Completes Strategic Transformation into a
Launches SoftBank Personal Cloud in Q4, Expanding Global
Q4 Revenue of
Company Reaffirms 2024 Guidance
On
During the fourth quarter of 2023 there was a change in the capital structure due to a reverse stock split, which decreased the number of common shares outstanding. The Company retroactively adjusted the computations of basic and diluted EPS for all periods presented on the Consolidated Statement of Operations.
Fourth Quarter and Recent Operational Highlights
- Exceeded the upper end of previously provided guidance ranges for 2023 revenue and adjusted EBITDA, delivering
$164.2 million and$31.4 million , respectively. Additionally, the Company achieved positive net cash flow in 2023. - Launched Synchronoss Personal Cloud as Anshin Data Box with SoftBank, further expanding the Company’s global footprint in the Japanese market and showcasing the adaptability and appeal of its Personal Cloud offerings in the global marketplace.
- Successfully executed on the strategic divestiture of the non-core Messaging and NetworkX businesses, realizing the Company’s transformation to exclusively focus on providing its industry-leading, high-margin personal Cloud solution to the global marketplace.
- Following the divestiture, the Company immediately removed
$15 million in annualized FY 2024 costs from the go-forward Cloud business. These cost reductions not only enhance operational efficiency but also recalibrate the financial framework, setting a new profitability baseline with expectations of achieving gross margins greater than 75% and adjusted EBITDA margins surpassing 25% in 2024. - Unveiled the new version of the “AI-powered” Personal Cloud Platform, which includes advanced features and capabilities that leverage artificial intelligence to enhance user experience and functionality.
- Appointed
Kevin Rendino to the Board of Directors, bolstering the Company’s leadership team as a significant shareholder with deep financial and capital markets expertise.
Management Commentary
“As we reflect on 2023,
“In 2024 we plan to capitalize on our strengths: enhancing subscriber growth with our Tier One customers and further innovating our Cloud solutions to deliver compelling value. These efforts, combined with our disciplined approach to cost management, pave the way for substantial financial progress. Our recent launch of Anshin Data Box, in collaboration with SoftBank, has exceeded initial expectations. This success further signifies the strength and adaptability of our Cloud offerings, and opens avenues for growth with current and potential partners worldwide. We also recently unveiled significant enhancements to our Synchronoss Personal Cloud platform, including AI-powered photo editing features, Enhanced Plans for tailored subscriber offerings, and a streamlined onboarding process. Our refined focus and strategic advancements have permeated our operations with a new level of efficiency and purpose, setting the stage for
Key Performance Indicators ("KPIs")
- Cloud subscriber growth of approximately 9% continued the Company’s ongoing performance of year-over-year subscriber growth.
- Quarterly recurring revenue was 88.0% of total revenue, consistent with 89.5% of total revenue in the third quarter of 2023.
GAAP revenue breakdown by product is included below. Given the divestiture of the NetworkX and Messaging businesses in Q4 2023, such detailed revenue segmentation will become obsolete. Starting with the first quarter of 2024 results announcement,
Q4 2023 vs Q4 2022 | |||||||||||
(in thousands) | Q4 2023 Revenue | Q4 2022 Revenue | % Increase/ (Decrease) | % of Total Revenue | |||||||
Cloud | $ | 40,972 | $ | 39,795 | 3.0 | % | 99.0 | % | |||
NetworkX | 11 | 548 | (98.0 | )% | — | % | |||||
Messaging | 419 | 909 | (53.9 | )% | 1.0 | % | |||||
Total | $ | 41,402 | $ | 41,252 | 100.0 | % |
Fourth Quarter 2023 Financial Results:
Results compare 2023 fiscal fourth quarter end (
- Total revenue was
$41.4 million , consistent with$41.3 million in the prior year period. The revenue performance was the result of growth in Cloud subscribers, offset by the expiration of legacy contracts recorded in fourth quarter of 2022 in the NetworkX and Messaging product sets. - Gross profit increased 2.5% to
$26.5 million (63.9% of total revenue) from$25.8 million (62.5% of total revenue) in the prior year period. Gross margins increased as a result of lower cost of revenues associated with a higher concentration of Cloud revenue to total revenue. This effect was partially offset by restructuring costs as well as increased depreciation and amortization associated with capitalized software development. - Income (loss) from operations was
$0.2 million , a significant improvement from a loss of$(5.8) million in the prior year period. This change was largely due to a$7.9 million reduction in selling, general and administrative expenses associated with the prior year adjustment to contingent consideration and the impact from the sale and product sunsetting of non-strategic assets in 2022. This was partially offset by$3.6 million in restructuring charges related to the divestiture in fourth quarter of 2023. - Net loss was
$(35.0) million , or$(3.56) per share, compared to$(15.9) million , or$(1.66) per share, in the prior year period. Net loss from continuing operations was$(11.8) million , or$(1.46) per share, compared to$(16.2) million , or$(1.92) per share, in the prior year period. Net loss from discontinued operations was$(20.6) million , or$(2.10) per share, compared to net income of$2.5 million , or$0.26 per share, in the prior year period. The increase in net loss was primarily due to the loss on the divestiture of Messaging and NetworkX. - Adjusted EBITDA (a non-GAAP metric reconciled below) increased 127% to
$10.0 million (24.1% of total revenue) from$4.4 million (10.7% of total revenue) in the prior year period. The increase in adjusted EBITDA margin was primarily attributable to cost-saving initiatives executed throughout the year. - Cash and cash equivalents were
$24.6 million atDecember 31, 2023 , compared to$17 .6 million1 atSeptember 30, 2023 and$21.9 million 2 from continuing and discontinued operations atDecember 31, 2022 . In Q4 2023, free cash flow was$(4.4) million and adjusted free cash flow was$1.4 million . For the full year, free cash flow improved to$(1.0) million from$(3.8) million in 2022, and adjusted free cash flow improved to$14.8 million from$6.1 million in 2022. The Company did not receive additional tax refunds during the period, leaving its remaining balance due at approximately$28 million , which is expected to be received in the coming quarters.
1 Inclusive of
2 Inclusive of
Full Year GAAP revenue breakdown by product is included below. Given the divestiture of the NetworkX and Messaging businesses in Q4 2023, such detailed revenue segmentation will become obsolete. Starting with the first quarter of 2024 results announcement,
2023 vs 2022 | |||||||||||
(in thousands) | Full Year 2023 Revenue | Full Year 2022 Revenue | Increase/ (Decrease) | % of Total Revenue | |||||||
Cloud | $ | 162,215 | $ | 163,331 | (0.7 | )% | 98.8 | % | |||
NetworkX | 790 | 7,214 | (89.0 | )% | 0.5 | % | |||||
Messaging | 1,191 | 3,211 | (62.9 | )% | 0.7 | % | |||||
$ | 164,196 | $ | 173,756 | 100.0 | % |
Full Year 2023 Financial Results:
Results compare 2023 fiscal year end (
- Total revenue decreased (5.5)% to
$164.2 million from$173.8 million in the prior year. The change in full-year revenue was primarily due to the expected runoff of deferred revenue recognized in the first half of 2022 and revenue recognized from the DXP and Activation assets prior to their divestiture in 2022. The decrease in revenue was partially offset by continued Cloud subscriber growth and professional services associated with the launch of SoftBank. - Gross profit decreased (7.6)% to
$105.8 million (64.4% of total revenue) from$114.5 million (65.9% of total revenue) in the prior year, due to deferred revenue run-off in the first half of the prior year and a legacy product sunsetting in 2022. An upturn in gross profit and margins was observed in the latter half of 2023, driven by a growing share of Cloud revenue, indicating an improving trend in gross margin and profit performance following the strategic shift away from legacy products. - (Loss) income from operations was
$(10.6) million compared to$0.3 million in 2022. The increase in operating loss was primarily the result of the changes in revenue, restructuring expenses, and impairments on a note receivable in the third quarter of the current year. Cost-saving initiatives executed throughout the year provided a partial offset. - Net loss was
$(64.5) million , or$(6.62) per share, compared to$(17.5) million , or$(1.81) per share, in the prior year. Net loss from continuing operations was$(4.52) per share, compared to$(1.71) in the prior year. Net loss from discontinued operations was$(2.10) per share, compared to$(0.10) per share in the prior year. The increase in net loss was primarily due to the lower revenue, changes in non-cash foreign exchange, the aforementioned impairment, and the loss from the sale of Messaging and NetworkX. - Adjusted EBITDA (a non-GAAP metric reconciled below) increased 13% to
$31.4 million (19.1% of total revenue) from$27.7 million (15.9% of total revenue) in the prior year. The increase in adjusted EBITDA margin was primarily attributable to cost-saving initiatives executed throughout the year.
Financial Commentary
CFO
2024 Financial Outlook
The Company expects Cloud subscriber growth to be in the high-single-digit to low-double-digit range throughout 2024.
For the fiscal year ending
The Company expects adjusted EBITDA to range between
A reconciliation of GAAP to non-GAAP results has been provided in the financial statement tables included in this press release. An explanation of these measures is included below under the heading "Non-GAAP Financial Measures." With respect to forward looking statements related to adjusted EBITDA, the Company has relied upon the exception in item 10(e)(1)(i)(B) of Regulation S-K and has not provided a quantitative reconciliation of forecasted adjusted EBITDA to forecasted GAAP net income (loss) attributable to
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Non-GAAP Financial Measures
Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Investors are encouraged to review the reconciliation of these non-GAAP measures to their most directly comparable GAAP financial measures as detailed above. Investors are encouraged to also review the Balance Sheet, Statement of Operations, and Statement of Cash Flow. As previously mentioned, a reconciliation of GAAP to non-GAAP results has been provided in the financial statement tables included in this press release.
Forward-Looking Statements
This press release includes statements concerning
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SYNCHRONOSS TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited) (In thousands)
ASSETS | ||||||
Cash and cash equivalents | $ | 24,572 | $ | 18,310 | ||
Accounts receivable, net | 23,477 | 31,685 | ||||
Operating lease right-of-use assets | 14,791 | 20,106 | ||||
183,908 | 182,259 | |||||
Other assets | 63,589 | 68,682 | ||||
Assets of discontinued operations | — | 77,030 | ||||
Total assets | $ | 310,337 | $ | 398,072 | ||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||
Accounts payable and accrued expenses | $ | 46,602 | $ | 54,014 | ||
Deferred revenues | 1,095 | 1,948 | ||||
Debt, non-current | 136,215 | 134,584 | ||||
Operating lease liabilities, non-current | 23,593 | 29,145 | ||||
Other liabilities | 4,898 | 3,161 | ||||
Liabilities of discontinued operations | — | 26,275 | ||||
Preferred stock | 58,802 | 68,348 | ||||
Redeemable noncontrolling interest | 12,500 | 12,500 | ||||
Stockholders’ equity | 26,632 | 68,097 | ||||
Total liabilities and stockholders’ equity | $ | 310,337 | $ | 398,072 |
SYNCHRONOSS TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited) (In thousands, except per share data)
Three Months Ended | Twelve Months Ended | |||||||||||||||||||
2023 | 2022 | 2023 | 2022 | 2021 | ||||||||||||||||
Net revenues | $ | 41,402 | $ | 41,252 | $ | 164,196 | $ | 173,756 | $ | 189,342 | ||||||||||
Costs and expenses: | ||||||||||||||||||||
Cost of revenues1 | 10,292 | 11,999 | 42,218 | 46,500 | 60,160 | |||||||||||||||
Research and development | 11,243 | 11,672 | 46,565 | 49,598 | 59,811 | |||||||||||||||
Selling, general and administrative | 11,709 | 19,578 | 65,216 | 61,153 | 74,219 | |||||||||||||||
Restructuring charges | 3,622 | — | 4,013 | 1,443 | 3,684 | |||||||||||||||
Depreciation and amortization | 4,352 | 3,827 | 16,830 | 14,756 | 17,231 | |||||||||||||||
Total costs and expenses | 41,218 | 47,076 | 174,842 | 173,450 | 215,105 | |||||||||||||||
Income (loss) from operations | 184 | (5,824 | ) | (10,646 | ) | 306 | (25,763 | ) | ||||||||||||
Interest income | 56 | 226 | 426 | 453 | 38 | |||||||||||||||
Interest expense | (3,566 | ) | (3,508 | ) | (13,963 | ) | (13,639 | ) | (6,411 | ) | ||||||||||
Gain on sale of DXP | — | — | — | 2,549 | — | |||||||||||||||
Other (expense) income, net | (6,341 | ) | (6,897 | ) | (5,128 | ) | 3,553 | (4,916 | ) | |||||||||||
Loss from continuing operations, before taxes | (9,667 | ) | (16,003 | ) | (29,311 | ) | (6,778 | ) | (37,052 | ) | ||||||||||
(Provision) benefit for income taxes | (2,138 | ) | (181 | ) | (4,743 | ) | 59 | 8,787 | ||||||||||||
Net loss from continuing operations | (11,805 | ) | (16,184 | ) | (34,054 | ) | (6,719 | ) | (28,265 | ) | ||||||||||
Discontinued operations: | ||||||||||||||||||||
Net (loss) income from discontinued operations, before taxes | (2,424 | ) | 2,498 | (2,200 | ) | 921 | 6,777 | |||||||||||||
Loss on divestiture | (16,382 | ) | — | (16,382 | ) | — | — | |||||||||||||
(Provision) benefit for income taxes | (1,832 | ) | — | (1,935 | ) | (1,918 | ) | (1,610 | ) | |||||||||||
Net (loss) income from discontinued operations, net of taxes | (20,638 | ) | 2,498 | (20,517 | ) | (997 | ) | 5,167 | ||||||||||||
Net loss | (32,443 | ) | (13,686 | ) | (54,571 | ) | (7,716 | ) | (23,098 | ) | ||||||||||
Net income (loss) attributable to redeemable noncontrolling interests | 26 | 56 | 36 | (200 | ) | 156 | ||||||||||||||
Preferred stock dividend | (2,584 | ) | (2,297 | ) | (10,007 | ) | (9,552 | ) | (35,509 | ) | ||||||||||
Net loss attributable to | $ | (35,001 | ) | $ | (15,927 | ) | $ | (64,542 | ) | $ | (17,468 | ) | $ | (58,451 | ) | |||||
Earnings (loss) per share: | ||||||||||||||||||||
Basic: | ||||||||||||||||||||
Net loss from continuing operations | $ | (1.46 | ) | $ | (1.92 | ) | $ | (4.52 | ) | $ | (1.71 | ) | $ | (8.76 | ) | |||||
Net (loss) income from discontinued operations | (2.10 | ) | 0.26 | (2.10 | ) | (0.10 | ) | 0.71 | ||||||||||||
Basic | $ | (3.56 | ) | $ | (1.66 | ) | $ | (6.62 | ) | $ | (1.81 | ) | $ | (8.05 | ) | |||||
Diluted: | ||||||||||||||||||||
Net loss from continuing operations | $ | (1.46 | ) | $ | (1.92 | ) | $ | (4.52 | ) | $ | (1.71 | ) | $ | (8.76 | ) | |||||
Net (loss) income from discontinued operations | (2.10 | ) | 0.26 | (2.10 | ) | (0.10 | ) | 0.71 | ||||||||||||
Diluted | $ | (3.56 | ) | $ | (1.66 | ) | $ | (6.62 | ) | $ | (1.81 | ) | $ | (8.05 | ) | |||||
Weighted-average common shares outstanding: | ||||||||||||||||||||
Basic | 9,822 | 9,606 | 9,745 | 9,626 | 7,263 | |||||||||||||||
Diluted | 9,822 | 9,606 | 9,745 | 9,626 | 7,263 |
1 Cost of revenues excludes depreciation and amortization which are shown separately.
SYNCHRONOSS TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited) (In thousands)
Twelve Months Ended | |||||||||||
2023 | 2022 | 2021 | |||||||||
Net loss from continuing operations | $ | (34,054 | ) | $ | (6,719 | ) | $ | (28,265 | ) | ||
(Loss) income from discontinued operations, net of income taxes | (20,517 | ) | (997 | ) | 5,167 | ||||||
Adjustments to reconcile net loss to net cash provided by operating activities: | |||||||||||
Non-cash items | 61,516 | 39,919 | 47,570 | ||||||||
Changes in operating assets and liabilities | 11,884 | (14,844 | ) | (19,527 | ) | ||||||
Net cash provided by operating activities | 18,829 | 17,359 | 4,945 | ||||||||
Investing activities: | |||||||||||
Purchases of fixed assets | (1,302 | ) | (1,408 | ) | (1,521 | ) | |||||
Purchases of intangible assets and capitalized software | (18,572 | ) | (19,758 | ) | (22,972 | ) | |||||
Other investing activities | 23,674 | 8,000 | 550 | ||||||||
Net cash provided by (used in) investing activities | 3,800 | (13,166 | ) | (23,943 | ) | ||||||
Net cash (used in) provided by financing activities | (19,979 | ) | (13,276 | ) | 16,188 | ||||||
Effect of exchange rate changes on cash | 1 | (500 | ) | 643 | |||||||
Net increase (decrease) in cash and cash equivalents | 2,651 | (9,583 | ) | (2,167 | ) | ||||||
Beginning cash and cash equivalents from continuing operations | 18,310 | 29,336 | 31,679 | ||||||||
Beginning cash and cash equivalents from discontinued operations | 3,611 | 2,168 | 1,992 | ||||||||
Beginning cash and cash equivalents | 21,921 | 31,504 | 33,671 | ||||||||
Ending cash and cash equivalents from continuing operations | 24,572 | 18,310 | 29,336 | ||||||||
Ending cash and cash equivalents from discontinued operations | — | 3,611 | 2,168 | ||||||||
Ending cash and cash equivalents | $ | 24,572 | $ | 21,921 | $ | 31,504 |
SYNCHRONOSS TECHNOLOGIES, INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(Unaudited) (In thousands, except per share data)
Three Months Ended | Twelve Months Ended | |||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||
Non-GAAP financial measures and reconciliation: | ||||||||||||||||
GAAP Revenue | $ | 41,402 | $ | 41,252 | $ | 164,196 | $ | 173,756 | ||||||||
Less: Cost of revenues | 10,292 | 11,999 | 42,218 | 46,500 | ||||||||||||
Less: Restructuring1 | 654 | — | 746 | 61 | ||||||||||||
Less: Depreciation and Amortization2 | 4,002 | 3,452 | 15,446 | 12,676 | ||||||||||||
Gross Profit | 26,454 | 25,801 | 105,786 | 114,519 | ||||||||||||
Add / (Less): | ||||||||||||||||
Stock-based compensation expense | (105 | ) | 78 | 109 | 249 | |||||||||||
Restructuring, transition and cease-use lease expense | 755 | 57 | 1,389 | 319 | ||||||||||||
Depreciation and Amortization2 | 4,002 | 3,452 | 15,446 | 12,676 | ||||||||||||
Adjusted Gross Profit | $ | 31,106 | $ | 29,388 | $ | 122,730 | $ | 127,763 | ||||||||
Adjusted Gross Margin | 75.1 | % | 71.2 | % | 74.7 | % | 73.5 | % |
1 Amounts associated with cost of revenues.
2 Depreciation and Amortization contains a reasonable allocation for expenses associated with cost of revenues.
SYNCHRONOSS TECHNOLOGIES, INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(Unaudited) (In thousands, except per share data)
Three Months Ended | Twelve Months Ended | |||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||
GAAP Net loss attributable to | $ | (35,001 | ) | $ | (15,927 | ) | $ | (64,542 | ) | $ | (17,468 | ) | ||||
Less: Net loss (income) from discontinued operations, net of taxes | 20,638 | (2,498 | ) | 20,517 | 997 | |||||||||||
GAAP Net loss attributable to | (14,363 | ) | (18,425 | ) | (44,025 | ) | (16,471 | ) | ||||||||
Add / (Less): | ||||||||||||||||
Stock-based compensation expense | 501 | 546 | 4,389 | 4,463 | ||||||||||||
Restructuring, transition and cease-use lease expense | 4,140 | 324 | 7,701 | 2,844 | ||||||||||||
Amortization expense | 537 | 2,448 | 5,087 | 9,916 | ||||||||||||
Litigation, remediation and refiling costs, net | 807 | 1,892 | 6,804 | 1,665 | ||||||||||||
Non-GAAP Net (loss) income attributable to | (8,378 | ) | (9,577 | ) | (13,727 | ) | 6,055 | |||||||||
Non-GAAP Net (loss) income per share: | ||||||||||||||||
Basic | $ | (0.85 | ) | $ | (1.00 | ) | $ | (1.41 | ) | $ | 0.63 | |||||
Diluted | $ | (0.85 | ) | $ | (1.00 | ) | $ | (1.41 | ) | $ | 0.60 | |||||
Weighted-average shares outstanding: | ||||||||||||||||
Basic | 9,822 | 9,606 | 9,745 | 9,626 | ||||||||||||
Diluted | 9,822 | 9,606 | 9,745 | 10,095 |
1 Amortization from acquired intangible assets.
SYNCHRONOSS TECHNOLOGIES, INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(Unaudited) (In thousands)
Three Months Ended | Twelve Months Ended | |||||||||||||||||||||||||||
2023 | 2023 | 2023 | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||
Net (loss) income attributable to | $ | (35,001 | ) | $ | (5,171 | ) | $ | (10,979 | ) | $ | (13,391 | ) | $ | (15,927 | ) | $ | (64,542 | ) | $ | (17,468 | ) | |||||||
Add / (Less): | ||||||||||||||||||||||||||||
Stock-based compensation expense | 501 | 1,037 | 1,392 | 1,459 | 546 | 4,389 | 4,463 | |||||||||||||||||||||
Restructuring, transition and cease-use lease expense | 4,140 | 203 | 2,642 | 716 | 324 | 7,701 | 2,844 | |||||||||||||||||||||
STI Note receivable impairment | — | 4,834 | — | — | — | 4,834 | — | |||||||||||||||||||||
Change in contingent consideration | — | 824 | 659 | — | 3,638 | 1,483 | 3,638 | |||||||||||||||||||||
Litigation, remediation and refiling costs, net | 807 | 1,654 | 2,384 | 1,959 | 1,892 | 6,804 | 1,665 | |||||||||||||||||||||
Net loss (income) from discontinued operations, net of taxes | 4,256 | (1,763 | ) | 49 | 1,593 | (2,498 | ) | 4,135 | 997 | |||||||||||||||||||
Loss on sale of discontinued operations | 16,382 | — | — | — | — | 16,382 | — | |||||||||||||||||||||
Depreciation and amortization | 4,352 | 4,482 | 4,064 | 3,932 | 3,827 | 16,830 | 14,756 | |||||||||||||||||||||
Interest income | (56 | ) | (149 | ) | (127 | ) | (94 | ) | (226 | ) | (426 | ) | (453 | ) | ||||||||||||||
Interest expense | 3,566 | 3,482 | 3,461 | 3,454 | 3,508 | 13,963 | 13,639 | |||||||||||||||||||||
Gain on sale of DXP business | — | — | — | — | — | — | (2,549 | ) | ||||||||||||||||||||
Other expense (income), net | 6,341 | (4,456 | ) | 268 | 2,975 | 6,897 | 5,128 | (3,553 | ) | |||||||||||||||||||
Provision (benefit) for income taxes | 2,138 | 1,778 | (217 | ) | 1,044 | 181 | 4,743 | (59 | ) | |||||||||||||||||||
Net (income) loss attributable to noncontrolling interests | (26 | ) | 18 | (14 | ) | (14 | ) | (56 | ) | (36 | ) | 200 | ||||||||||||||||
Preferred dividend | 2,584 | 2,474 | 2,475 | 2,474 | 2,297 | 10,007 | 9,552 | |||||||||||||||||||||
Adjusted EBITDA (non-GAAP) | $ | 9,984 | $ | 9,247 | $ | 6,057 | $ | 6,107 | $ | 4,403 | $ | 31,395 | $ | 27,672 |
Three Months Ended | Twelve Months Ended | |||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||
$ | (407 | ) | $ | 6,281 | $ | 18,829 | $ | 17,359 | ||||||||
Add / (Less): | ||||||||||||||||
Capitalized software | (3,912 | ) | (4,508 | ) | (18,572 | ) | (19,758 | ) | ||||||||
Property and equipment | (73 | ) | (387 | ) | (1,302 | ) | (1,408 | ) | ||||||||
Free Cashflow | (4,392 | ) | 1,386 | (1,045 | ) | (3,807 | ) | |||||||||
Add: Litigation and remediation costs, net | 3,914 | 1,593 | 11,523 | 4,296 | ||||||||||||
Add: Restructuring | 1,889 | 1,076 | 4,292 | 5,654 | ||||||||||||
Adjusted Free Cashflow | $ | 1,411 | $ | 4,055 | $ | 14,770 | $ | 6,143 |
SYNCHRONOSS TECHNOLOGIES, INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(Unaudited) (In thousands)
Three Months Ended | Twelve Months Ended | |||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||
GAAP Cloud Revenue | $ | 40,972 | $ | 39,795 | $ | 162,215 | $ | 163,331 | ||||||
Increase / (Decrease) Change in Deferred Revenue | 932 | 999 | (75 | ) | (6,661 | ) | ||||||||
(Increase) / Decrease: Change in Unbilled Receivables & Contract Assets | 2,901 | 583 | 10,955 | (4,123 | ) | |||||||||
Invoiced Cloud Revenue | $ | 44,805 | $ | 41,377 | $ | 173,095 | $ | 152,547 |
Invoiced Cloud Revenue is defined as GAAP revenue for Cloud disaggregated revenue stream, plus the period change in deferred revenue balance related to the Cloud revenue stream, less the period change in Unbilled Receivables and Contract Assets balance related to the Cloud revenue stream.
Source:
2024 GlobeNewswire, Inc., source