THRY - Earnings call transcript Q2 2022

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Operator

Good day. My name is Savannah and I will be your conference operator for today. At this time, I would like to welcome everyone to the Thryv Second Quarter 2022 Earnings Conference Call. Today’s conference is being recorded. [Operator Instructions] Thank you. like the now Cameron over would Lessard. I to conference turn to And go Please ahead.

Cameron Lessard

joining today's Paul me us discuss for Chief and you Thank on Grant Officer; Financial quarter are Walsh, Freeman, financial Officer. Chief call Executive Thryv's Officer; conference XXXX results. Chief today's With and on Customer Joe Chairman Rouse, second to call

you release Before we financial a today's press announcing call, second before results. begin, I'd that like we shortly to XXXX our remind quarter issued

Reconciliation in on which described obligation of Joe Walsh. be information non-GAAP will provide useful questions website. will Investor QX future note like a the the measures over to the measures I release on the certain some with comments of may risks We on our filings turn our of some performance on Please update to has call information other presented results today's published also I can to forward-looking made SEC. reference of back uncertainties and statements Thryv call. for call, the company. subject the operations on investor.thryv.com. would at Presentation to that towards our and are to no GAAP introduction, that about These believe to will quarterly and would Also website listeners financial the statements presentation. and of the the today’s regarding that information those investors. posted remind With Relations call speakers contain be the Investor and company's guidance your found the we like the the to responses earnings

Joe Walsh

all the half release priorities quarter's call we guidance joining measures. performance exceeded made strategic for to our everyone quarter performance progress our you've Thank of the tremendous that We've first financial results delivered you, Cameron enabled strong the our and seen for which today. outstanding second on our our and Hopefully, 'XX. in thanks and press this

XX% year result, for raising year-over-year, the highest last years. We in figure million over history said SaaS. $XX.X guidance. strongest full SaaS of Thryv the we've for was this had subscribers, are this our We we're sales a year XX,XXX in Total and and SaaS growth up We marked revenue balance we growth of the in both quarterly As more would double-digit of up the couple quarter year a hit the with that ARPU XX% between subscriber quarter. growth. a have in

progress overdelivered of number in couple we overperformed We of also ability up process. some recruiting been through would happened made excellent some to acquisition. have developers in engineers React because We otherwise This picked our meaningfully we kind where of excellent that a Vivial a on SaaS. part adjusted of EBITDA on our hire --

So us that some saves money.

been efficient SaaS much We overall more with our also marketing efforts. have

loss in one of will show big so stories loss EBITDA And than Northstar, some before, I've focused the in the mentioned year. of high little million of the this on. with it's the We made of SaaS updated really to one a things Paul now narrow resilience we're our for spend continues that's most the a been SaaS initially big Marketing his active $XX less, million We've EBITDA in to to We less in to. $XX our the It's allowed would and Services margins. we that we our predictability gains guided remarks. invest provide need us year. thing users of the billings year, software believe to guidance will and thought

year, jump to quantum how a do in future. to we're that make we we've is this the so going on made think leading And a such indicator

Officer, Customer of some on our Chief with us. Freeman Grant And so you update to recent is those Grant? trends, engagement

Grant Freeman

Thank our update as platform. increase to we continue you morning, Joe the and made to on good excited you, progress today software with I'm clients our here everyone. be deepen to and their engagement

an that increase our in I'm As the we client pleased Northstar a I over half to XX% year. report seen engaged is have engaged first and the shared before, of users

Now the this ready first, by, the focusing implement that our has software they of to accomplished client, on been sure purchase. at making to selling right are point

deeper the tech time their them we the identified create customized that, and we and in clearly value. the of best-in-class want a is across ensuring help that we having our Next, they journey deploy encourage engagement software human that us. understand their additional experience, solve touches a entirety that deliver onboarding to on first to we business. And finally, problem impact problem with After

of who and great of establishments. client things have our base One ton to. is sell We a retail we don't the about restaurants

to Or are like contact if Our a have clients cavity mind that to probably any to businesses more plumbing the call dentists. find economic regardless you're plumber those comes are you that is a conditions. going tend to An resilient to of toothache, example always going marketplace. issue, you're you softening probably be who almost issue, or the needed. in these of have a still a We dental the demand if

demo purchase. so show Every primed the Now for they businesses a see where Thryv of we and growth. before prospect efficiencies accelerate their our also will solve them we customized can receives gain our problem way operate, these software, they modernizing being how as they platform

dive usage of the found we an noticed and motion low increase is yields help deeper businesses of churn. when is Thryv in needs higher We are that the dollars platform efficient engagement one fit for be more ensures It into things when Because data, the a that software features this tight. our SMB. of of have that this, we

their examples. help and calendars Let me ahead sure go are share a full. few businesses make We

We their invoicing his keep issue our while line. because understand A offer Thryv efficiently integrated in and them quickly crews with support. we coaching have XX/X entire customers help far working success It's our estimates a customer ensure more can and reduces scheduler our whether for offer estimates. impacted customers offer who no-shows. epoxy. quickly clients. many salon features of have chain than been roofing up can to differentiator show We've with this receiving scheduled Recently, paid garage gets to eliminate appointments, helping brainstormed beauty now tech been with also chain services. they and a Our at invoices generate onboarding our straight and completion clients then of and of run client existing faster. communicate balances is them to flow. pay to to for them key waiting that help to important company for revenue knows supply reminder owners to automated is and the more with been example CRM a them or sharing comes We garage by cases, We he of impacted the cleanouts that This goes for and cash and model. with Thryv's service clients We also busy which upon not outstanding Furthermore, needed if them was flooring that supply. is customers, requires that fees him bottom new supply and and save business. pay, great This team his allowed on provides our encouraged our supplies example tools, mind no epoxy which An shortages. estimating that and

day, focus at that business behind. We and we resolve experience during four attitude first be helps feedback the and days. have than onboarding, had those the of the XX tools. problem left engagement a own our that's We because small small clients. focusing industry the know better really productivity, to client customer the inspire our study the solving that for the no no A is businesses found five with businesses business who profitability them within on out cited software to different of coach small from should SMBs it we increased increased recent We get on owners shifted that succeed. main cloud-based among end And trying their that

investing a technology. their just a of in So, share about let you me quotes of experiences with couple with couple

the clients allowing All in many, our and receiving customers book more platform. product messages my dang categories confirmation that that’s to half these more us One efforts the culminate helping we more using follow-up their other just ever and calls numbers clients, to year. giving because to of. payments more to than service.” date Thryv in “No across aspects, I appointments business something own spectacular engagement our And realize for reminders client many board.” phone proud corresponding than the repetitive highest less staying potential They among reviews to them time are are they of sending Another they to people Thryv, spent Clients near have a “From very with have are they the succeed. churn low first shared, benefiting of said, staff, to one see

turn with to So me that, back Joe. let this over

Joe Walsh

Thank you, Grant.

You add-on more. forward contributed the do It's do that's going is engagement per and as how have the because to succeed, future. that revenue first our And going to the map ARPU, usage. an is and for time a the them a net they helping way those revenue and indicator as customer, customers engaged product on forward of your to of strong excellent we're to that customers become smooth they a value team retention find of sales also growing part we're road buy in forward And job in into more onboard to indicator future. going usage, our having those how to going a done as getting me tend big growing great

for are for you that. you thank So that appreciate guys that. enabling all Thank I doing. you

to our turn to Rouse, Paul? Next, I'd CFO. Paul like

Paul Rouse

Joe. you, Thank

total we be focus more the case international feel in which do modeling business. be we is year operations. and guidance this results the will SaaS This the domestic going on provided forward. and As Marketing important will total going a We are how and reminder, Services includes to both to start

Okay.

about talk business. SaaS second starting results, our Let's with quarter our

guidance this growth, increase per represents balance of between quarter. both ahead and Second SaaS client a was was spend range. increasing Annualized an XX% year-over-year. increase revenue Fueling in quarter the X% our and XX% year-over-year $XX.X was $X,XXX second total This million, for subscriber ARPU revenue of approximately quarter-over-quarter.

EBITDA better and adjusted our negative a Second $X.X was million quarter loss than SaaS outlook.

acquired efficient overperformance dollar in engineering and acquisition was in Vivial second we key quarter. said his channels. effective in the new acquisition reason was in retention particularly more the our to the Joe marketing Seasoned and talent remarks, XX% efforts, due for As net the

dollar with over remained in quarter. net churn this been seasoned represents reminder, have Monthly a clients one As year. stable that retention us for

over Moving Services. to Marketing

client assumed we for and revenue churn Vivial million the Second products original the as And expectations. digital higher revenue million better seen we for addition Vivial of The Services contributed quarter in of reason our Vivial. the first This and back $XX renewal the the work we to have quarter, to we success guidance. overperformance total our and not sales teams. stronger-than-anticipated client fact, of due a integrate acquired quarter. did Vivial $XXX.X happen. to in was revenue in Services Marketing ahead rates Marketing When level than was

Second in adjusted to adjusted quarter margin total Services due $XXX.X publication was a strong million, XX% an resulting EBITDA of print Marketing EBITDA quarter.

Vivial, many decline Services within been years. $XXX.X Second excluding year-over-year for has of consistent and XX% quarter expectations billings, Marketing our a total which million, was

be directories. Marketing in This reported additional Investor Services our operational very on investors show in our The consistent performance. basis, our decline providing is website. our an lumpier investor second shown our we the give to given quarter an and steady provided our insight Relations cycles on calls, available business is print better As of life will earnings to into which extended a in billings, presentation data accounting prior billings operational are metrics

our Turning profitability leverage consolidated and now to for business.

Second XX%. adjusted gross consolidated was margin quarter

EBITDA margin quarter adjusted of representing Second consolidated $XXX adjusted an million, was XX%. EBITDA

million debt quarter. in our $XXX.X Finally, net was position second the

second the well of facility X.Xx with quarter debt Xx. credit to our for accordance our net ratio below and EBITDA in leverage covenant Our is

Our pension obligation is now million. $XXX.X

discuss updated guidance let’s for XXXX. Now,

the the quarter range adjusted of million range expect to $XX.X in $X.X SaaS an of million loss million second million. total and in $X.X $XX.X EBITDA For to we revenue XXXX, the

are total For in of raising million guide full of range we revenue to our $XXX year-over-year. the representing XXXX, $XXX.X million, growth XX% year the SaaS of

outlook $XX guidance our loss to of EBITDA SaaS to million our of loss. of million updating are which is improvement range $XX $XX the million $XX previous an in million We

to in $XXX we are EBITDA range year Marketing our EBITDA for guide $XXX revenue the Services of full to an million in margin XXXX, the and total range raising raising million, the XX%. For million representing our of $XXX of $XXX million adjusted

Now back to you, Joe.

Joe Walsh

building a the on well. a as later centers the really direct outselling beta would Marketing before that Center a the have as product. play before year. role our comment is a experience the We Center. SaaS XX Well, the plan coming of hired over to the got doing Marketing in we Tami strategy customers Q&A. end limited items companies, with were to within our A the Officer. going Marketing Marketing rollout learned She category more that Cannizzaro of we strategy track out of out our working year. a Center We contact will with building teams working growth Center. in comes lot on Chief years' the go us few the We Thanks, to Paul. gone couple tech have in to now has proven And I record spring, wholesales a to space. the we rolled sales organization and Marketing leaders in wanted fact forward. pivotal We Tami

So start about how big some to a when and growth looking of and talk from you'll 'XX that want out come Center. about I to little the a debate beyond growth. in life see use. There's there see forward and we're centers Center market to to even Marketing cash time bit be speed Marketing a should people revenue much and additional growth

of We has is We're cash. company careful And the climate that that disciplined This this moment. stewards in. dog cash. we're Every are is the for its really with perfect day. really

XX with that We years. for XXX,XXX edge. accounts been have have a of average over The us big advantage standing on

results doesn't you our do are see that companies So a you And And There is the small The going our services year-to-date, happening business that provide These up air happen. vital more the and community. Services transition and in giant might it's resulting for customers. continuing basics. benefiting way. this why with are the you any in more a Marketing into big way has part That's those very conditioning our of and such to the This our -- their your are work. have in long-established the are to steady business or performs it's these And the customers doing company resilient. SaaS ability And because can conversation happen. it of zoo conversations see has to but slow where businesses ones to down conversions. isn't for given guidance Paul in to we're can really in we're well taking the pace year. stop That's how cloud. place following that's are speed it's going SaaS

turn let's that, with So to over Q&A. Operator? it

Operator

question Our Blair. Bhatia Instructions] [Operator first from come Arjun will with William

Arjun Bhatia

customers. pretty Perfect. platform with I have one kind that Obviously, you operating you you. can for this of is to Joe, be want the of have start system a broad maybe your benefits that

is you? as seeing something these more that As some on do to because the eliminate you’re Thryv be in talking starting future and spend are to you’re using? macro trends they anticipate Or will they point the that do solutions perhaps this customers may come they trust capabilities in of you have customers because environment, consolidate you you see that

Joe Walsh

there that multiple into how unwieldly so two the for somewhat there's my together we're Yes, first taped We a something they've goes there's go asking they have So now, were they're where some I Arjun, and And of to really years, staff some in that or and difficult And the that data out were find a unclouded, things in I interfaces integrated, and share working used in water. nothing bit that solutions? logging the your to question, more point on definitely the them all what to that. to and many doesn't toe still But and to on. with know isn't of complete call increasingly if put notes solutions couple back They've were on. because point in that I have train cloud get solutions of user had don't time. are or sticky we it's them more have of the forth. bringing customers cloud. different use The a the back almost done I'm different find we computer in introducing it's these. customers and the And one the beginning

come using now definitely very we with time, us. solutions us over people are So seeing that on point and are then consolidate with more

out of of the we marketplace One we used that the where are a Thryv, tools of positives in that is Thryv app app our lot have an offer inside there, commonly store.

a integration in full place. there's So already

and or say, already data the whatever. you seamlessly you I'm in I'm QuickBooks can if and already those using to already Contact, So We or Mailchimp, well, Constant using they look, Xero connect I'm just us come shares. MYOB work using

I'm So we using you one perfectly good problem, conversations to do the this and start. up get off find is we help works no of that comes sometimes say already a I'll that and

a As whether that or far feel happened. But it's might in I staff a we're that. do in trend. to -- drop say examples your to stronger where you're Thryv There's with seen point stories, certainly cut they time make definite they Thryv. costs, such labor they And solution, or like way massive could that's a business you're or more broad or I won't having you're true have to application. I do a efficient place is hiring if as looking a hard saving looking

Arjun Bhatia

one I That’s then it. Got can. if just more, very helpful. And

are motion motion, the this maybe XXX,XXX hey, decade. X/X, that’s In going you X/X, that forward, faster? try there have those that Marketing business keeping that still kind into of of and customers you in with is for you you there just to side? terms have sense base X/X to transition customer before Or more that coming the new acquisition mentioned -- software at lean end to been When a terms accounts framework acquisition your the you’ve your at pointed advantage that, you we’ll of that customer look of Services do you

Joe Walsh

doom we I this or and for and awful deeper gloom the the are these so And be market wanted far. actually I also are of X/X. running around how high going future actually going have losses we they I X/X. can That prospects to well are out would add, of right the We're tight, continuing -- to haven't there we're might to. that be funnel. as any to be that mean writing, is down some times of loss-making But may running have that all certainly X/X a X/X right out still I've that of where their seen curtailed through the just X/X, Arjun, go find scenarios stuff people companies that if some certainly us with minute, for SaaS and really some As now. say less aware, in option that got X/X, read would very, if coming us. Things this very that doomsday the to they something. competitive it have to into the would be of an Internet

also be that. may another all guide to could bad There may be be that a not some So just thing. outcome. good It

Arjun Bhatia

Perfect. Congrats guys. on quarter, the

Operator

will Berg with Our from come Scott Needham. next question

Scott Berg

in Joe off customer great the and on on quarter. wanted congrats Paul, growth I the to Joe, a quarter. start

pretty positive. subs was adds Your

customers to attract seeing plus know, you the you’re to size platform? or landing Are the Maybe types different able of maybe geographically. double-digits in the mentioned your something cadence You I of in don’t different of anything initial even customer, quarter. terms

Joe Walsh

little parse but try and so asked to answer hugely I'll you've the it. Not question, a bit

we've is and continue going to a engineers lot as our because more we and year say, now a had, innovate software. are, the got map faster And we faster than faster ago. We road

the things it or don't some the making tend they three, And also are of instead market. we're our having use, users I interoperable One maybe power XX. saying have tools to solving two skew of our they for things the users. easier is in mean power employees. of of I'm some And of more bit with a have doing the little software making we're other And to hundreds larger. that

business. and And so established a we are better becoming little better bit a for tool that bigger really

it's is And movement there so in a but happening would say customer upmarket I our subtle base. slight

business saying instead down they're write seven with bigger a to Now really chuck I'm being advisers that not we're trucks, chuck to getting our small of sense getting lot them more selection businesses what kind please is don't in are -- the of I'm is this two moved enterprise that's of because and making suited. us that a of little trucks, bit saying. targeted just and by

things think that I go a licenses within more that there's that So would say base. and And selling well with term longer more bodes for upward all movement I ever-so-slight upsell, it. seat the

a know, Our to to our larger ARPU XXX long-term to dollar a currently plan, net as kind bit we be retention drive you of and little with is where grow are. business than

Scott Berg

All right.

is So Moves that. Into of note Enterprise. Large title The I Thryv the my like

Joe Walsh

Thank you.

Scott Berg

question payments about growth basis, their valid thought a And like guess, Kidding, a payments think process how But And per into the But have about it’s the customer just customers asked I health businesses of seeing metric how Arjun know the payments business? invoices the or might about you which of to trending? ARPU you any kind are – stickier holistically, now? maybe vendors I trend I maybe general your to selling concerns customer own as of do the speak business. because I seeing think But maybe on around trends macro more don’t any on nice your the a think before about for is, if of there. the there’s know know about still a kind You’re then lot follow-up. software you becoming given in right obviously. business backdrop. smaller

Joe Walsh

XX at dollar that single I It's funny. little occurred automated see noon. -- noon. every at many onto my get the transactions single I amount. hours last for a It's what day report how see I every day it in Yes. pops phone can

and literally it Xth of so came slow along, like quiet I when down July will can everything down. And see

unbelievable. trend is You up can every see the the It's strongly in tiny road. us. little pebble Overall, for

more Our businesses. and payment more being by is adopted tool

the per and adoption rising month week, quickly. to pretty And So number that transacting growth. continuing month-over-month see we're that per week-over-week, is

more a And and perfect barometer on I the so keep because transactions. merchants adding more don't adding market have keep we

I'm it. not July Xth, like looking they say, People have when at whole of – things before soft. that I Xth off can But So to see Xth. just the I of was super took July, the like beginning took after the

numbers, You then it, it could can into in it coming transaction. payment just and up stayed see the just through volume the softened soft come in where see and it you payment everything and back

just was I people probably in just pick off. all, to taken just time the barometer continues That Rocketman, it’s was But steam. it think all a up say some all. I’d it on

Operator

next Our will CJS Moore come with from Instructions] Securities. [Operator question Daniel

Daniel Moore

net Maybe you’re growth new sticking where efforts that just verticalization any with success? accelerated the more SaaS seeing, out little we’re theme, and vertical if update customer a generally more perhaps you that on could within having standing bit your us

Joe Walsh

Well, our program continues. verticalization

tools There on We one kind the you and elements bought sort work that customize of and funnel We and Thryv them, the and process whole thing when Health, find Thryv of Thryv you the we are what is. your in you the and terms experience. vertical early of we find around out tune into need. those Same product there's verticals. -- you Legal. around Home, soon continue out you're slot to managers Thryv around we as as that And

continuing have lot of so those lot chiropractor more any Obviously, a we a which around one we're to continuing and the tuned seen can't engineering are get gradual with to services, And we've things say more I in not we're tend that whole just services on. That's it priorities. it's to verticals around big like verticals very lot around everything I have is a businesses. success car that doctor, that. only of dentist, and have a working the it. and change to well process. everything personal psychotherapist, say and to service everything personal around services home We just everything do in around leading. But services,

have a This to going definitely challenging about which not into resiliency luxury area. market of why optional it part we we I'm is go but our anything don't potentially services is So not good get we my strongest to because than or fixed. say tooth that is And in other really items. feel hurt, are that's

So -- really in. a who's have flowing in in hopes acquisition going base of that seen lot bringing of haven't penetrating we really, and I Vivial say customers I that's change made and well. really to but over those the that

trend last exactly you with guess, That we XX% seen. delighted would XX%, both. would lot And growth a quarter, of we're if were us, did I that. geez, and that So -- approach. ARPU for be, asking balanced guys the a one I think double-digit remember year that on we've we But say coming this better were you year, is your from we expansion, it'd be if you had

maybe sweet now. team hit we the spot of balance So the

Daniel Moore

to sort EBITDA, projected one expectations increased And for upgraded takes, working cash me. with more With year. remainder good. for the relation maybe free just flow of just of line they Have guide, maybe EBITDA the Very about updated capital in and talk the puts and in et – cetera?

Joe Walsh

want let to Paul? Paul make some I comments. him bring in and

Paul Rouse

with flow. Yes, you. Thank we’re the cash Yes. trend in free pretty happy

pretty nicely guidance. moving with around yes, so along that’s the So

Operator

Cummins next we And will Zach with take from Riley. question B. our

Zach Cummins

of on mean, the you Vivial like Congrats, since sort mentioned another any us to it’s here. acquisition? update Joe quarter and off can Joe, start I you on give seems strong it, here. It Paul a great

opportunity side? SaaS what and seen you is thus you’ve to the still sort what just So of available on far

Joe Walsh

I because some now almost figured and are it done well. really, that things a we're actually acquisition. a wasn't we the huge just past but or are want gone I huge integrate out integration in It's Vivial But executing. And quickly. really There was rolling to our all company hope out done. tense caution say Yes. to just that that. that have is we them all

surprised We've in pleasantly with a people. I'll In of up we've terms areas. been of couple the lot a people. excellent SaaS start opportunity, picked the of

right remarks into in it's people to mentioned days. great hunting excited And go. prepared whole to some picked our we Paul about. which took a to the success well. a where really us of the we're opened bringing on But up Thryv brought Vivial few in. the still were The go. It's transaction zoo the a of right There's happened having it They Thryv now, lot weeks at up more early think is We of to and kind their delighted referring to really just end it's things by May. And good of that picked get customers were functions January. how that group And going obviously, Services really a organized wing we from that side. just I'm software. Marketing And customers those And all came product beginning important I that of selling new that team at they're are. us. I advisers up we've surprise a to the are their nice most that at the we're engineers added kinds of that different us think with offerings picked relationships that brought good the over business Vivial large over

going beyond year, of really early out just it's coming we're still of pretty Vivial a the the not original I coming Media expect But well out into in customers for so as customer Dex footprint. year just that base. cohort, biting and on are old And that but customers

they'll Vivial for that of to time out the long footprint a coming think be come. I

source a strong So growth while. for a that for will be us of

Zach Cummins

you’ve now of about seems question your at pretty what those well. Understood. in hired It lead me. for with new new a since Can we has everything could And markets? to And be President gone you just like looking more Sensis final talk strategy? efforts, international entering terms

Joe Walsh

So Australia really plans The Thryv expectations. side our that has of all of all well. business our and gone outperformed has Services of Marketing

really of cash they So and and love that It's to a it's really, all the really culturally, stuff we a well. And rock. us it's been like like delivering as bit stable wanted. seem guys too. It's these EBITDA, we the to gone a

that. with happy we're So

of down got really NPS we Thryv And laid of very We incredible a great client incredible scores, brand we've strong did and SaaS from we've the of within were employee started. And we the chances our employees said the career successful it. careful their survey rebranded future the foundation. On we've in and really excited side awareness that the about its are recent that being engagement, with Australia, how Sensis. brand super company as

that And accelerating we there. kind growth good. look really -- then strong, just is It's of strong SaaS at when of beautifully and all we're seeing we quarter-over-quarter-over-quarter. uptake So

be be very and background, And kind a entered So, the for well us additional in for into I come. by flow our of who's from online-only way, that only, Caron, we in a for to in of will connected in Canadian coming And growth process. Canada. we pace is time in number additional sales that source up on of by growth think subscribers long our and that feathered Canada sales Thryv the We up Thryv Australia the a and Marie of at should steady ramp be build a we'll plans layering International, ramp which initially your online kind year, out Canada future models. a just entered Canada. working your Canada will we've of and Earlier had is growth this President and with small initiatives and -- announcing leader

And building to ready really to work plans you feel more of growth. it we're at now. that's of how see when I and our Canada that you're that. lego assume we again, kind that thinking or for sort zero as to you'll future growth. pleased then not your they'll can But our And on they'll I up. And and think we you and you're with into country about go, sustaining is each countries going that more or how have geography, other ramp pattern to and small layering overall -- quarter do of doing very 'XX, to start more I'm right announce in we have like can go contribute see or modeling and part other So geometric entries. the of going additional really, start

all in business available there's sort And there a at set of to in coming are we of billion get there's them, adoption advantage in And and SaaS of the getting of most work business. Australia while terms what other our Day that do businesses these behind you of early, marketing we're the to done up advantage, an along. to $X table. the are of eventually a of markets, that the small consideration pops You'll getting SaaS about Investor that feel going in $X the them -- now, X that feel a Thryv not like and Top here we've now possible choices of remember, first-mover We we software established. billion Right gave of like poll is SaaS because out U.S. if U.S.

a to – you Australia. look done do in in There be be we we’ve analogy can at we there markets. little what some for what of might other may an able So, bit

about begins international that, So growing as think to really – will be figure that’s be execute. briskly international, when just Marie you going to

Operator

question last come And Schulz Baird. Patrick our will from from

Patrick Schulz

So you’ve a And time? environment are XXX% main macro you more a little drivers behind can to talk retention in closer to your slowdown? little impacted dollar But these over push about efforts macro net metrics bit. ARPU? what And a the how the touched could be that on

Joe Walsh

bit some a direction. Yes. great It That's little been our question. bit. back quarter. It's -- a this a during mean, look, be not retention Sure. around change honest, big goes actually dollar has let's I bouncing net little of this

five like we getting be it's small -- We're which businesses, our you're very what down measure -- dealing a churn going to call When golf our been churn we're around X.X% at. that said, be or get of at know… And you much point. we before churn running a of that another X/XX season lower I've maybe we're kind down point that this have would flawless but get Could than the with quarters. par. Really, me now down tough asked two stable to guys score. core Our it's and we for seasoned has you

churn So emphasis even did just on of in five, that stable par. number a subscriber area. along for that six very new has We down seasoned integration really to to energy and and at were lot XX%. overdelivered into said we we earlier, I Vivial And of double-digits drive a amount acquisitions those. tremendous quarters, which, put on as core also We're around maybe been chugging those we try crossed in put the

the done very, happy has very So how on team that. with

the that little of there's One bit a is of a number. NDR bubble byproducts in

go comfortable a before customers to asked And and going we're SaaS end prepared functionality to ready I like be year have couple help the sophisticated we And day-to-day Marketing able or things. that more small them prepared that be building for haven't just our contributor 'XX. of things, cloud the to do use pausing that. can't able payroll capabilities, licenses to tools to We to them beneath there And and there'll smaller how they're utilities are there the some dollar sold customers small with buying to announced getting But we other into just rollouts that to use that that I'm guess being as growth, marketing that some and are are the force the we'll tools be them of net whole they mentioned our can adopt we to as question, of put their that more to so and it. customers, I center customer we I'm And are centers guess across to going announced great, able mentioned about add-ons simple some and more add-ons. Investor they're this things. ARPU we're because will simple other are into will cloud to planned. retention really I they're do do XX,XXX-plus will grow meaningful customers the by that sales strategy these business some these XXX%? big you at And we things coming we've offer functionality. for that Center but as choices a that's other this which very see essentially So adopt more their call centers seat strategy. we it contributor Day out as more have more I have be talk along them. of be to with also

map So we're customer. is X,XXX XXX%. net a about driving to our dollar little retention over really And a at just all road

a X,XXX a then local think established business. I and think time. And really see over rise that you'll I gradually in don't for to X,XXX burden that's huge

how of kind about that's thinking So we're it.

Operator

closing like I Joe the remarks. back question-and-answer now will over session. call that conclude for to Walsh today's would And turn to

Joe Walsh

Thanks, Savannah. that. Appreciate

for thank today you everybody listening. and So your attention

here through really business. next a desire gaining proud And going year. that quarter. going There's in to year looking And ahead the we've fairly vectors loss excited new of going we've to traction super that a we just really, know to we've are about And results got mentioned during questions really are what a for what's a follow being we momentum lot to We of on. next on solid I our and our us building be consider that minor a able are growth this some, have that profitability. path we're into of the spending. and of more out importantly, XXXX gives growth number that and as of good running sustain business. I without been EBITDA had investments that confidence a crazy lot SaaS starting we

ahead that see that we lot we as can a next don't brand-new actually this You investments. see adventures of we're And narrowing year, and year. look to brand-new

be and evident So to should to able that profitability that made we're to path I that we've and clear think the be with us. investments going harvest

the tapped I and very deal we're into think And very a center really business it. is business. of think So in stable run a have we mean is software the big we moving trend. that's we right cloud. We in the trend to SMB can sitting the small

are the of space company to that think, capital? of need software with And ton of a our don't to we're know throwing of our story they raise questions, need one capital. So that peer sort you cash. off We I familiar is of do those a that raise lot

are we self the chugging raise way go We of just can no plans We on forever, along cash. our generation capital. to own have

everybody. that that you, strong a with average have with relationship, think day, Having prove customers I we right? you -- XXX,XXX moment NPS every customer that years dog to it. has base on than a a XX like have So There's you for more we guess, this

got down or to go a a force coming. You've keep that that steady in paper. relationships the those it's going slow in back I with to speed that's And business adviser genie up back little to adopting going might the at people. mean revolution pace aren't is put happens Nobody seasoned but a bottle. People cloud the they're got to going way. which bit

think $XXX-plus We we enormous is pole positive. already position this opportunity company. substantial fully a are SaaS based to this million scaled quarter We as us have think really that a that's there we in business total into already scaled for that flow a a So global market. on been fully addressable cash tap

machine. small We are it's already making profit-making investments a but now

we enormous and this think there's very to an think low-risk a we is So upside. place invest that

you forward the much thank appreciate future. you very to following for So, and us. We Thanks. in look to talking it

Operator

may disconnect. you conference. Thank your today's conclude participation you now will for that And and

Thryv (THRY) 8 Aug 222022 Q2 Earnings call transcript