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."