Thryv Holdings, Inc. (NASDAQ:THRY) Q2 2024 Earnings Conference Call August 1, 2024 8:30 AM ET

Company Participants

Cameron Lessard – Assistant VP, IR & Treasury
Joe Walsh – Chairman & CEO
Paul Rouse – CFO

Conference Call Participants

Arjun Bhatia - William Blair
Scott Berg - Needham & Company
Daniel Moore - CJS Securities
Robert Oliver - Robert W. Baird
Zachary Cummins - B. Riley Securities

Operator

Thank you for standing by. My name is Laila, and I will be your conference operator today. At this time, I would like to welcome everyone to Thryv's Second Quarter 2024 Earnings Call. All lines have been placed on mute to prevent any background noise. After the speaker’s remarks there will be a question-and-answer session. [Operator Instructions]. Thank you. I would now like to turn the conference over to Cameron Lessard, Head of IR. You may begin.

Cameron Lessard

Thank you, operator. Hello, and good day to everyone. Welcome to Thryv's second 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 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. With that introduction, 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 second quarter results. SaaS revenue grew by 25% year-over-year to $77.8 million and within our guidance range. SaaS adjusted gross margin increased 460 basis points year-over-year to 69.7%. SaaS EBITDA outperformed significantly, growing over 60% year-over-year to $10 million and ending the quarter with a 13.1% adjusted EBITDA margin. That's the highest point we've reached as a public company.

I'll let Paul get more into the numbers. But now I want to dive into some exciting metrics and updates about the business. Once again, we delivered excellent subscriber growth. We were up 52%, ending at 85,000 clients as we continue to be successful in upgrading our marketing services clients to our SaaS platform. This milestone is driven by our strategic transition of legacy marketing services clients to our innovative SaaS platform. A key factor in this success is our recently launched marketing center, which empowers businesses to efficiently manage advertising campaigns, enhance their online presence, and make insightful data-driven decisions. This tool is not just a product, it's a game changer that positions our clients for sustained success in a digital-first world.