Synchronoss Technologies, Inc. (NASDAQ:SNCR) Q1 2022 Earnings Conference Call May 10, 2022 4:30 PM ET

Company Participants

Jeff Miller - President and Chief Executive Officer

Taylor Greenwald - Chief Financial Officer

Conference Call Participants

Josh Nichols - B. Riley

Jon Hickman - Ladenburg

Operator

Good afternoon and welcome to Synchronoss Technologies Fiscal First Quarter 2022 Earnings Conference Call. Joining us today are Synchronoss Technologies’ President and CEO, Jeff Miller; and CFO, Taylor Greenwald. 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 would like to remind everyone that this call will be recorded – sorry, I’m repeating myself. Now I’d like to turn the call over to Synchronoss’ CEO, Mr. Jeff Miller. Sir, please go ahead. The floor is yours.

Jeff Miller

Thank you, Jim and welcome everyone and thank you all 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 release is available on our Investor Relations section of our website and I encourage all listeners to view our release for additional information on what we will discuss today.

I’d like to start with a review of our recent updates and highlights before turning the call over to Taylor to discuss further financial results for the quarter. After that, as stated, we will share – open up the call for questions.

In the first quarter, we continued to grow our high-margin recurring revenue Cloud business. During the period, we increased Cloud revenue as a percentage of total revenue to 63%. We produced strong Cloud subscriber growth of 18% year-over-year while increasing recurring revenue to approximately 85% of revenues in the quarter. Financially, our performance translated to 6.7% increase in our year-over-year Cloud revenue, an 11% increase in company gross profit and a more than 100% increase in adjusted EBITDA. Put together, our results demonstrate that our strategy is working and that we are confident in the momentum that we’re gaining.

Operationally, our performance was highlighted by several key product developments in our core Cloud business as well as the launch of RCS messaging with a Tier 1 carrier in the United States. More recently, we introduced Synchronoss Cloud for Home, which positions us to further benefit from the momentum of 5G adoption among our major wireless carrier customers. Going forward, simplifying the focus and improving the composition of our business, remains a top priority. And over the course of this year, we expect to continue driving improvements in our top line through continued Cloud revenue and subscriber growth while improving the bottom line through diligent cost management.