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Thryv Grows SaaS Revenue 26% Year-Over-Year in Second Quarter 2022

08/04/2022

Raises Revenue and EBITDA Guidance for Full Year 2022

DALLAS--(BUSINESS WIRE)-- 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 second quarter of 2022 and has raised revenue guidance for full year 2022.

“We are pleased to report a strong second quarter,” said Joe Walsh, Chairman and CEO. “We saw significant SaaS revenue growth, ahead of our SaaS revenue guidance targets. Importantly, this growth was driven by double-digit year-over-year increases in Thryv's SaaS subscribers, as well as continued improvements in average revenue per unit - or ARPU. We also had an excellent quarter in our Marketing Services business which benefited from our recent acquisition of Vivial.”

Because of the solid results exceeding guidance, Thryv is increasing the projected full year SaaS and Marketing Services revenue and Adjusted EBITDA.

“We are focused on driving growth, especially continued investment in subscriber growth, while ensuring we deliver on our guidance, both top line and bottom line," Walsh continued. "In support of our goal of driving SaaS subscriber growth, we recently announced the hiring of Tami Cannizzaro as our Chief Marketing Officer. Tami is making a difference already, driving performance in our inbound channel as well as enhancing support of Thryv's local sales team.”

"Our clients tend to be well established small businesses. They have historically been recession resilient as they mainly offer non-discretionary services. Adopting Thryv software allows these small businesses to more effectively manage their businesses, helping them reduce costs and improve their performance."

Second Quarter 2022 Financial Highlights:

Revenue

  • Total SaaS1 revenue was $52.2 million, a 26.1% increase year-over-year
  • Total Marketing Services revenue was $281.8 million, a 12.9% increase year-over-year
  • Consolidated total revenue was $334.0 million, an increase of 14.8% year-over-year

Profitability

  • Consolidated net income was $58.0 million
  • Consolidated Adjusted EBITDA2 was $116.0 million, representing an Adjusted EBITDA margin of 34.7%
  • Total SaaS3 Adjusted EBITDA loss was $2.2 million
  • Total Marketing Services4 Adjusted EBITDA was $118.2 million, representing an Adjusted EBITDA margin of 42.0%
  • Consolidated Gross Profit was $228.0 million, an increase of 27.8% year-over-year
  • Consolidated Adjusted Gross Profit5 was $237.3 million
  • SaaS Gross Profit was $32.6 million, representing a Gross Profit Margin of 62.4%
  • SaaS Adjusted Gross Profit6 was $33.7 million, representing an Adjusted Gross Profit Margin of 64.5%

SaaS Metrics

  • SaaS monthly Average Revenue per Unit (“ARPU”)7 increased to $358 for the second quarter of 2022, compared to $323 in the second quarter of 2021
  • Total SaaS clients increased 11% year-over-year to 50 thousand for the second quarter of 2022
  • Seasoned Net Dollar Retention8 was 91% at end of the second quarter of 2022
  • SaaS monthly active users9 increased 27% year-over-year to 38 thousand active users for the second quarter of 2022
  • ThryvPay annualized total payment volume of approximately $150 million for the second quarter of 2022

Outlook

Based on information available as of August 4, 2022, Thryv is raising guidance10 for the third quarter of 2022 and full year 2022 as indicated below:

For the third quarter of 2022, the Company expects:

  • Total SaaS revenue in a range of $53.7 to $54.2 million
  • Total SaaS Adjusted EBITDA loss11 in a range of $4.8 to $5.3 million
  • Total Marketing Services revenue in a range of $205.0 to $210.0 million

For the full year 2022, the Company expects:

  • Total SaaS revenue in a range of $209.5 to $211.0 million
  • Total SaaS Adjusted EBITDA loss11 in a range of $16.0 to $19.0 million
  • Total Marketing Services revenue in a range of $955.0 to $970.0 million
  • Total Marketing Services Adjusted EBITDA12 in a range of $335.0 to $340.0 million
1 Total SaaS revenue in the U.S. and International segments was $51.2 million and $1.0 million for the three months ended June 30, 2022, respectively.

2Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP financial measures. See “Non-GAAP Measures” below for additional information.

3 Total SaaS Adjusted EBITDA in the U.S. was $0.2 million and Total SaaS International Adjusted EBITDA loss was $2.4 million for the three months ended June 30, 2022.

4 Marketing Services Adjusted EBITDA in the U.S. and International segments was $83.7 million and $34.5 million for the three months ended June 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.

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.

12 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 Thursday, August 4, 2022 at 8:30 a.m. (Eastern Time) to discuss the Company's second 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.”

Final Results

Thryv Holdings, Inc. and Subsidiaries

Consolidated Statements of Operations and Comprehensive Income (Loss)

 

 

Three Months Ended

 

Six Months Ended

 

June 30,

 

June 30,

(in thousands, except share and per share data)

2022

 

2021

 

2022

 

2021

Revenue

$

333,995

 

 

$

291,047

 

 

$

642,370

 

 

$

571,653

 

Cost of services

 

106,013

 

 

 

112,607

 

 

 

216,532

 

 

 

210,767

 

Gross profit

 

227,982

 

 

 

178,440

 

 

 

425,838

 

 

 

360,886

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

Sales and marketing

 

91,813

 

 

 

87,394

 

 

 

185,768

 

 

 

163,934

 

General and administrative

 

52,650

 

 

 

33,100

 

 

 

104,844

 

 

 

74,379

 

Impairment charges

 

222

 

 

 

3,611

 

 

 

222

 

 

 

3,611

 

Total operating expenses

 

144,685

 

 

 

124,105

 

 

 

290,834

 

 

 

241,924

 

 

 

 

 

 

 

 

 

Operating income

 

83,297

 

 

 

54,335

 

 

 

135,004

 

 

 

118,962

 

Other income (expense):

 

 

 

 

 

 

 

Interest expense

 

(13,756

)

 

 

(14,502

)

 

 

(26,864

)

 

 

(26,109

)

Interest expense, related party

 

(896

)

 

 

(4,668

)

 

 

(2,655

)

 

 

(8,733

)

Other components of net periodic pension benefit

 

9,153

 

 

 

272

 

 

 

9,223

 

 

 

725

 

Other income (expense)

 

2,404

 

 

 

(2,966

)

 

 

8,626

 

 

 

(4,059

)

Income before income tax (expense)

 

80,202

 

 

 

32,471

 

 

 

123,334

 

 

 

80,786

 

Income tax (expense)

 

(22,200

)

 

 

(8,112

)

 

 

(31,821

)

 

 

(19,921

)

Net income

$

58,002

 

 

$

24,359

 

 

$

91,513

 

 

$

60,865

 

Other comprehensive income (loss):

 

 

 

 

 

 

 

Foreign currency translation adjustment

 

(10,139

)

 

 

(1,478

)

 

 

(4,691

)

 

 

(4,445

)

Comprehensive income

$

47,863

 

 

$

22,881

 

 

$

86,822

 

 

$

56,420

 

 

 

 

 

 

 

 

 

Net income per common share:

 

 

 

 

 

 

 

Basic

$

1.69

 

 

$

0.72

 

 

$

2.68

 

 

$

1.82

 

Diluted

$

1.61

 

 

$

0.66

 

 

$

2.47

 

 

$

1.72

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

Basic

 

34,250,706

 

 

 

33,622,666

 

 

 

34,205,593

 

 

 

33,367,734

 

Diluted

 

36,137,989

 

 

 

36,687,030

 

 

 

37,048,087

 

 

 

35,352,445

 

Thryv Holdings, Inc. and Subsidiaries

Consolidated Balance Sheets

(in thousands, except share data)

June 30, 2022

 

December 31, 2021

Assets

(unaudited)

 

 

Current assets

 

 

 

Cash and cash equivalents

$

13,746

 

 

$

11,262

 

Accounts receivable, net of allowance of $16,077 in 2022 and $17,387 in 2021

 

296,619

 

 

 

279,053

 

Contract assets, net of allowance of $50 in 2022 and $88 in 2021

 

3,554

 

 

 

5,259

 

Taxes receivable

 

14,821

 

 

 

14,711

 

Prepaid expenses

 

32,463

 

 

 

22,418

 

Indemnification asset

 

25,233

 

 

 

24,346

 

Other current assets

 

13,470

 

 

 

13,596

 

Total current assets

 

399,906

 

 

 

370,645

 

Fixed assets and capitalized software, net

 

45,078

 

 

 

50,938

 

Goodwill

 

668,821

 

 

 

671,886

 

Intangible assets, net

 

61,387

 

 

 

82,577

 

Deferred tax assets

 

118,639

 

 

 

90,565

 

Other assets

 

26,503

 

 

 

33,891

 

Total assets

$

1,320,334

 

 

$

1,300,502

 

 

 

 

 

Liabilities and Stockholders' Equity

 

 

 

Current liabilities

 

 

 

Accounts payable

$

8,254

 

 

$

8,610

 

Accrued liabilities

 

143,559

 

 

 

131,813

 

Current portion of unrecognized tax benefits

 

30,658

 

 

 

29,771

 

Contract liabilities

 

24,041

 

 

 

51,726

 

Current portion of long-term debt

 

70,000

 

 

 

70,000

 

Other current liabilities

 

17,069

 

 

 

15,214

 

Total current liabilities

 

293,581

 

 

 

307,134

 

Term Loan, net

 

382,254

 

 

 

309,672

 

Term Loan, related party

 

30,348

 

 

 

142,875

 

ABL Facility

 

56,609

 

 

 

39,929

 

Pension obligations, net

 

115,655

 

 

 

140,167

 

Deferred tax liabilities

 

2,224

 

 

 

10,798

 

Other liabilities

 

28,049

 

 

 

35,212

 

Total long-term liabilities

 

615,139

 

 

 

678,653

 

Commitments and contingencies

 

 

 

Stockholders' equity

 

 

 

Common stock - $0.01 par value, 250,000,000 shares authorized; 61,121,058 shares issued and 34,435,516 shares outstanding at June 30, 2022; and 60,830,853 shares issued and 34,145,311 shares outstanding at December 31, 2021

 

611

 

 

 

608

 

Additional paid-in capital

 

1,094,362

 

 

 

1,084,288

 

Treasury stock - 26,685,542 shares at June 30, 2022 and December 31, 2021

 

(468,879

)

 

 

(468,879

)

Accumulated other comprehensive income (loss)

 

(12,738

)

 

 

(8,047

)

Accumulated deficit

 

(201,742

)

 

 

(293,255

)

Total stockholders' equity

 

411,614

 

 

 

314,715

 

Total liabilities and stockholders' equity

$

1,320,334

 

 

$

1,300,502

 

Thryv Holdings, Inc. and Subsidiaries

Consolidated Statements of Cash Flows

 

 

Six Months Ended June 30,

(in thousands)

2022

 

2021

Cash Flows from Operating Activities

(unaudited)

 

(unaudited)

Net income

$

91,513

 

 

$

60,865

 

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

 

 

 

Depreciation and amortization

 

42,561

 

 

 

49,626

 

Amortization of debt issuance costs

 

2,883

 

 

 

1,930

 

Deferred income taxes

 

(16,752

)

 

 

(51,439

)

Provision for credit losses and service credits

 

13,043

 

 

 

9,011

 

Stock-based compensation expense

 

5,738

 

 

 

3,892

 

Other components of net periodic pension (benefit)

 

(9,223

)

 

 

(725

)

Impairment charges

 

222

 

 

 

3,611

 

(Gain) loss on foreign currency exchange rates

 

(1,622

)

 

 

640

 

Bargain purchase gain

 

(7,005

)

 

 

 

Other

 

801

 

 

 

2,504

 

Changes in working capital items, excluding acquisitions:

 

 

 

Accounts receivable

 

(10,298

)

 

 

70,491

 

Contract assets

 

1,793

 

 

 

2,402

 

Prepaid expenses and other assets

 

7,922

 

 

 

(7,567

)

Accounts payable and accrued liabilities

 

(29,472

)

 

 

(47,875

)

Other liabilities

 

(35,201

)

 

 

(15,564

)

Net cash provided by operating activities

 

56,903

 

 

 

81,802

 

 

 

 

 

Cash Flows from Investing Activities

 

 

 

Additions to fixed assets and capitalized software

 

(9,648

)

 

 

(14,315

)

Proceeds from the sale of fixed assets

 

 

 

 

63

 

Acquisition of a business, net of cash acquired

 

(22,777

)

 

 

(174,190

)

Net cash (used in) investing activities

 

(32,425

)

 

 

(188,442

)

 

 

 

 

Cash Flows from Financing Activities

 

 

 

Proceeds from Term Loan

 

 

 

 

418,070

 

Proceeds from Term Loan, related party

 

 

 

 

260,930

 

Payments of Term Loan

 

(36,828

)

 

 

(62,089

)

Payments of Term Loan, related party

 

(5,672

)

 

 

(25,911

)

Payments of Senior Term Loan

 

 

 

 

(335,821

)

Payments of Senior Term Loan, related party

 

 

 

 

(113,789

)

Proceeds from ABL Facility

 

488,547

 

 

 

545,809

 

Payments of ABL Facility

 

(471,866

)

 

 

(567,025

)

Proceeds from exercises of stock options and stock warrants

 

4,338

 

 

 

17,265

 

Other

 

 

 

 

(13,960

)

Net cash (used in) provided by financing activities

 

(21,481

)

 

 

123,479

 

 

 

 

 

Effect of exchange rate changes on cash and cash equivalents

 

(627

)

 

 

(819

)

Increase in cash and cash equivalents and restricted cash

 

2,370

 

 

 

16,020

 

Cash and cash equivalents and restricted cash, beginning of period

 

13,557

 

 

 

2,406

 

Cash and cash equivalents and restricted cash, end of period

$

15,927

 

 

$

18,426

 

 

 

 

 

Supplemental Information

 

 

 

Cash paid for interest

$

24,915

 

 

$

37,608

 

Cash paid for income taxes, net

$

36,934

 

 

$

38,411

 

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

 

Three Months Ended June 30,

 

Change

(in thousands of $)

2022

 

2021

 

Amount

 

%

Revenue

 

 

 

 

 

 

 

Thryv U.S. (1)

 

 

 

 

 

 

 

Marketing Services

$

222,570

 

 

$

202,795

 

 

$

19,775

 

 

9.8

%

SaaS

 

51,167

 

 

 

41,386

 

 

 

9,781

 

 

23.6

%

Thryv International (2)

 

 

 

 

 

 

 

Marketing Services

 

59,218

 

 

 

46,857

 

 

 

12,361

 

 

26.4

%

SaaS

 

1,040

 

 

 

9

 

 

 

1,031

 

 

NM

 

Consolidated Revenue

$

333,995

 

 

$

291,047

 

 

$

42,948

 

 

14.8

%

 

 

 

 

 

 

 

 

Segment Gross Profit

 

 

 

 

 

 

 

Thryv U.S. (1)

 

 

 

 

 

 

 

Marketing Services

$

151,774

 

 

$

136,831

 

 

$

14,943

 

 

10.9

%

SaaS

 

32,092

 

 

 

25,314

 

 

 

6,778

 

 

26.8

%

Thryv International (2)

 

 

 

 

 

 

 

Marketing Services

 

43,627

 

 

 

16,290

 

 

 

27,337

 

 

167.8

%

SaaS

 

489

 

 

 

5

 

 

 

484

 

 

NM

 

Consolidated Segment Gross Profit

$

227,982

 

 

$

178,440

 

 

$

49,542

 

 

27.8

%

 

 

 

 

 

 

 

 

Segment EBITDA

 

 

 

 

 

 

 

Thryv U.S. (1)

 

 

 

 

 

 

 

Marketing Services

$

83,674

 

 

$

82,684

 

 

$

990

 

 

1.2

%

SaaS

 

197

 

 

 

(2,119

)

 

 

2,316

 

 

109.3

%

Thryv International (2)

 

 

 

 

 

 

 

Marketing Services

 

34,545

 

 

 

16,183

 

 

 

18,362

 

 

113.5

%

SaaS

 

(2,416

)

 

 

5

 

 

 

(2,421

)

 

NM

 

Consolidated Adjusted EBITDA

$

116,000

 

 

$

96,753

 

 

$

19,247

 

 

19.9

%

(1) Thryv U.S. includes Vivial results of operations subsequent to the January 21, 2022 acquisition date.

(2) Thryv International includes Thryv Australia results of operations subsequent to the March 1, 2021 acquisition date.

 

Six Months Ended June 30,

 

Change

(in thousands of $)

2022

 

2021

 

Amount

 

%

Revenue

 

 

 

 

 

 

 

Thryv U.S. (1)

 

 

 

 

 

 

 

Marketing Services

$

435,103

 

 

$

430,728

 

 

$

4,375

 

 

1.0

%

SaaS

 

98,510

 

 

 

78,637

 

 

 

19,873

 

 

25.3

%

Thryv International (2)

 

 

 

 

 

 

 

Marketing Services

 

106,882

 

 

 

62,279

 

 

 

44,603

 

 

71.6

%

SaaS

 

1,875

 

 

 

9

 

 

 

1,866

 

 

NM

 

Consolidated Revenue

$

642,370

 

 

$

571,653

 

 

$

70,717

 

 

12.4

%

 

 

 

 

 

 

 

 

Segment Gross Profit

 

 

 

 

 

 

 

Thryv U.S. (1)

 

 

 

 

 

 

 

Marketing Services

$

288,284

 

 

$

292,992

 

 

$

(4,708

)

 

(1.6

)%

SaaS

 

61,501

 

 

 

48,481

 

 

 

13,020

 

 

26.9

%

Thryv International (2)

 

 

 

 

 

 

 

Marketing Services

 

75,343

 

 

 

19,408

 

 

 

55,935

 

 

288.2

%

SaaS

 

710

 

 

 

5

 

 

 

705

 

 

NM

 

Consolidated Segment Gross Profit

$

425,838

 

 

$

360,886

 

 

$

64,952

 

 

18.0

%

 

 

 

 

 

 

 

 

Segment EBITDA

 

 

 

 

 

 

 

Thryv U.S. (1)

 

 

 

 

 

 

 

Marketing Services

$

150,069

 

 

$

181,315

 

 

$

(31,246

)

 

(17.2

)%

SaaS

 

(4,167

)

 

 

(1,803

)

 

 

(2,364

)

 

(131.1

)%

Thryv International (2)

 

 

 

 

 

 

 

Marketing Services

 

58,642

 

 

 

22,169

 

 

 

36,473

 

 

164.5

%

SaaS

 

(4,827

)

 

 

5

 

 

 

(4,832

)

 

NM

 

Consolidated Adjusted EBITDA

$

199,717

 

 

$

201,686

 

 

$

(1,969

)

 

(1.0

)%

(1) Thryv U.S. includes Vivial results subsequent to the January 21, 2022 acquisition date.

(2) Thryv International includes Thryv Australia results subsequent to the March 1, 2021 acquisition date.

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)

2022

 

2021

 

2022

 

2021

Reconciliation of Adjusted EBITDA

 

 

 

 

 

 

 

Net income

$

58,002

 

 

$

24,359

 

 

$

91,513

 

 

$

60,865

 

Interest expense

 

14,652

 

 

 

19,170

 

 

 

29,519

 

 

 

34,842

 

Income tax expense

 

22,200

 

 

 

8,112

 

 

 

31,821

 

 

 

19,921

 

Depreciation and amortization expense

 

20,592

 

 

 

29,908

 

 

 

42,561

 

 

 

49,626

 

Loss on early extinguishment of debt

 

 

 

 

3,110

 

 

 

 

 

 

3,409

 

Restructuring and integration expenses (1)

 

4,822

 

 

 

3,489

 

 

 

10,649

 

 

 

12,723

 

Transaction costs (2)

 

1,616

 

 

 

5,440

 

 

 

3,336

 

 

 

15,986

 

Stock-based compensation expense (3)

 

3,810

 

 

 

1,921

 

 

 

5,738

 

 

 

3,892

 

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

 

(9,153

)

 

 

(272

)

 

 

(9,223

)

 

 

(725

)

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

 

(487

)

 

 

(844

)

 

 

(887

)

 

 

(844

)

Impairment charges

 

222

 

 

 

3,611

 

 

 

222

 

 

 

3,611

 

Other (6)

 

(276

)

 

 

(1,251

)

 

 

(5,532

)

 

 

(1,620

)

Adjusted EBITDA

$

116,000

 

 

$

96,753

 

 

$

199,717

 

 

$

201,686

 

(1)

For the three and six months ended June 30, 2022 and 2021, expenses relate to periodic efforts to enhance efficiencies and reduce costs, and include severance benefits, loss on disposal of fixed assets and capitalized software, and costs associated with abandoned facilities and system consolidation.

(2)

Expenses related to our direct listing, Thryv Australia and Vivial acquisitions and other transaction costs.

(3)

We record stock-based compensation expense related to the amortization of grant date fair value of the Company’s stock-based compensation awards. Additionally, stock-based compensation expense includes the remeasurement of these awards at each period end, prior to October 1, 2020.

(4)

Other components of net periodic pension (benefit) 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 (benefit) cost relates to the 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 includes expenses related to potential non income-based tax liabilities and foreign exchange-related expense.. Additionally, during the six months ended June 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 June 30, 2022

 

Thryv U.S.

 

Thryv International

 

 

(in thousands)

Marketing
Services

 

SaaS

 

Marketing
Services

 

SaaS

 

Total

Reconciliation of Adjusted Gross Profit

 

 

 

 

 

 

 

 

 

Gross profit

$

151,774

 

 

$

32,092

 

 

$

43,627

 

 

$

489

 

 

$

227,982

 

Plus:

 

 

 

 

 

 

 

 

 

Depreciation and amortization expense

 

4,393

 

 

 

1,012

 

 

 

3,666

 

 

 

66

 

 

 

9,137

 

Stock-based compensation expense

 

105

 

 

 

26

 

 

 

 

 

 

 

 

 

131

 

Adjusted Gross Profit

$

156,272

 

 

$

33,130

 

 

$

47,293

 

 

$

555

 

 

 

237,250

 

Gross Margin

 

68.2

%

 

 

62.7

%

 

 

73.7

%

 

 

47.0

%

 

 

68.3

%

Adjusted Gross Margin

 

70.2

%

 

 

64.7

%

 

 

79.9

%

 

 

53.4

%

 

 

71.0

%

 

Three Months Ended June 30, 2021

 

Thryv U.S.

 

Thryv International

 

 

(in thousands)

Marketing
Services

 

SaaS

 

Marketing
Services

 

SaaS

 

Total

Reconciliation of Adjusted Gross Profit

 

 

 

 

 

 

 

 

 

Gross profit

$

136,831

 

 

$

25,314

 

 

$

16,290

 

 

$

5

 

 

$

178,440

 

Plus:

 

 

 

 

 

 

 

 

 

Depreciation and amortization expense

 

4,424

 

 

 

901

 

 

 

11,489

 

 

 

3

 

 

 

16,817

 

Stock-based compensation expense

 

68

 

 

 

15

 

 

 

 

 

 

 

 

 

83

 

Adjusted Gross Profit

$

141,323

 

 

$

26,230

 

 

$

27,779

 

 

$

8

 

 

$

195,340

 

Gross Margin

 

67.5

%

 

 

61.2

%

 

 

34.8

%

 

 

55.6

%

 

 

61.3

%

Adjusted Gross Margin

 

69.7

%

 

 

63.4

%

 

 

59.3

%

 

 

88.9

%

 

 

67.1

%

 

Six Months Ended June 30, 2022

 

Thryv U.S.

 

Thryv International

 

 

(in thousands)

Marketing
Services

 

SaaS

 

Marketing
Services

 

SaaS

 

Total

Reconciliation of Adjusted Gross Profit

 

 

 

 

 

 

 

 

 

Gross profit

$

288,284

 

 

$

61,501

 

 

$

75,343

 

 

$

710

 

 

$

425,838

 

Plus:

 

 

 

 

 

 

 

 

 

Depreciation and amortization expense

 

8,788

 

 

 

1,991

 

 

 

8,032

 

 

 

142

 

 

 

18,953

 

Stock-based compensation expense

 

166

 

 

 

41

 

 

 

 

 

 

 

 

 

207

 

Adjusted Gross Profit

$

297,238

 

 

$

63,533

 

 

$

83,375

 

 

$

852

 

 

$

444,998

 

Gross Margin

 

66.3

%

 

 

62.4

%

 

 

70.5

%

 

 

37.9

%

 

 

66.3

%

Adjusted Gross Margin

 

68.3

%

 

 

64.5

%

 

 

78.0

%

 

 

45.4

%

 

 

69.3

%

 

Six Months Ended June 30, 2021

 

Thryv U.S.

 

Thryv International

 

 

(in thousands)

Marketing
Services

 

SaaS

 

Marketing
Services

 

SaaS

 

Total

Reconciliation of Adjusted Gross Profit

 

 

 

 

 

 

 

 

 

Gross profit

$

292,992

 

 

$

48,481

 

 

$

19,408

 

 

$

5

 

 

$

360,886

 

Plus:

 

 

 

 

 

 

 

 

 

Depreciation and amortization expense

 

9,043

 

 

 

1,656

 

 

 

17,359

 

 

 

3

 

 

 

28,061

 

Stock-based compensation expense

 

138

 

 

 

26

 

 

 

 

 

 

 

 

 

164

 

Adjusted Gross Profit

$

302,173

 

 

$

50,163

 

 

$

36,767

 

 

$

8

 

 

$

389,111

 

Gross Margin

 

68.0

%

 

 

61.7

%

 

 

31.2

%

 

 

55.6

%

 

 

63.1

%

Adjusted Gross Margin

 

70.2

%

 

 

63.8

%

 

 

59.0

%

 

 

88.9

%

 

 

68.1

%

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 June 30, 2022

(in thousands)

Marketing Services

 

SaaS

 

U.S.

 

International

 

Total

 

U.S.

 

International

 

Total

Revenue

$

222,570

 

 

$

59,218

 

 

$

281,788

 

 

$

51,167

 

 

$

1,040

 

 

$

52,207

 

Adjusted EBITDA

 

83,674

 

 

 

34,545

 

 

 

118,219

 

 

 

197

 

 

 

(2,416

)

 

 

(2,219

)

Adjusted EBITDA Margin

 

37.6

%

 

 

58.3

%

 

 

42.0

%

 

 

0.4

%

 

 

(232.3

) %

 

 

(4.3

) %

 

Three Months Ended June 30, 2021

(in thousands)

Marketing Services

 

SaaS

 

U.S.

 

International

 

Total

 

U.S.

 

International

 

Total

Revenue

$

202,795

 

 

$

46,857

 

 

$

249,652

 

 

$

41,386

 

 

$

9

 

 

$

41,395

 

Adjusted EBITDA

 

82,684

 

 

 

16,183

 

 

 

98,867

 

 

 

(2,119

)

 

 

5

 

 

 

(2,114

)

Adjusted EBITDA Margin

 

40.8

%

 

 

34.5

%

 

 

39.6

%

 

 

(5.1

) %

 

 

55.6

%

 

 

(5.1

) %

 

Six Months Ended June 30, 2022

(in thousands)

Marketing Services

 

SaaS

 

U.S.

 

International

 

Total

 

U.S.

 

International

 

Total

Revenue

$

435,103

 

 

$

106,882

 

 

$

541,985

 

 

$

98,510

 

 

$

1,875

 

 

$

100,385

 

Adjusted EBITDA

 

150,069

 

 

 

58,642

 

 

 

208,711

 

 

 

(4,167

)

 

 

(4,827

)

 

 

(8,994

)

Adjusted EBITDA Margin

 

34.5

%

 

 

54.9

%

 

 

38.5

%

 

 

(4.2

) %

 

 

(257.4

) %

 

 

(9.0

) %

 

Six Months Ended June 30, 2021

(in thousands)

Marketing Services

 

SaaS

 

U.S.

 

International

 

Total

 

U.S.

 

International

 

Total

Revenue

$

430,728

 

 

$

62,279

 

 

$

493,007

 

 

$

78,637

 

 

$

9

 

 

$

78,646

 

Adjusted EBITDA

 

181,315

 

 

 

22,169

 

 

 

203,484

 

 

 

(1,803

)

 

 

5

 

 

 

(1,798

)

Adjusted EBITDA Margin

 

42.1

%

 

 

35.6

%

 

 

41.3

%

 

 

(2.3

) %

 

 

55.6

%

 

 

(2.3

) %

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”), 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.

Media Contact:
Charity Lacey
Gregory FCA
Office: 619.368.4373
thryv@gregoryfca.com

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

Source: Thryv

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