Grows SaaS subscribers over 50% year-over-yearQ2 2024 SaaS Adjusted EBITDA exceeds guidance range by $2 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 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

  • 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

Outlook

Based on information available as of August 1, 2024, Thryv is issuing guidance4 for the third quarter of 2024 and full year 2024 as indicated below:

 

 

 

3rd Quarter

 

Full Year

(in millions)

 

 

2024

 

2024

SaaS Revenue

 

 

$82 - $84

 

$326 - $329

SaaS Adjusted EBITDA

 

 

$9 - $10

 

$30 - $32

 

3rd Quarter

 

4th Quarter

 

Full Year

(in millions)

2024

 

2024

 

2024

Marketing Services Revenue

$94 - $97

 

$85 - $89

 

$485 - $492

Marketing Services Adjusted EBITDA

 

 

 

 

$128 - $131

_______________

1Defined as Gross profit adjusted to exclude the impact of depreciation and amortization expense and stock-based compensation expense.

2Seasoned Net Dollar Retention is defined as net dollar retention excluding clients acquired over the previous 12 months. 3Defined 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. 4These 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.

Earnings Conference Call Information

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.”

Thryv Holdings, Inc. and Subsidiaries

Consolidated Statements of Operations and Comprehensive Income

 

 

Three Months Ended

 

Six Months Ended

 

June 30,

 

June 30,

(in thousands, except share and per share data)

2024

 

2023

 

2024

 

2023

Revenue

$

224,084

 

 

$

251,421

 

 

$

457,708

 

 

$

496,976

 

Cost of services

 

75,496

 

 

 

91,336

 

 

 

155,479

 

 

 

182,083

 

Gross profit

 

148,588

 

 

 

160,085

 

 

 

302,229

 

 

 

314,893

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

Sales and marketing

 

65,409

 

 

 

75,683

 

 

 

135,500

 

 

 

152,026

 

General and administrative

 

51,841

 

 

 

53,695

 

 

 

104,257

 

 

 

101,375

 

Total operating expenses

 

117,250

 

 

 

129,378

 

 

 

239,757

 

 

 

253,401

 

 

 

 

 

 

 

 

 

Operating income

 

31,338

 

 

 

30,707

 

 

 

62,472

 

 

 

61,492

 

Other income (expense):

 

 

 

 

 

 

 

Interest expense

 

(10,001

)

 

 

(16,292

)

 

 

(23,360

)

 

 

(32,780

)

Interest expense, related party

 

(2,174

)

 

 

 

 

 

(2,174

)

 

 

 

Other components of net periodic pension cost

 

(1,581

)

 

 

(1,865

)

 

 

(3,162

)

 

 

(1,986

)

Other expense

 

(5,416

)

 

 

 

 

 

(7,789

)

 

 

(366

)

Income before income tax (expense) benefit

 

12,166

 

 

 

12,550

 

 

 

25,987

 

 

 

26,360

 

Income tax (expense) benefit

 

(6,618

)

 

 

3,428

 

 

 

(12,015

)

 

 

(1,068

)

Net income

$

5,548

 

 

$

15,978

 

 

$

13,972

 

 

$

25,292

 

Other comprehensive income (loss):

 

 

 

 

 

 

 

Foreign currency translation adjustment, net of tax

 

67

 

 

 

(302

)

 

 

(198

)

 

 

(2,490

)

Comprehensive income

$

5,615

 

 

$

15,676

 

 

$

13,774

 

 

$

22,802

 

 

 

 

 

 

 

 

 

Net income per common share:

 

 

 

 

 

 

 

Basic

$

0.15

 

 

$

0.46

 

 

$

0.39

 

 

$

0.73

 

Diluted

$

0.15

 

 

$

0.43

 

 

$

0.37

 

 

$

0.68

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

Basic

 

36,004,324

 

 

 

34,575,338

 

 

 

35,818,549

 

 

 

34,625,561

 

Diluted

 

37,631,825

 

 

 

36,863,295

 

 

 

38,032,132

 

 

 

36,956,933

 

Thryv Holdings, Inc. and Subsidiaries

Consolidated Balance Sheets

 

(in thousands, except share data)

June 30, 2024

 

December 31, 2023

Assets

 

 

 

Current assets

 

 

 

Cash and cash equivalents

$

15,519

 

 

$

18,216

 

Accounts receivable, net of allowance of $18,042 in 2024 and $14,926 in 2023

 

193,725

 

 

 

205,503

 

Contract assets, net of allowance of $37 in 2024 and $35 in 2023

 

8,118

 

 

 

2,909

 

Taxes receivable

 

1,516

 

 

 

3,085

 

Prepaid expenses

 

23,124

 

 

 

17,771

 

Deferred costs

 

12,796

 

 

 

16,722

 

Other current assets

 

5,822

 

 

 

2,662

 

Total current assets

 

260,620

 

 

 

266,868

 

Fixed assets and capitalized software, net

 

37,805

 

 

 

38,599

 

Goodwill

 

300,995

 

 

 

302,400

 

Intangible assets, net

 

6,640

 

 

 

18,788

 

Deferred tax assets

 

152,171

 

 

 

128,051

 

Other assets

 

27,252

 

 

 

28,464

 

Total assets

$

785,483

 

 

$

783,170

 

 

 

 

 

Liabilities and Stockholders' Equity

 

 

 

Current liabilities

 

 

 

Accounts payable

$

8,661

 

 

$

10,348

 

Accrued liabilities

 

110,193

 

 

 

105,903

 

Current portion of unrecognized tax benefits

 

25,060

 

 

 

23,979

 

Contract liabilities

 

25,668

 

 

 

44,558

 

Current portion of Term Loan

 

35,783

 

 

 

70,000

 

Current portion of Term Loan, related party

 

16,717

 

 

 

 

Other current liabilities

 

6,022

 

 

 

8,402

 

Total current liabilities

 

228,104

 

 

 

263,190

 

Term Loan, net

 

183,772

 

 

 

230,052

 

Term Loan, net, related party

 

87,820

 

 

 

 

ABL Facility

 

18,000

 

 

 

48,845

 

Pension obligations, net

 

72,279

 

 

 

69,388

 

Other liabilities

 

12,448

 

 

 

18,995

 

Total long-term liabilities

 

374,319

 

 

 

367,280

 

Commitments and contingencies

 

 

 

Stockholders' equity

 

 

 

Common stock - $0.01 par value, 250,000,000 shares authorized; 63,808,097 shares issued and 36,294,269 shares outstanding at June 30, 2024; and 62,660,783 shares issued and 35,302,746 shares outstanding at December 31, 2023

 

638

 

 

 

627

 

Additional paid-in capital

 

1,170,798

 

 

 

1,151,259

 

Treasury stock - 27,513,828 shares at June 30, 2024 and 27,358,037 shares at December 31, 2023

 

(488,757

)

 

 

(485,793

)

Accumulated other comprehensive loss

 

(15,389

)

 

 

(15,191

)

Accumulated deficit

 

(484,230

)

 

 

(498,202

)

Total stockholders' equity

 

183,060

 

 

 

152,700

 

Total liabilities and stockholders' equity

$

785,483

 

 

$

783,170

 

Thryv Holdings, Inc. and Subsidiaries

Consolidated Statements of Cash Flows

 

 

Six Months Ended June 30,

(in thousands)

2024

 

2023

Cash Flows from Operating Activities

 

 

 

Net income

$

13,972

 

 

$

25,292

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

Depreciation and amortization

 

28,625

 

 

 

31,098

 

Amortization of deferred commissions

 

9,624

 

 

 

5,032

 

Amortization of debt issuance costs

 

2,255

 

 

 

2,721

 

Deferred income taxes

 

(24,060

)

 

 

(9,135

)

Provision for credit losses and service credits

 

12,179

 

 

 

11,580

 

Stock-based compensation expense

 

11,642

 

 

 

11,191

 

Other components of net periodic pension cost

 

3,162

 

 

 

1,986

 

Loss (gain) on foreign currency exchange rates

 

1,151

 

 

 

(881

)

Non-cash loss from the remeasurement of the indemnification asset

 

 

 

 

10,734

 

Loss on early extinguishment of debt

 

6,638

 

 

 

 

Other

 

(3,170

)

 

 

 

Changes in working capital items, excluding acquisitions:

 

 

 

Accounts receivable

 

923

 

 

 

25,075

 

Contract assets

 

(5,210

)

 

 

837

 

Prepaid expenses and other assets

 

(10,614

)

 

 

10,090

 

Accounts payable and accrued liabilities

 

2,428

 

 

 

(38,654

)

Other liabilities

 

(21,885

)

 

 

(29,230

)

Net cash provided by operating activities

 

27,660

 

 

 

57,736

 

 

 

 

 

Cash Flows from Investing Activities

 

 

 

Additions to fixed assets and capitalized software

 

(16,230

)

 

 

(14,016

)

Acquisition of a business, net of cash acquired

 

 

 

 

(8,897

)

Other

 

 

 

 

(217

)

Net cash used in investing activities

 

(16,230

)

 

 

(23,130

)

 

 

 

 

Cash Flows from Financing Activities

 

 

 

Proceeds from Term Loan

 

234,256

 

 

 

 

Proceeds from Term Loan, related party

 

109,444

 

 

 

 

Payments of Term Loan

 

(318,654

)

 

 

(52,500

)

Payments of Term Loan, related party

 

(4,339

)

 

 

 

Proceeds from ABL Facility

 

230,079

 

 

 

483,473

 

Payments of ABL Facility

 

(260,924

)

 

 

(469,750

)

Debt issuance costs

 

(5,319

)

 

 

 

Purchase of treasury stock

 

(499

)

 

 

 

Other

 

5,442

 

 

 

3,826

 

Net cash used in financing activities

 

(10,514

)

 

 

(34,951

)

 

 

 

 

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

 

(448

)

 

 

(240

)

Increase (decrease) in cash, cash equivalents and restricted cash

 

468

 

 

 

(585

)

Cash, cash equivalents and restricted cash, beginning of period

 

20,530

 

 

 

18,180

 

Cash, cash equivalents and restricted cash, end of period

$

20,998

 

 

$

17,595

 

 

 

 

 

Supplemental Information

 

 

 

Cash paid for interest

$

24,378

 

 

$

29,592

 

Cash paid for income taxes, net

$

13,343

 

 

$

7,419

 

 

 

 

 

Non-cash investing and financing activities

 

 

 

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

$

 

 

$

15,760

 

Segment Information

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:

 

Three Months Ended June 30,

 

Change

(in thousands)

2024

 

2023

 

Amount

 

%

Revenue

 

 

 

 

 

 

 

Marketing Services

$

146,290

 

$

188,963

 

$

(42,673

)

 

(22.6

)%

SaaS

 

77,794

 

 

62,458

 

 

15,336

 

 

24.6

%

Total Revenue

$

224,084

 

$

251,421

 

$

(27,337

)

 

(10.9

)%

 

 

 

 

 

 

 

 

Segment Gross Profit

 

 

 

 

 

 

 

Marketing Services

$

96,299

 

$

120,875

 

$

(24,576

)

 

(20.3

)%

SaaS

 

52,289

 

 

39,210

 

 

13,079

 

 

33.4

%

Consolidated Segment Gross Profit

$

148,588

 

$

160,085

 

$

(11,497

)

 

(7.2

)%

 

 

 

 

 

 

 

 

Segment EBITDA

 

 

 

 

 

 

 

Marketing Services

$

49,149

 

$

63,209

 

$

(14,060

)

 

(22.2

)%

SaaS

 

10,165

 

 

6,230

 

 

3,935

 

 

63.2

%

Consolidated Adjusted EBITDA

$

59,314

 

$

69,439

 

$

(10,125

)

 

(14.6

)%

 

Six Months Ended June 30,

 

Change

(in thousands)

2024

 

2023

 

Amount

 

%

Revenue

 

 

 

 

 

 

 

Marketing Services

$

305,592

 

$

374,589

 

$

(68,997

)

 

(18.4

)%

SaaS

 

152,116

 

 

122,387

 

 

29,729

 

 

24.3

%

Total Revenue

$

457,708

 

$

496,976

 

$

(39,268

)

 

(7.9

)%

 

 

 

 

 

 

 

 

Segment Gross Profit

 

 

 

 

 

 

 

Marketing Services

$

200,845

 

$

238,529

 

$

(37,684

)

 

(15.8

)%

SaaS

 

101,384

 

 

76,364

 

 

25,020

 

 

32.8

%

Consolidated Segment Gross Profit

$

302,229

 

$

314,893

 

$

(12,664

)

 

(4.0

)%

 

 

 

 

 

 

 

 

Segment EBITDA

 

 

 

 

 

 

 

Marketing Services

$

99,828

 

$

121,882

 

$

(22,054

)

 

(18.1

)%

SaaS

 

13,600

 

 

6,026

 

 

7,574

 

 

125.7

%

Consolidated Adjusted EBITDA

$

113,428

 

$

127,908

 

$

(14,480

)

 

(11.3

)%

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 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. 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 Income:

 

Three Months Ended June 30,

 

Six Months Ended June 30,

(in thousands)

2024

 

2023

 

2024

 

2023

Reconciliation of Adjusted EBITDA

 

 

 

 

 

 

 

Net income

$

5,548

 

 

$

15,978

 

 

$

13,972

 

 

$

25,292

Interest expense

 

12,175

 

 

 

16,292

 

 

 

25,534

 

 

 

32,780

Depreciation and amortization expense

 

14,072

 

 

 

15,667

 

 

 

28,625

 

 

 

31,098

Stock-based compensation expense (1)

 

6,353

 

 

 

5,798

 

 

 

11,642

 

 

 

11,191

Restructuring and integration expenses (2)

 

7,553

 

 

 

3,921

 

 

 

12,818

 

 

 

9,261

Income tax expense (benefit)

 

6,618

 

 

 

(3,428

)

 

 

12,015

 

 

 

1,068

Transaction costs (3)

 

 

 

 

 

 

 

 

 

 

373

Other components of net periodic pension cost (4)

 

1,581

 

 

 

1,865

 

 

 

3,162

 

 

 

1,986

Loss on early extinguishment of debt (5)

 

6,638

 

 

 

 

 

 

6,638

 

 

 

Non-cash loss from remeasurement of indemnification asset (6)

 

 

 

 

11,490

 

 

 

 

 

 

10,734

Other (7)

 

(1,224

)

 

 

1,856

 

 

 

(978

)

 

 

4,125

Adjusted EBITDA

$

59,314

 

 

$

69,439

 

 

$

113,428

 

 

$

127,908

(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 six months ended June 30, 2024 and 2023, 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 and other transaction costs.

(4)

Other components of net periodic pension cost 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 relates to periodic mark-to-market pension remeasurement.

(5)

In connection with the debt refinancing completed on May 1, 2024, the Company recorded a Loss on early extinguishment of debt related to the write-off of certain unamortized debt issuance costs on the Company's Prior Term Loan and Prior ABL Facility.

(6)

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.

(7)

Other primarily represents foreign exchange-related expense (income).

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 June 30, 2024

(in thousands)

Marketing Services

 

SaaS

 

Total

Reconciliation of Adjusted Gross Profit

 

 

 

 

 

Gross profit

$

96,299

 

 

$

52,289

 

 

$

148,588

 

Plus:

 

 

 

 

 

Depreciation and amortization expense

 

3,989

 

 

 

1,877

 

 

 

5,866

 

Stock-based compensation expense

 

98

 

 

 

76

 

 

 

174

 

Adjusted Gross Profit

$

100,386

 

 

$

54,242

 

 

$

154,628

 

Gross Margin

 

65.8

%

 

 

67.2

%

 

 

66.3

%

Adjusted Gross Margin

 

68.6

%

 

 

69.7

%

 

 

69.0

%

 

Three Months Ended June 30, 2023

(in thousands)

Marketing Services

 

SaaS

 

Total

Reconciliation of Adjusted Gross Profit

 

 

 

 

 

Gross profit

$

120,875

 

 

$

39,210

 

 

$

160,085

 

Plus:

 

 

 

 

 

Depreciation and amortization expense

 

6,208

 

 

 

1,416

 

 

 

7,624

 

Stock-based compensation expense

 

119

 

 

 

54

 

 

 

173

 

Adjusted Gross Profit

$

127,202

 

 

$

40,680

 

 

$

167,882

 

Gross Margin

 

64.0

%

 

 

62.8

%

 

 

63.7

%

Adjusted Gross Margin

 

67.3

%

 

 

65.1

%

 

 

66.8

%

 

Six Months Ended June 30, 2024

(in thousands)

Marketing Services

 

SaaS

 

Total

Reconciliation of Adjusted Gross Profit

 

 

 

 

 

Gross profit

$

200,845

 

 

$

101,384

 

 

$

302,229

 

Plus:

 

 

 

 

 

Depreciation and amortization expense

 

8,061

 

 

 

3,581

 

 

 

11,642

 

Stock-based compensation expense

 

211

 

 

 

136

 

 

 

347

 

Adjusted Gross Profit

$

209,117

 

 

$

105,101

 

 

$

314,218

 

Gross Margin

 

65.7

%

 

 

66.6

%

 

 

66.0

%

Adjusted Gross Margin

 

68.4

%

 

 

69.1

%

 

 

68.7

%

 

Six Months Ended June 30, 2023

(in thousands)

Marketing Services

 

SaaS

 

Total

Reconciliation of Adjusted Gross Profit

 

 

 

 

 

Gross profit

$

238,529

 

 

$

76,364

 

 

$

314,893

 

Plus:

 

 

 

 

 

Depreciation and amortization expense

 

11,905

 

 

 

2,702

 

 

 

14,607

 

Stock-based compensation expense

 

222

 

 

 

100

 

 

 

322

 

Adjusted Gross Profit

$

250,656

 

 

$

79,166

 

 

$

329,822

 

Gross Margin

 

63.7

%

 

 

62.4

%

 

 

63.4

%

Adjusted Gross Margin

 

66.9

%

 

 

64.7

%

 

 

66.4

%

Supplemental Financial Information

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.

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 June 30, 2024

(in thousands)

Marketing Services

 

SaaS

 

Total

Revenue

$

146,290

 

 

$

77,794

 

 

$

224,084

 

Adjusted EBITDA

 

49,149

 

 

 

10,165

 

 

 

59,314

 

Adjusted EBITDA Margin

 

33.6

%

 

 

13.1

%

 

 

26.5

%

 

Three Months Ended June 30, 2023

(in thousands)

Marketing Services

 

SaaS

 

Total

Revenue

$

188,963

 

 

$

62,458

 

 

$

251,421

 

Adjusted EBITDA

 

63,209

 

 

 

6,230

 

 

 

69,439

 

Adjusted EBITDA Margin

 

33.5

%

 

 

10.0

%

 

 

27.6

%

 

Six Months Ended June 30, 2024

(in thousands)

Marketing Services

 

SaaS

 

Total

Revenue

$

305,592

 

 

$

152,116

 

 

$

457,708

 

Adjusted EBITDA

 

99,828

 

 

 

13,600

 

 

 

113,428

 

Adjusted EBITDA Margin

 

32.7

%

 

 

8.9

%

 

 

24.8

%

 

Six Months Ended June 30, 2023

(in thousands)

Marketing Services

 

SaaS

 

Total

Revenue

$

374,589

 

 

$

122,387

 

 

$

496,976

 

Adjusted EBITDA

 

121,882

 

 

 

6,026

 

 

 

127,908

 

Adjusted EBITDA Margin

 

32.5

%

 

 

4.9

%

 

 

25.7

%

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: 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 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

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.com.

Media Contact: Julie Murphy Thryv, Inc. 617.967.5426 julie.murphy@thryv.com

Investor Contact: Cameron Lessard Thryv, Inc. 214.773.7022 cameron.lessard@thryv.com

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