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Synchronoss Technologies (SNCR - Free Report) reported fourth-quarter 2020 non-GAAP net loss of 19 cents per share that was narrower than the Zacks Consensus Estimate by 26.92%. The non-GAAP loss, however, widened from the prior-year quarter’s non-GAAP net loss of 6 cents per share.
Synchronoss’ GAAP revenues declined 23.4% year over year to $69.4 million but beat the consensus mark by 3.2%. Markedly, 82% of quarterly revenues were recurring in nature.
Total GAAP revenues for the full year came to $291.7 million, down 5.5% year over year. Annual Recurring Revenues represented 78% of total GAAP revenues for the full year.
Synchronoss Technologies, Inc. Price, Consensus and EPS Surprise
Notably, Synchronoss teamed up with Verizon (VZ - Free Report) to develop the Unlimited Verizon Cloud offering, during the fourth quarter.
Moreover, the company extended its partnership with AT&T (T - Free Report) Digital Services for three more years.
Synchronoss reported a 1.2% year-over-year decline in adjusted EBITDA during the fourth quarter.
Its adjusted gross profit was $41.5 million, marking a year-over-year decline of 15%. However, adjusted gross margin expanded 580 basis points (bps) to 59.8% on efficient cost management and margin expansion efforts.
Total costs and expenses decreased 34% year over year to $71.8 million. This reduction was primarily driven by a 50% year-on-year reduction in selling, general and administrative expenses.
Balance Sheet
As of Dec 31, 2020, Synchronoss had $33.7 million in cash and cash equivalents compared with $46.4 million reported in the previous quarter.
Total deferred revenues were $45.6 million, down 48% year over year, at the end of the year.
Guidance
For 2021, Synchronoss estimates revenues of $275-$285 million. Adjusted EBITDA is expected between $30 million and $35 million, representing an 8-26% year-on-year growth.
Zacks Rank & Stocks to Consider
Synchronoss currently carries a Zacks Rank #3 (Hold).
The long-term earnings growth rate for Skyworks Solutions is currently pegged at 18.98%.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
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Synchronoss' (SNCR) Q4 Earnings & Revenues Beat Estimates
Synchronoss Technologies (SNCR - Free Report) reported fourth-quarter 2020 non-GAAP net loss of 19 cents per share that was narrower than the Zacks Consensus Estimate by 26.92%. The non-GAAP loss, however, widened from the prior-year quarter’s non-GAAP net loss of 6 cents per share.
Synchronoss’ GAAP revenues declined 23.4% year over year to $69.4 million but beat the consensus mark by 3.2%. Markedly, 82% of quarterly revenues were recurring in nature.
Total GAAP revenues for the full year came to $291.7 million, down 5.5% year over year. Annual Recurring Revenues represented 78% of total GAAP revenues for the full year.
Synchronoss Technologies, Inc. Price, Consensus and EPS Surprise
Synchronoss Technologies, Inc. price-consensus-eps-surprise-chart | Synchronoss Technologies, Inc. Quote
Quarter Details
Notably, Synchronoss teamed up with Verizon (VZ - Free Report) to develop the Unlimited Verizon Cloud offering, during the fourth quarter.
Moreover, the company extended its partnership with AT&T (T - Free Report) Digital Services for three more years.
Synchronoss reported a 1.2% year-over-year decline in adjusted EBITDA during the fourth quarter.
Its adjusted gross profit was $41.5 million, marking a year-over-year decline of 15%. However, adjusted gross margin expanded 580 basis points (bps) to 59.8% on efficient cost management and margin expansion efforts.
Total costs and expenses decreased 34% year over year to $71.8 million. This reduction was primarily driven by a 50% year-on-year reduction in selling, general and administrative expenses.
Balance Sheet
As of Dec 31, 2020, Synchronoss had $33.7 million in cash and cash equivalents compared with $46.4 million reported in the previous quarter.
Total deferred revenues were $45.6 million, down 48% year over year, at the end of the year.
Guidance
For 2021, Synchronoss estimates revenues of $275-$285 million. Adjusted EBITDA is expected between $30 million and $35 million, representing an 8-26% year-on-year growth.
Zacks Rank & Stocks to Consider
Synchronoss currently carries a Zacks Rank #3 (Hold).
A better-ranked stock in the broader technology sector is Skyworks Solutions (SWKS - Free Report) , sporting a Zacks Rank #1 (Strong Buy), at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The long-term earnings growth rate for Skyworks Solutions is currently pegged at 18.98%.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
See the 5 high-tech stocks now>>