SYNC - Synacor Reports Fourth Quarter and Full-Year 2020 Financial Results
Quarterly Results in Line with Preliminary Announcement for Revenue, Net Income and Adjusted EBITDA
Synacor, Inc. (Nasdaq: SYNC), a leading provider of cloud-based Collaboration and Identity Management software and services serving global enterprises, video, internet and communications providers, and governments, today announced its financial results for the fourth quarter and year ended December 31, 2020.
Fourth Quarter Financial Highlights
- Revenue of $24.1 million
- Net income of $0.1 million and adjusted EBITDA of $3.6 million
“Synacor delivered a strong end to 2020, with solid Q4 results for revenue, net income and adjusted EBITDA,” said Himesh Bhise, Synacor’s Chief Executive Officer.
Recent Operating Highlights
- Signed agreement on February 10, 2021 to be acquired by Centre Lane Partners
- Added 93 new customers and 177 contract expansions for Zimbra email and collaboration platform delivered through worldwide channel partners
- Signed four deals with streaming services providers for Cloud ID identity and access management platform
- Publisher Advertising business continues recovery post the onset of COVID-19, with 102 active publishers and higher margins.
Fourth Quarter and Full Year Financial Results:
Revenue
For the fourth quarter of 2020, revenue was $24.1 million, compared to $26.8 million in the fourth quarter of 2019. The decline was primarily driven by the COVID-19 impact on our business.
Revenue in the Software & Services segment totaled $12.2 million for the fourth quarter of 2020, compared with $11.6 million in the fourth quarter of 2019. Revenue in the Portal & Advertising segment totaled $11.9 million for the fourth quarter of 2020, compared with $15.2 million in the fourth quarter of 2019.
For fiscal year 2020, total revenue was $81.4 million, compared to $121.8 million in fiscal year 2019. Software & Services revenue was $44.3 million, relatively unchanged from $44.5 million in the prior year. Portal & Advertising revenue was $37.1 million, compared to $77.4 million in fiscal 2019. The decline was primarily due to the loss of the AT&T portal contract in Q3’19 and the COVID-19 impact on our business.
Net Income / (Loss)
Net income for the fourth quarter of 2020 was $0.1 million, or $0.00 per basic and diluted share, compared with a net loss of $0.6 million, or $0.01 per basic and diluted share, in the prior year quarter.
For fiscal year 2020, net loss was $11.6 million, or $0.29 per basic and diluted share, compared with a net loss of $9.0 million, or $0.23 per basic and diluted share, in fiscal year 2019.
Adjusted EBITDA
Adjusted EBITDA for the fourth quarter of 2020 was $3.6 million, or 14.8% of revenue, compared with $3.4 million, or 12.8% of revenue, in the fourth quarter of 2019. Adjusted EBITDA excludes stock-based compensation expense, other income and expense, asset impairments, restructuring costs, and certain legal and professional services fees.
For fiscal year 2020, adjusted EBITDA was $5.3 million, or 6.5% of revenue, compared with $9.5 million, or 7.8% of revenue, in fiscal year 2019.
Cash
Cash and cash equivalents at the end of the fourth quarter of 2020 was $5.7 million, compared with $4.3 million at the end of the third quarter of 2020 and $11.0 million at December 31, 2019. The Company continues to have no borrowings on its $12 million credit facility.
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 income (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 strategic and operational plans including, without limitation, the impact of the pending transaction with Centre Lane Partners. 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: the fact that the proposed transaction with Centre Lane Partners may not be completed in a timely manner or at all; the impact of the COVID-19 pandemic on our business; execution of our plans and strategies; 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.
Further information on these and other factors that could affect the Company’s financial results is included in filings it makes with the Securities and Exchange Commission from time to time, including the section entitled “Risk Factors” in the Company’s most recent Form 10-K filed with the SEC. These documents are available on the SEC Filings section of the Investor Information section of the Company’s website at http://investor.synacor.com/ . All information provided in this release and in the attachments is available as of March 18, 2021, and except as required by applicable law, Synacor undertakes no duty to update this information.
| Synacor, Inc. Condensed Consolidated Balance Sheets (In thousands) (Unaudited) |
|
|
|
|
| December 31, 2020 |
|
|
| December 31, 2019 |
|
|
|
|
|
|
|
|
|
|
| Assets |
| Current assets: |
|
|
|
|
|
|
|
|
| Cash and cash equivalents |
|
|
| $ |
| 5,748 |
|
|
|
|
| $ |
| 10,966 |
|
|
| Accounts receivable, net |
|
|
| 17,518 |
|
|
|
|
| 20,532 |
|
|
| Prepaid expenses and other current assets |
|
|
| 3,091 |
|
|
|
|
| 2,989 |
|
|
| Total current assets |
|
|
| 26,357 |
|
|
|
|
| 34,487 |
|
|
| Property and equipment, net |
|
|
| 10,815 |
|
|
|
|
| 14,948 |
|
|
| Operating lease right-of-use assets |
|
|
| 3,146 |
|
|
|
|
| 4,765 |
|
|
| Goodwill |
|
|
| 15,952 |
|
|
|
|
| 15,948 |
|
|
| Intangible assets |
|
|
| 6,380 |
|
|
|
|
| 8,411 |
|
|
| Other assets |
|
|
| 593 |
|
|
|
|
| 1,319 |
|
|
| Total Assets |
|
|
| $ |
| 63,243 |
|
|
|
|
| $ |
| 79,878 |
|
|
|
|
|
|
|
|
|
|
|
|
| Liabilities and Stockholders' Equity |
|
|
|
|
|
|
|
|
| Current liabilities: |
|
|
|
|
|
|
|
|
| Accounts payable |
|
|
| $ |
| 9,910 |
|
|
|
|
| $ |
| 12,583 |
|
|
| Accrued expenses and other current liabilities |
|
|
| 4,788 |
|
|
|
|
| 5,878 |
|
|
| Current portion of deferred revenue |
|
|
| 6,617 |
|
|
|
|
| 6,509 |
|
|
| Current portion of long-term debt and finance leases |
|
|
| 992 |
|
|
|
|
| 2,529 |
|
|
| Current portion of operating lease liabilities |
|
|
| 2,224 |
|
|
|
|
| 2,165 |
|
|
| Total current liabilities |
|
|
| 24,531 |
|
|
|
|
| 29,664 |
|
|
| Long-term portion of debt and finance leases |
|
|
| 1,082 |
|
|
|
|
| 729 |
|
|
| Deferred revenue |
|
|
| 1,823 |
|
|
|
|
| 2,366 |
|
|
| Long-term portion of operating lease liabilities |
|
|
| 1,449 |
|
|
|
|
| 2,846 |
|
|
| Deferred income taxes |
|
|
| 501 |
|
|
|
|
| 275 |
|
|
| Other long-term liabilities |
|
|
| 381 |
|
|
|
|
| 334 |
|
|
| Total Liabilities |
|
|
| 29,767 |
|
|
|
|
| 36,214 |
|
|
| Stockholders' Equity: |
|
|
|
|
|
|
|
|
| Common stock |
|
|
| 406 |
|
|
|
|
| 401 |
|
|
| Treasury stock |
|
|
| (2,004) |
|
|
|
|
| (1,931) |
|
|
| Additional paid-in capital |
|
|
| 147,940 |
|
|
|
|
| 146,460 |
|
|
| Accumulated deficit |
|
|
| (112,308) |
|
|
|
|
| (100,747) |
|
|
| Accumulated other comprehensive loss |
|
|
| (558) |
|
|
|
|
| (519) |
|
|
| Total stockholders’ equity |
|
|
| 33,476 |
|
|
|
|
| 43,664 |
|
|
| Total Liabilities and Stockholders' Equity |
|
|
| $ |
| 63,243 |
|
|
|
|
| $ |
| 79,878 |
|
|
| Synacor, Inc. Condensed Consolidated Statement of Operations (In thousands except for share and per share data) (Unaudited) |
|
|
|
|
| Three Months Ended December 31, |
|
|
| Twelve Months Ended December 31, |
|
|
|
|
| 2020 |
|
|
| 2019 |
|
|
| 2020 |
|
|
| 2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Revenue |
|
|
| $ |
| 24,074 |
|
|
|
|
| $ |
| 26,806 |
|
|
|
|
| $ |
| 81,362 |
|
|
|
|
| $ |
| 121,845 |
|
|
| Costs and operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Cost of revenue (1) |
|
|
| 12,068 |
|
|
|
|
| 12,698 |
|
|
|
|
| 42,236 |
|
|
|
|
| 61,990 |
|
|
| Technology and development (1)(2) |
|
|
| 2,871 |
|
|
|
|
| 3,605 |
|
|
|
|
| 12,007 |
|
|
|
|
| 18,273 |
|
|
| Sales and marketing (2) |
|
|
| 3,769 |
|
|
|
|
| 4,776 |
|
|
|
|
| 15,350 |
|
|
|
|
| 21,790 |
|
|
| General and administrative (1)(2) |
|
|
| 3,378 |
|
|
|
|
| 3,666 |
|
|
|
|
| 14,356 |
|
|
|
|
| 17,734 |
|
|
| Depreciation and amortization |
|
|
| 1,638 |
|
|
|
|
| 2,258 |
|
|
|
|
| 8,068 |
|
|
|
|
| 9,865 |
|
|
| Total costs and operating expenses |
|
|
| 23,724 |
|
|
|
|
| 27,003 |
|
|
|
|
| 92,017 |
|
|
|
|
| 129,652 |
|
|
| Income (loss) from operations |
|
|
| 350 |
|
|
|
|
| (197) |
|
|
|
|
| (10,655) |
|
|
|
|
| (7,807) |
|
|
| Other income (expense), net |
|
|
| 22 |
|
|
|
|
| (127) |
|
|
|
|
| 240 |
|
|
|
|
| (17) |
|
|
| Interest expense |
|
|
| (43) |
|
|
|
|
| (69) |
|
|
|
|
| (189) |
|
|
|
|
| (268) |
|
|
| Income (loss) before income taxes |
|
|
| 329 |
|
|
|
|
| (393) |
|
|
|
|
| (10,604) |
|
|
|
|
| (8,092) |
|
|
| Provision for income taxes |
|
|
| 221 |
|
|
|
|
| 172 |
|
|
|
|
| 957 |
|
|
|
|
| 929 |
|
|
| Net income (loss) |
|
|
| $ |
| 108 |
|
|
|
|
| $ |
| (565) |
|
|
|
|
| $ |
| (11,561) |
|
|
|
|
| $ |
| (9,021) |
|
|
| Net income (loss) per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Basic |
|
|
| $ |
| — |
|
|
|
|
| $ |
| (0.01) |
|
|
|
|
| $ |
| (0.29) |
|
|
|
|
| $ |
| (0.23) |
|
|
| Diluted |
|
|
| $ |
| — |
|
|
|
|
| $ |
| (0.01) |
|
|
|
|
| $ |
| (0.29) |
|
|
|
|
| $ |
| (0.23) |
|
|
| Weighted average shares used to compute net income (loss) per share: |
| Basic |
|
|
| 39,641,158 |
|
|
|
|
| 39,190,444 |
|
|
|
|
| 39,464,954 |
|
|
|
|
| 39,090,239 |
|
|
| Diluted |
|
|
| 40,279,616 |
|
|
|
|
| 39,190,444 |
|
|
|
|
| 39,464,954 |
|
|
|
|
| 39,090,239 |
|
|
| Notes: |
| (1) Exclusive of depreciation and amortization shown separately. |
| (2) Includes stock-based compensation expense as follows: |
|
|
|
|
| Three Months Ended December 31, |
|
|
| Twelve Months Ended December 31, |
|
|
|
|
| 2020 |
|
|
| 2019 |
|
|
| 2020 |
|
|
| 2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Technology and development |
|
|
| $ |
| 55 |
|
|
|
|
| $ |
| 40 |
|
|
|
|
| $ |
| 218 |
|
|
|
|
| $ |
| 338 |
|
|
| Sales and marketing |
|
|
| 106 |
|
|
|
|
| 138 |
|
|
|
|
| 407 |
|
|
|
|
| 513 |
|
|
| General and administrative |
|
|
| 202 |
|
|
|
|
| 254 |
|
|
|
|
| 831 |
|
|
|
|
| 765 |
|
|
|
|
|
|
| $ |
| 363 |
|
|
|
|
| $ |
| 432 |
|
|
|
|
| $ |
| 1,456 |
|
|
|
|
| $ |
| 1,616 |
|
|
| Synacor, Inc. Reconciliation of GAAP to Non-GAAP Measures (In thousands) (Unaudited)
The following table presents a reconciliation of net income (loss) to adjusted EBITDA for each of the periods indicated: |
|
|
|
|
| Three Months Ended December 31, |
|
|
| Twelve Months Ended December 31, |
|
|
|
|
| 2020 |
|
|
| 2019 |
|
|
| 2020 |
|
|
| 2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Reconciliation of Adjusted EBITDA: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net income (loss) |
|
|
| $ |
| 108 |
|
|
|
|
| $ |
| (565) |
|
|
|
|
| $ |
| (11,561) |
|
|
|
|
| $ |
| (9,021) |
|
|
| Provision for income taxes |
|
|
| 221 |
|
|
|
|
| 172 |
|
|
|
|
| 957 |
|
|
|
|
| 929 |
|
|
| Interest expense |
|
|
| 43 |
|
|
|
|
| 69 |
|
|
|
|
| 189 |
|
|
|
|
| 268 |
|
|
| Other (income) expense, net |
|
|
| (22) |
|
|
|
|
| 127 |
|
|
|
|
| (240) |
|
|
|
|
| 17 |
|
|
| Depreciation and amortization |
|
|
| 2,235 |
|
|
|
|
| 2,742 |
|
|
|
|
| 10,294 |
|
|
|
|
| 11,251 |
|
|
| Asset impairment* |
|
|
| 119 |
|
|
|
|
| — |
|
|
|
|
| 806 |
|
|
|
|
| 1,751 |
|
|
| Stock-based compensation expense |
|
|
| 363 |
|
|
|
|
| 432 |
|
|
|
|
| 1,456 |
|
|
|
|
| 1,616 |
|
|
| Restructuring costs** |
|
|
| 264 |
|
|
|
|
| 140 |
|
|
|
|
| 1,483 |
|
|
|
|
| 959 |
|
|
| Certain legal and professional services fees*** |
|
|
| 230 |
|
|
|
|
| 327 |
|
|
|
|
| 1,934 |
|
|
|
|
| 1,733 |
|
|
| Adjusted EBITDA |
|
|
| $ |
| 3,561 |
|
|
|
|
| $ |
| 3,444 |
|
|
|
|
| $ |
| 5,318 |
|
|
|
|
| $ |
| 9,503 |
|
|
| * |
| "Asset impairment" includes impairment charges related to property, plant and equipment, capitalized software and leased assets. |
| ** |
| "Restructuring costs" include severance expense, contract termination costs and other exit or disposal costs. |
| *** |
| "Certain legal and 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) |
|
|
|
|
| Twelve Months Ended December 31, |
|
|
|
|
| 2020 |
|
|
| 2019 |
|
|
|
|
|
|
|
|
|
|
| Cash Flows from Operating Activities: |
|
|
|
|
|
|
|
|
| Net loss |
|
|
| $ |
| (11,561) |
|
|
|
|
| $ |
| (9,021) |
|
|
| Adjustments to reconcile net loss to net cash and cash equivalents |
|
|
|
|
|
|
|
|
| Depreciation and amortization |
|
|
| 10,294 |
|
|
|
|
| 11,251 |
|
|
| Long-lived asset impairment |
|
|
| 806 |
|
|
|
|
| 1,751 |
|
|
| Stock-based compensation expense |
|
|
| 1,456 |
|
|
|
|
| 1,616 |
|
|
| Provision for deferred income taxes |
|
|
| 226 |
|
|
|
|
| 44 |
|
|
| Change in allowance for doubtful accounts |
|
|
| (75) |
|
|
|
|
| 360 |
|
|
| Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
|
| Accounts receivable, net |
|
|
| 3,089 |
|
|
|
|
| 4,676 |
|
|
| Prepaid expenses and other assets |
|
|
| 624 |
|
|
|
|
| 526 |
|
|
| Operating lease right-of-use assets and liabilities, net |
|
|
| (305) |
|
|
|
|
| 95 |
|
|
| Accounts payable, accrued expenses and other liabilities |
|
|
| (3,081) |
|
|
|
|
| (8,828) |
|
|
| Deferred revenue |
|
|
| (435) |
|
|
|
|
| (11) |
|
|
| Net cash provided by operating activities |
|
|
| 1,038 |
|
|
|
|
| 2,459 |
|
|
| Cash Flows from Investing Activities: |
|
|
|
|
|
|
|
|
| Purchases of property and equipment |
|
|
| (3,053) |
|
|
|
|
| (3,772) |
|
|
| Net cash used in investing activities |
|
|
| (3,053) |
|
|
|
|
| (3,772) |
|
|
| Cash Flows from Financing Activities: |
|
|
|
|
|
|
|
|
| Repayments on long-term debt and finance leases |
|
|
| (3,086) |
|
|
|
|
| (3,427) |
|
|
| Payments of financing issuance costs |
|
|
| — |
|
|
|
|
| (60) |
|
|
| Proceeds from exercise of common stock options |
|
|
| — |
|
|
|
|
| 60 |
|
|
| Purchase of treasury stock and shares received to satisfy minimum tax |
|
|
| (73) |
|
|
|
|
| (32) |
|
|
| Net cash used in financing activities |
|
|
| (3,159) |
|
|
|
|
| (3,459) |
|
|
| Effect of exchange rate changes on cash and cash equivalents |
|
|
| (44) |
|
|
|
|
| (183) |
|
|
| Net decrease in Cash and Cash equivalents |
|
|
| (5,218) |
|
|
|
|
| (4,955) |
|
|
| Cash and cash equivalents, beginning of period |
|
|
| 10,966 |
|
|
|
|
| 15,921 |
|
|
| Cash and cash equivalents, end of period |
|
|
| $ |
| 5,748 |
|
|
|
|
| $ |
| 10,966 |
|
|
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:
- Software & Services, which includes email / collaboration (Zimbra) and identity management (Cloud ID).
- 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 December 31, |
|
|
| Twelve Months Ended December 31, |
|
|
|
|
| 2020 |
|
|
| 2019 |
|
|
| % Change |
|
|
| 2020 |
|
|
| 2019 |
|
|
| % Change |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Segment Revenue: |
| Software & Services |
|
|
| $ |
| 12,187 |
|
|
|
|
| $ |
| 11,648 |
|
|
|
|
| 4.6 |
| % |
|
|
| $ |
| 44,280 |
|
|
|
|
| $ |
| 44,485 |
|
|
|
|
| (0.5) |
| % |
| Portal & Advertising |
|
|
| 11,887 |
|
|
|
|
| 15,158 |
|
|
|
|
| (21.6) |
| % |
|
|
| 37,082 |
|
|
|
|
| 77,360 |
|
|
|
|
| (52.1) |
| % |
| Total |
|
|
| $ |
| 24,074 |
|
|
|
|
| $ |
| 26,806 |
|
|
|
|
| (10.2) |
| % |
|
|
| $ |
| 81,362 |
|
|
|
|
| $ |
| 121,845 |
|
|
|
|
| (33.2) |
| % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Segment Adjusted EBITDA: |
| Software & Services |
|
|
| $ |
| 4,204 |
|
|
|
|
| $ |
| 3,565 |
|
|
|
|
| 17.9 |
| % |
|
|
| $ |
| 14,340 |
|
|
|
|
| $ |
| 12,531 |
|
|
|
|
| 14.4 |
| % |
| Portal & Advertising |
|
|
| 2,224 |
|
|
|
|
| 2,621 |
|
|
|
|
| (15.1) |
| % |
|
|
| 2,168 |
|
|
|
|
| 10,657 |
|
|
|
|
| (79.7) |
| % |
| Unallocated Corporate G&A Expense |
|
|
| (2,867) |
|
|
|
|
| (2,742) |
|
|
|
|
| (4.6) |
| % |
|
|
| (11,190) |
|
|
|
|
| (13,685) |
|
|
|
|
| 18.2 |
| % |
| Total |
|
|
| $ |
| 3,561 |
|
|
|
|
| $ |
| 3,444 |
|
|
|
|
| 3.4 |
| % |
|
|
| $ |
| 5,318 |
|
|
|
|
| $ |
| 9,503 |
|
|
|
|
| (44.0) |
| % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Segment Adjusted EBITDA margin* |
| Software & Services |
|
|
| 34.5 |
| % |
|
|
| 30.6 |
| % |
|
|
| 390 bps |
|
|
| 32.4 |
| % |
|
|
| 28.2 |
| % |
|
|
| 420 bps |
| Portal & Advertising |
|
|
| 18.7 |
| % |
|
|
| 17.3 |
| % |
|
|
| 140 bps |
|
|
| 5.8 |
| % |
|
|
| 13.8 |
| % |
|
|
| -790 bps |
| Total |
|
|
| 14.8 |
| % |
|
|
| 12.8 |
| % |
|
|
| 190 bps |
|
|
| 6.5 |
| % |
|
|
| 7.8 |
| % |
|
|
| -130 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:
- Recurring = revenue recognized over time
- Non-recurring = revenue recognized at a point in time
|
|
|
|
| Three Months Ended December 31, |
|
|
| Twelve Months Ended December 31, |
|
|
|
|
| 2020 |
|
|
| 2019 |
|
|
| % Change |
|
|
| 2020 |
|
|
| 2019 |
|
|
| % Change |
| Software & Services Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Recurring |
|
|
| $ |
| 8,540 |
|
|
|
|
| $ |
| 8,526 |
|
|
|
|
| 0.2 |
| % |
|
|
| $ |
| 33,072 |
|
|
|
|
| $ |
| 33,669 |
|
|
|
|
| (1.8) |
| % |
| Non-recurring |
|
|
| 3,647 |
|
|
|
|
| 3,122 |
|
|
|
|
| 16.8 |
| % |
|
|
| 11,208 |
|
|
|
|
| 10,456 |
|
|
|
|
| 7.2 |
| % |
| Discontinued Product ** |
|
|
| — |
|
|
|
|
| — |
|
|
|
|
| — |
| % |
|
|
| — |
|
|
|
|
| 360 |
|
|
|
|
| (100.0) |
| % |
| Total |
|
|
| $ |
| 12,187 |
|
|
|
|
| $ |
| 11,648 |
|
|
|
|
| 4.6 |
| % |
|
|
| $ |
| 44,280 |
|
|
|
|
| $ |
| 44,485 |
|
|
|
|
| (0.5) |
| % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Portal & Advertising Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Recurring |
|
|
| $ |
| 461 |
|
|
|
|
| $ |
| 1,186 |
|
|
|
|
| (61.1) |
| % |
|
|
| $ |
| 3,120 |
|
|
|
|
| $ |
| 5,168 |
|
|
|
|
| (39.6) |
| % |
| Non-recurring |
|
|
| 11,426 |
|
|
|
|
| 13,972 |
|
|
|
|
| (18.2) |
| % |
|
|
| 33,962 |
|
|
|
|
| 72,192 |
|
|
|
|
| (53.0) |
| % |
| Total |
|
|
| $ |
| 11,887 |
|
|
|
|
| $ |
| 15,158 |
|
|
|
|
| (21.6) |
| % |
|
|
| $ |
| 37,082 |
|
|
|
|
| $ |
| 77,360 |
|
|
|
|
| (52.1) |
| % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Recurring |
|
|
| $ |
| 9,001 |
|
|
|
|
| $ |
| 9,712 |
|
|
|
|
| (7.3) |
| % |
|
|
| $ |
| 36,192 |
|
|
|
|
| $ |
| 38,837 |
|
|
|
|
| (6.8) |
| % |
| Non-recurring |
|
|
| 15,073 |
|
|
|
|
| 17,094 |
|
|
|
|
| (11.8) |
| % |
|
|
| 45,170 |
|
|
|
|
| 82,648 |
|
|
|
|
| (45.3) |
| % |
| Discontinued Product ** |
|
|
| — |
|
|
|
|
| — |
|
|
|
|
| — |
| % |
|
|
| — |
|
|
|
|
| 360 |
|
|
|
|
| (100.0) |
| % |
| Total |
|
|
| $ |
| 24,074 |
|
|
|
|
| $ |
| 26,806 |
|
|
|
|
| (10.2) |
| % |
|
|
| $ |
| 81,362 |
|
|
|
|
| $ |
| 121,845 |
|
|
|
|
| (33.2) |
| % |
** 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 December 31, 2020 |
|
|
|
|
| Per GAAP Statements |
|
|
| Asset Impairment |
|
|
| Restructuring Costs |
|
|
| Certain Legal and Professional Services Fees |
|
|
| Adjusted Non-GAAP |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Revenue |
|
|
| $ |
| 24,074 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| $ |
| 24,074 |
|
|
| Costs and operating expenses |
|
|
| 23,724 |
|
|
|
|
| (119) |
|
|
|
|
| (264) |
|
|
|
|
| (230) |
|
|
|
|
| 23,111 |
|
|
| Income from operations |
|
|
| $ |
| 350 |
|
|
|
|
| 119 |
|
|
|
|
| 264 |
|
|
|
|
| 230 |
|
|
|
|
| $ |
| 963 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net income (1) |
|
|
| $ |
| 108 |
|
|
|
|
| $ |
| 119 |
|
|
|
|
| $ |
| 264 |
|
|
|
|
| $ |
| 230 |
|
|
|
|
| $ |
| 721 |
|
|
| Diluted EPS |
|
|
| $ |
| — |
|
|
|
|
| $ |
| — |
|
|
|
|
| $ |
| 0.01 |
|
|
|
|
| $ |
| 0.01 |
|
|
|
|
| $ |
| 0.02 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Three months ended December 31, 2019 |
|
|
|
|
| Per GAAP Statements |
|
|
| Asset Impairment |
|
|
| Restructuring Costs |
|
|
| Certain Legal and Professional Services Fees |
|
|
| Adjusted Non-GAAP |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Revenue |
|
|
| 26,806 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 26,806 |
|
|
| Costs and operating expenses |
|
|
| $ |
| 27,003 |
|
|
|
|
| — |
|
|
|
|
| (140) |
|
|
|
|
| (327) |
|
|
|
|
| $ |
| 26,536 |
|
|
| Loss from operations |
|
|
| $ |
| (197) |
|
|
|
|
| — |
|
|
|
|
| 140 |
|
|
|
|
| 327 |
|
|
|
|
| $ |
| 270 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| — |
|
|
| Net loss (1) |
|
|
| $ |
| (565) |
|
|
|
|
| $ |
| — |
|
|
|
|
| $ |
| 140 |
|
|
|
|
| $ |
| 327 |
|
|
|
|
| $ |
| (98) |
|
|
| Diluted EPS |
|
|
| $ |
| (0.01) |
|
|
|
|
| $ |
| — |
|
|
|
|
| $ |
| — |
|
|
|
|
| $ |
| 0.01 |
|
|
|
|
| $ |
| — |
|
|
| Notes: |
| (1) No income tax effects to adjustments presented due to full valuation allowance. |
Synacor's management believes that certain non-GAAP measures of Adjusted Net Income (Loss) and Adjusted Diluted Earnings (Loss) 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.
| Synacor, Inc. Reconciliation of Adjusted Financial Measures (In thousands except per share amounts) (Unaudited) |
|
|
|
|
| Twelve months ended December 31, 2020 |
|
|
|
|
| Per GAAP Statements |
|
|
| Asset Impairment |
|
|
| Restructuring Costs |
|
|
| Certain Legal and Professional Services Fees |
|
|
| Adjusted Non-GAAP |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Revenue |
|
|
| $ |
| 81,362 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| $ |
| 81,362 |
|
|
| Costs and operating expenses |
|
|
| 92,017 |
|
|
|
|
| (806) |
|
|
|
|
| (1,483) |
|
|
|
|
| (1,934) |
|
|
|
|
| 87,794 |
|
|
| Loss from operations |
|
|
| $ |
| (10,655) |
|
|
|
|
| 806 |
|
|
|
|
| 1,483 |
|
|
|
|
| 1,934 |
|
|
|
|
| $ |
| (6,432) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net loss (1) |
|
|
| $ |
| (11,561) |
|
|
|
|
| $ |
| 806 |
|
|
|
|
| $ |
| 1,483 |
|
|
|
|
| $ |
| 1,934 |
|
|
|
|
| $ |
| (7,338) |
|
|
| Diluted EPS |
|
|
| $ |
| (0.29) |
|
|
|
|
| $ |
| 0.02 |
|
|
|
|
| $ |
| 0.04 |
|
|
|
|
| $ |
| 0.05 |
|
|
|
|
| $ |
| (0.18) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Twelve months ended December 31, 2019 |
|
|
|
|
| Per GAAP Statements |
|
|
| Asset Impairment |
|
|
| Restructuring Costs |
|
|
| Certain Legal and Professional Services Fees |
|
|
| Adjusted Non-GAAP |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Revenue |
|
|
| $ |
| 121,845 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| $ |
| 121,845 |
|
|
| Costs and operating expenses |
|
|
| 129,652 |
|
|
|
|
| (1,751) |
|
|
|
|
| (959) |
|
|
|
|
| (1,733) |
|
|
|
|
| 125,209 |
|
|
| Loss from operations |
|
|
| $ |
| (7,807) |
|
|
|
|
| 1,751 |
|
|
|
|
| 959 |
|
|
|
|
| 1,733 |
|
|
|
|
| $ |
| (3,364) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net loss (1) |
|
|
| $ |
| (9,021) |
|
|
|
|
| $ |
| 1,751 |
|
|
|
|
| $ |
| 959 |
|
|
|
|
| $ |
| 1,733 |
|
|
|
|
| $ |
| (4,578) |
|
|
| Diluted EPS |
|
|
| $ |
| (0.23) |
|
|
|
|
| $ |
| 0.04 |
|
|
|
|
| $ |
| 0.02 |
|
|
|
|
| $ |
| 0.04 |
|
|
|
|
| $ |
| (0.12) |
|
|
| Notes: |
| (1) 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 Loss 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.
View source version on businesswire.com: https://www.businesswire.com/news/home/20210318005827/en/
FNK IR
Rob Fink
+1.646.809.4048
rob@fnkir.com