Synacor (SYNC) Update

Synacor reported Q1 earnings. No positive impact from the ATT deal yet, and it looks like we will have to wait another quarter to see anything significant. Revenues came in at $26.5 million compared to $30.25 last year and they lost about $2 million on a Non-GAAP basis and $6.7 million on a GAAP basis. Adjusted EBITDA was a $3.3 million loss. Q2 guidance is revenue of $28 to $30 million, a GAAP loss of $3.2 to $5 million and an adjusted EBITDA loss of $1.5 million to breakeven. Not too exciting for sure. But, they are projecting revenues for the year of $160 to $170 million which means second half revenues should come in at about $103 million. They are projecting an adjusted EBITDA profit of $6 to $10 million which means positive EBITDA in the second half of about $9 million to $13 million. My valuation fell for Q1 to $4.49 from $5.66, but if they hit their guidance for the second half of 2017, my valuation could exceed $9 a share and we have a growth story on our hands.



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