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

Rhea-AI Summary

Thryv Holdings, Inc. (NASDAQ:THRY) reported a robust second quarter of 2022, achieving a 26.1% increase in total SaaS revenue, reaching $52.2 million. The company raised its revenue and EBITDA guidance for the full year, driven by growth in SaaS subscribers and improved average revenue per unit (ARPU), which rose to $358. Marketing Services revenue also climbed 12.9% to $281.8 million. However, the total SaaS Adjusted EBITDA loss was $2.2 million. Overall, consolidated revenue increased 14.8% to $334.0 million.

Positive

• SaaS revenue increased by 26.1% year-over-year to $52.2 million.
• Marketing Services revenue rose by 12.9% to $281.8 million.
• Consolidated total revenue increased by 14.8% to $334.0 million.
• Adjusted EBITDA margin improved to 34.7%.

Negative

• Total SaaS Adjusted EBITDA loss was $2.2 million.
• SaaS Adjusted EBITDA loss projected for the full year is between $16.0 million to $19.0 million.

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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220804005163/en/

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

FAQ

What is Thryv's revenue growth for Q2 2022?

Thryv's SaaS revenue grew by 26.1% year-over-year, reaching $52.2 million.

What guidance has Thryv revised for full year 2022?

Thryv raised its revenue and EBITDA guidance for the full year of 2022 due to strong second-quarter results.

What is the expected total SaaS revenue for Q3 2022?

Thryv expects total SaaS revenue in the range of $53.7 to $54.2 million for Q3 2022.

How many SaaS clients does Thryv have as of Q2 2022?

Thryv reported an 11% increase in total SaaS clients, totaling 50,000.

What is Thryv's ARPU for Q2 2022?

Thryv's monthly average revenue per unit (ARPU) increased to $358 in Q2 2022.