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Can Synchronoss' Latest Personal Cloud Release Push the Stock Higher?

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Synchronoss Technologies’ (SNCR - Free Report) announced the latest version of its carrier-grade Personal Cloud platform on Wednesday. This will enable service providers to deliver enhanced cloud solutions that are expected to boost subscriber engagement.

The new Synchronoss Personal Cloud provides a customized white-label solution for service providers, empowering subscribers to manage, back up and optimize their digital content across various mobile devices, laptops, and computers.

With the introduction of the Memories and AI-Enhanced Genius features, subscribers can easily organize, share and optimize their digital content — all within a user-friendly interface.

Provided as a white-label solution through prominent communications service providers, telecom carriers and mobile operators, Synchronoss Personal Cloud supports more than 10 million mobile and broadband subscribers around the world.

 

SNCR Up 112% YTD: Will the Bull Run Continue?

SNCR’s shares have surged 112.3% in the year-to-date period compared with the broader Zacks Computer & Technology sector’s rise of 23.1%. It has also outperformed the Zacks Internet Software industry and peers Aspen Technology (AZPN - Free Report) , Fortinet (FTNT - Free Report) and PayPal (PYPL - Free Report) .

The stock has surpassed the industry’s rise of 20.9%. It also outpaced competitors AZPN, FTNT and PYPL, which registered returns of 3.9%, 30.9% and 25.9%, respectively, year to date.

Synchronoss' shares are experiencing an uptick on the back of robust growth in cloud subscribers, backed by a solid portfolio and an expanding clientele. In second-quarter 2024, cloud subscribers increased 6.1%, contributing 5.9% to total revenues.

The company’s growing efforts toward strengthening its portfolio on the back of an expanding clientele are expected to benefit SNCR’s top-line growth. Its rich partner base includes Verizon (VZ) and AT&T (T) bodes well.

Synchronoss partnered with Verizon to offer Unlimited Cloud Storage to Verizon customers as part of its new myPlan and myHome Perks initiatives.

The rollout of Synchronoss’ cloud platform for SoftBank's Angel data box service enhanced SNCR’s presence in Japan. 

The deployment of its personal cloud solution to power AT&T’s personal cloud vastly increased user engagement with cloud offerings.

SNCR’s 2024 View Positive

For 2024, Synchronoss projects revenues to be between $170 million and $175 million, suggesting 5.8% year-over-year growth. Recurring revenues are anticipated to contribute 85-90% to total revenues.

SNCR anticipates an adjusted gross margin of 73% to 77% (up from the previous guidance of 70-75%) and an adjusted EBIT margin exceeding 25%.

Adjusted EBITDA is now projected to be between $43 million and $46 million, up from the prior range of $42-$45 million.

The Zacks Consensus Estimate for 2024 earnings is pegged at $1.19 per share, up from 56 cents in the past 60 days. The metric suggests 184.4% year-over-year growth.

SNCR’s Zacks Rank & Valuation

Synchronoss stock is cheap, as the Value Score of A suggests.

Synchronoss currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

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