EX-99.1 2 exhibit991-pressreleaseq22.htm EX-99.1 Document
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Exhibit 99.1
Thryv Grows SaaS Revenue 25% in Second Quarter 2024,
Raises Full Year 2024 SaaS Adjusted EBITDA Guidance

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




DALLAS, August 1, 2024 – 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.”




















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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)20242024
SaaS Revenue
$82 - $84
$326 - $329
SaaS Adjusted EBITDA
$9 - $10
$30 - $32

3rd Quarter4th QuarterFull Year
(in millions)202420242024
Marketing Services Revenue$94 - $97$85 - $89
$485 - $492
Marketing Services Adjusted EBITDA
$128 - $131


1 Defined as Gross profit adjusted to exclude the impact of depreciation and amortization expense and stock-based compensation expense.
2 Seasoned Net Dollar Retention is defined as net dollar retention excluding clients acquired over the previous 12 months.
3 Defined 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.
4 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.

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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.”

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

Three Months EndedSix Months Ended
June 30,June 30,
(in thousands, except share and per share data)2024202320242023
Revenue$224,084 $251,421 $457,708 $496,976 
Cost of services 75,496 91,336 155,479 182,083 
Gross profit148,588 160,085 302,229 314,893 
Operating expenses:
Sales and marketing65,409 75,683 135,500 152,026 
General and administrative51,841 53,695 104,257 101,375 
Total operating expenses117,250 129,378 239,757 253,401 
Operating income31,338 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) benefit12,166 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 tax67 (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:
Basic36,004,324 34,575,338 35,818,549 34,625,561 
Diluted37,631,825 36,863,295 38,032,132 36,956,933 



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Thryv Holdings, Inc. and Subsidiaries
Consolidated Balance Sheets
(in thousands, except share data)June 30, 2024December 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 receivable1,516 3,085 
Prepaid expenses23,124 17,771 
Deferred costs12,796 16,722 
Other current assets5,822 2,662 
Total current assets260,620 266,868 
Fixed assets and capitalized software, net37,805 38,599 
Goodwill300,995 302,400 
Intangible assets, net6,640 18,788 
Deferred tax assets152,171 128,051 
Other assets27,252 28,464 
Total assets$785,483 $783,170 
Liabilities and Stockholders' Equity
Current liabilities
Accounts payable$8,661 $10,348 
Accrued liabilities110,193 105,903 
Current portion of unrecognized tax benefits25,060 23,979 
Contract liabilities25,668 44,558 
Current portion of Term Loan35,783 70,000 
Current portion of Term Loan, related party16,717 — 
Other current liabilities6,022 8,402 
Total current liabilities228,104 263,190 
Term Loan, net183,772 230,052 
Term Loan, net, related party87,820 — 
ABL Facility18,000 48,845 
Pension obligations, net72,279 69,388 
Other liabilities12,448 18,995 
Total long-term liabilities374,319 367,280 
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 capital1,170,798 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' equity183,060 152,700 
Total liabilities and stockholders' equity$785,483 $783,170 

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Thryv Holdings, Inc. and Subsidiaries
Consolidated Statements of Cash Flows
Six Months Ended June 30,
(in thousands)20242023
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 amortization28,625 31,098 
Amortization of deferred commissions9,624 5,032 
Amortization of debt issuance costs2,255 2,721 
Deferred income taxes(24,060)(9,135)
Provision for credit losses and service credits12,179 11,580 
Stock-based compensation expense11,642 11,191 
Other components of net periodic pension cost3,162 1,986 
Loss (gain) on foreign currency exchange rates1,151 (881)
Non-cash loss from the remeasurement of the indemnification asset— 10,734 
Loss on early extinguishment of debt6,638 — 
Other(3,170)— 
Changes in working capital items, excluding acquisitions:
Accounts receivable923 25,075 
Contract assets(5,210)837 
Prepaid expenses and other assets(10,614)10,090 
Accounts payable and accrued liabilities2,428 (38,654)
Other liabilities(21,885)(29,230)
Net cash provided by operating activities27,660 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 Loan234,256 — 
Proceeds from Term Loan, related party109,444 — 
Payments of Term Loan(318,654)(52,500)
Payments of Term Loan, related party(4,339)— 
Proceeds from ABL Facility230,079 483,473 
Payments of ABL Facility(260,924)(469,750)
Debt issuance costs(5,319)— 
Purchase of treasury stock(499)— 
Other5,442 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 cash468 (585)
Cash, cash equivalents and restricted cash, beginning of period20,530 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 

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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)%
SaaS77,794 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)%
SaaS52,289 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)%
SaaS10,165 6,230 3,935 63.2 %
Consolidated Adjusted EBITDA$59,314 $69,439 $(10,125)(14.6)%


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Six Months Ended June 30,Change
(in thousands)20242023Amount%
Revenue
Marketing Services$305,592 $374,589 $(68,997)(18.4)%
SaaS152,116 122,387 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)%
SaaS101,384 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)%
SaaS13,600 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.

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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)2024202320242023
Reconciliation of Adjusted EBITDA
Net income$5,548 $15,978 $13,972 $25,292 
Interest expense12,175 16,292 25,534 32,780 
Depreciation and amortization expense14,072 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).


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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 ServicesSaaSTotal
Reconciliation of Adjusted Gross Profit
Gross profit$96,299 $52,289 $148,588 
Plus:
Depreciation and amortization expense3,989 1,877 5,866 
Stock-based compensation expense 98 76 174 
Adjusted Gross Profit$100,386 $54,242 $154,628 
Gross Margin65.8 %67.2 %66.3 %
Adjusted Gross Margin68.6 %69.7 %69.0 %
Three Months Ended June 30, 2023
(in thousands)Marketing ServicesSaaSTotal
Reconciliation of Adjusted Gross Profit
Gross profit$120,875 $39,210 $160,085 
Plus:
Depreciation and amortization expense6,208 1,416 7,624 
Stock-based compensation expense 119 54 173 
Adjusted Gross Profit$127,202 $40,680 $167,882 
Gross Margin64.0 %62.8 %63.7 %
Adjusted Gross Margin67.3 %65.1 %66.8 %

Six Months Ended June 30, 2024
(in thousands)Marketing ServicesSaaSTotal
Reconciliation of Adjusted Gross Profit
Gross profit$200,845 $101,384 $302,229 
Plus:
Depreciation and amortization expense8,061 3,581 11,642 
Stock-based compensation expense 211 136 347 
Adjusted Gross Profit$209,117 $105,101 $314,218 
Gross Margin65.7 %66.6 %66.0 %
Adjusted Gross Margin68.4 %69.1 %68.7 %


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Six Months Ended June 30, 2023
(in thousands)Marketing ServicesSaaSTotal
Reconciliation of Adjusted Gross Profit
Gross profit$238,529 $76,364 $314,893 
Plus:
Depreciation and amortization expense11,905 2,702 14,607 
Stock-based compensation expense 222 100 322 
Adjusted Gross Profit$250,656 $79,166 $329,822 
Gross Margin63.7 %62.4 %63.4 %
Adjusted Gross Margin66.9 %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 ServicesSaaSTotal
Revenue$146,290 $77,794 $224,084 
Adjusted EBITDA49,149 10,165 59,314 
Adjusted EBITDA Margin33.6 %13.1 %26.5 %

Three Months Ended June 30, 2023
(in thousands)Marketing ServicesSaaSTotal
Revenue$188,963 $62,458 $251,421 
Adjusted EBITDA63,209 6,230 69,439 
Adjusted EBITDA Margin33.5 %10.0 %27.6 %


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Six Months Ended June 30, 2024
(in thousands)Marketing ServicesSaaSTotal
Revenue$305,592 $152,116 $457,708 
Adjusted EBITDA99,828 13,600 113,428 
Adjusted EBITDA Margin32.7 %8.9 %24.8 %

Six Months Ended June 30, 2023
(in thousands)Marketing ServicesSaaSTotal
Revenue$374,589 $122,387 $496,976 
Adjusted EBITDA121,882 6,026 127,908 
Adjusted EBITDA Margin32.5 %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

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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.

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  
  
 


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