Thryv Holdings, Inc. · NASDAQ:THRY
Thryv — Investor Presentation (May 2021)
30 slides from Thryv's investor presentation, May 24, 2021
Slide 1: Supplemental Presentation May 2021
Supplemental Presentation May 2021
Slide 2: Safe Harbor Statement
Safe Harbor Statement 2 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, growt
Slide 3: Today's Presenters
Today’s Presenters 3 Joe WalshChief Executive Officer Paul RouseChief Financial Officer Proven Track Record Ryan CantorVice President of Product & Marketing Leadership team with decades of experience working with SMBs and each other Transformed Yellowbook (now Hibu) from a small telephone directory
Slide 4: Board of Directors
Amer Akhtar Bonnie Kintzer Jason Mudrick Ryan O’Hara John Slater Lauren Vaccarello Joe Walsh Heather Zynczak 4 NextSet Software Board Of Directors New board brings deep expertise in technology and SaaS
Slide 5: Company Overview
Company Overview 5 $364mmLTM Adj. EBITDA1,2,3 ~1,000Sales Related Employees Globally ~2,700Employees Globally $1.1bnLTM Revenue2,3 $158mmLTM Net Income2,3 400,000+Clients Globally Thryv Snapshot Adjusted EBITDA and Adjusted EBITDA Margin are non-GAAP measures. See reconciliation in the Appendix2. La
Slide 6: Key Investment Highlights
6 Key Investment Highlights Experienced management team with proven track record of execution 1 Large and growing TAM with favorable tailwinds 2 Complete end-to-end SaaS platform for SMBs 3 SaaS business with tremendous growth opportunities 4 Marketing Services business provides captive customer bas
Slide 7: Complete Solutions to Address SMB Pain Points
Complete Solutions to Address SMB Pain Points 7 Customizable and verticalized CRM, scheduling & appointments, automated follow-ups & reminders, document sharing & storage, mobile app 1 Stay Organized Stand-alone ThryvPay app, estimates & invoices, credit card & ACH processing, online & mobile paymen
Slide 8: Award Winning Comprehensive Product Offering
8 Award Winning Comprehensive Product Offering Thryv’s Platform Stands Apart From Competition https://www.globenewswire.com/news-release/2021/04/06/2204881/0/en/Thryv-Named-G2-Leader-in-14-Categories-for-Spring-2021.html
Slide 9: Category Leader of an Early Stage but Rapidly Developing Market
9 50+ Employees 1 Employee 2-19 Employees 20-50 Employees $199-499/moPlus add-ons1 Point Solutions And Other Free Apps Target Market (10mm) Enterprise Level SaaS Thryv End-to-End Client ExperienceOther Point & Vertical-Specific Solutions Total U.S. SMB Market: 30MM Note: Average pricing shown based
Slide 10: Our SaaS Evolution
Our SaaS Evolution 10 Launch SaaS and Build an End-to-End Platform Product Market Fit The Next Frontier Q3 2020SaaS business accelerating due to SMB industry tailwinds, product innovations, renewed focus on our core target marketMethodically building out new channels of customer acquisition Early su
Slide 11: Driving Customer Engagement
Driving Customer Engagement 11 Quarterly NPS Continued to invest in education and engagement growth Built and improved onboarding process to clearly identify the client’s purchase intent As a result, tremendous growth in engagement and driving up in app time User Frequency1 Average Time in App (in m
Slide 12: Attractive Growth Opportunities
Attractive Growth Opportunities 12 ThryvPay and ThryvPay App Launch Broaden Offering to New Verticals Verticalizing Product Offering Scale New Channels of Customer Acquisition Multiple actionable growth levers will continue to scale SaaS business Strategic M&A and International Expansion
Slide 13: Pandemic Tailwinds Accelerate SMB SaaS Software Adoption
Pandemic Tailwinds Accelerate SMB SaaS Software Adoption 13 30mmTotal U.S. SMB market 10mmThryv Ideal ClientProfile TAM Ideal Client Profile: Service-based SMBs with 2-50 employees $3.0 billion TAM1 Estimated based on ARPU times 10 million2. Based on 2018 Tech Adoption Index projections
Slide 14: New Customer Acquisition Channels
New Customer Acquisition Channels 14 InboundReferrals from existing customers Partner NetworkMarketing partners, sales partners and resellers Franchise / Multi-LocationLong-term contracts with franchising organizations Medium-term target of 50% of new SaaS customers to come from new channels
Slide 15: Vertical Expansion Opportunity
Vertical Expansion Opportunity 15 Thryv now enables SMBs of all verticalsto track, and manage their day-to-day work Integrated Vertical Platform tailors solutions to industry specifications, terminology and workflow Leverage third-party research to cater to the unique needsof its diversified custome
Slide 16: ThryvPay and ThryvPay Mobile App
Stand alone ThryvPay App provides new point of entry for non-software usersRanked as the No. 3 payment gateway for small businesses behind PayPal and Apple Pay1Easily accepts credit card and ACH paymentsAutomatically charges convenience fees and accepts tipsOffers scheduled payments and dispute assi
Slide 17: Strategic M&A and International Expansion Opportunity
Strategic M&A and International Expansion Opportunity 17 Case Study: Acquisition of Sensis HoldingsClosed March 2021 Expands Thryv InternationallyProvides access to market of +100k SMBs in AustraliaLess highly-penetrated market than U.S. Simple IntegrationWell-run asset with +40% EBITDA marginsEngli
Slide 18: High Cash Flow, Resilient Legacy Business
High Cash Flow, Resilient Legacy Business 18 2nd COVID Wave 1st COVID Wave Fed Rate Hike / U.S. China Trade Tension Marketing Services business exhibits predictable decline and is resilient to broader market swings High cash flow business that drives nearly $1 billion in revenue today with high EBIT
Slide 19: Leveraging the Marketing Services Business
Leveraging the Marketing Services Business 19 High Cash FlowHigh margin Marketing Services business funds growth of SaaS business Cross SellingAs more SMBs shift to digital, Marketing Services captive customer base feeds into SaaS business Deep Roots in SMB MarketsEstablished roots and deep relation
Slide 20: 2021 Priority Progress
20 EngagementContinue to educate clients on features and how to leverage capabilities within platformExpand app marketplace and drive time in-app Drive Digital Adoption In SMB MarketAggressively sell Thryv via new channels as business environment recoversConvert “traditional” SMBsEfficiently and eff
Slide 21: Financial Highlights
Financial Highlights
Slide 22: Financial Highlights
22 SaaS LTM revenue shows continued scaling of the business1 Q1 2021 YoY SaaS revenue growth showing business return to growth trajectory with renewed focus on core target market SaaS Segment EBITDA margins benefitting from scaling of operations1 Steady Marketing Services Segment EBITDA margins prov
Slide 23: Q1-21 Results Key Highlights
Q1-21 Results 23 Key HighlightsQ1 2021 SaaS revenue accelerated to 17% YoY. Acceleration fueled by demand for SMBs to modernize and transition to SaaS softwareRecent product improvements drove expanded adoption and higher engagement among new and current clientsThryv continues to penetrate legacy ca
Slide 24: SaaS Business Financial Highlights
SaaS Business Financial Highlights 24 SaaS Revenue % of Total Thryv Revenue Quarterly Revenue and YoY Growth SMB industry tailwinds, product innovation, and focus on core target market accelerates SaaS (in $ millions) Note: Results do not include contribution from Sensis Acquisition
Slide 25: Key SaaS Metrics Hitting Inflection Point
Key SaaS Metrics Hitting Inflection Point 25 Net Dollar Retention excludes Setup Fees and Credits & Adjustments. Uses month 2 revenue for clients that were given the 1st month free
Slide 26: Appendix
fare Today
Slide 27: Marketing Services Overview
27 Marketing Services Overview Directory BusinessSubscription-based display ads, online local business listings services and paid placement in offline directoriesLTM Revenue: $709mm1,3 SEMPaid placement in search engine resultsLTM Revenue: $157mm1,3 PresenceOnline listings management, Websites, Disp
Slide 28: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation 28 Note: Q1-21 includes Sensis contribution subsequent the acquisition date of March 1, 2021Note: Last Twelve Months as of March 2021
Slide 29: Historical Segment Billings
Historical Segment Billings 29 Note: Represents U.S. only and does not include contribution from Sensis Acquisition
Slide 30: Historical Segment Financials
Historical Segment Financials 30 Note: Last Twelve Months as of March 2021Note: Total Thryv includes certain purchase accounting adjustments not reflected at the business segment level