Raises Revenue and EBITDA Guidance for Full Year 2022
DALLAS, November 3, 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 third quarter of 2022 and has raised revenue guidance for full year 2022.
“We are pleased to report a strong third quarter as we continue to make tremendous progress on our strategic priorities,” said Joe Walsh, Chairman and CEO. “Our SaaS revenue growth, up 26% year-over-year, was ahead of our SaaS guidance targets. Subscribers and ARPU both grew at double digits year-over-year. These strides reflect our investment in our product and client success team.”
As a result of a strong third quarter exceeding guidance, Thryv is increasing guidance for full year 2022 SaaS revenue and Marketing Services revenue and Adjusted EBITDA.
“We are transforming the small business sector one business at a time, supporting entrepreneurs as they move their operations to the cloud. We focus on our clients’ engagement and usage which drives their loyalty and spend and allows us to deliver on our objectives,” Walsh continued. “In support of our goal of international expansion, we recently announced the opening of our regional HQ in Toronto, the hiring of our Canadian sales team and key partnerships with GetinTheLoop and the Canadian Franchise Association. Marie Caron, our international president, is succeeding in making a difference and assisting our clients as we expand across the globe.”
“On a daily basis, our employees are helping small businesses succeed. We view employee experience as strategically important because clients benefit from our employees’ commitment. In fact, Thryv was named to Newsweek’s America’s 100 Most Loved Workplaces for 2022. We are proud our employees feel this way – and in return, it helps our clients have a great experience when they work with us.”
Third Quarter 2022 Financial Highlights:
- Total SaaS1 revenue was $56.6 million, a 26.1% increase year-over-year
- Total Marketing Services2 revenue was $224.0 million, an 11.2% decrease year-over-year
- Consolidated total revenue was $280.7 million, a decrease of 5.6% year-over-year
- Consolidated net income was $13.3 million
- Consolidated Adjusted EBITDA3 was $65.4 million, representing an Adjusted EBITDA margin of 23.3%
- Total SaaS4 Adjusted EBITDA loss was $2.2 million
- Total Marketing Services5 Adjusted EBITDA was $67.6 million, representing an Adjusted EBITDA margin of 30.2%
- Consolidated Gross Profit was $175.6 million, a decrease of 9.1% year-over-year
- Consolidated Adjusted Gross Profit6 was $185.6 million
- SaaS Gross Profit was $34.4 million, representing a Gross Profit Margin of 60.8%
- SaaS Adjusted Gross Profit7 was $35.9 million, representing an Adjusted Gross Profit Margin of 63.5%
- SaaS monthly Average Revenue per Unit (“ARPU”)8 increased to $377 for the third quarter of 2022, compared to $340 in the third quarter of 2021
- Total SaaS clients increased 13% year-over-year to 51 thousand for the third quarter of 2022
- Seasoned Net Dollar Retention9 was 92% at end of the third quarter of 2022
- SaaS monthly active users10 increased 19% year-over-year to 37 thousand active users for the third quarter of 2022
- ThryvPay annualized total payment volume of approximately $160 million for the third quarter of 2022
Based on information available as of November 3, 2022, Thryv is raising guidance for the full year 2022 as indicated below:
For the fourth quarter of 2022, the Company expects:
- Total SaaS revenue in a range of $57.0 to $58.0 million
- Total SaaS Adjusted EBITDA loss11 in a range of $3.4 to $4.4 million
- Total Marketing Services revenue in a range of $199.0 to $209.0 million
For the full year 2022, the Company expects:
- Total SaaS revenue in a range of $214.0 to $215.0 million
- Total SaaS Adjusted EBITDA loss12 in a range of $14.5 to $15.5 million
- Total Marketing Services revenue in a range of $965.0 to $975.0 million
- Total Marketing Services Adjusted EBITDA13 in a range of $338.0 to $341.0 million
1Total SaaS revenue in the U.S. and International segments was $55.4 million and $1.3 million for the three months ended September 30, 2022, respectively.
2Total Marketing Services revenue in the U.S. and International segments was $197.2 million and $26.8 million for the three months ended September 30, 2022, respectively.
3Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP financial measures. See “Non-GAAP Measures” below for additional information.
4Total SaaS Adjusted EBITDA in the U.S. was $0.4 million and Total SaaS International Adjusted EBITDA loss was $2.6 million for the three months ended September 30, 2022.
5Marketing Services Adjusted EBITDA in the U.S. and International segments was $61.8 million and $5.8 million for the three months ended September 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.
6Adjusted Gross Profit is a non-GAAP financial measure. See “Non-GAAP Measures” below for additional information.
7SaaS Adjusted Gross Profit and Adjusted Gross Profit margin are non-GAAP financial measures. See “Supplemental Financial Information” below for more information.
8Defined as total client billings by month divided by the number of revenue-generating units during the month.
9Seasoned Net Dollar Retention is defined as net dollar retention excluding clients acquired over the previous 12 months.
10Defined as a client with one or more users who log into our SaaS solutions at least once during the calendar month.
11These 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.
12A 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.
13A 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, November 3, 2022 at 8:30 a.m. (Eastern Time) to discuss the Company’s third 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”) to grow and modernize their operations so they can compete and win in today’s economy. Over 50,000 businesses use our award-winning SaaS platform, Thryv®, to manage their end-to-end operations, which has helped businesses across the U.S. and overseas grow their bottom line. Thryv also manages digital and print presence for approximately 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.