Synchronoss Technologies Reports Strong Q3 2024 Results

Synchronoss ( (SNCR) ) has released its Q3 earnings. Here is a breakdown of the information Synchronoss presented to its investors.

Synchronoss Technologies is a global leader specializing in personal cloud solutions, which empower service providers with secure and meaningful subscriber connections. The company primarily operates in the cloud computing industry and is known for its innovative SaaS Cloud platform that enhances subscriber engagement and fosters revenue growth.

In its latest earnings report for the third quarter of 2024, Synchronoss posted a revenue increase of 8% year-over-year, reaching $43.0 million, with a remarkable 92.2% of this being recurring revenue. The company also introduced an updated version of its Personal Cloud platform, featuring enhanced AI capabilities and improved user functionalities, which are expected to drive further engagement and efficiency.

Key financial metrics highlighted in the report include a GAAP gross margin expansion to 69.6% and an adjusted gross margin increase to 79.6%. The company reported a net loss of $5.7 million, but saw a substantial improvement in income from operations, reaching $5.5 million compared to a loss in the previous year. Adjusted EBITDA grew significantly by 36.8% to $12.7 million. Synchronoss also highlighted the signing of a three-year extension with SFR to continue offering its cloud platform to SFR’s extensive subscriber base.

Looking forward, Synchronoss has revised its 2024 financial outlook upwards, forecasting revenue growth between 6% and 8% year-over-year. The company expects adjusted gross margins of 77% to 78% and adjusted EBITDA of $47 million to $48 million, reflecting confidence in its business strategy and market position. With strong recurring revenue and strategic platform enhancements, Synchronoss appears well-positioned for sustained growth.