Companies were ranked in each of the categories above to determine the final list. The methodology is the product of years of research, and Selling Power continues to revise and refine the approach each year. The companies included are a mix of sizes ranging from medium to enterprise. About Thryv DALLAS, July 25, 2024 (GLOBE NEWSWIRE) -- Thryv® (NASDAQ: THRY), the provider of the leading small business software platform, announced today that it has made Selling Power's 60 Best Companies to Sell For list. Th ...

In addition to financial measures prepared in accordance with U.S. generally accepted accounting principles ("GAAP"), this presentation contains non-GAAP financial measures We present non-GAAP financial measures including adjusted EBITDA margin, adjusted EBITDA margin, adjusted gross profit, adjusted gross margin and free cash flow. The non-G financial information is presented for supplemental informational purposes only and is not intended to be considered in isolation or as a substitute for, or superior t ...

Financial Data and Key Metrics Changes - The company reported SaaS revenue of $74.3 million for Q1, a 24% year-over-year increase and slightly up sequentially [47] - Adjusted gross margin for SaaS increased by 420 basis points year-over-year but decreased by 130 basis points quarter-over-quarter to 68.4% [47] - First quarter SaaS adjusted EBITDA was $3.4 million, resulting in a margin of 4.6% [51] - Consolidated adjusted EBITDA was $54.1 million, representing a margin of 23% [54] - The net debt position was $341 million at the end of Q1, with a leverage ratio of 1.9 times net debt to EBITDA [55] Business Line Data and Key Metrics Changes - SaaS subscribers increased to approximately 70,000, a 30% year-over-year increase and 6% sequentially [53] - Marketing Services revenue for Q1 was $159.3 million, above guidance, with adjusted EBITDA of $50.7 million and a margin of 32% [54] - Marketing Services billings declined by 24% year-over-year to $136.8 million [54] Market Data and Key Metrics Changes - The company is transitioning from a legacy Marketing Services business to a SaaS-focused model, with significant traction in selling additional centers to existing customers [16][24] - The company is experiencing strong demand from small businesses moving to cloud solutions, which is driving growth [61] Company Strategy and Development Direction - The company aims to become predominantly a SaaS business, with expectations to exceed 50% SaaS revenue next year [38] - The strategy includes incentivizing multi-center sales to enhance customer engagement and revenue per user [19][20] - The company is actively looking for SaaS acquisition opportunities to enhance its growth strategy [31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the SaaS business's growth potential, citing strong subscriber growth and increased customer engagement [30][61] - The refinancing of debt is expected to provide more flexibility for capital allocation, including potential acquisitions and share buybacks [46][56] - Management acknowledged macroeconomic pressures but emphasized the resilience of their customer base [75] Other Important Information - The company has a new Chief Product Officer, Rees Johnson, who is expected to enhance the software platform [23] - The company is seeing a trend of customers purchasing multiple centers, indicating strong product adoption [70][72] Q&A Session Summary Question: How is the transition from Marketing Services to SaaS being received by legacy customers? - Management noted strong traction in selling the Marketing Center to legacy customers, facilitating easier transitions to SaaS solutions [30] Question: What is the impact of the debt refinance on capital allocation? - The refinance provides flexibility for acquisitions, share buybacks, and debt reduction, enhancing shareholder value [31][46] Question: Are there patterns in customer adoption of multiple centers? - Management observed that customers are increasingly purchasing multiple centers, with some opting for both the Business and Marketing Centers simultaneously [70][72] Question: What are the expectations for the Marketing Services business moving forward? - Management expects continued declines in Marketing Services revenue as the focus shifts to SaaS, but emphasized the importance of overall EBITDA growth [84]

PART I. FINANCIAL INFORMATION [Financial Statements](index=5&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited consolidated financial statements for the three months ended March 31, 2024, and 2023, including Statements of Operations, Balance Sheets, Changes in Stockholders' Equity, and Cash Flows, along with detailed notes, reflecting a Q1 2024 re-segmentation into Thryv Marketing Services and Thryv SaaS, and subsequent debt refinancing and a new share repurchase program | (in thousands, except per share data) | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :--- | :--- | :--- | | **Revenue** | $233,624 | $245,555 | | **Gross Profit** | $153,641 | $154,808 | | **Operating Income** | $31,134 | $30,785 | | **Net Income** | $8,424 | $9,314 | | **Diluted EPS** | $0.22 | $0.25 | | (in thousands) | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | **Total Current Assets** | $275,017 | $266,868 | | **Total Assets** | $786,835 | $783,170 | | **Total Current Liabilities** | $239,699 | $263,190 | | **Total Liabilities** | $619,769 | $630,470 | | **Total Stockholders' Equity** | $167,066 | $152,700 | | (in thousands) | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $5,438 | $32,311 | | **Net cash used in investing activities** | ($7,278) | ($5,136) | | **Net cash used in financing activities** | ($1,558) | ($17,055) | - In Q1 2024, the company changed its internal reporting structure, resulting in two reportable segments: Thryv Marketing Services and Thryv SaaS, with comparative prior periods recast to reflect this **change**[21](index=21&type=chunk)[98](index=98&type=chunk) - On May 1, 2024, the company **refinanced its debt**, entering into a **new $350.0 million Term Loan Agreement** and a **new $85.0 million ABL Credit Agreement**, which extended maturities to 2029 and 2028, respectively, and provided more favorable interest rates[103](index=103&type=chunk)[104](index=104&type=chunk)[105](index=105&type=chunk) - On April 30, 2024, the Board authorized a **new share repurchase program**, allowing the company to repurchase up to **$40.0 million** of its common stock through April 30, 2029[108](index=108&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=26&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses a **4.9%** year-over-year revenue **decrease** in Q1 2024, primarily due to a **14.2% decline** in the Thryv Marketing Services segment, which was partially offset by strong **24.0% growth** in the Thryv SaaS segment, with the company's strategy focusing on growing its SaaS business by converting existing Marketing Services clients, leading to a **12% decrease** in total clients driven by Marketing Services, while SaaS clients grew **30%**, and Adjusted EBITDA **decreased** by **7.4%** to **$54.1 million**, while maintaining **sufficient** liquidity and subsequently refinancing its debt on more favorable terms after the quarter's end [Overview and Key Business Metrics](index=26&type=section&id=Overview%20and%20Key%20Business%20Metrics) The company serves approximately **330,000** SMB clients through its Thryv Marketing Services and Thryv SaaS segments, with total clients **decreasing** by **12%** YoY to **328,000** as of March 31, 2024, driven by a **15% decline** in Marketing Services clients to **295,000**, while SaaS clients grew by **30%** to **70,000**, and Monthly ARPU for Marketing Services fell **13%** to **$145**, and SaaS ARPU **decreased 3%** to **$369**, reflecting a strategic push to convert clients at lower price points | (in thousands) | As of March 31, 2024 | As of March 31, 2023 | Change % | | :--- | :--- | :--- | :--- | | **Marketing Services Clients** | 295 | 348 | (15%) | | **SaaS Clients** | 70 | 54 | 30% | | **Total Clients** | 328 | 372 | (12%) | | (Monthly) | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | Change % | | :--- | :--- | :--- | :--- | | **Marketing Services ARPU** | $145 | $167 | (13%) | | **SaaS ARPU** | $369 | $379 | (3%) | - The **decrease** in SaaS ARPU resulted from a strategic decision to accelerate the conversion of clients from digital Marketing Services solutions to SaaS solutions at a price lower than some existing SaaS products[128](index=128&type=chunk) [Results of Operations](index=30&type=section&id=Results%20of%20Operations) For Q1 2024, total revenue **decreased 4.9%** YoY to **$233.6 million**, driven by a **14.2% decline** in Thryv Marketing Services revenue to **$159.3 million**, which saw a **31.0% drop** in Digital revenue partially offset by a **9.4% rise** in Print revenue due to publication cycle timing, while Thryv SaaS revenue grew **24.0%** to **$74.3 million**, and gross margin **improved** by **280** basis points to **65.8%**, reflecting the shift towards higher-margin SaaS products, and Adjusted EBITDA **decreased 7.4%** to **$54.1 million** | (in thousands) | Q1 2024 | Q1 2023 | Change $ | Change % | | :--- | :--- | :--- | :--- | :--- | | **Thryv Marketing Services** | $159,302 | $185,626 | ($26,324) | (14.2)% | | **Thryv SaaS** | $74,322 | $59,929 | $14,393 | 24.0% | | **Total Revenue** | $233,624 | $245,555 | ($11,931) | (4.9)% | - Marketing Services revenue **decline** was driven by a **$33.6 million** (**31.0%**) **decrease** in Digital revenue, stemming from client base **decline**, competition, and a strategic upgrade of clients to SaaS solutions, partly offset by a **$7.3 million** (**9.4%**) **increase** in Print revenue due to the timing of directory publications[138](index=138&type=chunk)[140](index=140&type=chunk) - SaaS revenue **increased** by **24.0%** due to higher demand as SMBs adopt cloud platforms, a focus on higher-value clients, and the strategic conversion of Marketing Services clients[141](index=141&type=chunk) - Gross margin **increased** to **65.8%** from **63.0%** YoY, primarily due to an **increased** sales mix of higher-margin SaaS solutions and the reduction of low-margin third-party services[144](index=144&type=chunk) - Adjusted EBITDA **decreased** by **$4.4 million** (**7.4%**) YoY, driven by the **decline** in the Marketing Services segment, which was partially offset by **growth** in the SaaS segment[150](index=150&type=chunk) [Liquidity and Capital Resources](index=35&type=section&id=Liquidity%20and%20Capital%20Resources) The company believes its liquidity is **sufficient** for the next **12** months, with net cash from operating activities **decreasing significantly** to **$5.4 million** in Q1 2024 from **$32.3 million** in Q1 2023, mainly due to working capital timing differences, and total debt at **$347.6 million** at quarter-end, followed by a major debt refinancing on May 1, 2024, securing a **new $350.0 million term loan** and a **new $85.0 million ABL facility** with **improved** terms and extended maturities | (in thousands) | Q1 2024 | Q1 2023 | Change | | :--- | :--- | :--- | :--- | | **Cash from Operating Activities** | $5,438 | $32,311 | ($26,873) | | **Cash from Investing Activities** | ($7,278) | ($5,136) | ($2,142) | | **Cash from Financing Activities** | ($1,558) | ($17,055) | $15,497 | - The **$26.9 million decrease** in operating cash flow was primarily due to changes in working capital, impacted by the timing of annual bonus payments and the overall **decline** in sales[162](index=162&type=chunk) - On May 1, 2024, the company **refinanced its debt**, establishing a **new $350.0 million Term Loan Facility** maturing in 2029 and a **new $85.0 million ABL Facility** maturing in 2028[170](index=170&type=chunk)[171](index=171&type=chunk)[172](index=172&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=38&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company's primary market risks are interest rate fluctuations on its floating-rate debt and foreign currency exchange risk from its Australian and New Zealand operations, where a hypothetical **100** basis point **increase** in interest rates would **increase** annual interest expense by approximately **$3.6 million**, and the company does not currently use hedging instruments for foreign currency risk - The company is exposed to **interest rate risk** on its floating-rate debt, where a hypothetical **100** basis point **increase** in interest rates would **increase** annual interest expense by approximately **$3.6 million**, based on debt outstanding at March 31, 2024[175](index=175&type=chunk) - The company has **foreign currency risks** related to revenue and expenses denominated in Australian and New Zealand dollars but has not used hedging for these transactions to date[176](index=176&type=chunk)[177](index=177&type=chunk) [Controls and Procedures](index=38&type=section&id=Item%204.%20Controls%20and%20Procedures) Based on an evaluation conducted by management, including the CEO and CFO, the company's disclosure controls and procedures were deemed **effective** as of March 31, 2024, with **no material changes** to the internal control over financial reporting identified during the quarter - The principal executive officer and principal financial officer concluded that the company's disclosure controls and procedures were **effective** as of March 31, 2024[178](index=178&type=chunk) - There were **no changes** in internal control over financial reporting during the quarter ended March 31, 2024, that materially affected, or are reasonably likely to materially affect, internal controls[179](index=179&type=chunk) PART II. OTHER INFORMATION [Legal Proceedings](index=40&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various legal matters in the normal course of business, specifically referencing an **ongoing tax case** with the IRS concerning Section 199 deductions and R&D credits, for which the company has **reserved $26.6 million** as of March 31, 2024, with settlement discussions ongoing - The company is in **ongoing settlement negotiations** with the IRS regarding a tax case related to Section 199 deductions and research and development tax credits[92](index=92&type=chunk)[93](index=93&type=chunk) - As of March 31, 2024, the company has **reserved $26.6 million** in connection with the Section 199 disallowance, and a draft settlement document has been received but is not yet finalized[94](index=94&type=chunk)[96](index=96&type=chunk) [Risk Factors](index=40&type=section&id=Item%201A.%20Risk%20Factors) This section provides an updated risk factor concerning the company's use of artificial intelligence (AI), highlighting potential risks including competitive harm, reputational damage from inaccurate or biased AI-generated content, cybersecurity incidents, and emerging ethical and regulatory challenges associated with AI - The company has identified **new risks** associated with its use of artificial intelligence (AI), including competitive harm, reputational damage, legal liability, and cybersecurity incidents[181](index=181&type=chunk) - The rapid evolution of AI, including potential government regulation, will require significant resources to manage ethically and **effectively**[182](index=182&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=40&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported **no unregistered sales** of equity securities or use of proceeds during the quarter - **None reported** for the period[183](index=183&type=chunk) [Defaults Upon Senior Securities](index=40&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reported **no defaults** upon its senior securities - **None reported** for the period[184](index=184&type=chunk) [Mine Safety Disclosures](index=40&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is **not applicable** to the company - **Not Applicable**[185](index=185&type=chunk) [Other Information](index=40&type=section&id=Item%205.%20Other%20Information) The company reported that **none** of its officers or directors adopted or terminated a Rule 10b5-1 trading arrangement or a non-Rule 10b5-1 trading arrangement during the first quarter of 2024 - **No officers** or directors adopted or terminated a Rule 10b5-1 trading arrangement during the three months ended March 31, 2024[186](index=186&type=chunk) [Exhibits](index=41&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, with notable exhibits including the **new Term Loan Credit Agreement** and the **new ABL Credit Agreement**, both dated May 1, 2024, as well as required officer certifications - Key exhibits filed with this report include the **new Term Loan Credit Agreement** and **ABL Credit Agreement** from the May 1, 2024 refinancing[187](index=187&type=chunk)

Exhibit 10.2 EXECUTION CREDIT AGREEMENT by and among CITIZENS BANK, N.A., as Administrative Agent and Australian Security Trustee, CITIZENS BANK, N.A., as Lead Arranger, Book Runner, and Collateral Agent, CITIZENS BANK, N.A., as Syndication Agent, THE LENDERS THAT ARE PARTIES HERETO, as the Lenders, and THRYV, INC., and Each Other Entity From Time To Time Party Hereto as a Borrower, as Borrowers Dated as of May 1, 2024 TABLE OF CONTENTS Page | 1. | DEFINITIONS AND CONSTRUCTION | | --- | --- | | 1.1 | Defini ...

Financial Data and Key Metrics Changes - SaaS revenue for Q4 2023 was $74 million, a 25% increase year-over-year and a 10% increase sequentially, with full-year SaaS revenue growing 22% to $263.7 million [39][31] - SaaS adjusted gross margins improved to 70% in Q4, trending towards the long-term guidance of 75% [25][40] - The company generated $148 million in cash from operations and $115 million in free cash flow, allowing for significant debt retirement in 2023 [26] - Net loss for Q4 was $257.5 million, or a loss of $7.39 per diluted share, compared to a net loss of $50.4 million, or a loss of $1.47 per diluted share, in Q4 2022 [46] Business Line Data and Key Metrics Changes - SaaS adjusted EBITDA for Q4 was $6.5 million, exceeding guidance and resulting in an adjusted EBITDA margin of 8.8% [41] - Marketing services revenue for Q4 was $162.2 million, with full-year revenue at $653.2 million, both above guidance [43] - Marketing services billings declined by 23% year-over-year in Q4, aligning with the long-term vision of transitioning clients to SaaS [44] Market Data and Key Metrics Changes - SaaS subscribers reached approximately 66,000 at the end of Q4, a 27% year-over-year increase, while SaaS RPU decreased by 4% year-over-year to $370 [67] - Net dollar retention for Q4 was 96%, an increase of 500 basis points year-over-year, driven by upselling and cross-selling initiatives [68][57] Company Strategy and Development Direction - The company is transitioning from a legacy marketing services entity to a rapidly expanding SaaS business, with expectations that SaaS will represent approximately 40% of revenue in 2024 [58][96] - The introduction of new products like Marketing Center and Command Center is expected to enhance client experiences and drive growth in the SaaS business [38][70] - The company is focused on upgrading legacy clients to the Thryv platform, which is seen as a significant growth lever for 2024 [27][36] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the SaaS business's trajectory, indicating that the nadir of declining EBITDA has been reached and profitability is expected to improve [2][50] - The international market is performing well, with plans for expansion into new markets [77] - Management anticipates some noise in ARPU due to the introduction of new customers at lower price points, but expects overall growth in the long term [76][49] Other Important Information - The company recorded a non-cash impairment charge to goodwill of $268.8 million, attributed to the structural decline in the marketing services business [72] - The leverage ratio was 1.8 times net debt to EBITDA, well below the covenant of three times, indicating a strong financial position [73] Q&A Session Summary Question: How should we think about the migration of marketing services customers to the new platforms? - Management believes the entire base can eventually transition to the SaaS platform, but it will take time as this is a gradual process [6] Question: What resources are allocated for onboarding customers during this transition? - Management is focused on ensuring adequate resources are in place to support the transition and may require incremental investments to grow the SaaS business [7] Question: Has there been any change in incentives for legacy customers to accelerate their transition? - Management confirmed that they are offering viable products to retain clients long-term and facilitate their transition to the SaaS platform [9] Question: Can you discuss the growth in SaaS subscribers and any moving parts affecting this metric? - Management noted that the growth in SaaS subscribers is linked to the introduction of new products and the transition of legacy customers, which is expected to positively impact net dollar retention [11] Question: How does the company view customer growth versus ARPU in 2024? - Management indicated that while there may be pressure on new customer pricing, seasoned ARPU is showing strong growth, and they expect overall ARPU to improve as more customers transition to higher-value offerings [13][14]

Investor Presentation @2024 Thryv, Inc. All Rights Reserver Market data and industry information used throughout this Presentation are based on management's knowledge of the industry and the good fatth estimates of management. We also relied, to the extent available, upon management's review of independent incustry surveys and publications and other publicly available information prepared by a number of third-party sources. All of the market data and industry information used in this Presentation involves a ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K x ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to __________ Commission File Number: 001-35895 THRYV HOLDINGS, INC. (Exact name of registrant as specified in its charter) Delaware 13-2740040 (State or other jur ...

Exhibit 99.1 Thryv Grows SaaS Revenue 25% in Fourth Quarter 2023, Exceeds Full Year SaaS Guidance DALLAS, February 22, 2024 – Thryv Holdings, Inc. (NASDAQ:THRY) ("Thryv" or the "Company"), the provider of Thryv®, the leading small business software platform, reported SaaS revenue growth of 25% year- over-year in the fourth quarter of 2023. "We are proud to announce robust fourth-quarter and full-year results, marking another successful year for Thryv," said Joe Walsh, Thryv Chairman, and CEO. "We surpassed ...

Financial Data and Key Metrics Changes - The company generated approximately $7 million in adjusted EBITDA and $37 million in cash flow for Q3 2023, indicating strong cash management despite a light revenue recognition period [3] - Third quarter consolidated adjusted gross margin was 60%, with adjusted EBITDA of $7.3 million, representing an adjusted EBITDA margin of 4% [9] - The net debt position was $377 million at the end of Q3, with a leverage ratio of 1.8x net debt to EBITDA, well below the covenant of 3x [9] Business Line Data and Key Metrics Changes - SaaS revenue grew 19% year-over-year to $67.4 million, with an adjusted gross margin of approximately 67% [21][23] - SaaS subscribers increased to approximately 66,000, a 29% year-over-year growth, while ARPU decreased by 3% to $365 [8] - Marketing Services billings were $159.5 million, reflecting a 19% decline year-over-year [9] Market Data and Key Metrics Changes - The international business is developing positively, with all centers now available in all markets, contributing to optimism for future growth [11] - The company is facing FX pressure, particularly in Australia and New Zealand, impacting the Marketing Services outlook [10][80] Company Strategy and Development Direction - The company is focusing on its SaaS business, aiming for it to become the predominant revenue stream, with expectations of approaching 40% of total revenue next year [59] - A new commission structure for the Marketing Services sales force is being implemented to drive higher productivity and growth in the SaaS business [10][80] - The introduction of the Marketing Center is expected to enhance customer engagement and facilitate upselling opportunities [28][81] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term growth prospects of the SaaS business, anticipating revenue growth acceleration and margin expansion [12][24] - The macroeconomic environment remains challenging, but management believes there will be an acceleration in SaaS growth due to the full platform being sold in all markets [16][77] Other Important Information - The company has made $105 million in year-to-date term loan debt repayments in 2023, indicating a commitment to strengthening the balance sheet [9] - Approximately 8.3 million warrants expired unexercised, with minimal dilution and $15.8 million generated for debt paydown [26] Q&A Session Summary Question: What contributed to the strong net new customer additions in the SaaS business this quarter? - Management noted that the Marketing Center's closer alignment with customer needs has driven traction, and many new customers signed up at lower introductory prices, which is expected to improve ARPU over time [14] Question: Can you elaborate on the FX pressure affecting Marketing Services? - The FX pressure primarily relates to operations in Australia and New Zealand, and the company is restructuring its sales force to enhance productivity [15][80] Question: What is the outlook for Marketing Services EBITDA in 2024? - Management indicated that while there may be a slight recovery in Marketing Services due to more books being published, the focus will remain on growing the SaaS business [53][80] Question: How does the Command Center fit into the overall strategy? - The Command Center is still in beta, and while it has generated user interest, significant revenue is not expected until later periods as the company focuses on delivering value first [36][69] Question: What is the potential for further adoption of the Marketing Center within existing customers? - Management is optimistic about the potential for deeper penetration within the existing customer base, with nearly 400,000 customers and significant room for growth [39][81]