Synchronoss Technologies Inc, a global leader in managed mobility solutions, continued its upward trend that was evident in its third-quarter results. A company release showed that the adjusted revenue climbed to $181 million, while net income rose to $32.5 million. Both these numbers are 20 percent higher than the same quarter last year. As a result, the company’s adjusted earnings was $0.68 per share. These numbers are sure to make investors happy as the expected revenue was almost three million more than what they expected, and the adjusted earnings was also $0.01 more. Due to such impressive numbers and happy investors, the shares of Synchronoss rose by 13.7 percent during trading on Tuesday.

A closer look at these numbers show that revenue from its cloud business grew by 40 percent year over year, and accounts for almost 60 percent of the company’s total sales. This growth was fueled by the rising demand from customers who wanted to make the most of cloud power. Specifically, successful cloud migrations to companies like Softbank and British Telecom helped it to gain international recognition. Also, this company’s enterprise security mobility platform brought in new clients from healthcare, legal, and financial industries. More importantly, Synchross’ partnership with Verizon UID gave it access to almost one-third of the US consumer market, besides the enterprise market. All these developments and strategies have helped Synchronoss to make such impressive strides over the last year.

Despite these numbers, there are some things that investors should watch out for. An important aspect is stock-based compensation expense, that was almost $9 million in this quarter, while the acquisition expenses amounted to $7.3 million. There is a big difference between both these expenses – the first one is something that investors will see every quarter, but the second one is more of a rarity, so it’s impact will also be for a short term only. In other words, investors should watch out for this stock-based compensation, and should ensure that it does not go too high.

Currently, this company boasts of more than 130 patents, and three billion plus mobile subscribers from around the world. Many of its customers include leading companies such as Verizon, AT&T, Charter Communications, Vodafone, Comcast, and Time Warner Cable in the communications sector, Goldman Sachs and Softbank in the financial sector, and OEM companies like Microsoft, Apple, and Samsung. Other than these big names, Synchronoss caters to almost 300 of the Fortune 500 companies.

Going forward, this client-base is only going to increase. In fact, Synchronoss is likely to be a good bet for investors, as it is focusing more on its cloud business, and through it, plans to increase its sales and revenue multi-fold. It is also planning to come up with more cloud-based solutions, and expand the features on its existing products, to meet the growing demands of its customers.

This company has three broad lines of business – universal ID, secure mobility, and personal cloud. It  is headquartered in Bridgewater, New Jersey, and trades under the stock symbol SNCR on the New York Stock Exchange.

The post Synchronoss Impresses Investors appeared first on Cloud News Daily.