Synchronoss Technologies
Inc. (“Synchronoss” or the “Company”)
(Nasdaq: SNCR), a global leader and innovator in cloud,
messaging, and digital products and platforms, today reported
financial results for its second quarter ended June 30, 2022.
Second Quarter and Recent Operational
Highlights:
- Announced 18% year-over-year Cloud subscriber growth
for the second quarter of 2022, an improvement from a 16%
increase for the second quarter of 2021. The strong growth has been
driven by continued adoption of the Company’s Cloud product with
existing and newly launched customers, including Verizon and
AT&T.
- Launched two new premium Personal Cloud solutions with
Telkomsigma, the IT and digital services arm of Telkomsel,
Indonesia’s largest mobile operator. Following an announced
agreement in November, Telkomsigma is now making its Floudrive
service, powered by Synchronoss Personal Cloud, available to
university students and 170 million Telkomsel mobile customers in
Indonesia, another key APAC market in the Company’s geographic
expansion of its core offering.
- Signed a new Personal Cloud Letter of Intent with
Street Cred Capital, a leading fintech solutions provider
in the mobile industry that has customers at major North American
carriers, MVNOs, and retailers. The new relationship allows
subscribers to finance Synchronoss Cloud, along with other products
and accessories.
- Recognized as a 2022 ‘Product of the Year’ winner for
Synchronoss Personal Cloud from Cloud Computing Magazine,
underscoring the quality of innovation and service in the Company’s
core business. The 2022 Cloud Computing Product of the Year Award
recognizes vendors with the most innovative and beneficial cloud
products and services that have been available to deploy within the
past year.
- Certified and deployed the Synchronoss Personal Cloud
and Email Suite on the Alibaba and Google Cloud Hosting
Platforms, respectively. These platform
extensions provide customers with the flexibility to select the
hosting platform of their choice to deploy and scale Synchronoss
solutions.
- Completed sale to iQmetrix of the Company’s Digital
Experience Platform (“DXP”) and Activation Solutions (“Activation”)
businesses. This transaction supports the Company’s goals
of enhanced operating flexibility through a leaner business model
focusing on its Cloud and Messaging portfolios and provides
additional liquidity to support an improved capital structure.
Management Commentary
“Our double-digit Cloud revenue increase in the second quarter
marked the fourth consecutive period of year-over-year growth in
Cloud, denoting twelve months of consistent topline improvement and
accelerated growth in our core business,” stated Jeff Miller,
President and CEO of Synchronoss. “Our resilient performance
continues to be driven by healthy subscriber growth, which hit 18%
for the second straight quarter, leading to record gross margins
and an improved cash flow profile. Operationally, we are continuing
to drive growth with existing customers while also expanding into
new markets and verticals. In just the last few weeks, we
successfully launched two new premium Personal Cloud solutions with
Telkomsel, marking the first phase of our deployment and opening
the door to an additional 170 million potential customers. Early
today, we also announced a Letter of Intent signing with Street
Cred Capital, which further highlights the market expansion
opportunities we are realizing for Synchronoss Cloud.
“While the global economic environment has caused delays in some
customer decision making, our overall pipeline remains strong. The
ongoing proliferation of 5G deployments should drive greater access
to fixed wireless solutions enabling wider adoption of our Cloud
for Home offering. We also continue to have significant expansion
opportunities within our existing and newly launched customers.
Collectively, we believe Synchronoss stands at the nexus of several
major tailwinds that support our vision of sustainable, high-margin
revenue growth now and in the years to come.”
Key Performance Indicators (“KPIs”):
- Strong Cloud subscriber growth of 18% was the key catalyst to a
12% year-over-year increase in second quarter Cloud revenue,
continuing the Company’s trend of double-digit subscriber
growth.
- Invoiced Cloud revenue increased 10.3% year-over-year to $37.4
million in the second quarter. This non-GAAP measure is reconciled
within the financial statements below. This KPI is intended to
provide greater transparency in the underlying Cloud revenue trends
as it is not impacted by changes in deferred and unbilled
revenue.
- Quarterly recurring revenue was 86.6% of total revenue, an
increase from 84.9% of total revenue in the first quarter.
- GAAP revenue breakdown by product is included below:
|
Q2 2022 vs Q2 2021 |
(in thousands) |
Q2 2022Revenue |
|
Q2 2021Revenue |
|
% Increase/(Decrease) |
|
% of Total Q22022 Revenue |
Cloud |
$43,477 |
|
$38,891 |
|
11.8% |
|
66.6% |
Digital |
10,437 |
|
12,131 |
|
(14.0)% |
|
16.0% |
Messaging |
11,322 |
|
20,510 |
|
(44.8)% |
|
17.4% |
|
$65,236 |
|
$71,532 |
|
|
|
100.0% |
Second Quarter 2022 Financial Results:
- Total revenue decreased 9% to $65.2 million
from $71.5 million in the prior year period. Revenue growth in the
Cloud business was offset by one-time, accelerated revenue received
from the Company’s CCMI contract in the previous year as well as
the Company’s divestiture of the DXP and Activation assets in the
quarter.
- Gross profit decreased 3% to $42.9 million
(65.8% of total revenue) from $44.4 million (62.1% of total
revenue) in the prior year period, primarily attributable to
decreased revenue in the Company’s Messaging business from the CCMI
dissolution and the previously noted sale of the DXP and Activation
assets. The increase in gross margin was primarily attributable to
increased revenue from high-margin Cloud subscriber growth, a
license sale during the quarter and ongoing benefits from cost
saving initiatives.
- Income (loss) from operations was $4.9 million
compared to a loss of ($4.1) million in 2021. The improvement in
operating income was a result of increased high margin Cloud
revenue, reduced SG&A expenses, greater efficiency of R&D
resources and other cost saving initiatives.
- Net income (loss) improved to $5.3 million, or
$0.06 per share, compared to net loss of ($23.9) million, or
($0.54) per share, in the prior year period. The significant
improvement in net income was primarily attributable to operational
improvements and lower preferred stock dividends resulting from the
Company’s June 2021 recapitalization.
- Adjusted EBITDA (a non-GAAP metric reconciled
below) increased 7.0% to $14.2 million from $13.3 million in the
prior year period. The increase in adjusted EBITDA resulted from
increased revenue from high-margin Cloud subscriber growth and cost
saving initiatives implemented throughout the prior year.
- Cash and cash equivalents were $25.5 million
at June 30, 2022, compared to $21.7 million at March 31, 2022 and
$31.5 million at December 31, 2021. Free cash flow was $3.6M and
adjusted free cash flow was $6.7M. Contributing to positive cash
flow during the second quarter was $4.3 million received in tax
refunds.
Financial Commentary
Company CFO Taylor Greenwald added, “The second quarter was
highlighted by meaningful profitability improvements in several key
metrics as we increased gross margin to an all-time-high of 65.8%,
delivered net income of $5.3 million and recorded adjusted EBITDA
of $14.2 million or 21.8% of revenue. The Company also produced
$3.6 million in positive, unadjusted free cash flow and $6.7
million of adjusted free cash flow, thanks in part to a $4.3
million tax refund received during the period. The strong quarterly
performance resulted from the underlying strength of the Cloud
business, which will continue to be a catalyst for growth.”
2022 Financial Outlook
Compared to the second quarter of 2022, management expects third
quarter revenue and adjusted EBITDA to be down slightly after
factoring in an approximate $2 million impact from the sale of the
DXP and Activation assets in the second quarter and recognition of
approximately $4 million in deferred, non-cash revenue from the
Cloud business, which benefited the second quarter and will not
repeat in the third quarter. While the Company still expects to be
free cash flow positive, on an adjusted basis, for the year,
management expects third and fourth quarter cash flow results to
decline moderately compared to the second quarter due to the
non-recurring tax refund and timing of cash receipts and expenses.
Looking to 2023, the Company expects to be free cash flow positive,
on an unadjusted basis, given the trajectory of its Cloud business
and the actions taken to drive down its cost structures.
Based on the financial performance in the first half of 2022 and
better visibility into the remainder of the year, the Company is
narrowing the range of its full year 2022 adjusted EBITDA
expectations to between $48.0 million and $55.0 million from a
previous range of $45.0 million to $55.0 million.
Additionally, the Company now expects GAAP revenue for the
fiscal year ending December 31, 2022 to range between $260.0
million and $270.0 million. The comparable 2021 revenue is $265.0
million after adjusting for the divestiture of the Company’s DXP
and Activation assets. Despite delay in some customer decision
making and expectations due to the macroeconomic environment, the
sales pipeline remains healthy and subscriber growth continues to
be strong. Synchronoss is reiterating its projection for Cloud
subscriber growth to continue at a double-digit rate on a
year-over-year basis in 2022.
A reconciliation of GAAP to non-GAAP results has been provided
in the financial statement tables included in this press release.
An explanation of these measures is included below under the
heading "Non-GAAP Financial Measures."
Conference Call
Synchronoss will hold a conference call today, August 9, 2022,
at 4:30 p.m. Eastern time (1:30 p.m. Pacific time) to discuss these
results.
Synchronoss management will host the call, followed by a
question-and-answer period.
Registration Link: Click here to register
Please register online at least 10 minutes prior to the start
time. Upon registration, the webcast platform will provide dial-in
numbers and a unique access code. If you have any difficulty with
registration or connecting to the conference call, please contact
Gateway Investor Relations at 949-574-3860.
The conference call will be broadcast live and available for
replay here and via the Investor Relations section of Synchronoss's
website.
Non-GAAP Financial Measures
Synchronoss has provided in this release selected financial
information that has not been prepared in accordance with GAAP
although this non-GAAP financial information is derived from
numbers that have been prepared in accordance with GAAP. This
information includes historical non-GAAP revenues, gross profit,
adjusted EBITDA, operating income (loss), net income (loss),
effective tax rate, and earnings (loss) per share. Synchronoss uses
these non-GAAP financial measures internally in analyzing its
financial results and believes they are useful to investors, as a
supplement to GAAP measures, in evaluating Synchronoss’ ongoing
operational performance. Synchronoss believes that the use of these
non-GAAP financial measures provides an additional tool for
investors to use in evaluating ongoing operating results and
trends, and in comparing its financial results with other companies
in Synchronoss’ industry, many of which present similar non-GAAP
financial measures to investors. As noted, the non-GAAP financial
results discussed above add back fair value stock-based
compensation expense, acquisition-related costs, which include
restructuring and cease-use lease expense, litigation, remediation
and refiling costs and amortization of intangibles associated with
acquisitions.
Non-GAAP financial measures should not be
considered in isolation from, or as a substitute for, financial
information prepared in accordance with GAAP. Investors are
encouraged to review the reconciliation of these non-GAAP measures
to their most directly comparable GAAP financial measures as
detailed above. Investors are encouraged to also review the Balance
Sheet, Statement of Operations, and Statement of Cash Flow. As
previously mentioned, a reconciliation of GAAP to non-GAAP results
has been provided in the financial statement tables included in
this press release.
Forward-Looking StatementsThis
press release includes statements concerning Synchronoss and its
future expectations, plans and prospects that constitute
“forward-looking statements” within the meaning of the Private
Securities Litigation Reform Act of 1995. For this purpose, any
statements contained herein that are not statements of historical
fact may be deemed to be forward-looking statements. Without
limiting the foregoing, the words “may,” “should,” “expects,”
“plans,” “anticipates,” “could,” “intends,” “believes,” “potential”
or “continue” or other similar expressions are intended to identify
forward-looking statements. Synchronoss has based these
forward-looking statements largely on its current expectations and
projections about future events and financial trends that it
believes may affect its business, financial condition and results
of operations. These forward-looking statements speak only as of
the date of this press release and are subject to a number of
risks, uncertainties and assumptions including, without limitation,
risks relating to the Company’s ability to sustain or increase
revenue from its larger customers and generate revenue from new
customers, the Company’s expectations regarding expenses and
revenue, the sufficiency of the Company’s cash resources, the
impact of legal proceedings involving the Company, including the
investigation by the Department of Justice of certain current and
former employees of Company, which the Company may be required to
indemnify, described in the Company’s most recent SEC filings, and
other risks and factors that are described in the “Risk Factors”
and “Management’s Discussion and Analysis of Financial Condition
and Results of Operations” sections of the Company’s Annual Report
on Form 10-K for the year ended December 31, 2021, which are on
file with the SEC and available on the SEC’s website at
www.sec.gov. The company does not undertake any obligation to
update any forward-looking statements contained in this press
release as a result of new information, future events or
otherwise.
About SynchronossSynchronoss
Technologies (Nasdaq: SNCR) builds software that empowers companies
around the world to connect with their subscribers in trusted and
meaningful ways. The company’s collection of products helps
streamline networks, simplify onboarding, and engage subscribers to
unleash new revenue streams, reduce costs and increase speed to
market. Hundreds of millions of subscribers trust Synchronoss
products to stay in sync with the people, services, and content
they love. Learn more at www.synchronoss.com.
Media Relations Contact:Domenick
CileaSpringboarddcilea@springboardpr.com
Investor Relations Contact:Matt Glover and Tom
ColtonGateway Group, Inc.SNCR@gatewayir.com
-Financial Tables to Follow-
SYNCHRONOSS
TECHNOLOGIES, INC.CONDENSED CONSOLIDATED
BALANCE SHEETS(Unaudited) (In
thousands)
|
|
June 30, 2022 |
|
December 31, 2021 |
ASSETS |
|
|
|
|
Cash and cash equivalents |
|
$ |
25,512 |
|
$ |
31,504 |
Accounts receivable, net |
|
|
43,306 |
|
|
47,586 |
Operating lease right-of-use assets |
|
|
22,791 |
|
|
26,399 |
Goodwill |
|
|
209,806 |
|
|
224,577 |
Other assets |
|
|
115,453 |
|
|
120,668 |
Total assets |
|
$ |
416,868 |
|
$ |
450,734 |
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
Accounts payable and accrued expenses |
|
$ |
64,032 |
|
$ |
73,013 |
Deferred revenues |
|
|
19,233 |
|
|
22,916 |
Debt, non-current |
|
|
133,826 |
|
|
133,104 |
Operating lease liabilities, non-current |
|
|
32,442 |
|
|
36,095 |
Other liabilities |
|
|
8,124 |
|
|
9,778 |
Preferred stock |
|
|
68,348 |
|
|
72,505 |
Redeemable noncontrolling interest |
|
|
12,500 |
|
|
12,500 |
Stockholders’ equity |
|
|
78,363 |
|
|
90,823 |
Total liabilities and stockholders’ equity |
|
$ |
416,868 |
|
$ |
450,734 |
SYNCHRONOSS
TECHNOLOGIES, INC.CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS(Unaudited) (In thousands,
except per share data)
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
Net
revenues |
|
$ |
65,236 |
|
|
$ |
71,532 |
|
|
$ |
131,102 |
|
|
$ |
137,031 |
|
Costs
and expenses: |
|
|
|
|
|
|
|
|
Cost of revenues1 |
|
|
22,316 |
|
|
|
27,142 |
|
|
|
47,155 |
|
|
|
55,779 |
|
Research and development |
|
|
13,460 |
|
|
|
17,197 |
|
|
|
29,251 |
|
|
|
34,594 |
|
Selling, general and administrative |
|
|
15,288 |
|
|
|
21,909 |
|
|
|
33,185 |
|
|
|
39,837 |
|
Restructuring charges |
|
|
1,019 |
|
|
|
877 |
|
|
|
1,704 |
|
|
|
1,590 |
|
Depreciation and amortization |
|
|
8,259 |
|
|
|
8,485 |
|
|
|
16,293 |
|
|
|
18,352 |
|
Total costs and expenses |
|
|
60,342 |
|
|
|
75,610 |
|
|
|
127,588 |
|
|
|
150,152 |
|
Income (loss) from operations |
|
|
4,894 |
|
|
|
(4,078 |
) |
|
|
3,514 |
|
|
|
(13,121 |
) |
Interest income |
|
|
118 |
|
|
|
25 |
|
|
|
210 |
|
|
|
30 |
|
Interest expense |
|
|
(3,343 |
) |
|
|
(144 |
) |
|
|
(6,668 |
) |
|
|
(239 |
) |
Gain on divestiture |
|
|
2,622 |
|
|
|
— |
|
|
|
2,622 |
|
|
|
— |
|
Other income (expense), net |
|
|
4,065 |
|
|
|
1,576 |
|
|
|
5,769 |
|
|
|
(1,820 |
) |
Income (loss) from operations, before taxes |
|
|
8,356 |
|
|
|
(2,621 |
) |
|
|
5,447 |
|
|
|
(15,150 |
) |
(Provision) benefit for income taxes |
|
|
(435 |
) |
|
|
201 |
|
|
|
(563 |
) |
|
|
364 |
|
Net
income (loss) from operations |
|
|
7,921 |
|
|
|
(2,420 |
) |
|
|
4,884 |
|
|
|
(14,786 |
) |
Net (loss) income attributable to redeemable noncontrolling
interests |
|
|
(75 |
) |
|
|
(50 |
) |
|
|
(190 |
) |
|
|
286 |
|
Preferred stock dividend |
|
|
(2,519 |
) |
|
|
(21,476 |
) |
|
|
(4,957 |
) |
|
|
(32,006 |
) |
Net
income (loss) attributable to Synchronoss |
|
$ |
5,327 |
|
|
$ |
(23,946 |
) |
|
$ |
(263 |
) |
|
$ |
(46,506 |
) |
|
|
|
|
|
|
|
|
|
Earnings (loss) per share: |
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.06 |
|
|
$ |
(0.54 |
) |
|
$ |
— |
|
|
$ |
(1.07 |
) |
Diluted |
|
$ |
0.06 |
|
|
$ |
(0.54 |
) |
|
$ |
— |
|
|
$ |
(1.07 |
) |
Weighted-average common shares outstanding: |
|
|
|
|
|
|
|
|
Basic |
|
|
87,124 |
|
|
|
44,131 |
|
|
|
86,031 |
|
|
|
43,438 |
|
Diluted |
|
|
89,249 |
|
|
|
44,131 |
|
|
|
86,031 |
|
|
|
43,438 |
|
SYNCHRONOSS
TECHNOLOGIES, INC.CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS(Unaudited) (In
thousands)
|
Six Months Ended June 30, |
|
|
2022 |
|
|
|
2021 |
|
Net
income (loss) from continuing operations |
$ |
4,884 |
|
|
$ |
(14,786 |
) |
Adjustments to reconcile net loss to net cash provided by operating
activities: |
|
|
|
Non-cash items |
|
17,432 |
|
|
|
22,584 |
|
Changes in operating assets and liabilities |
|
(15,588 |
) |
|
|
369 |
|
Net cash provided by operating activities |
|
6,728 |
|
|
|
8,167 |
|
|
|
|
|
Investing activities: |
|
|
|
Purchases of fixed assets |
|
(573 |
) |
|
|
(1,250 |
) |
Purchases of intangible assets and capitalized software |
|
(10,695 |
) |
|
|
(10,959 |
) |
Other investing activities |
|
7,500 |
|
|
|
550 |
|
Net cash (used in) provided by investing
activities |
|
(3,768 |
) |
|
|
(11,659 |
) |
|
|
|
|
Net cash (used in) provided by financing
activities |
|
(8,517 |
) |
|
|
2,687 |
|
Effect of exchange rate changes on cash |
|
(435 |
) |
|
|
(296 |
) |
Net decrease in cash and cash equivalents |
|
(5,992 |
) |
|
|
(1,101 |
) |
|
|
|
|
Cash
and cash equivalents, beginning of period |
|
31,504 |
|
|
|
33,671 |
|
Cash
and cash equivalents, end of period |
$ |
25,512 |
|
|
$ |
32,570 |
|
SYNCHRONOSS
TECHNOLOGIES, INC.RECONCILIATION OF GAAP TO
NON-GAAP FINANCIAL MEASURES(Unaudited) (In
thousands, except per share data)
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
Non-GAAP financial measures and reconciliation: |
|
|
|
|
|
|
|
|
GAAP
Revenue |
|
$ |
65,236 |
|
|
$ |
71,532 |
|
|
$ |
131,102 |
|
|
$ |
137,031 |
|
Less: Cost of revenues |
|
|
22,316 |
|
|
|
27,142 |
|
|
|
47,155 |
|
|
|
55,779 |
|
Gross
Profit |
|
|
42,920 |
|
|
|
44,390 |
|
|
|
83,947 |
|
|
|
81,252 |
|
Add /
(Less): |
|
|
|
|
|
|
|
|
Stock-based compensation expense |
|
|
139 |
|
|
|
379 |
|
|
|
360 |
|
|
|
857 |
|
Restructuring, transition and cease-use lease expense |
|
|
148 |
|
|
|
— |
|
|
|
971 |
|
|
|
27 |
|
Adjusted Gross Profit |
|
$ |
43,207 |
|
|
$ |
44,769 |
|
|
$ |
85,278 |
|
|
$ |
82,136 |
|
Adjusted Gross Margin |
|
|
66.2 |
% |
|
|
62.6 |
% |
|
|
65.0 |
% |
|
|
59.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
GAAP
Net loss attributable to Synchronoss |
|
$ |
5,327 |
|
|
$ |
(23,946 |
) |
|
$ |
(263 |
) |
|
$ |
(46,506 |
) |
Add /
(Less): |
|
|
|
|
|
|
|
|
Stock-based compensation expense |
|
|
964 |
|
|
|
2,345 |
|
|
|
2,891 |
|
|
|
5,066 |
|
Restructuring, transition and cease-use lease expense |
|
|
1,381 |
|
|
|
2,918 |
|
|
|
3,392 |
|
|
|
4,975 |
|
Amortization expense |
|
|
2,490 |
|
|
|
3,206 |
|
|
|
5,033 |
|
|
|
6,815 |
|
Litigation, remediation and refiling costs, net |
|
|
(1,292 |
) |
|
|
3,607 |
|
|
|
(315 |
) |
|
|
3,542 |
|
Non-GAAP Net income (loss) attributable to Synchronoss |
|
$ |
8,870 |
|
|
$ |
(11,870 |
) |
|
$ |
10,738 |
|
|
$ |
(26,108 |
) |
|
|
|
|
|
|
|
|
|
Diluted Non-GAAP Net income (loss) per share |
|
$ |
0.10 |
|
|
$ |
(0.27 |
) |
|
$ |
0.12 |
|
|
$ |
(0.60 |
) |
|
|
|
|
|
|
|
|
|
Weighted shares outstanding - Dilutive |
|
|
89,249 |
|
|
|
44,131 |
|
|
|
86,031 |
|
|
|
43,438 |
|
SYNCHRONOSS
TECHNOLOGIES, INC.RECONCILIATION OF GAAP TO
NON-GAAP FINANCIAL MEASURES(Unaudited) (In
thousands, except per share data)
|
|
Three Months Ended |
|
Six Months Ended |
|
|
Jun 30, 2022 |
|
Mar 31, 2022 |
|
Dec 31, 2021 |
|
Sep 30, 2021 |
|
Jun 30, 2021 |
|
Jun 30, 2022 |
|
Jun 30, 2021 |
Net
loss attributable to Synchronoss |
|
$ |
5,327 |
|
|
$ |
(5,590 |
) |
|
$ |
(2,114 |
) |
|
$ |
(9,831 |
) |
|
$ |
(23,946 |
) |
|
$ |
(263 |
) |
|
$ |
(46,506 |
) |
Add /
(Less): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation expense |
|
|
964 |
|
|
|
1,927 |
|
|
|
1,950 |
|
|
|
2,289 |
|
|
|
2,345 |
|
|
|
2,891 |
|
|
|
5,066 |
|
Restructuring, transition and cease-use lease expense |
|
|
1,381 |
|
|
|
2,011 |
|
|
|
2,286 |
|
|
|
2,981 |
|
|
|
2,918 |
|
|
|
3,392 |
|
|
|
4,975 |
|
Litigation, remediation and refiling costs, net |
|
|
(1,292 |
) |
|
|
977 |
|
|
|
(30 |
) |
|
|
9,316 |
|
|
|
3,607 |
|
|
|
(315 |
) |
|
|
3,542 |
|
Depreciation and amortization |
|
|
8,259 |
|
|
|
8,034 |
|
|
|
9,498 |
|
|
|
8,215 |
|
|
|
8,485 |
|
|
|
16,293 |
|
|
|
18,352 |
|
Interest income |
|
|
(118 |
) |
|
|
(92 |
) |
|
|
15 |
|
|
|
(24 |
) |
|
|
(25 |
) |
|
|
(210 |
) |
|
|
(30 |
) |
Interest expense |
|
|
3,343 |
|
|
|
3,325 |
|
|
|
3,248 |
|
|
|
2,933 |
|
|
|
144 |
|
|
|
6,668 |
|
|
|
239 |
|
Gain on divestiture |
|
|
(2,622 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(2,622 |
) |
|
|
— |
|
Other expense (income), net |
|
|
(4,065 |
) |
|
|
(1,704 |
) |
|
|
1,388 |
|
|
|
1,669 |
|
|
|
(1,576 |
) |
|
|
(5,769 |
) |
|
|
1,820 |
|
(Benefit) provision for income taxes |
|
|
435 |
|
|
|
128 |
|
|
|
169 |
|
|
|
(6,982 |
) |
|
|
(201 |
) |
|
|
563 |
|
|
|
(364 |
) |
Net loss (income) attributable to noncontrolling interests |
|
|
75 |
|
|
|
115 |
|
|
|
130 |
|
|
|
— |
|
|
|
50 |
|
|
|
190 |
|
|
|
(286 |
) |
Preferred dividend1 |
|
|
2,519 |
|
|
|
2,438 |
|
|
|
1,781 |
|
|
|
1,722 |
|
|
|
21,476 |
|
|
|
4,957 |
|
|
|
32,006 |
|
Adjusted EBITDA (non-GAAP) |
|
$ |
14,206 |
|
|
$ |
11,569 |
|
|
$ |
18,321 |
|
|
$ |
12,288 |
|
|
$ |
13,277 |
|
|
$ |
25,775 |
|
|
$ |
18,814 |
|
___________________________1
Includes preferred stock amortization costs
accelerated due to Series A Preferred stock redemption in the
second quarter of 2021.
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
Net
Cash (used in) provided by operating activities |
|
$ |
9,421 |
|
|
$ |
5,906 |
|
|
$ |
6,728 |
|
|
$ |
8,167 |
|
Add /
(Less): |
|
|
|
|
|
|
|
|
Capitalized software |
|
|
(5,450 |
) |
|
|
(5,917 |
) |
|
|
(10,695 |
) |
|
|
(10,959 |
) |
Property and equipment |
|
|
(419 |
) |
|
|
(529 |
) |
|
|
(573 |
) |
|
|
(1,250 |
) |
Free
Cashflow |
|
|
3,552 |
|
|
|
(540 |
) |
|
|
(4,540 |
) |
|
|
(4,042 |
) |
Add / (Less): Litigation and remediation costs, net |
|
|
1,471 |
|
|
|
(482 |
) |
|
|
674 |
|
|
|
741 |
|
Add: Restructuring |
|
|
1,642 |
|
|
|
2,238 |
|
|
|
4,433 |
|
|
|
4,509 |
|
Adjusted Free Cashflow |
|
$ |
6,665 |
|
|
$ |
1,216 |
|
|
$ |
567 |
|
|
$ |
1,208 |
|
SYNCHRONOSS
TECHNOLOGIES, INC.RECONCILIATION OF GAAP TO
NON-GAAP FINANCIAL MEASURES(Unaudited) (In
thousands)
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
GAAP Cloud Revenue |
|
$ |
43,477 |
|
|
$ |
38,891 |
|
|
$ |
84,978 |
|
|
$ |
77,787 |
|
Increase / (Decrease) Change
in Deferred Revenue |
|
|
(4,074 |
) |
|
|
(4,895 |
) |
|
|
(7,721 |
) |
|
|
(10,200 |
) |
(Increase) / Decrease: Change
in Unbilled Receivables & Contract Assets |
|
|
(2,012 |
) |
|
|
(83 |
) |
|
|
(3,837 |
) |
|
|
192 |
|
Invoiced Cloud Revenue |
|
$ |
37,391 |
|
|
$ |
33,913 |
|
|
$ |
73,420 |
|
|
$ |
67,779 |
|
Invoiced Cloud Revenue is defined as GAAP
revenue for Cloud disaggregated revenue stream, plus the period
change in deferred revenue balance related to the Cloud revenue
stream, less the period change in Unbilled Receivables and Contract
Assets balance related to the Cloud revenue stream.
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