Thryv Holdings, Inc. · NASDAQ:THRY
Thryv — Q2 2023 Earnings Presentation
32 slides from Thryv's earnings presentation, Aug 3, 2023
Slide 1: 2nd Quarter 2023 Investor Presentation
Exhibit 99.2 2nd QUARTER 2023 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 rélating to our business, growth stra
Slide 3: Key Investment Highlights
thryv KEY INVESTMENT HIGHLIGHTS BEST-IN-CLASS SAAS PLATFORM Powerful all-in-one software platform tailored to the growing needs of the SMB MASSIVE MARKET OPPORTUNITY Established and resilient service-based SMBs with 2-50 employees. Global TAM > 8M businesses ($40B annual spend) MEGA-TREND Thryv to b
Slide 4: Small Business Is...
thryv SMALL BUSINESS IS
Slide 5: All-in-one small business management software
ALL-IN-ONE SMALL BUSINESS MANAGEMENT SOFTWARE. One login, one platform to run your entire business. thryv Job / Roof Repair = Payments Received $39,299.5 USD $38,578.5 USD $721 USD $60.00 USD woice #0000036 «aS PAID $310.82 USD RO Str
Slide 6: Thryv Business Center, Command Center, Marketing Center
thryv Business oe ryVv Center. thryv cents: thryv cere"
Slide 7: One solution that does it all
ONE SOLUTION THAT DOES IT ALL. All connected to a powerful CRM. Finally streamline your business by automating the busy work. Manage everything without ever leaving the app. Payments Invoicing Scheduling Customer Reviews Marketing Social Media Collaboration Communication
Slide 8: 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 9: Why Thryv will win
WHY THRYV WILL WIN DIFFERENTIATED BUSINESS MODEL DRIVING LONG-TERM GROWTH & SUSTAINABILITY “Free” SaaS Acquired “s SaaS Customers Customers WE DON'T BUY CUSTOMERS. — customers BUY [AFYV TOP 10 SAAS © ts) CLIENTS BY VERTICAL CONSTRUCTION HOME & & CONTRACTORS GARDEN BUSINESS & LEGAL SHOPPING & INSURAN
Slide 10: Product innovation: evolving & expanding
10 PRODUCT INNOVATION EVOLVING & EXPANDING thryy =| thryy~—sthryv thryv Lifetime Value Customer Business Marketing Command Cariten Center Center thryv Thank You alll 2021 2022 2023 2024 2025 Xs thryv Pay. thryv App Market Hub» thryv Thryv Everything an SMB needs to run their day-to-day business and
Slide 11: "1 e “ — s
"1 e “ — s
Slide 12: The Thryv Platform
12 The Thryv Platform =\ 7. Command fyV Center. Business eS thryv th CAFYV center | Marketing Center.
Slide 13: Command Center: many channels, one inbox
13 en Phone / SMS atlewa Microsoft 365 COMMAND CENTER MANY CHANNELS. ONE INBOX. we ot mri a@at ad TTLL (Text to Landline) Video Gmail Outlook Hotmail we a) Facebook Instagram Google Business ! Yahoo! IMAP Messenger Messenger Messages
Slide 14: Product innovation: Marketing Center
14 PRODUCT INNOVATION thryv cents. 9 TURNS THIS... INTO THIS... thryv Marketing Center. CUSTOMER INSIGHTS PERFORMANCE ‘& REPORTING. COMPETITIVE ‘CAMPAIGNS ‘ONLINE DISCOVERY PERSONALIZED MARKETING Marketing is messy. Streamline all your Marketing efforts with Thryv’s Marketing Center. thryv
Slide 15: Easy to Use Toolkit
15 Easy to Use Toolkit Level up your digital marketing with easy- to-use tools that give you an edge over the competition. thryv Everything a small business needs to attract new customers, PRODUCT INNOVATION Marketing Center. effectively market and grow their business. Visitor Tracking With Thryv's
Slide 16: 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 17: SaaS Targets
SAAS TARGETS $4B 500K REVENUE SUBSCRIBERS >75% >100% GROSS NET DOLLAR MARGIN RETENTION >20% >95% ADJUSTED EBITDA SAAS REVENUE OF MARGIN CONSOLIDATED REVENUE
Slide 18: 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 big success Hat are consumers sa Bs your businees enn? stories for a business. Whether customers are searching for a business by name or
Slide 19: Financial Review Q2 2023
thryv FINANCIAL REVIEW Q2 2023
Slide 20: 2nd Quarter Highlights
20 2nd QUARTER HIGHLIGHTS 2nd Quarter $ in thousands 2023 2022 YoY% Total SaaS Revenue $62,458 $52,207 19.6% Adjusted EBITDA 6,230 (2,219) Adjusted EBITDA Margin 10.0% (4.3)% Total Marketing Services Revenue $188,963 $281,788 (32.9)% Adjusted EBITDA 63,209 118,219 Adjusted EBITDA Margin 33.5% 42.0%
Slide 21: Financial Review: SaaS Highlights
21 FINANCIAL REVIEW SAAS HIGHLIGHTS $52.2 $62.5 Revenue Q2-22 Q2-23 +20% YoY +12% YoY +5% YoY $60M +59% YoY Revenue Growth Growing Subscribers ARPU Expansion ThryvPay TPVSeasoned Net Dollar Retention (NDR) 45K 89% Monthly Active Users (MAU) +18% YoY (in millions)
Slide 22: Financial Review: Total Marketing Services
22 (1) Marketing Services Billings excludes Vivial Holdings run-off products and Yellow Holdings Limited (NZ). Q2-23 Q2-22 Marketing Services Billings (millions)(1) $168.7 $216.4 YoY % (22%) (17%) FINANCIAL REVIEW TOTAL MARKETING SERVICES MARKETING SERVICES BILLINGS (YoY%) (23)%(22)%(23)%(21)%(22)%(
Slide 23: Q3 and FY 2023 Outlook
23 Q3 and FY 2023 OUTLOOK Company Provides Guidance For FY23 for SaaS and Marketing Services (in millions, USD) Q3 2023 Q4 2023 FY 2023 MANAGEMENT COMMENTARY TOTAL MARKETING SERVICES REVENUE $114 to $118 $166 to $170 $653 to $663 • Transition from 15 to 18 month print cycle creates a revenue recogni
Slide 24: Appendix
APPENDIX
Slide 25: Segment Results
25 APPENDIX SEGMENT RESULTS Three Months Ended June 30, 2022 Thryv U.S. Thryv International (in thousands) Marketing Services SaaS Marketing Services SaaS Total Revenue $ 222,570 $ 51,167 $ 59,218 $ 1,040 $ 333,995 Segment Gross Profit 151,774 32,092 43,627 489 227,982 Segment Adjusted EBITDA 83,674
Slide 26: Adjusted EBITDA reconciliation
26 $ IN THOUSANDS Q1-22 Q2-22 Q3-22 Q4-22 FY22 Q1-23 Q2-23 YTD Q2-23 Net Income (Loss) $ 33,511 $ 58,002 $ 13,280 $ (50,445) $ 54,348 $ 9,314 $ 15,978 $ 25,292 Interest expense 14,867 14,652 14,570 16,318 60,407 16,488 16,292 32,780 Depreciation and amortization expense 21,969 20,592 23,393 22,438 8
Slide 27: Non-GAAP Financial Reconciliation: Three Months
27 Reconciliation of Adjusted Gross Profit to Gross profit APPENDIX NON-GAAP FINANCIAL RECONCILIATION Three Months Ended June 30, 2023 Thryv U.S. Thryv International (in thousands) Marketing Services SaaS Marketing Services SaaS Consolidated Reconciliation of Adjusted Gross Profit Gross profit $ 88,
Slide 28: Non-GAAP Financial Reconciliation: Six Months
28 Reconciliation of Adjusted Gross Profit to Gross profit APPENDIX NON-GAAP FINANCIAL RECONCILIATION Six Months Ended June 30, 2023 Thryv U.S. Thryv International (in thousands) Marketing Services SaaS Marketing Services SaaS Consolidated Reconciliation of Adjusted Gross Profit Gross profit $ 181,1
Slide 29: Supplemental Financial Information: Three Months
29 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 30: Supplemental Financial Information: Six Months
30 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 31: Domestic Print Publishing Schedule
31 APPENDIX DOMESTIC PRINT PUBLISHING SCHEDULE thryv PUBLICATIONS 600 400 QU Q2-22 Q3-22 Q4WQ QI-2B Q2-23 Q3-2BE Q4-2BE QI-2E Q2-24E Q3-ME Q4-24E Per ASC 606 accounting policy, print revenue is recognized upfront at the time of shipment. In 2022, the company extended publication cycles of most domes
Slide 32: Definitions of key terms
32 APPENDIX thryv 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 operations. + Total