Thryv Raises SaaS Revenue Guidance for 2021 and Reports Fourth Quarter and Fiscal Year 2020 Audited Financial Results
Thryv Holdings, Inc. (NASDAQ:THRY) reported strong fourth quarter and fiscal year 2020 results, confirming 2020 growth and profitability. SaaS revenue reached $34.9 million, up 8% year-over-year, while Marketing Services revenue was $212.1 million. Total revenue amounted to $246.9 million, exceeding guidance. Net income stood at $109.8 million with an adjusted EBITDA of $71.6 million. For 2021, guidance for SaaS revenue was raised to $140 - $145 million, reflecting positive growth outlook. The acquisition of Sensis is a milestone for global expansion.
- SaaS revenue increased to $34.9 million, exceeding guidance by $1.9 million.
- Total revenue was $246.9 million, surpassing guidance by $13.9 million.
- Net income rose to $109.8 million, demonstrating profitability.
- SaaS revenue guidance for 2021 raised to $140 - $145 million, showing strong growth potential.
- SaaS ARPU increased to $293 from $260 in Q3 2020.
- Total SaaS clients remained flat at 44,000 compared to the previous quarter.
- SaaS monthly churn rate decreased to 2.4%, but still reflects some customer retention challenges.
Thryv Holdings, Inc. (NASDAQ:THRY) (“Thryv” or the “Company”), the provider of Thryv® software, the end-to-end client experience platform for growing small businesses, announced audited financial results for the fourth quarter and fiscal year 2020 consistent with the previously released preliminary and unaudited results. The Company has also raised its 2021 outlook for its SaaS segment.
“We’re pleased with our performance in 2020 as it confirms healthy growth and profitability, and strongly positions Thryv as a SaaS category leader,” said Joe Walsh, CEO of Thryv. “As a result, we are raising our guidance for 2021.”
“In addition, our recent acquisition of Sensis in Australia is a notable milestone in our journey to help small businesses globally to better manage and modernize their operations.”
Fourth Quarter 2020 Financial Highlights:
-
SaaS revenue was
$34.9 million , an8% 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
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 Business Highlights:
-
SaaS ARPU increased to
$293 in the fourth quarter of 2020, 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 of 2020, down from2.7% in the third quarter of 2020. - Leverage Ratio (as defined in the Company’s credit agreement) was 1.3x in the fourth quarter of 2020
-
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.
Outlook:
The Company is updating guidance for fiscal year 2021 as indicated below.
-
SaaS revenue guidance range raised to
$140 –$145 million , up from the previously announced$139 -$143 million -
Marketing Services revenue range maintained at
$740 –$760 million
The above guidance excludes the impact of the Sensis acquisition.
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 host a conference call on Thursday, March 25, 2021 at 8:30 a.m. (Eastern Time) to discuss the Company's fourth quarter and annual 2020 results. The conference call will be available via the Internet at www.thryv.com. There will be several slides accompanying the webcast. Please go to the website at least 15 minutes prior to the call to register, download and install any necessary software. The recorded webcast will also be available on the Company's website.
If you are unable to participate in the conference call, a replay will be available. To access the replay, please dial (800) 585-8367 or (416) 621-4642 and enter "6411279."
Final Audited Results
Thryv Holdings, Inc. and Subsidiaries |
|||||||||||||||
Condensed Consolidated Statements of Operations |
|||||||||||||||
(in thousands, except share and per share data) |
|||||||||||||||
|
Three Months Ended
|
|
|
Years Ended
|
|||||||||||
|
2020 |
|
2019 |
|
|
2020 |
|
2019 |
|||||||
Revenue |
$ |
246,928 |
|
|
$ |
345,130 |
|
|
$ |
1,109,435 |
|
|
$ |
1,421,374 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Cost of services (exclusive of depreciation and amortization) |
87,755 |
|
|
111,482 |
|
|
366,696 |
|
|
476,355 |
|
||||
Sales and marketing |
61,067 |
|
|
86,097 |
|
|
263,006 |
|
|
352,740 |
|
||||
General and administrative |
39,563 |
|
|
43,559 |
|
|
156,286 |
|
|
174,286 |
|
||||
Depreciation and amortization |
35,640 |
|
|
50,985 |
|
|
146,523 |
|
|
206,270 |
|
||||
Impairment charges |
5,497 |
|
|
611 |
|
|
24,911 |
|
|
5,670 |
|
||||
Total operating expenses |
229,522 |
|
|
292,734 |
|
|
957,422 |
|
|
1,215,321 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Operating income |
17,406 |
|
|
52,396 |
|
|
152,013 |
|
|
206,053 |
|
||||
Other income (expense): |
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Interest expense |
(11,889 |
) |
|
(16,183 |
) |
|
(51,537 |
) |
|
(68,181 |
) |
||||
Interest expense, related party |
(3,099 |
) |
|
(5,700 |
) |
|
(17,002 |
) |
|
(24,770 |
) |
||||
Other components of net periodic pension cost |
(10,924 |
) |
|
(33,364 |
) |
|
(42,236 |
) |
|
(53,161 |
) |
||||
Loss on early extinguishment of debt |
— |
|
|
— |
|
|
— |
|
|
(6,375 |
) |
||||
(Loss) income before benefit (provision) for income taxes |
(8,506 |
) |
|
(2,851 |
) |
|
41,238 |
|
|
53,566 |
|
||||
Benefit (provision) for income taxes |
118,306 |
|
|
798 |
|
|
107,983 |
|
|
(18,062 |
) |
||||
Net income (loss) |
$ |
109,800 |
|
|
$ |
(2,053 |
) |
|
$ |
149,221 |
|
|
$ |
35,504 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Net income (loss) per common share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Basic |
$ |
3.52 |
|
|
$ |
(0.06 |
) |
|
$ |
4.73 |
|
|
$ |
0.87 |
|
Diluted |
$ |
3.31 |
|
|
$ |
(0.06 |
) |
|
$ |
4.42 |
|
|
$ |
0.82 |
|
Weighted-average shares used in computing basic and diluted net income (loss) per common share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Basic |
31,230,392 |
|
|
32,185,535 |
|
|
31,522,845 |
|
|
40,845,128 |
|
||||
Diluted |
33,212,192 |
|
|
32,185,535 |
|
|
33,795,594 |
|
|
43,465,998 |
|
||||
Thryv Holdings, Inc. and Subsidiaries |
|||||||
Consolidated Balance Sheets |
|||||||
(in thousands, except share data) |
|||||||
|
December
|
|
December
|
||||
Assets |
|
|
|
||||
Current assets |
|
|
|
||||
Cash and cash equivalents |
$ |
2,406 |
|
|
$ |
1,912 |
|
Accounts receivable, net of allowance of |
296,570 |
|
|
369,690 |
|
||
Contract assets, net of allowance of |
10,975 |
|
|
11,682 |
|
||
Taxes receivable |
9,229 |
|
|
37,460 |
|
||
Prepaid expenses and other current assets |
26,172 |
|
|
28,036 |
|
||
Indemnification asset |
24,346 |
|
|
29,789 |
|
||
Total current assets |
369,698 |
|
|
478,569 |
|
||
Fixed assets and capitalized software, net |
89,044 |
|
|
101,512 |
|
||
Goodwill |
609,457 |
|
|
609,457 |
|
||
Intangible assets, net |
31,777 |
|
|
147,480 |
|
||
Deferred tax assets |
93,099 |
|
|
— |
|
||
Other assets |
21,902 |
|
|
51,274 |
|
||
Total assets |
$ |
1,214,977 |
|
|
$ |
1,388,292 |
|
|
|
|
|
||||
Liabilities and Stockholders' Equity |
|
|
|
||||
Current liabilities |
|
|
|
||||
Accounts payable |
$ |
8,927 |
|
|
$ |
16,067 |
|
Accrued liabilities |
139,613 |
|
|
140,261 |
|
||
Current portion of unrecognized tax benefits |
30,022 |
|
|
53,111 |
|
||
Contract liabilities |
18,942 |
|
|
24,679 |
|
||
Other current liabilities |
9,896 |
|
|
23,323 |
|
||
Total current liabilities |
207,400 |
|
|
257,441 |
|
||
Senior Term Loan, net of debt issuance costs of |
335,683 |
|
|
420,036 |
|
||
Senior Term Loan, related party |
113,482 |
|
|
189,371 |
|
||
ABL Facility |
79,238 |
|
|
104,985 |
|
||
Leaseback obligations |
54,798 |
|
|
55,537 |
|
||
Pension obligations, net |
190,827 |
|
|
193,533 |
|
||
Deferred tax liabilities |
508 |
|
|
54,738 |
|
||
Other liabilities |
36,266 |
|
|
85,391 |
|
||
Total long-term liabilities |
810,802 |
|
|
1,103,591 |
|
||
Commitments and contingencies |
|
|
|
||||
Stockholders' equity |
|
|
|
||||
Common stock - |
596 |
|
|
574 |
|
||
Additional paid-in capital |
1,059,624 |
|
|
1,008,701 |
|
||
Treasury stock - 26,678,410 shares as of December 31, 2020 and 23,952,756 shares as of December 31, 2019 |
(468,613 |
) |
|
(437,962 |
) |
||
Accumulated deficit |
(394,832 |
) |
|
(544,053 |
) |
||
Total stockholders' equity |
196,775 |
|
|
27,260 |
|
||
Total liabilities and stockholders' equity |
$ |
1,214,977 |
|
|
$ |
1,388,292 |
|
Thryv Holdings, Inc. and Subsidiaries |
||||||||
Consolidated Statements of Cash Flows |
||||||||
(in thousands) |
||||||||
Years Ended December 31, |
||||||||
|
2020 |
|
2019 |
|||||
Cash Flows from Operating Activities |
|
|
|
|
|
|||
Net income |
$ |
149,221 |
|
|
$ |
35,504 |
|
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
|
|||
Depreciation and amortization |
146,523 |
|
|
206,270 |
|
|||
Amortization of debt issuance costs |
1,068 |
|
|
1,123 |
|
|||
Deferred income taxes |
(147,329 |
|
|
(25,118 |
) |
|||
Provision for credit losses |
32,077 |
|
|
30,092 |
|
|||
Provision for service credits |
32,550 |
|
|
25,467 |
|
|||
Stock-based compensation (benefit) expense |
(2,895 |
) |
|
14,119 |
|
|||
Other components of net periodic pension cost |
42,236 |
|
|
53,161 |
|
|||
Loss on early extinguishment of debt |
— |
|
|
6,375 |
|
|||
Loss on disposal/write-off of fixed assets and capitalized software |
3,544 |
|
|
5,942 |
|
|||
Impairment charges |
24,911 |
|
|
5,670 |
|
|||
Non-cash loss (gain) from remeasurement of indemnification asset |
5,443 |
|
|
4,093 |
|
|||
Changes in working capital items, excluding acquisitions: |
|
|
|
|
|
|||
Accounts receivable |
41,382 |
|
|
16,457 |
|
|||
Contract assets |
369 |
|
|
1,515 |
|
|||
Prepaid and other assets |
472 |
|
|
5,676 |
|
|||
Accounts payable and accrued liabilities |
(100,708 |
) |
|
(69,244 |
) |
|||
Accrued income taxes, net |
14,547 |
|
|
4,376 |
|
|||
Operating lease liability |
(4,006 |
) |
|
(10,587 |
) |
|||
Contract liabilities |
(5,737 |
) |
|
(6,391 |
) |
|||
Settlement of stock option liability |
(896 |
) |
|
(33,901 |
) |
|||
Net cash provided by operating activities |
232,772 |
|
|
270,599 |
|
|||
|
|
|
|
|
|
|||
Cash Flows from Investing Activities |
|
|
|
|
|
|||
Additions to fixed assets and capitalized software |
(27,757 |
) |
|
(26,065 |
) |
|||
Proceeds from the sale of building and fixed assets |
1,546 |
|
|
847 |
|
|||
Acquisition of a business, net of cash acquired |
— |
|
|
(147 |
) |
|||
Net cash (used in) investing activities |
(26,211 |
) |
|
(25,365 |
) |
|||
|
|
|
|
|
|
|||
Cash Flows from Financing Activities |
|
|
|
|
|
|||
Payments of Senior Term Loan |
(113,747 |
) |
|
(148,256 |
) |
|||
Payments of Senior Term Loan, related party |
(46,643 |
) |
|
(66,744 |
) |
|||
Proceeds from Senior Term Loan, net |
— |
|
|
193,625 |
|
|||
Proceeds from Senior Term Loan, related party |
— |
|
|
225,000 |
|
|||
Payments of Original Term Facility, upon extinguishment |
— |
|
|
— |
|
|||
Payments of Original Term Facility, upon extinguishment, related party |
— |
|
|
— |
|
|||
Payments of Original Term Facility, prior to extinguishment |
— |
|
|
— |
|
|||
Payments of Original Term Facility, prior to extinguishment, related party |
— |
|
|
— |
|
|||
Proceeds from ABL Facility |
1,143,700 |
|
|
1,142,717 |
|
|||
Payments of ABL Facility |
(1,169,446 |
) |
|
(1,184,310 |
) |
|||
Purchase of treasury stock |
(30,626 |
) |
|
(437,962 |
) |
|||
Other |
10,695 |
|
|
(1,561 |
) |
|||
Net cash (used in) financing activities |
(206,067 |
) |
|
(277,491 |
) |
|||
|
|
|
|
|
|
|||
Increase (decrease) in cash and cash equivalents |
494 |
|
|
(32,257 |
) |
|||
Cash and cash equivalents, beginning of period |
1,912 |
|
|
34,169 |
|
|||
Cash and cash equivalents, end of period |
$ |
2,406 |
|
|
$ |
1,912 |
|
|
|
|
|
|
|
|
|||
Supplemental Information |
|
|
|
|
|
|||
Cash paid for interest |
$ |
72,931 |
|
|
$ |
81,543 |
|
|
Cash paid for income taxes, net |
$ |
24,799 |
|
|
$ |
38,091 |
|
|
Non-GAAP Measures
Our audited 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
|
|
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 |
|
||||
Restructuring and integration expenses (2) |
4,557 |
|
|
9,098 |
|
|
28,459 |
|
|
40,290 |
|
||||
Transaction costs (3) |
6,320 |
|
|
5,938 |
|
|
20,999 |
|
|
6,081 |
|
||||
Stock-based compensation expense (benefit) (4) |
1,300 |
|
|
4,583 |
|
|
(2,895 |
) |
|
14,119 |
|
||||
Other components of net periodic pension cost (5) |
10,924 |
|
|
33,364 |
|
|
42,236 |
|
|
53,161 |
|
||||
Non-cash loss (gain) from remeasurement of indemnification asset (6) |
1,565 |
|
|
(553 |
) |
|
5,443 |
|
|
4,093 |
|
||||
Impairment charges (7) |
5,497 |
|
|
611 |
|
|
24,911 |
|
|
5,670 |
|
||||
Other (8) |
(654 |
) |
|
(553 |
) |
|
(3,614 |
) |
|
(943 |
) |
||||
Adjusted EBITDA |
$ |
71,631 |
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FAQ
What were Thryv's financial results for Q4 2020?
Thryv reported Q4 2020 SaaS revenue of $34.9 million, Marketing Services revenue of $212.1 million, and total revenue of $246.9 million.
What is Thryv's net income for fiscal year 2020?
Thryv's net income for fiscal year 2020 was $149.2 million.
How much did Thryv raise its 2021 SaaS revenue guidance?
Thryv raised its 2021 SaaS revenue guidance to $140 - $145 million.
What impact did the acquisition of Sensis have on Thryv?
The acquisition of Sensis is seen as a significant step in Thryv's strategy to assist small businesses on a global scale.
What were the adjusted EBITDA figures for Thryv in 2020?
Thryv's adjusted EBITDA for 2020 was $371.8 million.
Thryv Holdings, Inc.
NASDAQ:THRYTHRY RankingsTHRY Latest NewsTHRY Stock Data
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