Synacor Reports Continued Bottomline Improvement in Second Quarter of 2019
Synacor, Inc. (Nasdaq: SYNC), the trusted technology, multiplatform services and revenue partner for video, internet and communications providers, device manufacturers, governments and enterprises, today announced its financial results for the second quarter ended June 30, 2019.
“Our second-quarter results reflect our emphasis on profitability as we focus on building our high-margin, recurring-revenue software business,” said Himesh Bhise, Synacor’s chief executive officer. “Our revenue was in line with our expectations, while our adjusted EBITDA was slightly above our guidance range and up significantly from a year ago.”
“This improved financial performance is enabling us to invest in our high-margin, recurring-revenue-driven enterprise software business,” added Bhise. “We are accelerating our transformation to becoming a collaboration and identity SaaS business. The pipeline for our software business is very strong, as we transition our Zimbra email and collaboration platform to a recurring revenue model and expand Cloud ID Identity and access management solutions into broader enterprise applications. While this transition is having a short-term effect on revenue growth, on a trailing twelve month basis we have grown recurring software revenue more than 7%.”
- Zimbra customer wins in Q2 include 103 new deployments and 220 deal expansions.
- Extended and upgraded PenTeleData, a strategic partnership of local cable and telephone companies, to Zimbra X through 2022.
- Expanded reseller relationship with AZTi, to incorporate Zimbra into a secure messaging collaboration service for business customers in Japan.
- Four major multichannel video programming distributors (MVPD) now live on Cloud ID through the previously announced ETI reseller relationship.
- Expanded margins in publisher-based advertising four-fold and the number of active publishers grew over 18% year over year.
Revenue: For the second quarter of 2019, total revenue was $31.8 million, in line with the Company’s financial guidance, and down from $35.9 million in the second quarter of 2018.
Software & Services revenue totaled $10.6 million in the second quarter of 2019, compared with $12.8 million in the second quarter of 2018. The second quarter of 2018 included $1.4 million in revenue from discontinued product lines and non-recurring services. Portal & Advertising revenue totaled $21.3 million in the second quarter of 2019, compared with $23.1 million in the year-ago period.