Synacor Reports Fourth Quarter and Fiscal 2012 Results

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Wednesday, February 20th 2013
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  • Quarterly revenue of $32.2 million, an increase of 11% year-over-year
  • Annual revenue of $122.0 million, an increase of 34% year-over-year
  • Quarterly adjusted EBITDA of $3.5 million vs. $2.7 million in prior year
  • Annual adjusted EBITDA of $11.6 million vs. $7.6 million in prior year

BUFFALO, N.Y., Feb. 20, 2013 (GLOBE NEWSWIRE) -- Synacor, Inc. (Nasdaq:SYNC), leading provider of next-gen startpages, TV Everywhere solutions, and cloud-based Identity Management (IDM) services across multiple devices for cable, satellite, telecom and consumer electronics companies, today announced its financial results for the fourth quarter and fiscal year 2012.

"We are proud of Synacor's achievements and growth in 2012, as we experienced record numbers of search queries, advertising impressions, and unique visitors. This engagement produced record revenue and adjusted EBITDA for the year," said Synacor CEO Ron Frankel. "Our success was also evident from our many accomplishments in 2012 including our initial public offering, the acquisition of Carbyn, the launch of Cloud ID and Social Login, and major customer wins. We are very proud of our employees, customers and partners. While we remain passionate about our long-term opportunities, we expect 2013 to be transitional.

Q4 2012 Financial Results

Revenue: For the fourth quarter of 2012, total revenue was $32.2 million, an 11% increase over $28.9 million in the fourth quarter of 2011. Search and display advertising revenue was $27.1 million, a 13% increase compared to $24.0 million in the fourth quarter of 2011. Subscription-based revenue was $5.1 million, a 4% increase compared to $4.9 million in the fourth quarter of 2011.

Net Income: For the fourth quarter of 2012, net income was $0.8 million. This compared to $7.7 million in the fourth quarter of 2011, which included a $6.1 million income tax benefit for the reduction of our deferred tax asset valuation allowance. Diluted earnings per share, or EPS, was $0.03. Net income includes stock-based compensation expense of $0.5 million, or $0.02 per share, in the fourth quarter of 2012, as compared to $0.3 million, or $0.01 per share, in the fourth quarter of 2011. The diluted EPS calculation for the fourth quarter of 2012 is based on 28.6 million weighted average fully diluted common shares outstanding. The diluted EPS calculation for the fourth quarter of 2011 was based on 23.0 million shares.

Adjusted EBITDA: For the fourth quarter of 2012, adjusted EBITDA, which excludes stock-based compensation expense, was $3.5 million, or 11% of revenue, compared to $2.7 million, or 9% of revenue, in the fourth quarter of 2011.

Key Business Metrics: For the fourth quarter of 2012, Synacor averaged 20.3 million unique visitors per month, an increase of 8% from 18.7 million unique visitors in the fourth quarter of 2011. Search queries were 225 million for the fourth quarter of 2012, a decrease of 8% from 245 million in the fourth quarter of 2011. Advertising impressions grew 41% to 11.7 billion, compared to 8.3 billion in the fourth quarter of 2011.

Cash: For the fourth quarter of 2012, Synacor generated $4.8 million in cash from operating activities, compared to $4.7 million in the fourth quarter of 2011.

Fiscal 2012 Financial Results

Revenue: For fiscal 2012, total revenue was $122.0 million, a 34% increase over $91.1 million in fiscal 2011. Search and display advertising revenue was $101.6 million, a 41% increase compared to $72.1 million in fiscal 2011. Subscription-based revenue was $20.4 million, an 8% increase compared to $19.0 million in fiscal 2011.

Net Income: For fiscal 2012, net income was $3.8 million. This compared to $9.9 million in fiscal 2011, which included a $6.1 million income tax benefit for the reduction of our deferred tax asset valuation allowance. Diluted earnings per share, or EPS, was $0.14. Net income includes stock-based compensation expense of $2.0 million, or $0.07 per share, in fiscal 2012, as compared to $0.9 million, or $0.04 per share, in fiscal 2011. The diluted EPS calculation for fiscal 2012 is based on 28.1 million weighted average fully diluted common shares outstanding. The diluted EPS calculation for fiscal 2011 was based on 22.0 million shares.

Adjusted EBITDA: For fiscal 2012, adjusted EBITDA, which excludes stock-based compensation expense, was $11.6 million, or 10% of revenue, compared to $7.6 million, or 8% of revenue, in fiscal 2011.

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