Thryv® Reports Preliminary Fourth Quarter and Fiscal Year 2020 Financial Results, Provides Outlook for Fiscal Year 2021

Rhea-AI Summary

Thryv Holdings, Inc. (NASDAQ:THRY) announced preliminary, unaudited financial results for Q4 and fiscal year 2020, surpassing guidance expectations. Q4 SaaS revenue reached $34.9 million, an 8% year-over-year increase, while total revenue hit $246.9 million. Fiscal year SaaS revenue was $129.8 million, exceeding guidance. Net income for Q4 was $109.8 million, and adjusted EBITDA was $71.6 million. The company anticipates 2021 SaaS revenue between $139-$143 million, indicating solid growth prospects.

Positive

• Q4 SaaS revenue increased 8% YoY to $34.9 million, exceeding guidance.
• Total revenue for Q4 was $246.9 million, outperforming the forecast.
• Fiscal year 2020 net income was $149.2 million.
• SaaS ARPU rose to $293 in Q4, up from $260 in Q3.
• SaaS monthly churn improved to 2.4%, down from 2.7% in the previous quarter.

Negative

• Total SaaS clients were flat at 44.0 thousand, showing no growth from Q3.

Thryv Holdings, Inc. (NASDAQ:THRY), the provider of Thryv^® software, the end-to-end client experience platform for growing small businesses, announced preliminary, unaudited results for the fourth quarter and fiscal year 2020, exceeding previously issued guidance for the same period.

“We are pleased with our performance in what was a challenging year for so many companies. Thryv’s SaaS business is growing, and the numbers reflect that,” said Joe Walsh, CEO of Thryv. “It is energizing to start this new year in a position of strength, and as we move through 2021, we will look to capitalize on the momentum we are seeing. As we look forward to 2021 and future years, we believe we are well positioned as a category leader in SaaS.”

Preliminary Fourth Quarter 2020 Financial Highlights:

• SaaS revenue was $34.9 million, an 8% increase year-over-year. Our guidance was $33 million
• Marketing Services revenue was $212.1 million. Our guidance range was $190-$200 million
• Total revenue was $246.9 million. Our guidance range was $223-$233 million
• Net income was $109.8 million
• Adjusted EBITDA was $71.6 million. Our guidance range was $58-$63 million

Preliminary Fiscal Year 2020 Financial Highlights:

• SaaS revenue was $129.8 million. Our guidance was $128 million
• Marketing Services revenue was $979.6 million. Our guidance range was $955-$965 million
• Total revenue was $1,109.4 million. Our guidance range was $1,083-$1,093 million
• Net income was $149.2 million
• Adjusted EBITDA was $371.8 million. Our guidance range was $358-$363 million

Additional Preliminary Business Highlights:

• SaaS ARPU increased to $293 in the fourth quarter, up from $260 in the third quarter of 2020
• Total SaaS clients ending the fourth quarter of 2020 was 44.0 thousand, flat when compared to the third quarter of 2020
• SaaS monthly churn improved to 2.4% in the fourth quarter, down from 2.7% in the third quarter of 2020
• Leverage Ratio was 1.3x in the fourth quarter, as defined in the Thryv, Inc. credit agreement
• Total Debt repayment was $186.1 million for fiscal year 2020. Term loan and ABL ending balances for the fourth quarter of 2020 were $449.6 million and $79.2 million, respectively

We have provided preliminary unaudited estimated results. These unaudited results reflect management’s estimates based solely upon information available to it as of the date of this release and are not a comprehensive statement of our financial results. As a result, there is a possibility that our final audited results which will be included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2020 (our “Annual Report”) will vary from these preliminary estimates.

Outlook:

Based on information available as of February 22, 2021, Thryv Holdings is issuing guidance for fiscal year 2021 as indicated below.

• SaaS revenue between $139 – $143 million
• Marketing Services revenue between $740 - $760 million

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.

Earnings Conference Call Information

Thryv will announce the date of its fourth quarter and fiscal year 2020 earnings conference call in an upcoming release.

Preliminary Unaudited Results

The following is preliminary unaudited information for the three months and year ended December 31, 2020. Audited information for the three months and year ended December 31, 2019 is included for comparability (in thousands):

	Three Months Ended December 31,								Year Ended December 31,
Unaudited; in thousands	2020				2019				2020				2019
Total Revenue	$	246,928			$	345,130			$	1,109,435			$	1,421,374
SaaS Revenue	34,870				32,407				129,824				128,579
Marketing Services Revenue	212,058				312,723				979,611				1,292,795
Net income (loss)	109,800				(2,053)				149,221				35,504
Adjusted EBITDA (1)	71,631				122,505				371,839				481,633

(1)	Refer to “Non-GAAP Measures” below for the reconciliation to the most comparable GAAP measure

Non-GAAP Measures

Our preliminary results included in this press release include Adjusted EBITDA, which is not presented in accordance with U.S. generally accepted accounting principles (“GAAP”). This non-GAAP measure is presented for supplemental informational purposes only and is 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 table below for a reconciliation of Adjusted EBITDA to net income, the most comparable GAAP financial measure.

We believe that this non-GAAP financial measure provide useful information about our financial performance, enhances the overall understanding of our past performance and future prospects and allows for greater transparency with respect to important metrics used by our management for financial and operational decision-making. We believe that this measure provides an additional tool 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 (in thousands):

	Three Months Ended December 31,								Year Ended December 31,
	2020				2019				2020				2019
Reconciliation of Adjusted EBITDA
Net income (loss)	$	109,800			$	(2,053)			$	149,221			$	35,504
Interest expense	14,988				21,883				68,539				92,951
(Benefit) provision for income taxes (1)	(118,306)				(798)				(107,983)				18,062
Depreciation and amortization expense	35,640				50,985				146,523				206,270
Loss on early extinguishment of debt	—				—				—				6,375

FAQ

What were Thryv Holdings' Q4 2020 results?

Thryv reported Q4 2020 SaaS revenue of $34.9 million and total revenue of $246.9 million, exceeding guidance.

How did Thryv Holdings perform in fiscal year 2020?

In fiscal year 2020, Thryv recorded SaaS revenue of $129.8 million and net income of $149.2 million.

What is the guidance for Thryv Holdings in 2021?

Thryv is guiding for SaaS revenue between $139-$143 million and Marketing Services revenue between $740-$760 million in 2021.

What is the status of Thryv Holdings' debt?

Thryv repaid $186.1 million in debt during fiscal year 2020, with term loan and ABL ending balances at $449.6 million and $79.2 million, respectively.

How did Thryv Holdings' SaaS ARPU change in Q4 2020?

SaaS ARPU increased to $293 in Q4 2020, up from $260 in Q3 2020.