Raises Revenue and EBITDA Guidance for Full Year 2022
Thryv Holdings, Inc, the leading small business software platform, announced that it grew its SaaS revenue 26% year-over-year in the second quarter of 2022 and has raised revenue guidance for full year 2022.
“We are pleased to report a strong second quarter,” said Joe Walsh, Chairman and CEO. “We saw significant SaaS revenue growth, ahead of our SaaS revenue guidance targets. Importantly, this growth was driven by double-digit year-over-year increases in Thryv’s SaaS subscribers, as well as continued improvements in average revenue per unit – or ARPU. We also had an excellent quarter in our Marketing Services business which benefited from our recent acquisition of Vivial.”
Because of the solid results exceeding guidance, Thryv is increasing the projected full year SaaS and Marketing Services revenue and Adjusted EBITDA.
“In support of our goal of driving SaaS subscriber growth, we recently announced the hiring of Tami Cannizzaro as our Chief Marketing Officer. Tami is making a difference already, driving performance in our inbound channel as well as enhancing support of Thryv’s local sales team.”
“We are focused on driving growth, especially continued investment in subscriber growth, while ensuring we deliver on our guidance, both top line and bottom line,” Walsh continued. “In support of our goal of driving SaaS subscriber growth, we recently announced the hiring of Tami Cannizzaro as our Chief Marketing Officer. Tami is making a difference already, driving performance in our inbound channel as well as enhancing support of Thryv’s local sales team.”
“Our clients tend to be well established small businesses. They have historically been recession resilient as they mainly offer non-discretionary services. Adopting Thryv software allows these small businesses to more effectively manage their businesses, helping them reduce costs and improve their performance.”
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Second Quarter 2022 Financial Highlights:
Revenue
- Total SaaS1 revenue was $52.2 million, a 26.1% increase year-over-year
- Total Marketing Services revenue was $281.8 million, a 12.9% increase year-over-year
- Consolidated total revenue was $334.0 million, an increase of 14.8% year-over-year
Profitability
- Consolidated net income was $58.0 million
- Consolidated Adjusted EBITDA2 was $116.0 million, representing an Adjusted EBITDA margin of 34.7%
- Total SaaS3 Adjusted EBITDA loss was $2.2 million
- Total Marketing Services4 Adjusted EBITDA was $118.2 million, representing an Adjusted EBITDA margin of 42.0%
- Consolidated Gross Profit was $228.0 million, an increase of 27.8% year-over-year
- Consolidated Adjusted Gross Profit5 was $237.3 million
- SaaS Gross Profit was $32.6 million, representing a Gross Profit Margin of 62.4%
- SaaS Adjusted Gross Profit6 was $33.7 million, representing an Adjusted Gross Profit Margin of 64.5%
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SaaS Metrics
- SaaS monthly Average Revenue per Unit (“ARPU”)7 increased to $358 for the second quarter of 2022, compared to $323 in the second quarter of 2021
- Total SaaS clients increased 11% year-over-year to 50 thousand for the second quarter of 2022
- Seasoned Net Dollar Retention8 was 91% at end of the second quarter of 2022
- SaaS monthly active users9 increased 27% year-over-year to 38 thousand active users for the second quarter of 2022
- ThryvPay annualized total payment volume of approximately $150 million for the second quarter of 2022
Outlook
Based on information available as of August 4, 2022, Thryv is raising guidance10 for the third quarter of 2022 and full year 2022 as indicated below:
For the third quarter of 2022, the Company expects:
- Total SaaS revenue in a range of $53.7 to $54.2 million
- Total SaaS Adjusted EBITDA loss11 in a range of $4.8 to $5.3 million
- Total Marketing Services revenue in a range of $205.0 to $210.0 million
For the full year 2022, the Company expects:
- Total SaaS revenue in a range of $209.5 to $211.0 million
- Total SaaS Adjusted EBITDA loss11 in a range of $16.0 to $19.0 million
- Total Marketing Services revenue in a range of $955.0 to $970.0 million
- Total Marketing Services Adjusted EBITDA12 in a range of $335.0 to $340.0 million
