Synchronoss (NASDAQ:SNCR) has gotten off to a great start in 2013, with the shares up a hefty 41%. Then again, the company operates a mobile platform for companies like AT&T (NYSE:T) and Verizon (NYSE:VZ).
So to get an update on things, I recently talked to the company’s CEO, Stephen Waldis. Here’s what he had to say:
Q: Why the importance of buying NewBay from BlackBerry (NASDAQ:BBRY)?
A: Our Personal Cloud Strategy is a private label solution for providers. It allows mobile customers to easily store photos, videos and so on. So with the NewBay deal, we got some expansion into new customers as well as new technologies.
Going forward, a big driver will be the growth in shared data plans. Often, these cover different operating systems like Google’s Android, Apple’s iOS and Microsoft’s Windows 8. And yes, we are the only system that can operate across these platforms. This is a big benefit for getting a more personalized experience, which should improve retention.
Another big advantage is that the providers are very trusted, especially with data. This will help grow cloud services as well.
Q: Mobile has not been easy to monetize. What is the model here?
A: It is based on the freemium approach. This means that some of the storage will be free and then there will be payments based on the amounts used.
But there is another opportunity. Keep in mind that we sync 11 million users a day for cloud content. Because of this, we have lots of connections, such as with address books and messages.
We think this could be a big opportunity for advertisers to provide relevant ads. This is because we can analyze the social graph and subscriber data to find trends. For example, we can do something like base an ad on someone’s travel plans or an upcoming birthday or holiday.
Q: Your company has certainly evolved over the years. Lessons?
A: We started as an activation business. And the iPhone put Synchronoss on the map.
But we recognized that over time, the number of subscribers and upgrades would slow down. We are already seeing providers back off of subsidies.
So we looked at our business to find new ways to grow. To this end, we saw the importance of serving the existing customer base.
Because of this, we made acquisitions in technology and instantly turned them into our distribution. It’s been an effective way to keep up our growth.
We believe that keeping customers and having them buy more is key — and that the Personalized Cloud makes that happen.