Thryv Grows SaaS Revenue 29% Year-Over-Year for First Quarter 2022

May 04, 2022 at 16:00 PM EDT

Raises Revenue Guidance for Full Year 2022

Thryv Holdings, Inc. (NASDAQ:THRY) (“Thryv” or the “Company”), the small business platform for growing small and medium sized businesses (“SMBs”), announced that it grew SaaS revenue 29% year-over-year in Q1 of 2022 and is raising revenue guidance for full year 2022.

“We are pleased to report a strong first quarter,” said Joe Walsh, Chairman and CEO. “We saw an increase in revenue overall and outstanding growth in our SaaS revenue, ahead of our SaaS revenue guidance targets. In addition, we continue to drive new subscribers and expect double-digit subscriber growth in 2022. These results demonstrate that SMBs are starting the move to the cloud and modernize the way they run their businesses.”

“We are seeing this shift in the U.S. and also in our international operations, including our recent expansion to Canada. In support of our international expansion, we recently announced the hiring of Marie Caron as our President - International Markets. Marie's experience and her leadership will be critical in fueling our international expansion.”

“We also recently held a successful investor and analyst day in New York City, where we shared a longer term vision for Thryv, targeting $1 billion in SaaS revenue by 2027 and our plan for achieving that goal,” said Walsh. “We view the next ten years as the decade of cloud adoption by SMBs and we are well positioned to lead the category.”

First Quarter 2022 Financial Highlights:

Revenue

Total SaaS¹ revenue was $48.2 million, a 29.3% increase year-over-year
Total Marketing Services revenue was $260.2 million, a 6.9% increase year-over-year
Consolidated total revenue was $308.4 million, an increase of 9.9% year-over-year

Profitability

Consolidated net income was $33.5 million
Consolidated Adjusted EBITDA² was $83.7 million, representing an Adjusted EBITDA margin of 27.1%
Total SaaS³ Adjusted EBITDA loss was $6.8 million
Total Marketing Services⁴ Adjusted EBITDA was $90.5 million, representing an Adjusted EBITDA margin of 34.8%
Consolidated Gross Profit was $197.9 million, an increase of 8.4% year-over-year
Consolidated Adjusted Gross Profit⁵ was $207.7 million
SaaS Adjusted Gross Profit⁶ was $30.4 million, representing an Adjusted Gross Profit Margin of 64.2%

SaaS Metrics

SaaS monthly Average Revenue per Unit (“ARPU”)⁷ increased to $352 for the first quarter of 2022, compared to $304 in the first quarter of 2021
Total SaaS clients increased by 3 thousand to 47 thousand for the first quarter of 2022
Seasoned Net Dollar Retention⁸ was 93% at end of the first quarter of 2022
SaaS monthly active users⁹ increased 16% year-over-year to 36 thousand active users. Daily and weekly users increased 21% year-over-year.

Outlook

Based on information available as of May 4, 2022, Thryv is raising guidance¹⁰ for the second quarter of 2022 and full year 2022 as indicated below:

For the second quarter of 2022, the Company expects:

Total SaaS revenue in a range of $50.5 to $51.0 million
Total SaaS Adjusted EBITDA loss¹¹ in a range of $6.0 to $6.5 million
Total Marketing Services revenue in a range of $255 to $260 million

For the full year 2022, the Company currently expects:

Total SaaS revenue in a range of $208 to $209 million
Total SaaS Adjusted EBITDA loss¹¹ in a range of $21 to $25 million
Total Marketing Services revenue in a range of $905 to $920 million
Total Marketing Services Adjusted EBITDA¹² in a range of $315 to $320 million

Earnings Conference Call Information

Thryv will host a conference call on Wednesday, May 4, 2022 at 4:30 p.m. (Eastern Time) to discuss the Company's first quarter results.

To register for this conference call, please use this link or visit Thryv's Investor Relations website at investor.thryv.com. 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. 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 “87769.”

¹		Total SaaS revenue in the U.S. and International was $47.3 million and $0.8 million for the three months ended March 31, 2022, respectively.
²		Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP financial measures. See “Non-GAAP Measures” below for additional information.
³		Total SaaS Adjusted EBITDA loss in the U.S. and International was $4.4 million and $2.4 million for the three months ended March 31, 2022, respectively. Total SaaS Adjusted EBITDA loss is a non-GAAP financial measure. See “Supplemental Financial Information” below for more information.
⁴		Total Marketing Services Adjusted EBITDA in the U.S. and International was $66.4 million and $24.1 million for the three months ended March 31, 2022, respectively. Total Marketing Services Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP financial measures. See “Supplemental Financial Information” below for more information.
⁵		Adjusted Gross Profit is a non-GAAP financial measure. See “Non-GAAP Measures" below for additional information.
⁶		SaaS Adjusted Gross Profit and Adjusted Gross Profit margin are non-GAAP financial measures. See “Supplemental Financial Information” below for more information.
⁷		Defined as total client billings by month divided by the number of revenue-generating units during the month.
⁸		Seasoned Net Dollar Retention is defined as net dollar retention excluding clients acquired over the previous 12 months.
⁹		Defined as a client with one or more users who log into our SaaS solutions at least once during the calendar month.
¹⁰		These 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.
¹¹		A reconciliation of Total SaaS Adjusted EBITDA loss, a non-GAAP financial measure, to a corresponding GAAP measure is not available on a forward-looking basis without unreasonable efforts due to the unavailability of reconciling information, including income tax expense and net periodic pension cost.
¹²		A reconciliation of Total Marketing Services Adjusted EBITDA, a non-GAAP financial measure, to a corresponding GAAP measure is not available on a forward-looking basis without unreasonable efforts due to the unavailability of reconciling information, including income tax expense and net periodic pension cost.

Final Results
Thryv Holdings, Inc. and Subsidiaries
Consolidated Statements of Operations and Comprehensive Income

	Three Months Ended March 31,
	Three Months Ended March 31,
(in thousands, except share and per share data)	2022			2021
Revenue	$	308,375		$	280,606
Cost of services		110,519			98,160
Gross profit		197,856			182,446

Operating expenses:
Sales and marketing		93,955			76,540
General and administrative		52,194			41,279
Total operating expenses		146,149			117,819

Operating income		51,707			64,627
Other income (expense):
Interest expense		(13,108	)		(11,607	)
Interest expense, related party		(1,759	)		(4,065	)
Other components of net periodic pension benefit (cost)		70			453
Other income (expense)		6,222			(1,093	)
Income before income tax		43,132			48,315
Income tax expense		(9,621	)		(11,809	)
Net income	$	33,511		$	36,506
Other comprehensive income (loss):
Foreign currency translation adjustment		5,448			(2,967	)
Comprehensive income	$	38,959		$	33,539

Net income per common share:
Basic	$	0.98		$	1.10
Diluted	$	0.88		$	1.07

Weighted-average shares used in computing basic and diluted net income per common share:
Basic		34,159,979			33,108,422
Diluted		37,957,685			34,013,480

Thryv Holdings, Inc. and Subsidiaries Consolidated Balance Sheets

(in thousands, except share data)	March 31, 2022			December 31, 2021
Assets	(unaudited)
Current assets
Cash and cash equivalents	$	21,446		$	11,262
Accounts receivable, net of allowance of $17,702 in 2022 and $17,387 in 2021		305,729			279,053
Contract assets, net of allowance of $59 in 2022 and $88 in 2021		4,062			5,259
Taxes receivable		15,248			14,711
Prepaid expenses		43,112			22,418
Indemnification asset		24,746			24,346
Other current assets		14,572			13,596
Total current assets		428,915			370,645
Fixed assets and capitalized software, net		49,965			50,938
Goodwill		673,713			671,886
Intangible assets, net		77,457			82,577
Deferred tax assets		108,912			90,565
Other assets		30,753			33,891
Total assets	$	1,369,715		$	1,300,502

Liabilities and Stockholders' Equity
Current liabilities
Accounts payable	$	16,433		$	8,610
Accrued liabilities		146,350			131,813
Current portion of unrecognized tax benefits		30,171			29,771
Contract liabilities		61,471			51,726
Current portion of long-term debt		70,000			70,000
Other current liabilities		18,114			15,214
Total current liabilities		342,539			307,134
Term Loan, net		375,422			309,672
Term Loan, related party		60,902			142,875
ABL Facility		62,975			39,929
Pension obligations, net		132,456			140,167
Deferred tax liabilities		7,374			10,798
Other liabilities		31,606			35,212
Total long-term liabilities		670,735			678,653
Commitments and contingencies
Stockholders' equity
Common stock - $0.01 par value, 250,000,000 shares authorized; 60,913,663 shares issued and 34,22,121 shares outstanding at March 31, 2022; and 60,830,853 shares issued and 34,145,311 shares outstanding at December 31, 2021		609			608
Additional paid-in capital		1,087,054			1,084,288
Treasury stock - 26,685,542 shares at March 31, 2022 and 26,685,542 shares at December 31, 2021		(468,879	)		(468,879	)
Accumulated other comprehensive income (loss)		(2,599	)		(8,047	)
Accumulated deficit		(259,744	)		(293,255	)
Total stockholders' equity		356,441			314,715
Total liabilities and stockholders' equity	$	1,369,715		$	1,300,502

Thryv Holdings, Inc. and Subsidiaries Consolidated Statements of Cash Flows
	Three Months Ended March 31,
(in thousands)	2022			2021
Cash Flows from Operating Activities	(unaudited)			(unaudited)
Net income	$	33,511		$	36,506
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		21,969			19,718
Amortization of debt issuance costs		1,441			433
Deferred income taxes		(5,671	)		(13,249	)
Provision for credit losses and service credits		5,467			6,546
Stock-based compensation expense		1,928			1,971
Other components of net periodic pension (benefit)		(70	)		(453	)
Loss on foreign currency exchange rates		1,077			835
Bargain purchase gain		(7,297	)		—
Other		1,440			320
Changes in working capital items, excluding acquisitions:
Accounts receivable		(12,361	)		26,846
Contract assets		1,285			1,446
Prepaid expenses and other assets		(6,920	)		(10,998	)
Accounts payable and accrued liabilities		(9,775	)		(57,861	)
Other liabilities		3,303			2,144
Net cash provided by operating activities		29,327			14,204

Cash Flows from Investing Activities
Additions to fixed assets and capitalized software		(3,999	)		(3,668	)
Acquisition of a business, net of cash acquired		(22,003	)		(174,190	)
Net cash (used in) investing activities		(26,002	)		(177,858	)

Cash Flows from Financing Activities
Proceeds from Term Loan		—			418,070
Proceeds from Term Loan, related party		—			260,930
Payments of Term Loan		(15,444	)		—
Payments of Term Loan, related party		(2,056	)		—
Payments of Senior Term Loan		—			(335,821	)
Payments of Senior Term Loan, related party		—			(113,789	)
Proceeds from ABL Facility		302,374			249,936
Payments of ABL Facility		(279,327	)		(285,492	)
Proceeds from exercises of stock options and stock warrants		839			1,560
Other		—			(3,598	)
Net cash provided by financing activities		6,386			191,796

Effect of exchange rate changes on cash and cash equivalents		541			(707	)
Increase in cash and cash equivalents and restricted cash		10,252			27,435
Cash and cash equivalents and restricted cash, beginning of period		13,557			2,406
Cash and cash equivalents and restricted cash, end of period	$	23,809		$	29,841

Supplemental Information
Cash paid for interest	$	11,966		$	17,286
Cash paid for income taxes, net	$	15,421		$	15,753

	Three Months Ended March 31,					Change
	2022			2021		Amount			%
(in thousands of $)
Revenue
Marketing Services	$	212,533		$	227,933	$	(15,400	)	(6.8	) %
SaaS		47,343			37,251		10,092		27.1	%
Thryv International⁽¹⁾		48,499			15,422		33,077		214.5	%
Consolidated Revenue	$	308,375		$	280,606	$	27,769		9.9	%

Marketing Services	$	136,510		$	156,161	$	(19,651	)	(12.6	) %
SaaS		29,409			23,167		6,242		26.9	%
Thryv International⁽¹⁾		31,937			3,118		28,819		924.3	%
Segment Gross Profit	$	197,856		$	182,446	$	15,410		8.4	%

Segment EBITDA
Marketing Services	$	66,395		$	98,631	$	(32,236	)	(32.7	) %
SaaS		(4,364	)		316		(4,680	)	(1,481.0	) %
Thryv International ⁽¹⁾		21,686			5,986		15,700		262.3	%
Consolidated Adjusted EBITDA	$	83,717		$	104,933	$	(21,216	)	(20.2	) %

⁽¹⁾

Thryv International includes Thryv Australia revenue subsequent to the March 1, 2021 acquisition date.

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 March 31,
(in thousands)	2022			2021
Reconciliation of Adjusted EBITDA
Net income	$	33,511		$	36,506
Interest expense		14,867			15,672
Income tax expense		9,621			11,809
Depreciation and amortization expense		21,969			19,718
Loss on early extinguishment of debt		—			299
Restructuring and integration expenses ⁽¹⁾		5,827			9,234
Transaction costs ⁽²⁾		1,720			10,546
Stock-based compensation expense ⁽³⁾		1,928			1,971
Other components of net periodic pension (benefit) cost ⁽⁴⁾		(70	)		(453	)
Non-cash (gain) from remeasurement of indemnification asset ⁽⁵⁾		(400	)		—
Other ⁽⁶⁾		(5,256	)		(369	)
Adjusted EBITDA	$	83,717		$	104,933

(1)		For the three months ended March 31, 2022 and 2021, expenses relate to periodic efforts to enhance efficiencies and reduce costs, and include severance benefits, loss on disposal of fixed assets and capitalized software, and costs associated with abandoned facilities and system consolidation.
(2)		Expenses related to our direct listing, Thryv Australia and Vivial acquisitions and other transaction costs.
(3)		We record stock-based compensation expense related to the amortization of grant date fair value of the Company’s stock-based compensation awards. Additionally, stock-based compensation expense includes the remeasurement of these awards at each period end, prior to October 1, 2020.
(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 the mark-to-market pension remeasurement.
(5)		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.
(6)		Other primarily includes expenses related to potential non income-based tax liabilities. Additionally, during the three months ended March 31, 2022, Other includes the bargain purchase gain as a result of the Vivial Acquisition and foreign exchange-related expense.

The following is a reconciliation of Adjusted Gross Profit, to its most directly comparable GAAP measure, 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:
Depreciation and amortization expense		4,395			979			4,442			9,816
Stock-based compensation expense		61			15			—			76
Adjusted Gross Profit	$	140,966		$	30,403		$	36,379		$	207,748
Gross Margin		64.2	%		62.1	%		65.9	%		64.2	%
Adjusted Gross Margin		66.3	%		64.2	%		75.0	%		67.4	%

	Three Months Ended March 31, 2021
(in thousands)	Marketing Services			SaaS			International			Consolidated
Reconciliation of Adjusted Gross Profit
Gross profit	$	156,161		$	23,167		$	3,118		$	182,446
Plus:
Depreciation and amortization expense		4,619			755			5,870			11,244
Stock-based compensation expense		70			11			—			81
Adjusted Gross Profit	$	160,850		$	23,933		$	8,988		$	193,771
Gross Margin		68.5	%		62.2	%		20.2	%		65.0	%
Adjusted Gross Margin		70.6	%		64.2	%		58.3	%		69.1	%

Supplemental Financial Information

The following 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 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 March 31, 2022
(in thousands)	Marketing Services									SaaS
	US			International			Total			US			International			Total
Revenue	$	212,533		$	47,664		$	260,197		$	47,343		$	835		$	48,178
Adjusted EBITDA		66,395			24,097			90,492			(4,364	)		(2,411	)		(6,775	)
Adjusted EBITDA Margin		31.2	%		50.6	%		34.8	%		(9.2	) %		(288.7	) %		(14.1	) %

	Three Months Ended March 31, 2021
(in thousands)	Marketing Services									SaaS
	US			International			Total			US			International		Total
Revenue	$	227,933		$	15,422		$	243,355		$	37,251		$	—	$	37,251
Adjusted EBITDA		98,631			5,986			104,617			316			—		316
Adjusted EBITDA Margin		43.3	%		38.8	%		43.0	%		0.8	%		NM		0.8	%

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: risks related to the ongoing COVID-19 pandemic, 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 and subsequent Quarterly Reports on From 10-Q 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 Holdings, Inc.

Thryv Holdings, Inc. (NASDAQ: THRY) is a global software and marketing services company that empowers small- to medium-sized businesses (“SMBs”), franchises and agencies to grow and modernize their operations so they can compete and win in today's economy. Over 46,000 businesses use our award-winning SaaS platform, Thryv®, to manage their end-to-end customer experience, which has helped businesses across the U.S. and overseas grow their bottom line. Thryv also manages digital and print presence for over 400,000 businesses, connecting these SMBs to local consumers via proprietary local search portals and print directories. For more information about Thryv Holdings, Inc, visit thryv.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220504006096/en/

Contacts

Media Contact:

Charity Lacey

Gregory FCA

Office: 619.368.4373

thryv@gregoryfca.com

Investor Contact:

Cameron Lessard

Thryv, Inc.

214.773.7022

cameron.lessard@thryv.com

Search Hotels in Daly City

Find A Business

or Browse Listings

Thryv Grows SaaS Revenue 29% Year-Over-Year for First Quarter 2022

Contacts