What: Shares of Synchronoss Technologies (NASDAQ:SNCR) slumped on Wednesday after the company reported fourth-quarter results. While Synchronoss beat analyst estimates for both revenue and earnings, the stock fell as much as 12% Wednesday morning, likely due to lackluster guidance. At 11:30 a.m., shares had recovered a bit, down just 5%.
So what: Synchronoss reported quarterly revenue of $157.2 million, up 20.7% year over year and about $2 million higher than the average analyst estimate. Non-GAAP revenue from cloud services grew by 43% year over year, reaching $90.9 million and accounting for 58% of total non-GAAP revenue.
Non-GAAP earnings came in at $0.61 per share, up from $0.53 per share during the fourth quarter of 2014 and $0.04 better than analyst expectations. On a GAAP basis, the company reported EPS of $0.12, down from $0.30 during the prior-year period.
Now what: Despite the solid results, guidance fell short of analyst expectations. First-quarter revenue is expected to be between $142 million and $147 million, compared to analyst estimates of $156.3 million, while non-GAAP EPS is expected to be between $0.44 and $0.50, compared to analyst estimates of $0.55.
CEO Stephen Waldis is optimistic about the company's long-term prospects. "Overall, 2015 was a pivotal year for Synchronoss as we executed well against our go-to-market strategy while also expanding our market footprint by introducing several new initiatives. As a result, we believe there is a long runway of opportunity ahead that will lead us through the next phase of growth."
Timothy Green has no position in any stocks mentioned. The Motley Fool owns shares of and recommends Synchronoss Technologies. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.