The following is a summary of the Synchronoss Technologies, Inc. (SNCR) Q1 2024 Earnings Call Transcript:
Financial Performance:
Synchronoss Technologies reported Q1 revenue of $43 million, with 91% being recurring, and is on pace for its annual financial targets.
The company improved its gross margins to 76% from 74% year-over-year.
Adjusted EBITDA rose 78% from last year, totaling $10.9 million this quarter, largely due to its transition to a cloud-only business model.
Net income and earnings per share stood at $2.3 million and $0.23,respectively, for Q1.
The company projects at least $10 million in free cash flow in 2024 and expects 2025 to be even better.
Business Progress:
Synchronoss continued its transition into a global cloud solutions provider, focusing on high-margin personal cloud services.
Cloud subscribers increased by 7% and relationships with Verizon, AT&T, and SoftBank continue to be central to growth and subscriber acquisition.
A long-term contract with Verizon ensures 75% of total revenues come from contracts of at least four years.
Synchronoss is expanding its role with SoftBank, driving cloud subscriber growth.
Technological enhancements were announced like auto scaling, which adjusts the capacity of the personal cloud platform according to varying demands.
Synchronoss launched enhanced plans within its Personal Cloud Platform to allow telecom operators to offer tiered service models and foster subscriber growth and customer retention.
More details: Synchronoss Technologies IR
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