Thryv and CEO Joe Walsh Issue Outlook for 2021 and Q4 Pre-Earnings Results from 2020
Software as a service (SaaS) company Thryv Holdings, Inc. has issued its unaudited, pre-earnings financial reports for 2020 and offers insight into its coming year. In a recent press release, the CEO of the end-to-end client experience platform noted he was pleased with Thryv’s performance in the previous year and has a positive outlook of growth for the coming months.
“It is energizing to start this new year in a position of strength, and as we move through 2021, we will look to capitalize on the momentum we are seeing,” said CEO of Thryv, Joe Walsh. “As we look forward to 2021 and future years, we believe we are well-positioned as a category leader in SaaS.”
Initial Fourth Quarter Results for 2020
In a press release issued February 22, Thryv released better-than-expected figures for the final quarter of the year. The company, which offers a suite of software programs mostly aimed at small businesses, including CRM, email marketing, website services, and SaaS services, reported key financial results.
In SaaS revenue, Thryv saw an 8 percent increase year-over-year to $34.9 million. The company initially stated it expected to earn $33 million during that time frame. In marketing services, the company’s guidance was between $190 to $200 million. It reached $212.1 million. Overall, the company reported fourth-quarter preliminary revenue at $246.9 million, which is significantly higher than its guidance range of $223 to $233 million.
For the fourth quarter, Thryv also reported a net income of $109.8 million and adjusted EBITDA at $71.6 million, which was above its range of $58 to $63 million.
Preliminary Fiscal Year Results
Also noted by the press release were Thryv’s preliminary fiscal year reports for 2020.. In SaaS revenue, it offered guidance of $128 million but believes it reached $129.8 million in revenue instead. Marketing services was the company’s largest sector by far. Thryv saw revenue hit $979.6 million after offering expected revenue at $955 to $965 million to stakeholders.
Total revenue reported by Thryv was $1,109,400 million for the year. That is well above its guidance of $1083 to $1093 million for the year. Net income for the fiscal year 2020 stood at $149.2 million, and adjusted EBITDA was $371.8 million.
Overall, its guidance was fairly accurate. The company’s ability to continuously meet customer needs, especially in the growing small business sector, is behind much of its growth.
Looking Back Through the Year
Thryv’s small business focus may be one of the factors enabling it to exceed expectations. The company, which has been in business for over 125 years, aims to provide small businesses with the tools and technology they need to compete. This includes a strong focus on local business automation tools that enable business owners to communicate, better manage time, and improve productivity. These tools, which are often reserved for larger companies who can afford them, gain access to them through the company’s platform.
During the fiscal year 2020, the company has several notable outcomes:
It saw SaaS ARPU grow by $293 in the final quarter, which was a significant increase from $260 in the company’s third quarter.
It also saw SaaS total clients growing to 44 thousand, which is flat when compared to the previous quarter.
Monthly churn in SaaS improved to 2.4 percent in the final quarter, which is lower than the 2.7 percent in the previous quarter.
The company also reported total debt repayment of $186.1 million for the year. The company’s term loan and ABL ending balances in the fourth quarter were $449.6 million and $79.2 million, respectively.
The data provided by Thryv for the fiscal year is unaudited results. These are based on management estimates that stem from just available information provided through the date of the release. The company has not provided final reports and will not do so for some time. Those results will be available in the company’s Annual Report on Form 10-K.
Looking Towards 2021 – What’s to Come
Thryv’s future looks bright for many reasons. According to the press release, the company is issuing guidance for the fiscal year 2021. It estimates:
$139 to $143 million in SaaS revenue
$740 to $760 million in marketing service revenue
The company is expecting to see positive results in the 2021 fiscal year. These are, of course, estimates and guidance.
More About Thryv’s Business Model
Thryv continues to passionately serve the small and medium-sized business market. It provides help to over 350,000 small business owners through a wide range of opportunities and services. The company’s goals include helping businesses to reach more customers while also working to stay organized within their communications efforts. It also offers a suite of tools to help small businesses get paid faster, putting money into their hands sooner.
The company’s marketing tools include helping to generate reviews for the business. Many small businesses are dependent on their ability to have reviews from customers as this directly influences everything from their online listings to their local ability to thrive.
Among the company’s services are customer relationship management, sales and payment services, and customer communication tools. It also offers online presence, social media, multi-location management, and document storage and sharing services. From putting in place marketing automation to speed results of any campaign to implementing tools on websites to allow for automatic scheduling and appointment reminders, Thryv gives small businesses the information and tools they need to compete as larger companies do.
Joe Walsh is Thryv’s Chief Executive Officer and President. He joined the company in 2014 and has helped to implement numerous strategies and changes to support growth and development. He is perhaps best known for his time at Yellowbook, where he was CEO and president. There, he grew the company from $38 million in revenue as a small public directory publisher to over $2 billion in revenue. He also was the CEO and chairman of Walsh Partners. That company focused on advisory and investment services.
Thryv Holdings, Inc. enables companies to manage the job they do in the most efficient manner possible. It also helps to support franchise operators and multi-location business owners with separate tools and software. The company aims to help small-to-medium-sized businesses grow by providing a more efficient and better quality of service to their customers. The guidance provided for 2021 and the reports from 2020 show that this company’s demand continues to grow as small businesses seek out solutions to connect, get paid, and manage their business efficiently.
This article does not necessarily reflect the opinions of the editors or management of EconoTimes