Synacor still coming up short on AT&T revenue projections

Pixabay
Despite the slower-than-expected AT&T sales, Synacor enjoyed its best revenue quarter ever on the strength of its publisher advertising and software businesses. (Pixabay)

Buffalo, New York-based telecom vendor Synacor reported record fourth quarter revenue of $46 million, up 32% year over year. 

But the company continues to suffer from the slow sales ramp up of its 2016 deal with AT&T, for which Synacor was hired to deliver a series of customer experience portals. 

The deal was expected to generate $100 million in annual revenue from 2017 through 2019. However, only $25 million showed up on the books in 2017.

FREE DAILY NEWSLETTER

Like this story? Subscribe to FierceVideo!

The Video industry is an ever-changing world where big ideas come along daily. Cable, Media and Entertainment, Telco, and Tech companies rely on FierceVideo for the latest news, trends, and analysis on video creation and distribution, OTT delivery technologies, content licensing, and advertising strategies. Sign up today to get news and updates delivered to your inbox and read on the go.

RELATED: Synacor: Simplified authentication can reduce TV Everywhere abandonment rates by 80%, but challenges remain

"Clearly, this forecast is below the $100 million annual revenue target that AT&T and Synacor announced when we first discussed the portal contract and was a critical element of Synacor's $300 million 2019 target,” said Himesh Bhise, president and CEO of Synacor, in the company’s fourth-quarter earnings call with investment analysts last week. (Transcript courtesy of Seeking Alpha.)

“Nevertheless, it is important to remember that AT&T still represents an important customer win and business driver for Synacor,” Bhise added. “Beyond giving us desktop scale and broadening our offerings into the growing mobile market, it reflects market validation of the quality of our platform and enables us to continue to advance our products with one of the nation's largest telecommunications companies. And on an additional note, it yields significant incremental profitability for the company going forward now that the launch investment is behind us.”

Despite the slower-than-expected AT&T sales, Synacor enjoyed its best revenue quarter ever on the strength of its publisher advertising and software businesses.

“During the past 3.5 years, we have been pivoting Synacor away from a declining desktop search monetization business,” Bhise said. 

Read more on

Suggested Articles

When PlayStation Vue goes dark on Jan. 30, 2020, it will leave PlayStation owners without an option for streaming live TV on their game consoles.

AT&T is including the 2019-2020 season of NBA League Pass Premium for customers who switch from their TV provider to AT&T TV.

Tubi, a free, ad-supported video on demand service, is now available to stream on Amazon Echo Show devices.