Thryv (THRY) 7 Nov 242024 Q3 Earnings call transcript

Thank you for standing by. My name is Kathleen, and I will be your conference operator today. At this time, I would like to welcome everyone to the Thryv third Quarter 2024 Earnings Call. [Operator Instructions] And now I would like to turn the call over to Cameron Lessard. Please go ahead.

everyone. day, good and Hello, Welcome to Conference XXXX Third Quarter Earnings Call. Thryv's in November in quarter the XX -- mind Keep X, acquisition results with announcement. Keap today October third Please unaudited is and the preliminary company on conjunction released

Joe other call at A the the has website Chief Thryv Officer. Executive Chairman with obligation the operations Please can our will may future described With the section to company's our uncertainties of no the the thryv.com the presented information earnings I Paul and On or update introduction, call. statements and now Joe? call and CEO, are contain your and Walsh, over Chief be investor the on conference forward-looking and company. turn presentation Rouse, risks and results comments on acknowledge call made at filings in are and Joe about that Chairman statements Walsh. today subject today's investor.thryv.com. the Financial copy Officer; to of press to SEC. release in Investors found and on the release responses These to questions earnings

to toward about was Third Rouse. company. that transform progress plan million rapidly a it results. our The today I'm Earnings publisher XXXX our CFO, software do we've market-leading regional year declining a turnaround. was global brought third since by team management Each made $XXX the at was Dex Paul to Thryv's point into take a Call. goal. Board directory year that steady XX and the to Together, declining Welcome Media our Quarter present ago, we'll joined quarter years by in

platform, and it, your recently, in solid with added I've converting first success. with business functions. modern as software And CRM marketing SaaS superpower, the zoo, has directory your hunting tools run to customers our business services customers called we've Our been grow

The customers ourselves. NDR small platform, a grow services expand We've miss be sped quarter we our has a cannibalized SaaS marketing on their customers services company. with our now this actually we growth with was These into These XXX% success in are up will that to us spend. guided We Our the future. had conversion. poised marketing modern elements guy. good

In XX% fact, XX% see in after to ensuing conversion. we the year growth this

adjusted company, they watch This As ARR in of SaaS multicenter. business now, land once see our the show beginning XX% growth. our converting a We to Approximately margins, of customers referrals achieved multiproduct future. shown lever key is XX% we we by paths in on was Rule gross XX zoo, hunting XX% SaaS engaged our our million from to This a clients. these to $XXX grow customers in one SaaS. now get We've are services EBITDA centers. to customers At of can the many now is upsell marketing margin, accounts. XX% performance

which added our like customers more While after quality -- financial meet made our growth Keap last And the talk over early us the I'll covers help XX,XXX new Paul? -- acquisition beginning week, about to is we gained it's in customers. through strategy stages, Paul new results. acquisitions we customers. product-led Keap

up and SaaS. third million beginning representing the into with XX% results, above of sequentially. in SaaS XX% year-over-year and dive was increase Let's revenue our quarter an $XX.X guidance,

third continued earlier in to and of which reach have EBITDA success driven quarter, future strategic SaaS significant SaaS the to of continued objectives, us offerings, points growth, increasing We're adjusted XXX points quarter-over-quarter XX.X%. XX.X%. our increase XXX than stems SaaS surpassed high-margin In EBITDA Our gross adjusted positions but seen year-over-year positive SaaS-adjusted our This have XX% exceeding not only profits. from of gross for $XX.X resulting impressive goal the margin improvement and basis million. XX% also with gross guidance by above year-over-year in in our a impact margins adjusted basis aligns a strongly margin This SaaS-adjusted anticipated. profitable has was our growth. delighted

growth, increase prior SaaS Rule in sequential earlier, quarter. the As delivered services This a our up subscriber we XX,XXX marketing EBITDA XX,XXX year-over-year successful the growth of XX, an strategy, growth strong and mentioned combination transitioning our company. execution we've clients of This our SaaS accelerated product Joe reflects achieved incredible subscribers, for strong platform. quarter, mix XX% strategic from a reaching and by the driven powerful reflects initiatives. milestone migration expanding XX% to primarily margins, of accomplishment In our third

the $XXX communicated, platform prior successful our consistently at migration points. bringing of it offerings. for to price pressure customers product to upsell ARPU our a temporary path through creates on getting onto customers accelerated a introductory strategically we've SaaS a platform the quarter $XXX of as tiered clear as quarter. for is on ARPU is result the direct was substantial volume This these our As compared strategy we're critical

value customer relationships and While of our in position given time us the building growth, over this the ARPU pressure our through confident trade-off to strategic that prioritizes established our paths this upgrade subscription ability creation. a for We some Marketing creates to we're Center. as magnitude long-term within near-term base view expand these

our and These long-term economics improvement This points more in significant to XXX% we're subscriber metrics retention, early entry our accelerated XXX points. growing end, a to expanded reinforce contributed expand in which an Importantly, our penetration migration quarter, demonstrating strategy. our the of beyond net initial land dollar in centers, third of adoption basis the of confidence in year-over-year. already increase paid product quarter At strong XX% X strategy. validation multicenter had base seeing or

to Moving over Marketing Services.

quarter was Third revenue million. $XX.X

XX%. was in adjusted Third quarter Services of EBITDA Marketing $X.X resulting an EBITDA margin million,

related was EBITDA new impact On intact remains main Marketing timing to with consolidated time-related acquisition-related Services cash this year the our quarter, expenses. this from full The the impact of variance. no client EBITDA guidance difference

XX% were decline billings representing services year-over-year. marketing quarter Third $XXX.X of a million,

impacted marketing ongoing transitioning our the billings platform. in success Marketing clients were by Our our to services SaaS Services

basis consolidated XX%, an adjusted quarter year-over-year. of Third margin gross increase was points XXX

million, the $XX.X of was an related adjusted to recognized ongoing We charge further representing a EBITDA of anticipate our margin adjusted Once EBITDA consolidated the noncash of structural $XX.X to charge business. fourth share is impairment don't XXXX. diluted quarter services This we charges. in impairment of per decline and similar the recorded again, Third noncash $X.XX marketing million, XX%. quarters XXXX impairment

at our position of million the third the quarter. was net Finally, end debt $XXX

Our leverage debt is which reduced to of net X.XXx well ratio covenant our EBITDA Xx. to below

balance full to us underscores term million on $XX.X and enabled amortization generate to performance free which prepay cash $XX.X million sheet. new year This of proactive commitment our financial the strong debt a in flow, loan. the to discipline we Our used financial healthy repayment

guidance for quarter. discuss let's the Now fourth

For revenue in quarter, expect of fourth we the $XX range $XX the million SaaS to million.

guidance $XXX.X are million million. our to year $XXX.X We raising range to full

adjusted million For of range expect SaaS EBITDA the the $XX.X to raising million and we full in million, year $X.X to quarter, to guidance $XX.X fourth are million. $XX.X range our we

the fourth $XX quarter, we expect adjusted Marketing revenue million. year, million the to million of $XXX million. the For Services full to $XXX to for range is in And range the $XX

million. in be to full the EBITDA $XXX year, expect range to we For $XXX of the adjusted Services Marketing million

acquisition all refinancing total which EBITDA the the balance financial the support to to our allowed put one strategy. strong great on investors. spring itself thank will $XX XX, that, steps generate December I'll was plans be M&A constrained. were that With this the accelerate equity completed revenue for adjusted turn in prior the invest reflects its we took net we approximately Joe deleveraging multiple to their extended our like as Keap, November Keap. the offering on week, remarks. over of our acquisition of our the and business, debt The Under in pretty as strategic our including to businesses. and Ahead facility. financing, existing with and sheet demand which company million the times subsequent in term de we from back and unlocked XXXX. million details essentially it of for of closed acquisition the and significantly in earlier shares to around in fund swept offering million issued to on the approximately we fourth to for equity accretive shape focus SaaS repayment, anticipate The and more of growth I'd deal opportunities, We Keap key investors which upsized only new more million for Keap refinancing an minimis efforts. finished initiate oversubscribed $XX flexibility maturities, further closing to acquisition, $X.X cash For integrate October debt our acquisition quarter, the the execute will ABL for Last rationale proceeds. follow-on and $XX SaaS and the us loan our we structure, the

We us a about Keap group, years gotten years bit I've have XX, or We've and it in And over really much Keap bigger lot acquiring that's We're sophisticated, again at within in and very of business businesses. to because what Mask, of enthused Keap. the the bit bit and about Co-Founder X, upmarket. X, touch, are a moving our automations over businesses. to as employee XX very, with X very conference, one work off and managers long provide time X, company. little combination the a some really talking goals, yet small they X deal a about we'd business something we for We still things these used. does met employees, that on potentially have very know of with stayed CEO, X developments main are interesting a our are are like well. that They so, And help more admired benefit. for simple this an been in a and kinds well long a last and Clate last little automations the bit little been industry. talked deal we have can bigger more or little the Their powerful, initially Thryv And looking does a and small for of sort around again, and XX, really we've Thryv really so. there of small

that these We to. have current many, customer can base we feel those sell automation of that many our we in

have way anywhere the not net near drive more to growth as channel, real but really build main at through able lift Their acquiring channels. attempted do gross the also dollar influencer got and a be And channel, flatter They've businesses partner XXXX partners. it in they're retention, which will certified will is to of it. idea revenue into good of about our we've being our of will beyond. there hundreds They flatter customers. partner we're has that excited They well. Keap has. this market at And Thryv. a the Thryv's very Keap been for be think is as products sell full to having sell and table and resellers that something have able from base. that their those putting it the will to A those on comes those margins partners from and help automation catalog and we customers we to So will lot on successful benefit of -- growth-oriented to deck drives that product

of we a product real the team size XX%. synergy have by there. there's about ours that and They think So increases engineering

about for they this go lot team. doing software they've run -- have do how work way they diligenced some how And looking a their got the how products really done at the and They respect architecture, this incredible a process. of it, have solid their QA, they deeply they we We do group.

improve road the overall the of should And our team increase forward. pace our map punch and and product of so that going engineering

customers, really been excited aspect have kind pick of XX,XXX them. that up acqui-hire that with quality about customers So We there.

revenue, a So $X do and $XX-plus And add real to going plus. more this of million we EBITDA than of year. million that's they're

of does the boost as the our it boost So of our business. well, business size scale

you around that realize. As in of $XX synergies some there's combination. synergies would imagine, the We million up will think to be picked we there are

this and we've an how continuing to have some December, our Investor in more an deeply when Analyst for how about see Day an look coming Thryv and opportunity we So about Keap few we here we model future. and years time talking up the where Day, together into the got ahead fit next transformation more more spend

me turn operator for the let over that, with to Operator? So questions. it

Kreyer Jason your Instructions] And [Operator line from comes question first of the of Craig-Hallum.

Joe, the you had could automations if just Keap  Wonderful. that highlighted. you wondering elaborate on

of base Just of of look would more the those help exactly any good what would those current be high for And on curious, fit customers. the SMB Thryv a details then that customers, how be cross-sell? SMB mix end the SaaS if at I'm that that you at

I all operations, they actions in that just, the they've in like basically. recipe service recruiting, sentence. automations that, a And doing repetitively sort designed to you remind sentence began built the beyond this but -- me important want. you little you just the but are They're as and the and out of and things would they consistency, in shouldn't a can blanks remember drop to meaning sales, well, need they automations long oversimplification, little build kind they've recipe the you began that help the of were ended to hiring, bring is of it's onboarding, what fill automations. whole move mad where as business, do is bit the -- that figuring up So you'd got to change bit how But when And precision those. that you excellence -- that marketing say a the and libs, kids, is the

out or they powerful them a obviously And wonderful follow not some a so In be certain out channel have a can when mean, them. service in and internally, But within that simple Keap up. team give kicking very them. be a a is how a somebody request, off a when straightforward I do through kicks put drive It who's someone figure to then process. to they Keap, are consultant someone nurture website and actually or they and do will sharp And they're certain reseller a to person and to them could what around, you fills these pretty big it. that then is job. have and cases, makes your comes it complicated begins that and form happens. could -- automation But systems and customize build where have works so it

of hard it's solopreneur, somebody think alone spending working hundreds probably I -- a on to or month they dollars X-person so revenue. justify it's So a maybe for when have and a business software little hundreds

cheaper maybe million I a say, bit that's they really Time it's when have, is so business let's get think $XXX,XXX But and And staff more that do $XXX important month maybe and consistency important reliable. of them. a $X bigger software than revenue, revenue bigger. tough. $XXX, service on having $XXX do and you spending into really some of is to little of a to And or it is or actually

world. what of the and fit do sort that's they So how they into

would what a a to path serve also, this, also folks. Keap them market or these could of Thryv for more from they're and be maybe successful needs. In it using. bigger, We businesses would customers. much particular that from XX,XXX them smart, a got And a within don't pretty than an to to would -- their they've are way upsell that. us and terms salesforce.com It a like base, believe continue satisfied non- potentially and of there our from lot graduating be really to customer HubSpot tend Thryv powerful these or them pretty these subscribers I and grow more want in moving businesses to could that the of with make benefit our upmarket like that We innovative, because the more tools not they be more small like would say automations want defensive, I a tool that powerful us to current group we graduating are but sound something

well automations us could as Thryv. have of we to is these them on that And with board next small there the help are centers Keap a bigger to couple risk slight coming the from help designed they graduate So also as that grow continue businesses.

they much is lower. us XX So businesses they excites that's a little what profile bigger pay willingness really higher serve XX, bit much much, small employees, to and we churn that's these because much, when a have have a

solopreneur, the Keap what and So businesses us is you'll business be Does less more answer the in to bigger your is focus and I that on think onesie, on question? trying mode. seeing same twosie the

comes from Scott of Needham. the next line Your of Berg question

you product -- the So you just take single going Keap are have with you a functionality where Joe, top you it the just more true and of rebuild to integrating much just how to -- on what take of going platform? here when this we are of platform be think is approach traditional their about forward, Or the maybe going platform Thryv today?

They more together. and approximately XXX-person we're engineering and and -- product putting sure are product highest with And we're and mean and they XXX-person priority, the even completely as really have our products of they together engineering approximately I well. and making we team. whole out in really it have our are that that interoperable -- Keaping that We work our team. is in. the investment to well thing in nourishing integrate everything course, a best-in-class Product and a marketplace tools are fully going leaning other

we'll companies and on very to the will In go to work so the like actually fast pull working unified the together begin platform. to that working use aren't forth have everything plumbing back together meantime, they between APIs be where connected a And X and company. we

some create So we before done right to make the all work. will is deep away interoperability try to even everything plumbing

that's So the plan. game of kind

the do those right business, maybe this about And think couple were of new platform. this think last cycle the and convert SaaS about anomaly? relationship Helpful. Or marketing those of quarters your the obviously, has an seeing X and at how services even then your more you it. customers to you actually on Is last inverse for more retaining platform? rate to accelerate certainly expecting more great customers those the we the I customers of than those and kind SaaS what stage quickly revenues? your quarters that Got of here had to conversions business customers But then services success think, marketing the rate forward? could rate going Is -- have convert

Yes.

maybe been you I able faster very, plan and and delivered fact November, on we with been spend a little later, of think, and plan our a of The transition it. you and a plan, plan. on perfecting very -- sort a was and and the Scott, and conversions works of a fully outstripped budget when actually proud business we're focused We've is you're you we're all we what faster. were than that doing that to budget the way we've those do Board to really bit And been ago. year we've making you a September, a work it. agree actually year sitting here the October, We go then are and

said kind excited I the it really -- we're prepared of We're remarks, about in was as guy. a that So that. good -- was

your back it So to like does going question forward. look about what

software. and what because there this, come wanted in is operating there a they marketing I think have about They the wanted came business of talked you people lot they found. services to what wanted They wanted leads, you're necessarily didn't seeing, growth. I you're grow. for and be seeing their They to

and eliminate they lot a marketing attractive the do that people help lot. to help that's and something And sort of tools so to really see tools them what to them them help all waste. instrument a how them are do grow, that to works and their tools is And of better found tools business, marketing and the in we're like be offering now it

than had when grow with does we had to wanted picked And that was on have the of a think just transformation were kind we run the a little business that to that been their because so And that from business. has thought mean harder more bit up selling that we pace speed your success I software would. we've process somebody yes, conversation

it harder little run a want business, did to actually their was but talk track. Some

when you believe the we for, I early later. when if see So back more a are you'll into the over they look back this strong SaaS. occurred move when groups transition that move XX% spending has pace we do they at picked look And very over, when they're year up. study to margins that numbers, XX%

digital a So where we to to them in chance journey along. we're them growing help we on these. and about talk new platform, have the they Once them to get are their

a we're the of So I story at think part here. key

coming a we yes, back -- was be So the cannibalize of quarters it services that the think years. I pace we marketing that do will that faster couple than in looking

Bhatia comes Your the William next Arjun question Blair. of from from line

that you touch a can seem it you X partner big sell a then and same little as have So SKUs? the about as you on sell now just it think Do you like bit you how pricing Because of -- thinking go-to-market can at this? Keap a -- motions it give where kind with has And stage. might different where you motion those on along come together? lines, Joe, how of companies ecosystem. evolve separate you're Do it about just us Keap, direct does there's this motion, some how into SKU? the go-to-market sense one does

very put conferences, with well very good have Arjun, a really They're your so It's here. they wonderful you at a sophisticated. do there. fulcrum a partner the Keap They and lot annual just conference multiple a ecosystem sub much it. of It's about distribution. so layers. on and has That finger, big

being -- catalog -- to be provide so the customers. about and really those the and just lot part I products, this that going able make their And and think a drove that products services partners full they're We're because of they all of happy the products more that's to Thryv to we're have acquisition. will which Keap a of excited big piece a what offering all can

more them. growth be for a sophisticated lift income And really real it's going low nice us, it's think churn, So to of source going I real to for to revenue access a market. a and be and

on stale And inbound that leads that's them. a XX-person other for sales our in work than market. sales to has go on out access gets Keap of And direct a flip, They rely Keap or that work that real whatever, they about channels come force. kind in force. XXX-person mostly of the direct less their leads channel. positive international team On or

haven't amount we that the direct So put emphasis do they on really of the channel.

sudden, enjoy able of And of Keap the really this exists products things And to the that be about distribution that's will very sales that so in excited a process. is the this of big Thrive. organization all one everybody and

accelerated that of that's Arizona, to distribution to So the minute And going QX us I do revenue allowing do lots I is, there's will you, the in have think us what really to the that's get not see working. into big partner is and to growth hundreds magic of take to 'XX that to the to and would can a to and I ideal and what I top weeks be of the up of wired a couple ready decline there the with question meet there's hundreds or I think we're here. a It taking at conference and then now day coming way It get has working. about in work won't need, sort of distribution think, going -- a in, help, working minutes Keap have think you in it excited for people about as look how sort in Keap's to us sales feed and beyond, and for we Luckily, best tell listen. then couple it will partners straight the figuring -- needs. and detailed been will pricing be Keap Thryv it And of we're a of But and a secret. it don't -- and us and tell they take really declining, Taking us roof. out up wired through is -- I'm your you'll go mode team into line to we'll we're course the that this. that tactics, all turning those growth opportunity key. big And directly listening. and Tell in right try

I'm down have going not open Inc. it and made so with products, aid we really you? in And to you? throat, with can India How these help we And can and an their wonderful all think met How these prebaked mean, going shove even tablet say, this a super an excited plan of progress. with I in we've they're then, we partners, products. business having conversations the just Keap I be course, all just -- of behind big of we'll have with powerful some having had couple and the it early this company we've about additional

answer that did your So question?

one, expectations the have right? before XXX% to get quarters I the QX plus still number on Yes. offering. business think to would That's maybe core very the just upside, retention away helpful. we're been a And we rate. and the strength then maybe surprise my few in SaaS on a The net NRR is quite

is up next a for you surprise accelerated so a us this give the net we that baseline? variability the to Is transition And that? sense some still when there we're look quarters, going to ahead that business? several legacy So that what's picked some of in for rate retention a is the driving given it's new that SaaS seeing be from Or just quickly?

Yes.

right I people I There or that just we transformation. lot time. we and we back a of going on. crisp different XXs, stories lot a channels. that encouraging where product currents take pretty kept There would when lower the as cross little guided be while. It's I would that different on. of going And There's are sales big were a business, XXX% -- big a run there. are over saw that and around into it's As a we product middle lot It you pretty a individual would are would get know, that our that have are

yes, So it isn't back sometimes going out be look this. a when X quarter a it's know that with It's to it It the looking XXX little I'll buying go from quarter is number This here. now, will it's of But very on. XX% there Could could. now year. levers hard going next we're not thinking to we aberration it's because now the quarter. hang very comfortable are a rapidly. for and through you're than our will you're customers just your like me a probably few a next tell shoot why, to precision or That one XX what And at you be right rising now. is center. in head Right thereabouts more quarters? higher It in to

dollar our people so value. also really add an And It acquisition when of cost It that also center. lifetime retention margins. and really flatters flatters flatters really additional net

And stroke so of have and when the actually talked power you and a I privately this of before. platform really building it's business, kind about you're

is that big. now, and customers, the the You a and improve energy business where available as getting that catalog time, you money first at more out add are scaled products that And the continue of that's the getting product spend built second you all nucleus margins are and product, the product, kind fully of begin customers. state very rapidly. then really the build to this and of third pretty we're And to

more going with than you're which customers think I product, to at So is XX% that now. one see

to a be retention I lever the really strong. to net going think years up few dollar and over that that's key next Keap

them a up these same the quickly a spend customers more tend as some to thing, but converted when from onto over as because them they earlier, platform, is of all Another the mentioned I marketing XX% we have area new back And we've that. XX% dialogue all things. pretty the just just job look need and you at need do I SaaS to with I'm to different little services yes, a new initiated show to the that's to, out bounce better on need out And the social. on I good end understand figure I to how on saying, features we're they site. found. to, need list. I why pretty it's all of I and people need and my to

growth. and for a leads a better, they're happy so grow faster bit And helping little these we're to of money and little businesses those exchange that

of a probably bunch shoot think we're I'm XXX. to little And you're This XXX% overshoot lie. The I going not way XXX it. XX% to XXs is I would And circa be low bit. be little the could would always or a going to higher. down we're quarters going a I it's And there's but ding there's way back be quarter to modeling up going NDR probably of here. think or is know not levers -- going not We I there it a model we could mid-XXs. -- a But by story. I into the some kind down to So something,

closed Congrats here. on getting deal the

Your Dan from next question comes the line of Securities. Moore of CJS

what decline EBITDA publications to year? This Dan. book similar should on your year EBITDA XXXX, you another of what next in for of related will Keap? is In expect we Marketing consolidated in the Services, including Will overall, to grow is the last recorded timing confidence And addition that

can. Rouse, with question Paul Yes. I to split I'm if going that

due better we And revenue precision overall, before. with that and that with accelerate where publication and success than schedule better everybody the and to the a going just products think do are publication. were time better with quickly all rules, we skill I a accounting we earlier, customers recognize converting cannibalizing and have answered at just to marketing we have and bit I remind to services better decline the As are we little with I'll because of is

schedule publication around. Our moves

we've it of to And of working continued to way directories a months. stages what it's We're based way So -- you our latter the bouncing can't be used as in XX our print at we're books period-over-period. just what product months. on when. innovate and XX-month It's look around our published had worked to now out from to the XX we where publication, out we've life gone line print

So it's moving around. pub these dates

the So how Paul of rest he I'll how overall. EBITDA over thinks through the and talk how about Marketing about Services to comes thinks year about next turn to question he

guided the yet haven't We for year.

that answer why can on? know Paul, you take So you But don't one that one. I don't if

be Yes. year the It Actually, reason of it print the down think said in because well. the Joe. quarter next schedule. first I you Thanks, will pretty for Joe framed exact

of you that at think yet, XXXX. thinking don't the year XXXX guide I of first least for and we're to quarter but the -- full So get about prepared

think pro Keap? about we the flow acquisition should how then annualized And cash helpful.  Super of free forma for

one I'll as well. take you that  Paul, let

not we're to Yes. XXXX to Again, guide yet. prepared

X. to come December Day, Well, need you're our going Analyst to to

Your next question Baird. Rob comes of Oliver from the of line

be there. I'll

it. to forward Looking Two questions Joe, for you. first for me.

of really is made obviously when have of a the looks network. the expensive helpful things of deal. to an lot really It presence and but Keap Just And the a you like value-enhancing has Zoo's you that grow stood you guys acquisitions us guys international one internationally. enumerated it's to internationally, Keap some for of out for reasons reseller

what of to a wanted able could So get you presence in more more I of terms have for And follow-up some had some those then look I convert international for just brand like on aggressively being and that color a Paul. to opportunity geographies. in

look, question, like I I this thinking you're and Well, Yes.  Okay. am. love

to We Europe, revenue languages easier of we're the Keap certainly, of available does working and Keap that work markets have all XX% are very talking with about that with partners, And other continuing more are into places places good those them push selling And they excited out about and all have that are English-speaking developed agents, the their those some people success. actively about. well-established with resellers, in economies. in

go is markets Australia did and help we having to So to to an giant it enter those New us for landing company really go some ramp in or in without of entry a kind us buy like maybe point and Zealand. into

on entry maybe accelerate that we markets our build invest excited think points. the that And are so through things list can very that, those And that about. really nourish those in of high growth and we accelerate that -- that that in that, -- we on was is

That's helpful. And pointed guys to then fact out, be that would pressure. just us to ARPU continue under ARPU you the obviously, on the call have

parse that. language I Caesars just wanted around However, the was strong. ARPU some to of

the driver said aggressively the have new the what's commitment stress on the conversion the sounds -- causing of and in customers economy which you that guys say, given general at past, know in on I lower totally makes sense like hey, It is levels, with So SMB. you sounds customers on going around near to of to like the and a being more from It guys conversion pressure been more the more the term. ARPU the have SaaS. there's the zoo now converting come incentives

give the you could ARPU little pressure. I So to on how contributors hoping was color of just us X should think guys we near-term about those a bit

Yes.

think our site, a illustration fine. at it's on ARPU which if sales. number, XX, I of deck investor And little has at Slide can sort held help to we you of broke in their the ARPU you think see looking our out we and you And little I just overall local that. put with we teased local look sales, it -- up out

we marketing In a at different the it little look you marketing And you bit. that And fact, platforms legacy services a sunset bought part remember, of bit. bunch services. our it's a then of we're actually this technology in reason of migration growing to see going is And down and companies. little trying some

these got try these to just wind platforms. We've any old the YP Pages stuff, the one stuff, to looking Vivial old stuff some different we've company We've that stuff. got the So than platforms, got would old the legacy of have. old we're all Super deck down more

years Some or old. of them are XX more

near And they moving modern platform our have people so that and maintain, tech expensive stack modern functionality the don't to they're and necessarily that to. have we're our anywhere

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on adoption? talk core SaaS business. ones we about margin multicenter about But the what's analysts. the A had kind of margin on And side, be progress up should front? as continue the that pick that pace on especially momentum asked to gross thinking the the about right way lot of by in can you the expansion just progression curious Thryv mean, been of was I that previous you I

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Day Analyst a little under the to forward  Looking a month...

to seeing  Looking there. you forwad

concludes That joining. our today's everyone, session Q&A Thank for and call. you,

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