Earnings Call Transcript - THRY Q3 2025

Operator, Operator

Thank you for joining us for the Thryv Third Quarter 2025 Earnings Call. I will now turn the conference over to Cameron Lessard, Vice President of Corporate Development and Strategy. Please proceed.

Cameron Lessard, Vice President of Corporate Development and Strategy

Good morning, and thank you for joining us for Thryv Holdings Third Quarter 2025 Earnings Conference Call. With me today are Joe Walsh, Chairman and Chief Executive Officer; and Paul Rouse, Chief Financial Officer. During this call, we will make forward-looking statements that are subject to various risks and uncertainties. Actual results may differ materially from these statements. A discussion of these risks and uncertainties is included in our earnings release and SEC filings. Today's presentation will also include non-GAAP financial measures, which should be considered in addition to, but not as a substitute for our GAAP results. Reconciliations of these measures can be found in our earnings release. As a reminder, on this call, SaaS revenue reflects the combined performance of Thryv and Keap. We will only specify Keap's performance when discussing its revenue contribution for the quarter and fiscal year. With that, I'll turn the call over to Joe Walsh, Chairman and CEO. Joe?

Joe Walsh, Chairman and Chief Executive Officer

Thank you, Cameron, and good morning, everyone. I’d like to update you on our business transformation and the progress we're making, after which Paul will cover this quarter’s numbers. First, I want to mention our Grow Conference from two weeks ago in Arizona, which focused on small business growth. The conference had two parts: the first few days were for our partners, many of whom are from both Keap and Thryv, forming a single partner community. When we initially met them a year ago, they expressed frustration about a lack of support from Keap's previous ownership. While our partner results this year have been decent, they have not met our expectations for significant improvement. We have worked hard with our partners to understand their needs regarding updates, portals, API enhancements, and product improvements, and we've made considerable progress in delivering on those. This partner update felt like a significant achievement for us, and I believe we will see better outcomes as we move into 2026. Our partners seem impressed by our rapid delivery and innovation in software. The second part of the conference involved hundreds of small businesses, including both existing customers looking to learn more about our tools and many prospective customers eager to enhance their marketing efforts. We shared a straightforward growth model of marketing, selling, and growing, highlighting how our Marketing Center can serve as a foundation for this growth. Marketing Center is our fastest-selling product and has been central to our market engagement strategy. It provides essential services such as managing online listings, creating a search and answer engine optimized website, and tracking calls from online and offline sources. Many users even leverage Marketing Center while using competitor CRMs because it offers superior marketing management solutions. The Grow Conference reinforced that these small businesses are keen to improve their marketing strategies and measure what works. We also updated attendees on our AI developments. We’re integrating AI into our software to enhance usability, including social media captioning to help craft posts, review responses to manage feedback efficiently, and professional service descriptions for businesses that may not excel in writing. We plan to launch a simple AI website builder soon, allowing small businesses to quickly create websites. Our copywriting assistant simplifies email campaigns and landing pages. We have also tested call analysis, providing transcripts and lead scoring, which has shown remarkable results, such as one dentist receiving 27 leads from a two-day period of calls. This capability has impressed our partners and users alike. AI is streamlining our internal processes, enhancing productivity in roles across the company, from legal to accounting, and significantly improving our software development cycle and quality assurance. AI has greatly benefitted us this year and presents an exciting opportunity as we look ahead. I have a couple of additional comments to make later, but I know you're eager to hear the numbers, so let’s turn it over to Paul for that. Paul?

Paul Rouse, Chief Financial Officer

Thanks, Joe. Let's dive into the numbers. SaaS reported revenue was $115.9 million in the third quarter, representing an increase of 33% year-over-year. Keap contributed $16.8 million in the third quarter. Excluding Keap, Thryv SaaS business grew 14% year-over-year. SaaS adjusted gross margin increased 80 basis points year-over-year, reaching 73%. In the third quarter, SaaS adjusted EBITDA increased to $19.6 million, exceeding guidance and resulting in an adjusted EBITDA margin of 17%. We ended the third quarter with 103,000 SaaS subscribers, including 13,000 from Keap, representing a 7% increase year-over-year. With a large established customer base now in place, our focus is on increasing spend per customer by driving adoption of more products and solutions, especially among our high-value clients and larger businesses. This approach meaningfully expands SaaS lifetime value and is a more efficient driver of profitability. In the third quarter, overall SaaS ARPU reached $365 with Thryv at $355, up sequentially and Keap ARPU remaining strong at $437. Seasoned NRR declined to 94% this quarter, primarily reflecting noise introduced as we transition legacy digital marketing services clients on to our modern SaaS platform. As we systematically wind down older tech platforms on our marketing services side, we are upgrading clients to our current software offerings while honoring their previously committed pricing, vastly improving the value they receive by introducing a wave of smaller accounts into our base, which temporarily impact ARPU at the time. These accounts from our Q3 2023 migration are now cycling into the seasoned NRR calculation after crossing the 12-month threshold. The performance we're seeing from this group is consistent with the minimal initial commitments and lower propensity to expand spend compared to our higher-quality software clients. This is all part of our broader business transformation. And while some SaaS metrics will show temporary noise during this transition, we are making steady progress building a solid software client base with strong underlying fundamentals. Multiproduct adoption continues to accelerate in the third quarter. Clients with two or more SaaS products grew to 17,000 or 20% of our base compared to 15,000 or 16% a year ago. Thryv centers per client was 50% at the end of the third quarter compared to 12% in the prior year. Moving over to Marketing Services, third quarter revenue was $85.7 million and above guidance. Third quarter Marketing Services adjusted EBITDA was $21.2 million, resulting in an adjusted EBITDA margin of 25%. As anticipated, this quarterly performance is subject to the dynamics of the print schedule, which performed better than expected and returned to normalized levels starting in the second quarter. Third quarter Marketing Services billings totaled $70.6 million, down 33% year-over-year, reflecting the intentional shift in our strategy. As we continue to initiate upgrades of the legacy digital marketing services products for clients to our SaaS platform, the decline will persist, but at a managed pace, we remain on track to exit marketing services by 2028 with cash flows lasting through 2030, ensuring strong liquidity as we fully transform to a pure-play software business. Total company billings were $184.2 million, down just 4% year-over-year, underscoring the company's steady progress as it transforms into a leading SaaS business and positions itself to stabilize total revenue and return to sustainable growth. In the third quarter, we generated free cash flow of $14.6 million, which brings the year-to-date free cash flow to $18.8 million. We ended the third quarter with net debt down $9 million to $265 million, bringing our leverage ratio to 1.9x. Turning to our outlook for 2025. For the fourth quarter, we expect SaaS revenue in the range of $118 million to $121 million. For the full year, we are updating our SaaS revenue to a range of $460 million to $463 million. For the fourth quarter, we expect SaaS adjusted EBITDA in the range of $19.2 million to $21.2 million. For the full year, we are raising SaaS adjusted EBITDA guidance to a range of $73 million to $75 million. For the full year, we expect Marketing Services revenue in the range of $323 million to $325 million. For the full year, we are updating Marketing Services adjusted EBITDA guidance to a range of $76 million to $78 million. Now, back to Joe.

Joe Walsh, Chairman and Chief Executive Officer

Thanks, Paul. I'd like to discuss our vertical initiative. Earlier this year, we mentioned our HVAC vertical where we combined the Keap automation tools and Thryv Marketing Center to create compelling vertical applications. Our initial application was for HVAC, and I recently spoke with a lead customer about it. They are very satisfied and have experienced strong results from our implementation. To give you an idea of their success, they reported about a 10% increase in jobs booked and a 25% rise in total revenue. They are generating over 50 qualified leads each month and have seen a 12% increase in repeat business due to automated reminders engaging their customers. Additionally, they felt their social media efforts could improve, which is common for small businesses, but they have observed a 45% boost in engagement on their social platforms. Overall, they are extremely happy. Our HVAC vertical sales have been robust, and we are soon launching a wider home services vertical that caters to broader home improvement categories, with more to follow. Our model of customizing automations around the vertical is proving effective. I also want to highlight that the customer I just described is a ServiceTitan user, a large HVAC company with many trucks on the road. While ServiceTitan handles tracking and operational aspects, we manage their marketing needs. This trend where companies use specialized vertical CRMs alongside our marketing tools is becoming more common. We maintain a more horizontal CRM approach and haven’t developed extensively into specific verticals. For larger, more sophisticated businesses, it’s typical to use industry-specific CRMs, which works well for us. Our Marketing Center integrates seamlessly within that framework, and we are constantly adding more integrations. As our software platform evolves and strengthens, we are starting to focus more on the upper market. Regarding our average revenue per user, it has varied as we transition legacy marketing clients from older platforms, often at lower rates, due to our previous strategies. However, our sales for new customers are moving rapidly from the $4,000 to $8,000 range. Our sales team is consistently closing deals in the $6,000 range. With our product development and marketing efforts, we are clearly moving upmarket. We've noted a steady and strong growth in the segment of customers paying $400 and above per month, which tends to have excellent retention and profitability, helping to clarify our customer base amidst some smaller clients we’ve onboarded through these transitions. We will provide more updates on this in the future, but our business transformation continues smoothly. Finally, I want to acknowledge Sean Wechter, our new Chief Technology Officer. He is very focused on AI, and we are eager about the potential advancements he will bring in integrating AI and enhancing our engineering capabilities. I’m excited to welcome Sean to the team, and I’ll now turn it over to questions. Operator?

Operator, Operator

Your first question comes from the line of Scott Berg with Needham & Company.

Scott Berg, Analyst

Joe, I wanted to start off on the SaaS business. Obviously, growth remains reasonably strong, but you did miss your guidance in the quarter on a very minimal amount, but did come in at the very low end of the range. Help us understand kind of what's happening, whether it's on the new sales side or the expansion side to kind of drive the results versus your expectations 90 days ago?

Joe Walsh, Chairman and Chief Executive Officer

Yes, we are making significant progress in transforming our business from a phone book model to a SaaS software model. There has been a lot of execution involved, and our execution this quarter wasn’t flawless. While you often ask about the macroeconomic environment, I can't attribute our results to anything external. Our execution was just slightly below our expectations. We are taking the necessary steps to improve our performance moving forward. There isn't a major message or trend to highlight; we just didn't achieve our goals perfectly. However, I have no complaints regarding the market or anything related.

Scott Berg, Analyst

In your prepared remarks, Joe, you mentioned that partner results have been somewhat satisfactory compared to your expectations. How can you enhance the partner opportunities within the Keap ecosystem that you've integrated? Is it mainly due to the additional innovation you referred to, which will take time to develop with these partners? Or in the past nine months of working with them, have you discovered any different strategies to better utilize that ecosystem?

Joe Walsh, Chairman and Chief Executive Officer

Yes, Scott. Keap is well-known in the infusion Saas space and has mostly built its business through partnerships. They used to hold large conferences with over 2,000 attendees that were driven by partners. However, under new leadership, they shifted focus away from partners to develop a direct sales channel for a few years, which left partners feeling overlooked. When we attended the initial Grow Conference shortly after our acquisition, many partners expressed their frustrations about being neglected for years and noted that innovations had slowed down. They pointed out a lack of basic tools and felt unheard during this transition. During the due diligence, I hadn’t fully grasped this sentiment; I believed we could quickly reignite partnership growth. Instead, the partners wanted service improvements first. Throughout this past year, we worked diligently to address their needs, and we have successfully delivered on many of their requests. The feedback we received at our Grow Conference two weeks ago was overwhelmingly positive, with partners expressing their appreciation. Partner morale is improving significantly, and I believe many partners work with various tools beyond Keap and are now more inclined to engage with us. My earlier comments about last year's partner performance were conservative; it was weaker than expected and is likely the main reason for the results diverging from my plans. After spending three days meeting with many partners, I feel optimistic about a re-acceleration in 2026 based on our actions and forthcoming updates. I don't view this as a permanent setback; it can be challenging to fully understand the sentiment and momentum surrounding a business after an acquisition. I still stand by the decision to acquire and remain enthusiastic about our position, acknowledging that we needed to take a small step back before we could move forward.

Operator, Operator

Your next question comes from the line of Jason Kreyer with Craig-Hallum.

Jason Kreyer, Analyst

All right. Can you guys hear me okay?

Joe Walsh, Chairman and Chief Executive Officer

Yes.

Jason Kreyer, Analyst

Okay. Great. So Joe, look, you just held this user conference. Just curious, any takeaways from customers as far as what the current environment feels like? Any changes to purchasing decisions? You had admitted in the last question that like you're not playing in the macro or anything. But just give us a tone for how things feel out there.

Joe Walsh, Chairman and Chief Executive Officer

I think they're pretty decent. I've previously mentioned that our customer base tends to address the challenging aspects of life. We’re not focused on high-end retail or dining, and while the consumer market might show signs of softness, that's not representative of us. When issues arise, like a malfunctioning air conditioning unit or a broken window, our teams are the ones who are called to resolve those problems. This makes us less sensitive to economic fluctuations. If we fall short in our delivery, it's mainly due to our own shortcomings. I believe there are others who might better analyze the macro situation. Even in a challenging economic climate, we can achieve our targets through excellent execution. It's really down to us. From my conversations, I gather that the market is doing reasonably well. There appears to be a split in the market; the wealthier consumers are seeing their investments increase and are feeling positive, while there does seem to be some softness among others. This is a general observation, but I don't feel it's impacting Thryv's performance.

Jason Kreyer, Analyst

Appreciate the thoughts nonetheless. I wanted to just follow up on the vertical sales emphasis, the HVAC stuff. As we look out over the next several quarters, how does this manifest in fundamentals? Like does this drive NRR? Does this curb churn? Or does this grow ARPU? Like maybe you could walk through what we should expect over the next several quarters?

Joe Walsh, Chairman and Chief Executive Officer

Yes. I think it will certainly be gradual. We're not -- we got a pretty big company with a pretty big customer base. So, we can't just -- it isn't going to instantly be all vertical all the time. But Jason, the thing that we're trying to do is move from $4,000 a year per customer to $8,000. And as I mentioned, the run rate of our premise sales team is more like $6,000 right now. And the overall number is lower in part because of some of the conversions of legacy marketing services. And some of those people have come over at much, much lower price points. And I mean, just for the avoidance of doubt, our sales force isn't even calling on them. We don't really call on anybody at much under about $350, $400 a month. That's -- they're sort of inert just doing their thing. We're not really working that group very hard. So anyway, back to what's going to happen with verticals. I think these early sales in the verticals that we're working have been coming in more like the $8,000 that we're going for like right now. So, we're ending up making larger sales, and we're selling to a little bit larger businesses, which is ultimately our goal. This might surprise you, but a solopreneur who has less than $500,000 of revenue is churnier than a business with, say, $1 million or $1.2 million or $1.5 million of revenue that has 7, 8, 10, 12 employees. And in our base, we still have a reasonable number of these solopreneurs, and that's where some of the churn noise comes from. So, what the vertical push is allowing us to do and as well as a number of other things that we're doing in our whole go-to-market data strategy, is we're putting our sales resource against a little bit bigger businesses. These are not giant companies. We're talking about 10 employees, 15 employees. But we're calling on those a little bit bigger businesses that are a little bit more stable. And the vertical program is allowing us to really get traction there because sometimes when you call on a bigger business, they'll say, 'Oh, I already have a CRM' because obviously, we offer a CRM. But what they often are not happy with is how they're managing their overall marketing, how they're measuring their marketing, how they're doing with social media. A lot of them are befuddled with the answer engines, concerned about trying to make sure that they're coming up high in the answer engine results, and don't really have an answer for that. They need some help. There's a number of elements there. Some of them are doing search engine marketing, with some guy out of the trunk of his car, and it's okay, but not that great. They want to professionalize it, and they want to be able to measure how it works. So, we're a great answer in all those areas. And so increasingly, what's happening is we're sitting in alongside of other people's CRMs and where we're doing the marketing and they're doing the back-office stuff. And so, I think you said, what will we see? I think you will see steady improvement in ARPU. I think just the things that have dragged us closer to $4,000 I won't say we're all the way through it, but we're through a lot of that. And I think that our sales organization have a lot to sell now. We've built out the product line a lot. And I think we'll be able to make larger sales to customers on which will make higher margins, have lower churn. And you can see it when you look at that quality metric beginning to really settle in and move. And I don't focus as much on the absolute gross customer amount. I'm focused on building that quality metric because there's a little bit of noise in our base from some of those conversions. So anyway, that hopefully gives you some sense for the vertical strategy, Jason.

Operator, Operator

Your next question comes from the line of Arjun Bhatia from William Blair.

Alinda Li, Analyst

This is Alinda Li on for Arjun Bhatia. With the onboard of the CTO, Sean, for a little over a month now, Joe, what are the early strategies in the works to achieving operational efficiency, product acceleration and also AI innovation?

Joe Walsh, Chairman and Chief Executive Officer

Yes, Sean is fully focused on AI, and the team he is bringing in shares that focus as well. While our team was already doing a solid job with AI, Sean has elevated our efforts significantly. He is dedicated to ensuring that we have all the necessary tools ready and that the team is actively using them effectively. As a result, I anticipate that as we progress through 2026, the pace of development related to our product roadmap will increase. It’s already accelerating, and I believe it will continue to speed up. I'm excited about that because our larger customers are looking for solutions that I think we can deliver more quickly with this mindset and approach that Sean provides. Additionally, Sean's prior experience at Boomi was centered on integrations and making software compatible, which is crucial as we expand into larger markets. Companies, even those with fewer employees, may hesitate to change their existing workflows for a new tool, no matter how effective it is. Therefore, we need to ensure our solutions integrate smoothly with their processes. Sean often reassures me that this is a manageable challenge, and I value that confidence. He is an outstanding leader who will guide our tech team in a way that fosters high morale. His morale scores are exceptional, and I believe this will lead to a more accelerated roadmap supported by our enthusiastic development teams.

Alinda Li, Analyst

Awesome. And with the new vertical product in home services, are you approaching the product development in a similar way as with Thryv for HVAC, where you work with the industry leader in the market in creating that product? How should we think about this product roadmap in the future in terms of vertical play?

Joe Walsh, Chairman and Chief Executive Officer

Yes. We have powerful automation processes that rely on established methods. It's essential to collaborate with market leaders to understand their best practices. Once we delve into home services, like electrical or roofing, we notice many similarities, despite some variations regarding insurance and other details. We're not starting from scratch. Our team is dedicated, and I spoke with the team leader last night about our sales organization’s capacity to keep up with the pace of development. Initially, we required these verticals, and now they are being produced rapidly, perhaps faster than we can train and integrate them. We are considering how to handle this situation effectively. They focus on finding strong businesses, spending time mapping out their wants and needs.

Operator, Operator

Your next question comes from the line of Zach Cummins with B. Riley Securities.

Zach Cummins, Analyst

Joe, I wanted to start off just a little more focus on these Answers-based engines. I know it's been a big concern for many publishers and small businesses around visibility of their websites within this evolving dynamic. So, can you talk a little bit more about what Thryv is doing to make sure that your customers are remaining visible within these answer-based engines?

Joe Walsh, Chairman and Chief Executive Officer

I'd be happy to. We have invested considerable effort in understanding how Answer engines function and what drives their results. Although I won’t get into all the specifics today, we believe this development is significantly beneficial for us, Zach. It provides us with a competitive advantage. For years, we have been up against Google, and twenty years ago, we actually had more traffic than they did. We were prominent with platforms like Yellowpages.com, DeskOS, and SuperPages, which still attract a lot of traffic. Over the years, Google has worked hard to compete with us and diminish our references. However, with the emergence of Answer engines, Google's dominance in search is being challenged. While they still hold the majority, these engines often turn to our sites such as Yellowpages.com, DeskOS, and SuperPages, as well as similar platforms in New Zealand and Australia, to retrieve authoritative answers instead of relying on Google. This means Google no longer has control over certain search results. Our pioneering online Yellow Pages directories feature extensive, detailed content about small businesses in places like Tupelo, Mississippi, and Rapid City, South Dakota, that never fully adopted Google. The visibility of these answers in Answer engines is fantastic for us, allowing us to offer more value than we would have otherwise. Furthermore, we also create and host websites for clients—approximately 54,000 currently—and are continually adding more. We excel at developing knowledge graphs that align with what Answer engines seek, and we practice Answer Engine Optimization to ensure that small business information is presented effectively both on their sites and in social media or other management listings. We can optimize positions for our clients, as highlighted by a partner's experience with a dentist. By choosing to work with Thryv and allowing us to implement additional strategies, he saw an astonishing 27 leads overnight. He was thrilled because he essentially opened the floodgates for us to leverage Answer engines. If you asked me whether I would prefer a world with or without Answer engines, I would choose to have them every day—it's truly beneficial for us, and I welcome Google's slight easing of control.

Zach Cummins, Analyst

Understood. And my one follow-up question is just around balancing ARPU expansion with looking for ways to continue to grow the customer base. Obviously, ARPU expansion has been the bigger driver here in recent quarters and it looks like that's going to continue to be the case as you get more quality customers within that SaaS customer base. But can you just give us a sense of maybe when we hit that inflection point and we start to see stabilization in that gross customer count and maybe you're getting a little more of a balanced contribution from both customer growth and ARPU expansion?

Joe Walsh, Chairman and Chief Executive Officer

We have several specific initiatives underway to expand our business beyond the Zoo. However, if we were to rush into this without careful planning, we would find ourselves competing like any other software company, facing challenges with customer acquisition costs that don't align with the lifetime value. Fortunately, we have a significant advantage in our large customer base who appreciate our services and are willing to communicate with us. To address your question, even if we only replaced lost customers without adding new ones, we could still increase our revenue from just under $500 million to $800 million or $900 million by focusing on growing the average revenue per user. You can expect to see robust growth from us, even before we take on additional customers. Regarding acquisition, we are monitoring the financial metrics closely to ensure that our cost of acquisition aligns with the lifetime value. Making larger sales to slightly bigger companies simplifies this process. We're currently not aggressively pursuing new customer growth in the near term; rather, we're achieving solid growth by ensuring that our new customers receive attention, either through in-person visits or online meetings. This engagement is proving very productive, and our sales team is enthusiastic about the business they're generating from these efforts. Therefore, in your models, you shouldn't expect significant short-term gains from adding customers. While we anticipate stronger growth in the long run, our immediate focus is on solidifying relationships and expanding the engagement with our existing customers.

Operator, Operator

Your next question comes from Matt Swanson with RBC.

Matthew Swanson, Analyst

I really appreciate the quality SaaS client metrics new disclosure, as you mentioned, reducing a lot of that noise. Can you just talk a little bit more, maybe as a follow-up to that last answer of the trends you're seeing within that cohort, especially now that we've gotten to 77% of the client base, the assumption would be that, that group is going to start to be much more broadly reflected in the business results overall. So just kind of trends that you're seeing in that group relative to the overall business.

Joe Walsh, Chairman and Chief Executive Officer

I really appreciate the question because it addresses a key aspect of our business. Sometimes people struggle to understand our operations due to the ongoing transformation. The fluctuations in top-line revenue are influenced by the print business's publication schedule as it winds down. Additionally, there are customer groups that have transitioned in batches, with some of them spending much less than the levels we focus on with our field sales team. This creates some variability in the data, making it hard to identify clear patterns. However, if we examine customers who spend $400 or more, they are typically not solopreneurs but instead businesses with multiple employees and a reasonable amount of billings, which we consider to be legitimate companies. These customers tend to have lower churn rates and demonstrate greater interest and capability to purchase more tools and software from us. We find ourselves engaging with individuals who manage marketing or software within their businesses, which is very fulfilling for us. Often, these businesses are also experiencing their own growth, leading to an increase in revenue and resources, which in turn enhances their capacity to spend more with us. This creates a positive cycle where our offerings assist them in acquiring leads, expanding, and building their order books. As they grow, they tend to hire more employees and utilize additional services like workforce centers. This concept is central to our daily discussions and initiatives, focusing on businesses with which we can develop substantial relationships. We also have an unspoken policy of servicing smaller customers through online channels and chat, reserving our time for larger businesses that present more growth potential. In the coming quarters, I expect to see improvements in our quality metrics reflecting these efforts. You're likely to observe an upward trend as these customers engage with multiple products, maintain good spending levels, and experience low churn rates. We're building on this foundation and making steady progress through this process.

Matthew Swanson, Analyst

That's really helpful. I wanted to combine two comments you made earlier in the call. We discussed how some regions in the SMB space never fully adopted platforms like Google. Now that we are rolling out AI and optimized search, I am curious about how you develop these products and how you market this cutting-edge technology to businesses that may be a couple of generations behind in technology. I would like to know how you communicate the potential value to them.

Joe Walsh, Chairman and Chief Executive Officer

We were discussing this yesterday. When talking to customers, it's important not to overwhelm them with discussions about automation and AI. Instead, we keep it simple, focusing on their ads, listings, and directories to ensure everything is accurate across the web. We emphasize a basic, well-maintained website and a solid foundation. It reminds me of an old ad for Ragu, where the message was that everything is inside the product. If they have questions about new technologies, we can clarify that AI is included, but we don’t start with that. Using complex terms can easily intimidate customers. We aim to build from a strong foundation, and Marketing Center provides that. For years, clients have recognized that some of their advertising spend is wasted without knowing why. With Marketing Center, they can track what works, apply call tracking numbers to all campaigns, and analyze website performance through heat maps and bounce rates. We offer various tools like widgets and chat options for effective measurement and improvement. For many businesses, the investment in outreach is significant, so the ability to optimize and link it to their sales data, even in places like Rapid City, South Dakota, is appealing. We strive to avoid jargon and remember our long-standing presence since 1886, which establishes trust. Our company has built enduring relationships, and we excel in serving areas that may be overlooked by others. Matt, did I answer your question?

Operator, Operator

There are no further questions at this time. This concludes today's call. Thank you for attending. You may now disconnect.