Thryv Holdings, Inc. · NASDAQ:THRY
Thryv — Q2 2022 Earnings Presentation
36 slides from Thryv's earnings presentation, Aug 4, 2022
Slide 1: 2nd Quarter 2022 Investor Presentation
Exhibit 99.2 2ND 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 rélating to our business, growth stra
Slide 3: 2020s: Decade of SMB SaaS
20205 E-DECADE OF.SMB SAAS HARDI
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 SMB SaaS
thryv THE DECADE OF SMBs SAAS 2020s DECADE OF ENTERPRISE SAAS DECADE OF SMB SAAS
Slide 6: Why Is This Mega-Trend Happening Now?
WHY IS THIS MEGA-TREND HAPPENING NOW? Consumers Are Trained Tools Are Better SMBs Are Ready
Slide 7: SMB SaaS Adoption
SMB SAAS ADOPTION 77% 64% MULTIPLE SAAS APPS ONE PROVIDER 77% of of SMBs need a platform 64% want to buy from with all tools in one place. one provider. Decision Analyst, Q1 2022, SMB SaaS Adoption Study.
Slide 8: Why Thryv Will Win
thryv WHY THRYV WILL WIN KEY BENEFITS TO SMB Drives Growth Freedom/Mobility Saves Time/Get Organized
Slide 9: Addressing a Large Market Opportunity
thryv ADDRESSING A LARGE MARKET OPPORTUNITY 2-50 Employees Service-based Businesses Established Businesses * $500K in Annual Revenue
Slide 10: Why Thryv Will Win
WHY THRYV WILL WIN WIN, KEEP & GROW HIGH QUALITY BUSINESS SEAMLESS SOLUTION uae iia é MORE REFERRALS $1,349 USD BETTER GMB RANKINGS (SEO) REPEAT BUSINESS $23,826.68 USD BETTER SEO OFFICE IN YOUR POCKET EASIER FOR CONSUMER INTEROPERABILITY 10
Slide 11: Why Thryv Will Win
WIN WILL > - | a <x ac Lu oO O a LU kr Zz WHY THRYV
Slide 12: We Make the Consumer Experience Better
12 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 ThryvPay. Credit Card Automated Future VALUE GMB Scheduler Stored For Future Business Offers CUSTOMER CONSUMER MAKES APPOINTMENT RECEIVES DOCUMEN
Slide 13: Unfair Sales Advantage
3 UNFAIR SALES ADVANTAGE EXPANDING & MATURING SALES CHANNELS INSIDE OUTSIDE INBOUND PARTNER TEAM SELLING FRANCHISE LOCAL CHANNELS NEW ACQUISITION Large base of existing marketing services CHANNELS customers for prospecting (Zoos). thryv
Slide 14: Client Adored - Industry Recognized
14 UNFAIR SALES ADVANTAGE thryv CLIENT ADORED - INDUSTRY RECOGNIZED Leader Kaw 445 ED 2022.62 award winner 2020 Featured Customers award winner Ges tttst" 2021 Best SMS Marketing Software for SMBs Spring 2020 Market Leader Business Text Messaging tote etek 4.2/5 2021 Capterra award winner 2020 Local
Slide 15: Product Innovation
15 PRODUCT INNOVATION EVOLVING & EXPANDING thryv Business Center. Thryv Everything an SMB needs to run their day-to-day business and deliver an exceptional customer experience. thryv
Slide 16: Product Innovation: Evolving & Expanding
16 thryv Business Center 2021 PRODUCT INNOVATION EVOLVING & EXPANDING thryv thryv thryv Marketing Future Future Center. Center Center 2H-2022 2023 2024 2025 thryv thryv Pay. thryv App Market. Huby thryv
Slide 17: Top SaaS Clients by Vertical
7 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 18: Reimagining the Customer Experience
18 REIMAGINING THE CUSTOMER EXPERIENCE RETENTION cS ONBOARDING GROWTH & ACCOUNT MANAGEMENT SOLVING ADDITIONAL TIME TO FIRST PROBLEMS OVER TIME SERVICE ASA VALUE (TTFV) DIFFERENTIATOR LEADS TO RETENTION UNDERSTANDING & & GROWTH SOLVING THEIR PROBLEM thryv
Slide 19: 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 20: 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 21: Financial Review Q2 2022
thryv FINANCIAL REVIEW Q2 2022
Slide 22: 2nd Quarter Highlights
22 2nd QUARTER HIGHLIGHTS Note: Vivial contributed $30 million to Marketing Services Revenue in Q2-22 ($53 million YTD) 2nd Quarter $ in thousands 2022 2021 YoY% Total SaaS Revenue $52,207 $41,395 26.1% Adjusted EBIDTA (2,219) (2,114) Adjusted EBIDTA Margin (4.3)% (5.1)% Total Marketing Services Rev
Slide 23: Financial Review: SaaS Highlights
23 FINANCIAL REVIEW SAAS HIGHLIGHTS $41.4 $52.2 Revenue Q2-21 Q2-22 +26% YoY +11% YoY +11% YoY $150M Annualized Spend Revenue Growth Growing Subscribers ARPU Expansion ThryvPay TPV
Slide 24: Financial Review: SaaS Metrics
24 Q2 2022 Q2 2021 Q2 2022 MONTHLY ACTIVE USER (MAU) GROWTH SEASONED NET DOLLAR RETENTION (NDR) 38K30K +27% YoY FINANCIAL REVIEW SAAS METRICS Q2 2021 Q2 2022 91%96%
Slide 25: Total Marketing Services Billings
25 Note: Excludes Vivial Holdings Q2-22 Q2-21 Marketing Services Billings (millions) $216.4 $261.9 YoY % (17%) (21%) FINANCIAL REVIEW TOTAL MARKETING SERVICES MARKETING SERVICES BILLINGS (YoY%) (23)% (22)% (23)% (21)% (22)% (22)% (21)% (21)% (22)% (21)% (21)% (22)% (19)% (17)% Q1 '19 Q2 '19 Q3 '19 Q
Slide 26: Marketing Services High Sustained Adjusted EBITDA Margins
26 $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 $962.5M $942M $980M $1,293M $1,660M $1,243M 35% 39% 37% 36% 36% 39% 2022E is midpoint of guidance.
Slide 27: Thryv Positioned to Create Long-Term Stakeholder Value
27 FINANCIAL REVIEW THRYV POSITIONED TO CREATE LONG-TERM STAKEHOLDER VALUE FREE CASH PRODUCT INNOVATION FLOW GROWTH SUBSCRIBER GROWTH cal — STAKEHOLDER VALUE CREATION INTERNATIONAL EXPANSION REVENUE GROWTH M&A REINVESTMENT r°x IN GROWTH Oe? thryv
Slide 28: 3rd Quarter & FY 2022 Outlook
28 Q3 2022 FY 2022 MANAGEMENT COMMENTARY TOTAL SAAS REVENUE $53.7 to $54.2 million $209.5 to $211.0 million • FY22 guidance raised from previous guidance range of $208.0 to $209.0 million Adjusted EBITDA $4.8 to $5.3 million loss $16.0 to $19.0 million loss • FY22 guidance improved from previous gui
Slide 29: Appendix
APPENDIX
Slide 30: Appendix: Segment Results
30 APPENDIX SEGMENT RESULTS Six Months Ended June 30, 2022 Thryv U.S Thryv International (in thousands) Marketing Services SaaS Marketing Services SaaS Total Revenue $ 435,103 $ 98,510 $ 106,882 $ 1,875 $ 642,370 Segment Gross Profit 288,284 61,501 75,343 710 425,838 Segment Adjusted EBITDA 150,069
Slide 31: Adjusted EBITDA Reconciliation
31 $ IN THOUSANDS Q1-21 Q2-21 Q3-21 Q4-21 FY21 Q1-22 Q2-22 YTD Q2-22 Net Income $ 36,506 $ 24,359 $ 35,624 $ 5,088 $ 101,577 $ 33,511 $ 58,002 $ 91,513 Interest expense 15,672 19,170 16,546 14,986 66,374 14,867 14,652 29,519 Income tax expense (benefit) 11,809 8,112 13,802 (986) 32,737 9,621 22,200
Slide 32: Non-GAAP Financial Reconciliation: Adjusted Gross Profit
32 Reconciliation of Adjusted Gross Profit to Gross profit APPENDIX NON-GAAP FINANCIAL RECONCILIATION Three Months Ended June 30, 2022 Thryv U.S Thryv International (in thousands) Marketing Services SaaS Marketing Services SaaS Consolidated Reconciliation of Adjusted Gross Profit Gross profit $ 151,
Slide 33: Non-GAAP Financial Reconciliation: Adjusted Gross Profit
33 Reconciliation of Adjusted Gross Profit to Gross profit APPENDIX NON-GAAP FINANCIAL RECONCILIATION Six Months Ended June 30, 2022 Thryv U.S Thryv International (in thousands) Marketing Services SaaS Marketing Services SaaS Consolidated Reconciliation of Adjusted Gross Profit Gross profit $ 288,28
Slide 34: Supplemental Financial Information
34 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 35: Supplemental Financial Information
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: Definitions of Key Terms
36 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