Thryv Holdings, Inc. · NASDAQ:THRY
Thryv — Q3 2022 Earnings Presentation
37 slides from Thryv's earnings presentation, Nov 3, 2022
Slide 1: 3rd Quarter 2022 Investor Presentation
Exhibit 99.2 3rd QUARTER 2022 INVESTOR PRESENTATION
Slide 2: Safe Harbor
thryv SAFE HARBOR This Presentation may include certain forward-looking statements, including, without limitation, statements concerning the conditions of our industry and our operations, performance, and financial condition, including, in particular, statements relating to our business, growth stra
Slide 3: 2020s: The Decade of SMB SaaS
2020S: THE DECADE OF.SMB SAAS
Slide 4: Key Investment Highlights
thryv KEY INVESTMENT HIGHLIGHTS BEST-IN-CLASS SAAS PLATFORM Purpose-built, powerful, and easy-to-use software tailored to the needs of SMB. MASSIVE MARKET OPPORTUNITY Established service-based SMBs with 2-50 employees. Global TAM > 8M businesses ($40B annual spend). MEGA-TREND Thryv to benefit from
Slide 5: The Decade of SMBs SaaS
THE DECADE OF SMBs SAAS DECADE OF ENTERPRISE SAAS DECADE OF SMB SAAS CONSUMERS SMBS ARE TRAINED ARE READY fe} TOOLS ARE BETTER
Slide 6: SMB SaaS Adoption
SMB SAAS ADOPTION 77% 64% MULTIPLE SAAS APPS ONE PROVIDER 77% of 7 64% want to buy from
Slide 7: Addressing a Large Market Opportunity
thryv ADDRESSING A LARGE MARKET OPPORTUNITY + 2-50 Employees * Service-based Businesses + Established Businesses * ~$500K in Annual Revenue * TAM: 4M SMBs in the U.S. we can potentially serve + TAM: 8M SMBs Worldwide we can potentially serve
Slide 8: Why Thryv Will Win
WHY THRYV WILL WIN WIN, KEEP & GROW HIGH QUALITY BUSINESS SEAMLESS SOLUTION $1,349 USD BETTER GMB RANKINGS (SEQ) REPEAT BUSINESS $23,826.68 USD BETTER SEO OFFICE IN YOUR POCKET EASIER FOR CONSUMER NTEROPERABILITY
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Slide 10: Why Thryv Will Win: Better Consumer Experience
10 thryv WHY THRYV WILL WIN WE MAKE THE CONSUMER EXPERIENCE BETTER FINDS SMB GETS REMINDER MAKES PAYMENT GETS REMINDER LIFETIME Via Website/ Via Thryy Via ThrywPay. Credit Card Automated Future VALUE GMB Scheduler Stored For Future Business Offers CUSTOMER CONSUMER MAKES APPOINTMENT RECEIVES DOCUMEN
Slide 11: Why Thryv Will Win: Differentiated Business Model
" WHY THRYV WILL WIN DIFFERENTIATED BUSINESS MODEL DRIVING LONG-TERM GROWTH & SUSTAINABILITY Gow RK END-TO-END “FREE” SOFTWARE PLATFORM CUSTOMERS Comprehensive, Penetrating vast Leveraging the mission-critical set Marketing Services strength of of SMB solutions. custorner base in ordinary _ existing
Slide 12: Why Thryv Will Win: Subscribers and Revenue
WHY THRYV WILL WIN DIFFERENTIATED BUSINESS MODEL DRIVING LONG-TERM GROWTH & SUSTAINABILITY SUBSCRIBERS/REVENUE ARR $60.0M 15% “Free"SaaS | ime son .o Customers” Customers 5% $20.0M 0% $0.0M (5)% Q1-21 Q2-21 Q3-21 Q4-21 Q1-22 Q2-22 Q3-22 WE DON'T BUY CUSTOMERS. Saas Revenue @ Subscriber Growth custom
Slide 13: Unfair Sales Advantage: Sales Channels
3 UNFAIR SALES ADVANTAGE EXPANDING & MATURING SALES CHANNELS OUTSIDE INBOUND PARTNER TEAM SELLING FRANCHISE LOCAL CHANNELS NEW ACQUISITION Large base of existing marketing services CHANNELS customers for prospecting (Zoos). thryv
Slide 14: Unfair Sales Advantage: Awards and Recognition
14 UNFAIR SALES ADVANTAGE CLIENT ADORED: INDUSTRY RECOGNIZED © APPEALIE AWARD WINNER: 2022 Appealie SaaS Award Winner +*% AMER’ MOST LOVED \ Newswoek Newsweek's list of America’s 100 Most Loved Workplaces for 2022 thryv MERIT AWARDS 2022 Merit Awards for Technology 3 Leader Pe FALL Leader r= 2022 ci
Slide 15: Product Innovation
15 PRODUCT INNOVATION EVOLVING & EXPANDING thryy = thryy—sithryv Marketing Future Center Center edie Vaive Customer acai Everything an SMB needs to run their day-to-day business and deliver an exceptional customer experience. 2021 2H-2022 2023 2024 2025 thryv Pay. thryV App Market. Hub» thryv
Slide 16: SaaS Verticals
16 SAAS VERTICALS thryv TOP 10 SAAS CLIENTS BY VERTICAL CONSTRUCTION HOME & GARDEN HEALTH & WELLNESS BUSINESS & AUTOMOTIVE & CONTRACTORS PROFESSIONAL SERVICES, & VEHICLES LEGAL SHOPPING & INSURANCE FOOD & BEVERAGE PETS & ANIMALS ECOMMERCE
Slide 17: Reimagining the Customer Experience
7 REIMAGINING THE CUSTOMER EXPERIENCE RETENTION ONBOARDING GROWTH & ACCOUNT MANAGEMENT. SOLVING ADDITIONAL Le TO enSr PROBLEMS OVER TIME SERVICE AS A UE (TTFV) DIFFERENTIATOR LEADS TO RETENTION UNDERSTANDING & & GROWTH SOLVING THEIR PROBLEM thryv
Slide 18: SaaS Targets
SAAS TARGETS $1B 150K REVENUE SUBSCRIBERS 75% 100% GROSS NET DOLLAR MARGIN RETENTION 20% 75% ADJUSTED EBITDA SAAS REVENUE OF MARGIN CONSOLIDATED REVENUE
Slide 19: SaaS Targets (Long-Term)
SAAS TARG ETS $4B 500K REVENUE SUBSCRIBERS >75% > >100% GROSS NET DOLLAR MARGIN RETENTION >20% >95% ADJUSTED EBITDA SAAS REVENUE OF MARGIN CONSOLIDATED REVENUE
Slide 20: Additional Products: Marketing Services
thryv ADDITIONAL PRODUCTS MARKETING SERVICES THE REAL YELLOW PAGES The most cost-effective way to target ready-to-buy consumers. Yellow Pages directories can mean bi Yost aro consumers saying (Bout your tusness onto? = stories for a business. Whether customers are searching fetes hand . for a busine
Slide 21: Marketing Services: Yellow Pages References
Sot wurce: Localogy, February 2022. MARKETING SERVICES YELLOW PAGES & IYP ANNUAL U.S. REFERENCES 2001-2021 (in Billions) -4% CAGR 2021 mPrintReferences _ m Digital References _ DIGITAL 2021 4.3B REFERENCES 348 05 2021 ENCES TOTAL 2021 d A B REFERENCES
Slide 22: Financial Review Q3 2022
thryv FINANCIAL REVIEW Q3 2022
Slide 23: 3rd Quarter Highlights
23 3rd QUARTER HIGHLIGHTS Note: Vivial contributed $20 million to Marketing Services Revenue in Q3-22 ($73 million YTD) 3rd Quarter $ in thousands 2022 2021 YoY% Total SaaS Revenue $56,643 $44,931 26.1% Adjusted EBIDTA (2,177) (7,885) Adjusted EBIDTA Margin (3.8)% (17.5)% Total Marketing Services Re
Slide 24: Financial Review: SaaS Highlights
24 FINANCIAL REVIEW SAAS HIGHLIGHTS +26% YoY +13% YoY +11% YoY $160M Annualized Spend Revenue Growth Growing Subscribers ARPU Expansion ThryvPay TPV
Slide 25: Financial Review: SaaS Metrics
25 Q3 2022 Q3 2021 Q3 2022 MONTHLY ACTIVE USER (MAU) GROWTH SEASONED NET DOLLAR RETENTION (NDR) 37K31K FINANCIAL REVIEW SAAS METRICS Q3 2021 Q3 2022 92%95%
Slide 26: Financial Review: Total Marketing Services
26 Note: Excludes Vivial Holdings Q3-22 Q3-21 Marketing Services Billings (millions) $198.1 $246.6 YoY % (20%) (21%) FINANCIAL REVIEW TOTAL MARKETING SERVICES
Slide 27: Total Marketing Services: High Sustained Adjusted EBITDA Margins
27 $200M FINANCIAL REVIEW TOTAL MARKETING SERVICES High Sustained Adjusted EBITDA Margins 2022E 2021 2020 2019 2018 2017 Marketing Services Adjusted EBITDA Margin Marketing Services Revenue $970M $942M $980M $1,293M $1,660M $1,243M 35% 39% 37% 36% 36% 39% 2022E is midpoint of guidance.
Slide 28: Thryv Positioned to Create Long-Term Stakeholder Value
28 FINANCIAL REVIEW THRYV POSITIONED TO CREATE LONG-TERM STAKEHOLDER VALUE PRODUCT INNOVATION SUBSCRIBER GROWTH STAKEHOLDER VALUE CREATION INTERNATIONAL EXPANSION M&A REINVESTMENT 7°y IN GROWTH O,9 thryv
Slide 29: 4th Quarter & FY 2022 Outlook
29 Q4 2022 FY 2022 MANAGEMENT COMMENTARY TOTAL SAAS REVENUE $57.0 to $58.0 million $214.0 to $215.0 million FY22 guidance raised from previous guidance range of $209.5 to $211.0 million Adjusted EBITDA $3.4 to $4.4 million loss $14.5 to $15.5 million loss FY22 guidance improved from previous guidanc
Slide 30: Appendix
APPENDIX
Slide 31: Appendix: Segment Results
31 APPENDIX SEGMENT RESULTS Nine Months Ended September 30, 2022 Thryv U.S Thryv International (in thousands) Marketing Services SaaS Marketing Services SaaS Total Revenue $ 632,277 $ 153,863 $ 133,715 $ 3,165 $ 923,020 Segment Gross Profit 415,130 95,328 89,694 1,325 601,477 Segment Adjusted EBITDA
Slide 32: Adjusted EBITDA Reconciliation
32 $ IN THOUSANDS Q1-21 Q2-21 Q3-21 Q4-21 FY21 Q1-22 Q2-22 Q3-22 YTD Q3-22 Net Income $ 36,506 $ 24,359 $ 35,624 $ 5,088 $ 101,577 $ 33,511 $ 58,002 $ 13,280 $ 104,793 Income tax expense (benefit) 11,809 8,112 13,802 (986) 32,737 9,621 22,200 6,241 38,062 Interest expense 15,672 19,170 16,546 14,986
Slide 33: Non-GAAP Reconciliation: Three Months Ended September 30, 2022
33 Reconciliation of Adjusted Gross Profit to Gross profit APPENDIX NON-GAAP FINANCIAL RECONCILIATION Three Months Ended September 30, 2022 Thryv U.S Thryv International (in thousands) Marketing Services SaaS Marketing Services SaaS Consolidated Reconciliation of Adjusted Gross Profit Gross profit $
Slide 34: Non-GAAP Reconciliation: Nine Months Ended September 30, 2022
34 Reconciliation of Adjusted Gross Profit to Gross profit APPENDIX NON-GAAP FINANCIAL RECONCILIATION Nine Months Ended September 30, 2022 Thryv U.S Thryv International (in thousands) Marketing Services SaaS Marketing Services SaaS Consolidated Reconciliation of Adjusted Gross Profit Gross profit $
Slide 35: Supplemental Financial Information: Three Months
35 APPENDIX SUPPLEMENTAL FINANCIAL INFORMATION The 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
Slide 36: Supplemental Financial Information: Nine Months
36 APPENDIX SUPPLEMENTAL FINANCIAL INFORMATION The 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
Slide 37: Definitions
37 APPENDIX thryv DEFINITIONS Definitions of key terms used in this presentation are as follows: + Total SaaS revenue consists of SaaS revenue recognized by our domestic and foreign operations. + Total Marketing Services revenue consists of SaaS revenue recognized by our domestic and foreign operati