Emphasizing Expected Long-Term Financial Outlook and Strong Cash Flow Generation in 2024 and Beyond
Identifies Significant Cost Savings for Immediate Positive Impact on Free Cash Flow
BRIDGEWATER, N.J., Dec. 11, 2023 (GLOBE NEWSWIRE) — Synchronoss Technologies, Inc. (“Synchronoss†or the “Companyâ€) (Nasdaq: SNCR) , a leading global provider of personal cloud software and services, today provided the following updates enabled by the completion of its cloud-only transformation.
In November, the Company announced the divestiture of its Messaging and NetworkX operations in conjunction with its Cloud-only business transformation. Post-transaction, management shared its initial expectation to improve the Company cost profile by eliminating approximately $10 million to $15 million of stranded and other costs from the standalone Cloud operations.
In line with its prior communications, management expects to achieve positive cash flow on an unadjusted basis for 2023, and it still expects 2023 adjusted EBITDA to range between $27 million and $30 million. This projection includes restructuring-related expenses and certain stranded costs, which the Company is actively removing from its standalone Cloud business.
Looking to 2024, the Company is also reiterating its expectation to achieve between 5% and 8% revenue growth, gross margins of greater than 75%, and adjusted EBITDA margins surpassing 25%. These projections position Synchronoss within the recognized ‘Rule of 30â€
1)Â Â Â the return to growth of the overall business.
2)Â Â Â higher corporate gross margins following the divestiture of non-core assets.
3)Â the removal of approximately $15 million of annualized operating expenses by year-end, enabled by that sale.
“Synchronossâ€
CFO Lou Ferraro added: “We are actively assessing all costs across our simplified Cloud business. To date, we have identified approximately $15M of annualized costs which we will have acted on by the end of 2023. The reductions include stranded costs following the divestiture, headcount reductions, operational expenses, and other costs that reflect our narrowed Cloud focus. Our ongoing review is focused on optimizing the efficiency of our Cloud business while judiciously investing for growth. These actions, in combination with our expectations for continued subscriber and revenue growth, provide us confidence that weâ€
Forward-Looking Statements
This press release includes statements concerning Synchronoss and its future expectations, plans and prospects that constitute “forward-looking statements†within the meaning of federal securities law. These forward-looking statements reflect our current views with respect to, among other things, future events and our financial performance and prospects. These statements are often, though not always made through the use of words or phrases such as “may,†“might,†“should,†“could,†“predict,†“will,†“seek,†“estimate,†“project,†“projection,†“annualized,†“strive,†“goal,†“target,†“outlook,†“aim,†“expect,†“plan,†“anticipate,†“intends,†“believes,†“potential†or “continue†or other similar expressions are intended to identify forward-looking statements. These forward-looking statements are not historical facts and are based on current expectations and projections about future events and financial trends that management believes may affect its business, financial condition and results of operations, any of which, by their nature, are uncertain and beyond our control. Accordingly, we caution you that any such forward looking statements are not guarantees of future performance and are subject to risks, assumptions, estimates and uncertainties that are difficult to predict. Although we believe that the expectations reflected in these forward-looking statements are reasonable as of the date made, actual results may prove to be materially different from the results expressed or implied by the forward-looking statements. Except as otherwise indicated, these forward-looking statements speak only as of the date of this press release and are subject to a number of risks, uncertainties and assumptions including, without limitation, risks relating to the Companyâ€
About Synchronoss
Synchronoss Technologies (Nasdaq: SNCR), a global leader in personal Cloud solutions, empowers service providers to establish secure and meaningful connections with their subscribers. Our SaaS Cloud platform simplifies onboarding processes and fosters subscriber engagement, resulting in enhanced revenue streams, reduced expenses, and faster time-to-market. Millions of subscribers trust Synchronoss to safeguard their most cherished memories and important digital content. Explore how our Cloud-focused solutions redefine the way you connect with your digital world at www.synchronoss.com .
Media Relations Contact:
Domenick Cilea
Springboard
dcilea@springboardpr.com
Investor Relations Contact:
Matt Glover and Tom Colton
Gateway Group, Inc.
SNCR@gateway-grp.com
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