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

Rhea-AI Summary

Thryv Holdings (NASDAQ:THRY) reported strong Q2 2024 results, with SaaS revenue growing 25% year-over-year to $77.8 million. The company saw a 52% increase in SaaS subscribers, reaching 85,000 clients. Despite this growth, total revenue decreased 11% to $224.1 million due to a 23% decline in Marketing Services revenue.

Key financial highlights include:

• Consolidated net income of $5.5 million ($0.15 per diluted share)
• Consolidated Adjusted EBITDA of $59.3 million (26.5% margin)
• SaaS Adjusted EBITDA of $10.2 million (13.1% margin)
• ThryvPay total payment volume increased 34% year-over-year to $80 million

Thryv raised its full-year 2024 SaaS Adjusted EBITDA guidance and projects Q3 2024 SaaS revenue between $82-$84 million.

Positive

• SaaS revenue grew 25% year-over-year to $77.8 million
• SaaS subscribers increased 52% year-over-year to 85,000 clients
• SaaS Adjusted EBITDA margin reached its highest level since becoming a public company
• ThryvPay total payment volume increased 34% year-over-year to $80 million
• Company raised full-year 2024 SaaS Adjusted EBITDA guidance

Negative

• Total revenue decreased 11% year-over-year to $224.1 million
• Marketing Services revenue declined 23% year-over-year to $146.3 million
• Consolidated net income decreased from $16.0 million in Q2 2023 to $5.5 million in Q2 2024
• Seasoned Net Dollar Retention was 94%, indicating some client churn

Financial Analyst

Thryv's Q2 2024 results showcase a compelling narrative of growth in its SaaS segment, contrasted by a decline in its traditional Marketing Services business. The 25% year-over-year increase in SaaS revenue to $77.8 million is particularly noteworthy, driven by a robust 52% growth in SaaS subscribers. This shift towards SaaS is a strategic move that positions Thryv favorably in the evolving small business software market.

The company's focus on upgrading marketing service clients to its SaaS platform is yielding results, with over 10% of current clients now using multiple paid centers. This cross-selling success is a positive indicator for future revenue growth and client retention. However, the 23% decrease in Marketing Services revenue to $146.3 million highlights the ongoing transition in Thryv's business model.

Financially, Thryv's performance is mixed. While consolidated revenue decreased by 11%, the company managed to maintain profitability with a net income of $5.5 million. The SaaS segment's Adjusted EBITDA margin of 13.1% shows improvement, reaching its highest level since going public. This suggests that the SaaS business is scaling efficiently.

The raised guidance for full-year 2024 SaaS Adjusted EBITDA indicates management's confidence in the continued growth and profitability of this segment. However, investors should closely monitor the decline in Marketing Services, as it still contributes significantly to overall revenue and EBITDA.

Tech Expert

Thryv's strategic focus on AI enhancements for its SaaS platform is a forward-thinking move in the competitive small business software market. By integrating AI capabilities, Thryv is positioning itself to offer more efficient and automated solutions for business growth and operations. This aligns with the broader industry trend of leveraging AI to improve user experience and productivity.

The company's 'center strategy' is gaining traction, with a significant increase in clients using multiple paid centers. This approach not only increases revenue per customer but also creates a more sticky product ecosystem, potentially improving long-term client retention. The jump from 2% to over 10% of clients using multiple centers in just one year is a strong indicator of successful product development and cross-selling efforts.

ThryvPay, the company's payment processing solution, showed impressive growth with a 34% year-over-year increase in total payment volume to $80 million. This suggests that Thryv is successfully penetrating the lucrative fintech space within its small business clientele, opening up additional revenue streams and deepening its relationship with customers.

The 94% Seasoned Net Dollar Retention rate, up 500 basis points year-over-year, is a strong technical indicator of product stickiness and customer satisfaction. This metric suggests that Thryv's SaaS offerings are delivering value to established clients, who are maintaining or increasing their spend over time.

– Grows SaaS subscribers over 50% year-over-year

– Q2 2024 SaaS Adjusted EBITDA exceeds guidance range by $2 million

DALLAS--(BUSINESS WIRE)-- 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 Center^SM and Marketing Center^SM. 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240801664269/en/

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

Source: Thryv

FAQ

What was Thryv's SaaS revenue growth in Q2 2024?

Thryv's SaaS revenue grew 25% year-over-year in Q2 2024, reaching $77.8 million.

How many SaaS subscribers does Thryv (THRY) have as of Q2 2024?

Thryv reported 85,000 SaaS subscribers as of Q2 2024, representing a 52% increase year-over-year.

What is Thryv's (THRY) guidance for Q3 2024 SaaS revenue?

Thryv projects Q3 2024 SaaS revenue to be between $82 million and $84 million.

How did Thryv's (THRY) Marketing Services revenue perform in Q2 2024?

Thryv's Marketing Services revenue decreased by 23% year-over-year to $146.3 million in Q2 2024.

What was Thryv's (THRY) ThryvPay total payment volume in Q2 2024?

Thryv's ThryvPay total payment volume reached $80 million in Q2 2024, a 34% increase year-over-year.