Synchronoss Technologies, Inc. (NASDAQ:SNCR) Q1 2023 Earnings Conference Call May 9, 2023 4:30 PM ET

Company Participants

Jeff Miller - President and Chief Executive Officer

Lou Ferraro - Chief Financial Officer

Conference Call Participants

Operator

Good afternoon. Welcome to Synchronoss Technologies First Quarter 2023 Earnings Conference Call.

Joining us today are Synchronoss Technologies President and CEO, Jeff Miller; and CFO, Lou Ferraro. Following their remarks, we will open the call for your questions. Then, before we conclude, I'll provide the necessary cautions regarding the forward-looking statements made by management during this call. I would like to remind everyone that this call will be recorded and made available for replay via a link in the Investor Relations section of the company's website at synchronoss.com.

Now I'd like to turn the call over to Synchronoss' CEO, Jeff Miller. Sir, you may proceed.

Jeff Miller

Thank you, operator. Welcome, everyone, and thank you for joining us today. After the market closed, we issued a press release announcing our results for the first quarter ended March 31, 2022. A copy of the press release is available in the Investor Relations section of our website. And I encourage all listeners to view our release for additional information on what we'll be discussing today.

I'll start with a review of our estate updates and highlights before turning it over to Lou to discuss our financial results for the. Then, we'll open the call up for questions.

We continue to build upon the momentum of our strong, cloud core business as we recorded our 12th consecutive quarter of double-digit cloud subscriber growth, and officially surpassed 10 million subscribers across our global customer base in the first quarter. Cloud remains the growth engine for Synchronoss and while this milestone reflects our efforts to date, we believe it represents only a fraction of the potential opportunity to penetrate our existing customer subscriber base and the total addressable market at large.

With work underway for another global Tier 1 operator scheduled to go live later this year and the expansion of new channels and marketing initiatives at existing customers, we expect to continue our double-digit rate of subscriber growth for the foreseeable future. Our cash performance has accelerated as well. Invoiced cloud revenue increased nearly 12% year-over-year in Q1 which is the strongest quarterly performance we’ve achieved since introducing this metric.

Over the last 12 months, we’ve maintained a 9.6% year-over-year invoice cloud revenue growth rate. The financial strength of our invoice cloud revenue growth combined with our expectation to continue executing according to our plan has us on track to achieve return to cash flow positivity for the year. Despite on-going challenges in the macroeconomic environment we are also on pace to return to revenue growth on a GAAP basis in the second half of this year. Aided by the continued growth of cloud as that portion of the business becomes an even more meaningful percentage of our combined revenues.