Synchronoss Technologies, Inc. (NASDAQ:SNCR) Q4 2022 Earnings Conference Call March 7, 2023 4:30 PM ET

Company Participants

Jeff Miller - President and Chief Executive Officer

Lou Ferraro - Chief Financial Officer

Conference Call Participants

Josh Nichols - B. Riley

Michael Latimore - Northland Capital Markets

Operator

Good afternoon. Welcome to Synchronoss Technologies Fourth Quarter and Full Year 2022 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 is being recorded and made available for replay via a link to 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 fourth quarter and full year ended December 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 fourth quarter and full year 2022. After that, we'll open the call for questions. Our continued focus on growing our core cloud business and managing our cost structure resulted in further improvements in profitability and cash flow in the fourth quarter, enabling us to meet our bottom line goals for the year.

Despite the challenging macroeconomic environment, including headwinds with lower mobile handset purchase activity and subscriber activations, we grew subscribers by a double-digit rate for the 11th consecutive quarter. And more significantly, we increased our invoiced cloud revenue by 9.5% in Q4 and more than 8% for the full year. Clearly, the momentum of our cloud business remains strong. Our cash generation capabilities are materializing and growing, and we continue to deliver innovative and profitable solutions to our global base of customers. Our performance throughout 2022 has set the stage for us to continue to scale our high-margin cloud business and attain our goal of generating positive cash flow in 2023. And as we look forward to 2024, the combination of anticipated cloud subscriber growth matched with the conclusion of certain nonrecurring payment obligations positions us to ramp cash growth significantly further in 2024.