Earnings call transcript Q4 2022

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Operator

Ladies and gentlemen, good morning. My name is Abby, and I will be your conference operator today. At this time I would like to welcome everyone to Thryv Holding Incorporated Fourth Quarter and Full Year 2022 Earnings Conference Call. Today's call is being recorded. [Operator Instructions]. will of the Investor I Cameron over and Head Lessard, Relations. you now conference turn to Thank

You may begin.

Cameron Lessard

conference Thank you Thryv's earnings to to everyone. operator. Hello and fourth good quarter day Welcome call. XXXX

our Joe investor and Walsh, the and Rouse, be investor of Product presentation Financial Chief our today section. Chief on On and Cantor, A Chairman can Paul Ryan call website Officer; Officer. Chief the Executive and earnings @Thryv.com Officer; in are copy press found release

on to today's believe information to certain subject no made information the provide on and other IR our some the contain presented call. today's Some posted on we has looking described responses reference comments of for statements the to of website. speakers call Reconciliation of GAAP the and and Also those uncertainties filings will future our in your SEC. forward with are the which risks will Thryv update company. measures These results the measures on may to call, the questions the of will release useful be operations company's investors. financial statements obligation non-GAAP about and the earnings

like Walsh. would I the introduction, to turn Joe that With over call to

Joseph Walsh

We over increase the continued SaaS Good XX% efficiency for the grew full our results. ended ARPU improved the discuss quarter. Thryv. monthly joining the our at with subscribers tremendous of innovation year in And XXXX of results you Fourth XX,XXX, fourth of with XX% financial year-over-year XX% year. and was us morning, finished the release an Cameron. XX% call all and for accomplishment and SaaS center. just quarter thank revenue strong on today to year-over-year. product a grew year marketing SaaS quarter year

XXXX. a spends $X,XXX and year one ago compared now $X,XXX customer average Our $X,XXX to in year around

of the really product more buying product. the versions good more ARPU with progress and So higher we're buying and end making on customers using

year of ARPU call, growth I highlighted XX% Engagement for One goal growth. subscribers indicator earnings and forward, increased ago very going we've quarters. our we a balanced achieved more has durable SaaS for which consecutive year-over-year, targeting which our feel is on strong and three

platform their find Our stay paid. and Seasons clients world range, to which to communicate businesses, churn run mid flat be to Thryv and class. customers organized, in grow X% the using monthly to has consider remained we are the get

than a since growth, cut row EBITDA On as been the been driving bottom all EBITDA year we our guidance focused our efficient once significant quarters SaaS investment on cost costs. line, came The as not in three better for scale and a move has we We've This issued our past to ago. again, growth half almost by stage. we continue at is SaaS in expectations. loss profitable U.S.

a loss our is EBITDA Australia been profit internationally, for of producing on only after Canada. a selling is a one to top SaaS Australia, quarters, it's to six SaaS that expansion and report result I'm of turning regions. path our pleased

only losses takes it our from playbook And of goes there. new Once cash works. So these big digit to not stand single then country and a up we years feel flow really couple millions. are we a

we and us to continue So pay allows solid marketing will model move be which predictable billings, flow On we performance our down that forward. see debt. as services, in to generate very cash

Ryan? introduce Officer. to Next Chief like Ryan our Cantor, I'd Product up,

Ryan Cantor

Thank you, Joe.

continue We've product client invested growth a We've invested XXXX As conduct and in deliver every product both on we it clients better and and from robust research Thryv. to better and our to the current our know app Thryv to initiatives. hear experience to our led We value our future powerful our better this run accelerate small to The use. and previously deliver engineering to team to one roadmap all XXXX covered and in our day at grow in platform. of easy continue product to We've in is pole businesses and expand in ensure businesses Small UX to UI invested is remains position clients. to capabilities. fuel and to responsibly this an a business Thryv growing small but pace Thryv increased in accelerated meet engineering demand. needs these platform functionality growing Thryv

a and live product these strategy attract center periods. In of and we numerous solve decades a client their exciting center we us QX. launch while built an focused in of marketing presents services ground This year leveraging our clients a and marketing unveiled Marketing would to businesses tools of new rounds up and testing, existing business problems were wider array excited our into early XXXX, clients platform a to This of growing market. between past our new needs platform. have experience multiple to new modern center coming our with the to small our After to exciting the bridge move and additional in from allow center for the offering the future. on was development

year. our of To-date the center number marketing and enable a our reception and specific have that centers center have. apps users needs incredibly to the right the meet to results modular about positive. are We throughout growing pains metrics to client newest insights Thryv they underneath platform plan and been share Sitting customize been has strong additional our

improved by payment U.S. then those readers throughout service efficient card ThryvPay For the app option more be built mobile for cost businesses for built specifically based we looking launching and to ThryvPay again modular a recently a

recently business accept via ThryvPay modern or text messaging, device businesses list with devices, pay QR devices Google or drafts. payments mobile October technology or in present and lower to bank in Communication to it can accept They or SMS into Additionally, released tap credit Near email small using pay. small payments. hardware to easy via card can person device tap iOS Field codes, Android now have accept pay Wallet. ThryvPay card enables who makes Launched ApplePay or it to fee to turn owners accept XXXX online with mobile also to They a business for just payments owners

small consumer offer owners clients to larger financing enables items. their to business for ticket It

or fees customizable, ThryvPay offset cost to automated help Lastly, of convenience surcharges the enables payment processing.

grew lower I doubled million, average after in ThryvPay the on over While second a overall nearly volumes ticket In put full XXX% payment some overall year-over-year pressure volume XXXX $XXX payment sales QX year overall volume improvement. to paid year-over-year.

recently Signatures CRM. an users it launched need is with This we've centralized process manual to to send steps built a the our document app. enables contracts, get upload their Signatures Thryv take platform. five fully agreements to and for the proposals month. app users fully to Another automated up free to into to then to it enables new our uploaded for eliminates a to end. now contacts is for signed E-signature free signatures signatures and multiple users The per try Signatures or their With all app their

with who of overage This collaboration is more backdrop. up it TeamChat to can been signatures to already try the before users our in and really for small for have our of $XX holiday People XXX frankly to secure app the is XX% all and active able business additional. upgrade we to it heels need month which and QX. an in early enables on take app a of a in TeamChat, a adopting that coordination internal season fee small TeamChat are they organized way. quite extraordinary, especially launched within place the given buy

both multitude adopt native and of Google to Thryv addition a releases Outlook versa. to improve see where to enhancements Thryv in and better inside real These they X-way meet SMBs easily are and time their core our released recently to before Thryv vice and We and Calendar are both Outlook launched native Google appointments events we they integrations product.

end to robust few signature a be businesses launched consumer. at and service for of the digital a approval, that a of end enables based We in while paid to a capturing clicks estimate all deposit workflow just configurable the their portion time end

customizable to for deposit also estimates a and brand. In addition invoices, that have all their pick SMEs both and enabling new style templates color a we the aligns to to released improvements,

our a That Additionally, to capabilities. platform. XXXX been and top from In of created launched were the drag-and-drop five users X combined to them. Both have and for headers with the year-over-year. we to estimates delighted deliver it requests XX% million invoices easy sent this both improvement use inside customizable and configure were with represents and a invoices and improvements better sections these estimates ability month we

between small nicely launched an customers. been control release in better and and XXXX used prospects editor a powering their improved this with for conversations. We for now centralized heavily form has conversations inbox, increase our conversations And customization million enabling X Thryv longer Inbox rich and hit. businesses text

independent from true It's it's a grow small more needs can point growing small of solutions continues Thryv of out all platform powerful, what That's one month, over these seeking to with that Every them. it's in is. and frustration business more the simple, to tailored with grow businesses adoption and businesses.

it I CFO Paul? our fourth to to with that, And turn will over discuss Rouse quarter now results. Paul financial

Paul Rouse

call. you morning everyone and on the Thank to Ryan good

focus this As going the in domestic and includes which and understanding are is we services, segments operations. helpful We our from a more to and listeners, results feel on marketing to international two both reminder modeling SaaS business.

of segment each the found in presentation domestic on between our appendix and breakout can investor Additional the section for website. be international

into let's the Okay, grew SaaS year-over-year $XX.X another with our segment. a million increase. quarter to beginning XX% fourth in numbers quarter, the get and SaaS revenue strong

year-over-year. At represents fourth our $XXX compared XX,XXX subscribers $XXX double approximately in increase SaaS year-over-year. prior quarter, Moving SaaS year, to revenue year. end SaaS totaled represents XX% in fourth growth third prior consecutive of in the growth. grew ARPU XX% to and of increased year-over-year, to and digit to the a quarter the the XX% compared quarter in XX,XXX the subscribers This the

year of an guidance. almost better negative million original Turning SaaS of is $XX.X quarter adjusted $XX Full the million, XX% million SaaS and of EBITDA head our when adjusted and year-over-year, to fourth line, the the which midpoint guidance. EBITDA negative improvement was to $X.X was compared bottom

creation indicated XXXX, enhanced efficiency year to was As of due operating as the to marketing model. the beginning improved progressed. our value show leverage the goal more SaaS from potential our selling our business the we team year, in emphasize Throughout at

Seasoned XXXX. results in in the our net our have fourth for dollar with pleased are positioning quarter. XX% We was retention competence and

retention a with clients As dollar net that one year. over reminder, us been have represents season for

ahead marketing Fourth and services Moving quarter revenue services. $XXX.X was marketing over million of guidance. to

reported $XXX Our notable due includes in was Full Vivial offerings. marketing $XX year to revenue holdings which contribution a on services million, million from and strength basis. performance was digital our

of services XX.X% marketing $XXX.XX was a of XX%. EBITDA quarter decline EBITDA margin marketing Fourth EBITDA the adjusted marketing representing resulting line year million an of resulting billings margin was our in was adjusted XX% Full in an in services Fourth adjusted adjusted quarter year. year-over-year. $XX.X with EBITDA million throughout projections services $XXX.X

to million marketing was XX% an also and adjusted consolidated decline measures impact consolidated representing Fourth these XX%. adjusted services unchanged $XXX.X adjusted consolidated $XX.X margin XX%. year quarter Full gross of margin when was was a of EBITDA million representing of adjusted margin margin year year. Full Both of was XX%. representing EBITDA million adjusted compared Fourth year consolidated exclude Vivial. the adjusted prior Full billings EBITDA the of XX%. quarter EBITDA $XXX.X was gross

diluted the $X.XX like goodwill, quarter and per impairment charge $XXX of Net $X.X point the diluted the million quarter an amount to or for onetime also and business. fourth fourth we or was services XXXX the to the non of out in net it share quarter loss our $X.XX million of to decline for of to XXXX. million per would have $X.XX structural $XX.X per marketing that or cash income related I a fourth a share loss share of diluted compare

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

with the of the was generated term paid for in we ratio quarter. Since loan. credit flow additional our net $XXX.X the just in accordance free million $XXX.X and our our loan. term facility in of leverage two XXXX, paid and we the in We $XX.X census flow free acquisition years. company a The three times. cash times of EBITDA X.X Our associated debt million our cash towards million under From our with million towards fourth perspective, in loans term refinancing $XX to covenant nearly well below fourth year-to-date an paid quarter generated XX%

made the to significant to addition year. a nearly XXXX. million when over we reducing the progress course our pension have compared term prior made reduction on have long A of in of In we $XX debt, the XX% liability headway reduction a

the year XXXX. for and guidance discuss first let's full Now quarter

expect revenue we quarter in million SaaS For $XX million. the $XX.X the to first range of

range million, SaaS For the XX% $XXX the implies of full year to XX%. to revenue XXXX we million growth in SaaS which $XXX of expect revenue

quarter, to range For the expect the negative million. in EBITDA we million $X SaaS first of $X adjusted

full year to year more positive. the be international investments. U.S. For profitable SaaS guidance XXXX currently full This reflects EBITDA offsetting we SaaS adjusted a expect business

XXXX $XXX year million full the million in range the million. we of expect services For EBITDA marketing million and to of revenue range $XXX the $XXX in adjusted to $XXX

find marketing for quarterly revenue our services presentation release and can available ranges online. in press You investor

As indicated publications earnings impact treatment, to quarter XXXX results. XXXX the and our of conference in expect third quarter due to quarter on the fewer the we third third it call, accounting ship will

retire this free However, does impact ability to not debt. flow and our cash

high a conversion very flow quarter. expect in We the third cash

in marketing steady presentation billing many bit is to periods. historical transparent. investors metrics possible complicated point to our of For for and performance to the performance provide try print as this investor non-linearity a want to reason, We’ve much shows and be we as operational our information which we services, realized

And we finally, approximately can due we retire in to feel in have million debt the the of XXXX. $XXX confident business, visibility we

to back the Joe. turn call now over I'll

Joseph Walsh

a Thank growth. fairly U.S. the that phase. can 'XX. and on for for year cover that in country you, We're starts or scaling so while U.S. we've an we've profitable new investment Paul. the not overall been business the carry profitable the the reached now them, and scale got business And are fully in beyond those We're losses this has small and efficient the focused now

up have we So new now forward, small countries new we launch but there that. be we think business carry that scale set a can investment will going a fully as country, as a U.S. we

have actually our transformational big of highlight for model, a actually, right, company. than And of our part and larger part of Eclipse time. the is print journey our and being business Yes, recognized SaaS first really financial for the is XXXX, that deal plan print interesting this clear revenues about One that's will revenues SaaS, The I'm I our in that. this business. think, our revenue

Now, business. to but and growing, revenue it that the we'll out some move 'XX, time business from little bit just honest, and is get issue corrects the that the a recognition sort of that reverses where by books of year, pull it's away the at they the be SaaS of rate to the print

larger it'll inflection just the was this So is And away. print. from point out, here where on pull SaaS than

for gigantic company is for that's a is when we're trying So a you're crossover were occurring. milestone where transform that that of to those legacy And this moment waiting into something moment sort that that new.

we sort class people Android where a you might Think because and with more odds the We're sure and There's money our product got one focused experiment beginning cloud But making point iPhone about the we've at and a investing phone camera into solution When it all iPhone, with an to are few in that a product. project. The get is an of beginning slightly desire small in a are we've just into disconnectedness on way better a of The crisis got solutions. moment get businesses works. to yourself better a works. to just other pretty when really move the best it's you engineering it do that and simple. be it of more ends.

And It's dashboard everything even one what thought the there, with And works with a this integrated super product. vendor premium well consolidation run business app Thryv sort to people begun store and quality, login its can that's super that's your you with brand, is. it's SaaS. a this own process There experiment an with together, marketplace, on one at that's into out high desirable one in going have point. all of people for is under

is our So investment in product.

of We haven't because money had this we lots throw unfair sales advantage. marketing at and have to

driving software existing more were as The XXX,XXX actually small our picking us We for in what the and businesses largest sales of referrals have now is with friends, to doing don't customer and are us speed moving those XX,XXX, more to of marketing our product think steadily existing are for buying are our Thryv is about more that revenue them be money of now accounts thrilled customers investing, telling referrals that's Think to more area and base, When who you throwing efforts. base. this at of and their up and cloud. trend think zoo is robust about a plastic investment.

employee two our base, solopreneurs, who we s, to gotten as stronger, very customer think talk often begun the figuring gotten as more in kind started, about lowercase move robust selling the at market. out is, we've about SMB. has we were three employee, tiny client our were When businesses. gotten When we of we've up we our platform ideal we But better

or the little bit and payment more. finding be less we're great tend moving they to they they churn, more have the So more software have consume up XX, a XX, to obviously And on a XX and that or lot able volatile. to lower are we're employee capabilities, they businesses

that's the of little uppercase the forward. bit to journey we even part just of that into s is moving S kind in from move we're So as on a lowercase M and tipping moving

is we a lot is down a last very debt steady. lot will and the can bouncing at and cash we And services and down of way is year. understand would I little coming direct debt around. the a it's year I to tough pay realize a to of decline Our recognition flow. years everybody that again through metronome, going business, flow like paid cash the rate marketing this you cash of the through just is show revenue We look back

delivering was doing cash. out costs margins keep that. cash watching. first mind. be did then we dollars a Dex by we've on just we very guys We're When bought for to we very million we couple feel first who flat whole the rip YP do thing career, no got comfortable XX Media, improved of in our what will to flow time and It's restructure anybody in was the been of that we XXX business we're and focused points able continue that So to we

the focused to growth our cash we and And So ahead, looking we're is cost. delivering way. always on planning variablize pretty that are always efficient ahead really looking

can use. lot. XXXX at we mind levers Looking that normalizes publication keep cost schedule a And the in in

leads as revenues and marketing will and So point. mentioned, back be kind of the recognition services, roars fold that but away SaaS bigger I at

So quick business trot an a we that's and of our are. through overview where

Operator, it up why open don't some for we questions?

Operator

We take Berg question you. Instructions] Scott our -with & will Company. Thank [Operator from first Needham

line Your is open.

Scott Berg

Hi, anecdotal is everyone, it's I existing share the any information for I real this thanks Joe. of a customers across taking of you got center suite part couple new is bits couple purchased the the only just here, And But can customers and early, [indiscernible] as selling maybe for maybe quarter. better nice to you've business marketing on guess congrats center know had my out months. a motion? being by or questions.

Joseph Walsh

thanks at start, very started off of end Well, just you year. Marketing selling is the the it strong mentioned, a we question. as for center the to really

run it long a if in only buy did So a this so we don't far. leg visitor super We you're initial center customer. already limited you phase and can -- this to initial have out

universe that the that's moment. the marketing it at we're So to

it new-new the bringing moment. at in with not So we're really

the really out high. Now rate be we been But [chute]. good. our it had make just launching very Interest been that sure way of gated that it's will It have to of forever. way success good sales that was

to his in of kind legacy. back it mentioned does prepared Ryan our As remarks, bridge

marketing employees a lot period And buyers Our legacy have through of skill together sellers our that of of to is services. linking date lot a back time and a reputation there. lot and of credibility,

that it a So was regard. move really a in logical

So what if customer to or anecdotes you're about in of seeing would you terms Ryan offer know, Cantor uptake. I expound like don't or Ryan? customer anything

Ryan Cantor

their advantage who is customers of or signs on of it have starting from, as a Thryv They coming really now people to are website adding Joe. which visiting adopted center, decision. top alluded to as their experience. they're Early And better already of their taking are pages. powerful insights they're their Joe inform landing Marketing know Thanks, where

year. run strong So we're see early to people really, in paid well. the results there the some as starting really of starting to we're And advertising see starting just platform some to parts the through

are things very optimistic. all So

Scott Berg

on Thank this Paul, services you. from That's super we marketing helpful. then year. a follow up And with going question. the what's know business

number couple of should here? of revenue You we guys bit going a bookings think I over where to the years, a for is last been, being occur rule XX it's of days. year the certainly kind billings I be below start is about maybe how XX billings in the should this thumb contraction in the detailed may the different with or of that with kind it, XX% we've think we get about question last little one that, But know a the there year? that line Thank I segment thinking you. annual the as or trajectory which is used

Paul Rouse

no, and was way I going to it's for the a the year, the Joe think into XX% Like like about metronome for way the that's links to correct XX% it that's no, negative the think it quarter. think No, about correct mentioned, 'XX.

Scott Berg

Congrats all you. that's next have. again. the on Great, Thank quarter I

Joseph Walsh

Thanks Scott.

Operator

from our with Arjun take Bhatia We will Blair. William next question

Your line open. is

Arjun Bhatia

congrats you Hi if seems and in, it to question. you're Joe guys. the adding Ryan, and for quarter. product but more want the a solution? this to a lot capability with the You're Maybe adding on you maybe Thanks to signature. for And off start possibly like jump

UI are in? adding quarter? you terms with how something off solutions has a yourself? jumped think do existing that experience considerations product think how product etc? rather kind think there You've roadmap about in what do with something take with and But Because it And you this about new to it. marketing platform? coming And you How hook enhancement had growth building partnering are function that just the you functionality, do seems obviously out chat going do like adding the center, the about into of increase, do sure capabilities UX, of the new forward MAU I'm capabilities step versus your

Joseph Walsh

Thanks call talking listening them. for them spending We're to time with our with We're them, do we with we Arjun. the customers. Zooms question them, meeting

Facebook Ryan chat franchise and just this with We of sitting a session with them. there of talking end groups, like have spent couple two really the like our the customer He details, help one spent group. like people with, a with week. screen, went big of about days days is biggest and the little stuff sessions,

customers. So kind would possible that you as to put as we're of trying plug just we're to We're make our whole the a I if banner listening when I together, And that customers easy works. to for it to say trying things were succeed. to and make our thing, over

And that we way sort do so of is the we of Switzerland. ourselves think as

stuff the and Now our But and stuff makes connect got which, existing if marketplace, even that and that year often improve your already it the you flows, ahead. we've some in we've using, CRM, and life standing marketplace, to starts it just populating can go into which we've our significantly plans easy. marketplace, got it data from the there's got you're

their can't response have decided products have that having do things customers. It's that within were chosen force so homerun. of signature develop, terms and signatures to a the kind rank might we order. okay, like add rank an so in and We've somewhere put And and to in they you this such and we to our direct a to they conversations it go in CRM else, the it And is then for put with get that just way. ask tool, features, like, labor requests them to do everything. In those on of saving build force to don't have

they'd all them and So do we small cases, it's this courses they also ways, MailChimp, email to like take what to multiple without sweat, having down many do with to Contact, mean, And in about that's Constant email they keeping marketing, certified our it something. it of customer no connect, But really Thryv business and if if allow become It's it. to allowing easily just inside sit marketing I want something, or has simple. do integrates do really just if it to works. like

we're in And our as it barriers simple possible, That as front works. yes So them where trying as sure. and answers put make to of as few possible.

you give Ryan, want you do my opportunity, often answer. if to as how it expound any you as Here's possible. I an to on want

Ryan Cantor

it pattern that to can is that, Joe. And with. I it faster is for would think one of continue familiar they're on. a obviously relates and think other companies great we part and include choose homogeneous partner, do small other. businesses to we're become we Arjun, because to They our UI it that don't looks value we And in just of care to kind the care wanted like works. to ultimately user our Thanks, to the is, accelerate the key speed But to the space. from compounding relearn that not And on platform because experience as as to embed, having that the most move really it, does technology delivers new focusing with roadmap the functionality how Where And to what we partnerships market question. focusing as do. does. they we're what say users business it a we a experience you launch small that success they've it

on not possible. as to value deliver smarter, to focusing users just And harder. And our work ultimately continue so fast as delivering we

Arjun Bhatia

two go you thoughts you maybe of motion, somewhat or there. think all of maybe adoption there's last the centers that about base. on group you is months. you Awesome, a very for plan because your where customers you've bill from, to to year that about comes And the and this not There SaaS broader adopt install Do and what forward, within look that When you customers would that's month, take that circle go think a fit helpful. the so? opportunity back on your What see market Marketing next you seen in But to as strike. the for the as adoption the to targeted are strategy marketing is something Center.

Joseph Walsh

And at I'll dollar and you are want that, base you big then look to Ryan, pretty you you, that answer. to of can. people that Right, start a XXXX, marketing It's customers. services. have advertise remind a billion if and I Arjun promote amplify would it, more get trying back we if

to we down is So of that for talk about really us. Broadway we've center. really a people can right go and got big universe marketing It

I'm really to and a process change install the a little full it's a sell, help at is kind inbox. live honest your begin order business to got if with grow our I heart business And higher you've sale, mean to of where it's that's CRM than it of it, harder. in a easier you you,

an baby that down zoo But we're making taking We mentioned, moving actually just we're So customers. into first. plan perfect. steps just by sure I have area. We're the won't easier SaaS existing And into momentum everything broader initially forever. go eventually. is to marketing And to as do we be

anything I'll to want let there. Ryan, So, you you add amplify if

Ryan Cantor

seeing really more add we We're focus the who platform. active No, to user, center get of willing functionality Arjun think is seeing stages user as on the cohorts. the additional we're already Joe, I business naturally existing out early and on value two

them area Our very focusing well teams give after. when go to a operate we

users of and maybe the really platform marketing a also more. which we're inside little a can well. But engagement, activate measure a now to XX effectiveness their are platform of working end platform day who using we And for inside about. excited So were but to users is some see catalyst the starting being trial lower track able on that's the the out the pretty

bit well, Sometimes can use Or a a in of little it a CRM? are works of to small should online understanding engagement you And if an should which one our those businesses my be need of I product. reasons can marketing that track marketing future and an payments? drive which on push catalyst CRM online deliver why I why doesn't,

same little So seeing happening both time. we're the a of bit at

Arjun Bhatia

there Paul. that acquisition related goodwill to a for you The one YP? impairment last that something helpful. legacy mentioned, like And that more is Great, is is Or item housekeeping Paul, that's impairment that's that to? just recent related

Paul Rouse

books relates too to we'd what We during YP in Actually, the the with the in claim XXXX. to, acquisition business. XXXX, plus time, not and that $X.X billion it's the in restructuring respected that's on like and from bad. Yes, cash

it's the So you declining given And accounting business that higher What assets, see value. are, the SaaS it where write time future. could the doing don't valuation business let well. happen was national a we write on we're a pretty to I'm rules. And at lot this was going actually is own you time and in think than up. the the interesting from not to I carrying

deal. the that's So

Arjun Bhatia

All right. Makes again. guys. congrats perfect sense. Thank you And

Operator

from next Oliver take we [Operator Rob will Instructions] And question with our Baird.

open. is line Your

Robert Oliver

Hey, taking good Great. morning, everyone. my for questions. Thanks

your fairly First ones SaaS a on Joe, yet macro. metrics question strong. are in has DSL here guidance there the numbers in U.S. a at resilient. Bit certainly Joe. the the seems It that And for just quite that. the been of QX been reflects for economy, least curious hasn't

I in Ryan. sense contemplated get here then bunch to cycles and having the before So just your what's guidance and how a view follow up quick the for of through of you had macro a wanted been

Joseph Walsh

Yes. Okay.

Our company in been years. XXX business has for

and the a supply I been pandemic, the been they has supplies, again. chain better is issue base have that can us And where now. easing, they've hire couldn't they FX of to through get the of customer our is has has couldn't mean crunch and chain right now. weathered macro or hire lot SMB supply the and been where for a customer they so a business there is better good eased, anybody through. staffing the a really all cycles And find that weathered now.

these going through for So best times so. three the been compared are to the last years what or of they've

been with our about on customers, Remember, us years. average, XX have

very really So their mature don't icons new these in more trade are kind startups. community, of and businesses. successful We the

businesses. established more are ICP Our

to do. group really consumer, mentioned, well. good, out or whatever it's little need they And has house your question or think that as back concrete job reroute and to in done do you the so And continuing their that I is

results and year months very to sales really ever of And very, already and continue we're the and couple actually momentum type And and So are right mostly into part busy continuing right software growth see that's strong. do be to engagement now. than our our of in you is continuing well. based why now. strong And businesses the higher service a very

being In deliver long tend terms the under around We our of every last be been to proud who of and we're promise, year We're with. we over out there's guidance we since fact year. your are the a there. you're mention conservative. of to quarter dealing going our very last we've gathering same raised we gave that's a We're out, guidance kind not of get implying storm we over guys came told same that a DSL, great that with we're we time, the beat skis, you not guided

And in this clicking stride just Canada put And as we a hired did one mentioned coming and last year. nicely. And my prepared strong a full more than in continue of and as very Australia we through an And is center we bit really I we've So remarks to year. we guide conservative international momentum. little hitting have president. now, it's up now we got go

planning we're not more you So imagine to add hard figure to countries that's can out.

deliver comfortable going just tend conservative, deliver probably our get over very to not fully I So we want guidance we're and we that feel But guys skis. out It's be honest. that gave. to over I'm with to

all. at issues macro in no So the

the enterprise, thing C-suite. delayed C-suite the don't about mean honestly, see say of signs same and a one But other, Our I not guys trouble, that, which understand some more of and do. involved the to that And that we decisions and it I I customers companies come read getting any just have couldn't this being great. talking stuff you guys here. are our and doing heard say want you I to will don't have is

maker, it riding the they than for And ever This faster rate changed really, big them them. We're And nothing has along chugging the to about for modernizing way worse, affect whole really to begin business. dealing their just lot think a is with fine. they're the and to decision at has to a stronger that are is a and moving Small moving the an trend crossman's. that bottle. they're can to it's the businesses I economic cloud a little think we're in put back cloud. trend you and This get

Robert Oliver

know, Ryan, the today first really I at Really already. chatty then functionality versus colors. But Joe, tremendous the it that's bunch work years evolution. doing when helpful. when back when you. of guys, been platform on XX the it's some you look invoices, appreciate the guys estimates, Thank new product center when kind know, integrations, are to questions a next agenda marketing obviously UI. of terms what's I look give in all don't away mentioned to of probably want over I calendar sign, your you? of kind on months for at But XX started there's mean, The been I all And you mentioned, a you the features. what priorities you goods you

of two? over what success you. terms continued to kind the also for guys a Thank platform lot in have done year of constitutes or work verticals in expansion you You next of

Joseph Walsh

Thanks, Rob.

to we're goodies, creating all Joe I as points solve think We obviously change. that look problems well that we now to giving a have effort process approach. pain to continuing onboarding. that focusing as the forward announced CRM I and easier additional on obviously, we business excited are mean, away multicenter we've and without on is have, alluded users

closer small come little really on we're are where before always can they they so to today. how Thryv meet businesses a And to we focusing

to we adopt and can reducing We're the think that And to grow friction with we us platform able inside. be the lessen GAAP. then really

that's really, a So focus. really big

is again, simple, simply ensure apps we to analogy an perfect. Joe's iPhone these our just remains that sensors, as think I UI it works. we effortless. add It's add easy, as is homogeneous. It focus to on the

have when is learn it's is new things, the to improved, it don't intuitive. And You iPhone just natural.

it we're down effort the add in the lot And always of putting a functionality, there. you so that risk as Because bog platform. additional that's can

question very methodical And we so vertical. that. And and about to last do we're your about being how very, then careful

now think You're that app really of this into and [indiscernible] then transformation a now these have we platform is seeing an And centers the app, of ThryvPay apps. an and you combination centers. the like appropriate we're the CRM to functionality certain that really that are, is But verticalization would way about verticals the course, is see. of CRM features and thinking verticalized. there are on side,

them. to that turning a it don't. don't want platform vertical allow We do more for who without verticals to app any those adopt or way isn't turning able think them give in like modular being would away it, And want to reason to the the built to off

And is app focused center that's and strategy into to the this transformation really kind on so year really that kind our really direction of of usability. complete

Robert Oliver

that. Great. Appreciate it, Thanks for guys.

Operator

Securities. take We'll with question our next Moore from Daniel CJS

is line Your open.

Unidentified Analyst

know could could be standing in Hi, decision how how there maybe talking much if customers customers purchases? taking little where in SMB difficult And a faring is that back projecting [indiscernible] in business, approaching the about so are how economic thanks discretionary And with you're are But headwinds? this for you pulling approaching on SaaS for say your how if bit throughout time. touched guys, impacts negative makers. on purpose I Would customers you mind This think environment economic decision you are process? on a about Dan. is bit you despite touch in making little growth? kind directly strong your of guys are the of you're kind your these you you any there just guys

Joseph Walsh

Thanks where I think in that, it question question. Yes. for the to more, a answer. the your little you're appreciate trying I is with going parse bit

where at go very And discretionary you and discretionary. in It's little you the the Thryv. have to got in tooth, we and cracked word dentist there's serve clients the your that use You work got or you get a root or whatever, and conditioning it air hell. doesn't to done. your as And house, fixed. canal have cap, something hot a in the It's have it's

car, gigantic your a your what in your when to say car, based it's home, inside telling our guys are the the travel down life body, in your high our life really of really keep get your mean the and back driving they customer ran ran end and care are for nasty businesses road, not things service got that the on you've nasty with your just that's car. things guys side not base. making do. It's family, the discretionary your I of test make deer you working out the do, life. were it's do there's They life. or fancy lot I dining a our We and not sometimes going. that it or If

And don't it if talk. your things you roof fixed. and accordingly, And leak those get

under it. having You with a we're finding all consumer that don't underscore fine. And said is sit just bucket just there the want I that, to

in job. get supplies lot going The Our are They quieter. able jobs is get is you two good. the a is now There a on by backlog pandemic incredibly environment this to customers that have can four.

than You could much much a not it's ago. was. can couple it years order you better better but all and get them better, supplies than It's

The again. caught They'll where their summer. get and to sub still take customers last XX hire, months and spring better get was quite staff refrigerator has things you a or to improved they last can got it now zero a can people but hire from bit ability

environment that good. pretty is So

bad? and what things get ahead Well, if saying, of your terms In questions, [tearing]

refer I of the question. sort would same back to you

established guys markets. are the most business are in their the Our

sell And to new have less that Churn is same all likelihood a yellow to churn. have is new to jump that the We're sell say, carpet costs start, around. We a more mature So it's business, ones. a mean, pretty but didn't if been new top efforts the have in county of might business. mature be go base while. pages, much seven, by we get customer I do the they your you to is have try that guys focused he's the a a there don't a into you there nightmare. why didn't XX typically don't aren't, or that start, they start successful they going on have cleaners you We to the for most six our lot usually.

when really the churn. that's borne our as and low base super you on business look our we out So established have at focused

established We have of because really this base. that

same and read all that. supply So we to at calamity we being some about don't kick in coming. all see the But tightened monetary it's a headlines point going big you do

sales right about through I ass guardedly center tell marketing was yesterday. you sales, So sales, But through kick everything getting all drive a yesterday really strong today. can't cautiously started. for watching day right we're just was It's that. yesterday, up

Unidentified Analyst

a quick sounds about meaningful All making great. more as right, and talk result? inflection a progress center? bit could follow growth you're expect the When And you a marketing the with that about see up, a we little to should

Joseph Walsh

in think in I start build you'll I see it to see the it second the reflected steadily. numbers meaningfully half you'll And think this really year.

by prepared we're see and menu to it year, these You purchases set additional whether marketing maybe signatures marketing can And big second starting it's And of going. team and to remarks, we're say net of that remember, dollar we're see Ryan terms as that strong it to think I in detailed couple contribute. on year, buy, revenues minutes move his additional you'll the start would and renewal you'll it places things to to nice to the half beginning when that of logo very I in a But start people. a offer takes lifting to we up of really get our renewal one get of sell very, retention but is existing now the being customers. it selling center, one this or the and the customers center them so or chat, holding numbers in the right are big needle,

actually express app another path. in which there's upgrade also He is capability mentioned,

me back half, get in think XXX% in sentence. up the should expect start us that to you'll term to one retention. you I guidance mentioned see, I dollar our to net let second just long

that. that released now would way. part And part do and are while why these building believe that new of for we've I now a And that I the we products been able why that of felt are market to be into coming

to them you our think XXX. net of come this an toward we'll I eye So the expect year, ask second will would retention I dollar of on to through and you and half I'll start progress goal the make in see keep kind of

Unidentified Analyst

for Thank -- you

Operator

Go apologize. I ahead.

Unidentified Analyst

say thank you to wanted additional color. I the for

Joseph Walsh

question. Thank the you for

Operator

Securities. take we'll Zack our with B. last from Riley Cummins And question

Your line is open.

Zack Cummins

Good morning. questions. Hi. my Yes. Thanks for taking

Just diving in Joe. bit that a more on little

thinking marketing and as expansion thinking SAS this contribution fluctuate still the we're this see or new little of Are year. balance you about rollout that could between bit a the As a of of growth kind adds drivers center ARPU customer year? we

Joseph Walsh

that entering solid balance. striving to subscriber still I are expect mean we're think we growth. And I I countries. No, new good

on ARPU exactly new in of and few up to told about part back here if into we businesses segments that that Day, entering the we were why $X,XXX what you that next years But with, grow range and goes that. felt be you needs going would we dealing we slightly are is be we believe you and over to happening. go there's range of guidance the thought we kind drive a the think should long that we bigger we We Investor that more could able see able serve as time by lot that's

we've now. balanced, or that ARPU a slow ARPU starts you not we that got it. just is where see be that might not don't it's guiding it I'm to subscriber going to here down see so but or of drivers some lot perfectly any growth subscribers to that stop more And It's outrace

a And problem jump in it. bit big but But high be are striving again would we ARPU if we for So little it on we balance. might pull ahead for a balance. are it striving a class have

Zack Cummins

to of you've in like your you, really quickly. for up about talk ramp side in coming you've pretty Canada the couple international starting I me. a of helpful to comments, can know but right made made That's some now. progress And, seems it is on final Understood. Joe, just is question references Australia the you

Just existing over any thinking and countries into expansion insight about you're how time?

Joseph Walsh

a question. That's you. great Thank

in the spring, wonderful Marie you'll and to job business getting leader, Grown, and the into So a and the done yourself the we hired and an company team of international last people. remember she's come learning integrating know

resting not lot Marie. on enter We still with our of She's working away plans more countries. laurels. confidence us And for she's in a to have

which the us your mover into type a So specifically we we question model position -- into just answering for first quickly quickly services entry marketing business, used Australia to mature kind Australia. situation in evolve that a of pole established advantage bought was allowed big,

can bought you smaller Australia is Australia sales, the in a region, our terrific than into and in have that But a really you often It's we're beating at about is U.S. and obviously is excited And it And coming broken monthly regions. And doing. like the as what see sales regions. U.S. when it's look country terrific along companies nicely. the a leader much U.S. the organization we a there are

things engagement. really got started selected working. ideal the that and that that clients made up carefully and we very high stood sure low churn. we correctly we've And beginning had in super we had had them carefully were We've And

So we're still the from installed already small referrals of getting lot a relatively base.

not doing referrals cracking. inbound We're are of that pretty zoo. just the But now within going it's cranking. lot And well. really the So marketing is a We're zoo much really, there. working

Canada, and in you're grow reception And and in reseller. of to and so their direct our up revenue another online, we very segment team out there. We did any not went good make generally. trade acquisition. International then with established the out market went we partnership I sales more experiencing established We of and there. in selling expect own the And Australia that quite quickly a have

options. is terms as market advanced as not in Canadian U.S. The market the software quite of

lot interest about So and excitement there's a of what we're sharing.

as Canada all make mentioned at initial much we we because And don't earlier any into investment. as Paul didn't too leaning acquisition throw to that or growing efficient we're being so money of and it. kind want And too we, fast about

it So we're efficient in way. growing an

plan plan enter to continue more surface do growth we to our to announce And new today. that plan to if countries. billion that But plans of time, U.S. plan centers. a we kind which a more are And all new one there X get get there. the enter to And And billion gives out prepared and about in Australia, over don't just to to to us more to plan to markets. were to I'm growth lot grow to not we lot or get to vectors area anything think to continue roll and over

Zack Cummins

luck the with and Understood. Well, quarter. best color thanks for the of of rest the additional

Joseph Walsh

you your very Thank much question. for

Operator

and gentlemen, and concludes we call And participation. ladies your thank today's you this conference for

You may now disconnect.

Thryv (THRY) 23 Feb 232022 Q4 Earnings call transcript