Synchronoss technologies Shares of SNCR have risen 16.3% over the past month, surpassing the Zacks Computer & Technology sector’s valuation of 6%. It has also outpaced the Zacks Internet – Software industry’s 11% gain and peers Fortinet‘s FTNT growth of 6.7% over the same time frame.
The recent positive movement in Synchronoss stock prices has been driven by strong revenue growth expectations through 2024. The company has indicated an upward revision to its expectations due to consistent growth in its cloud segment, driven by increased subscriber activity and improved platform functionality.
SNCR forecasts 2024 revenue of $172-$175 million, an upward revision from the previously mentioned $170-$175 million, indicating year-over-year growth of 6-8%. The company expects recurring revenue to contribute 90-92% of total revenue, up from the previously mentioned 85-90%, reflecting its focus on building a stable and predictable revenue stream through its cloud-based solutions.
Synchronoss Technologies, Inc. price consensus chart | Synchronoss Technologies, Inc. Quote
Synchronoss’ growth is driven by its cloud business, which benefits from increasing subscriber activity, enhanced platform features and strong demand for secure and scalable storage solutions.
In Q3 2024, the cloud business contributed significantly to total revenue growth of 8% year-over-year, driven by a 5.1% increase in subscriber activity.
In September, the company launched the latest version of its Personal Cloud platform, which includes features such as Memories, AI-enhanced Genius with One-Click Editing, and better backup options.
The introduction of auto-scaling infrastructure has significantly improved operational efficiency for Synchronoss customers. This technology dynamically adjusts platform capacity to meet demand fluctuations, delivering tangible cost benefits.
SNCR focuses on continuously improving and updating its products to stay ahead of the competition. A key part of their strategy is to offer a Personal Cloud platform that prioritizes security and privacy so that customers and their subscribers can trust the service.
Synchronoss has built key partnerships with major airlines such as AT&T T, T-Mobile, Verizon VZ and Sprint. One major collaboration involves a joint venture to advance Rich Communications Services, which extends mobile messaging with interactive multimedia capabilities.
Synchronoss has entered into a partnership with SFR, a major French telecommunications provider, through a three-year contract extension. This strengthens the position on the European market with 27 million subscribers, guaranteeing the income from this partnership.
