Core Insights - The report provides a comprehensive assessment of the Long QT Syndrome (LQTS) market, focusing on epidemiology, treatment landscape, unmet needs, emerging therapies, and value and access [2][3][4] Disease Overview - LQTS is identified as a rare congenital cardiac arrhythmia characterized by prolonged recovery in cardiac action potential, which can lead to fatal arrhythmias [3] Epidemiology - The report includes an analysis of the prevalence and incidence of LQTS in the US and EU5, detailing diagnosed and drug-treated cases [5][6] Current Treatment - The standard treatment for LQTS is beta blockers, which effectively manage most cases, particularly LQTS type 1, despite side effects such as fatigue and depression [4] - Surgical options like implantable cardioverter-defibrillators (ICDs) and left cardiac sympathetic denervation (LCSD) are considered for high-risk patients who do not respond to beta blockers [4][7] Unmet Needs - There is a significant need for additional pharmaceutical treatments to reduce reliance on surgical options for refractory patients, as many patients experience side effects from current treatments [4][8] Pipeline Analysis - The clinical pipeline for LQTS treatments is sparse, with only one industry-sponsored drug currently in development, indicating a potential wait of five or more years for new therapies [4][5] Value and Access - The report reviews the evidence required to communicate the value of treatments to stakeholders, including providers and payers, and compares treatment pricing in the U.S. [8]

Khanchit Khirisutchalual Investment Thesis Last month I shared my bullish investment thesis on Thryv (NASDAQ:THRY) addressing the main concerns that investors have, especially related to the company's debt. I highlighted the positive impact from the refinancing of its debt and my expectation for continued deleveraging coupled with profitable growth in its SaaS business. Based on my valuation estimates, I set a target price range of $26 to $36 per share for the company by 2026, which presented significant up ...

thryv Investor Presentation 2nd QUARTER 2024 Add Staff UPGRADI 12:34 box - all & III thryv X Hizh Thry 42; Reply All Products The In Integration about it work of t/11k/3Q6JUA/2TdigUMio112/06/21580/12/08/21593/033549 Phone & Video Calls Lindsey Dias 3:45 PM 're welcome, Lindal Your accor ©2024 Thryv, Inc. All Rights Reserved. Exhibit 99.2 Safe Harbor This Presentation may include certain forward-looking statements, including, without limitation, statements concerning the conditions of our industry and our op ...

Thryv Holdings, Inc. (THRY) came out with quarterly earnings of $0.33 per share, missing the Zacks Consensus Estimate of $0.41 per share. This compares to earnings of $0.43 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -19.51%. A quarter ago, it was expected that this company would post earnings of $0.37 per share when it actually produced earnings of $0.22, delivering a surprise of -40.54%. Over the last four quarters, the ...

Revenue and Profit Performance - Revenue for Q2 2024 was $224.1 million, a decrease of 10.9% compared to $251.4 million in Q2 2023[8] - Net income for Q2 2024 was $5.5 million, a significant decline from $16.0 million in Q2 2023[8] - Gross profit for Q2 2024 was $148.6 million, down 7.2% from $160.1 million in Q2 2023[8] - Operating income for Q2 2024 was $31.3 million, slightly up from $30.7 million in Q2 2023[8] - Basic net income per share for Q2 2024 was $0.15, down from $0.46 in Q2 2023[8] - Net income for the six months ended June 30, 2024, was $13.97 million, a decrease from $25.29 million in the same period in 2023[15] - Net income for the six months ended June 30, 2024, was $13.972 million, compared to $25.292 million for the same period in 2023[82] - The company's basic net income per share for the six months ended June 30, 2024, was $0.39, down from $0.73 in the same period in 2023[82] - The company's diluted net income per share for the six months ended June 30, 2024, was $0.37, compared to $0.68 in the same period in 2023[84] - Revenue decreased by $27.3 million, or 10.9%, for the three months ended June 30, 2024 compared to the three months ended June 30, 2023[135] - Thryv Marketing Services revenue decreased by $42.7 million, or 22.6%, for the three months ended June 30, 2024 compared to the three months ended June 30, 2023[136] - Thryv SaaS revenue increased by $15.3 million, or 24.6%, for the three months ended June 30, 2024 compared to the three months ended June 30, 2023[135] - Print revenue decreased by $3.9 million, or 4.5%, for the three months ended June 30, 2024 compared to the three months ended June 30, 2023[136] - Thryv Marketing Services revenue decreased by $69.0 million (18.4%) for the six months, while Thryv SaaS revenue increased by $29.7 million (24.3%)[154] - Gross profit decreased by $12.7 million (4.0%) for the six months ended June 30, 2024, compared to the same period in 2023, primarily due to a decline in Marketing Services revenue, partially offset by SaaS revenue growth and cost-saving initiatives[161] - Gross margin increased by 260 basis points to 66.0% for the six months ended June 30, 2024, compared to 63.4% in 2023[161] - Adjusted Gross Profit for the six months ended June 30, 2024, was $314.2 million, with an Adjusted Gross Margin of 68.7%, compared to $329.8 million and 66.4% in 2023[179][180] Segment Performance - Thryv Marketing Services segment revenue for Q2 2024 was $146.3 million, a decrease from $189.0 million in Q2 2023[107] - Thryv SaaS segment revenue for Q2 2024 was $77.8 million, an increase from $62.5 million in Q2 2023[108] - Total revenue for Q2 2024 was $224.1 million, down from $251.4 million in Q2 2023[101] - Thryv Australia contributed 16.9% of total revenue in Q2 2024, down from 18.9% in Q2 2023[103] - Segment Adjusted EBITDA for Q2 2024 was $59.3 million, compared to $69.4 million in Q2 2023[100] - Thryv Marketing Services segment gross profit for Q2 2024 was $96.3 million, down from $120.9 million in Q2 2023[97] - Thryv SaaS segment gross profit for Q2 2024 was $52.3 million, up from $39.2 million in Q2 2023[97] - Digital revenue within Thryv Marketing Services was $63.7 million in Q2 2024, down from $102.5 million in Q2 2023[101] - International revenue for Q2 2024 was $46.0 million, down from $53.6 million in Q2 2023[103] - The company serves approximately 310,000 SMB clients globally through its two business segments[106] - SaaS clients increased by 29 thousand, or 52%, as of June 30, 2024 compared to June 30, 2023[121] - Marketing Services clients decreased by 77 thousand, or 22%, as of June 30, 2024 compared to June 30, 2023[121] - Total clients decreased by 68 thousand, or 18%, as of June 30, 2024 compared to June 30, 2023[122] - Monthly ARPU for Marketing Services decreased by $21, or 13%, for the three months ended June 30, 2024 compared to the three months ended June 30, 2023[124] - Monthly ARPU for SaaS decreased by $44, or 12%, during the three months ended June 30, 2024 compared to the three months ended June 30, 2023[125] - Print revenue declined by 33% for the quarter due to secular decline in industry demand, despite an increase in published directories[137] - Digital revenue decreased by $38.8 million (37.9%) for the quarter, driven by declining Marketing Services client base and competition from Google, Yelp, and Facebook[138] - Thryv SaaS revenue increased by $15.3 million (24.6%) for the quarter, driven by higher demand for SaaS solutions and strategic client conversion from Marketing Services[139] - Digital revenue decreased by $72.4 million (34.4%) for the six months, driven by client base decline and competition, as well as strategic client upgrades to SaaS solutions[157] Financial Position and Assets - Total current assets as of June 30, 2024 were $260.6 million, down from $266.9 million at the end of 2023[10] - Total liabilities as of June 30, 2024 were $602.4 million, compared to $630.5 million at the end of 2023[10] - Cash and cash equivalents decreased to $15.5 million as of June 30, 2024 from $18.2 million at the end of 2023[10] - Accounts receivable decreased to $193.7 million as of June 30, 2024 from $205.5 million at the end of 2023[10] - Total stockholders' equity increased to $183.1 million as of June 30, 2024 from $152.7 million at the end of 2023[10] - Total Stockholders' Equity increased from $167,066 thousand as of March 31, 2024 to $183,060 thousand as of June 30, 2024, reflecting a growth of $15,994 thousand[12] - Net income for the three months ended June 30, 2024 was $5,548 thousand, contributing to the increase in Total Stockholders' Equity[12] - Additional Paid-in Capital grew from $1,159,754 thousand to $1,170,798 thousand during the three months ended June 30, 2024, an increase of $11,044 thousand[12] - Treasury Stock decreased by $670 thousand, from $(488,087) thousand to $(488,757) thousand, due to the purchase of treasury stock[12] - Accumulated Deficit improved from $(489,778) thousand to $(484,230) thousand, a reduction of $5,548 thousand, primarily due to net income[12] - For the six months ended June 30, 2024, Net income was $13,972 thousand, significantly contributing to the increase in Total Stockholders' Equity from $152,700 thousand to $183,060 thousand[13] - The company's cash, cash equivalents, and restricted cash totaled $20.998 million as of June 30, 2024, up from $17.595 million in 2023[23] - The company's fixed assets and capitalized software additions were $16.23 million for the six months ended June 30, 2024, compared to $14.02 million in 2023[15] - The company's deferred income taxes for the six months ended June 30, 2024, were $(24.06) million, compared to $(9.135) million in 2023[15] - The company's unrecognized tax benefits as of June 30, 2024, were $18.1 million, up from $17.1 million as of December 31, 2023[88] - The company's unrecognized stock-based compensation expense related to unvested RSUs as of June 30, 2024, was approximately $19.1 million[74] - The company's unrecognized stock-based compensation expense related to unvested PSUs as of June 30, 2024, was approximately $15.1 million[77] - The company's unrecognized stock-based compensation expense related to unvested stock options as of June 30, 2024, was approximately $0.2 million[78] - The company repurchased approximately 26,495 shares of its outstanding common stock on June 20, 2024, for a total purchase price of approximately $0.5 million[83] - The company's share repurchase program, authorized on April 30, 2024, allows for the repurchase of up to $40 million in shares of common stock through April 30, 2029[80] - The company had $39.5 million remaining under its share repurchase authorization as of June 30, 2024[204] Debt and Financing - Total debt obligations as of June 30, 2024, were $342.1 million, compared to $348.9 million as of December 31, 2023[52] - The New Term Loan Facility has an aggregate principal amount of $350.0 million, with 31.8% held by a related party as of June 30, 2024[53] - The New Term Loan Facility requires mandatory amortization payments of $52.5 million per year for the first two years and $35.0 million per year thereafter[54] - Net proceeds from the New Term Loan were $337.6 million, used to repay the $300.0 million outstanding principal balance of the Prior Term Loan[55] - The New ABL Facility has a borrowing base availability of $64.8 million, with $54.2 million available to be drawn as of June 30, 2024[63] - The Company recorded accrued interest of $0.2 million as of June 30, 2024, compared to $1.1 million as of December 31, 2023[58] - The Company was in compliance with its New Term Loan and ABL Facility covenants as of June 30, 2024, and expects to remain compliant for the next twelve months[60][66] - The company entered into a New Term Loan Facility of $350.0 million on May 1, 2024, with 31.8% held by a related party, and it matures on May 1, 2029[189][190] - The company entered into a New ABL Facility of $85.0 million on May 1, 2024, which matures on May 1, 2028, with $54.2 million available to be drawn as of June 30, 2024[191][192] - Total recorded debt outstanding as of June 30, 2024, was $342.1 million, comprising $336.4 million under the New Term Loan and $18.0 million under the New ABL Facility[193] - A hypothetical 100 basis point increase in interest rates would increase the company's annual interest expense by approximately $3.5 million based on debt outstanding as of June 30, 2024[196] Expenses and Costs - Cost of services decreased by $15.8 million (17.3%) for the quarter, primarily due to strategic cost-saving initiatives and reduced printing, distribution, and digital fulfillment costs[140] - Sales and marketing expenses decreased by $10.3 million (13.6%) for the quarter, driven by reduced employee-related costs, sales commissions, and advertising expenses[143] - Interest expense decreased by $4.1 million (25.3%) for the quarter, due to lower outstanding debt balances and reduced interest rates[145] - Adjusted EBITDA decreased by $10.1 million (14.6%) for the quarter, primarily due to the decline in Marketing Services, partially offset by SaaS growth[150] - Sales and marketing expenses decreased by $16.5 million (10.9%) for the six months ended June 30, 2024, driven by reduced employee-related costs, sales commissions, and advertising expenses[162] - General and administrative expenses increased by $2.9 million (2.8%) for the six months ended June 30, 2024, primarily due to higher employee-related costs, severance expenses, and stock-based compensation[163] - Interest expense decreased by $7.2 million (22.1%) for the six months ended June 30, 2024, due to lower outstanding debt balances and reduced interest rates[164] - Adjusted EBITDA decreased by $14.5 million (11.3%) for the six months ended June 30, 2024, driven by a decline in the Thryv Marketing Services segment, partially offset by growth in the Thryv SaaS segment[168] - The company's effective tax rate (ETR) was 46.2% for the six months ended June 30, 2024, compared to 4.1% in 2023, influenced by state taxes, non-deductible executive compensation, and debt refinancing impacts[167] - Loss on early extinguishment of debt was $6.6 million for the six months ended June 30, 2024, related to debt refinancing[173] - Other components of net periodic pension cost increased by $1.2 million for the six months ended June 30, 2024, due to the absence of prior-year settlement and remeasurement gains[165] - Stock-based compensation expense for the six months ended June 30, 2024, was $11.642 thousand, reflecting the company's investment in employee incentives[13] - Stock-based compensation expense for the six months ended June 30, 2024, was $11.64 million, up from $11.19 million in 2023[15] - Stock-based compensation expense for the six months ended June 30, 2024, was $11.6 million, compared to $11.2 million for the same period in 2023[71] - The Company's net periodic pension cost for the six months ended June 30, 2024, was $3.2 million, compared to $1.9 million for the same period in 2023[68] - The Company expects to contribute approximately $0.5 million to non-qualified pension plans for fiscal year 2024[69] Cash Flow and Investments - Net cash provided by operating activities for the six months ended June 30, 2024, was $27.66 million, compared to $57.74 million in 2023[15] - The company acquired Yellow, a New Zealand marketing services company, for $8.9 million in cash on April 3, 2023, expanding its market share and client base[27] - Goodwill recognized from the Yellow acquisition was $5.1 million, allocated to the Thryv Marketing Services segment and not deductible for income tax purposes[29] - Net cash provided by operating activities decreased by $30.1 million, or 52.1%, for the six months ended June 30, 2024 compared to the same period in 2023, primarily due to changes in working capital and higher tax payments of $13.3 million[186] - Net cash used in investing activities decreased by $6.9 million, or 29.8%, for the six months ended June 30, 2024, primarily due to $8.9 million of cash paid related to the Yellow Acquisition in 2023[187] - Net cash used in financing activities decreased by $24.4 million, or 69.9%, for the six months ended June 30, 2024, primarily due to $20.7 million of net proceeds from the New Term Loan[188] - The company repurchased 26,495 shares of common stock at an average price of $18.83 per share during the quarter ended June 30, 2024, under a $40 million share repurchase program[204] Intangible Assets and Goodwill - Goodwill balance decreased from $302.4 million as of December 31, 2023 to $301.0 million as of June 30, 2024, primarily due to foreign currency translation effects[43] - Amortization expense for intangible assets for the three and six months ended June 30, 2024 was $5.1 million and $10.5 million, respectively, compared to $6.5 million and $12.7 million for the same periods in 2023[45] - The company's total intangible assets decreased from $18.8 million as of December 31, 2023 to $6.6 million as of June 30, 2024, with a weighted average remaining amortization period of 1.5 years[46][47] - Estimated future amortization expense for intangible assets is $4.2 million for the remainder of 2024 and $1.9 million for 2025[48] Credit and Liabilities - The allowance for credit losses increased from $14.4 million as of June 30, 2023 to $18.1 million as of June 30, 2024, with $18.0 million attributable to accounts receivable[49][50] - Accrued liabilities increased from $105.9 million as of December 31, 2023 to $110.2 million as of June 30, 2024, primarily due to an increase in accrued taxes[51] - The fair value of the New Term Loan and

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. This marks the seventh consecutive year that Thryv has earned a spot on the prestigious list. "At Thryv we're committed to helping small businesses modernize their operations and grow their business," said Thryv Chief Revenue Officer Jim McCusker. "Our Business Advisors serve as dependable partners t ...

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)