Thryv Holdings, Inc. · NASDAQ:THRY
Thryv — Q3 2023 Earnings Presentation
28 slides from Thryv's earnings presentation, Nov 2, 2023
Slide 1: 3rd Quarter 2023 Investor Presentation
Exhibit 99.2 3rd 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: Thryv: The Customizable, Do-It-All Small Business Software
THRYV THE CUSTOMIZABLE, DO-IT-ALL SMALL BUSINESS SOFTWARE. We'll help you communicate efficiently, run your business, and grow your brand. thryv Job / Roof Repair = Payments Received $39,299.5 USD $38,578.5 USD $721 USD June 2021 Rose Wakley 560.00 USD Payment for Invoice #0000036 0 PAID €210 29 LIS
Slide 6: Thryv Business Center
thryv Business oe ryVv Center. thryv cents: thryv cere"
Slide 7: Small businesses run better on Thryv
aa es thryv center? thryveenies= — thryv centr Small businesses Centralize all Run your Grow your run better on Th ryv. communications. business. business. Centralized Customer Marketing © inbox 2D Database ® Campaigns thryv From inbox to invoices to inbound marketing, Thryv is the do-it-all platfor
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 & PROFITABILITY “Free” SaaS Acquired es 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 & INSURANC
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: 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 12: 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 13: 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 14: Client Adored, Industry Recognized
14 thryv cx AMERIC ) MOST LOVE 2023 | Newsweek = 297 ceRTII tut | UNFAIR SALES ADVANTAGE — C L | E N T A D O R E D . Newsweek's list of America’s ee . 100 Most Loved Workplaces for 2023 Martech Breakthrough Award 2023 INDUSTRY RECOGNIZED GB G G GB Most Momentum _ Highest User Implementable Leader Ad
Slide 15: Financial Review Q3 2023
thryv FINANCIAL REVIEW Q3 2023
Slide 16: 3rd Quarter Highlights
16 3rd QUARTER HIGHLIGHTS 3rd Quarter $ in thousands 2023 2022 YoY% Total SaaS Revenue $67,360 $56,643 18.9% Adjusted EBITDA (504) (2,177) Adjusted EBITDA Margin (0.7)% (3.8)% Total Marketing Services Revenue $116,462 $224,007 (48.0)% Adjusted EBITDA 7,835 67,609 Adjusted EBITDA Margin 6.7% 30.2% Co
Slide 17: Financial Review: SaaS Highlights
17 FINANCIAL REVIEW SAAS HIGHLIGHTS $56.6 $67.4 Revenue Q3-22 Q3-23 +19% YoY +29% YoY $365 $63M +57% YoY Revenue Growth Growing Subscribers ARPU ThryvPay TPVSeasoned Net Dollar Retention (NDR) 45K 92% +300 bps QoQ Monthly Active Users (MAU) +22% YoY (in millions)
Slide 18: Financial Review: Total Marketing Services
18 (1) Marketing Services Billings excludes Vivial Holdings run-off products and Yellow Holdings Limited (NZ). Q3-23 Q3-22 Marketing Services Billings (millions)(1) $159.5 $198.1 YoY % (19)% (20)% FINANCIAL REVIEW TOTAL MARKETING SERVICES MARKETING SERVICES BILLINGS (YoY%) (23)%(22)%(23)%(21)%(22)%(
Slide 19: Q4 and FY 2023 Outlook
19 Q4 and FY 2023 OUTLOOK Q4 and FY 2023 SaaS Guidance Raised (in millions, USD) Q4 2023 FY 2023 MANAGEMENT COMMENTARY TOTAL MARKETING SERVICES REVENUE $159 to $164 $650 to $655 • Transition from 15 to 18 month print cycle creates a revenue recognition gap in FY-23 according to accounting policy; ha
Slide 20: Appendix
APPENDIX
Slide 21: Appendix: Segment Results
21 APPENDIX SEGMENT RESULTS Three Months Ended September 30, 2022 Thryv U.S. Thryv International (in thousands) Marketing Services SaaS Marketing Services SaaS Total Revenue $ 197,174 $ 55,353 $ 26,833 $ 1,290 $ 280,650 Segment Gross Profit 126,846 33,827 14,351 615 175,639 Segment Adjusted EBITDA 6
Slide 22: Adjusted EBITDA Reconciliation
22 $ IN THOUSANDS Q1-22 Q2-22 Q3-22 Q4-22 FY22 Q1-23 Q2-23 Q3-23 YTD Q3-23 Net Income (Loss) $ 33,511 $ 58,002 $ 13,280 $ (50,445) $ 54,348 $ 9,314 $ 15,978 $ (27,046) $ (1,754) Interest expense 14,867 14,652 14,570 16,318 60,407 16,488 16,292 15,131 47,911 Depreciation and amortization expense 21,9
Slide 23: Non-GAAP Financial Reconciliation: Adjusted Gross Profit (Q3)
23 Reconciliation of Adjusted Gross Profit to Gross profit APPENDIX NON-GAAP FINANCIAL RECONCILIATION Three Months Ended September 30, 2023 Thryv U.S. Thryv International (in thousands) Marketing Services SaaS Marketing Services SaaS Consolidated Reconciliation of Adjusted Gross Profit Gross profit
Slide 24: Non-GAAP Financial Reconciliation: Adjusted Gross Profit (Nine Months)
24 Reconciliation of Adjusted Gross Profit to Gross profit APPENDIX NON-GAAP FINANCIAL RECONCILIATION Nine Months Ended September 30, 2023 Thryv U.S. Thryv International (in thousands) Marketing Services SaaS Marketing Services SaaS Consolidated Reconciliation of Adjusted Gross Profit Gross profit $
Slide 25: Supplemental Financial Information (Three Months)
25 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 26: Supplemental Financial Information (Nine Months)
26 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 27: Domestic Print Publishing Schedule
27 APPENDIX DOMESTIC PRINT PUBLISHING SCHEDULE thryv PUBLICATIONS 600 400 200 Q1-22 Q2-:22 Q3-22 Q4-22 Q1-23 Q2-23 Q3-23 Q4-23E Q1-24E Q2-24E Q3-24E 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
Slide 28: Definitions
28 APPENDIX 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 operations. •