Thryv Holdings, Inc. · NASDAQ:THRY
Thryv — FY2022 Earnings Presentation
40 slides from Thryv's earnings presentation, Feb 23, 2023
Slide 1: 4th Quarter and FY 2022 Investor Presentation
Exhibit 99.2 4th QUARTER and FY 2022 INVESTOR PRESENTATION
Slide 2: Safe Harbor
SAFE HARBOR This Presentation may include certain forward-looking statements, including. without limitation. statements conceming 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
2020S: THE DECADE OF.SMB SAAS
Slide 4: 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 ($408 annual spend) MEGA-TREND Thryv to b
Slide 5: The Decade of SMBs SaaS
THE DECADE OF SMBs SAAS DECADE OF ENTERPRISE SAAS DECADE OF SMB SAAS CONSUMERS SMBS ARE TRAINED ARE READY fe} TOOLS ARE BETTER
Slide 6: SMB SaaS Adoption
SMB SAAS ADOPTION 77% 64% MULTIPLE SAAS APPS ONE PROVIDER 77% of 7 64% want to buy from
Slide 7: 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 8: Why Thryv Will Win
WHY THRYV WILL WIN WIN, KEEP & GROW HIGH QUALITY BUSINESS SEAMLESS SOLUTION $1,349 USD BETTER GMB RANKINGS (SEQ) REPEAT BUSINESS $23,826.68 USD BETTER SEO OFFICE IN YOUR POCKET EASIER FOR CONSUMER NTEROPERABILITY
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Slide 10: Why Thryv Will Win: Better Consumer Experience
10 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 ThrywPay. Credit Card Automated Future VALUE GMB Scheduler Stored For Future Business Offers CUSTOMER CONSUMER MAKES APPOINTMENT RECEIVES DOCUMEN
Slide 11: Why Thryv Will Win: Differentiated Business Model
" WHY THRYV WILL WIN DIFFERENTIATED BUSINESS MODEL DRIVING LONG-TERM GROWTH & SUSTAINABILITY Gow RK END-TO-END “FREE” SOFTWARE PLATFORM CUSTOMERS Comprehensive, Penetrating vast Leveraging the mission-critical set Marketing Services strength of of SMB solutions. custorner base in ordinary _ existing
Slide 12: Subscribers & Revenue
12 *Represents new Saa WHY THRYV WILL WIN DIFFERENTIATED BUSINESS MODEL DRIVING LONG-TERM GROWTH & SUSTAINABILITY SUBSCRIBERS & REVENUE $60.0M 15% : oO “Free” SaaS | ium s40.om .“ Customers” Customers 5% $20.0M 0% $0.0M (5)% Q1-21 Q2-21 Q3-21 Q4-21 Q1-22 Q2-22 Q3-22 Q4-22 WE DON'T BUY CUSTOMERS. MH
Slide 13: Unfair Sales Advantage
3 UNFAIR SALES ADVANTAGE EXPANDING & MATURING SALES CHANNELS OUTSIDE INBOUND PARTNER TEAM SELLING FRANCHISE LOCAL CHANNELS NEW ACQUISITION Large base of existing marketing services CHANNELS customers for prospecting (Zoos). thryv
Slide 14: Unfair Sales Advantage: Awards
14 UNFAIR SALES ADVANTAGE CLIENT ADORED: INDUSTRY RECOGNIZED © APPEALIE AWARD WINNER: 2022 Appealie SaaS Award Winner +*% AMER’ MOST LOVED \ Newswoek Newsweek's list of America’s 100 Most Loved Workplaces for 2022 thryv MERIT AWARDS 2022 Merit Awards for Technology Leader ae WATER 2023 waTER 2023 G2
Slide 15: Product Innovation
15 PRODUCT INNOVATION EVOLVING & EXPANDING thryy —sthryv Marketing Future Center Center acai Everything an SMB needs to run their day-to-day business and deliver an exceptional customer experience. 2021 2022 2023 2024 2025 thryv Pay. thryV App Market. Hub» thryv
Slide 16: Product Innovation: Marketing Center
16 PRODUCT INNOVATION tArYV Center 9 TURNS THIS... INTO THIS... customer INSIGHTS. PERFORMANCE ‘REPORTING COMPETITIVE CAMPAIGNS ONLINE DISCOVERY PERSONALIZED MARKETING Marketing is messy. Streamline all your Marketing efforts with Thryv’s Marketing Center. acai
Slide 17: Marketing Center
MARKETING CENTER Everything a small business needs to attract new customers, effectively market and grow their business. Visitor Tracking Easy to Use Toolkit With Thryv’s AutolD, we map the thrvv Marketing Level up your digital marketing device to the person calling or ryV Center. with easy-to-use t
Slide 18: SaaS Verticals
18 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 19: Reimagining the Customer Experience
19 REIMAGINING THE CUSTOMER EXPERIENCE RETENTION ONBOARDING GROWTH & ACCOUNT MANAGEMENT. SOLVING ADDITIONAL Le TO enSr PROBLEMS OVER TIME SERVICE AS A UE (TTFV) DIFFERENTIATOR LEADS TO RETENTION UNDERSTANDING & & GROWTH SOLVING THEIR PROBLEM thryv
Slide 20: 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 21: SaaS Targets
SAAS TARG ETS $4B 500K REVENUE SUBSCRIBERS >75% > >100% GROSS NET DOLLAR MARGIN RETENTION >20% >95% ADJUSTED EBITDA SAAS REVENUE OF MARGIN CONSOLIDATED REVENUE
Slide 22: 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 bi Yost aro consumers saying (Bout your tusness onto? = stories for a business. Whether customers are searching fetes hand . for a busine
Slide 23: Financial Review Q4 2022
thryv FINANCIAL REVIEW Q4 2022
Slide 24: 4th Quarter and FY Highlights
24 4th QUARTER and FY HIGHLIGHTS Note: Vivial contributed $89 million in reported revenue for the full year 2022. 4th Quarter Full Year $ in thousands 2022 2021 YoY% 2022 2021 YoY% Total SaaS Revenue $59,318 $47,475 24.9% $216,346 $171,052 26.5% Adjusted EBIDTA (2,222) (11,174) (13,393) (20,857) Adj
Slide 25: Financial Review: SaaS Highlights
25 FINANCIAL REVIEW SAAS HIGHLIGHTS +25% YoY +13% YoY +10% YoY +114% YoY Revenue Growth Growing Subscribers ARPU Expansion ThryvPay TPV
Slide 26: Q4 2022 Seasoned Net Dollar Retention and MAU
26 Q4 2022 SEASONED NET DOLLAR RETENTION (NDR) 41K 91% MONTHLY ACTIVE USER (MAU) +37% YoY
Slide 27: Total Marketing Services Billings
27 Note: Excludes Vivial Holdings Q4-22 Q4-21 Marketing Services Billings (millions) $192.8 $230.9 YoY % (17%) (22%) FINANCIAL REVIEW TOTAL MARKETING SERVICES
Slide 28: Total Marketing Services: High Sustained Adjusted EBITDA Margins
28 $200M FINANCIAL REVIEW TOTAL MARKETING SERVICES High Sustained Adjusted EBITDA Margins 2022 2021 2020 2019 2018 2017 Marketing Services Adjusted EBITDA Margin Marketing Services Revenue $986M $942M $980M $1,293M $1,660M $1,243M 35% 39% 37% 36% 36% 39%
Slide 29: Thryv Positioned to Create Long-Term Stakeholder Value
29 FINANCIAL REVIEW THRYV POSITIONED TO CREATE LONG-TERM STAKEHOLDER VALUE PRODUCT INNOVATION SUBSCRIBER GROWTH STAKEHOLDER VALUE CREATION INTERNATIONAL EXPANSION M&A REINVESTMENT 7°y IN GROWTH O,9 thryv
Slide 30: Q1 and FY 2023 Outlook
30 Q1 and FY 2023 OUTLOOK Company Provides Guidance For FY23 for SaaS and Marketing Services Q1 2023 Q2 2023 Q3 2023 Q4 2023 FY 2023 MANAGEMENT COMMENTARY TOTAL MARKETING SERVICES REVENUE $176 to $180 $182 to $186 $112 to $115 $165 to $168 $635 to $649 • Transition from 15 to 18 month print cycle cr
Slide 31: Appendix
APPENDIX
Slide 32: Appendix: Segment Results
32 APPENDIX SEGMENT RESULTS Years Ended December 31, 2022 Thryv U.S Thryv International (in thousands) Marketing Services SaaS Marketing Services SaaS Total Revenue $ 820,032 $ 211,801 $ 166,010 $ 4,545 $ 1,202,388 Segment Gross Profit 539,543 130,272 108,496 2,071 780,382 Segment Adjusted EBITDA 27
Slide 33: Adjusted EBITDA Reconciliation
33 $ IN THOUSANDS Q1-21 Q2-21 Q3-21 Q4-21 FY21 Q1-22 Q2-22 Q3-22 Q4-22 FY22 Net Income $ 36,506 $ 24,359 $ 35,624 $ 5,088 $ 101,577 $ 33,511 $ 58,002 $ 13,280 $ (50,445) $ 54,348 Income tax expense (benefit) 11,809 8,112 13,802 (986) 32,737 9,621 22,200 6,241 6,565 44,627 Interest expense 15,672 19,
Slide 34: Non-GAAP Financial Reconciliation: Adjusted Gross Profit
34 Reconciliation of Adjusted Gross Profit to Gross profit APPENDIX NON-GAAP FINANCIAL RECONCILIATION Three Months Ended December 31, 2022 Thryv U.S Thryv International (in thousands) Marketing Services SaaS Marketing Services SaaS Consolidated Reconciliation of Adjusted Gross Profit Gross profit $
Slide 35: Non-GAAP Financial Reconciliation: Adjusted Gross Profit
35 Reconciliation of Adjusted Gross Profit to Gross profit APPENDIX NON-GAAP FINANCIAL RECONCILIATION Years Ended December 31, 2022 Thryv U.S Thryv International (in thousands) Marketing Services SaaS Marketing Services SaaS Consolidated Reconciliation of Adjusted Gross Profit Gross profit $ 539,543
Slide 36: Supplemental Financial Information
36 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 37: Supplemental Financial Information
37 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 38: Free Cash Flow Reconciliation
38 APPENDIX FREE CASH FLOW RECONCILIATION Three Months Ended December 31, Years Ended December 31, (in thousands) 2022 2021 2022 2021 Net cash provided by operating activities $ 44,352 $ 49,032 $ 148,573 $ 170,571 Additions to fixed assets and capitalized software (9,888) (6,796) (29,233) (26,849) F
Slide 39: Domestic Print Publishing Schedule
39 APPENDIX DOMESTIC PRINT PUBLISHING SCHEDULE _ PUBLICATIONS @ Per ASC 606 accounting policy, print revenue is recognized upfront at the time of shipment. In 2022, the company extended publication cycles of most domestic print directories from 15 months to 18 months, which has shifted the shipment
Slide 40: Definitions
APPENDIX thryv 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