Thryv Holdings, Inc. · NASDAQ:THRY
Thryv — Q3 2020 Earnings Presentation
16 slides from Thryv's earnings presentation, Nov 12, 2020
Slide 1: Investor Supplement Third Quarter 2020
Investor Supplement Third Quarter 2020
Slide 2: Safe Harbor
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 strategies
Slide 3: 3rd Quarter Financial Highlights
3rd Quarter Financial Highlights $ in Thousands 3rd Quarter 3rd Quarter YTD Key Highlights: 2020 2019 % 2020 2019 % • Q3 SaaS revenue up 2% Revenue YoY and -1% YTD SaaS $31,821 $31,322 2% $94,954 $96,172 -1% • Q3 revenue was 25% off of Marketing Services $208,504 $287,794 -28% $767,553 $980,072 -22%
Slide 4: Segment Historical Financials
Segment Historical Financials $ in Thousands Q1-19 Q2-19 Q3-19 Q4-19 Q1-20 Q2-20 Q3-20 TTM SaaS Revenue $32,578 $32,272 $31,322 $32,406 $31,848 $31,285 $31,820 $127,360 Key Highlights: EBITDA $5,768 $3,970 $1,830 $597 $2,701 $5,523 $2,561 $11,382 • SaaS revenue return to % EBITDA Margin 17.7% 12.3%
Slide 5: Strong Free Cash Flow Supports Value Creation
Strong Free Cash Flow Supports Value Creation Cumulative Free Cash Flow YTD 2020 Key Highlights: • Consistent cash flow $158 generation throughout the year • Thryv has generated over $1.5B in free cash flow since 2016 and repaid ~$1 billion of $85 debt and returned ~$500 million to shareholders $37
Slide 6: Quarterly Billings vs. Reported Revenue
Quarterly Billings vs. Reported Revenue Consolidated Revenue & Billing Consolidated YOY Billing $500,000 -5% • Under ASC 606, print revenue is -7% recognized upon delivery of the $400,000 -9% published directories. Individual directory titles have different -11% lifecycles, currently in the range $3
Slide 7: A low friction offering specially designed for service based Small Businesses
A low friction offering specially designed for service based Small Businesses. 7
Slide 8: ThryvPay Product Strategy
ThryvPay Product Strategy SM Total Addressable Market (TAM) 1 ENTRY ~15M ONLINE ∙ APP STORES ∙ MARKETPLACES ∙ AFFILIATES User Employee Count 2 $199-$500 MRR ~10M TRADITIONAL SALESFORCE ∙ INBOUND SAAS SEALES ∙ DEMO ASSIST ∙ PARTNER CHANNELS 50 $5k-$20k MRR ~100K 1,000 MULTI-LOCATION TEAM 8
Slide 9: SaaS
SaaS Revenue (excluding sales allowance) # Clients (k) 33.4 34.0 33.1 32.9 32.8 33.3 32.0 32.5 32.4 31.1 28.3 52.6 54.4 54.8 52.2 47.7 49.5 47.4 43.9 45.4 44.5 44.1 75% 67% 67% 49% 25% 9% -6% -13% -15% -11% -17% Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q1'18 Q2'18 Q3'18 Q4'1
Slide 10: Fast Growing Local Business Management Software
Fast Growing Local Business Management Software Thryv is an End-to-End Client Experience Platform 10
Slide 11: SaaS Product Overview
SaaS Product Overview SMB Cloud Adoption As Percentage Of Addressable Market Cloud Adoption within Total Addressable Market Will Increase by 100%1 • The size of the SMB market in the US is estimated at ~30 million businesses 60% • Addressable market for Thryv is 46% a subset of ~10 million SMBs 37%
Slide 12: Thryv is the Category Leader of an Early Stage but Rapidly Developing Market
Thryv is the Category Leader of an Early Stage but Rapidly Developing Market Enterprise Level SaaS 50+ Employees 20-50 Employees Thryv End-to-End Client Experience Target Market Other Point & Vertical- $199-499/mo. Specific Solutions *Plus add-ons 2-19 Employees Point Solutions And Other Free Apps 1
Slide 13: Q&A
Q&A 13
Slide 14: Appendix
Appendix 14
Slide 15: Appendix: Additional Financial Information
Appendix: Additional Financial Information $ in Thousands 3rd Quarter 3rd Quarter 2020 2019 % 2020 2019 % Revenue Thryv $22,324 $22,829 -2% $67,518 $72,877 -7% Thryv Add-Ons 9,497 8,493 12% 27,436 23,295 18% SaaS $31,821 $31,322 2% $94,954 $96,172 -1% Print 79,395 120,977 -34% 355,942 452,098 -21% I
Slide 16: Appendix: Non-GAAP Financial Reconciliation
Appendix: Non-GAAP Financial Reconciliation $ in Thousands Q1-19 Q2-19 Q3-19 Q4-19 Q1-20 Q2-20 Q3-20 Q3 YTD-19 Q3 YTD-20 TTM Net Income (Loss) $34,488 $3,341 ($272) ($2,053) $28,102 $11,464 ($145) $37,557 $39,421 $37,368 Interest Expense 22,264 25,138 23,666 21,883 19,930 18,012 15,609 71,068 53,551