Skip to main content

Thryv Grows SaaS Revenue 25% Year-Over-Year in Fourth Quarter 2022

Company exceeds all guidance metrics

Fourth quarter total SaaS clients increased 13% and SaaS monthly active users increased 37% year-over-year

Thryv Holdings, Inc. (NASDAQ:THRY) (“Thryv” or the “Company”), the provider of the leading small business software platform, Thryv®, announced that it grew its SaaS revenue 25% year-over-year in the fourth quarter of 2022.

“We delivered strong fourth quarter results, closing out a record year at Thryv,” said Joe Walsh, Thryv Chairman and CEO. “We exceeded all of our guidance metrics – reporting strong SaaS revenue growth, improving SaaS Adjusted EBITDA and increasing marketing services revenue. Our key SaaS metrics, subscribers and ARPU, grew double digits year-over-year as a result of our focus on innovation and execution. Our software platform is driving time to first value for clients. We hear from clients they want to reduce friction by consolidating their multiple point solutions and logins. With our all-in-one cloud based platform, SMBs have one login and one dashboard to gain greater business efficiency.”

“As we begin 2023, we are focused on our strategic initiatives - increasing engagement and usage - because these lead to increased renewal and spend," Walsh continued. "In support of our goal of driving engagement, we recently announced the move to a multiple-center platform. By offering multiple centers, we can solve additional problems small to medium businesses (SMBs) face.”

Marketing Center, Thryv's newest center, delivers the tools an SMB needs to market and grow their business. The solution offers improved online presence, a suite of marketing tools, search, social, display and connected TV advertising. In the future, additional centers will be launching enabling SMBs to address additional problems.

“I am confident that in 2023, we will sustain durable SaaS revenue growth and will continue to generate strong EBITDA margins from a consolidated standpoint,” said Paul Rouse, Chief Financial Officer. “Given the strength of our product offering, size of our customer base and revenue diversification, market demand has remained strong.”

Fourth Quarter 2022 Financial Highlights:

Revenue

  • Total SaaS1 revenue was $59.3 million, a 24.9% increase year-over-year
  • Total Marketing Services2 revenue was $220.1 million, an 11.7% increase year-over-year
  • Consolidated total revenue was $279.4 million, an increase of 14.3% year-over-year
  • Consolidated net loss was $50.4 million, or $(1.47) per diluted share, which includes a non-cash charge of $102.0 million, or $2.98 per diluted share, related to goodwill impairment; compared to net income of $5.1 million, or $0.13 per diluted share, for the fourth quarter of 2021
  • Consolidated Adjusted EBITDA was $68.2 million, representing an Adjusted EBITDA margin of 24.4%
  • Total SaaS Adjusted EBITDA loss was $2.2 million
  • Total Marketing Services Adjusted EBITDA was $70.4 million, representing an Adjusted EBITDA margin of 32.0%
  • Consolidated Gross Profit was $178.9 million, an increase of 18.2% year-over-year
  • Consolidated Adjusted Gross Profit was $188.6 million
  • SaaS Gross Profit was $35.7 million, representing a Gross Profit Margin of 60.2%
  • SaaS Adjusted Gross Profit was $37.3 million, representing an Adjusted Gross Profit Margin of 62.8%

Full-Year 2022 Financial Highlights

  • Total SaaS revenue was $216.3 million, a 26.5% increase year-over-year
  • Total Marketing Services revenue was $986.0 million, an 4.6% increase year-over-year
  • Consolidated total revenue was $1,202.4 million, an increase of 8.0% year-over-year
  • Consolidated net income was $54.3 million, or $1.49 per diluted share, which includes a non-cash charge of $102.0 million related to goodwill impairment; compared to net income of $101.6 million, or $2.78 per diluted share, for the same period last year
  • Consolidated Adjusted EBITDA was $333.3 million, representing an Adjusted EBITDA margin of 27.7%
  • Total SaaS Adjusted EBITDA loss was $13.4 million
  • Total Marketing Services Adjusted EBITDA was $346.7 million, representing an Adjusted EBITDA margin of 35.2%
  • Consolidated Gross Profit was $780.4 million, an increase of 11% year-over-year
  • Consolidated Adjusted Gross Profit was $819.2 million
  • SaaS Gross Profit was $132.3 million, representing a Gross Profit Margin of 61.2%
  • SaaS Adjusted Gross Profit was $137.6 million, representing an Adjusted Gross Profit Margin of 63.6%

SaaS Metrics

  • SaaS monthly Average Revenue per Unit (“ARPU”)3 increased to $387 for the fourth quarter of 2022, compared to $351 in the fourth quarter of 2021
  • Total SaaS clients increased 13% year-over-year to 52 thousand for the fourth quarter of 2022
  • Seasoned Net Dollar Retention4 was 91% at the end of the fourth quarter of 2022
  • SaaS monthly active users5 increased 37% year-over-year to 41 thousand active users for the fourth quarter of 2022
  • ThryvPay total payment volume increased 114% year-over-year

Outlook

Based on information available as of February 23, 2023, Thryv is issuing guidance6 for the full year 2023 as indicated below:

 

 

 

1st Quarter

 

Full Year

(in millions)

 

 

2023

 

2023

SaaS Revenue

 

 

$59.5 - $60.0

 

$257 to $259

SaaS Adjusted EBITDA

 

 

($2.0 - $3.0)

 

Turns Profitable

 

1st Quarter

 

2nd Quarter

 

3rd Quarter

 

4th Quarter

 

Full Year

(in millions)

2023

 

2023

 

2023

 

2023

 

2023

Marketing Services Revenue

$176 - $180

 

$182 - $186

 

$112 - $115

 

$165 - $168

 

$635 - $649

Marketing Services Adjusted EBITDA

 

 

 

 

 

 

 

 

$185 - $187

____________________________

1 Total SaaS revenue in the U.S. and International segments was $57.9 million and $1.4 million for the three months ended December 31, 2022, respectively.

2 Total Marketing Services revenue in the U.S. and International segments was $187.8 million and $32.3 million for the three months ended December 31, 2022, respectively.

3 Defined as total client billings by month divided by the number of clients that have revenue-generating solutions during the month.

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 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, February 23, 2023 at 8:30 a.m. (Eastern Time) to discuss the Company's fourth 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

 

Years Ended

 

December 31,

 

December 31,

(in thousands, except share and per share data)

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

Revenue

$

279,368

 

 

$

244,439

 

 

$

1,202,388

 

 

$

1,113,382

 

Cost of services

 

100,463

 

 

 

93,109

 

 

 

422,006

 

 

 

408,043

 

Gross profit

 

178,905

 

 

 

151,330

 

 

 

780,382

 

 

 

705,339

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

Sales and marketing

 

86,773

 

 

 

99,536

 

 

 

362,432

 

 

 

357,813

 

General and administrative

 

56,892

 

 

 

46,540

 

 

 

216,406

 

 

 

153,902

 

Impairment charges

 

102,000

 

 

 

 

 

 

102,222

 

 

 

3,611

 

Total operating expenses

 

245,665

 

 

 

146,076

 

 

 

681,060

 

 

 

515,326

 

 

 

 

 

 

 

 

 

Operating (loss) income

 

(66,760

)

 

 

5,254

 

 

 

99,322

 

 

 

190,013

 

Other income (expense):

 

 

 

 

 

 

 

Interest expense

 

(16,318

)

 

 

(10,708

)

 

 

(56,902

)

 

 

(48,867

)

Interest expense, related party

 

 

 

 

(4,278

)

 

 

(3,505

)

 

 

(17,507

)

Other components of net periodic pension benefit

 

39,317

 

 

 

13,831

 

 

 

44,612

 

 

 

14,829

 

Other income (expense)

 

(119

)

 

 

3

 

 

 

15,448

 

 

 

(4,154

)

(Loss) income before income tax (expense) benefit

 

(43,880

)

 

 

4,102

 

 

 

98,975

 

 

 

134,314

 

Income tax (expense) benefit

 

(6,565

)

 

 

986

 

 

 

(44,627

)

 

 

(32,737

)

Net (loss) income

$

(50,445

)

 

$

5,088

 

 

$

54,348

 

 

$

101,577

 

Other comprehensive income (loss):

 

 

 

 

 

 

 

Foreign currency translation adjustment, net of tax

 

4,397

 

 

 

498

 

 

 

(8,214

)

 

 

(8,047

)

Comprehensive (loss) income

$

(46,048

)

 

$

5,586

 

 

$

46,134

 

 

$

93,530

 

 

 

 

 

 

 

 

 

Net (loss) income per common share:

 

 

 

 

 

 

 

Basic

$

(1.47

)

 

$

0.15

 

 

$

1.58

 

 

$

3.02

 

Diluted

$

(1.47

)

 

$

0.13

 

 

$

1.49

 

 

$

2.78

 

 

 

 

 

 

 

 

 

Weighted-average shares used in computing basic and diluted net (loss) income per common share:

 

 

 

 

 

 

 

Basic

 

34,270,520

 

 

 

34,006,358

 

 

 

34,336,493

 

 

 

33,607,446

 

Diluted

 

34,270,520

 

 

 

37,983,847

 

 

 

36,506,095

 

 

 

36,495,746

 

Thryv Holdings, Inc. and Subsidiaries

Consolidated Balance Sheets

 

(in thousands, except share data)

December 31, 2022

 

December 31, 2021

Assets

 

 

 

Current assets

 

 

 

Cash and cash equivalents

$

16,031

 

 

$

11,262

 

Accounts receivable, net of allowance of $14,766 in 2022 and $17,387 in 2021

 

284,698

 

 

 

279,053

 

Contract assets, net of allowance of $33 in 2022 and $88 in 2021

 

2,583

 

 

 

5,259

 

Taxes receivable

 

11,553

 

 

 

14,711

 

Prepaid expenses

 

25,092

 

 

 

22,418

 

Indemnification asset

 

26,495

 

 

 

24,346

 

Other current assets

 

11,864

 

 

 

13,596

 

Total current assets

 

378,316

 

 

 

370,645

 

Fixed assets and capitalized software, net

 

42,334

 

 

 

50,938

 

Goodwill

 

566,004

 

 

 

671,886

 

Intangible assets, net

 

34,715

 

 

 

82,577

 

Deferred tax assets

 

113,859

 

 

 

90,565

 

Other assets

 

42,649

 

 

 

33,891

 

Total assets

$

1,177,877

 

 

$

1,300,502

 

 

 

 

 

Liabilities and Stockholders' Equity

 

 

 

Current liabilities

 

 

 

Accounts payable

$

18,972

 

 

$

8,610

 

Accrued liabilities

 

126,810

 

 

 

131,813

 

Current portion of unrecognized tax benefits

 

31,919

 

 

 

29,771

 

Contract liabilities

 

41,854

 

 

 

51,726

 

Current portion of long-term debt

 

70,000

 

 

 

70,000

 

Other current liabilities

 

10,937

 

 

 

15,214

 

Total current liabilities

 

300,492

 

 

 

307,134

 

Term Loan, net

 

345,256

 

 

 

309,672

 

Term Loan, related party

 

 

 

 

142,875

 

ABL Facility

 

54,554

 

 

 

39,929

 

Pension obligations, net

 

72,590

 

 

 

140,167

 

Deferred tax liabilities

 

513

 

 

 

10,798

 

Other liabilities

 

22,205

 

 

 

35,212

 

Total long-term liabilities

 

495,118

 

 

 

678,653

 

Commitments and contingencies

 

 

 

Stockholders' equity

 

 

 

Common stock - $0.01 par value, 250,000,000 shares authorized; 61,279,379 shares issued and 34,593,837 shares outstanding at December 31, 2022; and 60,830,853 shares issued and 34,145,311 shares outstanding at December 31, 2021

 

613

 

 

 

608

 

Additional paid-in capital

 

1,105,701

 

 

 

1,084,288

 

Treasury stock - 26,685,542 shares at December 31, 2022 and December 31, 2021

 

(468,879

)

 

 

(468,879

)

Accumulated other comprehensive income (loss)

 

(16,261

)

 

 

(8,047

)

Accumulated deficit

 

(238,907

)

 

 

(293,255

)

Total stockholders' equity

 

382,267

 

 

 

314,715

 

Total liabilities and stockholders' equity

$

1,177,877

 

 

$

1,300,502

 

Thryv Holdings, Inc. and Subsidiaries

Consolidated Statements of Cash Flows

 

 

Years Ended December 31,

(in thousands)

 

2022

 

 

 

2021

 

Cash Flows from Operating Activities

 

 

 

Net income

$

54,348

 

 

$

101,577

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

Depreciation and amortization

 

88,392

 

 

 

105,473

 

Amortization of debt issuance costs

 

5,749

 

 

 

4,919

 

Deferred income taxes

 

(15,119

)

 

 

(20,438

)

Provision for credit losses and service credits

 

25,971

 

 

 

19,394

 

Stock-based compensation expense

 

14,628

 

 

 

8,094

 

Other components of net periodic pension (benefit)

 

(44,612

)

 

 

(14,829

)

Impairment charges

 

102,222

 

 

 

3,611

 

(Gain) loss on foreign currency exchange rates

 

(1,591

)

 

 

745

 

Bargain purchase gain

 

(10,883

)

 

 

 

Other

 

(2,866

)

 

 

(2,569

)

Changes in working capital items, excluding acquisitions:

 

 

 

Accounts receivable

 

(5,242

)

 

 

74,368

 

Contract assets

 

2,764

 

 

 

5,628

 

Prepaid expenses and other assets

 

2,518

 

 

 

6,084

 

Accounts payable and accrued liabilities

 

(41,105

)

 

 

(125,883

)

Other liabilities

 

(26,601

)

 

 

4,397

 

Net cash provided by operating activities

 

148,573

 

 

 

170,571

 

 

 

 

 

Cash Flows from Investing Activities

 

 

 

Additions to fixed assets and capitalized software

 

(29,233

)

 

 

(26,849

)

Proceeds from the sale of fixed assets

 

 

 

 

6,836

 

Acquisition of a business, net of cash acquired

 

(22,793

)

 

 

(175,370

)

Other

 

 

 

 

(1,192

)

Net cash (used in) investing activities

 

(52,026

)

 

 

(196,575

)

 

 

 

 

Cash Flows from Financing Activities

 

 

 

Proceeds from Term Loan

 

 

 

 

418,070

 

Proceeds from Term Loan, related party

 

 

 

 

260,930

 

Payments of Term Loan

 

(104,165

)

 

 

(110,215

)

Payments of Term Loan, related party

 

(8,347

)

 

 

(47,785

)

Payments of Senior Term Loan

 

 

 

 

(335,821

)

Payments of Senior Term Loan, related party

 

 

 

 

(113,789

)

Proceeds from ABL Facility

 

976,296

 

 

 

1,046,249

 

Payments of ABL Facility

 

(961,670

)

 

 

(1,085,558

)

Proceeds from exercises of stock options and stock warrants

 

6,789

 

 

 

20,967

 

Other

 

 

 

 

(13,960

)

Net cash (used in) provided by financing activities

 

(91,097

)

 

 

39,088

 

 

 

 

 

Effect of exchange rate changes on cash and cash equivalents

 

(827

)

 

 

(1,933

)

Increase in cash and cash equivalents and restricted cash

 

4,623

 

 

 

11,151

 

Cash and cash equivalents and restricted cash, beginning of period

 

13,557

 

 

 

2,406

 

Cash and cash equivalents and restricted cash, end of period

$

18,180

 

 

$

13,557

 

 

 

 

 

Supplemental Information

 

 

 

Cash paid for interest

$

57,084

 

 

$

66,737

 

Cash paid for income taxes, net

$

58,259

 

 

$

63,893

 

The following tables summarize the operating results of the Company's reportable segments:

 

Three Months Ended December 31,

 

Change

(in thousands of $)

 

2022

 

 

 

2021

 

 

Amount

 

%

Revenue

 

 

 

 

 

 

 

 

Thryv U.S. (1)

 

 

 

 

 

 

 

 

Marketing Services

$

187,755

 

 

$

153,555

 

 

$

34,200

 

 

22.3

%

SaaS

 

57,938

 

 

 

47,061

 

 

 

10,877

 

 

23.1

%

Thryv International (2)

 

 

 

 

 

 

 

 

Marketing Services

 

32,295

 

 

 

43,409

 

 

 

(11,114

)

 

(25.6

)%

SaaS

 

1,380

 

 

 

414

 

 

 

966

 

 

NM

 

Consolidated Revenue

$

279,368

 

 

$

244,439

 

 

$

34,929

 

 

14.3

%

 

 

 

 

 

 

 

 

 

Segment Gross Profit

 

 

 

 

 

 

 

 

Thryv U.S. (1)

 

 

 

 

 

 

 

 

Marketing Services

$

124,413

 

 

$

97,622

 

 

$

26,791

 

 

27.4

%

SaaS

 

34,944

 

 

 

28,710

 

 

 

6,234

 

 

21.7

%

Thryv International (2)

 

 

 

 

 

 

 

 

Marketing Services

 

18,802

 

 

 

25,006

 

 

 

(6,204

)

 

(24.8

)%

SaaS

 

746

 

 

 

(8

)

 

 

754

 

 

NM

 

Consolidated Segment Gross Profit

$

178,905

 

 

$

151,330

 

 

$

27,575

 

 

18.2

%

 

 

 

 

 

 

 

 

 

Segment EBITDA

 

 

 

 

 

 

 

 

Thryv U.S. (1)

 

 

 

 

 

 

 

 

Marketing Services

$

59,758

 

 

$

40,684

 

 

$

19,074

 

 

46.9

%

SaaS

 

83

 

 

 

(6,693

)

 

 

6,776

 

 

101.2

%

Thryv International (2)

 

 

 

 

 

 

 

 

Marketing Services

 

10,657

 

 

 

16,968

 

 

 

(6,311

)

 

(37.2

)%

SaaS

 

(2,305

)

 

 

(4,481

)

 

 

2,176

 

 

(48.6

)%

Consolidated Adjusted EBITDA

$

68,193

 

 

$

46,478

 

 

$

21,715

 

 

46.7

%

(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.

 

Years Ended December 31,

 

Change

(in thousands of $)

 

2022

 

 

 

2021

 

 

Amount

 

%

Revenue

 

 

 

 

 

 

 

Thryv U.S. (1)

 

 

 

 

 

 

 

Marketing Services

$

820,032

 

 

$

797,493

 

 

$

22,539

 

 

2.8

%

SaaS

 

211,801

 

 

 

170,498

 

 

 

41,303

 

 

24.2

%

Thryv International (2)

 

 

 

 

 

 

 

Marketing Services

 

166,010

 

 

 

144,837

 

 

 

21,173

 

 

14.6

%

SaaS

 

4,545

 

 

 

554

 

 

 

3,991

 

 

NM

 

Consolidated Revenue

$

1,202,388

 

 

$

1,113,382

 

 

$

89,006

 

 

8.0

%

 

 

 

 

 

 

 

 

Segment Gross Profit

 

 

 

 

 

 

 

Thryv U.S. (1)

 

 

 

 

 

 

 

Marketing Services

$

539,543

 

 

$

539,866

 

 

$

(323

)

 

(0.1

)%

SaaS

 

130,272

 

 

 

104,944

 

 

 

25,328

 

 

24.1

%

Thryv International (2)

 

 

 

 

 

 

 

Marketing Services

 

108,496

 

 

 

60,761

 

 

 

47,735

 

 

78.6

%

SaaS

 

2,071

 

 

 

(232

)

 

 

2,303

 

 

NM

 

Consolidated Segment Gross Profit

$

780,382

 

 

$

705,339

 

 

$

75,043

 

 

10.6

%

 

 

 

 

 

 

 

 

Segment EBITDA

 

 

 

 

 

 

 

Thryv U.S. (1)

 

 

 

 

 

 

 

Marketing Services

$

271,629

 

 

$

318,230

 

 

$

(46,601

)

 

(14.6

)%

SaaS

 

(3,686

)

 

 

(14,004

)

 

 

10,318

 

 

73.7

%

Thryv International (2)

 

 

 

 

 

 

 

Marketing Services

 

75,106

 

 

 

53,150

 

 

 

21,956

 

 

41.3

%

SaaS

 

(9,707

)

 

 

(6,853

)

 

 

(2,854

)

 

41.6

%

Consolidated Adjusted EBITDA

$

333,342

 

 

$

350,523

 

 

$

(17,181

)

 

(4.9

)%

(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 December 31,

 

Years Ended December 31,

(in thousands)

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

Reconciliation of Adjusted EBITDA

 

 

 

 

 

 

 

Net (loss) income

$

(50,445

)

 

$

5,088

 

 

$

54,348

 

 

$

101,577

 

Impairment charges

 

102,000

 

 

 

 

 

 

102,222

 

 

 

3,611

 

Depreciation and amortization expense

 

22,438

 

 

 

24,798

 

 

 

88,392

 

 

 

105,473

 

Interest expense

 

16,318

 

 

 

14,986

 

 

 

60,407

 

 

 

66,374

 

Income tax expense (benefit)

 

6,565

 

 

 

(986

)

 

 

44,627

 

 

 

32,737

 

Restructuring and integration expenses (1)

 

3,365

 

 

 

3,109

 

 

 

17,804

 

 

 

18,145

 

Stock-based compensation expense (2)

 

4,488

 

 

 

1,862

 

 

 

14,628

 

 

 

8,094

 

Transaction costs (3)

 

1,322

 

 

 

5,086

 

 

 

6,119

 

 

 

25,059

 

Other components of net periodic pension (benefit) (4)

 

(39,317

)

 

 

(13,831

)

 

 

(44,612

)

 

 

(14,829

)

Non-cash (gain) loss from remeasurement of indemnification asset (5)

 

(676

)

 

 

1,247

 

 

 

(2,148

)

 

 

(1

)

Other (6)

 

2,135

 

 

 

5,119

 

 

 

(8,445

)

 

 

4,283

 

Adjusted EBITDA

$

68,193

 

 

$

46,478

 

 

$

333,342

 

 

$

350,523

 

(1)

For the years ended December 31, 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)

We record stock-based compensation expense related to the amortization of grant date fair value of the Company’s stock-based compensation awards.

(3)

Expenses related to the Thryv Australia and Vivial acquisitions and other transaction costs.

(4)

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 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)

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. During the years ended December 31, 2021 and 2020, Other primarily includes expenses related to potential non-income based tax liabilities and 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, 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

%

 

Three Months Ended December 31, 2021

 

Thryv U.S.

 

Thryv International

 

 

(in thousands)

Marketing

Services

 

SaaS

 

Marketing

Services

 

SaaS

 

Total

Reconciliation of Adjusted Gross Profit

 

 

 

 

 

 

 

 

 

Gross profit

$

97,622

 

 

$

28,710

 

 

$

25,006

 

 

$

(8

)

 

$

151,330

 

Plus:

 

 

 

 

 

 

 

 

 

Depreciation and amortization expense

 

3,493

 

 

 

1,102

 

 

 

5,594

 

 

 

53

 

 

 

10,242

 

Stock-based compensation expense

 

44

 

 

 

16

 

 

 

 

 

 

 

 

 

60

 

Adjusted Gross Profit

$

101,159

 

 

$

29,828

 

 

$

30,600

 

 

$

45

 

 

$

161,632

 

Gross Margin

 

63.6

%

 

 

61.0

%

 

 

57.6

%

 

 

(1.9

)%

 

 

61.9

%

Adjusted Gross Margin

 

65.9

%

 

 

63.4

%

 

 

70.5

%

 

 

10.9

%

 

 

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

%

 

Year Ended December 31, 2021

 

Thryv U.S.

 

Thryv International

 

 

(in thousands)

Marketing

Services

 

SaaS

 

Marketing

Services

 

SaaS

 

Total

Reconciliation of Adjusted Gross Profit

 

 

 

 

 

 

 

 

 

Gross profit

$

539,866

 

 

$

104,944

 

 

$

60,761

 

 

$

(232

)

 

$

705,339

 

Plus:

 

 

 

 

 

 

 

 

 

Depreciation and amortization expense

 

16,978

 

 

 

3,700

 

 

 

32,463

 

 

 

92

 

 

 

53,233

 

Stock-based compensation expense

 

309

 

 

 

71

 

 

 

 

 

 

 

 

 

380

 

Adjusted Gross Profit

$

557,153

 

 

$

108,715

 

 

$

93,224

 

 

$

(140

)

 

$

758,952

 

Gross Margin

 

67.7

%

 

 

61.6

%

 

 

42.0

%

 

 

(41.9

)%

 

 

63.4

%

Adjusted Gross Margin

 

69.9

%

 

 

63.8

%

 

 

64.4

%

 

 

(25.3

)%

 

 

68.2

%

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, 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

)%

 

Three Months Ended December 31, 2021

(in thousands)

Marketing Services

 

SaaS

 

U.S.

 

International

 

Total

 

U.S.

 

International

 

Total

Revenue

$

153,555

 

 

$

43,409

 

 

$

196,964

 

 

$

47,061

 

 

$

414

 

 

$

47,475

 

Adjusted EBITDA

 

40,684

 

 

 

16,968

 

 

 

57,652

 

 

 

(6,693

)

 

 

(4,481

)

 

 

(11,174

)

Adjusted EBITDA Margin

 

26.5

%

 

 

39.1

%

 

 

29.3

%

 

 

(14.2

)%

 

 

NM

 

 

 

(23.5

)%

 

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

)%

 

Year Ended December 31, 2021

(in thousands)

Marketing Services

 

SaaS

 

U.S.

 

International

 

Total

 

U.S.

 

International

 

Total

Revenue

$

797,493

 

 

$

144,837

 

 

$

942,330

 

 

$

170,498

 

 

$

554

 

 

$

171,052

 

Adjusted EBITDA

 

318,230

 

 

 

53,150

 

 

 

371,380

 

 

 

(14,004

)

 

 

(6,853

)

 

 

(20,857

)

Adjusted EBITDA Margin

 

39.9

%

 

 

36.7

%

 

 

39.4

%

 

 

(8.2

)%

 

 

NM

 

 

 

(12.2

)%

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: 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”) to grow and modernize their operations so they can compete and win in today's economy. Over 50,000 businesses use our award-winning SaaS platform, Thryv®, to manage their end-to-end operations, which has helped businesses across the U.S. and overseas grow their bottom line. Thryv also manages digital and print presence for approximately 390,000 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.

Contacts

Data & News supplied by www.cloudquote.io
Stock quotes supplied by Barchart
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.