Thryv (THRY) 11 Aug 212021 Q2 Earnings call transcript

Company Profile

Participants

Joe Walsh	Chief Executive Officer, President
Paul Rouse	Chief Financial Officer
Grant Freeman	Vice President of Client Success
KJ Christopher	AVP of IR, Treasury & Tax
Arjun Bhatia	William Blair
Scott Berg	Needham & Company
Rob Oliver	Baird
Zach Cummings	B. Riley Securities
Daniel Moore	CJS Securities

Call transcript

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good day ladies and gentlemen. Thank you for standing by and welcome to the Thryv's Q2 2021 Earnings Call. At this time all participants are in a listen-only mode. After the speaker's presentation there will be a question-and-answer session. [Operator Instructions]. conference recorded. today’s advised, be is being Please [Operator Instructions]. over going Christopher. hand conference to the to KJ I’m ahead. go Please

KJ Christopher

our Good morning, now welcome second second received everyone, and copy quarter quarter of management a and XXXX Thryv's XXXX discussion Walsh, Client Financial posted and President; Officer earnings on also results. Investor the investor.thryv.com. Officer; is By Executive of you Grant website at of With Rouse, Chief Chief release Vice me have which to should our today company's Success. this and Freeman Supplement, are President Joe Paul recorded

subject non-GAAP I with to questions the comments your will will obligation the for at some the like described uncertainties which Before of filings would that on on we useful company's With today's risks information of call to no the update some of you may the contain begin, release measures certain and investors. on on and to presented today's the and the relations like investor turn the would other believe posted provide introduction, investor.thryv.com. we call are GAAP to reference in to Also over SEC. information Joe remind those to forward-looking Walsh. to that earnings has statements. responses the Thryv I call. made statements will our financial be Reconciliation call, website speakers measures These

Joe Walsh

our welcome quarter and Thank earnings everyone to second you Good KJ. morning XXXX call.

game. we're big existing comes are it Total really able and glitches XX% know Zoom, critical you they my From of currently we field, the metrics, last have, as small an of of I’m many and up move how invest our product guidance, it us have on the it accelerating and set those small to career do the it tuned quarter and of Thryv always record take better retention short, the into enterprise users positioned as transforming I acquisition all community. within try against does the client and customer a manage they with a can concerns really roadmap constantly their they in that growth real a They just Facebook they should customers that they customers ahead business. our with powerful growth. use SMBs calls, in our they any seize them site are talk feeds channels, their year. to second are listen for well steps, SaaS will have and and appears happening mind and We by are been about this early it in the so SaaS business, of they lot the prior for There's but a where executing Thryv a or it together software that Our as these how in believe to introduced evaluating we I’m how have they in power we my to sales years. and taking join it's I’m doesn't cool, sense demonstrate that should still or first aspects have business. what their tool prepare clear do penetration year-over-year, call made other. decision good It opportunity. recorded SaaS now businesses. said. about where know highlighted Plus sales grew cloud. happening to businesses. to has point as you something the teach by that to but This is to with working what is job not strong local it in and feel any leap results not, that use at our are continued and is spent level much businesses accelerated talk that and do, of that the client There SMBs is, demonstrates the able pretty do, lot. whole by responsibility To I Thryv we growth. in our strategy I revenues us well year-over-year the a pandemic and time each field, view, digital to new and to to customers but it. do a faith in now, modernize calls It’s to get begin and in I putting modernizing lot We

that guiding part All of the and seeing of why seeing continue of levels such what’s why you're user of the part high product, part you're to fall. is improvement in and engagement churn

my and up their So finish comments, are with to progress a in difference. that's and we're To grow making making they big and trusting us lot organize as businesses business. a those clients opening local look of modernize

our of we quarterly reflected in that this strong results All is morning. announced this

overall business solid year. in challenging acceleration billings in revenue comparison The raising progress, was we're and experienced by the last performance as of in to QX environment a business driven addition this we the Given an quarter, in result strong guide. of easier,

channels medium in versus We double this about all were percent are last that hit a high where of we hit sales you remind expect performing year. and recently traditional as new half our Our that's same time the teens term. of overall we SaaS sales to our force, I’ll of well. about sales

hit as you'll our continue And lows. of sales. percentage record grow that churn to a So see

and that to feeling a continuing we're value product. really bring our feels so dial churn something and makes We and have time paying are to down, good difference staying, that's using big that good think continuing customers to to and onboarding in the we

use in rise, retention active QX, dollar a these and metrics We of showing using then, them an on to in significant continues teams in core year-over-year with net got how customers, to [Inaudible], the users. strength points really our clients gains features attribute to the engagement daily focused digit $XXX double upward continues teaching a Our year-over-year prioritization engagement. and XX%. the increased increase; of to and of trajectory. as We're weekly product. XX percentage working we've ARPU people

So progress overall, great in period. last this

to our Next, of VP Grant I'd like introduce Freeman, Client Success.

Grant Freeman

Joe. Thanks,

businesses, we SaaS term know You value years, to our two delivering the relationships key with over delivered long is the last to focusing the experience We on really we have small clients. know on quickly. focused

QX engagement expanding efforts their quickly, value time We have are having spend. time first to and attitude, deepening left no-client over led intensely and These their focused short behind a a engaging on net clients XXXX the in improvement churn down year quarters and of X% last last a a from of score to promoter monthly X.X% XXXX. XXX% for SaaS of QX over of three

right Engagement selling sales how targeting SaaS. sales Our we of could focus our train to software to felt be a North with team is We Star clients. and approach teams for traditional all starts sell. on prospects using engaged experts. Initially we we

solve. clients it uncover our that However, our They on impact through sold with the their platform has platform. learning solve client one made when receive SaaS service with on this sold keep active a shows demo business much sales them can of and gate. problem will is business, team analysis out having custom understand They that sales in Thryv via it's the then to we pivoted of Data team more the prospects sell simple. approach, XX% engaged right the software The software experts Clients or more only experts our and basis. also we and approach client trying decision Thryv software to a and work that problem. a how weekly daily selling teams using Thryv demonstrate are work they the highly to of a have

onboarding, often clients place. do much, it we where our the solving led effort During pivoted. problem could to platform the And focused quite too first now shared Thryv purchase time that our we in all we business things after frankly the and stay on that the initial all share

case a for assigned the Our of client to starting team; configuring solved specialist transactional year-to-date platform a Thryv client's Thryv coaching NPS begin by our to process the them use and issue. have software it's their solve to we for the Once our use that software they onboarding purchase, then them partner. support And are score led success plus-XX. problem our the onboarding

business small a modernizing a know process. is You

active efforts in our course software improvement usage our more better. users the We've of year-over-year. culminated XX% issues. monthly As seen such, but business opportunities their even this clients, an have over looking for than clients time. daily This by on active year-over-year by operations software platform These business partner can will success the client the to focus to deepening engagement leads various to solve improve how be used demonstrating their in help increase XX% in

seven available support XX a days week. day, Our is team a hours

have In of addition, a blueprint we complete tech orchestrated touches.

improving, and of differentiator to and success The serving software our like what full will clients believe For efforts content, deepening a small push those be understanding our don't. and in designed few is a engage focused need example, platform. investment award notifications, engagement engagement on emails strategically when to and make ensure client that with Joe going further just our we I what delivered moment. and medium sales continued are the uses. it, remain is of they to We post platform catered a to lead winning highlight sized built wins to on business. perpetually All clients they

to as user that, back to So over deliver. we functionality of can our Joe. turn And as constantly experience the I'm well going we improve the with it software,

Joe Walsh

NPS give Thank really value done you, you in just just of the team steadily the Grant that that some good declining in see job scores churn. could here have our his delivering They've on focusing clients can and statistically Grant. and and and to pause I risen thoughts. a

We've Thryv so We've we satisfaction, Obviously, been talk engagement, on we're of already company, just core for a take good a So piping is product a recently. and Australia. that minute that sales. a Sensis I our now beginning some going that to see acquisition. customers very to training acquisition using on, had together the Australian client us got thanks want it. consider some we’ve really about real few and localizing as client for made And strength was Grant.

up, build. expectations definitely will but straight is this ’XX a story I people this it Now beginning want don't ramp is ’XX, to that to get going and

We are look be come to of on it but marketing. product doing ’XX for ’XX, and market to a story in that work and now, belts on on a More local unfolds. that, with lot that and as

continuing it's ThryvPay. payment We I think nicely recently, just for that put that transaction five I In of build the able number We're processes sort it’s pretty second million nicely. know there $XX and ThryvPay you average Switzerland. Another use to number to think we're well first very the premium on $XXX, with should one. size for We platform, the announced June the impressive. volume pleased area currently actually in is mentioned to still are surpassed platform the and so developing everything progress Thryv quarter, new app, ThryvPay that's our the and be place, like there. whatever like very us, platform, and standalone which over is making you one moved use like one and on We became payment into ThryvPay

use not job, doing have there feel lot choice even are to else. really a of we So And like out honest, to look, let's where be a good a tool payment software fact we're customers tools that something impressive. their I But use and being that number to you popular selected one sometimes as with we're businesses. is the the is think force that that small there

have that, for and Rouse the Paul. get Paul take with let's results Paul through So financial us the quarter. to

Paul Rouse

Joe. Thank you,

to, share a Joe and As excited the alluded our it's results you. to are start to year with strong been we

U.S. turn SaaS. segment Okay, let's with now business starting to the

of was $XX.X increase XX% year-over-year. Second quarter SaaS revenue XXXX an million,

billings. of billings quarter The million, which result the pandemic Second SaaS an adjustments XX% were second a increase billings year-over-year. increase suppressed $XX.X XXXX, we of quarter of SaaS is in in SaaS issued

second quarter Second $XXX, a was compared $XXX XXXX. when in to year-over-year of SaaS the XX% quarter significant increase ARPU

was basis improvement point a and point quarter XX X.X%, year-over-year, a Second XX churn SaaS improvement basis sequentially.

of Grand shifting and user. low This and record Joe As an engaged to focus dramatic a earlier, for monthly a to result ideal this improvement client alluded more a our is churn. is profile

marketing services. Moving over to

$XXX.X was of decrease XX% million, quarter Second year-over-year. revenue a

a second year-over-year. The million $XXX.X decrease were marketing of services quarter XX% billings

give to with website. insight cycle is providing of steady consistent calls, accounting second Relations an our our consistent available is on As the our XX month metric which billings and provided on print directors. lumpy performance. are U.S. operational we segment, the investor data to is show billings our previous will The operational Investor a into be better investors Services in very basis Marketing shown decline additional our life in given supplement quarter and This

$XX.X dollars, acquisition million, a Thryv On revenue in revenue International quarter $XX Second in revenue basis, Thryv million. reduction a Australian measured Australian was International was accounting. which result million a as reflects of reported $XX.X

on to profitability business. now the Turning consolidated

Second points driven adjusted gross the margin decrease decrease was The decline gross quarter a margin the by second XXXX. of was basis quarter segment. adjusted our from revenue in XX% to when services primarily compared XXX in marketing of

total Second $XX.X XX%. EBITDA was margin quarter resulting total of EBITDA adjusted adjusted in a million,

quarter of adjusted at came came EBITDA their International margin margin as price related and purchase Marketing U.S. Thryv Second in adjustment to EBITDA Services result XX% a at in accounting. XX%

our B the in million Term quarter. second Finally, Loan we repaid in $XX

priority repayment, allocation was we progress. making feel for year we are our capital on previously As and focus the debt to good communicated,

Okay.

the update guidance, with U.S. let's segments. starting Now

Given revenue to raising million implying year-over-year $XXX the U.S., SaaS to are XX%. growth our range we a to million, guidance in momentum business, our continued of $XXX XX% XXXX

For million. U.S. our revenue range are XXXX Services, guidance raising to to Marketing million $XXX $XXX we

U.S. years on earnings the consistent Marketing an annual basis. margins previous on mentioned will calls, EBITDA be As prior services with

primarily For our engineering, as are do continued sales marketing. SaaS, we compression expect we result in margin EBITDA making a and investments of

turn maintaining guidance on additional the over quarter I'll Please our International, for IR For we our website back Joe. call investors the to supplement Thryv remainder of information. see are second our for year. posted the now

Joe Walsh

Thank you, Paul.

our did so the we making guidance with of increased As and because see we're we can progress you product.

software marketplace. acknowledged of where ago been that year product selling is The were we XX in months getting streets we're better. and Our is ahead a or it's the ago,

adoption are among Crowd small It's and who this gave ratings is business; recommend from to Capterra best us easiest the those to software. easiest GX user use exciting overall setup business; support; recently that likely up for functionality and and user; Just higher people by overall higher and only accolades. people small sighted some pretty give as business small were easiest administrative the most and using reviews. We can

and of proud for we're second type engagement. Products Best progress shortlisted SaaS SaaS for really we're making of Awards also the in for think Service, show we that year; the So those We've the that they been CRM. Customer

big in takes of happening what's stabilize magazine many, here. XXXX, sales sighed as sales We know our force a pride in. volume for powerful We acknowledging beginning Russell entered. and force, again this have included companies is sell and marketplace the benefits to obviously the it's just just a for company Power best we've That's to something were really which the year. XX So additional one and many the Selling that you the has drive us

still about taking we're excited the So effect is place, full that. but

small Some much and the starting we up. startups is to We we've help conglobating helping of our that for partnership not feel year, sponsors and that businesses this had a the other Company, few like a entrepreneurship initiatives was we new America, last did well want very on done during MasterCard, but that there. message Intuit, Thryv also good only Charitable ADP which up, for with other Launchpad certainly our market. mentioning COVID. you wave guess and wrap very we COVID a the I'll the foundation, really world Thryv fourth everybody progress year. performed concern the of to by for remind making in so the over just worst of I the I It's are

base retail much And and don't entertainment in that's through service market. of businesses. travel dining less it. in and We high trucked we really be tends Our our end have customer just sort as based to right and

things, even an are we eye pretty we'll we on on bullish how we're resilient get be a you know certainly to things while concerned do, pretty if challenging. proved keeping So year. think and little We last

let that, to over me operator. the So with questions, call turn just so

Operator

[Operator Instructions].

line question Blair. Bhatia first the from Our William Arjun comes of with

Arjun Bhatia

improving retention maybe for would bit and the growth Perfect! churn line, is but if love Thank in great on on you down. Grant one the as on he's rate the little acceleration. the rates results, the and dig to net congrats on coming more well and a Joe I this

or actually an the drivers enough to base? you've that organization can follow-up success to active do can increase client that more you that If customer that is there weekly proportion of overview give the that you invested your active just users still and us that client you feel versus daily just then there, in on team, success of monthly in maybe and do those are are maybe

Joe Walsh

Thanks Arjun, question. that's a great

we They of our a and And review was new a into weren’t of done. that growing essentially EBITDA lighted know this to some meeting, it dive board SaaS margins also so software additional hired money. You we They were was a making just December green that did of year. then business last themselves. a our thing, enough digit and breakeven investing given kind assembled Board were conclusion made those September reinvest in We X little closer Gartner run some instead to and thorough deep a licensed we of the with our dollars. double

And the implementing engineering. year’s we'd priorities and so I'd that out we how as say plan engineering use at were a money We've lot that going for time, on. we've a of this added been And it laid talent. that

executives talented and to on the and big call. of begin our one that the led people has product to wasn't see improvement was most So one just our he's team, experience the and other areas and that to that them But client Grant begun to in marketing. get it's I'd say important time we're roadmap Freeman the at the map, It was to and muscle lately. very build, very really instant of going our products accelerate. us beginning by hire

him it and December So to phones we the but bit it, and like hit start I'm big of for a all hit Zoom’s time a to they talk team. about so time had powerful wasn't little a people before long, train helping. X these taken the let long it build sudden and It’s actually, him going he on a for

eclipse So we Grant just and consistently because full and are really to did. And and they on full done to come now. really let's asked whole his actually thing to the bringing from down. usage of power really the beginning feel I them my I down focused experience the okay, for team, also about, is, asked want him churn I've gig it, now, commend now and that beginning they've And building on to continuing it's they’ve brunt next whole done, work It’s and just to sort expectations as the you client monetization.

can Grant, the bit So how a CX you amplify approaching little activity? we're

Grant Freeman

Yes, Joe. absolutely

as first I'd onboard definitely thing So, the we progress investment we're we get increase more hiring that say we’ll as from seeing the training the already is that year results and into some and like the process. likely that to and continue staff

things I to there's are that think a mention. couple of important

onboarding. The first initial one looking is at

You and and that very a their that course lot trying initial fast the problem there and during for your the that as simple take that's we've initial the that initial means feel to they we a has like client can focus, of that what others impact now value. twelve the time a this hey for. solved there's success been having problem over come have z staying that that in then they that and the achieving Thryv in and software such the x, and right onboarding, problem business, and are clients understanding until team ways our is tweaked first to in y truly singular do business listen, industry of advantage you, last problem is know more solved, saying, And we've solve months after having to their already very during onboarding on initial the for

was a purpose very, very for obviously combination So engagement positive and that imprints over their the shared in right today. on is having then impact that churn that I of now, the deepening software and really a them our was doing sole think it's getting that's adept what time team and at initially

that or I your know question So there's follow-up? answers a don't if if

Arjun Bhatia

XXs to be very that's right, just additional going would, How no, forward certainly where that rate, opportunities both right? this I then we sequential But for think And nice the you and return about for the about you where maybe are a retention point think low No, how room good you where can we improve a to Joe. base we're – Is terms continue the churn there the that helpful. feel pretty in metric better know in do net rate retention metric. at? improvement for or see it's and the one get at in within you of that

Joe Walsh

very too I've up a remember I the quicker little where and might. that about people about before would thought I feel come than has hopped that good it we or it at told it's progress get I'll retention. actually revenue

We small with enterprise businesses. are is working not This software.

beyond to bit product and on, tiny that we initiatives has drive continue spends roadmap and because lift high think just the product maybe We've base we low, even and we the working XXX% have to with not can with. the big it nice revenue never that. way be more the That's really ARPU, over revenue something. If But XXX%, to the tight all we're of have deal keep a keep going and here, corporations dealing where keep selling with or to that we're to we department I to I that working those. engagement we then retention that retention resources us from So some and got grow client said are go will give into can coming. just department time thought could blockbuster us, each client opportunities our that money churn

think again, want way work of pleased, medium our all off quickly, have because there's than we are we bit you. promise little I really But happening of think to But So if but almost honest I a anything tank I'm can it you and be in with to where here I'm at that say don't what's if it we to way and SMBs. so very progress, surprised tips term said ARPU dealing I more the we look tend the are with the that, to there. I'll you the more in sort XXX.

Arjun Bhatia

me noticed expanded Wonderful! offerings I I your you this That's can. for to one free quarter. great if hear. And last

I think there you I customers small what on the to among maybe having your a seeing app digitize are that generator and can was having What I those funnel that seeing new new invoice use, the out – tools into tools launched free a are to maybe some look from free in that you free versions some businesses. have solutions that know what available hear on impact payment impact but has are to other market? acquisition. in these the would you the out their love just of customer you're that of free market as what also top

Joe Walsh

Yes.

to them that interested use. can business, and and their paying by to online is we at find trying sort do to there can improving get some automating in out their online business, that are who nine we provide find organic to improve find how can or either one portions tools people free somebody So, allow Google of people better time a

and are way in who got who we capturing about interested people raised and that, And improve, sort of process so people hand, around help we're modernizing every thinking are we businesses improving them and their sitting of sitting doing teams their help which can in small business. around, have of the

into And and their and some, our of Thryv paying become not way come work all through customers. them funnel

small or too Some are new. too

some they not just ready. are keep small I we've of client think ideal about our profile our you ICP, folks how be and know of kind helping really, additional where our tools certainly us organic funnel But various of cost lot can me, line. talked acquisition too into a and in excuse businesses these are our bringing

Arjun Bhatia

helpful. That's questions very for again you quarter. Thank taking congrats Perfect! on the the and guys

Joe Walsh

Thanks Arjun.

Operator

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

Scott Berg

increase? the thanks had quarter great and accelerating the increase a wanted taking and we larger not around on I much shift continual Congrats just a good my think to up questions. ThryvPay everyone. should a How sure for that nice that about puts the increased SaaS at how to is the in quarter, start takes driving versus I the Hi step-up. ARPU guess obviously with customers. that quarter

Joe Walsh

Okay.

there's a lot So, to it. mean pieces of I

people, HIPAA We we a to have version of Compliant have it’s an upcharge people have and buying additional Thryv. seeds,

to it's a don't there, are really to switching and been of taking some have base. services fit things it it, like with fifth help client of social of We managed our that has get kind going half in I ThryvPay sell that of the year, different a crawl, excited in We to option inside client just ThryvPay We're of it. expectations which incredible in from exceeded the run. walk, people posts we're little and base outside sort component you kind mean, ThryvPay baby selected want gone first steps ahead we ourselves. the the around is But of it's all that of with big about. that. so the premium. We're base, a slower client

that's are So of some of so Yes, components. those the big a it. yeah, part

Scott Berg

where a cohorts then in And we And plus minus several we’re maybe legacy time legacy that period for see I SaaS in bouncing customers? or periods. metrics do still client some the little those consistent we Are in your get year-over-year of the of smaller? from around year-over-year that until can first Excellent! still you customers migrating guess increased evolution are think to where those you in metric? growth larger kind of client

Joe Walsh

like mouse moving of through Yes, the think kind of cohort a definitely that still snake. legacy – is

out completely sure, it I it wonderful not think makes for it's team of to done his the that such and pretty a snake it's still down churn forward. moving bringing through move But yet. easy Grant job have

double think that number can our sticking than of term the medium subscriber more we that double guided we have we So we're in base that. or and to

of So remind call it. It's When lucky. machine got the go force started, now really of that we go big friends. to gigantic to, are and we the feel talk building comfortable. a market kind zoo, talk typically and giant total we're definitely I'll people you, sales to this I addressable we go get could a group we just to we them. had them ready

making really just we're – So good trying though with coming activities. go increase We're its percentage have build higher progress. making methodically a those of Those to and our we success great didn't kind quarter revenue, them, it. new the pretty software with much cookies. every We're a now, from companies expanding get the challenges, have of to building channels we're and all that machine machine of

So I guess in you're question. believe future, like of see declines not We in surprise model grow quarter a of say it don't the bit a to we any answered more. I have kind I base. work that can do we little your it's to guess to your We there. trying client go it’s expect or backwards one that, we flat something where our summary couldn't but don't

it expect begin and forward. We to march

Scott Berg

pronounced I Then in metrics think it strong or the and other me, backdrop, In a slightly were accelerating the business weather SaaS last that question side, in obviously the was you. acceleration for comp was thank pretty extremely there. Excellent! that business quarter, weaker

QX. in second a you guiding you in what Your what our bit higher saw both hesitation are or macro revenues flat than the the the maybe QX. second guess in a that level, guidance on QX revenues of half second from bit on currently little in experienced revenues, little the seeing quarter for imply and effectively half pause gives SaaS you I

Joe Walsh

asking guidance. like see Well company. quarters to black didn't to it We were to just like look, We're thought ever. if new we clouds. couple we it anybody the I raise to in you're a teens it why was high appropriate up in don't want a like or of just not – deliver, want a we the telegraph We disappoint more. move the move some we're to twenty. of us raised we wall even trying giant really in. We're front It into brick way something that. seemed our We public low right go. to It’s guess

vacation customers little reps you there. a a some time yellow off year a and one taken hadn't you are hadn't even there's our time really lot a bit first of almost are the of half feeling, a for time look, off. of You And our know off some and summer, to know only out who taken who marketplace a taking live taking this any

So we've take that much had but some I fun. pick softer can their weeks nothing livers off, have particularly this so time people mean money they can summer, only that only so and concerned I'm and much about.

to going to getting work. not concerned overly be back they're that. about I’m So

an on part. caution just it's of abundance I our So think

Just that don't you trying sure I’m to disappoint if make guys, honest. we

Scott Berg

fantastic this for on Thanks quarter. questions. again Congrats Excellent! taking the

Joe Walsh

Thank you.

Operator

The next comes Rob question from Oliver of with line Baird. the

Rob Oliver

I can of you ads. wanted XX% customer customers of the to the conversion, saw what base quarter? that And that in think have little guys mentioned, then there ask your a guys about which my I of about bit Great! terms way you to that right of conversions question. Thanks insight some into, talk of you zoo Joe, taking really this terms think big that a Is still you competitors. about in differentiation the is from terms in

Joe Walsh

are even last see or the of they are maybe and much are to And much over who lot and those more engaging now out really I when heisman gave Yes, because continuing getting different, big to we're us at about that. came the the them three know couple it. thanks to way that it's talk so talked interested cloud? us there we we meaning more of wait Cloud? ago You ready. people the a years ready They weren't and and of we're were years. cloud, to What’s thought they for businesses a some four just do the think

are dynamic that a they and they here call what our really a mostly think not. penetration and that marketplace very for are and be And business do important with we further you continuing close hit selling The base a community. now point With coming non-customers them, through every So then, I two-thirds we businesses sales there'll continued out we're And sure. have of clients. make deep our I'm the about non-zoo, that around further answer them. they from want it's are their getting to asked the to force have relationship in you advisors and is, do max? dynamic. and point. them there, is These have penetrate are But deepening done, are referrals through, that into we

So this customers Is good those where Fred, is And really sort them. a referring they Saturday for them can from. my buddy our job good Can And really golf spreading and through virally are morning sales friend help doing a you that's and guys. customer customer job of got are you are saying, coming Spence Thryv out? it's like lot Company. with are a doing those a there of the with out serving help who's our it’s happy they and

customers and of So that They're or it's reaching a acquiring force, through customers just that our though be of base sales of and our seems picking of for even happy installed advertising coming installed not customers, happy up. an that base to I'm lot us we're an new activities. any to it's report through virally marketing

Rob Oliver

helpful Great! Scott And a to Paul, really follow-up just you for then color. well. as That's question. Thanks Maybe one Berg’s Joe.

look we like but out, time that look mix? really of client some paying to does are like at for know also some think decline, numbers churn little it because you maybe so profile profile it ARPU great how to too in bit strategy like just of that maybe off churn those customers customer and terms a you It sounds customers get know want rightfully guys should lift same guys. churn non-ideal over the sounds now in Joe that? those churning still really of the which the still and still the ideal at the you likely still guys You I’m is excited, are the both as Thanks of there you again, to curious doesn't us is see. about

Joe Walsh

Paul?

Paul Rouse

direct like Joe to improving. just Well, a job You it’s answer since explained question not and is Grant how sure directly that doing know, explained. I'm not financial a number, better but we're churn

the I state we're sort experiencing. getting steady of So think churn we're a to with

going model keep I’d to that range. out, it you So in were if

Rob Oliver

Great!

Grant Freeman

that think completely are gone hop it, side and we we're back should reiterate, that, not growth all the trying the Again, we're growth and flattish we're days I of powerful a us people of of I listening doing had don't the going was I that this I the the be and new Yeah wouldn't and backwards a just I'll on we sold rule passed tend you for just think just forward. enough accelerating things not just equation, of call on I that have models going of their but There's can lots completely we're in are at Paul, you some that point. momentum being just that maybe quarter, backwards momentum. know too surprised progress on but out making in if going minute, see to subscribers us to us I forward we see anymore. a know to going There to much with know before. fight I this behind because were off – stuff tractor had that we It's there us. the

Rob Oliver

help. the all appreciate Thanks guys. I

Joe Walsh

You're welcome.

Operator

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

Zach Cummings

on could few questions. new results well. on could Joe, side just update you the to morning. give Good about the and acquisition of strong you're a franchise curious channels. I'm what seeing in talk for if resellers drivers Yeah regards Congrats my the as other taking you maybe hi! thanks an your us and of

Joe Walsh

earlier identify lot glad of biggest free know be the to. we we lot to of That's all and us we traffic and that are side, some follow Well, it online driving piece machine to help you Sure, cookie a that. and who customers interested tools, is inbound the its of out we Obviously send tools were prospects. asked our business. messages and about in of the to have identifying around a modernizing their

we're the So reps demo year. coming us, those about sales the an down and group and leads development and interested come we've it's and people of market feel scaling throughout good too about. they ever to of that the a the excited part funnel know And to SDRs now which been in steadily you are lot really bringing larger

a goes therefore And so and bigger obviously it's results it’s bigger by. as machine time yielding

to gives going us we're continue would of be to that that's kind many process we're many a that to top the that's push way so and of funnel get many a to have confidence just, There's working of say convert what to forward. our So so we're you able center. buy I and and and in just at that's part so those the and math. demo

with naturally done three so franchise. I'm last sales had that escalators has franchises we contract they and by Now on. one them. contracts, they've year, really a as and bunch going typically franchise base And wins from to The They've little team early contracts in added sign over grown about to jump fun had of XX%, the just year fact, this year that has typically well. multi-year

one. developed top that sits They this you the success. Thryv. We our part we on bullish love it's really just we're on tool for So Hub, them of think big be that of going to a know

of slow going of So that's they and look really It it's so get really, engaged really, build, of takes because But on. cycle. once lot out sales a it. like. growth long bullish closed, It's about and a typically come group to these get one a high there's to in, months what steady of a kind really testing we

partner it reseller figured that and we we're to great not. I as we're I'd out channel, kicking the we’re to the you there. that at and don't like On side, good report news ass, have a tell

do, just selling perfect just working on is to there. and kind been that who our got sales and refining progress channel, we to to we’ve model reseller And how out seeing of it are out of figure been more and but has of marketing kind We our there. ideal slower work

sputtering far may, be we're with out us. along leg to at going, could doing and And great so that have I think tell initiatives be one. it I you bit. as that it's to well growth you; love can we're a of figured it not But I'd everything. honest little for if got we some we've get with just another think I big we So

Zach Cummings

additional appreciate that. I Understood. That's helpful. color really the around

your mean going in forward. a In see I'm in think in of ads nice continued to in average here growth monthly I ARPU, growth terms sense more driving maybe QX. the trying somewhere should how range. subscriptions here, get believe the really increase terms versus is I to again we about client of that the of just $XXX ARPU

Joe Walsh

So I perspective. you give of would mean, I just kind a

about them. get the just You HubSpot, you a $XX,XXX tend over to from some less from work guys they they're are we They sophisticated those They small but $XX,XXX fairly businesses, typically year and get none all small know customers you businesses. follow with know customer each and $X,XXX.

stuff us, and additional think that So see trust we needs. business. things us with time that so so got going of grow. roadmap there's the that ARPU we and enjoy they we on, to willing are journey and additional Facebook – can many are modernizing are they know we you developing and to, that think that those expect needs, And allow are to we've that we many quite would talk with group we think a little to robust on of do their and like have doing you're going an I meet other other more They customers us meet quite we to our working of a us, to and I we spend scope to continue are I that meet more they needs. they mean with with they us,

those at math the yet out, early you out, really our up. which is far is we're as not even our our popular Some growth you've seller. sales bringing the But pointed seen of on unit, most falling just which ARPU do-it-yourself some dramatic of smaller midpoint is so

been down definitely by held it's So that.

going modeling it. I So how that That's would you're if to up. keep I we're expect, would modeling, ARPU model

Zach Cummings

question that. appreciate I Paul, And just one and me. Understood final from

for In adjustment should thing of we the terms trying a normalize Thryv also should back half should a margin from and sense of QX that revenue purchase get perspective a International? just more how here the just year? I'm for Sensis, the in think to of as we accounting think that from that in of a one-time about

Paul Rouse

a It fourth That's affect about it’s third, think the not to exactly quarter. one how it, will time.

Zach Cummings

promising Understood. one around business. there. the guess like traction early side the I sounds some It final one Sensis just And of

about I we the the should something to I know still XX% how incremental business? think EBITDA So assume profile margin mean, that just area? you're around making investments adjusted fair for but there,

Paul Rouse

– think I fair, yeah, that's I think yes.

Zach Cummings

Understood. on my the congrats and taking questions for Well, strong thanks results. again all

Joe Walsh

Thank you.

Operator

from comes question the Your CJS line last Daniel of Moore with Securities.

Daniel Moore

Maybe to year. or remainder taking marketing two questions services, flexibility terms in there? investments, for results Any year? in a but the slight Obviously you've closer to ramp got plenty thoughts the on for Thank remainder you maybe the given loss you one for the to of of momentum. the congrats breakeven of or SaaS just do strong obviously of margins expectations the still expect and run for the SaaS

Joe Walsh

on. Well, you're right

scrapped your sorry. how questions investments the out, off. those to are make you perfect. We're buds I decision to my [Technical Can have deploy have we've they hear pleased big I year paying say really, a this ear money me? was with think and and Difficulty] It really You

Daniel Moore

We can now.

That’s We’re yup. back, alright.

Joe Walsh

long last on. Anyway, only your pods good. really It's right so The you know. question is

this SaaS EBITDA we know time was – business into You margin our digit year were trucking double last know you the land.

businesses it where and you they later, use a we make to have fast working for invest as to at on. it board closer board loss underscore ability a slip honesty, money the you you a kind But not right our plan accelerate has of into and and SaaS going nine growth, had previously we decision going it really do it for tempting. to been on around and to it little than actually its have a more that, zero tempted we're we think know a the get big moment. push can little is this So There’s that ready we now a be run it little further make that's kicking very I some big and the are and And are a and we're so. put and tempted ten a are I quite cash land sort you assuming but this push had business and Anyway, bit let inside. to it previously we But breakeven with really as today business, envelope of eight slightly told you that's the if push, not growth do grab for loss. want tempted around spell tiny with thought at a growth and made know the run on its faster, I juices the six, later. or very because run to know transparent a and to own months, it to it loss, We going is the out to helpful. loss. a feeling growth small to to huge thing months way to process is out grow it choice in a hope off, later of there we tell be lot initiatives our I they're of you to and it. know are new And That’s software board making red, making as I at months, it'll so make this paying meeting business money little and well. their the a let guidance and

Daniel Moore

to expectation No, but been trying world, this the in on how at ten the just then do get – there's you the ARPU, know opportunity think on usage? set. and thousand sense that by better, offering makes all about an the And will on questions best do medium or really pricing? see your driven good, just pricing ARPU term You be mix stage raise to in you

Joe Walsh

no now price. raise the right to plans We have

they've finally like the homework you you Wow! they bought solutions, out they This done we ideal solutions. story. add if look know If really they're take these us. the their up and back great come hear client, to value. guess we it I all like finally really point tell Thryv, We and where – really our a such You them our to we’re the When there and and were we to went say feel is really this real a that would I pricing like if they and time. we there, you out all options, equal at and we them are. different a-la-carte find point mean,

You'd Thryv. to have to spend month a about $X,XXX to $X,XXX to try equal

small So businesses our so developing we things with mean think different a drive planning of add-on that come usage We lift, plan. At the sales, are. that really, or month. a there's discussion. you we've we we and like now that time, same right current on through be ARPU price heavy Nothing like that know up, where possible, feels know you still map. offerings, additional don't all value $XXX that for $XXX, have increase that’s one and $XXX, in lot really coming price wouldn't mind fees, a our I a road more We're we good prices, a had like that's them there. like – the are to that additional our saying these

customers and of who the us for and better price. just same board mean around. getting Thryv kick – our persistently been right has few now, with keeps our that better better. of our their kind up One But a have we XXx years, members brings for think Thryv it of It gotten I better and

better have how. tell little or them and fact, we these we Thryv just In then got communications here, you why

got just right high that's board member to and again, the right think or here value raises meeting kind wow have his at them an we're hand hope We strategy, one shouldn’t churn and have So really some but pricing says, really of trying price engagement. we that with low we every now, least regime. annual we and up

that's of So now I board about how hear talked thinking the room, about we're right in it. it’s kind but

Daniel Moore

perfect. That's

itself evident, to added accounting Lastly, we purchase So think the for to I This number the it's adjustment, consolidated, back deferred not EBITDA get that's... correct? just was that price jump, before Paul.

Joe Walsh

Right.

Daniel Moore

on around for a expectations cash just your flow generation cash the curious then year? free half And are back basis, the what of

Paul Rouse

purchase it to with it? it your you back, first reported price mute was not so I’ll that's It's our add think back accounting, not I on question, Hey, want in an answer on is if answered our when to about way. to And number. this I – added so guess I get

addition at debt for looking likely range you're the pay If debt half to down $XX $XX an of of we'll the million million. in repayment, second

Daniel Moore

and congrats momentum. it, on okay. color for Thank Got you the again all the

Joe Walsh

Thank you.

Operator

at call over turn And the comments. Walsh time back closing to this I'll Joe for

Joe Walsh

on lot very you Thank I We last tease and right what really some They really story got were much, all appreciate questions. now, think guys, engagement. the is illuminate out of thanks coming good together for working good progress We're really we're we've like with momentum, feel a making years the few good I a Listen helped and pleased. usage been the bit. and little it.

way to bring happier more them this are. see using features happy the to continuing priorities of even be light more seems or our more the the That I about makes is to even and stay engaged. seems it on Trying kind clients it engagement. half a to and for It focused to back of of up our user they become just help think year. doggedly to referrals, go us great us just way it more

out have going of we The the under the about and XX%-ish Didn’t Sensis Sensis SaaS is the base, well. is well that, of un-clouded it's that become bringing I cloud, think customers. of the adoption that questions going the of the cloud in of you over clients XXX,XXX and a ’XX ongoing know ’XX there really really it's but missionary integration customers; have really course and expect on driving they sort within work. sort lot will

in market. coming in has Australia. NPS there, So are on make a have and satisfaction already have from will been category XX,XXX great, customers that. subscribers We're really about some us that leader scores Thryv excited X,XXX, The We training the well. gone engagements that's additional be great, and

maybe up, light bit little to plans. beginning of a that's even ahead So

really pleased more that; later. excited we're and So come to about

we're capital in the making just paying You a down allocation we're know we're know back and half. mentioned away just and going second great to progress. Paul you the for then pay debt, pounded how really much here that moment,

down So you know paying debt us. been has big for a deal

we soon. So you to anyway, you. it again support. We your are for Thank excited update interest and really thanks appreciate your everybody and

Operator

call That the Thank you, ladies concludes today. gentlemen. and for

disconnect. You Good may bye! now

We use cookies on this site to provide a more responsive and personalized service. Continuing to browse, clicking I Agree, or closing this banner indicates agreement. See our Cookie Policy for more information.