Thryv Grows SaaS Revenue 25% in Fourth Quarter 2023, Exceeds Full Year SaaS Guidance
Thryv Holdings, Inc. (NASDAQ:THRY) reports strong Q4 results with SaaS revenue growth of 25% year-over-year, exceeding guidance. The company achieved record SaaS revenue growth and Adjusted EBITDA, with plans to accelerate growth in 2024. NDR increased 400 bps to 96%. Thryv generated a strong FY operating cash flow of $148.2 million.
Positive
Thryv exceeded its Q4 SaaS revenue growth and Adjusted EBITDA guidance.
The company plans to accelerate SaaS revenue growth in 2024.
Thryv achieved record SaaS revenue growth of 25% year-over-year in Q4.
NDR increased by 400 bps to 96%.
Thryv generated a strong FY operating cash flow of $148.2 million.
The report by Thryv Holdings, Inc. highlights a significant 25% year-over-year growth in SaaS revenue for Q4 2023, which is a strong indicator of the company's successful pivot towards its software platform. Such growth is particularly noteworthy in the context of a technology sector where investors are keenly observing revenue trends as a proxy for company health and market demand. The exceedance of the Adjusted EBITDA guidance by $2.75 million further reinforces investor confidence in the company's operational efficiency and fiscal management.
However, the consolidated net loss of $257.5 million , including a substantial goodwill impairment charge, raises flags about the company's previous acquisitions and their alignment with current market values. Investors should consider the long-term implications of this non-cash charge, as it could indicate a reevaluation of the company's asset utility and future profitability. The decrease in total Marketing Services revenue by 26% year-over-year suggests a strategic shift away from traditional marketing services towards a more SaaS-centric business model, which could have implications for future revenue streams and business stability.
The 96% Seasoned Net Dollar Retention rate is a positive signal for the company's customer satisfaction and product stickiness. A 400 bps sequential increase is significant, as it suggests that existing customers are not only staying with Thryv but also spending more on their services. This metric is critical for understanding the long-term value of the customer base and the potential for organic growth. The 27% increase in total SaaS clients year-over-year indicates effective market penetration and the successful acquisition of new customers.
On the downside, a decrease in SaaS monthly ARPU to $370 from $387 could indicate pricing pressure or a shift in the customer mix towards smaller accounts. This might affect the average revenue generated per user in the long run and warrants close monitoring to assess whether it's a trend or an anomaly.
The ability of Thryv to pay down $120 million towards its term loan is indicative of strong free cash flow generation and prudent financial management. For debt holders and potential investors, this demonstrates a commitment to reducing leverage and improving the company's credit profile. The operating cash flow of $148.2 million , remaining consistent with the prior year, suggests operational stability and efficiency in cash conversion.
Investors should note, however, that the reported net loss, driven by the goodwill impairment, does not impact cash flow but may affect the company's ability to raise capital or renegotiate debt terms in the future. The company's focus on accelerating profitable growth while maintaining a strong balance sheet is essential for sustaining its financial health and managing debt obligations effectively.
02/22/2024 - 07:30 AM
– Q4 SaaS Adjusted EBITDA exceeds mid-point of guidance by over $2.75 million
– NDR increases 400 bps sequentially to 96%
– Company generates strong FY operating cash flow of $148.2 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 fourth quarter of 2023.
“We are proud to announce robust fourth-quarter and full-year results, marking another successful year for Thryv,” said Joe Walsh, Thryv Chairman, and CEO. “We surpassed guidance on SaaS revenue growth and SaaS Adjusted EBITDA, underscoring our commitment to delivering profitable SaaS growth. Looking ahead to 2024, we plan to accelerate SaaS revenue growth and drive margin expansion by empowering our legacy digital clients to seamlessly transition to the Thryv SaaS platform, enabling them to access an advanced multi-center platform that addresses their everyday needs.”
Also today, Thryv has issued a press release outlining increasing adoption of the SaaS platform by legacy clients.
“For the fourth quarter, Thryv achieved record SaaS revenue growth of 25% year-over-year,” stated Paul Rouse, Chief Financial Officer. “Simultaneously, we delivered record SaaS Adjusted Gross profit margin of 70% and surpassed our SaaS Adjusted EBITDA guidance.” Rouse continued, “We generated strong free cash flow in 2023 which enabled us to pay down $120 million towards our term loan, exceeding expectations and further solidifying our financial position. As we move forward, our primary focus is to accelerate profitable growth in the SaaS business while maintaining a strong and healthy balance sheet.”
Fourth Quarter 2023 Highlights:
Total SaaS1 revenue was $74.0 million , a 25% increase year-over-year
Total Marketing Services2 revenue was $162.2 million , a 26% decrease year-over-year
Consolidated total revenue was $236.2 million , a decrease of 15% year-over-year
Consolidated net loss was $257.5 million , or $(7.39) per diluted share, which includes a non-cash charge of $268.8 million , or $7.71 per diluted share, related to goodwill impairment; compared to net loss of $50.4 million , or $(1.47) per diluted share, for the fourth quarter of 2022
Consolidated Adjusted EBITDA was $52.3 million , representing an Adjusted EBITDA margin of 22%
Total SaaS Adjusted EBITDA was $6.5 million , representing an Adjusted EBITDA margin of 8.8%
Total Marketing Services Adjusted EBITDA was $45.8 million , representing an Adjusted EBITDA margin of 28.2%
Consolidated Gross Profit was $159.7 million
Consolidated Adjusted Gross Profit3 was $165.4 million
SaaS Gross Profit was $50.0 million
SaaS Adjusted Gross Profit was $51.6 million , representing an Adjusted Gross Profit Margin of 70%
Operating cash flow was $44.6 million compared to $44.4 million for the fourth quarter of 2022
Free cash flow was $34.1 million compared to $34.5 million for the fourth quarter of 2022
Full-Year 2023 Financial Highlights:
Total SaaS1 revenue was $263.7 million , a 21.9% increase year-over-year
Total Marketing Services2 revenue was $653.2 million , a 33.8% decrease year-over-year
Consolidated total revenue was $917.0 million , a decrease of 24% year-over-year
Consolidated net loss was $259.3 million , or $(7.47) per diluted share, which includes a non-cash charge of $268.8 million related to goodwill impairment; compared to net income of $54.3 million , or $1.49 per diluted share, for last year
Consolidated Adjusted EBITDA was $187.5 million , representing an Adjusted EBITDA margin of 20.4%
Total SaaS Adjusted EBITDA was $12.0 million , representing an Adjusted EBITDA margin of 4.6%
Total Marketing Services Adjusted EBITDA was $175.5 million , representing an Adjusted EBITDA margin of 26.9%
Consolidated Gross Profit was $578.2 million
Consolidated Adjusted Gross Profit3 was $605.8 million
SaaS Gross Profit was $169.2 million
SaaS Adjusted Gross Profit was $175.6 million , representing an Adjusted Gross Profit Margin of 66.6%
Operating cash flow was $148.2 million compared to $148.6 million for the prior year
Free cash flow was $114.8 million compared to $119.3 million for the prior year
SaaS Metrics
Total SaaS clients increased 27% year-over-year to 66 thousand for the fourth quarter of 2023
Seasoned Net Dollar Retention4 was 96% for the fourth quarter of 2023, an increase of 400 bps sequentially
SaaS monthly active users5 was 40 thousand active users for the fourth quarter of 2023
SaaS monthly Average Revenue per Unit (“ARPU”)6 decreased to $370 for the fourth quarter of 2023, compared to $387 in the fourth quarter of 2022
ThryvPay total payment volume was $60 million , an increase of 54% year-over-year
_____________________
1 Total SaaS revenue in the U.S. and International segments was $70.7 million and $3.3 million for the three months ended December 31, 2023 and $253.6 million and $10.1 million for the year ended December 31, 2023, respectively.
2 Total Marketing Services revenue in the U.S. and International segments was $132.7 million and $29.5 million for the three months ended December 31, 2023 and $510.5 million and $142.7 million for the year ended December 31, 2023, respectively.
3 Defined as Gross profit adjusted to exclude the impact of depreciation and amortization expense and stock-based compensation expense.
4 Seasoned Net Dollar Retention is defined as net dollar retention excluding clients acquired over the previous 12 months.
5 Defined as a client with one or more users who log into our SaaS solutions at least once during the calendar month.
6 Defined 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.
7 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.
Outlook
Based on information available as of February 22, 2024, Thryv is issuing guidance7 for the first quarter of 2024 and full year 2024 as indicated below:
1st Quarter
Full Year
(in millions)
2024
2024
SaaS Revenue
$73 - $74
$325 - $328
SaaS Adjusted EBITDA
$6 - $7
$26 - $29
1st Quarter
2nd Quarter
3rd Quarter
4th Quarter
Full Year
(in millions)
2024
2024
2024
2024
2024
Marketing Services Revenue
$152 - $155
$146 - $149
$99 - $101
$98 - $100
$495 - $505
Marketing Services Adjusted EBITDA
$132 - $135
Earnings Conference Call Information
Thryv will host a conference call on Thursday, February 22, 2024 at 8:30 a.m. (Eastern Time) to discuss the Company's fourth quarter 2023 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 “44819.”
Thryv Holdings, Inc. and Subsidiaries
Consolidated Statements of Operations and Comprehensive (Loss) Income
Three Months Ended
Years Ended
December 31,
December 31,
(in thousands, except share and per share data)
2023
2022
2023
2022
Revenue
$
236,163
$
279,368
$
916,961
$
1,202,388
Cost of services
76,453
100,463
338,714
422,006
Gross profit
159,710
178,905
578,247
780,382
Operating expenses:
Sales and marketing
73,757
86,773
300,538
362,432
General and administrative
59,238
56,892
208,880
216,406
Impairment charges
268,846
102,000
268,846
102,222
Total operating expenses
401,841
245,665
778,264
681,060
Operating (loss) income
(242,131
)
(66,760
)
(200,017
)
99,322
Other income (expense):
Interest expense
(13,817
)
(16,318
)
(61,728
)
(56,902
)
Interest expense, related party
—
—
—
(3,505
)
Other components of net periodic pension benefit
6,607
39,317
2,719
44,612
Other (expense) income
(276
)
(119
)
(1,518
)
15,448
(Loss) income before income tax (expense) benefit
(249,617
)
(43,880
)
(260,544
)
98,975
Income tax (expense) benefit
(7,924
)
(6,565
)
1,249
(44,627
)
Net (loss) income
$
(257,541
)
$
(50,445
)
$
(259,295
)
$
54,348
Other comprehensive income (loss):
Foreign currency translation adjustment, net of tax
5,402
4,397
1,070
(8,214
)
Comprehensive (loss) income
$
(252,139
)
$
(46,048
)
$
(258,225
)
$
46,134
Net (loss) income per common share:
Basic
$
(7.39
)
$
(1.47
)
$
(7.47
)
$
1.58
Diluted
$
(7.39
)
$
(1.47
)
$
(7.47
)
$
1.49
Weighted-average shares used in computing basic and diluted net (loss) income per common share:
Basic
34,858,157
34,270,520
34,723,491
34,336,493
Diluted
34,858,157
34,270,520
34,723,491
36,506,095
Thryv Holdings, Inc. and Subsidiaries
Consolidated Balance Sheets
(in thousands, except share data)
December 31, 2023
December 31, 2022
Assets
Current assets
Cash and cash equivalents
$
18,216
$
16,031
Accounts receivable, net of allowance of $14,926 in 2023 and $14,766 in 2022
205,503
284,698
Contract assets, net of allowance of $35 in 2023 and $33 in 2022
2,909
2,583
Taxes receivable
3,085
11,553
Prepaid expenses
17,771
25,092
Indemnification asset
—
26,495
Deferred costs
16,722
9,544
Other current assets
2,662
2,320
Total current assets
266,868
378,316
Fixed assets and capitalized software, net
38,599
42,334
Goodwill
302,400
566,004
Intangible assets, net
18,788
34,715
Deferred tax assets
128,051
113,859
Other assets
28,464
42,649
Total assets
$
783,170
$
1,177,877
Liabilities and Stockholders' Equity
Current liabilities
Accounts payable
$
10,348
$
18,972
Accrued liabilities
105,903
126,810
Current portion of unrecognized tax benefits
23,979
31,919
Contract liabilities
44,558
41,854
Current portion of long-term debt
70,000
70,000
Other current liabilities
8,402
10,937
Total current liabilities
263,190
300,492
Term Loan, net
230,052
345,256
ABL Facility
48,845
54,554
Pension obligations, net
69,388
72,590
Other liabilities
18,995
22,718
Total long-term liabilities
367,280
495,118
Commitments and contingencies
Stockholders' equity
Common stock - $0.01 par value, 250,000,000 shares authorized; 62,660,783 shares issued and 35,302,746 shares outstanding at December 31, 2023; and 61,279,379 shares issued and 34,593,837 shares outstanding at December 31, 2022
627
613
Additional paid-in capital
1,151,259
1,105,701
Treasury stock - 27,358,037 shares at December 31, 2023 and 26,685,542 shares at December 31, 2022
(485,793
)
(468,879
)
Accumulated other comprehensive loss
(15,191
)
(16,261
)
Accumulated deficit
(498,202
)
(238,907
)
Total stockholders' equity
152,700
382,267
Total liabilities and stockholders' equity
$
783,170
$
1,177,877
Thryv Holdings, Inc. and Subsidiaries
Consolidated Statements of Cash Flows
Years Ended December 31,
(in thousands)
2023
2022
Cash Flows from Operating Activities
Net (loss) income
$
(259,295
)
$
54,348
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Depreciation and amortization
63,251
88,392
Amortization of deferred commissions
14,954
12,110
Amortization of debt issuance costs
5,422
5,749
Deferred income taxes
(12,904
)
(15,119
)
Provision for credit losses and service credits
24,516
25,971
Stock-based compensation expense
22,201
14,628
Other components of net periodic pension (benefit)
(2,719
)
(44,612
)
Impairment charges
268,846
102,222
Non-cash loss (gain) from the remeasurement of the indemnification asset
10,734
(2,148
)
Bargain purchase gain
—
(10,883
)
Other
603
(2,309
)
Changes in working capital items, excluding acquisitions:
Accounts receivable
54,325
(5,242
)
Contract assets
(326
)
2,764
Prepaid expenses and other assets
7,117
(9,592
)
Accounts payable and accrued liabilities
(37,749
)
(41,105
)
Other liabilities
(10,750
)
(26,601
)
Net cash provided by operating activities
148,226
148,573
Cash Flows from Investing Activities
Additions to fixed assets and capitalized software
(33,394
)
(29,233
)
Acquisition of a business, net of cash acquired
(8,897
)
(22,793
)
Other
(225
)
—
Net cash used in investing activities
(42,516
)
(52,026
)
Cash Flows from Financing Activities
Payments of Term Loan
(120,000
)
(104,165
)
Payments of Term Loan, related party
—
(8,347
)
Proceeds from ABL Facility
919,975
976,296
Payments of ABL Facility
(925,684
)
(961,670
)
Proceeds from exercises of stock warrants
15,898
64
Other
6,318
6,725
Net cash used in financing activities
(103,493
)
(91,097
)
Effect of exchange rate changes on cash, cash equivalents and restricted cash
133
(827
)
Increase in cash, cash equivalents and restricted cash
2,350
4,623
Cash, cash equivalents and restricted cash, beginning of period
18,180
13,557
Cash, cash equivalents and restricted cash, end of period
$
20,530
$
18,180
Supplemental Information
Cash paid for interest
$
57,027
$
57,084
Cash paid for income taxes, net
$
9,313
$
58,259
Non-cash investing and financing activities
Repurchase of Treasury stock as a result of the settlement of the indemnification asset
$
15,760
$
—
The following tables summarize the operating results of the Company's reportable segments:
Three Months Ended December 31,
Change
(in thousands)
2023
2022
Amount
%
Revenue
Thryv U.S.
Marketing Services
$
132,665
$
187,755
$
(55,090
)
(29.3
)%
SaaS
70,652
57,938
12,714
21.9
%
Thryv International
Marketing Services
29,528
32,295
(2,767
)
(8.6
)%
SaaS
3,318
1,380
1,938
140.4
%
Consolidated Revenue
$
236,163
$
279,368
$
(43,205
)
(15.5
)%
Segment Gross Profit
Thryv U.S.
Marketing Services
$
88,520
$
124,413
$
(35,893
)
(28.8
)%
SaaS
47,183
34,944
12,239
35.0
%
Thryv International
Marketing Services
21,232
18,802
2,430
12.9
%
SaaS
2,775
746
2,029
NM
Consolidated Segment Gross Profit
$
159,710
$
178,905
$
(19,195
)
(10.7
)%
Segment EBITDA
Thryv U.S.
Marketing Services
$
38,383
$
59,758
$
(21,375
)
(35.8
)%
SaaS
8,345
83
8,262
NM
Thryv International
Marketing Services
7,390
10,657
(3,267
)
(30.7
)%
SaaS
(1,842
)
(2,305
)
463
20.1
%
Consolidated Adjusted EBITDA
$
52,276
$
68,193
$
(15,917
)
(23.3
)%
Years Ended December 31,
Change
(in thousands)
2023 (1
)
2022 (2
)
Amount
%
Revenue
Thryv U.S.
Marketing Services
$
510,533
$
820,032
$
(309,499
)
(37.7
)%
SaaS
253,579
211,801
41,778
19.7
%
Thryv International
Marketing Services
142,711
166,010
(23,299
)
(14.0
)%
SaaS
10,138
4,545
5,593
123.1
%
Consolidated Revenue
$
916,961
$
1,202,388
$
(285,427
)
(23.7
)%
Segment Gross Profit
Thryv U.S.
Marketing Services
$
320,327
$
539,543
$
(219,216
)
(40.6
)%
SaaS
161,663
130,272
31,391
24.1
%
Thryv International
Marketing Services
88,730
108,496
(19,766
)
(18.2
)%
SaaS
7,527
2,071
5,456
NM
Consolidated Segment Gross Profit
$
578,247
$
780,382
$
(202,135
)
(25.9
)%
Segment EBITDA
Thryv U.S.
Marketing Services
$
123,249
$
271,629
$
(148,380
)
(54.6
)%
SaaS
18,576
(3,686
)
22,262
NM
Thryv International
Marketing Services
52,241
75,106
(22,865
)
(30.4
)%
SaaS
(6,551
)
(9,707
)
3,156
32.5
%
Consolidated Adjusted EBITDA
$
187,515
$
333,342
$
(145,827
)
(43.7
)%
(1)
Thryv International includes Yellow's results of operations subsequent to the Yellow acquisition.
(2)
Thryv U.S. includes Vivial's results of operations subsequent to the Vivial acquisition.
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 (loss) income and Adjusted Gross Profit to Gross profit. Both Net (loss) 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 (loss) income:
Three Months Ended December 31,
Years Ended December 31,
(in thousands)
2023
2022
2023
2022
Reconciliation of Adjusted EBITDA
Net (loss) income
$
(257,541
)
$
(50,445
)
$
(259,295
)
$
54,348
Impairment charges
268,846
102,000
268,846
102,222
Depreciation and amortization expense
16,311
22,438
63,251
88,392
Interest expense
13,817
16,318
61,728
60,407
Stock-based compensation expense (1)
5,548
4,488
22,201
14,628
Restructuring and integration expenses (2)
1,767
3,365
14,612
17,804
Non-cash (gain) loss from remeasurement of indemnification asset (3)
—
(676
)
10,734
(2,148
)
Transaction costs (4)
—
1,322
373
6,119
Income tax expense (benefit)
7,924
6,565
(1,249
)
44,627
Other components of net periodic pension benefit (5)
(6,607
)
(39,317
)
(2,719
)
(44,612
)
Other (6)
2,211
2,135
9,033
(8,445
)
Adjusted EBITDA
$
52,276
$
68,193
$
187,515
$
333,342
(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 years ended December 31, 2023 and 2022, 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)
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.
(4)
Expenses related to the Yellow acquisition, Vivial acquisition and other transaction costs.
(5)
Other components of net periodic pension benefit 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 relates to periodic mark-to-market pension remeasurement.
(6)
During the year ended December 31, 2023, Other includes expenses related to the valuation of certain assets as a result of the acquisition of Thryv Australia and foreign exchange-related expense. During the year ended December 31, 2022, Other primarily represents the bargain purchase gain as a result of the Vivial acquisition, partially offset by foreign exchange-related expense.
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 December 31, 2023
Thryv U.S.
Thryv International
(in thousands)
Marketing Services
SaaS
Marketing Services
SaaS
Total
Reconciliation of Adjusted Gross Profit
Gross profit
$
88,520
$
47,183
$
21,232
$
2,775
$
159,710
Plus:
Depreciation and amortization expense
2,665
1,425
1,356
150
5,596
Stock-based compensation expense
74
43
—
—
117
Adjusted Gross Profit
$
91,259
$
48,651
$
22,588
$
2,925
$
165,423
Gross Margin
66.7
%
66.8
%
71.9
%
83.6
%
67.6
%
Adjusted Gross Margin
68.8
%
68.9
%
76.5
%
88.2
%
70.0
%
Three Months Ended December 31, 2022
Thryv U.S.
Thryv International
(in thousands)
Marketing Services
SaaS
Marketing Services
SaaS
Total
Reconciliation of Adjusted Gross Profit
Gross profit
$
124,413
$
34,944
$
18,802
$
746
$
178,905
Plus:
Depreciation and amortization expense
4,419
1,379
3,614
168
9,580
Stock-based compensation expense
81
26
—
—
107
Adjusted Gross Profit
$
128,913
$
36,349
$
22,416
$
914
$
188,592
Gross Margin
66.3
%
60.3
%
58.2
%
54.1
%
64.0
%
Adjusted Gross Margin
68.7
%
62.7
%
69.4
%
66.2
%
67.5
%
Year Ended December 31, 2023
Thryv U.S.
Thryv International
(in thousands)
Marketing Services
SaaS
Marketing Services
SaaS
Total
Reconciliation of Adjusted Gross Profit
Gross profit
$
320,327
$
161,663
$
88,730
$
7,527
$
578,247
Plus:
Depreciation and amortization expense
10,766
5,429
10,045
749
26,989
Stock-based compensation expense
399
214
—
—
613
Adjusted Gross Profit
$
331,492
$
167,306
$
98,775
$
8,276
$
605,849
Gross Margin
62.7
%
63.8
%
62.2
%
74.2
%
63.1
%
Adjusted Gross Margin
64.9
%
66.0
%
69.2
%
81.6
%
66.1
%
Year Ended December 31, 2022
Thryv U.S.
Thryv International
(in thousands)
Marketing Services
SaaS
Marketing Services
SaaS
Total
Reconciliation of Adjusted Gross Profit
Gross profit
$
539,543
$
130,272
$
108,496
$
2,071
$
780,382
Plus:
Depreciation and amortization expense
17,800
4,657
15,385
505
38,347
Stock-based compensation expense
332
89
—
—
421
Adjusted Gross Profit
$
557,675
$
135,018
$
123,881
$
2,576
$
819,150
Gross Margin
65.8
%
61.5
%
65.4
%
45.6
%
64.9
%
Adjusted Gross Margin
68.0
%
63.7
%
74.6
%
56.7
%
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 December 31, 2023
(in thousands)
Marketing Services
SaaS
U.S.
International
Total
U.S.
International
Total
Revenue
$
132,665
$
29,528
$
162,193
$
70,652
$
3,318
$
73,970
Adjusted EBITDA
38,383
7,390
45,773
8,345
(1,842
)
6,503
Adjusted EBITDA Margin
28.9
%
25.0
%
28.2
%
11.8
%
(55.5
)%
8.8
%
Three Months Ended December 31, 2022
(in thousands)
Marketing Services
SaaS
U.S.
International
Total
U.S.
International
Total
Revenue
$
187,755
$
32,295
$
220,050
$
57,938
$
1,380
$
59,318
Adjusted EBITDA
59,758
10,657
70,415
83
(2,305
)
(2,222
)
Adjusted EBITDA Margin
31.8
%
33.0
%
32.0
%
0.1
%
(167.0
)%
(3.7
)%
Year Ended December 31, 2023
(in thousands)
Marketing Services
SaaS
U.S.
International
Total
U.S.
International
Total
Revenue
$
510,533
$
142,711
$
653,244
$
253,579
$
10,138
$
263,717
Adjusted EBITDA
123,249
52,241
175,490
18,576
(6,551
)
12,025
Adjusted EBITDA Margin
24.1
%
36.6
%
26.9
%
7.3
%
(64.6
)%
4.6
%
Year Ended December 31, 2022
(in thousands)
Marketing Services
SaaS
U.S.
International
Total
U.S.
International
Total
Revenue
$
820,032
$
166,010
$
986,042
$
211,801
$
4,545
$
216,346
Adjusted EBITDA
271,629
75,106
346,735
(3,686
)
(9,707
)
(13,393
)
Adjusted EBITDA Margin
33.1
%
45.2
%
35.2
%
(1.7
)%
(213.6
)%
(6.2
)%
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 and subsequent Quarterly Reports on Form 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) to grow and modernize their operations so they can compete and win in today’s economy. Over 65,000 businesses use our award-winning SaaS platform, Thryv®, to manage their end-to-end operations, which has helped these organizations across the U.S. and overseas grow their bottom line. Of Thryv’s approximately 350,000 business customers, most also use its digital and print presence products, connecting these SMBs to local consumers via proprietary local search portals and local directories. For more information about Thryv Holdings, Inc., visit thryv.com .
View source version on businesswire.com: https://www.businesswire.com/news/home/20240222288650/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
What was Thryv's SaaS revenue growth in Q4?
Thryv reported a 25% year-over-year SaaS revenue growth in the fourth quarter.
What is the NDR for Thryv in Q4?
Thryv's NDR increased by 400 bps sequentially to 96% in the fourth quarter.
What was Thryv's FY operating cash flow?
Thryv generated a strong FY operating cash flow of $148.2 million.
What are Thryv's plans for 2024?
Thryv plans to accelerate SaaS revenue growth and drive margin expansion in 2024.
What were Thryv's Total SaaS clients in Q4 2023?
Total SaaS clients for Thryv increased by 27% year-over-year to 66 thousand in the fourth quarter of 2023.