Synacor, Inc. (Nasdaq: SYNC), the trusted multiscreen technology and
monetization partner for video, internet and communications providers,
device manufacturers, governments and enterprises, today announced its
financial results for the second quarter ended June 30, 2018.
“Strong growth from both software and advertising fueled solid
second-quarter revenue,” said Synacor CEO Himesh Bhise. “We increased
revenue 15% year over year to $35.9 million, narrowed our net loss, and
delivered adjusted EBITDA of $1.2 million that was up from $0.2 million
a year ago.
“We continue to make progress on our initiatives to drive value, and we
expanded our cost-reduction program this quarter,” Bhise continued. “We
delivered 13% year-over-year growth in recurring and fee-based revenue,
driven by our operating focus on our high-margin, recurring-revenue
Collaboration and Identity platforms.”
Recent Highlights
Q2 2018 Financial Results
Revenue: For the second quarter of 2018, revenue was $35.9
million, an increase of 15% versus the second quarter of 2017.
Net Income: For the second quarter of 2018, net
loss narrowed to $2.6 million, or $(0.07) per share, compared with a net
loss of $3.3 million, or $(0.09) per share, in the second quarter of
2017.
Adjusted EBITDA: For the second quarter of 2018, adjusted
EBITDA, which excludes stock-based compensation, other income and
expense and restructuring costs, increased to $1.2 million, compared
with $0.2 million for the second quarter of 2017, which also excluded a
capitalized software impairment.
Cash: The Company ended the second quarter of 2018 with
$15.0 million in cash and cash equivalents, compared with $16.4 million
at the end of the first quarter of 2018.
Guidance
Based on information available as of August 1, 2018, the Company is
providing financial guidance for the third quarter of 2018 and affirming
full-year 2018 guidance for revenue, net loss and adjusted EBITDA as
follows:
Conference Call Details
Synacor will host a conference call today at 5:00 p.m. ET to discuss the
second-quarter 2018 financial results and 2018 financial guidance with
the investment community. The live webcast of Synacor’s earnings
conference call can be accessed at http://investor.synacor.com/events.cfm.
To participate, please login approximately ten minutes prior to the
webcast. For those without access to the internet, the call may be
accessed toll-free via phone at (833) 235-2655, with conference ID
5759236, or callers outside the U.S. may dial (647) 689-4151. Following
completion of the call, a recorded webcast replay will be available on
Synacor’s website. To listen to the telephone replay through August 15,
2018, call toll-free (800) 585-8367, or callers outside the U.S. may
dial (416) 621-4642. The conference ID is 5759236.
About Synacor
Synacor (Nasdaq: SYNC) is the trusted technology development,
multiplatform services and revenue partner for video, internet and
communications providers, device manufacturers, governments and
enterprises. Synacor’s mission is to enable its customers to better
engage with their consumers. Its customers use Synacor’s technology
platforms and services to scale their businesses and extend their
subscriber relationships. Synacor delivers managed portals, advertising
solutions, email and collaboration platforms, and cloud-based identity
management. www.synacor.com
Non-GAAP Financial Measures
The Company uses certain non-GAAP financial measures in this release.
Generally, a non-GAAP financial measure is a numerical measure of a
company’s performance, financial position or cash flows that either
excludes or includes amounts that are not normally excluded or included
in the most directly comparable measure calculated and presented in
accordance with generally accepted accounting principles (GAAP).
We report adjusted EBITDA because it is a key measure used by our
management and Board of Directors to understand and evaluate our core
operating performance and trends, to prepare and approve our annual
budget and to develop short- and long-term operational plans. In
particular, the exclusion of certain expenses in calculating adjusted
EBITDA can provide a useful measure for period-to-period comparisons of
our core business. Accordingly, we believe that adjusted EBITDA provides
useful information to investors and others in understanding and
evaluating our operating results in the same manner as our management
and Board of Directors.
For a reconciliation of adjusted EBITDA to net loss, the most directly
comparable financial measure calculated and presented in accordance with
GAAP, please refer to the table “Reconciliation of GAAP to Non-GAAP
Measures” in this press release.
Safe Harbor Statement Under the Private Securities Litigation
Reform Act of 1995
“Safe Harbor” statement under the Private Securities Litigation Reform
Act of 1995: This press release contains forward-looking statements
concerning Synacor’s expected financial performance including, without
limitation, its third-quarter and fiscal year 2018 guidance, the
statements and quotations from management and Synacor’s strategic and
operational plans. The achievement or success of the matters covered by
such forward-looking statements involves risks, uncertainties and
assumptions. If any such risks or uncertainties materialize or if any of
the assumptions prove incorrect, the Company’s results could differ
materially from the results expressed or implied by the forward-looking
statements the Company makes.
The risks and uncertainties referred to above include – but are not
limited to – risks associated with: execution of our plans and
strategies, including execution against our agreement with AT&T the pace
and degree to which the AT&T portal can be monetized; the loss of a
significant customer, including by non-renewal of its contract; our
ability to obtain new customers; our ability to integrate the assets and
personnel from acquisitions; expectations regarding consumer taste and
user adoption of applications and solutions; developments in internet
browser software and search advertising technologies; general economic
conditions; expectations regarding the Company’s ability to timely
expand the breadth of services and products or introduction of new
services and products; consolidation within the cable and
telecommunications industries; changes in the competitive dynamics in
the market for online search and digital advertising; the risk that
security measures could be breached and unauthorized access to
subscriber data could be obtained; potential third party intellectual
property infringement claims or other legal claims against Synacor; and
the price volatility of our common stock.
Further information on these and other factors that could affect the
Company’s financial results is included in filings it makes with the
Securities and Exchange Commission from time to time, including the
section entitled “Risk Factors” in the Company’s most recent Form 10-Q
filed with the SEC. These documents are available on the SEC Filings
section of the Investor Information section of the Company’s website at http://investor.synacor.com/.
All information provided in this release and in the attachments is
available as of August 1, 2018, and Synacor undertakes no duty to update
this information.
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