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| Statement |
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| The recent addition of SoftBank, alongside the expiration of certain payment obligation and the removal of other general costs in Q1, combined with the superior revenue cash generation capabilities of the stand-alone cloud business, add to our expectation for net cash flow to be at least $10 million for 2024 |
| Anshin, meaning peace of mind in Japanese, perfectly reflects the product's secure handling of photos, videos and files, which is resonating well with customers |
| Additionally, over the last two years, we've implemented the necessary cost control measures and streamline our operations to enhance efficiency and improve our financial profile, which led to the positive net cash flow of $2.7 million in fiscal 2023 |
| Since the divestiture, we further refined our remaining cost in cloud operations by reducing our annual costs by an additional $15 million for fiscal 2024 to strengthen our ongoing and go-forward financial performance |
| It is your consistent contributions, your commitment to customers and spirit of innovation, which have positioned Synchronoss in -- where we are today for the best financial performance that we've seen in many years |
| Our Q4 financial results underscore Synchronoss' strong financial foundation as a cloud solutions company, highlighted by a significant 127% year-over-year increase in adjusted EBITDA to $10 million |
| Our conversations at Mobile World Congress from clients from Asia to Europe, of course, and even North America, were encouraging that they're seeing the need for finding new ways to drive incremental revenue |
| Our successful transaction with the Lumine Group has not only unlocked the superior financial profile of cloud, but as we spoke about on our last call, it facilitated a meaningful improvement to our capital structure as we used a portion of the upfront consideration to pay down approximately $10 million of our preferred stock |
| Our Q4 results clearly benefited from the heightened performance of our simplified business model and it hints at the new baseline for sustained growth and increased profitability that we expect for the company in 2024 and beyond |
| As we continue to focus on supplying industry-leading technology and value add to our global customer base, we are confident that our simplified financial model will unlock shareholder value this year and beyond |
| Entering 2024, we anticipate the continuation of positive trends experienced with our customers throughout 2023 |
| Our track record for protecting and growing our subscriber base remains strong and consistent |
| For the full year, free cash flow improved to a negative $2.6 million from $3.8 million in 2022 and adjusted free cash flow improved to a positive $13.2 million from $6.1 million in 2022 |
| We continue to see encouraging subscriber trends at our long-time customers of Verizon and AT&T |
| And with the recent addition of SoftBank subscribers which exceeds over 100 million subscribers across its brands, further extends our long subscriber growth runway that's well ahead of us |
| The increase in adjusted EBITDA margin resulted from the favorable revenue mix to higher-margin cloud, especially in the latter half of the year |
| Net loss from continuing operations improved to $11.8 million or $1.46 per share from $16.2 million or $1.92 per share in the prior year period |
| In fact, we recently returned from Mobile World Congress in Barcelona, where the attendance and the buzz of activity was remarkable and quite encouraging |
| The launch of SoftBank's Anshin Data Box has garnered strong early traction among subscribers, a testament to the offering's alignment with the local needs of the Japanese market and the relevance that our secure AI-enhanced solution for backup and restoring digital content on mobile devices exists |
| We have several other payment expirations and financial catalysts on the horizon in 2024 that will further improve our balance sheet |
| We entered 2024 with a strong pipeline of sales and business opportunities on a global basis |
| An upturn in gross profit and margins was observed in the latter half of 2023, driven by a growing share of cloud revenue indicating an improving trend in gross margin and profit performance following the strategic shift away from Messaging and NetworkX |
| Successful partnerships with our Tier 1 customers providing important proof points of the value of the Synchronoss Cloud provides to service providers |
| Fourth quarter income from operations was $200,000, a significant improvement from a loss of $5.8 million in the prior year period |
| With its 100 million-plus subscriber base across its brands, including SoftBank Mobile, Y!mobile and LINE, SoftBank is expected to provide significant additional revenue for Synchronoss in the coming years |
| 2023 was a transformative year at Synchronoss, one defined by consistent execution and the successful completion of our strategic shift to becoming a premier global personal cloud solutions provider |
| Additionally, we delivered Q4 revenue of $41.4 million, leading to full year revenue of $164.2 million, which also exceeded our previously communicated guidance |
| So entering 2024, we are positioned for sustained growth as a dedicated cloud company |
| This early success is further supported by SoftBank's commitment to our cloud partnership as shown by their effective sales and marketing strategies, leveraging their extensive network of 3,000 stores across Japan |
| And we are pleased at the launch of SoftBank right out of the gates |
| Statement |
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| Looking at the full year, total revenue decreased 5.5% to $164.2 million from $173.8 million in the prior year |
| In Q4 2023, free cash flow was negative $5.9 million and adjusted free cash flow was a negative $100,000 |
| The revenue performance was a result of the expected impact from divestiture of the Messaging and NetworkX businesses during the fourth quarter as well as the expected moderation in subscriber growth |
| For the full year, gross profit decreased 7.6% to $105.8 million, 64.4% of total revenue from $114.5 million or 65.9% of total revenue in 2022 |
| The increase in net loss was primarily due to the lower revenue, changes in noncash foreign exchange and the aforementioned impairment and the loss from the sale of Messaging and NetworkX |
| Net loss in Q4 was $35 million or $3.56 per share compared to a net loss of $15.9 million or $1.66 per share in Q4 2022 |
| The increase in operating loss was primarily the result of the changes in revenue, increased R&D spend from higher employee costs, a lease impairment charge and nonrecurring professional expenses associated with the divestiture in the fourth quarter |
| For the full year, loss from operations was $10.6 million compared to income from operations of a positive $300,000 in 2022 |
| Net loss from continuing operations was $4.52 per share compared to $1.71 per share in the prior year |
| All listeners are encouraged to review the company's SEC filings, including its most recent 10-K and 10-Q for a description of these risks |
| That was a little confusing when I looked at your numbers and my total and your total |
| This performance contributed to a full year adjusted EBITDA of $31.4 million, surpassing the upper end of our guidance |
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