Recent Quotes View Full List My Watchlist Create Watchlist Indicators DJI Nasdaq Composite SPX Gold Crude Oil EL&P Market Index Markets Stocks ETFs Tools Overview News Currencies International Treasuries Thryv Grows SaaS Profitability in the Second Quarter, Raises Full-Year 2023 Guidance By: Thryv via Business Wire August 03, 2023 at 07:30 AM EDT – 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. View source version on businesswire.com: https://www.businesswire.com/news/home/20230803228836/en/Contacts Media Contact: Paige Blankenship Thryv, Inc. 214-392-9609 paige.blankenship@thryv.com Investor Contact: Cameron Lessard Thryv, Inc. 214.773.7022 cameron.lessard@thryv.com Data & News supplied by www.cloudquote.io Stock quotes supplied by Barchart Quotes delayed at least 20 minutes. By accessing this page, you agree to the following Privacy Policy and Terms and Conditions.
Thryv Grows SaaS Profitability in the Second Quarter, Raises Full-Year 2023 Guidance By: Thryv via Business Wire August 03, 2023 at 07:30 AM EDT – 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. View source version on businesswire.com: https://www.businesswire.com/news/home/20230803228836/en/Contacts Media Contact: Paige Blankenship Thryv, Inc. 214-392-9609 paige.blankenship@thryv.com Investor Contact: Cameron Lessard Thryv, Inc. 214.773.7022 cameron.lessard@thryv.com
– 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. View source version on businesswire.com: https://www.businesswire.com/news/home/20230803228836/en/
Media Contact: Paige Blankenship Thryv, Inc. 214-392-9609 paige.blankenship@thryv.com Investor Contact: Cameron Lessard Thryv, Inc. 214.773.7022 cameron.lessard@thryv.com