What happened

Synchronoss Technologies stock is climbing in Tuesday's trading following better-than-expected third-quarter results. The cloud and messaging services company's share price was up roughly 7% as of 12 p.m. EST.

Synchronoss published its Q3 results after the market closed on Nov. 8, posting sales and earnings for the period that came in ahead of the market's targets. The company recorded non-GAAP (adjusted) earnings per share of $0.09 on revenue of $69.75 million, while the average analyst estimate had guided for a per-share loss of $0.10 on sales of $68.57 million. 

Dollar signs and a person using a phone.

Image source: Getty Images.

So what

Syncrhonoss' revenue climbed just 1.6% year over year in the third quarter, but some of the company's key growth categories showed encouraging signs of progress. The software-specialist's cloud subscriber count was up 16%, compared to the prior-year period, and the business ended the period with 83% of its sales base coming from recurring-revenue contracts.

Now what

Synchronoss is guiding for full-year revenue to come in between $275 million and $285 million, suggesting that it expects sales to decline roughly 4% from the $291.7 million in sales that it posted last year. However, management did raise the company's adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) target from between $32 million and $37 million to between $39 million and $43 million. With the update, Synchronoss is now guiding for midpoint EBITDA growth of 47.5% for the year.

Synchronoss has a market capitalization of roughly $240 million and is valued at less than 0.9 times this-year's expected sales. That valuation shows that the market is largely pessimistic about the company's long-term prospects, but it wouldn't be surprising to see the stock climb significantly above current levels if the business shows even modest signs of a turnaround.