Raises Revenue Guidance for Full Year 2022
DALLAS, May 4, 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:
- 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
- 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 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.
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
1Total 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.
2Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP financial measures. See “Non-GAAP Measures” below for additional information.
3Total 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.
1 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.
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.”
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.