Why Synchronoss Technologies Stock Popped Today

What happened

Shares of Synchronoss Technologies (NASDAQ: SNCR) climbed 11% on Thursday after the cloud-based enterprise computing and messaging company's senior management held an investor day event in New York City outlining its longer-term growth, sales, and capital-allocation strategies, and reiterated its full-year outlook.

So what

Management started by highlighting the improved trends we saw begin to unfold with Synchronoss' strong first-quarter 2019 results early last month. These include a return to top-line growth (revenue rose 5.3% to $88.1 million), and narrowed adjusted net losses ($0.36 per share in Q1, compared with a $0.54-per-share loss a year earlier) as its various cloud, digital experience, messaging, and Internet of Things platform products gain momentum.

Synchronoss also outlined plans to invest $10 million to $15 million toward operational efficiencies across its organization, which it believes could yield as much as $65 million in annualized savings and productivity improvements within the next three years.

Finally, Synchronoss reiterated its outlook for 2019 revenue in the range of $340 million to $355 million, with adjusted EBITDA of $30 million to $40 million (after investing $20 million to $25 million toward capturing future growth opportunities).

Now what

To be clear, as of this writing there are no new analyst upgrades, press releases, or Securities and Exchange Commission filings following the event that might otherwise have propelled the stock higher. But it seems the market is obviously encouraged by the positive tone and optimism surrounding Synchronoss' presentation -- particularly given global macroeconomic concerns that have arisen since its quarterly update a month ago.

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Steve Symington has no position in any of the stocks mentioned. The Motley Fool recommends Synchronoss Technologies. The Motley Fool has a disclosure policy.