Thryv Grows SaaS Profitability in the Second Quarter, Raises Full-Year 2023 Guidance

Company achieves 20% SaaS revenue growth

Company's Q2 SaaS Adjusted EBITDA exceeds guidance range by $5 million

Full Year 2023 SaaS Revenue and Adjusted EBITDA guidance raised

Launches free, industry-first offering, Thryv Command Center, to drive product-led growth strategy

Thryv Holdings, Inc. (NASDAQ:THRY) (“Thryv” or the “Company”), the provider of Thryv®, the leading small business software platform, reported SaaS revenue growth of 20% year-over-year in the second quarter of 2023, while SaaS EBITDA margins expanded to 10%.

“We delivered solid second quarter results,” said Joe Walsh, Chairman and CEO. “We have been focused on driving profitable SaaS growth - and we have a strong operating framework in place for this to continue. Our consistent, profitable SaaS growth is the result of leveraging our sales channels. We also continue to demonstrate that our traditional sales channels, selling SaaS to our existing Marketing Services customers, and our client referral initiatives, drive significant margin expansion and profitability. Together, this has improved our SaaS EBITDA margins by 10% sequentially.”

“We are continuing the evolution of our Thryv platform and are laser-focused on delivering solutions that solve problems that small businesses face,” Walsh continued. “We have released a beta version of Thryv Command Center, an industry-first offering that will be a core element to our product-led growth initiative. Thryv Command Center can be downloaded for free to all small business users, and they can upgrade to a more powerful and advanced paid version as their needs warrant. Thryv Command Center centralizes all communication, from email to text to phone and video, into one inbox. With all of our centers, users can upgrade as they are ready. We are excited about this new center, which reinforces our commitment to innovation and layers a product-led growth onto our sales-led motion.”

With this launch, the Thryv platform has been re-architected, providing small business owners a modular, easily expandable and customizable user experience that meets their needs. It creates a strong new customer acquisition channel and a clear path to sustained Net Dollar Retention improvement. This launch continues the roll out of new centers, such as the recently announced Marketing Center.

“As we continue to advance our strategy and look to the rest of 2023, we are raising our full-year guidance for SaaS revenue and EBITDA,” said Paul Rouse, Chief Financial Officer. "We are pleased with our results this quarter. We believe we have a sound strategy for accelerating profitable growth in the SaaS business for the balance of the year and into the future.”

Second Quarter 2023 Financial Highlights:

Revenue

  • Total SaaS1 revenue was $62.5 million, a 19.6% increase year-over-year
  • Total Marketing Services2 revenue was $189.0 million, a 32.9% decrease year-over-year
  • Consolidated total revenue was $251.4 million, a decrease of 24.7% year-over-year
  • Consolidated net income was $16.0 million, or $0.43 per diluted share, compared to net income of $58.0 million, or $1.61 per diluted share, for the second quarter of 2022
  • Consolidated Adjusted EBITDA was $69.4 million, representing an Adjusted EBITDA margin of 27.6%
  • Total SaaS Adjusted EBITDA was $6.2 million, representing an Adjusted EBITDA margin of 10.0%.
  • Total Marketing Services Adjusted EBITDA was $63.2 million, representing an Adjusted EBITDA margin of 33.5%
  • Consolidated Gross Profit was $160.1 million
  • Consolidated Adjusted Gross Profit3 was $167.9 million
  • SaaS Gross Profit was $39.2 million, representing a Gross Profit Margin of 62.8%
  • SaaS Adjusted Gross Profit was $40.7 million, representing an Adjusted Gross Profit Margin of 65.1%

SaaS Metrics

  • SaaS monthly Average Revenue per Unit (“ARPU”)4 increased to $377 for the second quarter of 2023, compared to $358 in the second quarter of 2022
  • Total SaaS clients increased 12% year-over-year to 56 thousand for the second quarter of 2023
  • Seasoned Net Dollar Retention5 was 89% at the end of the second quarter of 2023
  • SaaS monthly active users6 increased 18% year-over-year to 45 thousand active users for the second quarter of 2023
  • ThryvPay total payment volume was $60 million, an increase of 59% year-over-year
_____________________________

1 Total SaaS revenue in the U.S. and International segments was $60.2 million and $2.3 million for the three months ended June 30, 2023, respectively.

2 Total Marketing Services revenue in the U.S. and International segments was $137.7 million and $51.3 million for the three months ended June 30, 2023, respectively.

3 Defined as Gross profit adjusted to exclude the impact of depreciation and amortization expense and stock-based compensation expense.

4 Defined as total client billings for a particular month divided by the number of clients that have one or more revenue-generating solutions in that same month.

5 Seasoned Net Dollar Retention is defined as net dollar retention excluding clients acquired over the previous 12 months.

6 Defined as a client with one or more users who log into our SaaS solutions at least once during the calendar month.

Outlook

Based on information available as of August 3, 2023, Thryv is issuing guidance7 for the third quarter of 2023 and full year 2023 as indicated below:

 

 

 

3rd Quarter

 

Full Year

(in millions)

 

 

2023

 

2023

SaaS Revenue

 

 

$66.5 - $67.0

 

$258 to $260

SaaS Adjusted EBITDA

 

 

$(3.5) - $(4.0)

 

$7 - $8

 

 

3rd Quarter

 

4th Quarter

 

Full Year

(in millions)

 

2023

 

2023

 

2023

Marketing Services Revenue

 

$114 - $118

 

$166 - $170

 

$653 - $663

Marketing Services Adjusted EBITDA

 

 

 

 

 

$187 - $190

Earnings Conference Call Information

Thryv will host a conference call on Thursday, August 3, 2023 at 8:30 a.m. (Eastern Time) to discuss the Company's second quarter 2023 results.

For analysts to register for this conference call, please use this link. After registering, a confirmation email will be sent, including dial-in details and a unique code for entry. We recommend registering a day in advance or at a minimum thirty minutes prior to the start of the call. To listen to the webcast, please use this link or visit Thryv's Investor Relations website at investor.thryv.com. A live webcast will also be available on the Investor Relations section of the Company's website at investor.thryv.com.

If you are unable to participate in the conference call, a replay will be available. To access the replay, please dial (800) 770-2030 or (647) 362-9199 and enter “87769.”

____________________________

7 These statements are forward-looking and actual results may materially differ. Refer to the “Forward-Looking Statements” section below for information on the factors that could cause our actual results to materially differ from these forward-looking statements.

Final Results

 

Thryv Holdings, Inc. and Subsidiaries

Consolidated Statements of Operations and Comprehensive Income (Loss)

 

 

Three Months Ended

 

Six Months Ended

 

June 30,

 

June 30,

(in thousands, except share and per share data)

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

Revenue

$

251,421

 

 

$

333,995

 

 

$

496,976

 

 

$

642,370

 

Cost of services

 

91,336

 

 

 

106,013

 

 

 

182,083

 

 

 

216,532

 

Gross profit

 

160,085

 

 

 

227,982

 

 

 

314,893

 

 

 

425,838

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

Sales and marketing

 

75,683

 

 

 

91,813

 

 

 

152,026

 

 

 

185,768

 

General and administrative

 

53,695

 

 

 

52,650

 

 

 

101,375

 

 

 

104,844

 

Impairment charges

 

 

 

 

222

 

 

 

 

 

 

222

 

Total operating expenses

 

129,378

 

 

 

144,685

 

 

 

253,401

 

 

 

290,834

 

 

 

 

 

 

 

 

 

Operating income

 

30,707

 

 

 

83,297

 

 

 

61,492

 

 

 

135,004

 

Other income (expense):

 

 

 

 

 

 

 

Interest expense

 

(16,292

)

 

 

(13,756

)

 

 

(32,780

)

 

 

(26,864

)

Interest expense, related party

 

 

 

 

(896

)

 

 

 

 

 

(2,655

)

Other components of net periodic pension (cost) benefit

 

(1,865

)

 

 

9,153

 

 

 

(1,986

)

 

 

9,223

 

Other income (expense)

 

 

 

 

2,404

 

 

 

(366

)

 

 

8,626

 

Income before income tax benefit (expense)

 

12,550

 

 

 

80,202

 

 

 

26,360

 

 

 

123,334

 

Income tax benefit (expense)

 

3,428

 

 

 

(22,200

)

 

 

(1,068

)

 

 

(31,821

)

Net income

$

15,978

 

 

$

58,002

 

 

$

25,292

 

 

$

91,513

 

Other comprehensive income (loss):

 

 

 

 

 

 

 

Foreign currency translation adjustment, net of tax

 

(302

)

 

 

(10,139

)

 

 

(2,490

)

 

 

(4,691

)

Comprehensive income

$

15,676

 

 

$

47,863

 

 

$

22,802

 

 

$

86,822

 

 

 

 

 

 

 

 

 

Net income per common share:

 

 

 

 

 

 

 

Basic

$

0.46

 

 

$

1.69

 

 

$

0.73

 

 

$

2.68

 

Diluted

$

0.43

 

 

$

1.61

 

 

$

0.68

 

 

$

2.47

 

 

 

 

 

 

 

 

 

Weighted-average shares used in computing basic and diluted net income per common share:

 

 

 

 

 

 

 

Basic

 

34,575,338

 

 

 

34,250,706

 

 

 

34,625,561

 

 

 

34,205,593

 

Diluted

 

36,863,295

 

 

 

36,137,989

 

 

 

36,956,933

 

 

 

37,048,087

 

Thryv Holdings, Inc. and Subsidiaries

Consolidated Balance Sheets

 

(in thousands, except share data)

June 30, 2023

 

December 31, 2022

Assets

 

 

 

Current assets

 

 

 

Cash and cash equivalents

$

15,245

 

 

$

16,031

 

Accounts receivable, net of allowance of $14,399 in 2023 and $14,766 in 2022

 

243,893

 

 

 

284,698

 

Contract assets, net of allowance of $28 in 2023 and $33 in 2022

 

1,746

 

 

 

2,583

 

Taxes receivable

 

3,640

 

 

 

11,553

 

Prepaid expenses

 

29,318

 

 

 

25,092

 

Indemnification asset

 

 

 

 

26,495

 

Other current assets

 

15,557

 

 

 

11,864

 

Total current assets

 

309,399

 

 

 

378,316

 

Fixed assets and capitalized software, net

 

38,569

 

 

 

42,334

 

Goodwill

 

569,780

 

 

 

566,004

 

Intangible assets, net

 

31,321

 

 

 

34,715

 

Deferred tax assets

 

122,548

 

 

 

113,859

 

Other assets

 

29,610

 

 

 

42,649

 

Total assets

$

1,101,227

 

 

$

1,177,877

 

 

 

 

 

Liabilities and Stockholders' Equity

 

 

 

Current liabilities

 

 

 

Accounts payable

$

7,341

 

 

$

18,972

 

Accrued liabilities

 

106,606

 

 

 

126,810

 

Current portion of unrecognized tax benefits

 

22,969

 

 

 

31,919

 

Contract liabilities

 

20,136

 

 

 

41,854

 

Current portion of long-term debt

 

70,000

 

 

 

70,000

 

Other current liabilities

 

10,887

 

 

 

10,937

 

Total current liabilities

 

237,939

 

 

 

300,492

 

Term Loan, net

 

295,179

 

 

 

345,256

 

ABL Facility

 

68,278

 

 

 

54,554

 

Pension obligations, net

 

74,321

 

 

 

72,590

 

Other liabilities

 

21,184

 

 

 

22,718

 

Total long-term liabilities

 

458,962

 

 

 

495,118

 

Commitments and contingencies

 

 

 

Stockholders' equity

 

 

 

Common stock - $0.01 par value, 250,000,000 shares authorized; 61,832,315 shares issued and 34,477,286 shares outstanding at June 30, 2023; and 61,279,379 shares issued and 34,593,837 shares outstanding at December 31, 2022

 

618

 

 

 

613

 

Additional paid-in capital

 

1,121,804

 

 

 

1,105,701

 

Treasury stock - 27,355,029 shares at June 30, 2023 and 26,685,542 shares at December 31, 2022

 

(485,730

)

 

 

(468,879

)

Accumulated other comprehensive income (loss)

 

(18,751

)

 

 

(16,261

)

Accumulated deficit

 

(213,615

)

 

 

(238,907

)

Total stockholders' equity

 

404,326

 

 

 

382,267

 

Total liabilities and stockholders' equity

$

1,101,227

 

 

$

1,177,877

 

Thryv Holdings, Inc. and Subsidiaries

Consolidated Statements of Cash Flows

 

 

Six Months Ended June 30,

(in thousands)

 

2023

 

 

 

2022

 

Cash Flows from Operating Activities

 

 

 

Net income

$

25,292

 

 

$

91,513

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

Depreciation and amortization

 

31,098

 

 

 

42,561

 

Amortization of deferred commissions

 

5,032

 

 

 

5,174

 

Amortization of debt issuance costs

 

2,721

 

 

 

2,883

 

Deferred income taxes

 

(9,135

)

 

 

(16,752

)

Provision for credit losses and service credits

 

11,580

 

 

 

13,043

 

Stock-based compensation expense

 

11,191

 

 

 

5,738

 

Other components of net periodic pension cost (benefit)

 

1,986

 

 

 

(9,223

)

Impairment charges

 

 

 

 

222

 

Gain on foreign currency exchange rates

 

(881

)

 

 

(1,622

)

Non-cash loss (gain) from the remeasurement of the indemnification asset

 

10,734

 

 

 

(887

)

Bargain purchase gain

 

 

 

 

(7,005

)

Other

 

 

 

 

1,688

 

Changes in working capital items, excluding acquisitions:

 

 

 

Accounts receivable

 

25,075

 

 

 

(10,298

)

Contract assets

 

837

 

 

 

1,793

 

Prepaid expenses and other assets

 

10,090

 

 

 

2,748

 

Accounts payable and accrued liabilities

 

(38,654

)

 

 

(29,472

)

Other liabilities

 

(29,230

)

 

 

(35,201

)

Net cash provided by operating activities

 

57,736

 

 

 

56,903

 

 

 

 

 

Cash Flows from Investing Activities

 

 

 

Additions to fixed assets and capitalized software

 

(14,016

)

 

 

(9,648

)

Acquisition of a business, net of cash acquired

 

(8,897

)

 

 

(22,777

)

Other

 

(217

)

 

 

 

Net cash (used in) investing activities

 

(23,130

)

 

 

(32,425

)

 

 

 

 

Cash Flows from Financing Activities

 

 

 

Payments of Term Loan

 

(52,500

)

 

 

(36,828

)

Payments of Term Loan, related party

 

 

 

 

(5,672

)

Proceeds from ABL Facility

 

483,473

 

 

 

488,547

 

Payments of ABL Facility

 

(469,750

)

 

 

(471,866

)

Other

 

3,826

 

 

 

4,338

 

Net cash (used in) financing activities

 

(34,951

)

 

 

(21,481

)

 

 

 

 

Effect of exchange rate changes on cash and cash equivalents

 

(240

)

 

 

(627

)

Decrease (increase) in cash and cash equivalents and restricted cash

 

(585

)

 

 

2,370

 

Cash and cash equivalents and restricted cash, beginning of period

 

18,180

 

 

 

13,557

 

Cash and cash equivalents and restricted cash, end of period

$

17,595

 

 

$

15,927

 

 

 

 

 

Supplemental Information

 

 

 

Cash paid for interest

$

29,592

 

 

$

24,915

 

Cash paid for income taxes, net

$

7,419

 

 

$

36,934

 

 

 

 

 

Non-cash investing and financing activities

 

 

 

Repurchase of Treasury stock as a result of the settlement of the indemnification asset

$

15,760

 

 

$

 

The following tables summarize the operating results of the Company's reportable segments:

 

Three Months Ended June 30,

 

Change

(in thousands)

2023 (1)

 

2022

 

Amount

 

%

Revenue

 

 

 

 

 

 

 

Thryv U.S.

 

 

 

 

 

 

 

Marketing Services

$

137,684

 

 

$

222,570

 

 

$

(84,886

)

 

(38.1

)%

SaaS

 

60,150

 

 

 

51,167

 

 

 

8,983

 

 

17.6

%

Thryv International

 

 

 

 

 

 

 

Marketing Services

 

51,279

 

 

 

59,218

 

 

 

(7,939

)

 

(13.4

)%

SaaS

 

2,308

 

 

 

1,040

 

 

 

1,268

 

 

121.9

%

Consolidated Revenue

$

251,421

 

 

$

333,995

 

 

$

(82,574

)

 

(24.7

)%

 

 

 

 

 

 

 

 

Segment Gross Profit

 

 

 

 

 

 

 

Thryv U.S.

 

 

 

 

 

 

 

Marketing Services

$

88,023

 

 

$

151,774

 

 

$

(63,751

)

 

(42.0

)%

SaaS

 

37,563

 

 

 

32,092

 

 

 

5,471

 

 

17.0

%

Thryv International

 

 

 

 

 

 

 

Marketing Services

 

32,852

 

 

 

43,627

 

 

 

(10,775

)

 

(24.7

)%

SaaS

 

1,647

 

 

 

489

 

 

 

1,158

 

 

236.8

%

Consolidated Segment Gross Profit

$

160,085

 

 

$

227,982

 

 

$

(67,897

)

 

(29.8

)%

 

 

 

 

 

 

 

 

Segment EBITDA

 

 

 

 

 

 

 

Thryv U.S.

 

 

 

 

 

 

 

Marketing Services

$

38,233

 

 

$

83,674

 

 

$

(45,441

)

 

(54.3

)%

SaaS

 

7,123

 

 

 

197

 

 

 

6,926

 

 

NM

 

Thryv International

 

 

 

 

 

 

 

Marketing Services

 

24,976

 

 

 

34,545

 

 

 

(9,569

)

 

(27.7

)%

SaaS

 

(893

)

 

 

(2,416

)

 

 

1,523

 

 

63.0

%

Consolidated Adjusted EBITDA

$

69,439

 

 

$

116,000

 

 

$

(46,561

)

 

(40.1

)%

 

(1) Thryv International includes Yellow's results of operations subsequent to the Yellow Acquisition.

 

Six Months Ended June 30,

 

Change

(in thousands)

2023 (1)

 

2022 (2)

 

Amount

 

%

Revenue

 

 

 

 

 

 

 

Thryv U.S.

 

 

 

 

 

 

 

Marketing Services

$

284,984

 

 

$

435,103

 

 

$

(150,119

)

 

(34.5

)%

SaaS

 

118,277

 

 

 

98,510

 

 

 

19,767

 

 

20.1

%

Thryv International

 

 

 

 

 

 

 

Marketing Services

 

89,605

 

 

 

106,882

 

 

 

(17,277

)

 

(16.2

)%

SaaS

 

4,110

 

 

 

1,875

 

 

 

2,235

 

 

119.2

%

Consolidated Revenue

$

496,976

 

 

$

642,370

 

 

$

(145,394

)

 

(22.6

)%

 

 

 

 

 

 

 

 

Segment Gross Profit

 

 

 

 

 

 

 

Thryv U.S.

 

 

 

 

 

 

 

Marketing Services

$

181,197

 

 

$

288,284

 

 

$

(107,087

)

 

(37.1

)%

SaaS

 

73,523

 

 

 

61,501

 

 

 

12,022

 

 

19.5

%

Thryv International

 

 

 

 

 

 

 

Marketing Services

 

57,332

 

 

 

75,343

 

 

 

(18,011

)

 

(23.9

)%

SaaS

 

2,841

 

 

 

710

 

 

 

2,131

 

 

300.1

%

Consolidated Segment Gross Profit

$

314,893

 

 

$

425,838

 

 

$

(110,945

)

 

(26.1

)%

 

 

 

 

 

 

 

 

Segment EBITDA

 

 

 

 

 

 

 

Thryv U.S.

 

 

 

 

 

 

 

Marketing Services

$

79,497

 

 

$

150,069

 

 

$

(70,572

)

 

(47.0

)%

SaaS

 

8,245

 

 

 

(4,167

)

 

 

12,412

 

 

297.9

%

Thryv International

 

 

 

 

 

 

 

Marketing Services

 

42,385

 

 

 

58,642

 

 

 

(16,257

)

 

(27.7

)%

SaaS

 

(2,219

)

 

 

(4,827

)

 

 

2,608

 

 

54.0

%

Consolidated Adjusted EBITDA

$

127,908

 

 

$

199,717

 

 

$

(71,809

)

 

(36.0

)%

(1)

Thryv International includes Yellow's results of operations subsequent to the Yellow Acquisition.

(2)

Thryv U.S. includes Vivial's results of operations subsequent to the Vivial Acquisition.

Non-GAAP Measures

Our results included in this press release include Adjusted EBITDA, Adjusted EBITDA margin and Adjusted Gross Profit, which are not presented in accordance with U.S. generally accepted accounting principles (“GAAP”). These non-GAAP measures are presented for supplemental informational purposes only and are not intended to be considered in isolation or as a substitute for, or superior to, financial information prepared and presented in accordance with GAAP. Please refer to the supplemental information presented in the tables below for a reconciliation of Adjusted EBITDA to Net income and Adjusted Gross Profit to Gross profit. Both Net income and Gross profit are the most comparable GAAP financial measure to Adjusted EBITDA and Adjusted Gross Profit, respectively. Adjusted EBITDA margin is defined as Adjusted EBITDA divided by revenue.

We believe that these non-GAAP financial measures provide useful information about our financial performance, enhance the overall understanding of our past performance and allow for greater transparency with respect to important metrics used by our management for financial and operational decision-making. We believe that these measures provide additional tools for investors to use in comparing our core financial performance over multiple periods with other companies in our industry. However, it is important to note that the particular items we exclude from, or include in, our non-GAAP financial measures may differ from the items excluded from, or included in, similar non-GAAP financial measures used by other companies in the same industry.

The following is a reconciliation of Adjusted EBITDA to its most directly comparable GAAP measure, Net income:

 

Three Months Ended June 30,

 

Six Months Ended June 30,

(in thousands)

 

2023

 

 

 

2022

 

 

 

2023

 

 

2022

 

Reconciliation of Adjusted EBITDA

 

 

 

 

 

 

 

Net income

$

15,978

 

 

$

58,002

 

 

$

25,292

 

$

91,513

 

Interest expense

 

16,292

 

 

 

14,652

 

 

 

32,780

 

 

29,519

 

Depreciation and amortization expense

 

15,667

 

 

 

20,592

 

 

 

31,098

 

 

42,561

 

Stock-based compensation expense (1)

 

5,798

 

 

 

3,810

 

 

 

11,191

 

 

5,738

 

Restructuring and integration expenses (2)

 

3,921

 

 

 

4,822

 

 

 

9,261

 

 

10,649

 

Income tax (benefit) expense

 

(3,428

)

 

 

22,200

 

 

 

1,068

 

 

31,821

 

Transaction costs (3)

 

 

 

 

1,616

 

 

 

373

 

 

3,336

 

Other components of net periodic pension cost (benefit) (4)

 

1,865

 

 

 

(9,153

)

 

 

1,986

 

 

(9,223

)

Non-cash loss (gain) from remeasurement of indemnification asset (5)

 

11,490

 

 

 

(487

)

 

 

10,734

 

 

(887

)

Impairment charges

 

 

 

 

222

 

 

 

 

 

222

 

Other (6)

 

1,856

 

 

 

(276

)

 

 

4,125

 

 

(5,532

)

Adjusted EBITDA

$

69,439

 

 

$

116,000

 

 

$

127,908

 

$

199,717

 

(1)

We record stock-based compensation expense related to the amortization of grant date fair value of the Company’s stock-based compensation awards.

(2)

For the three and six months ended June 30, 2023 and 2022, expenses relate to periodic efforts to enhance efficiencies and reduce costs, and include severance benefits, and costs associated with abandoned facilities and system consolidation.

(3)

Expenses related to the Yellow acquisition, Vivial acquisition and other transaction costs.

(4)

Other components of net periodic pension cost (benefit) is from our non-contributory defined benefit pension plans that are currently frozen and incur no additional service costs. The most significant component of Other components of net periodic pension cost (benefit) relates to periodic mark-to-market pension remeasurement.

(5)

In connection with the YP Acquisition, the seller indemnified us for future potential losses associated with certain federal and state tax positions taken in tax returns filed by the seller prior to the acquisition date.

(6)

Other primarily represents foreign exchange-related expense. Additionally, during the six months ended June 30, 2022, Other includes the bargain purchase gain as a result of the Vivial Acquisition.

The following tables set forth reconciliations of Adjusted Gross Profit and Adjusted Gross Margin, to their most directly comparable GAAP measures, Gross profit and Gross margin:

 

Three Months Ended June 30, 2023

 

Thryv U.S.

 

Thryv International

 

 

(in thousands)

Marketing Services

 

SaaS

 

Marketing Services

 

SaaS

 

Total

Reconciliation of Adjusted Gross Profit

 

 

 

 

 

 

 

 

 

Gross profit

$

88,023

 

 

$

37,563

 

 

$

32,852

 

 

$

1,647

 

 

$

160,085

 

Plus:

 

 

 

 

 

 

 

 

 

Depreciation and amortization expense

 

2,885

 

 

 

1,261

 

 

 

3,323

 

 

 

155

 

 

 

7,624

 

Stock-based compensation expense

 

119

 

 

 

54

 

 

 

 

 

 

 

 

 

173

 

Adjusted Gross Profit

$

91,027

 

 

$

38,878

 

 

$

36,175

 

 

$

1,802

 

 

$

167,882

 

Gross Margin

 

63.9

%

 

 

62.4

%

 

 

64.1

%

 

 

71.4

%

 

 

63.7

%

Adjusted Gross Margin

 

66.1

%

 

 

64.6

%

 

 

70.5

%

 

 

78.1

%

 

 

66.8

%

 

Three Months Ended June 30, 2022

 

Thryv U.S.

 

Thryv International

 

 

(in thousands)

Marketing Services

 

SaaS

 

Marketing Services

 

SaaS

 

Total

Reconciliation of Adjusted Gross Profit

 

 

 

 

 

 

 

 

 

Gross profit

$

151,774

 

 

$

32,092

 

 

$

43,627

 

 

$

489

 

 

$

227,982

 

Plus:

 

 

 

 

 

 

 

 

 

Depreciation and amortization expense

 

4,393

 

 

 

1,012

 

 

 

3,666

 

 

 

66

 

 

 

9,137

 

Stock-based compensation expense

 

105

 

 

 

26

 

 

 

 

 

 

 

 

 

131

 

Adjusted Gross Profit

$

156,272

 

 

$

33,130

 

 

$

47,293

 

 

$

555

 

 

$

237,250

 

Gross Margin

 

68.2

%

 

 

62.7

%

 

 

73.7

%

 

 

47.0

%

 

 

68.3

%

Adjusted Gross Margin

 

70.2

%

 

 

64.7

%

 

 

79.9

%

 

 

53.4

%

 

 

71.0

%

 

Six Months Ended June 30, 2023

 

Thryv U.S.

 

Thryv International

 

 

(in thousands)

Marketing Services

 

SaaS

 

Marketing Services

 

SaaS

 

Total

Reconciliation of Adjusted Gross Profit

 

 

 

 

 

 

 

 

 

Gross profit

$

181,197

 

 

$

73,523

 

 

$

57,332

 

 

$

2,841

 

 

$

314,893

 

Plus:

 

 

 

 

 

 

 

 

 

Depreciation and amortization expense

 

5,803

 

 

 

2,402

 

 

 

6,102

 

 

 

300

 

 

 

14,607

 

Stock-based compensation expense

 

222

 

 

 

100

 

 

 

 

 

 

 

 

 

322

 

Adjusted Gross Profit

$

187,222

 

 

$

76,025

 

 

$

63,434

 

 

$

3,141

 

 

$

329,822

 

Gross Margin

 

63.6

%

 

 

62.2

%

 

 

64.0

%

 

 

69.1

%

 

 

63.4

%

Adjusted Gross Margin

 

65.7

%

 

 

64.3

%

 

 

70.8

%

 

 

76.4

%

 

 

66.4

%

 

Six Months Ended June 30, 2022

 

Thryv U.S.

 

Thryv International

 

 

(in thousands)

Marketing Services

 

SaaS

 

Marketing Services

 

SaaS

 

Total

Reconciliation of Adjusted Gross Profit

 

 

 

 

 

 

 

 

 

Gross profit

$

288,284

 

 

$

61,501

 

 

$

75,343

 

 

$

710

 

 

$

425,838

 

Plus:

 

 

 

 

 

 

 

 

 

Depreciation and amortization expense

 

8,788

 

 

 

1,991

 

 

 

8,032

 

 

 

142

 

 

 

18,953

 

Stock-based compensation expense

 

166

 

 

 

41

 

 

 

 

 

 

 

 

 

207

 

Adjusted Gross Profit

$

297,238

 

 

$

63,533

 

 

$

83,375

 

 

$

852

 

 

$

444,998

 

Gross Margin

 

66.3

%

 

 

62.4

%

 

 

70.5

%

 

 

37.9

%

 

 

66.3

%

Adjusted Gross Margin

 

68.3

%

 

 

64.5

%

 

 

78.0

%

 

 

45.4

%

 

 

69.3

%

Supplemental Financial Information

The following supplemental financial information provides Revenue, Adjusted EBITDA and Adjusted EBITDA Margin by (i) Marketing Services businesses in the U.S., International and in Total and (ii) SaaS businesses in the U.S., International and in Total. Total SaaS Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP financial measures. Total Marketing Services Adjusted EBITDA and Adjusted EBITDA margin are also non-GAAP financial measures. These non-GAAP financial measures are presented for supplemental informational purposes only and are not intended to be considered in isolation or as a substitute for, or superior to, financial information prepared and presented in accordance with GAAP. Please refer to the supplemental information presented in the tables below for a reconciliation of these non-GAAP financial measures to the corresponding segment financial measures presented in accordance with GAAP.

We believe that these non-GAAP financial measures provide useful information about our global SaaS and Marketing Services financial performance, enhance the overall understanding of our global SaaS and Marketing Services past financial performance and allow for greater transparency with respect to important metrics used by our management for financial and operational decision-making. We believe that these measures provide additional tools for investors to use in comparing our core financial performance over multiple periods.

 

Three Months Ended June 30, 2023

(in thousands)

Marketing Services

 

SaaS

 

U.S.

 

International

 

Total

 

U.S.

 

International

 

Total

Revenue

$

137,684

 

 

$

51,279

 

 

$

188,963

 

 

$

60,150

 

 

$

2,308

 

 

$

62,458

 

Adjusted EBITDA

 

38,233

 

 

 

24,976

 

 

 

63,209

 

 

 

7,123

 

 

 

(893

)

 

 

6,230

 

Adjusted EBITDA Margin

 

27.8

%

 

 

48.7

%

 

 

33.5

%

 

 

11.8

%

 

 

(38.7

)%

 

 

10.0

%

 

Three Months Ended June 30, 2022

(in thousands)

Marketing Services

 

SaaS

 

U.S.

 

International

 

Total

 

U.S.

 

International

 

Total

Revenue

$

222,570

 

 

$

59,218

 

 

$

281,788

 

 

$

51,167

 

 

$

1,040

 

 

$

52,207

 

Adjusted EBITDA

 

83,674

 

 

 

34,545

 

 

 

118,219

 

 

 

197

 

 

 

(2,416

)

 

 

(2,219

)

Adjusted EBITDA Margin

 

37.6

%

 

 

58.3

%

 

 

42.0

%

 

 

0.4

%

 

 

NM

 

 

 

(4.3

)%

 

Six Months Ended June 30, 2023

(in thousands)

Marketing Services

 

SaaS

 

U.S.

 

International

 

Total

 

U.S.

 

International

 

Total

Revenue

$

284,984

 

 

$

89,605

 

 

$

374,589

 

 

$

118,277

 

 

$

4,110

 

 

$

122,387

 

Adjusted EBITDA

 

79,497

 

 

 

42,385

 

 

 

121,882

 

 

 

8,245

 

 

 

(2,219

)

 

 

6,026

 

Adjusted EBITDA Margin

 

27.9

%

 

 

47.3

%

 

 

32.5

%

 

 

7.0

%

 

 

(54.0

)%

 

 

4.9

%

 

Six Months Ended June 30, 2022

(in thousands)

Marketing Services

 

SaaS

 

U.S.

 

International

 

Total

 

U.S.

 

International

 

Total

Revenue

$

435,103

 

 

$

106,882

 

 

$

541,985

 

 

$

98,510

 

 

$

1,875

 

 

$

100,385

 

Adjusted EBITDA

 

150,069

 

 

 

58,642

 

 

 

208,711

 

 

 

(4,167

)

 

 

(4,827

)

 

 

(8,994

)

Adjusted EBITDA Margin

 

34.5

%

 

 

54.9

%

 

 

38.5

%

 

 

(4.2

)%

 

 

NM

 

 

 

(9.0

)%

Forward-Looking Statements

Certain statements contained herein are not historical facts, constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and involve a number of risks and uncertainties. Statements that include the words “may”, “will”, “could”, “should”, “would”, “believe”, “anticipate”, “forecast”, “estimate”, “expect”, “preliminary”, “intend”, “plan”, “target”, “project”, “outlook”, “future”, “forward”, “guidance” and similar statements of a future or forward-looking nature identify forward-looking statements. These statements are not guarantees of future performance. These forward-looking statements are based on our current expectations and beliefs concerning future developments and their potential effect on us. While management believes that these forward-looking statements are reasonable as and when made, there can be no assurance that future developments affecting us will be those that we anticipate. Accordingly, there are or will be important factors that could cause our actual results to differ materially from those indicated in these statements. We believe that these factors include, but are not limited to, the risks related to the following: risks related to the ongoing COVID-19 pandemic, the Company’s ability to maintain adequate liquidity to fund operations; the Company’s future operating and financial performance; the Company’s ability to consummate acquisitions, or, if consummated, to successfully integrate acquired businesses into the Company’s operations, the Company’s ability to recognize the benefits of acquisitions, or the failure of an acquired company to achieve its plans and objectives; limitations on our operating and strategic flexibility and the ability to operate our business, finance our capital needs or expand business strategies under the terms of our credit facilities; our ability to retain existing business and obtain and retain new business; general economic or business conditions affecting the markets we serve; declining use of print yellow page directories by consumers; our ability to collect trade receivables from clients to whom we extend credit; credit risk associated with our reliance on small and medium sized businesses as clients; our ability to attract and retain key managers; increased competition in our markets; our ability to obtain future financing due to changes in the lending markets or our financial position; our ability to maintain agreements with major Internet search and local media companies; reduced advertising spending and increased contract cancellations by our clients, which causes reduced revenue; and our ability to anticipate or respond effectively to changes in technology and consumer preferences as well as the risks and uncertainties set forth in the Company's most recent Annual Report on Form 10-K and subsequent Quarterly Reports on From 10-Q filed with the Securities and Exchange Commission. All subsequent written and oral forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by such cautionary statements.

If one or more events related to these or other risks or uncertainties materialize, or if our underlying assumptions prove to be incorrect, actual results may differ materially from what we anticipate. For these reasons, we caution you against relying on forward-looking statements. All forward-looking statements included in this press release are expressly qualified in their entirety by the foregoing cautionary statements. These forward-looking statements speak only as of the date hereof and, other than as required by law, we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

About Thryv Holdings, Inc.

Thryv Holdings, Inc. (NASDAQ: THRY) is a global software and marketing services company that empowers small- to medium-sized businesses (“SMBs”) to grow and modernize their operations so they can compete and win in today's economy. Over 50,000 businesses use our award-winning SaaS platform, Thryv®, to manage their end-to-end operations, which has helped businesses across the U.S. and overseas grow their bottom line. Thryv also manages digital and print presence for approximately 400,000 businesses, connecting these SMBs to local consumers via proprietary local search portals and print directories. For more information about Thryv Holdings, Inc, visit thryv.com.

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