Shares of Synchronoss Technologies (NASDAQ:SNCR) were down 19.3% as of 3:00 p.m. EDT Wednesday after the cloud-based enterprise computing and messaging company announced weaker-than-expected fourth-quarter 2018 results.
More specifically, Synchronoss' quarterly revenue declined 22.7% year over year, to $82.1 million -- well below the roughly $87 million most investors were anticipating. That translated to a GAAP net loss of $101.9 million, or $2.56 per share -- though that loss included a one-time $109.2 million pre-tax non-cash asset-impairment charge.
Synchronoss CEO Glenn Lurie remained optimistic, arguing its "results show that Synchronoss continues to meet its financial and operational commitments to shareholders."
Eighty-three percent of the company's top line in Q4 came from recurring revenue sources. The company also generated $29.3 million of quarterly operating cash flow. Lurie noted the company's quarterly adjusted EBITDA of $15.4 million marked the metric's third-consecutive quarter of improvement.
"During 2018, we stabilized and reset our core business, aligned the entire team toward our key priorities and core values, and evolved our platforms and product roadmaps to meet customer needs," added Synchronoss CFO David Clark. "As a result of those actions, we made a great deal of progress to improve operating leverage and profitability, drive free cash flow, and reduce debt."
During the subsequent conference call, management told investors to expect 2019 revenue of $340 million to $355 million, good for growth of 5% to 9% (and roughly in line with consensus estimates), with adjusted EBITDA of $30 million to $40 million.
Nonetheless, given Synchronoss' relative underperformance to end the year -- and with shares already having more than doubled from their 52-week lows set last August -- it's no surprise to see the stock pulling back in response today.