Thryv Grows SaaS Revenue 25% in Second Quarter 2024, Raises Full Year 2024 SaaS Adjusted EBITDA Guidance

Second quarter results

August 02, 2024 // Franchising.com // 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.”

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

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

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.

Outlook and guidance

Outlook

Based on information available as of July 31, 2024, Thryv is issuing guidance4 for the third quarter of 2024 and full year 2024 as indicated below:

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.”

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.

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:

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.

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.

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.

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.

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.