Synchronoss Technology SNCR is benefiting from an expanding partner base and customer base, driven by strong demand for its cloud-based solutions.
Partnerships with the likes of Alphabet GOOGL and Alibaba BABA for its personal cloud and email suite services have been aiding Synchronoss’ prospects. Cloud revenues, which accounted for 67% of the company’s total revenues, grew 12% year over year in the second quarter of 2022.
The Alibaba and Alphabet partnership is helping Synchronoss to expand its global footprint. The e-mail solution on Alphabet’s Google Cloud platform allows customers to deploy and scale the Synchronoss e-mail suite globally. It also creates opportunities to expand Synchronoss’ email and Advanced Messaging solutions.
Synchronoss’ personal cloud and email suite, which supports more than 250 million subscribers and stores more than 142 petabytes of data, will get to expand through Asia and beyond with certifications from Alibaba and Google Cloud. Synchronoss’ personal cloud solution has also been certified by Amazon AMZN.
In second-quarter 2022, Synchronoss completed its migration to a core e-mail solution with Altice, which marked the first fully-hosted deployment on Amazon’s cloud platform Amazon Web Services.
Most recently, Synchronoss extended its partnership with the Italian telecommunications provider, Fastweb. Per the latest three-year agreement, Fastweb, which serves 2.7 million wirelines and 2.8 million mobile customers in Italy, will use Synchronoss Email Suite to support its clientele.
Synchronoss’ long-term growth prospects are driven by 5G and fixed wireless expansion as well as growing demand for its bundled services offerings. It has been expanding into new markets and new verticals.
In July, Synchronoss rolled out two new premium personal cloud solutions with Telkomsel, expanding its footprint in Indonesia.
The company also signed a letter of intent with Street Cred Capital to bundle its cloud solution with the latter’s mobile device financing offerings in North America.
Healthy Sales Pipeline Aids Near Term Prospects
Synchronoss expects year-over-year cloud subscriber growth to continue at a double-digit rate for the rest of 2022.
For 2022, the company now expects revenues between $260 million and $270 million. Synchronoss has also increased the full-year 2022 expectations for adjusted EBITDA to $48-$55 million compared with the previous range of $45-$55 million.
The strong tailwinds and operating momentum in the cloud business will be keeping Synchronoss well positioned for growth and profitability in the long haul.
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