Date of report (Date of earliest event reported): August 10, 2020
Synchronoss Technologies, Inc.
(Exact Name of Registrant as Specified in its Charter)
Delaware 000-52049 06-1594540
(State or Other Jurisdiction (Commission (IRS Employer
of Incorporation) File Number) Identification No.)
200 Crossing Boulevard, 8th Floor  
Bridgewater, New Jersey 08807
(Address of Principal Executive Offices) (Zip Code)
Registrant’s telephone number, including area code: (866) 620-3940
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
o                 Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o                  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o                 Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o                 Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company o
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Securities registered pursuant to Section 12(b) of the Act:
Title of each class Trading Symbol(s)Name of each exchange on which registered
Common Stock, par value $.0001 par value
 SNCRThe Nasdaq Stock Market, LLC

Item 2.02.                                        Results of Operations and Financial Condition.
On August 10, 2020, Synchronoss Technologies, Inc. (the “Company”) issued a press release (the “Press Release”) relating to its results of operations and financial condition for the quarter ended June 30, 2020. The full text of this press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K.
The information in Item 2.02 of this Current Report on Form 8-K and Exhibit 99.1 attached hereto shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such a filing.
Item 9.01.                                        Financial Statements and Exhibits.

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Date:August 10, 2020Synchronoss Technologies, Inc.
 By:/s/ David Clark
  Name:David Clark
  Title:Chief Financial Officer


Exhibit 99.1

200 Crossing Boulevard, Bridgewater, NJ 08807
Synchronoss Technologies Announces Second Quarter 2020 Results: Revenue $76.5 million, Adjusted EBITDA $11.5 million, Adjusted Free Cash Flow $13 million. Renewal of Verizon contract also announced.

BRIDGEWATER, NJ - August 10, 2020 - Synchronoss Technologies Inc. (NASDAQ: SNCR), a global leader and innovator in cloud, messaging, digital and IoT platforms and products, today announced financial results for its second quarter ended June 30, 2020.

Second quarter highlights:

Revenue was $76.5 million, compared to $77.8 million in the second quarter of 2019. Recurring revenue was 78.4 percent.
GAAP net loss for the quarter was $10.15 million, or 24 cents per share, compared to $25.0 million or 61 cents per share in the prior year’s second quarter.
Non-GAAP net income from continuing operations attributable to Synchronoss was $6.6 million or 16 cent per share, compared to a Non-GAAP net loss of $11.3 million or 28 cents per share in the prior year’s second quarter.
Synchronoss delivered $11.5 million of adjusted EBITDA, compared to $8.7 million in the second quarter of 2019. Adjusted EBITDA margin in the second quarter was 15 percent compared to 11.2 percent in last year’s second quarter.
Positive Adjusted Free Cash Flow of $13 million drove an increase in cash and liquidity to $42.8 million at quarter end up from $31m at the end of Q1.
This morning, in a separate release, the company announced the 5-year renewal of its white-label cloud agreement with its largest customer, Verizon Wireless.

Glenn Lurie, president and chief executive officer, stated, “Synchronoss continued to overcome the many challenges posed by the global pandemic and delivered a solid second quarter. The strength of our customer relationships is highlighted by new wins with some of our largest customers, including the 5-year renewal of our personal cloud contract with Verizon, our largest customer, that we announced this morning in a separate press release. Adjusted EBITDA margins were at the highest level since the fourth quarter of 2018, and free cash flow was $13 million. I am proud of the Synchronoss team as they remained productive and committed to servicing our customers while still working from home, and these results speak to their passion and resilience.”

                               Three Months Ended June 30,
$000s20202019% Change
Revenues$76,535  $77,846  (1.7)%
Net Loss$(10,148) $(25,030) (59.5)%
Adjusted EBITDA$11,548  $8,669  33.2 %

                               Six Months Ended June 30,
$000s20202019% Change
Revenues$153,657  $165,951  (7.4)%
Net Loss$(22,423) $(52,617) (57.4)%
Adjusted EBITDA$13,307  $15,299  (13.0)%

David Clark, chief financial officer, added, “Our cost cutting efforts remain on track to deliver $45 million of in-year savings and $55 million of annualized savings. These efforts and execution were one of the main drivers of improved financial results including 62.6 percent adjusted gross margins, 15 percent EBITDA margin, and positive free cash flow of $13 million.”


The company’s original 2020 Adjusted EBITDA guidance was $25-$35 million. The Verizon renewal reduces non-cash deferred revenue by approximately $10 million in the latter half of 2020. Under accounting standard ASC 606, this remaining $10 million of deferred revenue will now be amortized over the new term of the contract. The implied Adjusted EBITDA guidance range would be $15-$25 million. However, the company is also narrowing guidance to the top half of the range. Accordingly, the company now expects Adjusted EBITDA for the year of $20-$25 million.

New Business Update

New customer agreements and partnerships that the company has completed since the last earnings announcement include:

The 5-year contract extension of our personal cloud agreement with Verizon. This extension further solidifies our long-term relationship with Verizon and shows the value they see in our Cloud solution, which delivers solid incremental revenue and profitability for them, and a better user experience for their subscribers.
This new personal cloud contract with Verizon includes a joint market agreement to more directly target their existing base of subscribers.
We secured additional cloud initiatives in the quarter that will augment Verizon’s service offerings in other areas and expand our access to Verizon customers and help us continue to grow cloud revenue.
In Advanced Messaging, we signed two additional Agreements with CCMI to expand our role in preparing for the launch of RCS-based messaging service to be offered by the joint venture between AT&T, Sprint, T-Mobile and Verizon.
In Core Messaging, we won new business and expanded our relationship with Proximus to provide Messaging services.
In our Digital Platform, we signed a 5-year extension to our relationship with Sage Management, who provides audit services as a complement to our Financial Analytics product. Additionally, we signed a seven-figure Financial Analytics contract with a nationwide service provider.
Finally, we signed Globe Telecom to a Spatial Managed Services contract in the Philippines.

A reconciliation of GAAP to non-GAAP results has been provided in the financial statement tables included in this press release. An explanation of these measures is included below under the heading "Non-GAAP Financial Measures."

Conference Call Details

Synchronoss will host a conference call at 8:00 a.m. (ET) that morning to discuss the financial results.
Please click the following link to join the webinar:

Password: 015747

To join by telephone, please dial one of the following numbers based on your location:
US: +1 253 215 8782
+1 346 248 7799
+1 408 638 0968
+1 669 900 6833
+1 301 715 8592
+1 312 626 6799
+1 646 876 9923
Webinar ID: 996 2641 2696
Password: 015747

International numbers are also available:

Following the conference call, an archived webcast of the conference call will be available on the Investor Relations section of the company’s website at

Non-GAAP Financial Measures

Synchronoss has provided in this release selected financial information that has not been prepared in accordance with GAAP. This information includes historical non-GAAP revenues, gross profit, operating income (loss), net income (loss), effective tax rate, and earnings (loss) per share. Synchronoss uses these non-GAAP financial measures internally in analyzing its financial results and believes they are useful to investors, as a supplement to GAAP measures, in evaluating Synchronoss’ ongoing operational performance. Synchronoss believes that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends, and in comparing its financial results with other companies in Synchronoss’ industry, many of which present similar non-GAAP financial measures to investors. As noted, the non-GAAP financial results discussed above add back fair value stock-based compensation expense, acquisition-related costs which includes integration costs, restructuring and cease-use lease expense, deferred compensation expense related to earn outs and amortization of intangibles associated with acquisitions.

Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Investors are encouraged to review the reconciliation of these non-GAAP measures to their most directly comparable GAAP financial measures as detailed above. As previously mentioned, a reconciliation of GAAP to non-GAAP results has been provided in the financial statement tables included in this press release.

About Synchronoss Technologies, Inc.

Synchronoss transforms the way companies create new revenue, reduce costs and delight their subscribers with cloud, messaging, digital and IoT products, supporting hundreds of millions of subscribers across the globe. Synchronoss’ secure, scalable and groundbreaking new technologies, trusted partnerships, and talented people change the way TMT customers grow their businesses. For more information, visit us at

Forward-looking Statements

This press release includes statements concerning Synchronoss and its future expectations, plans and prospects that constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. For this purpose, any statements contained herein that are not statements of historical fact may be deemed to be forward-looking statements. Without limiting the foregoing, the words “may,” “should,” “expects,” “plans,” “anticipates,” “could,” “intends,” “believes,” “potential” or “continue” or other similar expressions are intended to identify forward-looking statements. Synchronoss has based these forward-looking statements largely on its current expectations and projections about future events and financial trends that it believes may affect its business, financial condition and results of operations. These forward-looking statements speak only as of the date of this press release and are subject to a number of risks, uncertainties and assumptions including, without limitation, risks relating to the Company’s ability to sustain or increase revenue from its larger customers and generate revenue from new customers, the Company’s expectations regarding expenses and revenue, the sufficiency of the Company’s cash resources, the Company’s growth strategies, the anticipated trends and challenges in the business and the market in which the Company operates, the Company’s expectations regarding federal, state and foreign regulatory requirements, the pending lawsuits against the Company described in its most recent SEC filings, and other risks and factors that are described in the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of the Company’s Annual Report on Form 10-K for the year ended December 31, 2019, which is on file with the SEC and available on the SEC’s website at The company does not undertake any obligation to update any forward-looking statements contained in this press release as a result of new information, future events or otherwise.


Leslie Gahagan
Investor Relations Analyst

(Unaudited) (In thousands)

June 30, 2020December 31, 2019
Cash and cash equivalents$42,771  $39,001  
Accounts receivable, net57,332  65,863  
Operating lease right-of-use assets46,913  53,965  
Goodwill222,854  222,969  
Other Assets151,782  150,225  
Total assets$521,652  $532,023  
Liabilities and stockholders’ equity
Accounts Payable and Accrued expenses$96,454  $87,538  
Debt, current10,000  —  
Deferred revenues63,273  87,799  
Operating lease liabilities, non-current53,495  60,976  
Other liabilities17,946  18,768  
Preferred Stock218,482  200,865  
Stockholders’ equity62,002  76,077  
Total liabilities and stockholders’ equity$521,652  $532,023  

(In thousands, except per share data)

Three Months Ended June 30,Six Months Ended June 30,
Net revenues$76,535  $77,846  $153,657  $165,951  
Costs and expenses:
Cost of revenues29,480  33,403  64,951  72,356  
Research and development19,096  19,026  38,884  38,707  
Selling, general and administrative24,640  23,080  50,984  52,326  
Restructuring charges4,493  356  5,943  777  
Depreciation and amortization10,284  20,269  21,640  40,412  
Total costs and expenses87,993  96,134  182,402  204,578  
Loss from continuing operations(11,458) (18,288) (28,745) (38,627) 
Interest income1,509  299  1,568  488  
Interest expense(84) (463) (329) (1,048) 
Gain (loss) on extinguishment of debt—  430  —  817  
Other Income1,367  (24) 3,058  439  
Equity method investment loss—  (376) —  (1,619) 
Loss from continuing operations, before taxes(8,666) (18,422) (24,448) (39,550) 
Benefit for income taxes7,972  1,844  20,404  3,235  
Net loss from continuing operations(694) (16,578) (4,044) (36,315) 
Net loss attributable to redeemable noncontrolling interests(165) (593) (182) (906) 
Preferred stock dividend(9,289) (7,859) (18,197) (15,396) 
Net loss attributable to Synchronoss$(10,148) $(25,030) $(22,423) $(52,617) 
Earnings per share
Weighted-average common shares outstanding:


(In thousands) (Unaudited)

Six Months Ended June 30,
Net loss from continuing operations$(4,044) $(36,315) 
Adjustments to reconcile net loss to net cash used in operating activities:
Non-cash items30,122  51,743  
Changes in operating assets and liabilities:(24,470) 3,136  
Net cash provided by operating activities1,608  18,564  
Investing activities:
Purchases of fixed assets(424) (4,940) 
Purchases of intangible assets and capitalized software(8,685) (5,959) 
Other investing activities2,175  (9,351) 
Net cash used in investing activities(6,934) (20,250) 
Net cash provided by (used in) financing activities9,991  (73,574) 
Effect of exchange rate changes on cash(895) 10  
Net increase (decrease) in cash and cash equivalents3,770  (75,250) 
Cash, restricted cash and cash equivalents, beginning of period39,001  109,860  
Cash, restricted cash and cash equivalents, end of period$42,771  $34,610  

(In thousands, except per share data)

Three Months Ended Jun 30,Six Months Ended Jun 30,
Non-GAAP financial measures and reconciliation:
GAAP Revenue$76,535  $77,846  $153,657  $165,951  
Less: Cost of revenues29,480  33,403  64,951  72,356  
Gross Profit47,055  44,443  88,706  93,595  
Add / (Less):
Stock-based compensation expense641  657  1,394  1,343  
Restructuring, transition, and cease-use lease expense243  —  283  —  
Adjusted Gross Profit$47,939  $45,100  $90,383  $94,938  
Adjusted Gross Margin62.6 %57.9 %58.8 %57.2 %
GAAP Net loss attributable to Synchronoss$(10,148) $(25,030) $(22,423) $(52,617) 
Add / (Less):
Stock-based compensation expense4,987  5,474  10,156  11,028  
Acquisition costs—  (42) —  (230) 
Restructuring, transition, and cease-use lease expense7,003  474  8,699  1,214  
Amortization expense4,062  7,123  8,696  13,252  
Litigation, remediation and refiling costs733  782  1,557  1,502  
Non-GAAP Expenses attributable to Non-Controlling Interest—  (39) —  (76) 
Non-GAAP Net Income (loss) from continuing operations attributable to Synchronoss$6,637  $(11,258) $6,686  $(25,927) 
Diluted Non-GAAP Net Income (loss) from continuing operations per share$0.16  $(0.28) $0.16  $(0.64) 
Weighted shares outstanding - Diluted41,697  40,810  41,482  40,566  

(In thousands, except per share data)

Three Months EndedSix Months Ended
Jun 30, 2019Sep 30, 2019Dec 31, 2019Mar 31, 2020Jun 30, 2020Jun 30, 2020Jun 30, 2019
Net (loss) income attributable to Synchronoss$(25,030) $(69,432) $(14,678) $(12,275) $(10,148) $(22,423) $(52,617) 
Add / (Less):
Stock-based compensation expense5,474  6,000  5,222  5,169  4,987  10,156  11,028  
Acquisition costs(42) —  —  —  —  —  (230) 
Restructuring, transition, and cease-use lease expense474  6,215  17  1,696  7,003  8,699  1,214  
Cumulative adjustment to STI receivable—  26,044  —  —  —  —  —  
Litigation, remediation and refiling costs782   1,320  824  733  1,557  1,502  
Depreciation and amortization20,269  18,508  18,116  11,356  10,284  21,640  40,412  
Interest income(299) (228) (542) (58) (1,509) (1,567) (488) 
Interest Expense463  203  104  245  84  329  1,048  
Gain on Extinguishment of debt(430) (5) —  —  —  —  (817) 
Other (Income) expense, net 24  422  (7,372) (1,692) (1,367) (3,059) (439) 
Equity method investment loss376  —  —  —  —  —  1,619  
Provision (benefit) for income taxes(1,844) 9,849  (4,439) (12,432) (7,972) (20,404) (3,235) 
Net (loss) income attributable to noncontrolling interests593  25  194  17  165  182  906  
Preferred dividend7,859  8,194  8,544  8,908  9,289  18,197  15,396  
Adjusted EBITDA (non-GAAP)$8,669  $5,799  $6,486  $1,758  $11,549  $13,307  $15,299  

Three Months Ended June 30,Six Months Ended June 30,
Net Cash (used in) provided by operating activities$16,624  $24,248  $1,608  $18,564  
Add / (Less):
Capitalized software(4,257) (3,255) (8,685) (5,959) 
Property and equipment(175) (2,313) (424) (4,940) 
Free Cashflow$12,192  $18,680  $(7,501) $7,665  
Add: Litigation, remediation and refiling costs733  782  1,557  1,502  
Adjusted Free Cashflow$12,925  $19,462  $(5,944) $9,167