Thryv® Reports Preliminary Fourth Quarter and Fiscal Year 2020 Financial Results, Provides Outlook for Fiscal Year 2021
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 , 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
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 from2.7% 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 |
|
||||
