, XX% expect between a range of adjusted to XX%. and for from range now gross full XX% year of For previous the margin, XX% which

recurring total and for the EBITDA, finally, turn $XX now revenue million now XX% a again, year and you the of range expect very between of For operator from of from of the $XX we which million between us. $XX up a previous between now of adjusted XX% range $XX for is to expect call between joining million, revenue, Thank for range XX% is over 'XX, XX% which total of a Q&A. the And revenue. and for range million. I'll we of and full up much

Operator

of Thalmann. first Ladenburg comes the with Hickman And Instructions] [Operator question Jon the from line

Jon Hickman

of out the a sequentially. elaborate that a accounted Was revenues you of bit something the move would or little have Could ordinary down kind sequential on were down They there? there something for quarter? seasonal this

Jeffrey Miller

The a actually only services. modification we was saw slight reduction a basis quarter-over-quarter professional on in

subscription higher SoftBank deployment. from revenue XX%. is a professional as over even the basis. Our of little year-over-year quarter prior up recurring our a on It's services up or implementation completed bit And we dropped actually our the

Operator

from And the with next question Capital. Northland of comes Mike the line Latimore

Aditya Dagaonkar

on Latimore. status what you is Mike the This color renewal? behalf Could of some on is Aditya AT&T of give

Jeffrey Miller

a continues of to Yes, to growing robust business increasing be happy to their relevance only base, our to the consistently subscriber in which and do grower quarter-over-quarter, their so. subscribers. AT&T, is fortunately, platform their very

with are year. confident be will extension, we very concluded well AT&T before such, are the we which working to the of end finalize contract the As

Aditya Dagaonkar

do users paying many have you how SoftBank? And with it. Got

Jeffrey Miller

that of with specifics I to to the since XX, time quite to been And hundreds about mentioned It's are expand client. ago. that reach. we customers. we've had as to very at previously, talk in them strong go the we growth XX thousands don't measuring opportunity an continue been last constant particular continued see of to of to I collaboration any pleased consistent, the now But and its We have our weeks you

Operator

would closing Ladies time. and questions gentlemen, like Instructions] back for remarks. to turn this Miller [Operator are no call to at further there Jeff I the

Jeffrey Miller

support investors we who quarter to joining without results today, like achieved thanks you of continued contributions to again to Synchronoss all our entire Great. this Thank not story. The of the the have have thank I'd our and for And would you. team. been all possible us

all to colleagues. Synchronoss thanks So hardworking special my a of

We to individuals. alongside such group talented a work are of privileged

tomorrow participating Sidoti Northland in Conference in Growth As we week, fact, be will the XX. a December in on and final note, the conference this

to hesitate If you myself would meeting like reach Lou, not to you and again, with you, and a back Ryan. do all Thank out. please once

Ryan Gardella

Thanks, Jeff.

during conclude this regarding we provide I'd Before to made harbor call, includes safe the call. today's statement like Synchronoss statements important forward-looking that cautions

to laws. our likely should are that of During opportunities, comments performance. forward. within the management factors that today company's this that regarding are not securities factors expectations forward-looking applicable statements certain particularly and statements the forward-looking be plans are comments These prospects future and influence discussed considered Any historical, company's call, meaning about market of business going the include the discussed

Forward-looking measures of that of or and adjusted any of in changes differ as to most note as statements certain obligation today's uncertainties, which company's throughout risks Statements events, to review such any whether a are today's undertake statements, update company are All revise made the future are today, call a does for XX-K management call, encouraged including non-GAAP materially. this not EBITDA. forward-looking and description risks. XX-Q subject financial new expectations and listeners result its that discussed or could during such -- a to otherwise. Please information, made actual number results to filings, cause of SEC these the as recent

development. Although necessarily GAAP Thank from numbers, does you account adjusted describes reporting generated presents not and periods between cash the operations the capitalization the such revenue equate joining does today's as for software release and reported not as measures a earnings non-GAAP deferred the GAAP of or for it are reconciliation in the conference to non-GAAP company's release. for Today's by EBITDA derived the items call. differences

disconnect. may You now

Operator

concludes today's participation. This you. We Thank appreciate conference. your

Synchronoss (SNCR) 12 Nov 242024 Q3 Earnings call transcript