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Thryv Exceeds Third Quarter 2023 SaaS Guidance, Raises Full-Year SaaS Outlook

Company achieves 19% SaaS revenue growth

Q3 SaaS Adjusted EBITDA exceeds guidance range by over $3 million

Subscribers increased 29%

Delivers strong operating cash flow of $45.9 million

Thryv Holdings, Inc. (NASDAQ:THRY) (“Thryv” or the “Company”), the provider of Thryv®, the leading small business software platform, reported SaaS revenue growth of 19% year-over-year in the third quarter of 2023.

“We are reporting a strong third quarter as we continue to focus on driving profitable SaaS growth in 2023,” said Joe Walsh, Thryv Chairman and CEO. “Our SaaS revenue and EBITDA surpassed expectations, reinforcing our commitment to cost effectively scaling our business. SaaS subscribers showed continued strength and we increased our clients through ongoing innovation, cross-selling opportunities and operational execution. We are continuing to evolve our Thryv platform to deliver solutions that solve problems small businesses face.”

In August, the Company announced the beta program for Thryv Command Center, an industry-first freemium offering that will be a core driver in its product-led growth initiative. Thryv Command Center enables SMBs to centralize all their communication through a modular, easily expandable, and customizable platform. The market’s reception has been strong as evidenced by the fast-growing number of users. Thryv Command Center continues the planned roll out of new centers to drive future growth and complements the Thryv Marketing Center and Thryv Business Center, as well as the company’s continued international expansion.

“We are pleased with our results this quarter and with our ability to raise our full-year guidance for SaaS revenue and EBITDA,” said Paul Rouse, Thryv Chief Financial Officer. "We achieved impressive free cash conversion, even with Adjusted EBITDA appearing lower due to the accounting treatment related to the extension of our printed directories. Moreover, our robust free cash flow enabled us to substantially reduce our debt by $42.5 million on our Term Loan. As we move forward, our primary focus remains on accelerating profitable growth in the SaaS business while upholding a strong and healthy balance sheet.”

Third Quarter 2023 Highlights:

Financial Highlights

  • Total SaaS1 revenue was $67.4 million, a 19% increase year-over-year
  • Total Marketing Services2 revenue was $116.5 million, a 48% decrease year-over-year, primarily driven by the timing of revenue recognition of the Company's printed directories
  • Consolidated total revenue was $183.8 million, a decrease of 35% year-over-year
  • Consolidated net loss was $27.0 million, or $(0.78) per diluted share, compared to net income of $13.3 million, or $0.37 per diluted share, for the third quarter of 2022
  • Consolidated Adjusted EBITDA was $7.3 million, representing an Adjusted EBITDA margin of 4%
  • Total SaaS Adjusted EBITDA loss was $0.5 million, representing an Adjusted EBITDA margin of (0.7)%.
  • Total Marketing Services Adjusted EBITDA was $7.8 million, representing an Adjusted EBITDA margin of 7%
  • Consolidated Gross Profit was $103.6 million
  • Consolidated Adjusted Gross Profit3 was $110.6 million
  • SaaS Gross Profit was $42.9 million, representing a Gross Profit Margin of 64%
  • SaaS Adjusted Gross Profit was $44.8 million, representing an Adjusted Gross Profit Margin of 67%
  • Operating cash flow was $45.9 million

SaaS Metrics

  • SaaS monthly Average Revenue per Unit (“ARPU”)4 decreased to $365 for the third quarter of 2023, compared to $377 in the third quarter of 2022
  • Total SaaS clients increased 29% year-over-year to 66 thousand for the third quarter of 2023
  • Seasoned Net Dollar Retention5 was 92% for the third quarter of 2023, an increase of 300 bps sequentially
  • SaaS monthly active users6 increased 22% year-over-year to 45 thousand active users for the third quarter of 2023
  • ThryvPay total payment volume was $63 million, an increase of 57% year-over-year

____________________

1 Total SaaS revenue in the U.S. and International segments was $64.7 million and $2.7 million for the three months ended September 30, 2023, respectively.

2 Total Marketing Services revenue in the U.S. and International segments was $92.9 million and $23.6 million for the three months ended September 30, 2023, respectively.

3 Defined as Gross profit adjusted to exclude the impact of depreciation and amortization expense and stock-based compensation expense.

4 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.

5 Seasoned Net Dollar Retention is defined as net dollar retention excluding clients acquired over the previous 12 months.

6 Defined as a client with one or more users who log into our SaaS solutions at least once during the calendar month.

Outlook

Based on information available as of November 2, 2023, Thryv is issuing guidance7 for the fourth quarter of 2023 and full year 2023 as indicated below:

 

 

 

4th Quarter

 

Full Year

(in millions)

 

 

2023

 

2023

SaaS Revenue

 

 

$70.25 - $71.25

 

$260 - $261

SaaS Adjusted EBITDA

 

 

$3.5 - $4.0

 

$9.0 - $9.5

 

 

 

 

4th Quarter

 

Full Year

(in millions)

 

 

 

2023

 

2023

Marketing Services Revenue

 

 

 

$159 - $164

 

$650 - $655

Marketing Services Adjusted EBITDA

 

 

 

$47 - $49

 

$177 - $179

Earnings Conference Call Information

Thryv will host a conference call on Thursday, November 2, 2023 at 8:30 a.m. (Eastern Time) to discuss the Company's third quarter 2023 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 “87769.”

____________________

7 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.

Final Results

Thryv Holdings, Inc. and Subsidiaries

Consolidated Statements of Operations and Comprehensive Income (Loss)

 

 

Three Months Ended

 

Nine Months Ended

 

September 30,

 

September 30,

(in thousands, except share and per share data)

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

Revenue

$

183,822

 

 

$

280,650

 

 

$

680,798

 

 

$

923,020

 

Cost of services

 

80,178

 

 

 

105,011

 

 

 

262,261

 

 

 

321,543

 

Gross profit

 

103,644

 

 

 

175,639

 

 

 

418,537

 

 

 

601,477

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

Sales and marketing

 

74,755

 

 

 

89,891

 

 

 

226,781

 

 

 

275,659

 

General and administrative

 

48,267

 

 

 

54,670

 

 

 

149,642

 

 

 

159,514

 

Impairment charges

 

 

 

 

 

 

 

 

 

 

222

 

Total operating expenses

 

123,022

 

 

 

144,561

 

 

 

376,423

 

 

 

435,395

 

 

 

 

 

 

 

 

 

Operating (loss) income

 

(19,378

)

 

 

31,078

 

 

 

42,114

 

 

 

166,082

 

Other income (expense):

 

 

 

 

 

 

 

Interest expense

 

(15,131

)

 

 

(13,720

)

 

 

(47,911

)

 

 

(40,584

)

Interest expense, related party

 

 

 

 

(850

)

 

 

 

 

 

(3,505

)

Other components of net periodic pension (cost) benefit

 

(1,902

)

 

 

(3,928

)

 

 

(3,888

)

 

 

5,295

 

Other income (expense)

 

(876

)

 

 

6,941

 

 

 

(1,242

)

 

 

15,567

 

(Loss) income before income tax benefit (expense)

 

(37,287

)

 

 

19,521

 

 

 

(10,927

)

 

 

142,855

 

Income tax benefit (expense)

 

10,241

 

 

 

(6,241

)

 

 

9,173

 

 

 

(38,062

)

Net (loss) income

$

(27,046

)

 

$

13,280

 

 

$

(1,754

)

 

$

104,793

 

Other comprehensive income (loss):

 

 

 

 

 

 

 

Foreign currency translation adjustment, net of tax

 

(1,842

)

 

 

(7,920

)

 

 

(4,332

)

 

 

(12,611

)

Comprehensive (loss) income

$

(28,888

)

 

$

5,360

 

 

$

(6,086

)

 

$

92,182

 

 

 

 

 

 

 

 

 

Net (loss) income per common share:

 

 

 

 

 

 

 

Basic

$

(0.78

)

 

$

0.39

 

 

$

(0.05

)

 

$

3.06

 

Diluted

$

(0.78

)

 

$

0.37

 

 

$

(0.05

)

 

$

2.86

 

 

 

 

 

 

 

 

 

Weighted-average shares used in computing basic and diluted net (loss) income per common share:

 

 

 

 

 

 

 

Basic

 

34,848,899

 

 

 

34,269,274

 

 

 

34,619,794

 

 

 

34,289,333

 

Diluted

 

34,848,899

 

 

 

35,811,473

 

 

 

34,619,794

 

 

 

36,698,395

 

Thryv Holdings, Inc. and Subsidiaries

Consolidated Balance Sheets

 

(in thousands, except share data)

September 30, 2023

 

December 31, 2022

Assets

 

 

 

Current assets

 

 

 

Cash and cash equivalents

$

14,676

 

 

$

16,031

 

Accounts receivable, net of allowance of $13,764 in 2023 and $14,766 in 2022

 

198,828

 

 

 

284,698

 

Contract assets, net of allowance of $23 in 2023 and $33 in 2022

 

1,471

 

 

 

2,583

 

Taxes receivable

 

19,087

 

 

 

11,553

 

Prepaid expenses

 

22,801

 

 

 

25,092

 

Indemnification asset

 

 

 

 

26,495

 

Deferred costs

 

15,085

 

 

 

9,544

 

Other current assets

 

2,624

 

 

 

2,320

 

Total current assets

 

274,572

 

 

 

378,316

 

Fixed assets and capitalized software, net

 

37,951

 

 

 

42,334

 

Goodwill

 

567,773

 

 

 

566,004

 

Intangible assets, net

 

24,268

 

 

 

34,715

 

Deferred tax assets

 

114,406

 

 

 

113,859

 

Other assets

 

21,412

 

 

 

42,649

 

Total assets

$

1,040,382

 

 

$

1,177,877

 

 

 

 

 

Liabilities and Stockholders' Equity

 

 

 

Current liabilities

 

 

 

Accounts payable

$

8,138

 

 

$

18,972

 

Accrued liabilities

 

97,720

 

 

 

126,810

 

Current portion of unrecognized tax benefits

 

23,415

 

 

 

31,919

 

Contract liabilities

 

27,119

 

 

 

41,854

 

Current portion of long-term debt

 

70,000

 

 

 

70,000

 

Other current liabilities

 

9,522

 

 

 

10,937

 

Total current liabilities

 

235,914

 

 

 

300,492

 

Term Loan, net

 

253,874

 

 

 

345,256

 

ABL Facility

 

57,393

 

 

 

54,554

 

Pension obligations, net

 

76,076

 

 

 

72,590

 

Other liabilities

 

20,029

 

 

 

22,718

 

Total long-term liabilities

 

407,372

 

 

 

495,118

 

Commitments and contingencies

 

 

 

Stockholders' equity

 

 

 

Common stock - $0.01 par value, 250,000,000 shares authorized; 62,521,026 shares issued and 35,164,339 shares outstanding at September 30, 2023; and 61,279,379 shares issued and 34,593,837 shares outstanding at December 31, 2022

 

625

 

 

 

613

 

Additional paid-in capital

 

1,143,493

 

 

 

1,105,701

 

Treasury stock - 27,356,687 shares at September 30, 2023 and 26,685,542 shares at December 31, 2022

 

(485,768

)

 

 

(468,879

)

Accumulated other comprehensive loss

 

(20,593

)

 

 

(16,261

)

Accumulated deficit

 

(240,661

)

 

 

(238,907

)

Total stockholders' equity

 

397,096

 

 

 

382,267

 

Total liabilities and stockholders' equity

$

1,040,382

 

 

$

1,177,877

 

Thryv Holdings, Inc. and Subsidiaries

Consolidated Statements of Cash Flows

 

 

Nine Months Ended September 30,

(in thousands)

 

2023

 

 

 

2022

 

Cash Flows from Operating Activities

 

 

 

Net (loss) income

$

(1,754

)

 

$

104,793

 

Adjustments to reconcile net (loss) income to net cash provided by operating activities:

 

 

 

Depreciation and amortization

 

46,940

 

 

 

65,954

 

Amortization of deferred commissions

 

10,304

 

 

 

8,396

 

Amortization of debt issuance costs

 

4,080

 

 

 

4,327

 

Deferred income taxes

 

808

 

 

 

(23,222

)

Provision for credit losses and service credits

 

15,594

 

 

 

18,325

 

Stock-based compensation expense

 

16,653

 

 

 

10,140

 

Other components of net periodic pension cost (benefit)

 

3,888

 

 

 

(5,295

)

Impairment charges

 

 

 

 

222

 

Loss (gain) on foreign currency exchange rates

 

164

 

 

 

(4,447

)

Non-cash loss (gain) from the remeasurement of the indemnification asset

 

10,734

 

 

 

(1,472

)

Bargain purchase gain

 

 

 

 

(10,245

)

Other

 

 

 

 

1,961

 

Changes in working capital items, excluding acquisitions:

 

 

 

Accounts receivable

 

59,238

 

 

 

(8,930

)

Contract assets

 

1,111

 

 

 

2,226

 

Prepaid expenses and other assets

 

23,489

 

 

 

8,089

 

Accounts payable and accrued liabilities

 

(63,469

)

 

 

(36,956

)

Other liabilities

 

(24,132

)

 

 

(29,645

)

Net cash provided by operating activities

 

103,648

 

 

 

104,221

 

 

 

 

 

Cash Flows from Investing Activities

 

 

 

Additions to fixed assets and capitalized software

 

(22,920

)

 

 

(19,345

)

Acquisition of a business, net of cash acquired

 

(8,897

)

 

 

(22,793

)

Other

 

(215

)

 

 

 

Net cash (used in) investing activities

 

(32,032

)

 

 

(42,138

)

 

 

 

 

Cash Flows from Financing Activities

 

 

 

Payments of Term Loan

 

(95,000

)

 

 

(73,164

)

Payments of Term Loan, related party

 

 

 

 

(8,347

)

Proceeds from ABL Facility

 

697,234

 

 

 

746,689

 

Payments of ABL Facility

 

(694,395

)

 

 

(727,762

)

Proceeds from exercises of stock warrants

 

15,899

 

 

 

64

 

Other

 

4,124

 

 

 

4,824

 

Net cash (used in) financing activities

 

(72,138

)

 

 

(57,696

)

 

 

 

 

Effect of exchange rate changes on cash, cash equivalents and restricted cash

 

(707

)

 

 

(1,610

)

(Decrease) increase in cash, cash equivalents and restricted cash

 

(1,229

)

 

 

2,777

 

Cash, cash equivalents and restricted cash, beginning of period

 

18,180

 

 

 

13,557

 

Cash, cash equivalents and restricted cash, end of period

$

16,951

 

 

$

16,334

 

 

 

 

 

Supplemental Information

 

 

 

Cash paid for interest

$

44,029

 

 

$

42,435

 

Cash paid for income taxes, net

$

7,605

 

 

$

53,673

 

 

 

 

 

Non-cash investing and financing activities

 

 

 

Repurchase of Treasury stock as a result of the settlement of the indemnification asset

$

15,760

 

 

$

 

The following tables summarize the operating results of the Company's reportable segments:

 

Three Months Ended September 30,

 

Change

(in thousands)

 

2023 (1)

 

 

2022

 

 

Amount

 

%

Revenue

 

 

 

 

 

 

 

Thryv U.S.

 

 

 

 

 

 

 

Marketing Services

$

92,884

 

 

$

197,174

 

 

$

(104,290

)

 

(52.9

)%

SaaS

 

64,650

 

 

 

55,353

 

 

 

9,297

 

 

16.8

%

Thryv International

 

 

 

 

 

 

 

Marketing Services

 

23,578

 

 

 

26,833

 

 

 

(3,255

)

 

(12.1

)%

SaaS

 

2,710

 

 

 

1,290

 

 

 

1,420

 

 

110.1

%

Consolidated Revenue

$

183,822

 

 

$

280,650

 

 

$

(96,828

)

 

(34.5

)%

 

 

 

 

 

 

 

 

Segment Gross Profit

 

 

 

 

 

 

 

Thryv U.S.

 

 

 

 

 

 

 

Marketing Services

$

50,610

 

 

$

126,846

 

 

$

(76,236

)

 

(60.1

)%

SaaS

 

40,957

 

 

 

33,827

 

 

 

7,130

 

 

21.1

%

Thryv International

 

 

 

 

 

 

 

Marketing Services

 

10,166

 

 

 

14,351

 

 

 

(4,185

)

 

(29.2

)%

SaaS

 

1,911

 

 

 

615

 

 

 

1,296

 

 

NM

Consolidated Segment Gross Profit

$

103,644

 

 

$

175,639

 

 

$

(71,995

)

 

(41.0

)%

 

 

 

 

 

 

 

 

Segment EBITDA

 

 

 

 

 

 

 

Thryv U.S.

 

 

 

 

 

 

 

Marketing Services

$

5,369

 

 

$

61,802

 

 

$

(56,433

)

 

(91.3

)%

SaaS

 

1,986

 

 

 

398

 

 

 

1,588

 

 

NM

Thryv International

 

 

 

 

 

 

 

Marketing Services

 

2,466

 

 

 

5,807

 

 

 

(3,341

)

 

(57.5

)%

SaaS

 

(2,490

)

 

 

(2,575

)

 

 

85

 

 

3.3

%

Consolidated Adjusted EBITDA

$

7,331

 

 

$

65,432

 

 

$

(58,101

)

 

(88.8

)%

 

(1) Thryv International includes Yellow's results of operations subsequent to the Yellow Acquisition.

 

Nine Months Ended September 30,

 

Change

(in thousands)

 

2023 (1)

 

 

2022 (2)

 

Amount

 

%

Revenue

 

 

 

 

 

 

 

Thryv U.S.

 

 

 

 

 

 

 

Marketing Services

$

377,868

 

 

$

632,277

 

 

$

(254,409

)

 

(40.2

)%

SaaS

 

182,927

 

 

 

153,863

 

 

 

29,064

 

 

18.9

%

Thryv International

 

 

 

 

 

 

 

Marketing Services

 

113,183

 

 

 

133,715

 

 

 

(20,532

)

 

(15.4

)%

SaaS

 

6,820

 

 

 

3,165

 

 

 

3,655

 

 

115.5

%

Consolidated Revenue

$

680,798

 

 

$

923,020

 

 

$

(242,222

)

 

(26.2

)%

 

 

 

 

 

 

 

 

Segment Gross Profit

 

 

 

 

 

 

 

Thryv U.S.

 

 

 

 

 

 

 

Marketing Services

$

231,807

 

 

$

415,130

 

 

$

(183,323

)

 

(44.2

)%

SaaS

 

114,480

 

 

 

95,328

 

 

 

19,152

 

 

20.1

%

Thryv International

 

 

 

 

 

 

 

Marketing Services

 

67,498

 

 

 

89,694

 

 

 

(22,196

)

 

(24.7

)%

SaaS

 

4,752

 

 

 

1,325

 

 

 

3,427

 

 

NM

 

Consolidated Segment Gross Profit

$

418,537

 

 

$

601,477

 

 

$

(182,940

)

 

(30.4

)%

 

 

 

 

 

 

 

 

Segment EBITDA

 

 

 

 

 

 

 

Thryv U.S.

 

 

 

 

 

 

 

Marketing Services

$

84,866

 

 

$

211,871

 

 

$

(127,005

)

 

(59.9

)%

SaaS

 

10,231

 

 

 

(3,769

)

 

 

14,000

 

 

NM

 

Thryv International

 

 

 

 

 

 

 

Marketing Services

 

44,851

 

 

 

64,449

 

 

 

(19,598

)

 

(30.4

)%

SaaS

 

(4,709

)

 

 

(7,402

)

 

 

2,693

 

 

36.4

%

Consolidated Adjusted EBITDA

$

135,239

 

 

$

265,149

 

 

$

(129,910

)

 

(49.0

)%

 

(1) Thryv International includes Yellow's results of operations subsequent to the Yellow Acquisition.

(2) Thryv U.S. includes Vivial's results of operations subsequent to the Vivial Acquisition.

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 (loss) income and Adjusted Gross Profit to Gross profit. Both Net (loss) 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 (loss) income:

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

(in thousands)

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

Reconciliation of Adjusted EBITDA

 

 

 

 

 

 

 

Net (loss) income

$

(27,046

)

 

$

13,280

 

 

$

(1,754

)

 

$

104,793

 

Interest expense

 

15,131

 

 

 

14,570

 

 

 

47,911

 

 

 

44,089

 

Depreciation and amortization expense

 

15,842

 

 

 

23,393

 

 

 

46,940

 

 

 

65,954

 

Stock-based compensation expense (1)

 

5,462

 

 

 

4,402

 

 

 

16,653

 

 

 

10,140

 

Restructuring and integration expenses (2)

 

3,584

 

 

 

3,790

 

 

 

12,845

 

 

 

14,439

 

Income tax (benefit) expense

 

(10,241

)

 

 

6,241

 

 

 

(9,173

)

 

 

38,062

 

Transaction costs (3)

 

 

 

 

1,461

 

 

 

373

 

 

 

4,797

 

Other components of net periodic pension cost (benefit) (4)

 

1,902

 

 

 

3,928

 

 

 

3,888

 

 

 

(5,295

)

Non-cash (gain) loss from remeasurement of indemnification asset (5)

 

 

 

 

(585

)

 

 

10,734

 

 

 

(1,472

)

Impairment charges

 

 

 

 

 

 

 

 

 

 

222

 

Other (6)

 

2,697

 

 

 

(5,048

)

 

 

6,822

 

 

 

(10,580

)

Adjusted EBITDA

$

7,331

 

 

$

65,432

 

 

$

135,239

 

 

$

265,149

 

(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 nine months ended September 30, 2023 and 2022, 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, Vivial acquisition and other transaction costs.

(4)

Other components of net periodic pension cost (benefit) 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 (benefit) relates to periodic 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 represents foreign exchange-related expense. Additionally, during the nine months ended September 30, 2022, Other includes the bargain purchase gain as a result of the Vivial Acquisition.

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 September 30, 2023

 

Thryv U.S.

 

Thryv International

 

 

(in thousands)

Marketing

Services

 

SaaS

 

Marketing

Services

 

SaaS

 

Total

Reconciliation of Adjusted Gross Profit

 

 

 

 

 

 

 

 

 

Gross profit

$

50,610

 

 

$

40,957

 

 

$

10,166

 

 

$

1,911

 

 

$

103,644

 

Plus:

 

 

 

 

 

 

 

 

 

Depreciation and amortization expense

 

2,298

 

 

 

1,602

 

 

 

2,587

 

 

 

299

 

 

 

6,786

 

Stock-based compensation expense

 

103

 

 

 

71

 

 

 

 

 

 

 

 

 

174

 

Adjusted Gross Profit

$

53,011

 

 

$

42,630

 

 

$

12,753

 

 

$

2,210

 

 

$

110,604

 

Gross Margin

 

54.5

%

 

 

63.4

%

 

 

43.1

%

 

 

70.5

%

 

 

56.4

%

Adjusted Gross Margin

 

57.1

%

 

 

65.9

%

 

 

54.1

%

 

 

81.5

%

 

 

60.2

%

 

Three Months Ended September 30, 2022

 

Thryv U.S.

 

Thryv International

 

 

(in thousands)

Marketing

Services

 

SaaS

 

Marketing

Services

 

SaaS

 

Total

Reconciliation of Adjusted Gross Profit

 

 

 

 

 

 

 

 

 

Gross profit

$

126,846

 

 

$

33,827

 

 

$

14,351

 

 

$

615

 

 

$

175,639

 

Plus:

 

 

 

 

 

 

 

 

 

Depreciation and amortization expense

 

4,593

 

 

 

1,287

 

 

 

3,739

 

 

 

195

 

 

 

9,814

 

Stock-based compensation expense

 

85

 

 

 

22

 

 

 

 

 

 

 

 

 

107

 

Adjusted Gross Profit

$

131,524

 

 

$

35,136

 

 

$

18,090

 

 

$

810

 

 

$

185,560

 

Gross Margin

 

64.3

%

 

 

61.1

%

 

 

53.5

%

 

 

47.7

%

 

 

62.6

%

Adjusted Gross Margin

 

66.7

%

 

 

63.5

%

 

 

67.4

%

 

 

62.8

%

 

 

66.1

%

 

Nine Months Ended September 30, 2023

 

Thryv U.S.

 

Thryv International

 

 

(in thousands)

Marketing

Services

 

SaaS

 

Marketing

Services

 

SaaS

 

Total

Reconciliation of Adjusted Gross Profit

 

 

 

 

 

 

 

 

 

Gross profit

$

231,807

 

 

$

114,480

 

 

$

67,498

 

 

$

4,752

 

 

$

418,537

 

Plus:

 

 

 

 

 

 

 

 

 

Depreciation and amortization expense

 

8,101

 

 

 

4,004

 

 

 

8,689

 

 

 

599

 

 

 

21,393

 

Stock-based compensation expense

 

325

 

 

 

171

 

 

 

 

 

 

 

 

 

496

 

Adjusted Gross Profit

$

240,233

 

 

$

118,655

 

 

$

76,187

 

 

$

5,351

 

 

$

440,426

 

Gross Margin

 

61.3

%

 

 

62.6

%

 

 

59.6

%

 

 

69.7

%

 

 

61.5

%

Adjusted Gross Margin

 

63.6

%

 

 

64.9

%

 

 

67.3

%

 

 

78.5

%

 

 

64.7

%

 

Nine Months Ended September 30, 2022

 

Thryv U.S.

 

Thryv International

 

 

(in thousands)

Marketing

Services

 

SaaS

 

Marketing

Services

 

SaaS

 

Total

Reconciliation of Adjusted Gross Profit

 

 

 

 

 

 

 

 

 

Gross profit

$

415,130

 

 

$

95,328

 

 

$

89,694

 

 

$

1,325

 

 

$

601,477

 

Plus:

 

 

 

 

 

 

 

 

 

Depreciation and amortization expense

 

13,381

 

 

 

3,278

 

 

 

11,771

 

 

 

337

 

 

 

28,767

 

Stock-based compensation expense

 

251

 

 

 

63

 

 

 

 

 

 

 

 

 

314

 

Adjusted Gross Profit

$

428,762

 

 

$

98,669

 

 

$

101,465

 

 

$

1,662

 

 

$

630,558

 

Gross Margin

 

65.7

%

 

 

62.0

%

 

 

67.1

%

 

 

41.9

%

 

 

65.2

%

Adjusted Gross Margin

 

67.8

%

 

 

64.1

%

 

 

75.9

%

 

 

52.5

%

 

 

68.3

%

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 September 30, 2023

(in thousands)

Marketing Services

 

SaaS

 

U.S.

 

International

 

Total

 

U.S.

 

International

 

Total

Revenue

$

92,884

 

 

$

23,578

 

 

$

116,462

 

 

$

64,650

 

 

$

2,710

 

 

$

67,360

 

Adjusted EBITDA

 

5,369

 

 

 

2,466

 

 

 

7,835

 

 

 

1,986

 

 

 

(2,490

)

 

 

(504

)

Adjusted EBITDA Margin

 

5.8

%

 

 

10.5

%

 

 

6.7

%

 

 

3.1

%

 

 

(91.9

)%

 

 

(0.7

)%

 

Three Months Ended September 30, 2022

(in thousands)

Marketing Services

 

SaaS

 

U.S.

 

International

 

Total

 

U.S.

 

International

 

Total

Revenue

$

197,174

 

 

$

26,833

 

 

$

224,007

 

 

$

55,353

 

 

$

1,290

 

 

$

56,643

 

Adjusted EBITDA

 

61,802

 

 

 

5,807

 

 

 

67,609

 

 

 

398

 

 

 

(2,575

)

 

 

(2,177

)

Adjusted EBITDA Margin

 

31.3

%

 

 

21.6

%

 

 

30.2

%

 

 

0.7

%

 

 

(199.6

)%

 

 

(3.8

)%

 

Nine Months Ended September 30, 2023

(in thousands)

Marketing Services

 

SaaS

 

U.S.

 

International

 

Total

 

U.S.

 

International

 

Total

Revenue

$

377,868

 

 

$

113,183

 

 

$

491,051

 

 

$

182,927

 

 

$

6,820

 

 

$

189,747

 

Adjusted EBITDA

 

84,866

 

 

 

44,851

 

 

 

129,717

 

 

 

10,231

 

 

 

(4,709

)

 

 

5,522

 

Adjusted EBITDA Margin

 

22.5

%

 

 

39.6

%

 

 

26.4

%

 

 

5.6

%

 

 

(69.0

)%

 

 

2.9

%

 

Nine Months Ended September 30, 2022

(in thousands)

Marketing Services

 

SaaS

 

U.S.

 

International

 

Total

 

U.S.

 

International

 

Total

Revenue

$

632,277

 

 

$

133,715

 

 

$

765,992

 

 

$

153,863

 

 

$

3,165

 

 

$

157,028

 

Adjusted EBITDA

 

211,871

 

 

 

64,449

 

 

 

276,320

 

 

 

(3,769

)

 

 

(7,402

)

 

 

(11,171

)

Adjusted EBITDA Margin

 

33.5

%

 

 

48.2

%

 

 

36.1

%

 

 

(2.4

)%

 

 

(233.9

)%

 

 

(7.1

)%

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”) 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.

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