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Synchronoss (SNCR)
:SNCR
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Synchronoss Technologies
(NASDAQ:SNCR)
62Neutral
Synchronoss Technologies (SNCR) vs. S&P 500 (SPY)
Market Cap
$122.95M
Dividend YieldN/A
Average Volume (3M)106.29K
Price to Earnings (P/E)27.8
Beta (1Y)1.90
Revenue Growth-19.06%
EPS GrowthN/A
CountryUS
Employees802
SectorTechnology
Sector Strength63
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)0.39
Shares Outstanding11,490,918
10 Day Avg. Volume69,754
30 Day Avg. Volume106,294
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap2.84
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit2.59
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$13.00Price Target Upside24.52% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Synchronoss Technologies Business Overview & Revenue Model
Company DescriptionSynchronoss Technologies, Inc. is a technology company that provides cloud, messaging, digital, and IoT products and platforms. The company primarily serves telecommunications operators, media companies, and technology firms. Synchronoss offers solutions that enable the secure and scalable management of digital content and communications, helping its clients deliver better customer experiences and optimize their digital operations.
How the Company Makes MoneySynchronoss Technologies makes money through a combination of subscription fees, licensing, and professional services. The company's primary revenue streams include cloud-based solutions where customers pay for storage and data management services on a subscription basis. Additionally, Synchronoss generates revenue from its messaging platforms, which are used by telecom operators to offer messaging services to their end customers. The company also earns through licensing its technology to partners and clients, as well as providing consulting and integration services to customize and implement solutions for specific business needs. Significant partnerships with telecom operators and technology firms enhance their market reach and contribute to revenue growth.
Synchronoss Technologies Financial Statement Overview
Summary
Synchronoss Technologies has made significant financial improvements, with net income turning positive and cash flow strengthening. However, declining revenue and a shrinking equity base pose challenges to long-term stability. The balance sheet shows low leverage but raises concerns about financial stability due to low equity ratios.Income Statement
Synchronoss Technologies has shown a significant improvement in net income, turning from a loss of $54.5 million in 2023 to a profit of $21.38 million in 2024. The gross profit margin for 2024 is strong at 77.5%, and the net profit margin has increased to 12.3%. However, revenue has decreased compared to historical levels, down from $252 million in 2022 to $173 million in 2024, indicating a contraction in business scale.60
Neutral
Balance Sheet
The company's balance sheet reflects a high debt-to-equity ratio of 0.06 in 2024, indicating low leverage risk. Equity has significantly decreased over the years, from $280 million in 2020 to $29.8 million in 2024, raising concerns about long-term sustainability. The equity ratio is low at 10.1%, suggesting potential financial instability.55
Neutral
Cash Flow
Free cash flow has improved, moving from negative in 2023 to a positive $26.38 million in 2024. The operating cash flow to net income ratio is strong at 1.32, demonstrating effective cash generation relative to income. Despite previous negative free cash flows, the recent positive trend is a positive indicator.70
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 173.59M | 164.20M | 252.63M | 280.62M | 291.67M | Gross Profit |
| 134.55M | 121.98M | 160.93M | 171.56M | 169.85M | EBIT |
| 21.68M | -10.65M | 7.14M | -18.67M | -29.04M | EBITDA |
| 46.47M | 10.46M | 21.62M | 10.91M | 6.70M | Net Income Common Stockholders |
| 6.17M | -54.53M | -7.72M | -23.10M | -10.36M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 33.38M | 24.57M | 21.92M | 31.50M | 33.67M | Total Assets |
| 293.82M | 310.34M | 398.07M | 450.73M | 482.25M | Total Debt |
| 1.88M | 166.21M | 169.72M | 169.20M | 54.27M | Net Debt |
| -31.50M | 141.64M | 147.80M | 137.69M | 20.60M | Total Liabilities |
| 251.55M | 212.40M | 249.13M | 274.91M | 201.33M | Stockholders Equity |
| 29.77M | 85.43M | 136.44M | 163.33M | 280.92M |
| Cash Flow | Free Cash Flow | |||
| 26.38M | -1.04M | -3.81M | -19.55M | -18.51M | Operating Cash Flow |
| 28.28M | 18.83M | 17.36M | 4.95M | -564.00K | Investing Cash Flow |
| -13.13M | 3.80M | -13.17M | -23.94M | -14.34M | Financing Cash Flow |
| -5.85M | -19.98M | -13.28M | 16.19M | 9.99M |
Synchronoss Technologies Technical Analysis
Positive
10.44
Price Trends
10.26
Positive
9.94
Positive
10.77
Negative
Market Momentum
0.04
Negative
49.59
Neutral
67.35
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SNCR, the sentiment is Positive. The current price of 10.44 is above the 20-day moving average (MA) of 10.36, above the 50-day MA of 10.26, and below the 200-day MA of 10.77, indicating a neutral trend. The MACD of 0.04 indicates Negative momentum. The RSI at 49.59 is Neutral, neither overbought nor oversold. The STOCH value of 67.35 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SNCR.
Synchronoss Technologies Risk Analysis
Synchronoss Technologies disclosed 64 risk factors in its most recent earnings report. Synchronoss Technologies reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Synchronoss Technologies Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $15.73B | 25.19 | 27.80% | 1.98% | 2.64% | -53.16% | |
63 Neutral | $3.98B | ― | -9.73% | ― | 12.68% | 54.80% | |
62 Neutral | $122.95M | 27.78 | 10.71% | ― | -19.06% | ― | |
62 Neutral | $313.71M | ― | 24.92% | ― | ― | ― | |
59 Neutral | $10.71B | 10.35 | -6.77% | 3.02% | 7.32% | -11.27% | |
56 Neutral | $375.27M | ― | -2.14% | ― | 24.52% | 61.08% | |
47 Neutral | $131.61M | ― | -113.56% | ― | 347.52% | 62.22% |
* Technology Sector Average
Performance Comparison
SNCR
Synchronoss Technologies
10.44
3.99
61.86%
GEN
Gen Digital
25.67
6.09
31.10%
BAND
Bandwidth
12.89
-5.86
-31.25%
TENB
Tenable Holdings
33.68
-11.35
-25.21%
BKKT
Bakkt Holdings, Inc. Class A
9.53
3.22
51.03%
GRRR
Gorilla Technology Group Inc.
17.80
11.79
196.17%
Synchronoss Technologies Earnings Call Summary
Earnings Call Date:Mar 11, 2025
(Q4-2024)
| % Change Since: 46.42%|
Next Earnings Date:May 06, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong financial performance with significant year-over-year growth in revenue and EBITDA, successful strategic transformation, and major contract extensions. However, challenges include the wind-down of BT's legacy offering and non-recurring SoftBank revenue. Despite these challenges, the positive aspects, including new product launches and AI integration, suggest a promising outlook.Q4-2024 Updates
Positive Updates
Strong Financial Performance
Full year revenue reached $173.6 million, a 5.7% increase year-over-year. Adjusted EBITDA increased by approximately 61% year-over-year to over $50 million.
High Margin Transformation
Completion of strategic transformation to a high margin global cloud solutions provider, generating approximately 29% adjusted EBITDA margins.
Significant Contract Extensions
Signed multiyear extensions with AT&T and SFR, with over 90% of 2025 projected revenue under multiyear contracts with tier one customers.
AI and Machine Learning Integration
Introduced AI and machine learning enhancements to the cloud platform, increasing user engagement and offering potential new revenue opportunities.
Launch of Capsyl
Announced Capsyl, a Synchronoss branded Personal Cloud product for smaller and international operators, expanding potential subscriber base.
Negative Updates
BT Legacy Offering Wind Down
BT decided to wind down their legacy Wireline cloud offering, resulting in a $6 million annualized revenue loss expected in 2025.
Non-Recurring SoftBank Revenue
Approximately $2 million in professional services revenue from SoftBank integration work not expected to recur in 2025.
Debt Refinancing Needs
Active efforts needed for debt refinancing, including senior notes and term loan, with updates expected in coming months.
Company Guidance
During the Synchronoss Technologies Fourth Quarter 2024 Earnings Conference Call, the company provided robust guidance, highlighting a transformative year with a strategic pivot towards becoming a high-margin global cloud solutions provider. For 2025, Synchronoss projects revenue between $170 million and $180 million, with adjusted EBITDA expected to be in the range of $52 million to $56 million, and free cash flow anticipated between $11 million and $16 million. They aim for an adjusted gross margin between 78% and 80%, while maintaining over 90% of revenue as recurring. Despite challenges such as a $6 million revenue loss from BT's wind-down and a non-recurring $2 million from SoftBank integration, Synchronoss expects mid-single-digit subscriber growth and is confident in its ability to achieve double-digit revenue growth in the coming years through strategic expansions and new initiatives such as Capsyl.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.