Thryv Holdings, Inc. (NASDAQ:THRY) Q1 2024 Earnings Conference Call May 2, 2024 8:30 AM ET

Company Participants

Cameron Lessard - Head, Investor Relations
Joe Walsh - Chairman & Chief Executive Officer
Paul Rouse - Chief Financial Officer

Conference Call Participants

Arjun Bhatia - William Blair
Scott Berg - Needham
Zach Cummins - B. Riley Securities
Daniel Moore - CJS Securities

Operator

Good morning. My name is Dee and I will be your conference operator today. At this time, I would like to welcome everyone to the Thryv Holdings’ First Quarter 2024 Earnings Call. [Operator Instructions] I would now like to turn the call over to Cameron Lessard. Please go ahead.

Cameron Lessard

Thank you, operator. Hello and good day to everyone. Welcome to Thryv’s first quarter 2024 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 investor 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 other filings with the SEC. Thryv has no obligation to update the information presented on the conference call today.

Before we get started, I wanted to provide an update on segment reporting. Historically, we've provided additional detail for the U.S. and international markets within each of our reporting segments. We're now transitioning to a two segment reporting structure, SaaS and Marketing Services, encompassing our global operations. It's important to note that this change only impacts how we report adjusted gross margin and adjusted EBITDA for historical segments. It will not impact how we report revenue under the disaggregation of revenue section in our quarterly filings. We are streamlining our approach to offer a unified perspective which we believe will better reflect our business model and enhance clarity in understanding our business and facilitate more efficient modeling.

I will now 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 first quarter results. For the first quarter, we delivered strong subscriber growth, ending the quarter with 70,000 clients. The year got off to a good start. We've got strong momentum across our SaaS business, and we'll be raising guidance for the year. I'm excited to share some great news about our center strategy. We're seeing significant traction. Over 8% of our clients now have two or more paid centers, up from practically zero this time last year. So we're really making some good progress there in selling additional centers to our customers. I think it's a really good indicator of the value proposition we're delivering and how sticky these products are.