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Synacor Delivers 32% YOY Revenue Growth in Fourth Quarter 2017; Full-Year Revenue Increases 10%Synacor, Inc. (NASDAQ: SYNC), the trusted multiscreen technology and monetization partner for video, internet and communications providers, device manufacturers, governments and enterprises, today announced its financial results for the fourth quarter and year ended December 31, 2017. "We ended the year with a strong fourth quarter," said Synacor CEO Himesh Bhise. "Our fourth-quarter revenue of $46 million represented an increase of 32% from the fourth quarter of 2016, making it the highest revenue quarter in the history of the company. We also delivered adjusted EBITDA of $3.6 million, three-times the adjusted EBITDA from the same quarter in the year prior." "Looking forward, we are focused on improved profitability balanced with prudent investment in growth. Our revenue guidance of $150 million to $155 million represents about 7% to 11% revenue growth, and our adjusted EBITDA guidance of $7 million to $10 million is three to four times our 2017 adjusted EBITDA," continued Bhise. Recent Highlights
FY 2017 and Q4 2017 Financial Results Revenue: For fiscal 2017, revenue was $140.0 million, an increase of 10% from 2016. For the fourth quarter of 2017, revenue was $46.0 million, meeting the Company's financial guidance, an increase of 32% versus the fourth quarter of 2016. Net Income: For fiscal 2017, net loss narrowed to $9.8 million, or $(0.27) per share, compared with a net loss of $10.7 million, or $(0.36) per share, in fiscal 2016. For the fourth quarter of 2017, net loss was $0.1 million, or $(0.00) per share, compared with a net loss of $3.1 million, or $(0.10) per share, in the fourth quarter of 2016. Adjusted EBITDA: For fiscal 2017, adjusted earnings before interest, taxes, depreciation and amortization (adjusted EBITDA), which excludes stock-based compensation expense, was $2.3 million compared with $3.2 million for fiscal 2016. For the fourth quarter of 2017, adjusted EBITDA, which excludes stock-based compensation expense, increased to $3.6 million compared with $1.2 million for the fourth quarter of 2016. Cash: The Company ended the fourth quarter of 2017 with $22.5 million in cash and cash equivalents, compared with $22.9 million at the end of the third quarter of 2017. Guidance Based on information available as of March 15, 2018, the Company is providing financial guidance for the first quarter and full year 2018 as follows:
Conference Call Details Synacor will host a conference call today at 5:00 p.m. ET to discuss the fourth-quarter and fiscal year-end 2017 financial results with the investment community. The live webcast of Synacor's earnings conference call can be accessed at http://investor.synacor.com/events.cfm. To participate, please login approximately ten minutes prior to the webcast. For those without access to the internet, the call may be accessed toll-free via phone at (833) 235-2655, with conference ID 6378502, or callers outside the U.S. may dial (647) 689-4151. Following completion of the call, a recorded webcast replay will be available on Synacor's website. To listen to the telephone replay through March 22, 2018, call toll-free (800) 585-8367, or callers outside the U.S. may dial (416) 621-4642. The conference ID is 6378502. About Synacor Synacor (Nasdaq: SYNC) is the trusted technology development, multiplatform services and revenue partner for 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. 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. 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 fiscal year 2018 guidance, 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: execution of our plans and strategies, including execution against our agreement with AT&T the pace and degree to which the AT&T portal can be monetized; 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. 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-Q 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 15, 2018, and Synacor undertakes no duty to update this information.
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