Synacor Notches OTT Win - Multichannel

Synacor Notches OTT Win

‘Regional’ Provider to Offer In-Home/Out-of-Home Service
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Synacor has won a deal to supply the backend platform for an over-the-top service from a “regional full service communications” provider.

The resulting service to be offered in-home and out-of-home, CEO Himesh Bhise said Thursday on Synacor's third-quarter earnings call.

Synacor didn’t reveal the name of the company that will use its platform to deliver the OTT service. Its announced partners include Armstrong, Atlantic Broadband, Burlington Telecom, Cable One, Blue Ridge Communications, Charter, Cincinnati Bell, Grande Communications, EPB Fiber Optics, Consolidated Communications, Suddenlink Communications, WideOpenWest, Verizon, Windstream, GVTC Communications, and CenturyLink Communications, which is nearing the launch of OTT trials.

The OTT deal enters play as Synacor shored up its multiscreen video strategy through the acquisition of NimbleTV, a partnership with Siemens and an integration with thePlatform, the Comcast-owned online video company.

“Multiplatform video continues to be an important area of focus for our customers and we're excited that we will be making additional customer announcements in the coming months,” Bhise said.

Synacor, which recently acquired email and messaging company Zimbra, posted Q3 revenues of $26.4 million, up 1% year-on-year, and a net loss of $900,000, narrowed from a loss of $2.6 million. Q3 search and ad revenue dropped 6%, though standalone ad revenue rose 17%. Subscription revenue rose 23%, to $7 million.

Looking ahead, the company upped revenue guidance for full-year 2015 to $107 million to $109 million, versus $102 million to $108 million, and increased its adjusted EBITDA guidance range to $5.5 million to $6.5 million, compared to $4 million to $6 million.

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