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 first quarter ended March 31, 2023.
Management Commentary“In the
first quarter we continued to build on the growth and momentum of
our core Cloud business, which remains the growth engine for our
company,” said Jeff Miller, President and CEO of Synchronoss. “Led
by our twelfth consecutive quarter of double-digit Cloud subscriber
growth, we officially surpassed 10 million subscribers across our
global customer base during the period. While this milestone
reflects our efforts to date, we believe it represents only a
fraction of our potential opportunity within this expanding group.
After several major launches over the past few quarters and with
work underway for another global Tier One operator scheduled to go
live later this year, we expect to continue our double-digit rate
of subscriber growth for the foreseeable future.
“At the same time, invoiced Cloud revenue
increased nearly 12% year over year in Q1, representing our
strongest quarterly performance since introducing this metric. Over
the last twelve months we’ve maintained a 9.6% growth rate for this
metric, approaching our double-digit subscriber growth. This
performance has resulted in improved cash flow generation as well.
While the macroeconomic environment remains challenging, we
continue to execute according to plan and remain on track to
achieve our financial targets for the year, including cash flow
positivity in 2023 and a return to GAAP revenue growth in the
second half of the year.”
Strategic Review Process
UpdateDuring 2022, the Company engaged UBS Securities, LLC
as its financial advisor to assist in exploring and evaluating
potential strategic transactions involving the Company or certain
of its lines of business, all with the objective of maximizing
value for the Company’s stockholders.
On March 10, 2023, Synchronoss received an
unsolicited, non-binding proposal from B. Riley Financial, to
acquire all outstanding shares of common stock for a price of $1.15
per share, payable in cash. B. Riley, together with its affiliates,
owns approximately 13.9% of the Company’s outstanding common stock
and is the Company’s largest common shareholder. B. Riley also
nominated Mr. Martin Bernstein as one of the Company’s directors
pursuant to a pre-existing agreement with the Company.
Consistent with its fiduciary duties and in
consultation with UBS and its legal advisors, the Company’s Board
of Directors, excluding B. Riley’s designee Mr. Bernstein, is
continuing to carefully review the B. Riley proposal as well as
other potential strategic transactions over the last several weeks
to determine the course of action that it believes will maximize
value for the Company’s stockholders.
First Quarter and
Recent Operational Highlights
- Achieved 11% year-over-year
Cloud subscriber growth and exceeded milestone of 10 million global
Cloud subscribers. The twelfth consecutive quarter of
double-digit subscriber growth has been driven by the continued
adoption of the Company’s Personal Cloud product by its customers’
subscribers, including Verizon and AT&T.
- Unveiled next generation
Personal Cloud platform at CES. The updated offering
includes new and enhanced features as well as other functionality
that leverages artificial intelligence and machine learning to
ensure data privacy and security while adding capabilities to share
files and optimize photos.
- Progressed significantly
toward the launch of Synchronoss Personal Cloud with the new Tier
One operator in APAC, which is scheduled for the second
half of 2023 and is currently generating revenue through
professional services. The expanded commercial relationship with
the global operator is forecasted to deliver more than $50 million
over the term of the relationship.
- Announced a
multi-million-dollar Email Suite expansion contract with leading
APAC telecom operator. Building on a long-standing
relationship spanning over 20 years, the Synchronoss Email Suite
now supports over 50 million users for this customer by offering an
array of new features to ensure security, data privacy, and an
improved user experience.
- Reached milestone of more
than 32.5 million RCS-based Messaging subscribers in
Japan. The growth has been primarily fueled by recent
deployments and partnerships with global service providers like NTT
DOCOMO, KDDI and SoftBank.
- Deployed Synchronoss
ExpenseNX suite of products to a Tier One operator. The
multi-year deal enables this customer to streamline their inventory
management, enhance auditing performance, and improve overall
workflow efficiencies.
- Recognized as a 2023
‘Product of the Year’ winner for Synchronoss Personal
Cloud from TMC’s Cloud Computing Magazine for the second
year in a row.
Key Performance Indicators
("KPIs")
- Cloud subscriber growth of 11%
continued the Company’s ongoing performance of year-over-year
double-digit subscriber growth. First quarter GAAP Cloud revenue
decreased 1.0% year over year as a result of expected deferred
revenue run-off and the sunsetting of a legacy cloud offering.
- Invoiced Cloud revenue increased
11.8% year over year to $40.3 million in the first quarter. On a
trailing twelve-month basis, invoiced Cloud revenue increased 9.6%
from the comparable period. 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 81.6% of total revenue in
the fourth quarter of 2022 and an increase from 84.9% in the first
quarter of last year. The increase in recurring revenue percentage
is a direct reflection of the increasing contribution of Cloud
revenue to total revenue.
GAAP revenue breakdown by product is included
below:
|
Q1 2023 vs Q1 2022 |
(in thousands) |
Q1 2023 Revenue |
|
Q1 2022 Revenue |
|
% Increase/ (Decrease) |
|
% of Total Revenue |
Cloud |
$41,078 |
|
$41,501 |
|
(1.0)% |
|
71.2% |
NetworkX (formerly Digital) |
7,145 |
|
12,164 |
|
(41.3)% |
|
12.4% |
Messaging |
9,485 |
|
12,201 |
|
(22.3)% |
|
16.4% |
Total |
$57,708 |
|
$65,866 |
|
|
|
100.0% |
First Quarter 2023 Financial
Results:Results compare 2023 fiscal first quarter end
(March 31, 2023) to 2022 fiscal first quarter end (March 31, 2022)
unless otherwise indicated.
- Total revenue
decreased 12.4% to $57.7 million from $65.9 million in the prior
year period. The decline in revenue was a result of expected impact
from the sale and product sunsetting of the non-strategic DXP and
Activation assets in 2022 ($3.8 million in the prior year), the
expected deferred revenue run-off in the current quarter (an
additional $3.8 million in the prior year), and temporary slowdowns
in purchasing activity.
- Gross profit
decreased 10.3% to $30.1 million (52.1% of total revenue) from
$33.5 million (50.9% of total revenue) in the prior year period.
Gross margins increased as a result of continued expense
management, which lowered cost of revenues, research and
development, and depreciation and amortization costs. The decrease
in gross profit was primarily a result of the previously mentioned
changes in deferred revenue, a legacy Cloud product sunsetting, and
the sale of the Company’s DXP and Activation assets previously
noted.
- (Loss)
income from operations was $(3.6) million compared to a
loss of $(1.4) million in 2022. The increase in operating loss was
a result of the changes in revenue, slightly offset by greater
efficiency of R&D resources and other cost-saving
initiatives.
- Net loss was $13.4
million, or $(0.15) per share, compared to net loss of $5.6
million, or $(0.07) per share, in the prior year period. The
increase in net loss was primarily attributable to the
aforementioned changes in revenue.
- Adjusted EBITDA (a
non-GAAP metric reconciled below) decreased 28% to $8.4 million
(14.5% of total revenue) from $11.6 million (17.6% of total
revenue) in the prior year period. The decrease in adjusted EBITDA
margin was primarily attributable to the change in revenues as
previously outlined, partially offset by expense management.
- Cash and cash
equivalents were $15.6 million at March 31, 2023, compared
to $21.9 million at December 31, 2022 and $21.7 million at
March 31, 2022. Free cash flow was ($4.2) million and adjusted free
cash flow was $(0.1) million. The Company did not receive
additional tax refunds during the period, leaving its remaining
balance due at approximately $28 million, which is expected to
be paid out in the coming quarters. Management does not anticipate
needing to raise additional capital for the foreseeable future.
Additionally, the Company’s existing accounts receivable
securitization agreement remained available at the end of the
quarter with an undrawn balance.
Financial CommentaryCFO Lou
Ferraro added: “Our focus on the core Cloud business and ongoing
commitment to cost management resulted in solid progress toward
achieving our cash flow targets for 2023. Strategic actions we took
over the past year such as transitioning from directly operating
datacenters led to a nearly $6 million decrease in total costs and
expenses during the first quarter. We expect these cost
efficiencies to continue benefiting our bottom-line results
throughout 2023 and beyond. In the first quarter we achieved free
cash flow of $(4.2) million and adjusted free cash flow of $(0.1)
million, which were increases of $3.9 million and $6.0 million,
respectively, from the prior year period.
“We also met our revenue expectations for the
first quarter, despite moderate impacts from ongoing macroeconomic
conditions that are slowing the pace of customer decision making.
The Company expects to be cash flow positive in Q2. In the second
half of 2023, we are forecasting improved profitability as well as
a return to GAAP revenue growth.”
Second Quarter and 2023 Financial
OutlookCompared to the first quarter of 2023, management
expects second quarter revenue and adjusted EBITDA to moderately
improve. Based on the continued strong performance within the
Company’s core Cloud business as well as improvements in
operational expense management, Synchronoss is reiterating its
expectation to be cash flow positive, on an unadjusted basis, for
2023. The current expectation is to generate cash flow in the
single-digit millions for the full year. Additionally, after
factoring in anticipated revenue growth and the expiry of certain
existing payment obligations as well as other general costs,
management expects cash flow generation to significantly improve in
2024.
The Company also expects Cloud subscriber growth
to continue at a double-digit rate on a year-over-year basis in
2023.
For the fiscal year ending December 31, 2023,
the Company expects GAAP revenue to range between
$242.0 million and $255.0 million. The comparable 2022
pro forma GAAP revenue is $240.4 million after adjusting for
the deferred revenue run-off and $4.8 million in revenue
recognized prior to the sale of the Company’s DXP and Activation
assets. The net contribution to GAAP revenue from non-cash deferred
revenue is expected to be $7.4 million less in 2023 than it
was in 2022, most of which is related to the first half of the
year. As a result of these factors, revenue in the second quarter
of 2023 is expected to decline moderately year over year on a GAAP
basis. The Company expects to return to total revenue growth on a
GAAP basis for the second half of the year and in 2024.
The Company expects adjusted EBITDA to range
between $44.0 million and $55.0 million in 2023.
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." With respect to
forward looking statements related to adjusted EBITDA, the Company
has relied upon the exception in item 10(e)(1)(i)(B) of Regulation
S-K and has not provided a quantitative reconciliation of
forecasted adjusted EBITDA to forecasted GAAP net income (loss)
attributable to Synchronoss or to forecasted GAAP income (loss)
from operations, before taxes, within this earnings release because
the Company is unable, without making unreasonable efforts, to
calculate certain reconciling items with confidence. These items
include, but are not limited to, other income, other expense,
(provision) benefit for income taxes, depreciation and amortization
expense, stock-based compensation expense, restructuring charges,
gain (loss) on divestitures, net (loss) income attributable to
redeemable noncontrolling interests.
Conference CallSynchronoss will
hold a conference call today, May 9, 2023, 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’ website.
Non-GAAP Financial
MeasuresSynchronoss 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, adjusted gross
profit, adjusted gross margin, adjusted EBITDA, effective tax rate,
non-GAAP net income (loss) attributable to Synchronoss, diluted
non-GAAP net income (loss) per share, free cash flow, invoiced
cloud revenue and adjusted free cash flow (which excludes cash
payments and receipts related to non-core business activities). The
Company believes that the exclusion of non-routine cash-settled
expenses, such as Litigation and Remediation costs (net) and
Restructuring costs in the calculation of adjusted free cash flow
which do not correlate to the operation of its business, provide
for more useful period-to-period comparisons of the Company’s
results. 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, restructuring, transition and cease-use
lease expense, litigation, remediation and refiling costs and
depreciation and amortization, interest income, interest expense,
loss (gain) on divestitures, other (income) expense, provision
(benefit) for income taxes, and net loss (income) attributable to
noncontrolling interests, and preferred dividends.
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
investigations by the Securities and Exchange Commission and the
Department of Justice 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, 2022, which is 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) |
|
|
|
|
|
March 31, 2023 |
|
December 31, 2022 |
ASSETS |
|
|
|
Cash and cash equivalents |
$ |
15,560 |
|
$ |
21,921 |
Accounts receivable, net |
|
48,035 |
|
|
47,024 |
Operating lease right-of-use assets |
|
20,033 |
|
|
20,863 |
Goodwill |
|
212,170 |
|
|
210,889 |
Other assets |
|
95,531 |
|
|
97,375 |
Total assets |
$ |
391,329 |
|
$ |
398,072 |
|
|
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
Accounts payable and accrued expenses |
$ |
68,103 |
|
$ |
66,324 |
Deferred revenues |
|
15,660 |
|
|
14,183 |
Debt, non-current |
|
134,977 |
|
|
134,584 |
Operating lease liabilities, non-current |
|
28,374 |
|
|
29,637 |
Other liabilities |
|
2,792 |
|
|
4,399 |
Preferred stock |
|
68,348 |
|
|
68,348 |
Redeemable noncontrolling interest |
|
12,500 |
|
|
12,500 |
Stockholders’ equity |
|
60,575 |
|
|
68,097 |
Total liabilities and stockholders’ equity |
$ |
391,329 |
|
$ |
398,072 |
SYNCHRONOSS TECHNOLOGIES, INC. |
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS |
(Unaudited) (In thousands, except per share
data) |
|
|
|
Three Months Ended March 31, |
|
2023 |
|
2022 |
Net revenues |
$ |
57,708 |
|
|
$ |
65,866 |
|
Costs and expenses: |
|
|
|
Cost of revenues1 |
|
20,381 |
|
|
|
24,839 |
|
Research and development |
|
14,735 |
|
|
|
15,791 |
|
Selling, general and administrative |
|
18,309 |
|
|
|
17,897 |
|
Restructuring charges |
|
345 |
|
|
|
685 |
|
Depreciation and amortization |
|
7,520 |
|
|
|
8,034 |
|
Total costs and expenses |
|
61,290 |
|
|
|
67,246 |
|
Loss from operations |
|
(3,582 |
) |
|
|
(1,380 |
) |
Interest income |
|
95 |
|
|
|
92 |
|
Interest expense |
|
(3,454 |
) |
|
|
(3,325 |
) |
Other (expense) income, net |
|
(2,931 |
) |
|
|
1,704 |
|
Loss from operations, before
taxes |
|
(9,872 |
) |
|
|
(2,909 |
) |
Provision for income taxes |
|
(1,059 |
) |
|
|
(128 |
) |
Net loss |
|
(10,931 |
) |
|
|
(3,037 |
) |
Net income (loss) attributable to redeemable noncontrolling
interests |
|
14 |
|
|
|
(115 |
) |
Preferred stock dividend |
|
(2,474 |
) |
|
|
(2,438 |
) |
Net loss attributable to
Synchronoss |
$ |
(13,391 |
) |
|
$ |
(5,590 |
) |
|
|
|
|
Earnings (loss) per
share: |
|
|
|
Basic |
$ |
(0.15 |
) |
|
$ |
(0.07 |
) |
Diluted |
$ |
(0.15 |
) |
|
$ |
(0.07 |
) |
Weighted-average common shares
outstanding: |
|
|
|
Basic |
|
86,501 |
|
|
|
85,866 |
|
Diluted |
|
86,501 |
|
|
|
85,866 |
|
_________________________________1 Cost of
revenues excludes depreciation and amortization which are shown
separately.
SYNCHRONOSS TECHNOLOGIES, INC. |
CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS |
(Unaudited) (In thousands) |
|
|
|
Three Months Ended March 31, |
|
2023 |
|
2022 |
Net loss from continuing operations |
$ |
(10,931 |
) |
|
$ |
(3,037 |
) |
Adjustments to reconcile net loss to net cash provided by operating
activities: |
|
|
|
Non-cash items |
|
9,673 |
|
|
|
10,750 |
|
Changes in operating assets and liabilities |
|
2,553 |
|
|
|
(10,406 |
) |
Net cash provided by (used in) operating
activities |
|
1,295 |
|
|
|
(2,693 |
) |
|
|
|
|
Investing activities: |
|
|
|
Purchases of fixed assets |
|
(876 |
) |
|
|
(154 |
) |
Purchases of intangible assets and capitalized software |
|
(4,594 |
) |
|
|
(5,245 |
) |
Net cash used in investing activities |
|
(5,470 |
) |
|
|
(5,399 |
) |
|
|
|
|
Net cash used in financing activities |
|
(2,299 |
) |
|
|
(1,781 |
) |
Effect of exchange rate changes on cash |
|
113 |
|
|
|
96 |
|
Net decrease in cash and cash equivalents |
|
(6,361 |
) |
|
|
(9,777 |
) |
|
|
|
|
Cash and cash equivalents,
beginning of period |
|
21,921 |
|
|
|
31,504 |
|
Cash and cash equivalents, end
of period |
$ |
15,560 |
|
|
$ |
21,727 |
|
SYNCHRONOSS TECHNOLOGIES, INC. |
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL
MEASURES |
(Unaudited) (In thousands, except per share
data) |
|
|
|
Three Months Ended March 31, |
|
2023 |
|
2022 |
Non-GAAP financial measures
and reconciliation: |
|
|
|
GAAP Revenue |
$ |
57,708 |
|
|
$ |
65,866 |
|
Less: Cost of revenues |
|
20,381 |
|
|
|
24,839 |
|
Less: Restructuring1 |
|
92 |
|
|
|
342 |
|
Less: Depreciation and Amortization2 |
|
7,163 |
|
|
|
7,161 |
|
Gross Profit |
|
30,072 |
|
|
|
33,524 |
|
|
|
|
|
Add / (Less): |
|
|
|
Stock-based compensation expense |
|
224 |
|
|
|
221 |
|
Restructuring, transition and cease-use lease expense |
|
183 |
|
|
|
1,165 |
|
Depreciation and Amortization2 |
|
7,163 |
|
|
|
7,161 |
|
Adjusted Gross Profit |
$ |
37,642 |
|
|
$ |
42,071 |
|
Adjusted Gross Margin |
|
65.2 |
% |
|
|
63.9 |
% |
_________________________________1 Amounts
reflected in cost of revenues.2 Depreciation and
Amortization contains a reasonable allocation for expenses
associated with cost of revenues.
SYNCHRONOSS TECHNOLOGIES, INC. |
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL
MEASURES |
(Unaudited) (In thousands, except per share
data) |
|
|
|
Three Months Ended March 31, |
|
2023 |
|
2022 |
GAAP Net loss attributable to Synchronoss |
$ |
(13,391 |
) |
|
$ |
(5,590 |
) |
Add / (Less): |
|
|
|
Stock-based compensation expense |
|
1,739 |
|
|
|
1,927 |
|
Restructuring, transition and cease-use lease expense |
|
719 |
|
|
|
2,011 |
|
Amortization expense1 |
|
1,997 |
|
|
|
2,543 |
|
Litigation, remediation and refiling costs, net |
|
1,959 |
|
|
|
977 |
|
Non-GAAP Net (loss) income
attributable to Synchronoss |
$ |
(6,977 |
) |
|
$ |
1,868 |
|
|
|
|
|
Diluted Non-GAAP Net (loss)
income per share |
$ |
(0.08 |
) |
|
$ |
0.02 |
|
|
|
|
|
Weighted shares outstanding -
Dilutive |
|
86,501 |
|
|
|
85,866 |
|
_________________________________1 Amortization
from acquired intangible assets.
SYNCHRONOSS TECHNOLOGIES, INC. |
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL
MEASURES |
(Unaudited) (In thousands) |
|
|
|
Three Months Ended |
|
Mar 31, 2023 |
|
Dec 31, 2022 |
|
Sep 30, 2022 |
|
Jun 30, 2022 |
|
Mar 31, 2022 |
Net (loss) income attributable to Synchronoss |
$ |
(13,391 |
) |
|
$ |
(15,927 |
) |
|
$ |
(1,278 |
) |
|
$ |
5,327 |
|
|
$ |
(5,590 |
) |
Add / (Less): |
|
|
|
|
|
|
|
|
|
Stock-based compensation expense |
|
1,739 |
|
|
|
769 |
|
|
|
1,801 |
|
|
|
964 |
|
|
|
1,927 |
|
Restructuring, transition and cease-use lease expense |
|
719 |
|
|
|
324 |
|
|
|
557 |
|
|
|
1,381 |
|
|
|
2,011 |
|
Change in contingent consideration |
|
— |
|
|
|
3,638 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Litigation, remediation and refiling costs, net |
|
1,959 |
|
|
|
1,892 |
|
|
|
88 |
|
|
|
(1,292 |
) |
|
|
977 |
|
Depreciation and amortization |
|
7,520 |
|
|
|
7,734 |
|
|
|
7,726 |
|
|
|
8,259 |
|
|
|
8,034 |
|
Interest income |
|
(95 |
) |
|
|
(235 |
) |
|
|
(20 |
) |
|
|
(118 |
) |
|
|
(92 |
) |
Interest expense |
|
3,454 |
|
|
|
3,509 |
|
|
|
3,463 |
|
|
|
3,343 |
|
|
|
3,325 |
|
Loss (gain) on sale of DXP Business |
|
— |
|
|
|
— |
|
|
|
73 |
|
|
|
(2,622 |
) |
|
|
— |
|
Other expense (income), net |
|
2,931 |
|
|
|
6,759 |
|
|
|
(4,437 |
) |
|
|
(4,065 |
) |
|
|
(1,704 |
) |
Provision (benefit) for income taxes |
|
1,059 |
|
|
|
181 |
|
|
|
1,115 |
|
|
|
435 |
|
|
|
128 |
|
Net (income) loss attributable to noncontrolling interests |
|
(14 |
) |
|
|
(56 |
) |
|
|
66 |
|
|
|
75 |
|
|
|
115 |
|
Preferred dividend |
|
2,474 |
|
|
|
2,297 |
|
|
|
2,298 |
|
|
|
2,519 |
|
|
|
2,438 |
|
Adjusted EBITDA
(non-GAAP) |
$ |
8,355 |
|
|
$ |
10,885 |
|
|
$ |
11,452 |
|
|
$ |
14,206 |
|
|
$ |
11,569 |
|
|
Three Months Ended March 31, |
|
2023 |
|
2022 |
Net Cash provided by (used in) operating activities |
$ |
1,295 |
|
|
$ |
(2,693 |
) |
Add / (Less): |
|
|
|
Capitalized software |
|
(4,594 |
) |
|
|
(5,245 |
) |
Property and equipment |
|
(876 |
) |
|
|
(154 |
) |
Free Cashflow |
|
(4,175 |
) |
|
|
(8,092 |
) |
Add: Litigation and remediation costs, net |
|
2,826 |
|
|
|
(797 |
) |
Add: Restructuring |
|
1,203 |
|
|
|
2,791 |
|
Adjusted Free Cashflow |
$ |
(146 |
) |
|
$ |
(6,098 |
) |
SYNCHRONOSS TECHNOLOGIES, INC. |
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL
MEASURES |
(Unaudited) (In thousands) |
|
|
|
Three Months Ended March 31, |
|
2023 |
|
2022 |
GAAP Cloud Revenue |
$ |
41,078 |
|
|
$ |
41,501 |
|
Increase / (Decrease) Change
in Deferred Revenue |
|
(899 |
) |
|
|
(3,647 |
) |
(Increase) / Decrease: Change
in Unbilled Receivables & Contract Assets |
|
114 |
|
|
|
(1,825 |
) |
Invoiced Cloud Revenue |
$ |
40,293 |
|
|
$ |
36,029 |
|
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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