Synchronoss Management Shared Its Initial Expectation To Improve The Company Cost Profile By Eliminating ~$10M-$15M Of Stranded And Other Costs From The Standalone Cloud Operations, Reaffirms 2023 And 2024 Financial Projections
Portfolio Pulse from Benzinga Newsdesk
Synchronoss Technologies, Inc. (SNCR) has completed its transformation to a cloud-only business, following the divestiture of its Messaging and NetworkX operations. The company expects to eliminate $10M-$15M in costs from its cloud operations, reaffirming its 2023 and 2024 financial projections. SNCR anticipates positive unadjusted cash flow for 2023, with adjusted EBITDA between $27M-$30M. For 2024, the company expects 5%-8% revenue growth, gross margins over 75%, and adjusted EBITDA margins above 25%. These improvements are attributed to the divestiture of non-core assets, removal of $15M in annualized operating expenses, and long-term contracts with major customers.
December 11, 2023 | 1:23 pm
News sentiment analysis
Sort by:
Ascending
POSITIVE IMPACT
Synchronoss Technologies expects to cut $10M-$15M in costs, reaffirms positive cash flow for 2023, and projects revenue growth and high margins for 2024 after its cloud-only business transformation.
The company's announcement of cost reductions and reaffirmed financial projections is likely to be viewed positively by investors, potentially leading to a short-term increase in stock price. The focus on long-term contracts and the successful launch of a new cloud offering with SoftBank suggest a strong outlook, which could further bolster investor confidence.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100