Raises Revenue and EBITDA Guidance for Full Year 2022
DALLAS, August 4, 2022 – Thryv Holdings, Inc. (NASDAQ:THRY) (“Thryv” or the “Company”), the leading small business software platform, announced that it grew its SaaS revenue 26% year-over-year in the second quarter of 2022 and has raised revenue guidance for full year 2022.
“We are pleased to report a strong second quarter,” said Joe Walsh, Chairman and CEO. “We saw significant SaaS revenue growth, ahead of our SaaS revenue guidance targets. Importantly, this growth was driven by double-digit year-over-year increases in Thryv’s SaaS subscribers, as well as continued improvements in average revenue per unit – or ARPU. We also had an excellent quarter in our Marketing Services business which benefited from our recent acquisition of Vivial.”
Because of the solid results exceeding guidance, Thryv is increasing the projected full year SaaS and Marketing Services revenue and Adjusted EBITDA.
“We are focused on driving growth, especially continued investment in subscriber growth, while ensuring we deliver on our guidance, both top line and bottom line,” Walsh continued. “In support of our goal of driving SaaS subscriber growth, we recently announced the hiring of Tami Cannizzaro as our Chief Marketing Officer. Tami is making a difference already, driving performance in our inbound channel as well as enhancing support of Thryv’s local sales team.”
“Our clients tend to be well established small businesses. They have historically been recession resilient as they mainly offer non-discretionary services. Adopting Thryv software allows these small businesses to more effectively manage their businesses, helping them reduce costs and improve their performance.”
Second Quarter 2022 Financial Highlights:
- Total SaaS1 revenue was $52.2 million, a 26.1% increase year-over-year
- Total Marketing Services revenue was $281.8 million, a 12.9% increase year-over-year
- Consolidated total revenue was $334.0 million, an increase of 14.8% year-over-year
- Consolidated net income was $58.0 million
- Consolidated Adjusted EBITDA2 was $116.0 million, representing an Adjusted EBITDA margin of 34.7%
- Total SaaS3 Adjusted EBITDA loss was $2.2 million
- Total Marketing Services4 Adjusted EBITDA was $118.2 million, representing an Adjusted EBITDA margin of 42.0%
- Consolidated Gross Profit was $228.0 million, an increase of 27.8% year-over-year
- Consolidated Adjusted Gross Profit5 was $237.3 million
- SaaS Gross Profit was $32.6 million, representing a Gross Profit Margin of 62.4%
- SaaS Adjusted Gross Profit6 was $33.7 million, representing an Adjusted Gross Profit Margin of 64.5%
- SaaS monthly Average Revenue per Unit (“ARPU”)7 increased to $358 for the second quarter of 2022, compared to $323 in the second quarter of 2021
- Total SaaS clients increased 11% year-over-year to 50 thousand for the second quarter of 2022
- Seasoned Net Dollar Retention8 was 91% at end of the second quarter of 2022
- SaaS monthly active users9 increased 27% year-over-year to 38 thousand active users for the second quarter of 2022
- ThryvPay annualized total payment volume of approximately $150 million for the second quarter of 2022
Based on information available as of August 4, 2022, Thryv is raising guidance10 for the third quarter of 2022 and full year 2022 as indicated below:
For the third quarter of 2022, the Company expects:
- Total SaaS revenue in a range of $53.7 to $54.2 million
- Total SaaS Adjusted EBITDA loss in a range of $4.8 to $5.3 million
- Total Marketing Services revenue in a range of $205.0 to $210.0 million
For the full year 2022, the Company expects:
- Total SaaS revenue in a range of $209.5 to $211.0 million
- Total SaaS Adjusted EBITDA loss in a range of $16.0 to $19.0 million
- Total Marketing Services revenue in a range of $955.0 to $970.0 million
- Total Marketing Services Adjusted EBITDA in a range of $335.0 to $340.0 million
1Total SaaS revenue in the U.S. and International segments was $51.2 million and $1.0 million for the three months ended June 30, 2022, respectively.
2Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP financial measures. See “Non-GAAP Measures” below for additional information.
3Total SaaS Adjusted EBITDA in the U.S. was $0.2 million and Total SaaS International Adjusted EBITDA loss was $2.4 million for the three months ended June 30, 2022.
4Marketing Services Adjusted EBITDA in the U.S. and International segments was $83.7 million and $34.5 million for the three months ended June 30, 2022, respectively. Total Marketing Services Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP financial measures. See “Supplemental Financial Information” below for more information.
5Adjusted Gross Profit is a non-GAAP financial measure. See “Non-GAAP Measures” below for additional information.
6SaaS Adjusted Gross Profit and Adjusted Gross Profit margin are non-GAAP financial measures. See “Supplemental Financial Information” below for more information.,/p>
7Defined as total client billings by month divided by the number of revenue-generating units during the month.
8Seasoned Net Dollar Retention is defined as net dollar retention excluding clients acquired over the previous 12 months.
9Defined as a client with one or more users who log into our SaaS solutions at least once during the calendar month.
10These 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.
11A 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.
12A 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.
Earnings Conference Call Information
Thryv will host a conference call on Thursday, August 4, 2022 at 8:30 a.m. (Eastern Time) to discuss the Company’s second quarter 2022 results.
For analysts to register for this conference call, please use this link. To listen to the webcast, 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.”
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.