Synchronoss Technologies, Inc. (NASDAQ:SNCR) Q2 2020 Earnings Conference Call - Final Transcript

Aug 10, 2020 • 08:00 am ET


Synchronoss Technologies, Inc. (NASDAQ:SNCR) Q2 2020 Earnings Conference Call - Final Transcript


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Leslie Gahagan

Good morning, everyone. I'm Leslie Gahagan, Investor Relations Analyst for Synchronoss Technologies. Welcome to our Second Quarter 2020 Earnings Call. Joining me here is Synchronoss' President and CEO, Glenn Lurie; David Clark, our Chief Financial Officer and Joe Crivelli, Senior Vice President of Investor Relations.

During today's call we will make statements about expectations for the second half 2020 and beyond. These may be considered forward-looking statements within the meaning of federal securities laws and include statements about financial trends, future results of operations and financial position and market opportunities. Generally, forward-looking statements are identified by words such as expects, believes, anticipates, intends and other indications of future expectations.

Forward-looking statements are based on the business environment as we currently see it and include risks and uncertainties. Please refer to our SEC filings for more information on the risk factors that may cause actual results to differ. Forward-looking statements on this call are based on assumptions as of today, and we undertake no obligation to update these statements as a result of new information or future events.

In addition to US GAAP reporting, we report certain financial measures that do not conform to GAAP. We believe these non-GAAP measures enhance the understanding of our performance. Reconciliation of the GAAP measures to their non-GAAP measures in addition to the description of the non-GAAP measures can be found in today's earnings press release.

Finally during the Q&A session, please submit questions in the chat function located at the bottom of the screen. Thank you again for joining us today, and I'll now turn the call over Glenn Lurie.

Glenn Lurie

Thanks, Leslie and thank you everybody for joining us this morning, it's a big day for Synchronoss and a busy morning. Earlier this morning, we announced the renewal of a Verizon contract for an additional five years, as well as earnings for the second quarter.

I'll cover earnings first. As you can see, we continue to build on our momentum from the start of the year despite the most challenging economic environment of the last two decades. As COVID-19 continues to disrupt the economy, we delivered revenue of $76.5 million and adjusted EBITDA of $11.5 million, as well as $13 million in adjusted free cash flow, which all exceeded internal and external expectations. The robust EBITDA result brings us back to a double-digit EBITDA margin and reflects with prudent cost cutting we executed before and after the pandemic struck.

Furthermore liquidity continues to build and topped $42.8 million at the end of the quarter, up from $31 million at the end of the first quarter. Based on these financial results it is clear that Synchronoss was able to perform and execute well during the quarter. We are responsibly navigating through the pandemic to maintain overall company health for the short and long-term. The last two quarters are a testament to the diligence of the entire Synchronoss team, which had to adapt, evolve and adjust to a work from home environment.

Most of us have been