Synchronoss Technologies, Inc. (NASDAQ:SNCR) Q3 2023 Earnings Conference Call November 7, 2023 4:30 PM ET

Company Participants

Jeff Miller - President and Chief Executive Officer

Lou Ferraro - Chief Financial Officer

Conference Call Participants

Jon Hickman - Ladenburg Thalmann

Aditya Dagaonkar - Northland Capital Markets

Operator

Good afternoon. Welcome to Synchronoss Technologies Third Quarter 2023 Earnings Conference Call. Joining us today are Synchronoss Technologies President and CEO, Jeff Miller; and CFO, Lou Ferraro. [Operator Instructions] 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.

I would now like to turn the call over to Synchronoss CEO, Jeff Miller. Sir, please 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 third quarter ended September 30, 2023. A copy of the press release is available on our Investor Relations section of our website.

We also recently posted a presentation related to the divestiture of our Messaging and NetworkX businesses. I encourage all listeners to view this presentation and our release for additional information on what we'll be discussing today. I'll start with a review of our recent updates and highlights before turning it over to Lou to discuss our financial results for the quarter. Then we'll open the call for questions.

Last week, we achieved a significant milestone in our company's journey, propelling Synchronoss towards a new era. As the next step in our executing our cloud first strategy, we announced the sale of our Messaging and NetworkX businesses to Lumine Group. This planned strategic move positions Synchronoss as a higher-margin, cloud-only business. It also fortifies our capital structure and positions our organization for long-term growth with even higher incremental margins and improved cash conversion. With the Lumine Group transaction complete, we are now laser-focused on growing Synchronoss as a cloud-only enterprise dedicated to achieving and delivering stockholder value.

Turning to the updates for the quarter. In Q3, we executed on significant objectives to further strengthen the foundation of our cloud-only business, highlighted by a 7-year contract extension with our largest customer, Verizon. And in the current quarter, the highly anticipated launch of our Personal Cloud solution with SoftBank, a Tier 1 operator in Japan. These milestone achievements, along with AT&T's decision to exercise an extension of their existing agreement, clearly demonstrate the value that our cloud platform provides to Tier 1 operators and position Synchronoss for robust growth in the coming years.