Thryv Grows SaaS Revenue 25% Year-Over-Year in Fourth Quarter

Company exceeds all guidance metrics
Fourth quarter total SaaS clients increased 13% and SaaS monthly active users increased 37% year-over-year

Thryv Holdings, Inc, the provider of the leading small business software platform, Thryv®, announced that it grew its SaaS revenue 25% year-over-year in the fourth quarter of 2022.

“In support of our goal of driving engagement, we recently announced the move to a multiple-center platform. By offering multiple centers, we can solve additional problems small to medium businesses (SMBs) face.”

“We delivered strong fourth quarter results, closing out a record year at Thryv,” said Joe Walsh, Thryv Chairman and CEO. “We exceeded all of our guidance metrics – reporting strong SaaS revenue growth, improving SaaS Adjusted EBITDA and increasing marketing services revenue. Our key SaaS metrics, subscribers and ARPU, grew double digits year-over-year as a result of our focus on innovation and execution. Our software platform is driving time to first value for clients. We hear from clients they want to reduce friction by consolidating their multiple point solutions and logins. With our all-in-one cloud based platform, SMBs have one login and one dashboard to gain greater business efficiency.”

“As we begin 2023, we are focused on our strategic initiatives – increasing engagement and usage – because these lead to increased renewal and spend,” Walsh continued. “In support of our goal of driving engagement, we recently announced the move to a multiple-center platform. By offering multiple centers, we can solve additional problems small to medium businesses (SMBs) face.”

Marketing Center, Thryv’s newest center, delivers the tools an SMB needs to market and grow their business. The solution offers improved online presence, a suite of marketing tools, search, social, display and connected TV advertising. In the future, additional centers will be launching enabling SMBs to address additional problems.

“I am confident that in 2023, we will sustain durable SaaS revenue growth and will continue to generate strong EBITDA margins from a consolidated standpoint,” said Paul Rouse, Chief Financial Officer. “Given the strength of our product offering, size of our customer base and revenue diversification, market demand has remained strong.”

Fourth Quarter 2022 Financial Highlights:

Revenue

Total SaaS¹ revenue was $59.3 million, a 24.9% increase year-over-year
Total Marketing Services² revenue was $220.1 million, an 11.7% increase year-over-year
Consolidated total revenue was $279.4 million, an increase of 14.3% year-over-year
Consolidated net loss was $50.4 million, or $(1.47) per diluted share, which includes a non-cash charge of $102.0 million, or $2.98 per diluted share, related to goodwill impairment; compared to net income of $5.1 million, or $0.13 per diluted share, for the fourth quarter of 2021
Consolidated Adjusted EBITDA was $68.2 million, representing an Adjusted EBITDA margin of 24.4%
Total SaaS Adjusted EBITDA loss was $2.2 million
Total Marketing Services Adjusted EBITDA was $70.4 million, representing an Adjusted EBITDA margin of 32.0%
Consolidated Gross Profit was $178.9 million, an increase of 18.2% year-over-year
Consolidated Adjusted Gross Profit was $188.6 million
SaaS Gross Profit was $35.7 million, representing a Gross Profit Margin of 60.2%
SaaS Adjusted Gross Profit was $37.3 million, representing an Adjusted Gross Profit Margin of 62.8%

Full-Year 2022 Financial Highlights

Total SaaS revenue was $216.3 million, a 26.5% increase year-over-year
Total Marketing Services revenue was $986.0 million, an 4.6% increase year-over-year
Consolidated total revenue was $1,202.4 million, an increase of 8.0% year-over-year
Consolidated net income was $54.3 million, or $1.49 per diluted share, which includes a non-cash charge of $102.0 million related to goodwill impairment; compared to net income of $101.6 million, or $2.78 per diluted share, for the same period last year
Consolidated Adjusted EBITDA was $333.3 million, representing an Adjusted EBITDA margin of 27.7%
Total SaaS Adjusted EBITDA loss was $13.4 million
Total Marketing Services Adjusted EBITDA was $346.7 million, representing an Adjusted EBITDA margin of 35.2%
Consolidated Gross Profit was $780.4 million, an increase of 11% year-over-year
Consolidated Adjusted Gross Profit was $819.2 million
SaaS Gross Profit was $132.3 million, representing a Gross Profit Margin of 61.2%
SaaS Adjusted Gross Profit was $137.6 million, representing an Adjusted Gross Profit Margin of 63.6%

SaaS Metrics

SaaS monthly Average Revenue per Unit (“ARPU”)³ increased to $387 for the fourth quarter of 2022, compared to $351 in the fourth quarter of 2021
Total SaaS clients increased 13% year-over-year to 52 thousand for the fourth quarter of 2022
Seasoned Net Dollar Retention⁴ was 91% at the end of the fourth quarter of 2022
SaaS monthly active users⁵ increased 37% year-over-year to 41 thousand active users for the fourth quarter of 2022

ThryvPay total payment volume increased 114% year-over-year

Thryv Grows SaaS Revenue 25% Year-Over-Year in Fourth Quarter 2022

Write in to psen@itechseries.com to learn more about our exclusive editorial packages and programs.

Related Posts