Synacor Reports First Quarter 2020 Financial Results; Strength In Software Offset By COVID-19 Impact On Publisher Advertising

May 06, 2020

BUFFALO, N.Y.--(BUSINESS WIRE)-- Synacor, Inc. (Nasdaq: SYNC), a cloud-based software and services company serving global video, internet and communications providers, device manufacturers, governments and enterprises, today announced its financial results for the first quarter ended March 31, 2020.

First Quarter Highlights

  • First quarter revenue of $20.6 million
  • First quarter GAAP net loss of $4.5 million and Adjusted EBITDA of $0.3 million
  • 260 new and expansion customers for Zimbra email and collaboration platform. Ramping up the previously announced significant new streaming services Cloud ID customer
  • Software segment adjusted EBITDAmargins grew to 31.9% from 25% and unallocated corporate G&A declined 20% compared to the year ago quarter
  • Merger planning with Qumu continues; S-4 registration filing has been slightly delayed due to COVID-19

“Our transition to a higher-margin, SaaS-focused software company continued,” said Himesh Bhise, Synacor’s Chief Executive Officer. “It is encouraging that our Software & Services segment grew modestly in the face of economic turmoil, with revenue excluding discontinued products up 2.4% and Segment Adjusted EBITDA growing 26% year-over-year, representing a 31.9% margin. Our collaboration and identity platforms are particularly relevant in an environment of distributed work and higher streaming.”

“The COVID-driven impact on Synacor has been isolated to our publisher advertising line of business,” continued Bhise. “We felt a sharp reduction in March revenue, consistent with the industry-wide reduction in media spend, and expect this slowdown to continue through Q2. However, our active publishers grew 50% over last year, validating an increased need for the monetization services we provide and positioning us well when the economy recovers.”

“We have been working hard to protect the health and safety of our people, do our part to ‘flatten the curve’, deliver excellence to our customers, maintain focus in growing our business, and implement cost and cash-control measures. I could not be prouder of the Synacor team for their hard work and dedication during these volatile times. We have a resilient business, strong balance sheet, and the access to capital to emerge on the other side of this pandemic and accelerate our transformation into a SaaS-focused software company,” Bhise concluded.

Recent Highlights

  • 70 new customers and 190 contract expansions for Zimbra email and collaboration platform delivered through worldwide channel partners.
  • Began ramping up the previously announced large subscription services customer of Cloud ID to support digital streaming growth.
  • Signed two service providers and two content networks to Cloud ID
  • Active publisher customers for advertising were 133 in Q1, growing 50% year-over-year, despite a decline in industry-wide media spend due to COVID-19.

Financial Results:

Revenue

Revenue was $20.6 million, compared to $31.8 million or $22.5 million when excluding the ATT.net portal business in the first quarter of 2019. The decline was driven by the COVID-19 impact on the Publisher advertising business consistent with the industry-wide decline in media spend.

Revenue in our Software & Services segment totaled $11.1 million, compared with $11.2 million or $10.8 million net of discontinued product in the prior year. Revenue in our Portal & Advertising segment totaled $9.5 million, compared with $20.7 million or $11.4 million net of the ATT.net portal business in the prior year due to lower publisher based advertising revenue related to the COVID-19 pandemic.

Net Loss

Net loss was $4.5 million, or $0.11 per share, compared with a net loss of $2.2 million, or $0.06 per share in the prior year. The current year quarter includes $1.4 million of M&A expenses related to our pending merger with Qumu.

Adjusted EBITDA

Adjusted EBITDA was $0.3 million, or 1.5% of revenue, compared with $1.7 million (5.4% of revenue) in the first quarter of 2019. Adjusted EBITDA excludes stock-based compensation, other income and expense, asset impairments, restructuring costs, and certain legal and professional fees. The decline was driven by the COVID-19 impact on publisher based advertising revenue and margins.

Cash

The Company ended the quarter with $8.9 million in cash and cash equivalents, compared with $11.0 million at the end of 2019. Similar to prior years, the first quarter cash decline was driven by the normal seasonality of some annual disbursements. In addition, we also paid out approximately $0.5 million in non-recurring expenses related to the pending merger with Qumu. The company continues to have no borrowings on its credit facility and had approximately $6.7 million of availability as of quarter-end. The company has taken actions to reduce costs and preserve cash in response to the pandemic, and believes that it has sufficient liquidity for operations going forward.

Guidance

Due to the uncertainty surrounding the extent, duration, and pace of recovery related to the COVID-19 pandemic, Synacor is withdrawing its previously provided guidance for 2020 and temporarily suspending its practice of providing quarterly guidance updates until the current situation abates and our visibility improves.

Conference Call Details

Synacor will host a conference call today at 5 p.m. ET to discuss its first quarter 2020 financial results. The live webcast of Synacor’s earnings conference call can be accessed at https://www.synacor.com/investor-relations/events-and-presentations. To participate, please dial 1-833-235-2655 (toll free) or 1-647-689-4151 (international) and reference conference ID 5194062.

Following the conclusion of the live call, a replay of the webcast will be available on the Investor Relations section of the Company's website for at least 90 days. A telephonic replay of the conference call will also be available from 8 p.m. ET on May 6, 2020 until 11:59 p.m. ET on May 13, 2020 by dialing 1-800-585-8367 or 1-416-621-4642 and using the pin number 5194062.

About Synacor

Synacor (Nasdaq: SYNC) is a cloud-based software and services company serving global video, internet and communications providers, device manufacturers, governments and enterprises. Synacor’s mission is to enable its customers to better engage with their consumers. Its customers use Synacor’s technology platforms and services to scale their businesses and extend their subscriber relationships. Synacor delivers managed portals, advertising solutions, email and collaboration platforms, and cloud-based identity management. www.synacor.com

Non-GAAP Financial Measures

The Company uses certain non-GAAP financial measures in this release. Generally, a non-GAAP financial measure is a numerical measure of a company’s performance, financial position or cash flows that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with generally accepted accounting principles (GAAP).

We report adjusted EBITDA because it is a key measure used by our management and Board of Directors to understand and evaluate our core operating performance and trends, to prepare and approve our annual budget and to develop short- and long-term operational plans. In particular, the exclusion of certain expenses in calculating adjusted EBITDA can provide a useful measure for period-to-period comparisons of our core business. Accordingly, we believe that adjusted EBITDA provides useful information to investors and others in understanding and evaluating our operating results in the same manner as our management and Board of Directors.

For a reconciliation of adjusted EBITDA to net loss, the most directly comparable financial measure calculated and presented in accordance with GAAP, please refer to the table “Reconciliation of GAAP to Non-GAAP Measures” in this press release.

We report adjusted net loss and adjusted diluted earnings per share because we believe these measures provide investors with additional information to assess our financial performance. These measures should be viewed as supplemental data, rather than substitutes or alternatives to the comparable GAAP measures. For a reconciliation of our GAAP Condensed Consolidated Statements of Operations to our adjusted non-GAAP measures, please refer to the table “Reconciliation of Adjusted Financial Measures” in this press release.

Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995

“Safe Harbor” statement under the Private Securities Litigation Reform Act of 1995: This press release contains forward-looking statements concerning Synacor’s expected financial performance including, without limitation, its first-quarter and full-year 2020 guidance, anticipated benefits from the merger with Qumu, the statements and quotations from management and Synacor’s strategic and operational plans. The achievement or success of the matters covered by such forward-looking statements involves risks, uncertainties and assumptions. If any such risks or uncertainties materialize or if any of the assumptions prove incorrect, the Company’s results could differ materially from the results expressed or implied by the forward-looking statements the Company makes.

The risks and uncertainties referred to above include – but are not limited to – risks associated with: Synacor and Qumu’s ability or inability to obtain shareholder approval as required for the merger or to satisfy other conditions the merger; the effect of the announcement of the merger on Synacor and Qumu’s ability to retain and hire key personnel and maintain relationships with customers, suppliers and others with whom Synacor or Qumu does business; disruption of Synacor management’s attention due to the merger; the combined company’s ability to achieve cost reductions and cost synergies from the merger; execution of our plans and strategies, including the loss of a significant customer; our ability to obtain new customers; our ability to integrate the assets and personnel from acquisitions; expectations regarding consumer taste and user adoption of applications and solutions; developments in internet browser software and search advertising technologies; general economic conditions; expectations regarding the Company’s ability to timely expand the breadth of services and products or introduction of new services and products; consolidation within the cable and telecommunications industries; changes in the competitive dynamics in the market for online search and digital advertising; the risk that security measures could be breached and unauthorized access to subscriber data could be obtained; potential third party intellectual property infringement claims or other legal claims against Synacor; and the price volatility of our common stock.

No Offer or Solicitation

This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval with respect to the proposed merger or otherwise. No offer of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended.

Additional Information and Where to Find It

In connection with the proposed merger between Synacor and Qumu, Synacor intends to file a registration statement on Form S-4 containing a joint proxy statement/prospectus of Synacor and Qumu and other documents concerning the proposed merger with the SEC. The definitive proxy statement will be mailed to the stockholders of Synacor and Qumu in advance of the meeting. BEFORE MAKING ANY VOTING DECISION, SYNACOR’S AND QUMU’S RESPECTIVE STOCKHOLDERS ARE URGED TO READ THE JOINT PROXY STATEMENT/PROSPECTUS IN ITS ENTIRETY WHEN IT BECOMES AVAILABLE AND ANY OTHER DOCUMENTS FILED BY EACH OF SYNACOR AND QUMU WITH THE SEC IN CONNECTION WITH THE PROPOSED MERGER OR INCORPORATED BY REFERENCE THEREIN BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTION AND THE PARTIES TO THE PROPOSED TRANSACTION. Investors and security holders will be able to obtain a free copy of the joint proxy statement/prospectus and other documents containing important information about Synacor and Qumu, once such documents are filed with the SEC, through the website maintained by the SEC at www.sec.gov. Synacor makes available free of charge at www.synacor.com, copies of materials it files with, or furnishes to, the SEC. The contents of the website referenced above are not deemed to be incorporated by reference into the registration statement or the joint proxy statement/prospectus.

Participants in the Solicitation

This document does not constitute a solicitation of proxy, an offer to purchase or a solicitation of an offer to sell any securities. Synacor, Qumu and their respective directors, executive officers and certain employees may be deemed to be participants in the solicitation of proxies from the stockholders of Synacor and Qumu in connection with the proposed merger. Information regarding the special interests of these directors and executive officers in the proposed merger will be included in the joint proxy statement/prospectus referred to above. Security holders may also obtain information regarding the names, affiliations and interests of Synacor’s directors and executive officers in Synacor’s Annual Report on Form 10-K for the fiscal year ended December 31, 2019, which was filed with the SEC on March 6, 2020, its Current Report on Form 8-K dated February 11, 2020, which was filed with the SEC on February 11, 2020, its Current Report on Form 8-K dated March 3, 2020, which was filed with the SEC on March 3, 2020, and its definitive proxy statement for the 2020 annual meeting of stockholders, which was filed with the SEC on April 29, 2020. Security holders may obtain information regarding the names, affiliations and interests of Qumu’s directors and executive officers in Qumu’s Annual Report on Form 10-K for the fiscal year ended December 31, 2019, which was filed with the SEC on March 6, 2020, and its definitive proxy statement for the 2019 annual meeting of shareholders, which was filed with the SEC on April 9, 2019. To the extent the holdings of Synacor securities by Synacor’s directors and executive officers or the holdings of Qumu securities by Qumu’s directors and executive officers have changed since the amounts set forth in Synacor’s proxy statement for its 2020 annual meeting of stockholders or Qumu’s proxy statement for its 2019 annual meeting of stockholders, such changes have been or will be reflected on Statements of Change in Ownership on Form 4 filed with the SEC. Additional information regarding the interests of such individuals in the proposed merger will be included in the joint proxy statement/prospectus relating to the proposed merger when it is filed with the SEC. These documents (when available) may be obtained free of charge from the SEC’s website at www.sec.gov, Synacor’s website at www.synacor.com and Qumu’s website at www.qumu.com. The contents of the websites referenced above are not deemed to be incorporated by reference into the registration statement or the joint proxy statement/prospectus.

 

Synacor, Inc.

Condensed Consolidated Balance Sheets

(In thousands)

(Unaudited)

 

 

 

March 31,
2020

 

December 31,
2019

 

 

 

 

 

Assets

Current assets:

 

 

 

 

Cash and cash equivalents

 

$

 

8,922

 

 

 

$

 

10,966

 

 

Accounts receivable, net

 

 

14,820

 

 

 

 

20,532

 

 

Prepaid expenses and other current assets

 

 

4,181

 

 

 

 

2,989

 

 

Total current assets

 

 

27,923

 

 

 

 

34,487

 

 

Property and equipment, net

 

 

14,234

 

 

 

 

14,948

 

 

Operating lease right-of-use assets

 

 

4,051

 

 

 

 

4,765

 

 

Goodwill

 

 

15,934

 

 

 

 

15,948

 

 

Intangible assets

 

 

7,875

 

 

 

 

8,411

 

 

Other assets

 

 

1,136

 

 

 

 

1,319

 

 

Total Assets

 

$

 

71,153

 

 

 

$

 

79,878

 

 

 

 

 

 

 

Liabilities and Stockholders' Equity

 

 

 

 

Current liabilities:

 

 

 

 

Accounts payable

 

$

 

12,588

 

 

 

$

 

12,583

 

 

Accrued expenses and other current liabilities

 

 

3,313

 

 

 

 

5,878

 

 

Current portion of deferred revenue

 

 

5,952

 

 

 

 

6,509

 

 

Current portion of long-term debt and finance leases

 

 

1,819

 

 

 

 

2,529

 

 

Current portion of operating lease liabilities

 

 

1,826

 

 

 

 

2,165

 

 

Total current liabilities

 

 

25,498

 

 

 

 

29,664

 

 

Long-term portion debt and finance leases

 

 

986

 

 

 

 

729

 

 

Deferred revenue

 

 

2,295

 

 

 

 

2,846

 

 

Long-term portion of operating lease liabilities

 

 

2,411

 

 

 

 

2,366

 

 

Deferred income taxes

 

 

295

 

 

 

 

275

 

 

Other long-term liabilities

 

 

341

 

 

 

 

334

 

 

Total Liabilities

 

 

31,826

 

 

 

 

36,214

 

 

Stockholders' Equity:

 

 

 

 

Common stock

 

 

403

 

 

 

 

401

 

 

Treasury stock

 

 

(1,971

)

 

 

 

(1,931

)

 

Additional paid-in capital

 

 

146,844

 

 

 

 

146,460

 

 

Accumulated deficit

 

 

(105,272

)

 

 

 

(100,747

)

 

Accumulated other comprehensive loss

 

 

(677

)

 

 

 

(519

)

 

Total stockholders’ equity

 

 

39,327

 

 

 

 

43,664

 

 

Total Liabilities and Stockholders' Equity

 

$

 

71,153

 

 

 

$

 

79,878

 

 

 

Synacor, Inc.

Condensed Consolidated Statement of Operations

(In thousands except for share and per share data)

(Unaudited)

 

 

 

Three Months Ended March 31,

 

 

2020

 

2019

 

 

 

 

 

Revenue

 

$

 

20,583

 

 

 

$

 

31,824

 

 

Costs and operating expenses:

 

 

 

 

Cost of revenue (1)

 

 

10,729

 

 

 

 

16,506

 

 

Technology and development (1)(2)

 

 

3,108

 

 

 

 

4,546

 

 

Sales and marketing (2)

 

 

4,368

 

 

 

 

5,991

 

 

General and administrative (1)(2)

 

 

4,466

 

 

 

 

4,465

 

 

Depreciation and amortization

 

 

2,214

 

 

 

 

2,435

 

 

Total costs and operating expenses

 

 

24,885

 

 

 

 

33,943

 

 

Loss from operations

 

 

(4,302

)

 

 

 

(2,119

)

 

Other income (expense), net

 

 

167

 

 

 

 

216

 

 

Interest expense

 

 

(59

)

 

 

 

(64

)

 

Loss before income taxes

 

 

(4,194

)

 

 

 

(1,967

)

 

Provision for income taxes

 

 

331

 

 

 

 

277

 

 

Net loss

 

$

 

(4,525

)

 

 

$

 

(2,244

)

 

Net loss per share:

 

 

 

 

Basic

 

$

 

(0.11

)

 

 

$

 

(0.06

)

 

Diluted

 

$

 

(0.11

)

 

 

$

 

(0.06

)

 

Weighted average shares used to compute net loss per share:

Basic

 

 

39,677,738

 

 

 

 

39,038,642

 

 

Diluted

 

 

39,677,738

 

 

 

 

39,038,642

 

 

Notes:

(1) Exclusive of depreciation and amortization shown separately.

(2) Includes stock-based compensation as follows:

 

 

Three Months Ended March 31,

 

 

2020

 

2019

 

 

 

 

 

Technology and development

 

$

57

 

 

$

103

 

Sales and marketing

 

101

 

 

115

 

General and administrative

 

219

 

 

113

 

 

 

$

377

 

 

$

331

 

 

Synacor, Inc.

Reconciliation of GAAP to Non-GAAP Measures

(In thousands)

(Unaudited)

 

The following table presents a reconciliation of net loss to adjusted EBITDA for each of the periods indicated:

 

 

 

Three Months Ended March 31,

 

 

2020

 

2019

 

 

 

 

 

Reconciliation of Adjusted EBITDA:

 

 

 

 

Net loss

 

$

 

(4,525

)

 

 

$

 

(2,244

)

 

Provision for income taxes

 

 

331

 

 

 

 

277

 

 

Interest expense

 

 

59

 

 

 

 

64

 

 

Other expense, net

 

 

(167

)

 

 

 

(216

)

 

Depreciation and amortization

 

 

2,732

 

 

 

 

2,487

 

 

Asset impairment

 

 

 

 

 

 

226

 

 

Stock-based compensation expense

 

 

377

 

 

 

 

331

 

 

Restructuring costs

 

 

60

 

 

 

 

 

 

Certain professional services and legal fees*

 

 

1,446

 

 

 

 

779

 

 

Adjusted EBITDA

 

$

 

313

 

 

 

$

 

1,704

 

 

*

Certain legal & professional services fees" includes legal fees and other related expenses outside the ordinary course of business, as well as fees and expenses related to merger and acquisition activities.

 

Synacor, Inc.

Condensed Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)

 

 

 

Three Months Ended March 31,

 

 

2020

 

2019

 

 

 

 

 

Cash Flows from Operating Activities:

 

 

 

 

Net loss

 

$

 

(4,525

)

 

 

$

 

(2,244

)

 

Adjustments to reconcile net loss to net cash and cash equivalents provided by (used in) operating activities:

Depreciation and amortization

 

 

2,740

 

 

 

 

2,487

 

 

Asset impairment

 

 

 

 

 

 

226

 

 

Stock-based compensation expense

 

 

377

 

 

 

 

331

 

 

Provision for deferred income taxes

 

 

20

 

 

 

 

20

 

 

Change in allowance for doubtful accounts

 

 

4

 

 

 

 

38

 

 

Changes in operating assets and liabilities:

 

 

 

 

Accounts receivable, net

 

 

5,708

 

 

 

 

4,522

 

 

Prepaid expenses and other assets

 

 

(1,017

)

 

 

 

(432

)

 

Operating lease right-of-use assets and liabilities, net

 

 

(59

)

 

 

 

29

 

 

Accounts payable, accrued expenses and other liabilities

 

 

(2,408

)

 

 

 

(4,598

)

 

Deferred revenue

 

 

(628

)

 

 

 

(684

)

 

Net cash provided by (used in) operating activities

 

 

212

 

 

 

 

(305

)

 

Cash Flows from Investing Activities:

 

 

 

 

Purchases of property and equipment

 

 

(965

)

 

 

 

(1,325

)

 

Net cash used in investing activities

 

 

(965

)

 

 

 

(1,325

)

 

Cash Flows from Financing Activities:

 

 

 

 

Repayments on long-term debt and finance leases

 

 

(1,107

)

 

 

 

(694

)

 

Proceeds from exercise of common stock options

 

 

 

 

 

 

37

 

 

Purchase of treasury stock and shares received to satisfy minimum tax withholdings

 

 

(40

)

 

 

 

 

 

Net cash used in financing activities

 

 

(1,147

)

 

 

 

(657

)

 

Effect of exchange rate changes on cash and cash equivalents

 

 

(144

)

 

 

 

(140

)

 

Net decrease in Cash and Cash equivalents

 

 

(2,044

)

 

 

 

(2,427

)

 

Cash and cash equivalents, beginning of period

 

 

10,966

 

 

 

 

15,921

 

 

Cash and cash equivalents, end of period

 

$

 

8,922

 

 

 

$

 

13,494

 

 

Synacor, Inc.
Segment Results
(In thousands except for percentages)
(Unaudited)
The Company has two reportable segments which are determined on the basis of the products and services provided to customers, identified as follows:
 
(i) Software & Services, which includes email / collaboration (Zimbra) and identity management (Cloud ID).
(ii) Portal & Advertising, which includes managed portals and advertising solutions for publishers.
 
The following table presents the key segment financial measures for the periods indicated. Please refer to the Reconciliation of GAAP to Non-GAAP Measures schedule for the reconciliation of Adjusted EBITDA.

 

 

Three Months Ended March 31,

 

 

2020

 

2019

 

% Change

 

 

 

 

 

 

 

Segment Revenue:

Software & Services

 

$

 

11,062

 

 

 

$

 

11,158

 

 

 

(0.9

)

%

Portal & Advertising

 

 

9,521

 

 

 

 

20,666

 

 

 

(53.9

)

%

Total

 

$

 

20,583

 

 

 

$

 

31,824

 

 

 

(35.3

)

%

 

 

 

 

 

 

 

Segment Adjusted EBITDA:

Software & Services

 

$

 

3,528

 

 

 

$

 

2,794

 

 

 

26.3

 

%

Portal & Advertising

 

 

(241

)

 

 

 

2,621

 

 

 

(109.2

)

%

Unallocated Corporate Expense

 

 

(2,974

)

 

 

 

(3,711

)

 

 

19.9

 

%

Total

 

$

 

313

 

 

 

$

 

1,704

 

 

 

(81.6

)

%

 

 

 

 

 

 

 

Segment Adjusted EBITDA margin*

Software & Services

 

 

31.9

 

%

 

 

25.0

 

%

 

690 bps

Portal & Advertising

 

 

(2.5

)

%

 

 

12.7

 

%

 

-1520 bps

Total

 

 

1.5

 

%

 

 

5.4

 

%

 

-380 bps

 

 

 

 

 

 

 

* Adjusted EBITDA as a percent of revenue

The following tables presents a disaggregation of segment revenue for the periods indicated based upon the accounting definition of revenue recognition:

(i) Recurring = revenue recognized over time
(ii) Non-recurring = revenue recognized at a point in time

 

 

Three Months Ended March 31,

 

 

 

2020

 

2019

 

% Change

 

 

 

 

 

 

 

 

 

Software & Services Revenue:

Recurring

 

$

 

8,330

 

 

$

 

8,514

 

 

(2.2

)

%

 

Non-recurring

 

 

2,732

 

 

 

2,284

 

 

19.6

 

%

 

Discontinued Products **

 

 

 

 

 

360

 

 

(100.0

)

%

 

Total

 

$

 

11,062

 

 

$

 

11,158

 

 

(0.9

)

%

 

 

 

 

 

 

 

 

 

Portal & Advertising Revenue:

Recurring

 

$

 

1,224

 

 

$

 

1,506

 

 

(18.7

)

%

 

Non-recurring

 

 

8,297

 

 

 

19,160

 

 

(56.7

)

%

 

Total

 

$

 

9,521

 

 

$

 

20,666

 

 

(53.9

)

%

 

 

 

 

 

 

 

 

 

Total Revenue:

Recurring

 

$

 

9,554

 

 

$

 

10,020

 

 

(4.7

)

%

 

Non-recurring

 

 

11,029

 

 

 

21,444

 

 

(48.6

)

%

 

Discontinued Products **

 

 

 

 

 

360

 

 

(100.0

)

%

 

Total

 

$

 

20,583

 

 

$

 

31,824

 

 

(35.3

)

%

 

** VAM video product line which was discontinued during Q1 2019.

 

Synacor, Inc.

Reconciliation of Adjusted Financial Measures

(In thousands except per share amounts)

(Unaudited)

 

 

 

Three months ended March 31, 2020

 

 

Per GAAP Statements

 

Asset Impairment

 

Restructuring Costs

 

Certain Legal & Professional Fees

 

Adjusted Non-GAAP

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$

 

20,583

 

 

 

 

 

 

 

 

 

$

 

20,583

 

 

Costs and operating expenses:

 

 

 

 

 

 

 

 

 

 

Cost of revenue (1)

 

 

10,729

 

 

 

 

 

 

 

 

 

 

10,729

 

 

Technology and development (1)(2)

 

 

3,108

 

 

 

 

 

 

 

 

 

 

3,108

 

 

Sales and marketing (2)

 

 

4,368

 

 

 

 

 

 

 

 

 

 

4,368

 

 

General and administrative (1)(2)

 

 

4,466

 

 

 

 

 

 

 

 

(60

)

 

 

 

(1,446

)

 

 

 

2,960

 

 

Depreciation and amortization

 

 

2,214

 

 

 

 

 

 

 

 

 

 

2,214

 

 

Total costs and operating expenses

 

 

24,885

 

 

 

 

 

 

 

 

(60

)

 

 

 

(1,446

)

 

 

 

23,379

 

 

Loss from operations

 

 

(4,302

)

 

 

 

 

 

 

 

60

 

 

 

 

1,446

 

 

 

 

(2,796

)

 

Other income, net

 

 

167

 

 

 

 

 

 

 

 

 

 

167

 

 

Interest Expense

 

 

(59

)

 

 

 

 

 

 

 

 

 

(59

)

 

Loss before income taxes

 

 

(4,194

)

 

 

 

 

 

 

 

60

 

 

 

 

1,446

 

 

 

 

(2,688

)

 

Provision for income taxes (3)

 

 

331

 

 

 

 

 

 

 

 

 

 

331

 

 

Net loss

 

$

 

(4,525

)

 

 

$

 

 

 

 

$

 

60

 

 

 

$

 

1,446

 

 

 

$

 

(3,019

)

 

Diluted EPS

 

$

 

(0.11

)

 

 

$

 

 

 

 

$

 

 

 

 

$

 

0.04

 

 

 

$

 

(0.08

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended March 31, 2019

 

 

Per GAAP Statements

 

Asset Impairment

 

Restructuring Costs

 

Certain Legal & Professional Fees

 

Adjusted Non-GAAP

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$

 

31,824

 

 

 

 

 

 

 

 

 

$

 

31,824

 

 

Costs and operating expenses:

 

 

 

 

 

 

 

 

 

 

Cost of revenue (1)

 

 

16,506

 

 

 

 

 

 

 

 

 

 

16,506

 

 

Technology and development (1)(2)

 

 

4,546

 

 

 

 

 

 

 

 

 

 

4,546

 

 

Sales and marketing (2)

 

 

5,991

 

 

 

 

 

 

 

 

 

 

5,991

 

 

General and administrative (1)(2)

 

 

4,465

 

 

 

 

(226

)

 

 

 

 

 

(779

)

 

 

 

3,460

 

 

Depreciation and amortization

 

 

2,435

 

 

 

 

 

 

 

 

 

 

2,435

 

 

Total costs and operating expenses

 

 

33,943

 

 

 

 

(226

)

 

 

 

 

 

 

 

(779

)

 

 

 

32,938

 

 

Loss from operations

 

 

(2,119

)

 

 

 

226

 

 

 

 

 

 

 

 

779

 

 

 

 

(1,114

)

 

Other income, net

 

 

216

 

 

 

 

 

 

 

 

 

 

216

 

 

Interest Expense

 

 

(64

)

 

 

 

 

 

 

 

 

 

(64

)

 

Loss before income taxes

 

 

(1,967

)

 

 

 

226

 

 

 

 

 

 

 

 

779

 

 

 

 

(962

)

 

Provision for income taxes (3)

 

 

277

 

 

 

 

 

 

 

 

 

 

277

 

 

Net loss

 

$

 

(2,244

)

 

 

 

226

 

 

 

$

 

 

 

 

$

 

779

 

 

 

$

 

(1,239

)

 

Diluted EPS

 

$

 

(0.06

)

 

 

$

 

0.01

 

 

 

$

 

 

 

 

$

 

0.02

 

 

 

$

 

(0.03

)

 

Notes:

(1) Exclusive of depreciation and amortization shown separately.

(2) Includes stock-based compensation

(3) No income tax effects to adjustments presented due to full valuation allowance.

Synacor's management believes that certain non-GAAP measures of Adjusted Net Loss and Adjusted Diluted Earnings per Share provide investors with additional information to assess the Company's financial performance. These measures should be viewed as supplemental data, rather than substitutes or alternatives to the comparable GAAP measures.

FNK IR
Rob Fink
+1.646.809.4048
rob@fnkir.com

Meredith Roth
VP, Marketing & Corporate Communications
Synacor
+1.770.846.1911
mroth@synacor.com

Source: Synacor, Inc.

Investor Contact

Send your questions for the Investor Relations
department to:

ir@synacor.com

Email Alerts

*
*







 
Enter the code shown above.