Synchronoss Technologies, Inc.

Greetings and welcome to the Synchronous Technologies third quarter 2024 earnings call. At this time, all participants are in the listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce Ryan Gardella of Investor Relations.

Thanks, Phil. Good afternoon and welcome to the Synchronous Technologies Third Quarter 2024 Earnings Conference Call. Joining us today are Synchronous Technologies President and CEO Jeff Miller and CFO Lou Ferrara. By now, everyone should have access to the company's third quarter 2024 earnings press release issued this afternoon, which is available on the investor relations section of our website. Today's call will begin with remarks from Jeff and Luke, after which we will host a question and answer session. Before we conclude, I'll provide the necessary cautions regarding the forward-looking statements made by management during this call. I would like to remind everyone that this call will be recorded and made available for replay via a link in the investor relations section of the company's website. With that, I'll turn the call over to Jeff Miller.

Thank you, Ryan. Welcome, everyone, and thank you for joining today's call. The third quarter continued our steady advance of operational and financial progress, and I'm pleased to report some of the strongest year-over-year comparisons since our transformation to a global SaaS cloud solutions provider. For the quarter, we recorded revenue of $43 million, an 8% increase over the prior year period, and strong adjusted EBITDA results of $12.7 million which represented a 37% increase to last year's comparable result of $9.2 million. We also reported another quarter of positive net cash flow generation and solid subscriber growth of 5.1% year over year. As a result of the continuing positive progress we've achieved with our financial results, we are pleased to be in a position to increase our full year guidance for revenue, adjusted gross margin, recurring revenue, and adjusted EBITDA. Our transformation to a global cloud solutions provider has succeeded, and our strong growth and profitability results speak to that success in the execution of our strategy. In addition to the positive financial results, we were also thrilled to have announced today a key client renewal. In early October, SFR, signed a three-year contract extension to continue offering our personal cloud storage platform to their subscriber base. SFR is part of Altice, France, and it operates high-speed, fixed, and mobile networks across France and serves more than 27 million individuals, businesses, and communities. Our extension with SFR builds on our eight-year partnership with them, as SFR recognizes the value and enhanced user experiences that our platform offers. This extension represents a meaningful expansion of our relationship and will allow us to integrate more deeply into their marketing efforts and ecosystems. However, we are not resting there. We have an extensive pipeline of opportunities with new customers, as well as high-level confidence in upcoming renewals for existing customers, which are both important as a part of our plan to achieve double-digit top-line growth in future years. These potential new customers are interested in pursuing the same successes that we've attained with our current top-tier clients in providing additional sources of revenue to their bottom line, while improving the retention of their existing subscribers with our personal cloud platform. To ensure that we drive substantial differentiation from our competitors, we are dedicated to updating, improving, and refining our product to maintain the competitive edge that we have in the marketplace. Perhaps the most important way we do this is by offering a security and privacy-focused product that our customers and their subscribers can rely on. This is the bedrock of our personal cloud platform. Customer data is protected at every level with strong encryption and safeguards, making sure that subscribers are the only people who can access their content. We never use customer data to train AI models, and we never resell any customer or subscriber information. We have been and remain an innovator in data security, such as being the first cloud storage provider to give end users the now ubiquitous private folder capability, which allows users to secure confidential content behind a pin code or biometric security. The comprehensive nature of our backup capabilities is also second to none in the industry. As a platform agnostic service, Synchronous Personal Cloud Solution is in a unique position of being able to serve as a single point of all-encompassing backup for families and households across a full range of possible devices and operating systems. As part of our innovation and development, we've also implemented smart AI adoption policy. And as a part of our AI strategy, we utilize pre-trained open source AI models and then we tune them to fit our product and security needs to provide end users with innovative features that drive engagement with their content. In September, we announced the latest version of our personal cloud, which introduced several enhanced features and capabilities. On the user side, we added Memories, which is an AI curation of content in a movie format that can be shared with friends. AI enhanced genius with one-click editing, which allows users to edit, optimize, or transform photos with an array of filters. We added significant enhancements as well to improve backup and notification management, a feature that many users may not see but is nonetheless crucial to their experience. Finally, earlier this year, we discussed driving operational and financial efficiencies in our platforms. particularly in the form of auto scaling, which dynamically adjusts the capacity of our personal cloud platform to account for fluctuations in demand. We have subsequently launched auto scaling across multiple customers who are now seeing material benefits. The compute expenses for one of our major customers in particular has dropped by almost 50% since the implementation of auto scaling. Taken together, Our technology and innovation drive significant value for our customers and delivers an engaging experience for direct users. We're excited about how this differentiated is being received by our current and potential new customers, as well as the future cost savings to us and our partners that can be generated. We are focused on driving consistent progress, and the third quarter was no exception. We posted excellent financial results, highlighted by the 8% growth in revenue and 37% growth in adjusted EBITDA. And after the quarter ended, we announced the three-year extension with SFR. We also released this latest version of our personal cloud, which builds upon the already robust platform and gives users upgrades that they've asked for and enhancements to usability. We're listening to our subscribers and our carrier partners to add functionality users want while enhancing the security and operational efficiency of our personal cloud platform. Now I'd like to turn the call over to Lou for a more detailed review of our financial performance.