Thryv, Inc., the leading small business software provider, announced today financial results for second quarter 2019.
This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20190726005410/en/
Key highlights for the Quarter:
- SaaS Products’ revenue grew by $6.3 million compared to prior Q2, a 23.4% increase, with trailing twelve-month net revenue of $127 million1
- Increased Q2 EBITDA margin to 34.6% from 30.7% from prior Q2
- Generated $88.7 million adjusted free cash flow during Q2, an increase of $29.6 million compared to prior Q2, a 50.2% improvement
“Thryv® is enabling small business owners to take control of their businesses,” said Thryv CEO Joe Walsh. “Pairing Thryv and Thryv Leads, we continue to pave the path to small business and local entrepreneurial success.”
Second Quarter 2019 Results
|
Q2 |
YTD |
||||||||||||||||||||||||||
|
Variance |
Variance |
||||||||||||||||||||||||||
|
|
2019 |
|
2018 (b) |
Fav (Unfav) |
% |
|
2019 |
|
2018 (b) |
Fav (Unfav) |
% |
||||||||||||||||
|
(in thousands) |
(in thousands) |
||||||||||||||||||||||||||
|
Operating/Net Revenue |
(a) |
||||||||||||||||||||||||||
|
SaaS Products |
(c) |
$ |
33,108 |
|
$ |
26,832 |
|
$ |
6,275 |
|
23.4 |
% |
$ |
65,345 |
|
$ |
50,700 |
|
$ |
14,645 |
|
28.9 |
% |
||||
|
IYP / ESS |
|
79,767 |
|
|
98,666 |
|
|
(18,899 |
) |
-19.2 |
% |
|
160,986 |
|
|
205,802 |
|
|
(44,816 |
) |
-21.8 |
% |
|||||
|
SEM / Performance |
|
61,269 |
|
|
81,076 |
|
|
(19,807 |
) |
-24.4 |
% |
|
123,992 |
|
|
168,699 |
|
|
(44,707 |
) |
-26.5 |
% |
|||||
|
Other Digital |
|
31,975 |
|
|
38,596 |
|
|
(6,621 |
) |
-17.2 |
% |
|
60,833 |
|
|
72,710 |
|
|
(11,877 |
) |
-16.3 |
% |
|||||
|
Total Digital |
|
206,119 |
|
|
245,170 |
|
|
(39,051 |
) |
-15.9 |
% |
|
411,156 |
|
|
497,911 |
|
|
(86,755 |
) |
-17.4 |
% |
|||||
|
|
|
170,220 |
|
|
223,526 |
|
|
(53,306 |
) |
-23.8 |
% |
|
351,159 |
|
|
466,446 |
|
|
(115,287 |
) |
-24.7 |
% |
|||||
|
Other |
|
2,676 |
|
|
1,984 |
|
|
693 |
|
34.9 |
% |
|
6,942 |
|
|
4,016 |
|
|
2,926 |
|
72.9 |
% |
|||||
|
Total Operating/Net Revenue |
$ |
379,016 |
|
$ |
470,680 |
|
$ |
(91,665 |
) |
-19.5 |
% |
$ |
769,257 |
|
$ |
968,372 |
|
$ |
(199,116 |
) |
-20.6 |
% |
|||||
|
Variable Expenses |
|
106,588 |
|
|
139,508 |
|
|
32,921 |
|
23.6 |
% |
|
225,009 |
|
|
294,490 |
|
|
69,481 |
|
23.6 |
% |
|||||
|
Variable Profit |
$ |
272,428 |
|
$ |
331,172 |
|
$ |
(58,744 |
) |
-17.7 |
% |
$ |
544,248 |
|
$ |
673,882 |
|
$ |
(129,634 |
) |
-19.2 |
% |
|||||
|
Variable Margin |
|
71.9 |
% |
|
70.4 |
% |
|
70.7 |
% |
|
69.6 |
% |
|||||||||||||||
|
Total Direct Expenses |
|
93,000 |
|
|
132,309 |
|
|
39,309 |
|
29.7 |
% |
|
190,476 |
|
|
255,350 |
|
|
64,874 |
|
25.4 |
% |
|||||
|
Direct Profit |
$ |
179,428 |
|
$ |
198,863 |
|
$ |
(19,435 |
) |
-9.8 |
% |
$ |
353,772 |
|
$ |
418,533 |
|
$ |
(64,761 |
) |
-15.5 |
% |
|||||
|
Total Direct Margin |
|
47.3 |
% |
|
42.3 |
% |
|
46.0 |
% |
|
43.2 |
% |
|||||||||||||||
|
Indirect Overhead |
|
48,111 |
|
|
54,137 |
|
|
6,026 |
|
11.1 |
% |
|
100,803 |
|
|
127,700 |
|
|
26,897 |
|
21.1 |
% |
|||||
|
Adjusted EBITDA |
(a) (d) |
$ |
131,316 |
|
$ |
144,725 |
|
$ |
(13,409 |
) |
-9.3 |
% |
$ |
252,969 |
|
$ |
290,832 |
|
$ |
(37,863 |
) |
-13.0 |
% |
||||
|
Adjusted EBITDA Margin % |
|
34.6 |
% |
|
30.7 |
% |
|
3.9 |
% |
|
32.9 |
% |
|
30.0 |
% |
|
2.9 |
% |
|||||||||
|
Adjusted Free Cash Flow |
(a) (e) |
$ |
88,703 |
|
$ |
59,069 |
|
$ |
29,634 |
|
50.2 |
% |
$ |
151,488 |
|
$ |
112,548 |
|
$ |
38,940 |
|
34.6 |
% |
||||
|
Net Debt |
(a) |
||||||||||||||||||||||||||
|
Term Note |
$ |
716,000 |
|
$ |
546,000 |
|
$ |
(170,000 |
) |
-31.1 |
% |
||||||||||||||||
|
ABL |
|
130,041 |
|
|
164,861 |
|
|
34,820 |
|
21.1 |
% |
||||||||||||||||
|
Total Outstanding Debt |
$ |
846,041 |
|
$ |
710,861 |
|
$ |
(135,180 |
) |
-19.0 |
% |
||||||||||||||||
|
Less: Cash |
|
(5,988 |
) |
|
(10,701 |
) |
|
(4,713 |
) |
-44.0 |
% |
||||||||||||||||
|
Net Debt |
$ |
840,053 |
|
$ |
700,160 |
|
$ |
(139,893 |
) |
-20.0 |
% |
||||||||||||||||
|
Footnotes: |
|||||||||||||||||||||||||||
|
(a) |
All 2019 figures presented are preliminary, subject to change, and are unaudited. Material changes may result from year-end 2019 audit procedures. | ||||||||||||||||||||||||||
|
(b) |
2018 results include certain pro forma adjustments related to acquisition accounting. | ||||||||||||||||||||||||||
|
(c) |
SaaS Products consists of Thryv and Thryv Leads. Thryv revenue for Q2 2019 and 2018 was $26,344 and $26,590, and for YTD 2019 and 2018 was $53,044 and $50,458, respectively. Thryv Leads revenue for Q2 2019 and 2018 was $6,764 and $242, and for YTD 2019 and 2018 was $12,301 and $242, respectively. | ||||||||||||||||||||||||||
|
(d) |
Adjusted EBITDA excludes interest, taxes, depreciation and amortization, and other non-cash/non-recurring charges, consisting of business restructuring and integration related activities, which includes exit and disposal costs associated with closing office facilities and reduction of workforce to achieve operational efficiencies, long-term incentive compensation, and pension expense. | ||||||||||||||||||||||||||
|
(e) |
Adjusted Free Cash Flow reflects cash generated from operating activities, less capital expenditures, adjusted to exclude the impact of cash used to repurchase stock option awards in the May 2019 stock tender. | ||||||||||||||||||||||||||
________________
1 SaaS Products consists of Thryv and Thryv Leads.
Earnings Conference Call Information
Thryv, Inc. will host an investor conference call at 9 a.m. CDT on Wednesday, August 7, 2019. Individuals within the United States can access the conference call by dialing (888) 603-6873. International participants should dial (973) 582-2706. The passcode is: 7867982.
Basis of Presentation and Non-GAAP Financial Measures
The financial information accompanying this release provides a reconciliation of GAAP to non-GAAP and adjusted pro forma non-GAAP results. Thryv believes that the use of non-GAAP financial measures provides useful information to investors to gain an overall understanding of its current financial performance. Specifically, Thryv believes the non-GAAP results provide useful information to management and investors by excluding certain nonrecurring items that Thryv believes are not indicative of its core operating results. In addition, non-GAAP financial measures are used by management for budgeting and forecasting as well as subsequently measuring Thryv’s performance, and Thryv believes that non-GAAP results provide investors with financial measures that most closely align to its internal financial measurement processes.
About Thryv®
Thryv® builds and owns the simple, easy-to-use software that helps small business owners with the daily demands of running a business; and allows them to take control and be more successful. Thryv provides modernized business functions allowing them to manage their time, communicate with clients, and get paid. These include building a digital customer list, communicating with customers via email and text, updating business listings across the internet, accepting appointments, sending notifications and reminders, managing ratings and reviews, generating estimates and invoices, processing payments, and issuing invoices and coupons.
Thryv delivers business services to more than 400,000 small businesses across America that enable them to compete and win in today’s economy.
Thryv also provides consumer services through our market-leading search, display and social products—and connects local businesses via The Real Yellow Pages® from the over 25 million monthly visitors of DexKnows.com®, Superpages.com® and yellowpages.com search portals; and local print directories. For more information about the company, visit thryv.com.
Forward-Looking Statements
Some statements included in this release constitute forward-looking statements. Statements that include the words “may”, “will”, “could”, “should”, “would”, “believe”, “anticipate”, “forecast”, “estimate”, “expect”, “preliminary”, “intend”, “plan”, “project”, “outlook” and similar statements of a future or forward-looking nature identify forward-looking statements. You should not place undue reliance on these statements, as they are not guarantees of future performance. Forward-looking statements provide current expectations with respect to our financial performance and future events with respect to our business and industry in general. Forward-looking statements are based on certain assumptions and include any statement that does not directly relate to any historical or current fact. Accordingly, there are or will be important factors that could cause our actual results to differ materially from those indicated in these statements. We believe that these factors include, but are not limited to, the risks related to the following: the Company’s ability to maintain adequate liquidity to fund operations; the Company’s future operating and financial performance; limitations on our operating and strategic flexibility and the ability to operate our business, finance our capital needs or expand business strategies under the terms of our credit facilities; our ability to retain existing business and obtain and retain new business; general economic or business conditions affecting the markets we serve; declining use of print yellow page directories by consumers; our ability to collect trade receivables from clients to whom we extend credit; credit risk associated with our reliance on small and medium sized businesses as clients; our ability to attract and retain key managers; increased competition in our markets; our ability to obtain future financing due to changes in the lending markets or our financial position; our ability to maintain agreements with major Internet search and local media companies; reduced advertising spending and increased contract cancellations by our clients, which causes reduced revenue; and our ability to anticipate or respond effectively to changes in technology and consumer preferences. All subsequent written and oral forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by such cautionary statements.
If one or more events related to these or other risks or uncertainties materialize, or if our underlying assumptions prove to be incorrect, actual results may differ materially from what we anticipate. All forward-looking statements included in this press release are expressly qualified in their entirety by the foregoing cautionary statements. These forward-looking statements speak only as of the date hereof and, other than as required by law, we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
View source version on businesswire.com: https://www.businesswire.com/news/home/20190726005410/en/