Synchronoss Technologies Inc (NASDAQ:SNCR), a leading provider of cloud-based software solutions, has solidified its position in the digital content protection market with a three-year contract extension from AT&T, one of its major telecom partners.
CEO Jeff Miller recently spoke with Proactive to share details of this milestone, highlighting the company's success as a cloud-only provider in 2024 and its ambitious plans for 2025, including leveraging AI and machine learning to enhance user experiences.
Proactive: It's great to have you here. I know you've got some exciting news to share, but first, can you give us a bit of background on the company?
Jeff Miller: Sure. Synchronoss is a software solutions provider specializing in cloud services that protect digital content. We operate on a white-label basis, so you might know our products as Verizon Cloud, AT&T Cloud, or SoftBank's Anshin Data Box in Japan. We protect photos, videos, files, contact information, music -- essentially, all types of digital content -- and we do so at a large scale.
That's impressive. Let's dive into today's announcement: a three-year contract extension with a major U.S. telecom provider.
Yes, we're thrilled to announce that AT&T, which has been a client on our platform since 2020, has signed a three-year contract extension starting in early 2025. This was disclosed via an 8-K filing. We've seen growing adoption of our service within AT&T's subscriber base, which has driven both our business and theirs forward throughout our partnership.
That's exciting news, especially as it's recurring business, which is so valuable for companies like yours.
Exactly. AT&T offers its subscribers the AT&T Personal Cloud, enabling them to back up and protect their digital content on a monthly subscription basis. We share in that recurring revenue stream, and over 90% of our total revenues come from recurring sources. Our relationship with AT&T is highly valuable, and we see significant opportunities for growth ahead.
As we look ahead to 2025, following what seems to have been a successful 2024, what are your priorities for the coming year?
This year has been one of "new beginnings" for us, as it's the first full year we've operated solely as a cloud company. We've achieved consistent revenue growth, subscriber growth, and margin expansion across our portfolio. Building on that momentum, we're looking forward to 2025. We aim to continue driving subscriber adoption and enhancing our platform with new AI and machine learning capabilities to further improve the user experience.
Quotes have been lightly edited for style and clarity