Synacor Nets HBO Go Authentication Deal

Also pushes ahead with big AT&T portal services deal
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Synacor has landed a deal to be the authentication partner for HBO Go, the premium programmer’s TV Everywhere service, company CEO Himesh Bhise announced Wednesday on the company’s Q2 earnings call.

Synacor, which was on board for HBO’s season six premiere of Game of Thrones in April, is talking to other content providers about similar initiatives, Bhise said.

He noted that Synacor’s Cloud ID authentication platform is used by providers serving 75 million pay TV homes, and reiterated that the company is “in alignment” with CTAM’s recommended practices and guidelines for in-home authentication and single sign-on. Synacor is also backing Apple’s new single sign-on program.

For Q2, Synacor posted revenue of $30.5 million, at the higher end of its guidance, and up 23% from the year-ago period, paired with a net loss of $2.8 million that reflects initial investments for Synacor’s new deal with AT&T for the management of desktop and mobile portal services.

Bhise said Synacor has been hiring “two to three people every week over the last 12 weeks to support the AT&T contract, and that it invested about $1.5 million in operating expenses (out of an announced $10 million total investment) in Q2 against those activities.

“We have leased equipment and have completed our initial data center build-out,” he said, adding that Synacor is moving ahead on a deal that’s expected to generate revenue of $100 million per year after full deployment.

Synacor ended Q2 with $16.3 million of cash and cash equivalents, up from $15.7 million at the end of the previous quarter.

Looking ahead, Synacor expects Q3 revenue of $29 million to $31 million, and net loss of $5.2 million to $6.5 million, and reiterated full year 2016 revenues of $130 million to $135 million, and a net loss of $10.5 million to $12.6 million.