Synchronoss Technologies, Inc. (NASDAQ:SNCR) Q1 2024 Earnings Conference Call May 7, 2024 4:30 PM ET
Company Participants
Jeff Miller - President and CEO
Lou Ferraro - CFO
Conference Call Participants
Aditya Dagaonkar - Northland Capital
Matt Schwarz - MAZE Investments
Operator
Good afternoon. Welcome to Synchronoss Technologies First Quarter 2024 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 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, 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 first quarter ended March 31, 2024. A copy of the press release is available in the Investor Relations section of our website.
In the first quarter, we continued to execute on our strategic transformation as a global cloud solutions provider, focused solely on our high-margin personal cloud services. This targeted approach has allowed us to streamline our operations and enhance our financial profile, delivering top line growth and improved profitability in Q1.
In the quarter, we grew total revenue to $43 million, with recurring revenue representing 91% of total revenue, positioning us well to meet our annual financial targets. This performance was accompanied by an improvement in adjusted gross margins to 76% from 74% in the prior year, while adjusted EBITDA grew 78% year-over-year, it led to $10.9 million in the quarter.
The gains we are witnessing are a direct result of our transition to a cloud-only business model and the additional cost optimization efforts we undertook following the divestiture of our noncore businesses in Q4 of 2023.
Further highlighting our strong start to the year, we are pleased to report positive net income of $2.3 million and earnings per share of $0.23 for the first quarter, representing a significant year-over-year improvement in net income of $15.7 million and EPS of $1.62, respectively.
With our Q1 financial performance affirming our strategy, we are on track to elevate free cash flow generation to at least $10 million in 2024, and we anticipate further improvements in 2025, as we enhance revenue to cash conversion.