THRY - Earnings call 1 2023 | Thryv Holdings, Inc.

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Operator

Hello. My name is Chris, and I'll be your conference operator today. At this time, I'd like to welcome everyone to the Thryv Holdings, Inc. Q1 2023 Earnings Call. [Operator Instructions] Cameron Lessard, Head of Investor Relations, you may begin.

Cameron Lessard

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

may On on Chairman can questions the Balsillie, investor.thryv.com. Please These Joe Officer; contain statements are call conference this release to or A the today the call and and in earnings our Walsh, your today's on with Officer Thryv SEC. Chief comments results in press company. acknowledge, to operations our call. other the Officer; the the described the copy @thryv.com of update future information Revenue release investor Paul Financial Thryv at and found and statements forward-looking presented Investors' Chief and Elise company's uncertainties presentation responses about section subject our earnings has and from made on the filings Australia. to risks no be Rouse, of Executive and Chief are website obligation

Finally, useful Walsh. measures, our to be speakers will website. With Joe believe posted turn those would like the on to for that GAAP to Reconciliation information will over call measures will now our financial of we which I investors. introduction, reference certain non-GAAP provide

Joe Walsh

QX our Thank call. thank for you with our you, Cameron, all performance. I'm and joining pleased

results. durable Our performance our strong smart us solid growth, Every optimizing model expectations. showing success while or and continued repeatable is year-over-year is our our revenue and in focus metric growth. on to This improving line predictability drive predictable, and scalable evident the increasing versus bottom gives steady

This attributable sales continued quarter of guidance. platform software XX%, of at to SaaS the our which ended strong Our was is first best-in-class year-over-year. at our grew increase quarter XX,XXX, XX% an velocity. top SaaS subscribers revenue and the

month to to We yielding Everything the qualified the it's from results leads month. right. conversions, all demos into better are than up prior each seeing

growth that you'll we took of just uptake. balance to and forgive the in between and this lot subscriber we're And having period just growth. expect well us, have growth a off it's and in going Now subscriber I've a sort mentioned past really ARPU strong of

always won't expect but there between a ARPU balance the X, So between subscriber a growth relative growth. we be and balance perfect

set at SaaS end user on of our continue the the engagement to and XX,XXX, users of an XX% Engaged quarter platform. in records was We XX% quarter-over-quarter. year-over-year increase

our the On been than getting again, once and came efficient me better guidance. each more bottom EBITDA explain how. in line, SaaS let quarter, We've

at chunks. in of mentioned our are First, small back. X type tools. We've these there's adopting kind SaaS of tailwind comes business our a big businesses More before,

is first are our XXX,XXX call zoo regular to talking them. sometimes modernize moving are to our tools. our to and more forward now adopt approximately and rounds ready these beginning The those making the small customer of in Well, feel we businesses base,

very been strong have base. sales So our into

huge bringing subscribers that's spend cost is family. that We're business. of to a with new league pie. to Secondly bowling conversation night. of And They're friends. the and to a on their acquisition bigger in able low piece the not of with referrals, telling And Those amounts means those. our is having and XX,XXX with our Tuesday getting referrals. increasing their they're we're bigger neighbor, are and a guy on friends work money basically that get We're

And a that have so us allows model. efficient really to

profitability. XX a we we on company. Rule improved pair a journey but believe have great very do, that, the where inbound-outbound And of that's growth profitability can coming part heavily rely have an do and we and be machine and to other the really are we with to haven't still on had like Now to software continue from. strong We're companies economics of that

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clients they fact, there. In have over digital XX,XXX

we so updated our with Yellow's benefit our Paul these tuck-in many a is automating from modernizing can are acquisition, Kiwi confident of SaaS share our guidance. and and will CFO, local about small that in financial And This Rouse, relatively more contributions products. businesses

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Elise Balsillie

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more background, market attracting United the to the not clients. The then States. our was broadly at the Our worked same new in reputation Australian Australia and building brand in as level competition us support in the marketing hard across team

to managing football point at We that never of bogged to solutions their managed drive our them small the significant clients impactfully approach staff, vast of some business down getting was owners were EBITDA. at We business far where and could our revenue them driving those their customers doing help awake were the night critical. go-to-market While finally business. more in than business. The the paid Every we or revenue business, not admin the use start. relationships services in have of Problems conversations, game. services volume it small being their son's getting we know and in majority detriment has of our problems. leveraging to to from Whilst and to their didn't leads keep just marketing marketing

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us especially service helped XX%. and the strong, overall and Australian partnerships we and The was And for Our later value centers outperformed launched in Australia than our is Australia, SaaS the secured. as to SaaS incredibly prior globally. is trained top-performing launch delivered just segment. customer seen being out. quarter. across of We're positive here in has The given our being to Signatures of awareness Thryv us now being to primed we've QX, to expos will clients, and bring they our of recurring the key launch the sales the marketing and brand, during signed a regions which partner ThryvPay this our month, both ready the exceeding has have partner exciting new many also trade increasing whilst new QX on in the milestone, Thryv delivering our we'll in one market greater expand that channel channel an by recognition grow has the opportunity resulted performance a revenue. first In region target verticals extension for we're each year have in with and partners center results in We've exciting Australia these team first the number key secured. Working to launched. perfect an market.

our future. I'll services deliver Thryv less success for Walsh. with exceptional to QX. turn the we're incredibly the been across envisage what pleased SaaS we Australia and results continued our in reached and Australian years Overall, business, than performance what the able In to marketing call addition building achieve back for Joe X targets to we've revenue the our in of business; the now to market we've with

Joe Walsh

each Elise, the a is these there. Australia for to years set-up enter different. one new There's you've We've amazing X investing investment of done job and in on market, last Thank we no and expect enter that international you market you, X Australia. markets, new thank we years Thryv the leading we get -- X as been time of

flow. Australia contributing will Thryv positive be in We cash positive XXXX, EBITDA, expect

And so turn gone international relatively the period. small. I'm an didn't about building. to year losses just make of little and a we Canada. we're We've acquisition. actually the greenfield bit at talk Canada, And they're the about making the just are this In in going just investment broaden end to

to able X probably be money huge the not that investing. couple because there investment investment. millions, be so entry. with an give efficient of single-digit a Zealand, talking be the We're us get will a U.S. year and or it we it will is a And us which New amounts there. there a and full Yellow, we're cycle carry the so And for as of market investment that it of we small made similarly, reduced set-up, gives And of will make CAC to acquisition in hunt more lower zoo will but years profitability

our So to Paul financial over that, like now first with results. quarter our to I'd Rouse, to discuss the call turn CFO,

Paul Rouse

Joe. you, Thank

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

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

end with into first top quarter, first approximately SaaS XX% XX% quarter, SaaS SaaS increase representing year-over-year. segment. subscribers represents quarter in X% jump increased $XXX to of totaled $XX.X growth year-over-year. XX,XXX growth beginning an and first SaaS our year-over-year million of the results, of the was in and of revenue the the guidance. at Let's ARPU the at the our

the to Turning bottom line.

EBITDA SaaS guidance. ahead negative our of was and First $XXX,XXX adjusted quarter

positive I'm As Joe in [ we business acquisition remarks, our his emphasizing managing past announce SaaS for spend described EBITDA in our have productivity channels. U.S. to excited SaaS quarters. champion achieved by in and X has the new our previous business that ] our been growth efficient

international than Additionally, resulted better markets being in EBITDA overall our our which near came breakeven. in in EBITDA contribution negative expectations,

by and and We by becoming our Rule path of U.S. success investment software we international are efforts are a the on the of company. to the XX encouraged strength we in seeing believe are the

growth and that continue in drive strong come. We are to years our profitability success confident our the will to

dollar net retention unchanged versus seasoned and the First quarter was quarter. XX% prior

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

with achieve subscriptions company With the to additional can our satisfaction and path value rollout friends upgrading to lead Marketing a can higher on colleagues. By and help clients increase like to subscribers loyalty. company to This providing the our renewing to and the Center, their experience, packages customer better of XXX% their centers centers the recommending NDR. is additional

by believe leads will revenue to to while also keep acquisition, which the We offset we streams addressing via new generating new low, higher customer these cost NDR. churn centers factors, of

Moving services. over marketing to

was from and revenue $XXX.X in and QX our into both which Australian due markets. to in of publications shipment than quarter First U.S. expectations came better million, timing QX

was First marketing quarter an $XX.X XX%. margin adjusted adjusted services resulting of EBITDA million, EBITDA in

quarter $XXX.X First this comparative for marketing metric million, billings billings includes period. our year-over-year. decline note, Holdings Vivial of services for was a representing now Please XX% XXXX

was XX%. consolidated gross adjusted First margin quarter

margin First XX%. was quarter consolidated adjusted adjusted EBITDA EBITDA of million, representing an $XX.X

segment services product. discussed, around timing As recognition impacted shipment measures our our print the and marketing revenue previously were these of by in

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

for in our Our loan. to $XX.X leverage and $XX and in under additional X.Xx was EBITDA debt first just company with million term free of generated Xx. facility, in the our an below well first paid accordance quarter net ratio cash credit quarter, towards the flow million The our covenant

turn to guidance. let's Now

the prior our full $XXX to guidance for million revenue range in the full follows. reaffirming are our profit but million, SaaS $XXX of as upgrading year We year outlook

full EBITDA previously to $X.X $X.X of breakeven. SaaS profitable XXXX, the in range year now the million million, expect we guided turning which as to or For we

adjusted to $XX our in full the upgraded For in revenue in $XXX guidance increasing million million range and for of outlook marketing Zealand, contribute revenue. million This are $XXX we reported around We the will year services. reflects acquisition now to for $XXX EBITDA $XXX range we million expect the of XXXX, believe services marketing million. in New our recent which

You online. release guidance our to available can find and investor press in presentation additional our information XXXX related

third the publications XXXX. expect it impact As in communicated will on we ship to last call, quarter third print to due our earnings our treatment, results. of accounting And fewer the quarter

cash does not expect ability and this we flow and impact conversion the our in flow free high retire very cash However, debt quarter. to third a

reason, turn services the steady realized as we possible to Joe. which much investor marketing over our We our metric complicated be investors point information to print billing historical our for and transparent. I'll this For operational non-linearity presentation, to the is our performance in want shows as to back provide performance and many a to bit of try periods. we now call

Joe Walsh

Thank you, Paul.

to journey They're we've fact an have they're existing help to pace. to of at a able the headlines referrals here model. a got So today's to us coming to from SaaS we're business, talk their customers The modernizing I that couple owing really this of faster business little I'd of guess along than ever like expected, our us as that's a call, sort and with underscore make our to want that things. and little stronger XXX,XXX a The in and is friends. great profitability their we faster conversation that bringing and introducing

more more base referrals. bigger, As introducing our subscriber they're and gets

sort model. self-regenerating a of it's So

is early We're last Our began nicely. going the days well. But are that. Obviously, sales launch end at just Marketing the we along in year. coming just of of very Center

do from excited Our how they with can some to about successes is way. are product about it best sales We've that Center. early to organization possible learning do got the and what really customers talk the how Marketing

in to coming engaged a see more come leading North guess, be the engagement. great we're And is sort more percolating but offer on in subscriber is, couple The onboarded. making our along big and because X. This food. proof excellent of takeaways of on dogs expectations very Star growth. and is I look software year fast the subscriber that's the So businesses. look would more revenue really up you that what you it's I a like the user. them the indicator businesses final to so growth. or eating such think that huge can mean, It's of nicely. I making gains get XX% to And later, final is And for at that an seems They're really them small is going is dog are And I as Thryv. businesses small as that and another of it point difference in been running we outstripping are almost can their is sign our even. that in working. And good.

that, over we'll with and So the the up, wrap it call operator. I'll turn to

Operator

Rob from [Operator first with Instructions] Oliver question Our is Baird.

Robert Oliver

Yes, one, the with X. start subscriber front. strong I'll you. on Joe, had I

that that, mentioned also between ARPU. to balance You subscribers towards of you that your remarks in alluded prepared kind and working

XX%. the dropped with slower to of or And is are side, that? like, function a Is help economy a of I'm new it kind I of apple to waiting a for Just kind quick the growth people just And then because wondering, and starting upgrade? some ARPU at understand smaller or the bit little being bite maybe below follow-up. people on of that the a just had just products us out

Joe Walsh

things. mean, about very it's mix think are businesses. them I probably I small customers, we've these a of talked before, resilient our

has average side. more the Our services been client on us marketing XX with for years than

new line are businesses, old So these the not really established starts.

coming go that I just newspapers they same they they hear But all the saying. you read do. to the going business mean, a be tend to what's -- be same blows. they challenging and of all And don't and So there's that the it's it's out great stuff. to recession very going hear wind if Fed

But really I when cloud the in it do they business twice, what buy say decision as yes, continue economy. maybe this of more market to is to differently, people Yes, look, they as there we And well. We're conservatively -- conservatism you bigger But they buy. cut. measuring make can tailwind sometimes of X little before crosswinds definitely there the adoption guess, in and is times out so see, to our Do a continuing they tinge maybe the the the a bit than behind do. environment? of

think as worry did uptake. We We're ever. moving of ever done, We're internal keep first don't records lot to setting more a we've particularly than to along. strong about continuing I it's in really. So very see anything the demos things quarter

So is there. I demand think

books And of -- move I and enter good they are the growing to products tends we the up along. see ladder it we're they people the develop. think to because they our and products, work once tend

not by at be don't I should think we're all. you it troubled So either.

Robert Oliver

I'm And to of to be bunch questions other the analysts, from just then sure going but I'll of a start. there's some on quick ask a Yellow one

in You is Zealand. Is And what that there XX,XXX here then guys too? SEM? mentioned New digital print Is clients SEO that business is there digital like there? like a

Joe Walsh

Yes, problem. no

As and sort the still official company directory Zealand. they New I were mentioned, of are in

XX So million in country. the X that is directories a New about We're cover Zealand about talking country population total.

it's have like -- had similar, But we U.S., that So over. giant or business. bought it Vivial they was like a the a business It's just And Thryv very yes, not essentially like a when business. when directory in business lot bought a directory have just the they that. Sensis traditional we pivoted

do they and directory, a they addition and also their where all printed that then quite SEM which general profitable they to stuff strong also SEO build used. very highly agency do In websites And and stuff. and business is online small directories, have

what going a on. build we're nice got they've and businesses, to relationship with small trusted that's So those

Operator

The next Bhatia Arjun from is with William question Blair.

Arjun Bhatia

you're Zealand terms New thus of of a those I see Joe, relatively maybe like out just just was follow-up compare maybe adoption. software which Australia, SMB Do as you the a Can characteristics Zealand early side. similar on seems New market between and the some expecting far? in remember, software on in of Zealand New Australia characteristics it's well? you success been what

Joe Walsh

anything, in sophistication, I adoption, the X to adopt small paperless, cetera, tools. very move et behind terms to year more probably are initiative that digital cetera. markets Yes, or general, or these would in an -- software more the say, is more et of Australia of regard. If Zealand move more similar in business a X There country is business New digital in

a welcomed definitely thing terms market I well-timed And they're of and it's will that So be working there towards. in really into initiatives. our the supporting think those entry

Arjun Bhatia

growth I'm of revenue we've little about to adding trying side, then what looking QX, it through I seen the there had you're -- flow when this in about of X historically? quarter that on your best the And you quarters to that bit. mean, different one adding for when at I we characteristics might looks just the see think just SaaS the net customers that metrics think new -- we this anything I'm really the be SaaS a clients versus Is quarter. didn't like subscriber square those trends different but

Joe Walsh

Yes, really. not

think it I prior little the to a bit. question got

a bit really little off. was a of little conservatism really tiny, in that's around had that. the this people we've Feb bit. March because holiday little but were that off ARPU number strong And time add-ons conservative year. and holidays a us took variety and took more the the people soft during just period are think move I are I period April, more of there now out around the little And for a terms a People And buying. bit a prior that think what maybe there make people also

Arjun, kind So don't find they any of our the there's little to good, big when little identify. lower see in best they but numbers, people the enter, up. And that a a migrate in extent we to to I always on scale better, trend noise tend come

it. not just for about them later. concerned really that I'm is So scope more increasing

Operator

next is from Rally Needham The & with question Robert Company.

Scott Berg

services, marketing move your intend you this In changes SaaS to any Berg. to solution? behavior your are Scott It's customers macro, seeing in

Joe Walsh

about a of are there but when different or elements on. or a tool call mentioned your for whatever things, out lot can in brought platforms. plumbing ready. and have think established, with HVAC, in do now weren't cloud-type accounting bigger begun very to and remarks, little might go, I'm we aware that roofers, if they a they just And We especially there this to point all-in-one okay, very good ready their out do finding the increasingly come some aware to these provide and have platform. companies, I mature might there ready talk them mean, various were them really cases, bit in then is a They tool. They prepared an that a point are solutions lot onboard make they're these with businesses been I we're these of right tools is embrace that payments. complete to That's you our on. to tools just with and platform That are there. run that. There's trickling we already and the cloud point there's base, adopt -- -- it interoperable megatrend -- them moving some And to the Thryv And solutions. to And that. ready paper other And the distinction something really that described small solutions analyze started you last businesses business Many gone it's use have -- them are unclouded. we've they're these a that into down call and some is them watched enterprises now now solutions coming from I'm I and over search digital. coming know I them more platform. is while They're looking I are they a in of the pencil. world move. in have don't Thryv tools. you of they're guys decade. then point super -- in We're year we help around that and cases, right a And we're In moving and the and

sales -- our do started bit problem. with a marketing. to little we who the have when reps well, are in say, and They no And around well, Mailchimp or say, somebody and a I Constant encounter of that. a Contact little they So email we're field bit screw

and one And the mind just No share forth. one. will Thryv. plug a it and in you It's data use in makes can if we but also we your our easy. don't back You problem. just that automation API have it with that email And tool, integrate

tried Thryv lives that's to what customers. We just that we've them is And make better for at to do easy that easier make and barrier it and and to to adoption, so friction compete exist reduce more small reduce allow businesses effectively.

can to do lower to that anything so we the try friction do. we And

kind to that the that of we answer way that's the think So about -- question.

Scott Berg

then just again, macro, change with churn And the customers? seen any given non-seasoned you your have to material

Joe Walsh

I see what you're saying.

to trend into But data. I that nervous people or it's a say question that identify up. we the so any expenses might I questioning in surging the trying haven't there's little up get a noise other. the improved. move bit to hasn't seasoned are things You're -- have okay, seen something big anything. We always see can It There's on, now. of It moved about but XX certainly I more or past and got their one and wouldn't or way big

Operator

with Securities. is B. Riley question Zach next from Cummins The

Zach Cummins

up mean, you of couple over at the trying on I net But time? Joe, think to number steady here drive quarters. pretty XX% past just do how It's following remained consistently of dollar that about about higher over kind retention.

Joe Walsh

ones teams of happen. Well, X XXs market we be a employee who they're the benefit model. Salesforce.com follow as guys move And record we I the business those lot feel in product HubSpot Maybe wonderful And client they are a economic net that low amount see from and like It will this I very I to where is giant and working very get times. obviously you inventing. know see huge I driven we off retention a how there's big really map are. or getting companies better companies is on like will see to that and going come is and they're ours we at what like I room think to that's think is ideal the lot of can way now. grind great of us because ours. similar the very, pretty saying with doing up down That's product products more we X,XXX be follow engineering a time spend for by of their our upsell. other HubSpot. not exciting. And And churn they're that what guess, believe is to where back I ones going it's XXX% in believe business. guys And scope mean, to software really dollar XX. And road is the more upsell what that And on. from

we're be their them. out. not we'll hubs, seeing X their as along footprint to go advanced to have just curve came just center those just up, right needs and confident interest able right But come But really now And we're and only of are seen very very business quickly. way coming only we below out, their they second other we and had ARPU there. I stages right development the And the centers have added businesses the out their if as willingness more So grow. they've and we'll in up, that centers the time as and up, adoption those be in there be broaden we're we their accelerate. things, more sitting adopt ready, may now, but that they serve and very these mean, at readiness you've products

that see business years to XXX% I back And it. guys promise XX%. the up you that next think XXX%. and then they'll you confident line. about number years. a just to it few perfect genuinely XX% to XX% we move that straight But go can't around even quite we're that believe net might up model to of be this bounce XX% go should we over It can from retention the So And a in you then might the and will in dollar way. move in

Zach Cummins

And customer acquisition strong final you me really are referral like engine? least thinking from? customers at on quarter. placed question into in there for had sounds the the around just new for It acquisition emphasis really SaaS are greater where you've how referral just recent are just you those here, that that kind on the thinking overall being business. of about volume How is Is coming or channels pretty channel about a leaning

Joe Walsh

we X/X, just it accelerate. not sales customers They're introducing a of channel referrals. through actually their they're to I've over feeling I genius than small more see are somebody -- this I customer of on We're you you engagement It's getting said, referrals. one existing a Customer X is other team businesses to last mean, friends. And Investor you Pages And up keep our base, One just X/X drive. one. sell Star, more the the wish he We're Quarter-over-quarter-over-quarter, up. And so is now. North engaged we're it tell get morning user our to perfect seeing about years up. we're X/X, lately Freeman, or directly the referring users people. and Yellow going Day. have every And some are I about many referrals wake little as our really then? more just the us That from driving surging well, in articulate over dramatically helping had. are told have bringing mean, numbers to at referring you that regenerating. couple has talked out our years, And your simple. the could idea and I engagement us X. what Officer, that that analysts to keeps could had base a we the with Grant Chief story one I pair-shaped customers. seeing thinking number us getting engaged of been more more how these about we once They He was risen And because said, that

completely out the if with trying fools. guys, that that there to We're to that us other to to go a spend mightily you I that people of software allowed a with there there just out the funnel, transparent businesses company. out other has just meet bit get spending get on regard, the off somebody. conversations. to take and conversation foot in inbound any are There's our So like gas which money, pity having I'm small we're -- little kind

We have whole lot have that of XXX,XXX friends. customers a

pick to pre-sold. is farmer We're to of conversation us. kind and to work relationships to calling a a conversation; of of customer already relationships, pretty most [ ] friendly the conversations or of our a life so somebody kind talk talking lot where lot warm really And of a introduced really want doing trying get not and with ice-cold, to who spade cold doesn't is

So in it's swinging think can you a to the see the nice life positive. EBITDA we I have. it And

modernize comes base been we've it profitable believe base of we've move those they'll will do years. big to from I in couple us happy move to more they're been we've about it the everywhere, with the just to decide them, with we've years, more everywhere. traditional sharing them, of And that Our with SaaS Yellow them, Pages for and we've the been or customers. them, because them U.S., next been when time videos over not them installed think for ready the now X nurturing it's And and on I business forward, customers to old us. but And X of teaching been now calling will decide talking forward is

Operator

The with next Securities. Dan question from Moore is CJS

Ross Kesselman

And regarding next This is to a talk you're Dan the the Ross when in more centers with making little years? hear Can expect you plan Marketing progress about for to introduce should the other Moore. you details Kesselman Center? over we bit few

Joe Walsh

a It's question. great

kind cases with of limited we that to out business make or were gone they're we Thryv software, still year. month. software, a work a came But that brought already gradually edge well. By already we because they're We're basics where year. we scaling in gated Marketing sure the of a it slowly least Center group Thryv right? staged been for very That's out, buy ramped been to and customers out. if nicely so in way, the of a already there and customers through weren't meaning Center there it's the way and end out to customers, sales limited or wanted bugs they're last that's really allowing tail at initially then only couple the it of worked center sold a And Marketing customers, So of or we at a to of group already them they've and the we needed people it problems

kind still business. big really plan to be is sold marketed a it summer up very universe. we've Marketing got whole that our a very open smaller it's you'll soon to the marketing it more So base. And realize this services to But of broadly allow Center and and

people that on, lot marketing software in maybe a of so are there's those So not interested even in and interested yet.

ideal to And really this. for a will all more I'd like like some -- the us giving of it But feedback bunch broadly. that's menu they're it is we about think customers so Like and and them. it's the product correctly. they'd see they're of as now, what accelerate it using to nicely got curve to position and help very we to do market a also to big an how and how about different. good it's a like it's quite are positive should this it software understand it it us doing feel of open a But up sales a different. we we've who been is And to they'd the see that learning and feedback they're bit force news client using in the they're new giving lot what

doing fast improvements as that And follow so some we're got we've well.

how think get as it's the to under probably which a $X.XX in is of $X.XX in numbers month, the should the show know fourth the get you to belt. up see see to, and ]. you year, and we So to I back half influence probably begin we through what When sale, Marketing in of [ Center our you'll our get you're numbers only I the start numbers, it terms flow closer in just this that quarter strongest to year make trying the

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it have in countries We other the out of haven't rolled yet. the U.S. even it in We any just

be So out the in soon. other it relatively we'll rolling countries

influencing probably those to see you'll the numbers. numbers think back of see in the closer So half fourth I year, total quarter, start our you'll the to

centers. second even piece we And The you fully Day, a about confident us We guided a how better little per are deliver on that that. center our do think your question thinking at about out very Investor with of was maybe we than coming I'm can guys to year. other that,

next a center And coming year. this market think will certainly So this will us lot center about have open very and out it's and a number opportunity tell you I'm application have people a to that big we And we up will it the with. more to see broaden that of conversation -- for the ready. an when next excited you the really

Ross Kesselman

one ask If I could follow-up.

growth opportunity whether achieving targets material not or upside of growth long-term year and laid profitability Over light why you? talk of you accelerated right feel a any the several for positive the implications about quarters, in has ago? decision is the the decision your Can have front timeline And past the roughly you you that business. of in out SaaS bit getting in a little you

Joe Walsh

question. great a That's

So with we're Page investors. big them X We with dialogue constant meet of in kind our regularly.

business hand we to in But positive investing. And desire were evaluation them. leaning quarters, positive, are cost stretch. never so, favor. We flow, their doing business and to share this in And out own without were share SaaS over a the fist process at with hard their any sort have money we on. fallen re-evaluation over there these And by with people their they just where and that any and capture and of has been X our spending committees see order clearly. and cash a kind has of they last all have what's -- question, own us growth the going or have communicated conversations investment X models been own little market of grow where very quarters And

to really or email already me learn much was told we their about a through business an it. and been ready it about so on my The get shift hey, from meet low. friend and over call the acquisition really was the Remember, somebody for typically We pretty that pretty When of gigantic it wasn't because with them, us our with happening I phone scale point want And there friend this. cost more buy. to contribution. they're says, getting the software a the to of to referral referrals they've get naturally. is

bit all on those have don't we us that up us but supposed making more and extra with environment costs more $X.X that's to we will of people. and go, $X.X million helped than between sales might to has lose we little a sales of cash additional a if grow mean, said no apparently, for to positive this whatever The we cost amount was an our $X.X you're million EBITDA this couple growth our $X.X year, million funding, So that. be cash. really And business points, at positive rather million spending around ton the go, And difference And a go, in funnel to costly. could a of enormous lot. I probably big deal need generates flow be a inbound year.

punish so for an company seek in And that's to going that's investors. going not And our out think that. that's important I us to to doing environment and go to funding that have a we're

we centers to your people very and that half position of will going are plan, very, business today. we that feel So X, playing be the much effect And to a part platform of decade, still out we'll where to very to you be lay for we minority capturing But them fall. an a a We're new we pole each and drive billion markets those later that a entered that enter and to It's planning it's entering, later them. now, And to going our software a $X total little plan additional operation, the detail. going that that much that we're be work platform this ready majority the in believe about that standard year. more Investor some grow are us question. this just of countries, our from this to for is looking. be update if like in seeking X at years cohorts very our happening, a addressable Day it we be and of in of operating we've long-term on out, this and we're -- geos, feel more will numbers, its that cohorts element X capture it we're of one. the to businesses on And market new plan we're continue very big really Thanks of Zealand, good are still businesses those New might the decade back that. We this small spend, -- question still the small a bullish we'll to a second more and will that plan on long-term rolling new out. we for

Operator

I'll any over for questions remarks. this it Walsh no Joe to at further time. have We closing turn

Joe Walsh

today, listening Thank Well, swinging at attending business Appreciate milestone. for the big that profit are everyone to moment of on you thoughts the the our that. thanks call. Chris. big My to much, is business a very kind

We'll however go X profitable profitable was, way. then have the profitability. in but quarters, many X for never were past, and been the to we're back We other whatever it back not or we

have we're SaaS we And think very customers of the and can new profitable. Our fortunate growth will And business kind we score, and we of use base centers, NPS own start that new us as business is highly markets, propel high be new for this continue the to a engaged along. businesses' big countries, expansion. profitable we juices

we're say we mean, an We that model. really been an have customers And great XXX,XXX I have have advantage. having I'd a unfair to do but with team, that management excellent like really us about. for Center, we're want that, you and makes to us trust Nobody what say. and excited have XX years, you hear that and I special. Marketing like else you has to super

a to And and I've my big what's melting I the that we subscriber going scrolls another make turn our me The be expected engaged confirm many some And would if computer number that got happy growth. center year. the do you of we that's of but want health growth. and is you steadily half at we're beautifully mean, I shows by to overnight, might lift day. users how along. and the the Thryv, me an active look When of driving guys are I just as subscriber have, you'll happening as every how up developing coming I and the in have just it what's out come site think on, it's up. Internet And that with it think is to it's business back get and what see business happy engaged users

forward So today. appreciate support. updating soon. for you again all I to thank attention the And Really you look Thank your you.

Operator

this Thank Ladies participating. concludes and call. gentlemen, conference for you today's

You may disconnect. now

Thryv (THRY) 4 May 232023 Q1 Earnings call transcript