Synchronoss Technologies (SNCR) AI Stock Analysis

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Synchronoss Technologies

(NASDAQ:SNCR)

Rating:50Neutral

Price Target:

$7.50

▲( 11.11% Upside)

Synchronoss Technologies presents a balanced risk-reward profile. The strengths lie in operational improvements and strategic refinancing, which enhance financial metrics despite ongoing losses. However, the high leverage and negative profitability create significant risks. Technical indicators further suggest bearish trends, requiring careful consideration for potential investors.

Synchronoss Technologies (SNCR) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$79.68M

Dividend YieldN/A

Average Volume (3M)92.47K

Price to Earnings (P/E)26.8

Beta (1Y)1.64

Revenue Growth-13.46%

EPS Growth95.46%

CountryUS

Employees802

SectorTechnology

Sector Strength76

IndustrySoftware - Infrastructure

Share Statistics

EPS (TTM)-0.30

Shares Outstanding11,497,976

10 Day Avg. Volume135,668

30 Day Avg. Volume92,469

Financial Highlights & Ratios

PEG Ratio0.11

Price to Book (P/B)2.77

Price to Sales (P/S)0.00

P/FCF Ratio3.87

Enterprise Value/Market Cap3.40

Enterprise Value/Revenue0.37

Enterprise Value/Gross Profit2.15

Enterprise Value/Ebitda2.13

Forecast

1Y Price Target

$16.50

Price Target Upside144.44% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering2

Synchronoss Technologies Business Overview & Revenue Model

Company DescriptionSynchronoss Technologies, Inc. provides cloud, messaging, digital, and network management platforms, products, and solutions in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company's platforms, products, and solutions include content backup, view, manage, engage, transfer, and restore solutions in operating systems and devices; multi-channel messaging, peer-to-peer communications, and application-to-person commerce solutions; email solutions; customer journey and workflow design, development, orchestration, and experience management solutions; and telecom network infrastructure designing, procuring, managing, and optimizing solutions. It also streamlines the activation of new services and devices. In addition, the company offers software development and customization services. It markets and sells its services through direct sales force and strategic partners. The company was incorporated in 2000 and is headquartered in Bridgewater, New Jersey.

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 transitioned from losses to profitability and improved cash flows. However, challenges include declining revenue and a shrinking equity base, which raise concerns about long-term sustainability despite a strong gross profit margin and improved net income.

Income Statement

Neutral

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.

Balance Sheet

Neutral

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.

Cash Flow

Positive

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.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
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
48.86M	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
210.22M	166.21M	169.72M	169.20M	54.27M
	Net Debt
176.85M	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

Technical Analysis Sentiment

Negative

Last Price6.75

Price Trends

50DMA

10.07

Negative

100DMA

9.72

Negative

200DMA

10.64

Negative

Market Momentum

MACD

-0.95

Positive

RSI

29.35

Positive

STOCH

8.44

Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SNCR, the sentiment is Negative. The current price of 6.75 is below the 20-day moving average (MA) of 8.84, below the 50-day MA of 10.07, and below the 200-day MA of 10.64, indicating a bearish trend. The MACD of -0.95 indicates Positive momentum. The RSI at 29.35 is Positive, neither overbought nor oversold. The STOCH value of 8.44 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 3 New Risks

We may not generate sufficient cash to enable us to service our debt. Q4, 2024

We may fail to refinance, redeem or repay in full our Senior Notes prior to March 31, 2026, and in that event the maturity date of our Term Loan will be March 31, 2026. Q4, 2024

The terms of our Credit Agreement restrict our operating and financial flexibility, and any breach of the covenants in that agreement, if the lenders elected to accelerate the due date of the loan, could significantly harm our business and prospects and lead to the liquidation of our business. Q4, 2024

Synchronoss Technologies Peers Comparison

Overall Rating

UnderperformOutperform

Sector (60)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GEN	75 Outperform	$17.62B	27.57	28.80%	1.76%	3.23%	7.79%
BAND	65 Neutral	$422.34M	―	-0.32%	―	18.51%	97.57%
Sector *	60 Neutral	$11.56B	10.24	-7.04%	2.94%	7.46%	-10.54%
TENB	60 Neutral	$3.99B	―	-12.09%	―	11.79%	35.35%
BKKT	53 Neutral	$177.93M	―	-60.94%	―	128.83%	73.67%
GRRR	52 Neutral	$340.95M	―	24.92%	―	―	―
SNCR	50 Neutral	$79.68M	26.79	-3.58%	―	-13.46%	95.46%

* Technology Sector Average

Performance Comparison

SNCR

Synchronoss Technologies

6.75

-3.17

-31.96%

GEN

Gen Digital

27.60

3.37

13.91%

BAND

Bandwidth

13.71

-7.11

-34.15%

TENB

Tenable Holdings

32.05

-11.08

-25.69%

BKKT

Bakkt Holdings, Inc. Class A

12.16

-3.46

-22.15%

GRRR

Gorilla Technology Group Inc.

15.47

10.18

192.44%

Synchronoss Technologies Earnings Call Summary

Earnings Call Date:May 06, 2025

(Q1-2025)

% Change Since: -34.59%|

Next Earnings Date:Aug 12, 2025

Earnings Call Sentiment Positive

The earnings call reflects a mix of positive trends in subscriber growth, financial improvements, and strategic refinancing, contrasted by revenue challenges, a net loss, and macroeconomic uncertainties. The substantial highlights and strategic achievements slightly outweigh the lowlights.

Q1-2025 Updates

Positive Updates

Strong Subscriber and Revenue Growth

Subscriber growth increased by 3.3% across the global customer base, and over 90% of revenue is recurring, with long-term contracts secured for 2025.

Improved Financial Metrics

Adjusted EBITDA increased by 17% year-over-year to $12.7 million, representing an adjusted EBITDA margin of 30.2%.

Successful Debt Refinancing

Refinanced debt with a $200 million, four-year term loan, retiring $121 million in senior notes and $73 million in prior term loans, extending debt maturity to 2029.

Cost Control Achievements

Operational expenses reduced by 11.5% year-over-year through process streamlining and resource optimization.

Strong Partnerships Driving Growth

Continued subscriber growth at AT&T, SoftBank, and Verizon, with new integrations and offerings enhancing cloud service adoption.

Negative Updates

Slight Revenue Decline

Total revenue for the quarter was $42.2 million, slightly down from $43 million in the prior year due to the expiration of a customer contract.

Net Loss for the Quarter

Reported a net loss of $3.8 million or a negative $0.37 per share, primarily due to $5.6 million non-cash foreign exchange losses.

Negative Free Cash Flow

Free cash flow was negative $3 million, and adjusted free cash flow was negative $3.3 million, attributed to historical cash spend trends in the first quarter.

Macroeconomic Challenges and Tariffs

Potential impact of tariffs and global trade uncertainties on partner carriers and device costs, which may affect subscriber growth.

Company Guidance

During the Synchronoss Technologies' First Quarter 2025 earnings call, the company reiterated its annual guidance metrics, highlighting several key financial performance indicators. For the quarter, Synchronoss reported revenue of $42.4 million with a 3.3% growth in subscriber numbers. Adjusted EBITDA rose by 17% year-over-year to $12.7 million, achieving an EBITDA margin of 30.2%. The company maintained over 90% of its revenue as recurring, backed by long-term contracts with major carriers like AT&T, Verizon, and SoftBank. Synchronoss also completed a refinancing transaction with a $200 million, four-year term loan to strengthen its capital structure, reduce senior notes, and support its growth initiatives. Operational expenses were reduced by 11.5% year-over-year, contributing to improved income from operations, which increased by 79.8% to $8.2 million. The company reaffirmed its 2025 guidance, expecting revenue between $170 million and $180 million, adjusted gross margin of 78% to 80%, and adjusted EBITDA in the range of $52 million to $56 million. Despite the challenging macroeconomic environment, Synchronoss remains optimistic about its potential for subscriber growth and cash flow, projecting free cash flow of $11 million to $16 million, excluding the impact of a pending federal tax refund.

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.