Synchronoss Technologies' Q2 revenue misses estimates

Overview

• Synchronoss Q2 revenue falls to $42.5 mln, missing analyst expectations

• Adjusted EBITDA of $12.8 mln misses estimates, per LSEG data

• Company received $33.9 mln CARES Act tax refund, aiding debt reduction

Outlook

• Synchronoss expects full-year revenue guidance of $170-$180 mln

• Company expects recurring revenue to be at least 90% of total

• Synchronoss projects adjusted EBITDA of $52-$56 mln for 2025

• Company anticipates free cash flow between $11 mln and $16 mln

Result Drivers

• REVENUE DECLINE - Revenue fell due to expiration of a customer contract in December 2024, partially offset by 2.0% cloud subscriber growth

• FOREIGN EXCHANGE LOSSES - Net loss impacted by $12.5 mln non-cash foreign exchange losses from intercompany revaluations

• DEBT REDUCTION - CARES Act tax refund of $33.9 mln used to pay down debt, saving $2.9 mln in annual interest

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the it services & consulting peer group is "buy."

• Wall Street's median 12-month price target for Synchronoss Technologies Inc is $26.50, about 70.5% above its August 8 closing price of $7.82

• The stock recently traded at 3 times the next 12-month earnings vs. a P/E of 5 three months ago

Press Release: ID:nGNXbFBzcB