Thryv Holdings, Inc. (NASDAQ:THRY) Q3 2023 Earnings Conference Call November 2, 2023 8:30 AM ET

Company Participants

Cameron Lessard - Head, Investor Relations

Joe Walsh - Chairman and CEO

Paul Rouse - Chief Financial Officer

Conference Call Participants

Arjun Bhatia - William Blair

Scott Berg - Needham & Company

Robert Oliver - Baird

Zach Cummins - B. Riley Securities

Daniel Moore - CJS

Operator

Thank you for holding, and welcome everyone, to the Thryv Third Quarter 2023 Earnings Call. [Operator Instructions]

I will now turn the call over to Cameron Lessard, Head of Investor Relations. Mr. Lessard, please go ahead.

Cameron Lessard

Thank you, operator. Hello, and good day to everyone. Welcome to Thryv's third quarter 2023 earnings conference call. On the call today are Joe Walsh, Chairman and Chief Executive Officer; and Paul Rouse, Chief Financial Officer. A copy of our earnings press release and investor presentation can be found on our website at thryv.com or in the Investors section at investor.thryv.com.

Please acknowledge, comments made on today's call and responses to your questions may contain forward-looking statements about the operations and future results of the company. These statements are subject to the risks and uncertainties described in the company's earnings release and other filings with the SEC. Thryv has no obligation to update the information presented on this conference call.

Finally, our speakers will reference certain non-GAAP financial measures, which we believe will provide useful information for investors. Reconciliation of those measures to GAAP will be posted on our website.

With that introduction, I would like to turn the call over to Chairman and CEO, Joe Walsh.

Joe Walsh

Good morning, Cameron, and thank you all for joining us on the call today to discuss our third quarter results. I'd like to dive in here with 2 big ideas. The first is our SaaS revenue beat guidance on both the revenue and the EBITDA line, all while carrying additional overhead that was allocated because we had lesser revenue in Marketing Services. So this is really a standout quarter and it shows the strength that's developing in our SaaS business.

Secondly, we finally got behind us, this looming third quarter we've been talking about for well over a year, where revenue recognition was going to be light for the quarter and would optically make it look like we had weak revenue. So we generated roughly $7 million in adjusted EBITDA, but $37 million in cash flow. And so it sort of underscores the strength of this overall business and the management team is very much in control of the cost and able to look, in this case, more than a year ahead and tell you how this is going to turn out. So we're using that cash to strengthen our balance sheet to pay down debt that shows kind of the strength of the Marketing Services business, even though it's declining, still very, very resilient and very forecastable.