Thryv Holdings, Inc. · NASDAQ:THRY
Thryv — Q1 2022 Earnings Presentation
33 slides from Thryv's earnings presentation, May 4, 2022
Slide 1: 1st Quarter 2022 Investor Presentation
1 ST QUARTER 2022 I N V E S T O R P R E S E N TAT I O N ©2022 Thryv, Inc. All Rights Reserved. Exhibit 99.2
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: 2020s: The Decade of SMB SaaS
2020 S : THE DECADE OF SMB S A A S HARDIN PAINTING COMPANY S TA N H A R D I N
Slide 4: Key Investment Highlights
KEY INVESTMENT HIGHLIGHTS BEST-IN-CLASS SAAS PLATFORM EFFICIENT CUSTOMER ACQUISITION STRATEGY Purpose-built, powerful, and easy-to-use software Cross-sell, new acquisition channels, franchise, and tailored to the needs of SMB. vast SMB referral network. MASSIVE MARKET OPPORTUNITY SIGNIFICANT CROSS-S
Slide 5: The Decade of SMB SaaS
THE DECADE OF SMBs S A A S 2010s 2020s 2020s 2010s 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 S A A S 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: Key Benefits to SMB
WHY THRYV WILL WIN KEY BENEFITS TO SMB Drives Growth Freedom/Mobility Saves Time/Get Organized
Slide 9: Addressing a Large Market Opportunity
ADDRESSING A LARGE MARKET OPPORTUNITY z• 2-50 Employees • Service-based Businesses • Established Businesses • $500K in Annual Revenue TA M : 4M SMBs IN THE U.S. WE CAN POTENTIALLY SERVE. 8M SMBs WORLDWIDE WE CAN POTENTIALLY SERVE.
Slide 10: Win, Keep & Grow High Quality Business
WHY THRYV WILL WIN WIN, KEEP & GROW HIGH QUALITY BUSINESS SEAMLESS SOLUTION MORE REFERRALS BETTER GMB RANKINGS (SEO) REPEAT BUSINESS BETTER SEO OFFICE IN YOUR POCKET EASIER FOR CONSUMER INTEROPERABILITY
Slide 11: Interoperability
WHY THRYV WILL WIN INTEROPERABILITY
Slide 12: We Make the Consumer Experience Better
WHY THRYV WILL WIN WE MAKE THE CONSUMER EXPERIENCE BET TER FINDS SMB GETS REMINDER MAKES PAYMENT GETS REMINDER LIFETIME Via Website/ Via Thryv Via ThryvPay. Credit Card Automated Future VALUE GMB Scheduler Stored For Future Business Offers CUSTOMER CONSUMER MAKES APPOINTMENT RECEIVES DOCUMENTS/ MAKE
Slide 13: Expanding & Maturing Sales Channels
U N FA I R S A L E S A D VA N TAG E E X PA N D IN G & M AT U R I N G S A L E S C H A N N E L S INSIDE OUTSIDE INBOUND PARTNER TEAM SELLING FRANCHISE LOCAL CHANNELS NEW ACQUISITION Large base of existing marketing services CHANNELS customers for prospecting (Zoos).
Slide 14: Client Adored - Industry Recognized
U N FA I R S A L E S A D VA N TAG E CLIENT ADORED - INDUSTRY RECOGNIZED
Slide 15: Product Innovation: Evolving & Expanding
P R O D U C T I N N O VAT I O N EVOLVING & EXPANDING Thryv Everything an SMB needs to run their day-to-day business and deliver an exceptional customer experience.
Slide 16: Product Innovation: Evolving & Expanding
P R O D U C T I N N O VAT I O N EVOLVING & EXPANDING 2021 2H-2022 2023 2024 2025
Slide 17: Reimagining the Customer Experience: Retention
REIMAGINING THE CUSTOMER EXPERIENCE RETENTION ONBOARDING GROWTH & ACCOUNT MANAGEMENT ENGAGE CUSTOMER AS A NORTH STAR TIME TO FIRST SOLVING ADDITIONAL VALUE (TTFV) PROBLEMS OVER TIME SERVICE AS A DIFFERENTIATOR LEADS TO RETENTION UNDERSTANDING & & GROWTH SOLVING THEIR PROBLEM
Slide 18: SaaS Targets
5 YEAR S A A S TARGETS $1B 150K REVENUE SUBSCRIBERS 75% 100% GROSS NET DOLLAR MARGIN RETENTION 20% 75% ADJUSTED EBITDA SAAS REVENUE OF MARGIN CONSOLIDATED REVENUE C ATA L Y S T S • Go-to-Market Expansion • Product Innovation • Macro Trend SMBs Moving To Cloud
Slide 19: SaaS Targets
10 YEAR S A A S TARGETS $4B 500K REVENUE SUBSCRIBERS >75% >100% GROSS NET DOLLAR MARGIN RETENTION >20% >95% ADJUSTED EBITDA SAAS REVENUE OF MARGIN CONSOLIDATED REVENUE C ATA L Y S T S • Go-to-Market Expansion • Product Innovation • Macro Trend SMBs Moving To Cloud
Slide 20: Financial Review Q1 2022
FINANCIAL REVIEW Q1 2022
Slide 21: 1st Quarter Highlights
FINANCIAL REVIEW 1 ST QUARTER HIGHLIGHTS 1st Quarter $ in thousands 2022 2021 YoY % Total SaaS Revenue $48,178 $37,251 +29.3% Adjusted EBITDA (6,775) 316 Adjusted EBITDA Margin (14.1%) 0.8% Total Marketing Services Revenue $260,197 $243,355 +6.9% Adjusted EBITDA 90,492 104,617 Adjusted EBITDA Margin
Slide 22: SaaS Highlights
FINANCIAL REVIEW Revenue Growth Growing Subscribers SAAS HIGHLIGHTS +29% 47K $48.2 YoY End Q1-22 $37.3 ARPU Expansion ThryvPay TPV +16% $101M YoY Annualized Spend Q1-21 Q1-22 Revenue
Slide 23: SaaS Metrics
31K 36K 94% 93% FINANCIAL REVIEW Q1 2021 Q1 2022 SAAS METRICS Q1 2021 Q1 2022 MONTHLY ACTIVE SEASONED NET DOLLAR USER (MAU) RETENTION (NDR) Q1 2022 GROWTH New to Thryv MARKETING REFERRALS NEW SERVICES “ZOO” FROM “ZOO” CHANNELS CONVERSIONS BALANCED AND EFFICIENT CUSTOMER ACQUISITION STRATEGY
Slide 24: Total Marketing Services Billings
MARKETING SERVICES BILLINGS FINANCIAL REVIEW (YoY %) TOTA L M A R K E T I N G SERVICES (21%) (19%) (21%) (21%) (22%) (23%) (22%) (23%) (22%) (22%) (21%) (21%) (22%) Q1-22 Q1-21 Marketing Services Billings (millions) $222.6 $275.5 YoY % (19%) (22%) Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'2
Slide 25: Total Marketing Services
2022E 35% $912.5M FINANCIAL REVIEW 2021 39% $942M TOTA L 2020 37% $980M MARKETING 2019 36% $1,293M SERVICES 2018 36% $1,660M High Sustained Adjusted EBITDA Margins $200M 2017 39% $1,243M Marketing Services Adjusted EBITDA Margin Marketing Services Revenue
Slide 26: Thryv Positioned to Create Long-Term Stakeholder Value
FINANCIAL REVIEW T H R Y V P O S I T I O N E D TO C R E AT E LO N G -T E R M S TA K E H O L D E R VA LU E EBITDA GROWTH FREE CASH PRODUCT INNOVATION FLOW GROWTH SUBSCRIBER GROWTH STAKEHOLDER VALUE CREATION INTERNATIONAL EXPANSION REVENUE GROWTH M&A REINVESTMENT IN GROWTH
Slide 27: 2nd Quarter & FY Outlook
2 n d Q UA R T E R & F Y 2 0 2 2 O U T LO O K Company Updates Guidance For FY22 Q2 2022 FY 2022 MANAGEMENT COMMENTARY TOTAL SAAS REVENUE $50.5 to $51.0 Million $208 to $209 Million • FY22 guidance range raised from $206 to $208 Million $6.0 to $6.5 $21 to $25 • Company expects FY22 SaaS Adj EBITDA m
Slide 28: Appendix
APPENDIX
Slide 29: Segment Results
APPENDIX SEGMENT RESULTS Three Months Ended March 31, 2022 (in thousands) Marketing Services SaaS Thryv International Total Revenue $ 212,533 $ 47,343 $ 48,499 $ 308,375 Segment Gross profit 136,510 29,409 31,937 197,856 Segment Adjusted EBITDA 66,395 (4,364) 21,686 83,717 Three Months Ended March 3
Slide 30: Non-GAAP Financial Reconciliation
APPENDIX NON-GAAP FINANCIAL RECONCILIATION $ IN THOUSANDS Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 Q2-21 Q3-21 Q4-21 FY20 FY21 Q1-22 Net Income (loss) $ 28,102 $ 11,464 $ (145) $ 109,800 $ 36,506 $ 24,359 $ 35,624 $ 5,088 $ 149,221 $ 101,577 $ 33,511 Interest expense 19,930 18,012 15,609 14,988 15,672 19,170 1
Slide 31: Non-GAAP Financial Reconciliation
APPENDIX NON-GAAP FINANCIAL RECONCILIATION Reconciliation of Adjusted Gross Profit to Gross profit Three Months Ended March 31, 2022 (in thousands) Marketing Services SaaS International Consolidated Reconciliation of Adjusted Gross Profit Gross profit $ 136,510 $ 29,409 $ 31,937 $ 197,856 Plus: Depr
Slide 32: Supplemental Financial Information
APPENDIX SUPPLEMENTAL FINANCIAL INFORMATION Three Months Ended March 31, 2022 (in thousands) Marketing Services SaaS Total Marketing US International Services US International Total SaaS Revenue $ 212,533 $ 47,664 $ 260,197 $ 47,343 $ 835 $ 48,178 Adjusted EBITDA 66,395 24,097 90,492 (4,364) (2,411)
Slide 33: Definitions
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. To