Thryv Holdings, Inc. · NASDAQ:THRY
Thryv — Q1 2023 Earnings Presentation
26 slides from Thryv's earnings presentation, May 4, 2023
Slide 1: 1st Quarter 2023 Investor Presentation
Exhibit 99.2 1st 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: Small Business Is...
thryv SMALL BUSINESS IS
Slide 4: All-in-one small business management software
thryv ALL-IN-ONE SMALL BUSINESS MANAGEMENT SOFTWARE. Job / Roof Repair = Payments Received $39,299.5 USD One login, one dashboard $38,578.5 USD to run your entire business. $721 USD $60.00 USD woice #0000036 &S PAID $310.82 USD PRS Pee
Slide 5: One solution that does it all
ONE SOLUTION THAT DOES IT ALL. All connected to a powerful CRM. Finally streamline your business by automating the busy work. Manage everything without ever leaving the app. Payments Invoicing Scheduling Customer Reviews Marketing Social Media
Slide 6: 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 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 DIFFERENTIATED BUSINESS MODEL DRIVING LONG-TERM GROWTH & SUSTAINABILITY “Free” SaaS Acquired “s 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 & INSURAN
Slide 9: Product Innovation
PRODUCT INNOVATION EVOLVING & EXPANDING thryy —thryv thryv Lifetime Value Customer Marketing Future Center Center 2021 2022 2023 2024 thryv 2025 thryv Pay. thryv App Market Thryv Everything an SMB needs to run their day-to-day business and deliver an exceptional customer experience. Hub» thryv
Slide 10: Product Innovation: Marketing Center
10 PRODUCT INNOVATION thryv cents. 9 TURNS THIS... INTO THIS... thryv Marketing Center. CUSTOMER INSIGHTS PERFORMANCE ‘& REPORTING. COMPETITIVE ‘CAMPAIGNS ‘ONLINE DISCOVERY PERSONALIZED MARKETING Marketing is messy. Streamline all your Marketing efforts with Thryv’s Marketing Center. thryv
Slide 11: Easy to Use Toolkit
" Easy to Use Toolkit Level up your digital marketing with easy- to-use tools that give you an edge over the competition. thryv Everything a small business needs to attract new customers, PRODUCT INNOVATION Marketing Center. effectively market and grow their business. Visitor Tracking With Thryv's A
Slide 12: 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 13: 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 14: 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 15: Financial Review Q1 2023
thryv FINANCIAL REVIEW Q1 2023
Slide 16: 1st Quarter Highlights
16 1st QUARTER HIGHLIGHTS 1st Quarter $ in thousands 2023 2022 Total SaaS Revenue $59,929 $48,178 Adjusted EBIDTA (204) (6,775) Adjusted EBIDTA Margin (0.3)% (14.1)% Total Marketing Services Revenue $185,626 $260,197 Adjusted EBIDTA 58,673 90,492 Adjusted EBIDTA Margin 31.6% 34.8% Consolidated Reven
Slide 17: Financial Review: SaaS Highlights
17 FINANCIAL REVIEW SAAS HIGHLIGHTS $48.2 $59.9 Revenue Q1-22 Q1-23 +24% YoY +15% YoY +8% YoY $45M +78% YoY Revenue Growth Growing Subscribers ARPU Expansion ThryvPay TPVSeasoned Net Dollar Retention (NDR) 45K 91% Monthly Active Users (MAU) +25% YoY
Slide 18: Financial Review: Total Marketing Services
18 (1) Marketing Services Billings includes Vivial Holdings subsequent to the January 21, 2022 acquisition date. As Vivial is not included in 2021 billings data the Company's 2022 historical billings YOY percentages are more comparable to the current period. Q1-23 Q1-22 Marketing Services Billings (
Slide 19: Q2 and FY 2023 Outlook
19 Q2 and FY 2023 OUTLOOK Company Provides Guidance For FY23 for SaaS and Marketing Services (in millions, USD) Q2 2023 Q3 2023 Q4 2023 FY 2023 MANAGEMENT COMMENTARY TOTAL MARKETING SERVICES REVENUE $188 to $190 $114 to $118 $166 to $170 $653 to $663 • Transition from 15 to 18 month print cycle crea
Slide 20: Appendix
APPENDIX
Slide 21: Segment Results
21 APPENDIX SEGMENT RESULTS Three Months Ended March 31, 2022 Thryv U.S. Thryv International (in thousands) Marketing Services SaaS Marketing Services SaaS Total Revenue $ 212,533 $ 47,343 $ 47,664 $ 835 $ 308,375 Segment Gross Profit 136,510 29,409 31,716 221 197,856 Segment Adjusted EBITDA 66,395
Slide 22: Non-GAAP Financial Reconciliation
22 $ IN THOUSANDS Q1-22 Q2-22 Q3-22 Q4-22 FY22 Q1-23 Net Income (Loss) $ 33,511 $ 58,002 $ 13,280 $ (50,445) $ 54,348 $ 9,314 Income tax expense 9,621 22,200 6,241 6,565 44,627 4,496 Interest expense 14,867 14,652 14,570 16,318 60,407 16,488 Depreciation and amortization expense 21,969 20,592 23,393
Slide 23: Reconciliation of Adjusted Gross Profit to Gross Profit
23 Reconciliation of Adjusted Gross Profit to Gross profit APPENDIX NON-GAAP FINANCIAL RECONCILIATION Three Months Ended March 31, 2023 Thryv U.S. Thryv International (in thousands) Marketing Services SaaS Marketing Services SaaS Consolidated Reconciliation of Adjusted Gross Profit Gross profit $ 93
Slide 24: Supplemental Financial Information
24 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 25: Domestic Print Publishing Schedule
25 APPENDIX DOMESTIC PRINT PUBLISHING SCHEDULE thryv PUBLICATIONS 600 400 QU-22 Q2-22 Q322 Q422 Q1-23 Q2-23E QB-23BE Q4-23E Q1-24E Q2-2ME Q3-4E 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 most
Slide 26: Definitions of Key Terms
26 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