Thryv Holdings, Inc.NASDAQ: THRY

Thryv Grows SaaS Revenue 25% in Second Quarter 2024, Raises Full Year 2024 SaaS Adjusted EBITDA Guidance

· Issued by Thryv Holdings, Inc. via Business Wire
Watch Thryv explain itThryv Holdings, Inc. (THRY) Q2 2026 Earnings Call · Replay · Aug 4

– Grows SaaS subscribers over 50% year-over-year – Q2 2024 SaaS Adjusted EBITDA exceeds guidance range by $2 million

DALLAS--(BUSINESS WIRE)-- Thryv Holdings, Inc. (NASDAQ:THRY) (“Thryv” or the “Company”), the provider of Thryv®, the leading small business software platform, reported SaaS revenue growth of 25% year-over-year in the second quarter of 2024.

“We had a strong second quarter driven by 52% subscriber growth year-over-year, ending at 85,000 clients,” said Joe Walsh, Thryv Chairman and CEO. “We have been successfully upgrading our marketing service clients to our SaaS platform and our center strategy is gaining traction, with more than 10% of current clients having two or more paid centers, up from 2% this time last year. In addition, we are actively enhancing our AI capabilities so our clients can more efficiently grow and operate their business. We are pleased with the progress of our product initiatives."

“We reported solid second quarter results and are raising our full year Adjusted EBITDA guidance for SaaS,” stated Paul Rouse, Chief Financial Officer. “In the second quarter, we reported SaaS revenue growth of 25% and exceeded our SaaS Adjusted EBITDA guidance, delivering our highest SaaS Adjusted EBITDA margin since becoming a public company.”

Second Quarter 2024 Highlights:

  • Total SaaS revenue was $77.8 million, a 25% increase year-over-year
  • Total Marketing Services revenue was $146.3 million, a 23% decrease year-over-year
  • Consolidated total revenue was $224.1 million, a decrease of 11% year-over-year
  • Consolidated net income was $5.5 million, or $0.15 per diluted share; compared to net income of $16.0 million, or $0.43 per diluted share, for the second quarter of 2023
  • Consolidated Adjusted EBITDA was $59.3 million, representing an Adjusted EBITDA margin of 26.5%
  • Total SaaS Adjusted EBITDA was $10.2 million, representing an Adjusted EBITDA margin of 13.1%
  • Total Marketing Services Adjusted EBITDA was $49.1 million, representing an Adjusted EBITDA margin of 33.6%
  • Consolidated Gross Profit was $148.6 million
  • Consolidated Adjusted Gross Profit1 was $154.6 million
  • SaaS Gross Profit was $52.3 million
  • SaaS Adjusted Gross Profit was $54.2 million, representing an Adjusted Gross Profit Margin of 69.7%

SaaS Metrics

  • Total SaaS clients increased 52% year-over-year to 85 thousand for the second quarter of 2024
  • Seasoned Net Dollar Retention2 was 94% for the second quarter of 2024, an increase of 500 bps year-over-year
  • SaaS monthly Average Revenue per Unit (“ARPU”)3 was $333 for the second quarter of 2024
  • ThryvPay total payment volume was $80 million, an increase of 34% year-over-year

Outlook

Based on information available as of August 1, 2024, Thryv is issuing guidance4 for the third quarter of 2024 and full year 2024 as indicated below:

3rd Quarter

Full Year

(in millions)

2024

2024

SaaS Revenue

$82 - $84

$326 - $329

SaaS Adjusted EBITDA

$9 - $10

$30 - $32

3rd Quarter

4th Quarter

Full Year

(in millions)

2024

2024

2024

Marketing Services Revenue

$94 - $97

$85 - $89

$485 - $492

Marketing Services Adjusted EBITDA

$128 - $131

_______________

1Defined as Gross profit adjusted to exclude the impact of depreciation and amortization expense and stock-based compensation expense.

2Seasoned Net Dollar Retention is defined as net dollar retention excluding clients acquired over the previous 12 months.
3Defined as total client billings for a particular month divided by the number of clients that have one or more revenue-generating solutions in that same month.
4These statements are forward-looking and actual results may materially differ. Refer to the “Forward-Looking Statements” section below for information on the factors that could cause our actual results to materially differ from these forward-looking statements.

Earnings Conference Call Information

Thryv will host a conference call on Thursday, August 1, 2024 at 8:30 a.m. (Eastern Time) to discuss the Company's second quarter 2024 results.

For analysts to register for this conference call, please use this link. After registering, a confirmation email will be sent, including dial-in details and a unique code for entry. We recommend registering a day in advance or at a minimum thirty minutes prior to the start of the call. To listen to the webcast, please use this link or visit Thryv's Investor Relations website at investor.thryv.com. A live webcast will also be available on the Investor Relations section of the Company's website at investor.thryv.com.

If you are unable to participate in the conference call, a replay will be available. To access the replay, please dial (800) 770-2030 or (647) 362-9199 and enter “83373.”

Thryv Holdings, Inc. and Subsidiaries

Consolidated Statements of Operations and Comprehensive Income

 

Three Months Ended

Six Months Ended

June 30,

June 30,

(in thousands, except share and per share data)

2024

2023

2024

2023

Revenue

$

224,084

$

251,421

$

457,708

$

496,976

Cost of services

75,496

91,336

155,479

182,083

Gross profit

148,588

160,085

302,229

314,893

Operating expenses:

Sales and marketing

65,409

75,683

135,500

152,026

General and administrative

51,841

53,695

104,257

101,375

Total operating expenses

117,250

129,378

239,757

253,401

Operating income

31,338

30,707

62,472

61,492

Other income (expense):

Interest expense

(10,001

)

(16,292

)

(23,360

)

(32,780

)

Interest expense, related party

(2,174

)

—

(2,174

)

—

Other components of net periodic pension cost

(1,581

)

(1,865

)

(3,162

)

(1,986

)

Other expense

(5,416

)

—

(7,789

)

(366

)

Income before income tax (expense) benefit

12,166

12,550

25,987

26,360

Income tax (expense) benefit

(6,618

)

3,428

(12,015

)

(1,068

)

Net income

$

5,548

$

15,978

$

13,972

$

25,292

Other comprehensive income (loss):

Foreign currency translation adjustment, net of tax

67

(302

)

(198

)

(2,490

)

Comprehensive income

$

5,615

$

15,676

$

13,774

$

22,802

Net income per common share:

Basic

$

0.15

$

0.46

$

0.39

$

0.73

Diluted

$

0.15

$

0.43

$

0.37

$

0.68

Weighted-average shares used in computing basic and diluted net income per common share:

Basic

36,004,324

34,575,338

35,818,549

34,625,561

Diluted

37,631,825

36,863,295

38,032,132

36,956,933

Thryv Holdings, Inc. and Subsidiaries

Consolidated Balance Sheets

 

(in thousands, except share data)

June 30, 2024

December 31, 2023

Assets

Current assets

Cash and cash equivalents

$

15,519

$

18,216

Accounts receivable, net of allowance of $18,042 in 2024 and $14,926 in 2023

193,725

205,503

Contract assets, net of allowance of $37 in 2024 and $35 in 2023

8,118

2,909

Taxes receivable

1,516

3,085

Prepaid expenses

23,124

17,771

Deferred costs

12,796

16,722

Other current assets

5,822

2,662

Total current assets

260,620

266,868

Fixed assets and capitalized software, net

37,805

38,599

Goodwill

300,995

302,400

Intangible assets, net

6,640

18,788

Deferred tax assets

152,171

128,051

Other assets

27,252

28,464

Total assets

$

785,483

$

783,170

Liabilities and Stockholders' Equity

Current liabilities

Accounts payable

$

8,661

$

10,348

Accrued liabilities

110,193

105,903

Current portion of unrecognized tax benefits

25,060

23,979

Contract liabilities

25,668

44,558

Current portion of Term Loan

35,783

70,000

Current portion of Term Loan, related party

16,717

—

Other current liabilities

6,022

8,402

Total current liabilities

228,104

263,190

Term Loan, net

183,772

230,052

Term Loan, net, related party

87,820

—

ABL Facility

18,000

48,845

Pension obligations, net

72,279

69,388

Other liabilities

12,448

18,995

Total long-term liabilities

374,319

367,280

Commitments and contingencies

Stockholders' equity

Common stock - $0.01 par value, 250,000,000 shares authorized; 63,808,097 shares issued and 36,294,269 shares outstanding at June 30, 2024; and 62,660,783 shares issued and 35,302,746 shares outstanding at December 31, 2023

638

627

Additional paid-in capital

1,170,798

1,151,259

Treasury stock - 27,513,828 shares at June 30, 2024 and 27,358,037 shares at December 31, 2023

(488,757

)

(485,793

)

Accumulated other comprehensive loss

(15,389

)

(15,191

)

Accumulated deficit

(484,230

)

(498,202

)

Total stockholders' equity

183,060

152,700

Total liabilities and stockholders' equity

$

785,483

$

783,170

Thryv Holdings, Inc. and Subsidiaries

Consolidated Statements of Cash Flows

 

Six Months Ended June 30,

(in thousands)

2024

2023

Cash Flows from Operating Activities

Net income

$

13,972

$

25,292

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization

28,625

31,098

Amortization of deferred commissions

9,624

5,032

Amortization of debt issuance costs

2,255

2,721

Deferred income taxes

(24,060

)

(9,135

)

Provision for credit losses and service credits

12,179

11,580

Stock-based compensation expense

11,642

11,191

Other components of net periodic pension cost

3,162

1,986

Loss (gain) on foreign currency exchange rates

1,151

(881

)

Non-cash loss from the remeasurement of the indemnification asset

—

10,734

Loss on early extinguishment of debt

6,638

—

Other

(3,170

)

—

Changes in working capital items, excluding acquisitions:

Accounts receivable

923

25,075

Contract assets

(5,210

)

837

Prepaid expenses and other assets

(10,614

)

10,090

Accounts payable and accrued liabilities

2,428

(38,654

)

Other liabilities

(21,885

)

(29,230

)

Net cash provided by operating activities

27,660

57,736

Cash Flows from Investing Activities

Additions to fixed assets and capitalized software

(16,230

)

(14,016

)

Acquisition of a business, net of cash acquired

—

(8,897

)

Other

—

(217

)

Net cash used in investing activities

(16,230

)

(23,130

)

Cash Flows from Financing Activities

Proceeds from Term Loan

234,256

—

Proceeds from Term Loan, related party

109,444

—

Payments of Term Loan

(318,654

)

(52,500

)

Payments of Term Loan, related party

(4,339

)

—

Proceeds from ABL Facility

230,079

483,473

Payments of ABL Facility

(260,924

)

(469,750

)

Debt issuance costs

(5,319

)

—

Purchase of treasury stock

(499

)

—

Other

5,442

3,826

Net cash used in financing activities

(10,514

)

(34,951

)

Effect of exchange rate changes on cash, cash equivalents and restricted cash

(448

)

(240

)

Increase (decrease) in cash, cash equivalents and restricted cash

468

(585

)

Cash, cash equivalents and restricted cash, beginning of period

20,530

18,180

Cash, cash equivalents and restricted cash, end of period

$

20,998

$

17,595

Supplemental Information

Cash paid for interest

$

24,378

$

29,592

Cash paid for income taxes, net

$

13,343

$

7,419

Non-cash investing and financing activities

Repurchase of Treasury stock as a result of the settlement of the indemnification asset

$

—

$

15,760

Segment Information

During first quarter of 2024, the Company changed the internal reporting provided to the chief operating decision maker (“CODM”). As a result, the Company reevaluated its segment reporting and determined that Thryv U.S. Marketing Services and Thryv International Marketing Services should be reflected as a single reportable segment, and that Thryv U.S. SaaS and Thryv International SaaS should be reflected as a single reportable segment. As such, beginning on January 1, 2024, the results of our Marketing Services and SaaS businesses will be presented as two reportable segments. Comparative prior periods have been recast to reflect the current presentation.

The following tables summarize the operating results of the Company's reportable segments:

Three Months Ended June 30,

Change

(in thousands)

2024

2023

Amount

%

Revenue

Marketing Services

$

146,290

$

188,963

$

(42,673

)

(22.6

)%

SaaS

77,794

62,458

15,336

24.6

%

Total Revenue

$

224,084

$

251,421

$

(27,337

)

(10.9

)%

Segment Gross Profit

Marketing Services

$

96,299

$

120,875

$

(24,576

)

(20.3

)%

SaaS

52,289

39,210

13,079

33.4

%

Consolidated Segment Gross Profit

$

148,588

$

160,085

$

(11,497

)

(7.2

)%

Segment EBITDA

Marketing Services

$

49,149

$

63,209

$

(14,060

)

(22.2

)%

SaaS

10,165

6,230

3,935

63.2

%

Consolidated Adjusted EBITDA

$

59,314

$

69,439

$

(10,125

)

(14.6

)%

Six Months Ended June 30,

Change

(in thousands)

2024

2023

Amount

%

Revenue

Marketing Services

$

305,592

$

374,589

$

(68,997

)

(18.4

)%

SaaS

152,116

122,387

29,729

24.3

%

Total Revenue

$

457,708

$

496,976

$

(39,268

)

(7.9

)%

Segment Gross Profit

Marketing Services

$

200,845

$

238,529

$

(37,684

)

(15.8

)%

SaaS

101,384

76,364

25,020

32.8

%

Consolidated Segment Gross Profit

$

302,229

$

314,893

$

(12,664

)

(4.0

)%

Segment EBITDA

Marketing Services

$

99,828

$

121,882

$

(22,054

)

(18.1

)%

SaaS

13,600

6,026

7,574

125.7

%

Consolidated Adjusted EBITDA

$

113,428

$

127,908

$

(14,480

)

(11.3

)%

Non-GAAP Measures

Our results included in this press release include Adjusted EBITDA, Adjusted EBITDA Margin and Adjusted Gross Profit, which are not presented in accordance with U.S. generally accepted accounting principles (“GAAP”). These non-GAAP measures are presented for supplemental informational purposes only and are not intended to be considered in isolation or as a substitute for, or superior to, financial information prepared and presented in accordance with GAAP. Please refer to the supplemental information presented in the tables below for a reconciliation of Adjusted EBITDA to Net income and Adjusted Gross Profit to Gross profit. Both Net income and Gross profit are the most comparable GAAP financial measure to Adjusted EBITDA and Adjusted Gross Profit, respectively. Adjusted EBITDA margin is defined as Adjusted EBITDA divided by revenue.

We believe that these non-GAAP financial measures provide useful information about our financial performance, enhance the overall understanding of our past performance and allow for greater transparency with respect to important metrics used by our management for financial and operational decision-making. We believe that these measures provide additional tools for investors to use in comparing our core financial performance over multiple periods with other companies in our industry. However, it is important to note that the particular items we exclude from, or include in, our non-GAAP financial measures may differ from the items excluded from, or included in, similar non-GAAP financial measures used by other companies in the same industry.

The following is a reconciliation of Adjusted EBITDA to its most directly comparable GAAP measure, Net Income:

Three Months Ended June 30,

Six Months Ended June 30,

(in thousands)

2024

2023

2024

2023

Reconciliation of Adjusted EBITDA

Net income

$

5,548

$

15,978

$

13,972

$

25,292

Interest expense

12,175

16,292

25,534

32,780

Depreciation and amortization expense

14,072

15,667

28,625

31,098

Stock-based compensation expense (1)

6,353

5,798

11,642

11,191

Restructuring and integration expenses (2)

7,553

3,921

12,818

9,261

Income tax expense (benefit)

6,618

(3,428

)

12,015

1,068

Transaction costs (3)

—

—

—

373

Other components of net periodic pension cost (4)

1,581

1,865

3,162

1,986

Loss on early extinguishment of debt (5)

6,638

—

6,638

—

Non-cash loss from remeasurement of indemnification asset (6)

—

11,490

—

10,734

Other (7)

(1,224

)

1,856

(978

)

4,125

Adjusted EBITDA

$

59,314

$

69,439

$

113,428

$

127,908

(1)

We record stock-based compensation expense related to the amortization of grant date fair value of the Company’s stock-based compensation awards.

(2)

For the three and six months ended June 30, 2024 and 2023, expenses relate to periodic efforts to enhance efficiencies and reduce costs, and include severance benefits, and costs associated with abandoned facilities and system consolidation.

(3)

Expenses related to the Yellow acquisition and other transaction costs.

(4)

Other components of net periodic pension cost is from our non-contributory defined benefit pension plans that are currently frozen and incur no additional service costs. The most significant component of Other components of net periodic pension cost relates to periodic mark-to-market pension remeasurement.

(5)

In connection with the debt refinancing completed on May 1, 2024, the Company recorded a Loss on early extinguishment of debt related to the write-off of certain unamortized debt issuance costs on the Company's Prior Term Loan and Prior ABL Facility.

(6)

In connection with the YP acquisition, the seller indemnified us for future potential losses associated with certain federal and state tax positions taken in tax returns filed by the seller prior to the acquisition date.

(7)

Other primarily represents foreign exchange-related expense (income).

The following tables set forth reconciliations of Adjusted Gross Profit and Adjusted Gross Margin, to their most directly comparable GAAP measures, Gross profit and Gross margin:

Three Months Ended June 30, 2024

(in thousands)

Marketing Services

SaaS

Total

Reconciliation of Adjusted Gross Profit

Gross profit

$

96,299

$

52,289

$

148,588

Plus:

Depreciation and amortization expense

3,989

1,877

5,866

Stock-based compensation expense

98

76

174

Adjusted Gross Profit

$

100,386

$

54,242

$

154,628

Gross Margin

65.8

%

67.2

%

66.3

%

Adjusted Gross Margin

68.6

%

69.7

%

69.0

%

Three Months Ended June 30, 2023

(in thousands)

Marketing Services

SaaS

Total

Reconciliation of Adjusted Gross Profit

Gross profit

$

120,875

$

39,210

$

160,085

Plus:

Depreciation and amortization expense

6,208

1,416

7,624

Stock-based compensation expense

119

54

173

Adjusted Gross Profit

$

127,202

$

40,680

$

167,882

Gross Margin

64.0

%

62.8

%

63.7

%

Adjusted Gross Margin

67.3

%

65.1

%

66.8

%

Six Months Ended June 30, 2024

(in thousands)

Marketing Services

SaaS

Total

Reconciliation of Adjusted Gross Profit

Gross profit

$

200,845

$

101,384

$

302,229

Plus:

Depreciation and amortization expense

8,061

3,581

11,642

Stock-based compensation expense

211

136

347

Adjusted Gross Profit

$

209,117

$

105,101

$

314,218

Gross Margin

65.7

%

66.6

%

66.0

%

Adjusted Gross Margin

68.4

%

69.1

%

68.7

%

Six Months Ended June 30, 2023

(in thousands)

Marketing Services

SaaS

Total

Reconciliation of Adjusted Gross Profit

Gross profit

$

238,529

$

76,364

$

314,893

Plus:

Depreciation and amortization expense

11,905

2,702

14,607

Stock-based compensation expense

222

100

322

Adjusted Gross Profit

$

250,656

$

79,166

$

329,822

Gross Margin

63.7

%

62.4

%

63.4

%

Adjusted Gross Margin

66.9

%

64.7

%

66.4

%

Supplemental Financial Information

The following supplemental financial information provides Revenue, Adjusted EBITDA and Adjusted EBITDA Margin by (i) Marketing Services businesses and (ii) SaaS businesses. Total SaaS Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP financial measures. Total Marketing Services Adjusted EBITDA and Adjusted EBITDA margin are also non-GAAP financial measures. These non-GAAP financial measures are presented for supplemental informational purposes only and are not intended to be considered in isolation or as a substitute for, or superior to, financial information prepared and presented in accordance with GAAP. Please refer to the supplemental information presented in the tables below for a reconciliation of these non-GAAP financial measures to the corresponding segment financial measures presented in accordance with GAAP.

We believe that these non-GAAP financial measures provide useful information about our global SaaS and Marketing Services financial performance, enhance the overall understanding of our global SaaS and Marketing Services past financial performance and allow for greater transparency with respect to important metrics used by our management for financial and operational decision-making. We believe that these measures provide additional tools for investors to use in comparing our core financial performance over multiple periods.

Three Months Ended June 30, 2024

(in thousands)

Marketing Services

SaaS

Total

Revenue

$

146,290

$

77,794

$

224,084

Adjusted EBITDA

49,149

10,165

59,314

Adjusted EBITDA Margin

33.6

%

13.1

%

26.5

%

Three Months Ended June 30, 2023

(in thousands)

Marketing Services

SaaS

Total

Revenue

$

188,963

$

62,458

$

251,421

Adjusted EBITDA

63,209

6,230

69,439

Adjusted EBITDA Margin

33.5

%

10.0

%

27.6

%

Six Months Ended June 30, 2024

(in thousands)

Marketing Services

SaaS

Total

Revenue

$

305,592

$

152,116

$

457,708

Adjusted EBITDA

99,828

13,600

113,428

Adjusted EBITDA Margin

32.7

%

8.9

%

24.8

%

Six Months Ended June 30, 2023

(in thousands)

Marketing Services

SaaS

Total

Revenue

$

374,589

$

122,387

$

496,976

Adjusted EBITDA

121,882

6,026

127,908

Adjusted EBITDA Margin

32.5

%

4.9

%

25.7

%

Forward-Looking Statements

Certain statements contained herein are not historical facts, constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and involve a number of risks and uncertainties. Statements that include the words “may”, “will”, “could”, “should”, “would”, “believe”, “anticipate”, “forecast”, “estimate”, “expect”, “preliminary”, “intend”, “plan”, “target”, “project”, “outlook”, “future”, “forward”, “guidance” and similar statements of a future or forward-looking nature identify forward-looking statements. These statements are not guarantees of future performance. These forward-looking statements are based on our current expectations and beliefs concerning future developments and their potential effect on us. While management believes that these forward-looking statements are reasonable as and when made, there can be no assurance that future developments affecting us will be those that we anticipate. Accordingly, there are or will be important factors that could cause our actual results to differ materially from those indicated in these statements. We believe that these factors include, but are not limited to, the risks related to the following: the Company’s ability to maintain adequate liquidity to fund operations; the Company’s future operating and financial performance; the Company’s ability to consummate acquisitions, or, if consummated, to successfully integrate acquired businesses into the Company’s operations, the Company’s ability to recognize the benefits of acquisitions, or the failure of an acquired company to achieve its plans and objectives; limitations on our operating and strategic flexibility and the ability to operate our business, finance our capital needs or expand business strategies under the terms of our credit facilities; our ability to retain existing business and obtain and retain new business; general economic or business conditions affecting the markets we serve; declining use of print yellow page directories by consumers; our ability to collect trade receivables from clients to whom we extend credit; credit risk associated with our reliance on small and medium sized businesses as clients; our ability to attract and retain key managers; increased competition in our markets; our ability to obtain future financing due to changes in the lending markets or our financial position; our ability to maintain agreements with major Internet search and local media companies; reduced advertising spending and increased contract cancellations by our clients, which causes reduced revenue; and our ability to anticipate or respond effectively to changes in technology and consumer preferences as well as the risks and uncertainties set forth in the Company's most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission. All subsequent written and oral forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by such cautionary statements.

If one or more events related to these or other risks or uncertainties materialize, or if our underlying assumptions prove to be incorrect, actual results may differ materially from what we anticipate. For these reasons, we caution you against relying on forward-looking statements. All forward-looking statements included in this press release are expressly qualified in their entirety by the foregoing cautionary statements. These forward-looking statements speak only as of the date hereof and, other than as required by law, we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

About Thryv

Thryv Holdings, Inc. (NASDAQ:THRY) is the provider of the leading do-it-all small business software platform that empowers small businesses to modernize how they work. It offers small business owners everything they need to communicate effectively, manage their day-to-day operations, and grow — all in one place — giving up to 20 hours back in their week. Thryv's customizable platform features three centers: Thryv Command Center, a freemium central communications hub, Business CenterSM and Marketing CenterSM. Over 300,000 businesses globally use Thryv to connect with local customers and take care of everything they do, start to finish. For more information, visit thryv.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240801664269/en/

Media Contact: Julie Murphy Thryv, Inc. 617.967.5426 julie.murphy@thryv.com

Investor Contact: Cameron Lessard Thryv, Inc. 214.773.7022 cameron.lessard@thryv.com

Source: Thryv