8-K
Thryv Holdings, Inc. (THRY)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): April 5, 2022
THRYV HOLDINGS, INC.
(Exact name of registrant as specified in its charter)
| Delaware | 001-35895 | 13-2740040 |
|---|---|---|
| (State or Other Jurisdiction of Incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
| 2200 West Airfield Drive,<br> P.O. Box 619810<br><br> <br>D/FW Airport, TX<br><br> <br>(Address of Principal Executive Offices) | 75261<br><br> <br>(Zip Code) | |
| --- | --- |
(972) 453-7000
(Registrant’s telephone number, including area code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the
following provisions \(see General Instruction A.2. below\):
| ☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
|---|---|
| ☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| --- | --- |
| ☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| --- | --- |
| ☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
| --- | --- |
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which<br><br> <br>registered |
|---|---|---|
| Common Stock, $0.01 par value | THRY | The Nasdaq Stock Market LLC |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 7.01. Regulation FD Disclosure.
On April 5, 2022, Thryv Holdings, Inc. (the “Company”) issued a press release announcing its first Investor Day in New York City. A copy of the press release is furnished as Exhibit 99.1 hereto and is incorporated by reference herein. The presentation for Investor Day is furnished as Exhibit 99.2 hereto and is incorporated by reference herein.
The furnishing of the attached presentation is not an admission as to the materiality of any information therein. The information contained in the slides is summary information that is intended to be considered in the context of more complete information included in the Company’s filings with the Securities and Exchange Commission (the “SEC”) and other public announcements that the Company has made, including the press release furnished as Exhibit 99.1 hereto, and may make from time to time by press release or otherwise.
The information in Item 7.01 of this Current Report is being furnished and shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section. The information in Item 7.01 of this Current Report shall not be incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, as amended.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits.
| Exhibit Number | Description |
|---|---|
| 99.1 | Press release, dated April 5, 2022, issued by Thryv Holdings, Inc. |
| --- | --- |
| 99.2 | Analyst and Investor Day presentation. |
| 104 | Cover Page Interactive Data File (embedded within the online XBRL document). |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| THRYV HOLDINGS, INC. | ||
|---|---|---|
| Date: April 5, 2022 | By: | /s/ Paul D. Rouse |
| Name: Paul D. Rouse | ||
| Title: Chief Financial Officer, Executive Vice President and Treasurer |
Exhibit 99.1
Thryv Hosts Investor Day, Announces SaaS Revenue Target
of $1 Billion in 2027
CEO Joe Walsh calls 2020s “The Decade of Small Business Automation” and says local firms across US and other developed countries are “ready to move to the cloud”
NEW YORK and DALLAS, April 5, 2022 – Thryv Chairman and CEO Joe Walsh will unveil his vision for “the decade of small business automation” and the future trajectory of SaaS revenues today at Thryv Holdings, Inc.’s (NASDAQ:THRY) Investor Day starting at 9 a.m. EDT at the Nasdaq MarketSite in Midtown Manhattan. The Thryv small business platform transforms the way local businesses run, by automating their day-to-day functions with cloud software they access from their smartphone, tablet or laptop.
In connection with the event, the company is announcing it is targeting SaaS revenue of $1 billion by 2027 and $4 billion by 2032. The company is also re-affirming first quarter and full year 2022 financial guidance ranges that it released on March 10, 2022.
“This is the decade that local, independent small businesses automate their operations and follow enterprises into the cloud,” said Walsh. “We put their office in their pocket so they can run their business from anywhere. And what's exciting is that there are 10 times more small businesses than there are larger enterprises. The opportunity is so much bigger and, beyond that, more impactful to Main Street.”
The company will highlight Thryv’s continued dedication to ensuring small- to medium-sized businesses (SMBs) have access to the same types of tools that enterprise businesses use, scaled for the small business owner’s day-to-day needs. Today’s SMB owner needs a competitive advantage in a market where costs are increasing across the board – in the labor they hire, the supplies they buy, and even in the pay-per-click search advertising they purchase to acquire new customers. Thryv’s platform saves time and money for small business owners by automating time-consuming daily tasks and keeping their brand in front of customers and prospects via their smartphones.
Some key takeaways from Thryv’s Investor Day conference:
| ● | Centralized Inbox |
|---|---|
| ○ | A centralized platform to manage all aspects of their business in one dashboard |
| --- | --- |
| ○ | Expanded interoperability with other business tools |
| --- | --- |
| ● | Hub by Thryv |
| --- | --- |
| ○ | It is being widely adopted by franchises - primarily service businesses with 10 to 100 locations |
| --- | --- |
| ● | Canada |
| --- | --- |
| ○ | Thryv continues its international expansion, moving into Canada in Q1 2022 |
| --- | --- |
| ● | ThryvPay Enhancements |
| --- | --- |
| ○ | In the US, Thryv’s proprietary digital payment tool will see new enhancements by the end of 2022, including: |
| --- | --- |
| ■ | Branded hardware for card-present transactions |
| --- | --- |
2200 West Airfield Dr., TX 29, P.O. Box 619810, D/FW Airport, TX 75261 thryv.com
| ■ | ThryvPay Visa - giving business owners faster access to funds, segregating business and personal expenses, spending caps and expense tracking |
|---|---|
| ■ | Thryv Buy-Now-Pay-Later - enabling replacement versus repair as an option for the customer |
| --- | --- |
| ○ | ThryvPay will launch in Australia and Canada by the end of 2022 |
| --- | --- |
| ● | Centers |
| --- | --- |
| ○ | Thryv is unveiling its “Centers” strategy |
| --- | --- |
| ■ | Enables small business owners to purchase subscriptions by business function creating an expandable platform to meet evolving SMB demands. |
| --- | --- |
| ○ | Thryv’s current offering will soon be renamed Business Center |
| --- | --- |
| ■ | Including Customer Relationship Management (CRM), scheduling, a secure client portal and everything an SMB needs to run their business, day-to-day |
| --- | --- |
| ○ | The new Thryv Marketing Center, currently in beta, will launch in the second half of 2022. |
| --- | --- |
| ■ | It will include consented attribution for online engagement in conjunction with Business Center, multi-channel in-app digital advertising, real-time<br> and transparent marketing analytics, and a suite of fully integrated marketing tools. |
| --- | --- |
| ○ | Thryv announced at least three additional centers are in various stages of active development and will debut at future dates. |
| --- | --- |
Those that would like to join the webcast, starting at 9 a.m. EDT, can gain access here.
Thryv will also participate in Nasdaq’s Opening Bell Ringing Ceremony on April 6, 2022.
Forward-Looking Statements
Some statements included in this release constitute forward-looking statements. Statements that include the words “may”, “will”, “could”, “should”, “would”, “believe”, “anticipate”, “forecast”, “estimate”, “expect”, “preliminary”,
“intend”, “plan”, “project”, “target”, “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.
Forward-looking statements provide current expectations with respect to our financial performance and future events with respect to our business and industry in general. Forward-looking statements are based on certain assumptions and include any
statement that does not directly relate to any historical or current fact. 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. 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.
2200 West Airfield Dr., TX 29, P.O. Box 619810, D/FW Airport, TX 75261 thryv.com
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), franchises and agencies to grow and modernize their operations so they can compete and win in today’s economy. Over 46,000 businesses use our award-winning SaaS platform, Thryv®, to manage their end-to-end customer experience, which has helped businesses across the U.S. and overseas grow their bottom line. Thryv also manages digital and print presence for over 400,000 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.
Media Contact:
Charity Lacey
Gregory FCA
Office: 929.561.5991
thryv@gregoryfca.com
Investor Contact:
Cameron Lessard
Thryv, Inc.
214.773.7022
cameron.lessard@thryv.com
2200 West Airfield Dr., TX 29, P.O. Box 619810, D/FW Airport, TX 75261 thryv.com
Exhibit 99.2
©2022 Thryv, Inc. All Rights Reserved. ANALYST & INVESTOR DAY APRIL 2022 – NASDAQ MARKETSITE – NYC
JOE WALSH CHAIRMAN / CEO RYAN CANTOR CHIEF PRODUCT OFFICER KJ CHRISTOPHER VP – TREASURY, TAX & CORPORATE DEVELOPMENT GRANT FREEMAN CHIEF CUSTOMER OFFICER CAMERON LESSARD DIRECTOR - IR & CAPITAL MARKETS PAUL ROUSE CHIEF FINANCIAL OFFICER THE TEAM
This Presentation may include certain forward-looking statements, including, without limitation, statements concerning the conditions of our industry and our operations, performance, and financial condition, including, in particular, statements relating to our business, growth strategies, product development efforts, and future expenses. Forward-looking statements can be identified by words such as ‘‘anticipates,’’ ‘‘intends,’’ ‘‘plans,’’ ‘‘seeks,’’ ‘‘believes,’’ ‘‘estimates,’’ ‘‘expects,’’ ‘targets,’’ and similar references to future periods, or by the inclusion of forecasts or projections. Forward-looking statements are based on our current expectations and assumptions regarding our business, the economy, and other future conditions. Because forward-looking statements relate to the future, by their nature, they are subject to inherent uncertainties and risks (some of which are beyond our control) and changes in circumstances or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements. As a result, our actual results may differ materially from those contemplated by the forward-looking statements. Except as required by law, we are under no obligation to, and expressly disclaim any obligation to, update or alter any forward-looking statements whether as a result of any such changes, new information, subsequent events or otherwise. Market data and industry information used throughout this Presentation are based on management’s knowledge of the industry and the good faith estimates of management. We also relied, to the extent available, upon management’s review of independent industry surveys and publications and other publicly available information prepared by a number of third-party sources. All of the market data and industry information used in this Presentation involves a number of assumptions and limitations, and you are cautioned not to give undue weight to such estimates. Although we believe that these sources are reliable, we cannot guarantee the accuracy or completeness of this information, and we have not independently verified this information. While we believe the estimated market position, market opportunity and market size information included in this presentation are generally reliable, such information, which is derived in part from management’s estimates and beliefs, is inherently uncertain and imprecise. Projections, assumptions and estimates of our future performance and the future performance of the industry in which we operate are necessarily subject to a high degree of uncertainty and risk due to a variety of factors. These factors could cause results to differ materially from those expressed in our estimates and beliefs and in the estimates prepared by independent parties. You should not construe the contents of this Presentation as legal, tax, accounting or investment advice or a recommendation to take (or refrain from taking) any particular action. You should consult your own counsel and tax and financial advisors as to legal and related matters concerning the matters described herein. In addition to financial measures prepared in accordance with U.S. generally accepted accounting principles (“GAAP”), this presentation contains non-GAAP financial measures. We present non-GAAP financial measures including adjusted EBITDA, adjusted EBITDA margin and adjusted gross margin. The non-GAAP financial information 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 tables for reconciliations of the non-GAAP financial measures used in this presentation to the most comparable GAAP financial measures. We believe that these non-GAAP financial measures provide useful information about our financial performance, enhance the overall understanding of our past performance and future prospects 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 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 our industry. This Presentation also includes certain forward-looking non-GAAP financial measures, such as adjusted EBITDA margin and adjusted gross margin. We calculate forward-looking non-GAAP financial measures based on internal forecasts that omit certain amounts that would be included in GAAP financial measures. We have not provided quantitative reconciliations of these forward-looking non-GAAP financial measures to the most directly comparable forward-looking GAAP financial measures because the excluded items are not available on a prospective basis without unreasonable efforts. ANALYSIS & INVESTOR DAY SAFE HARBOR
WELCOME – 9:00 AM Cameron Lessard, Director of Investor Relations & Capital Markets DECADE OF SMB SAAS – 9:05 AM Joe Walsh, Chairman and CEO PRODUCT INNOVATION – 9:45 AM Ryan Cantor, Chief Product Officer REIMAGINING THE CUSTOMER EXPERIENCE – 10:10 AM Grant Freeman, Chief Customer Officer FINANCIAL SUMMARY – 10:30 AM Paul Rouse, Chief Financial Officer KJ Christopher, Vice President – Treasury, Tax & Corporate Development Q&A – 10:50 AM ANALYSIS & INVESTOR DAY AGENDA
Q&A Short Q&A (5 min) between speakers 20 min Q&A with all presenters at conclusion of presentation. SUBMIT QUESTIONS Via Investor Relations at InvestorDay@thryv.com NON-GAAP Reconciliations for financials provided and posted on investor.thryv.com ANALYSIS & INVESTOR DAY HOUSEKEEPING CAMERON LESSARD
WELCOME JOE WALSH
2020s: The Decade of SMB SaaS Marketing Services – Our Predictable Cash Generator Why Thryv Will Win Thryv’s “Unfair” Sales Advantage (It’s Growing) Who We Serve – Our Ideal Client The Future – Our Trajectory
We are a team fiercely devoted to enabling local, independent businesses.
We believe in free enterprise, a diverse dynamic economy and the American dream of owning a successful business.
We believe consumers deserve choices beyond chains and global ecommerce.
We believe devotion to supporting independent business owners is an urgent, worthy and noble calling.
HARDIN PAINTING COMPANY STAN HARDIN PATH TO 2032 2020S: THE DECADE OF SMB SAAS
PATH TO 2032 DECADE OF ENTERPRISE SAAS 2020s 2010s
PATH TO 2032 DECADE OF SMB SAAS 2020s 2010s
Consumers Are Trained SMBs Are Ready Tools Are Better PATH TO 2032 WHY IS THIS MEGA-TREND HAPPENING NOW?
PATH TO 2032 SMB SAAS ADOPTION 77% 64% ONE PROVIDER 64% want to buy from one provider. MULTIPLE SAAS APPS 77% of of SMBs need a platform with all tools in one place. Decision Analyst, Q1 2022, SMB SaaS Adoption Study.
PATH TO 2032 MARKETING SERVICES Our Predictable Cash Generator
$880M ESTIMATED REVENUE 35% ESTIMATED ADJUSTED EBITDA MARGIN 2022E REVENUE MARKETING SERVICES SHIFT FROM PRINT TO DIGITAL
MARKETING SERVICES SHIFT FROM PRINT TO DIGITAL 2032E REVENUE $100M ESTIMATED REVENUE 35+% ESTIMATED ADJUSTED EBITDA MARGIN
TOTAL 2021REFERENCES 7.4B MARKETING SERVICES YELLOW PAGES & IYP ANNUAL U.S. REFERENCES 2001-2021 (In Billions) -4% CAGR DIGITAL 2021REFERENCES 4.3B PRINT 2021REFERENCES 3.1B Source: Localogy, February 2022.
UNICORN AIR & HEAT MIKE TAMBS PATH TO 2032 WHY THRYV WILL WIN
WHY THRYV WILL WIN SERVICE AS A DIFFERENTIATOR
WHY THRYV WILL WIN KEY BENEFITS TO SMB Drives Growth Saves Time/Get Organized Freedom/Mobility
WHY THRYV WILL WIN WIN, KEEP & GROW HIGH QUALITY BUSINESS EASIER FOR CONSUMER BETTER SEO INTEROPERABILITY OFFICE IN YOUR POCKET BETTER GMB RANKINGS (SEO) REPEAT BUSINESS MORE REFERRALS SEAMLESS SOLUTION
WHY THRYV WILL WIN INTEROPERABILITY
LIFETIME VALUE CUSTOMER WHY THRYV WILL WIN WE MAKE THE CONSUMER EXPERIENCE BETTER FINDS SMB Via Website/GMB MAKES APPOINTMENT Via Thryv Calendar GETS REMINDER Via Thryv Scheduler RECEIVES DOCUMENTS/ ESTIMATES/INVOICES Via Thryv Document Sharing MAKES PAYMENT Via ThryvPay. Credit Card Stored For Future MAKES REFERRALS Via Thryv Texting Referral Tool GETS REMINDER Automated Future Business Offers RETRIEVE HISTORY Info Stored Of All Interactions CONSUMER
2021 2022 2023 2024 2025 WHY THRYV WILL WIN EVOLVING & EXPANDING
WHY THRYV WILL WIN DEVELOPMENT OF MULTIPLE CENTERS EASIER TO USE/COMPARTMENTALIZE COST EFFECTIVE GREAT OPPORTUNITY FOR NDR EXPANSION
PATH TO 2032 THRYV’S “UNFAIR” SALES ADVANTAGE (It’s Growing)
$1.5BGENERATED CASH 400KCLIENTS UNFAIR SALES ADVANTAGE ZOOs
INBOUND PARTNER FRANCHISE UNFAIR SALES ADVANTAGE EXPANDING & MATURING SALES CHANNELS NEW ACQUISITION CHANNELS LOCAL CHANNELS INSIDE OUTSIDE Large base of existing marketing services customers for prospecting (Zoos). TEAM SELLING
UNFAIR SALES ADVANTAGE GROWTH PRODUCT LED GROWTH SALES DRIVEN GROWTH
PRODUCT LED GROWTH UNFAIR SALES ADVANTAGE GROWTH SALES DRIVEN GROWTH
UNFAIR SALES ADVANTAGE CLIENT ADORED - INDUSTRY RECOGNIZED
THE BEAUTY MARK MEDICAL SPA CARA VAIRO PATH TO 2032 WHO WE SERVE Our Ideal Client
WHO WE SERVE CORE TARGET CUSTOMERS 2-50 Employees Service-based Businesses Established Businesses ~$500K In Revenue
INTERNATIONAL GROWTH OPPORTUNITY
4M SMBs IN THE U.S. WE CAN POTENTIALLY SERVE. TOTAL SMBs THRYV TAM Each dot represents 1M SMBs Source: SBA.gov, US. Census Bureau and company estimation based on Ideal Client Profile (ICP).
8M SMBs WORLDWIDE WE CAN POTENTIALLY SERVE. TOTAL SMBs THRYV TAM Each dot represents 1M SMBs Source: SBA.gov, U.S. Census Bureau, EU Nations: European Commission, United Kingdom: House of Commons, Canada: Innovation, Science and Economic Development Canada, and company estimation based on Ideal Client Profile (IDC).
PATH TO 2032 THE FUTUREOur Trajectory KC CREDIT GURU ASHLEY DEKE
THE FUTURE TRAJECTORY SAAS REVENUES Revenue Opportunity 2022E 2027* 2032* $207M $1B $4B *Management targets. Note: Midpoint of 2022E SaaS revenue guidance range (March 10, 2022).
150K SUBSCRIBERS $1B REVENUE 20% ADJUSTED EBITDA MARGIN 75% SAAS REVENUE OF CONSOLIDATED REVENUE 5 YEAR SAAS TARGETS 75% GROSSMARGIN 100% NET DOLLAR RETENTION Go-to-Market Expansion Product Innovation Macro Trend SMBs Moving To Cloud CATALYSTS
500K SUBSCRIBERS $4B REVENUE >20% ADJUSTED EBITDA MARGIN 10 YEAR SAAS TARGETS Go-to-Market Expansion Product Innovation Macro Trend SMBs Moving To Cloud CATALYSTS >95% SAAS REVENUE OF CONSOLIDATED REVENUE >75% GROSSMARGIN >100% NET DOLLAR RETENTION
Engagement Net Revenue Retention Product Led Growth Subscriber Growth & Referrals Scaled ARPU THE FUTURE HOW DO WE GET TO THRYV 2032 By maintaining consistent execution on our core drivers...
PRODUCT INNOVATION RYAN CANTOR ©2022 Thryv, Inc. All Rights Reserved.
GREEN TECH CLEANING DERRICK GREEN PRODUCT INNOVATION TODAY’S SMALL BUSINESS
WEB CHAT FACEBOOK PAGE DOCUMENTS/SIGNATURES SPREADSHEET EMAIL PAYMENTS PRODUCT INNOVATION TODAY’S SMALL BUSINESS ACCOUNTING EMAIL MARKETING
We continue to focus our innovation on meeting SMBs where they are. Empowering SMBs to adopt a scalable platform, without the disruption. PRODUCT INNOVATION REDUCING FRICTION
Slowly reel them in to a robust end-to-end platform built for growing small businesses. PRODUCT INNOVATION REDUCING FRICTION
- MORE PRODUCT INNOVATION REDUCING FRICTION
PRODUCT INNOVATION SMB HIERARCHY OF NEEDS SELF-ACTUALIZATION GROWTH ORDER COMMUNICATION FINANCIAL
Q3 2019 Q1 2022E PRODUCT INNOVATION PAYMENT GROWTH Over $1 Billion In SMB Payments Run Through Thryv Annually $1B Annualized Payment based on end of the quarter.
Q3 2019 Q1 2022E ONLINE PAYMENTS OFFLINE PAYMENTS PRODUCT INNOVATION PAYMENT GROWTH Significant Offline Payments Creates Continued Opportunity For Growth OPPORTUNITY $1B Annualized Payment based on end of the quarter.
Live + Email + One-way SMS + Two-Way SMS + Text Enabled Landline + Injecting Leads from all Marketing Services Products + Web Chat + Facebook Messenger + Instagram Messenger + Google Messenger Coming Soon PRODUCT INNOVATION CENTRALIZED INBOX
PRODUCT INNOVATION CONVERSATIONS GROWTH Thryv Is Enabling 5.6M SMB-to-Customer Conversations Per Year Q1 2020 Q1 2022 ANNUALIZED CUSTOMER CONVERSATIONS ANNUALIZED BUSINESS CONVERSATIONS 5.6M Annualized Conversations based on end of the quarter.
PRODUCT INNOVATION SOLVING THE PROBLEM Across The Customer Journey NAVIGATE FINANCIAL AID ROBERT ROGGERIO
DILLION LAWN SERVICE DALTON DILLION
PRODUCT INNOVATION ThryvPay GROWTH Annualized Payment Volume Q4 2020 Q1 2022 Q4 2027* $3B $101M $7M *Management target.
PRODUCT INNOVATION EVOLVING & EXPANDING 2022 Planned Improvements ThryvPay branded hardware ThryvPay branded Visa Card, called ThryvPay Money Buy now, pay later International expansion
LOGOS/LOCATIONS Q1 2020 85 Q1 2021 160 Q1 2022* 450 Multi-location Operating Platform *Management target. 2027* 10,000+
PRODUCT INNOVATION EVOLVING & EXPANDING Thryv Everything an SMB needs to run their day-to-day business and deliver an exceptional customer experience.
2021 2H-2022 2023 2024 2025 PRODUCT INNOVATION EVOLVING & EXPANDING
MARKETING CENTER PRODUCT INNOVATION MARKETING CENTER A Centralized place to support all the marketing efforts of an SMB. CRM TRAFFIC/ANALYTICS MULTI-CHANNEL MEDIA CAMPAIGNS MARKETING TOOLS
PRODUCT INNOVATION MARKETING CENTER Accurately informing small business owners about how their CRM customers interact with them online.
THE END-TO-END SMALL BUSINESS PLATFORM 2021 2H-2022 2023 2024 2025 PRODUCT INNOVATION OUR FUTURE
REIMAGINING THE CUSTOMER EXPERIENCE GRANT FREEMAN ©2022 Thryv, Inc. All Rights Reserved.
REIMAGINING THE CUSTOMER EXPERIENCE DIVA DOGG GROOMING RONNIE WOLVERTON
REIMAGINING THE CUSTOMER EXPERIENCE CLIENT JOURNEY HAIR BY SIERRA SIERRA SMITH
LEAD REIMAGINING THE CUSTOMER EXPERIENCE CLIENT JOURNEY SALE ONBOARDING GROWTH & ACCOUNT MANAGEMENT
EDERY CHIROPRACTIC DR. GABRIEL EDERY REIMAGINING THE CUSTOMER EXPERIENCE ACQUISITION
REIMAGINING THE CUSTOMER EXPERIENCE ACQUISITION TEAM SELLING DEMAND GEN SOFTWARE SALES TEAM
UNDERSTAND THE IMPACT IDENTIFY THE PROBLEM SOLVE THE PROBLEM REIMAGINING THE CUSTOMER EXPERIENCE ACQUISITION – SALES PROCESS
REIMAGINING THE CUSTOMER EXPERIENCE RETENTION &ENGAGEMENT GENCO FLOORCOVERING, INC. JUSTIN ALBERTSON
GROWTH & ACCOUNT MANAGEMENT ONBOARDING REIMAGINING THE CUSTOMER EXPERIENCE RETENTION
ENGAGE CUSTOMER AS A NORTH STAR REIMAGINING THE CUSTOMER EXPERIENCE RETENTION GROWTH & ACCOUNT MANAGEMENT ONBOARDING TIME TO FIRST VALUE (TTFV) SERVICE AS A DIFFERENTIATOR UNDERSTANDING & SOLVING THEIR PROBLEM SOLVING ADDITIONAL PROBLEMS OVER TIME LEADS TO RETENTION & GROWTH
REIMAGINING THE CUSTOMER EXPERIENCE THE JOURNEY WORKS
LEAD REIMAGINING THE CUSTOMER EXPERIENCE CLIENT JOURNEY Net Promoter Score (NPS) SALE ONBOARDING GROWTH & ACCOUNT MANAGEMENT FEB 2020 FEB 2021 +72 +79 FEB 2020 FEB 2021 +84 +82 FEB 2020 FEB 2021 +62 +93
67% 72% REIMAGINING THE CUSTOMER EXPERIENCE CORE FEATURE USAGE JAN 2021 DEC 2021
REIMAGINING THE CUSTOMER EXPERIENCE DAILY ACTIVE USER GROWTH JAN 2021 DEC 2021 Increased 27%
REIMAGINING THE CUSTOMER EXPERIENCE SEASONED CHURN JAN 2021 DEC 2021 2.0% 1.5%
REIMAGINING THE CUSTOMER EXPERIENCE SEASONED NET DOLLAR RETENTION (NDR) JAN 2021 DEC 2021 90% 94%
20 Q3 2021 REIMAGINING THE CUSTOMER EXPERIENCE RELATIONSHIP NET PROMOTER SCORE (NPS) 8 Q3 2020
DIVA DOGG GROOMING RONNIE WOLVERTON REIMAGINING THE CUSTOMER EXPERIENCE DIVA DOGG GROOMINGTIMELINE
HOMEGARAGE 2018 STARTED IN THEIR GARAGE WEBSITE POST-IT NOTES AMANDACSP
2019 UPGRADING PACKAGE CLIENT PORTAL SOCIAL MEDIA WEBSITE CRM CALENDAR/SCHEDULER DOCUMENTS REDUCED NO SHOWS
2020 EXPANDING PACKAGE PAYMENTS CLIENT PORTAL SOCIAL MEDIA WEBSITE CRM CALENDAR/SCHEDULER DOCUMENTS JOT.FORM PACKAGES & COUPONS EMAIL & SMS MARKETING MOBILE COVID-19
2021 EXPANDING BUSINESS SOCIAL MEDIA JOT FORM PACKAGES & COUPONS EMAIL & SMS MARKETING ESS THRYVPAY REFERRAL CRM CALENDAR/SCHEDULER DOCUMENTS CLIENT PORTAL WEBSITE
REIMAGINING THE CUSTOMER EXPERIENCE DIVA DOGG – CLIENTS 2018 2021 100+/- 4,600
REIMAGINING THE CUSTOMER EXPERIENCE DIVA DOGG – CONSISTENTLY INCREASING SPEND 2018 - 2021 7x INCREASE IN SPEND
FINANCIAL SUMMARY PAUL ROUSE ©2022 Thryv, Inc. All Rights Reserved.
EBITDA GROWTH FREE CASH FLOW GROWTH REVENUEGROWTH REINVESTMENT IN GROWTH PRODUCT INNOVATION SUBSCRIBER GROWTH INTERNATIONAL EXPANSION M&A STAKEHOLDER VALUE CREATION FINANCIAL SUMMARY THRYV POSITIONED TO CREATE LONG-TERM STAKEHOLDER VALUE
MARKETING SERVICES Predictable Profit Stream Efficient Cross-sell Motion - Our “Zoo” SAAS Fast-growing SMB Platform At Scale Expanding Internationally FINANCIAL SUMMARY THRYV DIFFERENTIATED MODEL
FINANCIAL SUMMARY MARKETING SERVICES 3D PRINT EVERYTHING MICHAEL LYNN
FINANCIAL SUMMARY TOTAL MARKETING SERVICES High sustained EBITDA margins Variable cost structure Consistent predictable billing trends Leverage cash flow generation, resources and 400k captive customer base Highly complementary for seamless cross-sell opportunities (1/3 of SaaS) Direct referrals drives additional 1/3 new-new SaaS clients
$200M FINANCIAL SUMMARY TOTAL MARKETING SERVICES High Sustained Adjusted EBITDA Margins
FINANCIAL SUMMARY PRINT YELLOW PAGES (PYP) Lengthening Directory Life TRANSITION 18-MONTH PUBLICATION CYCLES IN 2022 ENHANCES FORWARD CASH FLOW VISIBILITY IMPROVES UNIT ECONOMICS FREES UP SALES REP TIME TO FOCUS ON SAAS
MASTER IT MEDIA MAGGIE CAREY FINANCIAL SUMMARY SAAS Provide exceptional client value proposition creating a flywheel that will continue to drive durable growth.
FINANCIAL SUMMARY THE FUTURE Repositioned For Growth Early Success: Captive client base Experimenting down-market Refocused upmarket with product fit SMB industry tailwinds with targeted growth investments Note: Midpoint of 2022E SaaS revenue guidance range (established March 10, 2022).
Q1 2018 Q4 2021 $204 FINANCIAL SUMMARY QUARTERLY ARPU GROWTH Up-market Focus Accelerating Annual Spend $351 ~$2,500 ~$4,000 Product roadmap creating more revenue/expansion opportunities. Monetization team driving upgrade motion. Melt-up from ICP focus and lower-value tier churn abating. ~$4,000 annual spend with significant headroom in market. ARPU ANNUAL SPEND
SUBSCRIBER GROWTH ARPU GROWTH FINANCIAL SUMMARY SAAS GROWTH IN FY21 Balanced Subscriber Growth & ARPU Expansion 2021
SUBSCRIBER GROWTH ARPU GROWTH FINANCIAL SUMMARY SAAS GROWTH IN FY22 Balanced Subscriber Growth & ARPU Expansion 2022E Note: Projected FY 2022 Growth.
FINANCIAL SUMMARY SUBSCRIBER COUNT GROWTH Expect Double-Digit Growth In FY22 Robust sales and onboarding motion. Delivering faster time-to-value. Exceptional engagement and world-class SMB client retention. Added growth levers in Thryv Australia and Vivial – our ”zoos”. Double-Digit Growth
FINANCIAL SUMMARY FOCUS ON PROFITABILITY SaaS Segment Adjusted Gross Margin Improvement 75% 2027* 64% 2021 Favorable mix shift to SaaS Platform will be a driver of Adjusted Gross Margin Improvement driven by product innovation Roll-out of unique Thryv Centers Thryv Add-on revenue Carries lower gross margins, whereas the Thryv Platform has Adjusted Gross Margin ~70%. *Management target.
2021 2022E 2027* REVENUE $171M $206M to $208M $1B ADJUSTED GROSS MARGIN 64% >66% 75% ADJUSTED EBITDA MARGIN -12% -10% to -12% 20% FINANCIAL SUMMARY SAAS GUIDANCE & FUTURE GOALS Note: 2022E Revenue and EBITDA guidance range (established March 10, 2022). *Management target. Includes Domestic and International SaaS.
TREASURY, TAX & CORPORATE DEVELOPMENT KJ CHRISTOPHER ©2022 Thryv, Inc. All Rights Reserved.
FINANCIAL SUMMARY M&A TRACK RECORD History of synergy-rich acquisitions at advantageous valuations (EV/EBITDA).
YP Holdings Acquired ~2.0x EV/EBITDA Created nation-wide platform Unlocked hundreds of millions in synergies Sensis Holdings Acquired ~2.0x Access to Australian market 40% EBITDA Margins FINANCIAL SUMMARY M&A TRACK RECORD History of synergy-rich acquisitions at advantageous valuations (EV/EBITDA). Note: Acquisition valuations measured on a post-synergy basis. Vivial Holdings Acquired ~2.0x Expands national footprint Access to 25,000 digital clients
FINANCIAL SUMMARY HISTORY OF DEBT MANAGEMENT Delivered $1.5 Billion in cash flow since 2016. Debt Leverage Ratio History of utilizing free cash flow to deliver value. Well below covenant cap of 3.0x. Repaid >$1B of debt and returned $500mm to shareholders since 2016. Modestly levered-up to pursue strategic actions. 1.4x $548MM
APPENDIX ©2022 Thryv, Inc. All Rights Reserved.
Note: 2022E Revenue and EBITDA guidance range (established March 10, 2022). Q1 2022 FY 2022 MANAGEMENT COMMENTARY TOTAL SAAS REVENUE $47.5 to $47.7 Million $206 to $208 Million Company expects 20% to 22% growth for FY22 EBITDA $12 to $13 Million Loss $21 to $25 Million Loss Company expects FY22 Total SaaS EBITDA margin in range of -10% to -12%, similar to FY21 Strategic investments to support engineering, product development, GTM efforts and product innovation roadmap APPENDIX 1ST QUARTER & FY 2022 SAAS OUTLOOK Company Reiterates Guidance For FY22
*Includes Domestic and International Revenue. Note: 2022E Revenue and EBITDA guidance range (established March 10, 2022). APPENDIX FY 2022 MARKETING SERVICES OUTLOOK Company Reiterates Guidance For FY22 FY 2022 MANAGEMENT COMMENTARY TOTAL MARKETING SERVICES* $870 to $890 Million Q1: Range of $238 to $240 Million Q2: Range of $248 to $250 Million Q3: Range of $192 to $200 Million Q4: Range of $192 to $200 Million EBITDA $305 to $312 Million Company expects EBITDA margins of ~35% for FY22
$ IN THOUSANDS Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 Q2-21 Q3-21 Q4-21 FY20 FY21 Net Income (loss) $ 28,102 $ 11,464 $ (145) $ 109,800 $ 36,506 $ 24,359 $ 35,624 $ 5,088 $ 149,221 $ 101,577 Interest expense 19,930 18,012 15,609 14,988 15,672 19,170 16,546 14,986 68,539 66,374 Income tax expense (benefit) 13,409 21,164 (24,250) (118,306) 11,809 8,112 13,802 (986) (107,983) 32,737 Dep. and amort. expense 37,823 37,606 35,454 35,640 19,718 29,908 31,049 24,798 146,523 105,47 Restructuring and integration exp. 9,845 7,347 6,710 4,557 9,234 3,489 2,312 3,109 28,459 18,145 Transaction costs 6,534 3,232 4,913 6,320 10,546 5,440 3,987 5,086 20,999 25,059 Stock-based comp. (benefit) exp. (6,064) 580 1,289 1,300 1,971 1,921 2,340 1,862 (2,895) 8,094 Other components of net periodic pension cost (benefit) 201 936 30,175 10,924 (453) (272) (273) (13,831) 42,236 (14,829) Loss (gain) on remeasurement of indemnification asset 3,801 617 (540) 1,565 (844) (404) 1,247 5,443 (1) Impairment charges 98 18,132 1,184 5,497 3,611 — — 24,911 3,611 Other (900) (955) (1,105) (654) (70) 1,859 (2,624) 5,119 (3,614) 4,283 Adjusted EBITDA $ 112,779 $ 118,135 $ 69,294 $ 71,631 $ 104,933 $ 96,753 $ 102,359 $ 46,478 $ 371,839 $ 350,523 APPENDIX NON-GAAP FINANCIAL RECONCILIATION *Figures may not foot due to rounding.
APPENDIX SEGMENT INFORMATION $ IN THOUSANDS MARKETING SERVICES SAAS THRYV INTERNATIONAL FY21 Revenue $797,493 $170,498 $145,391 $1,113,382 Gross profit $540,064 $104,746 $60,529 $705,339 Plus: Depreciation and amortization expense 15,706 4,972 32,555 53,233 Stock-based compensation expense 313 67 — 380 Adjusted Gross Profit$556,083 $109,785 $93,084 $758,952 Gross Margin 67.7% 61.4% 41.6% 63.4% Adjusted Gross Margin 69.7% 64.4% 64.0% 68.2% Adjusted EBITDA $318,230 $(14,004) $46,297 $350,523 *Figures may not foot due to rounding.