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Operator
Ladies and gentlemen, good afternoon. My name is Abby and I will be your conference operator today. At this time, I would like to welcome everyone to the Thrive First Quarter 2022 Earnings Conference Call. Today's conference is being recorded and 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. If you would like to ask a question during this time, simply press the star key followed by the number one on your telephone keypad. If you would like to withdraw your question, press star one once again. Thank you. And at this time, I would like to turn the conference over to Cameron Lessard, Director of Investor Relations and Capital Markets. Mr. Lessard, you may begin your conference.
Abby
Good morning, and thank you for joining us on today's conference call to discuss Thrive's first quarter 2022 financial results. With me on today's call are Joe Walsh, Chairman, and Chief Executive Officer, and Paul Rouse, Chief Financial Officer. Before we begin, I'd like to remind you that shortly before today's call, we issued a press release announcing our first quarter 2022 financial results. We also published an investor presentation on our website at investor.thrive.com. Please note that information regarding our quarterly performance and guidance can be found towards the back of the presentation. I would like to remind listeners that some of the comments made on today's call and some of the 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. Thrive has no obligation to update the information presented on the call. Also on today's call, 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 the Investor Relations website. With that introduction, I would like to turn the call over to Joe Walsh.
Joe Walsh
Thank you, Cameron, and thank you all for joining us on today's call. Q1 was yet another strong quarter for Thrive, with revenue and EBITDA all beating, so we're raising it. Let's jump into the headlines. Total SaaS revenue grew 29% in the first quarter. SAS subscribers are growing nicely now at 47,000 subscribers, so we're on track for double-digit subscriber growth. We had previously said that we thought we could achieve a little better balance between subscriber growth and ARPU growth, and that's beginning to play out and I think being demonstrated by these numbers. Engagement is still really good and increasing. Monthly active users are up 16% year over year. our daily and weekly cohorts growing even faster at 21%. So people really engaging and using the software, which has been our North Star driving to that engaged user. Retention remains solid. Season churn is steady in the mid ones, which is world-class when you're dealing with very small businesses as we are. And season net dollar retention is now 93%. We had an investor day about a month ago in New York City, and it was really exciting for us to get a chance to meet a lot of our investors who have gotten behind the story and meet them in person, which was great. We outlined the way we see this decade playing out, the mega trend of small businesses adopting the cloud tools following enterprises from last decade. We talked about the platform role that we believe Thrive can play within this greater ecosystem. We outlined a goal of getting to $1 billion in SaaS revenue in 2027. $4 billion in 2032. And we still are really confident that that's a very realistic type of goal. And we laid out the measurements by which you can kind of keep an eye on our progress, the levers we're going to use to get there, and the signposts along the way. So if you missed that investor day, you can go to our website and you can dig in, see the presentations, see some video on it, learn more about us there. We believe that this year is off to a terrific start. So with that,
Cameron
Let me turn it over to Paul Rouse and let Paul take you through the numbers. Thank you, Joe. As a reminder, we are going to focus on total SaaS and total marketing services results, which includes both domestic and international operations. This is how we provide guidance to start the year and will be the case going forward. We do feel this will be more helpful in modeling the business. Okay, let's talk about our first quarter results. starting with our SaaS business. First quarter total SaaS revenue was $48.2 million, an increase of 29% year over year and ahead of our guidance range. First quarter SaaS adjusted EBITDA loss was a negative $6.8 million and better than our initial outlook. The reason for the improvement was due to delaying key product and engineering investments to future periods. Total SaaS are approved. was $352 for the first quarter, an increase of 16% year over year. Total lending SAS clients were $47,000 for the first quarter. As has been previously stated, we expect more balance between subscriber growth and ARPU expansion, which is reflected in our 2022 SAS revenue guidance. Seasoned net dollar retention was 93% in the first quarter. As a reminder, seasoned net dollar retention represents clients that have been with us for over one year. Monthly churn remains stable in the quarter. Moving over to marketing services, first quarter total marketing services revenue was $260.2 million and ahead of guidance. The reason for the overperformance was due to the Vivio acquisition, which contributed $23 million in the quarter on a reported basis. First quarter, the total marketing services adjusted EBITDA was $90.5 million, resulting in an adjusted EBITDA margin of 35%. Please note that our recent acquisition of Vivio Holdings had a negative drag of approximately 380 basis points on adjusted EBITDA margin in the first quarter. First quarter total marketing services billings excluding Vivio with $222.6 million, a decline of 19% year over year. As is consistent with previous earnings calls, we are providing billings and additional operational metric to give our investors better insight into our operational performance. Billings data will show a very consistent and steady decline in our marketing services business, which is shown to be lumpier on an accounting basis given the extended life cycle of our directories. This is provided in our first quarter investor presentation available on our investor relations website. Turning now to profitability and leverage for the consolidated business. First quarter consolidated adjusted gross margin was 67%. First quarter consolidated adjusted EBITDA was $83.7 million, representing adjusted EBITDA margin of 27%. Finally, our net debt position was $567.5 million in the first quarter, after accounting for the $22 million we borrowed for the acquisition of Vivial Holdings. Our leverage ratio for the first quarter, in accordance with our credit facility, was 1.55 times net debt to EBITDA and well below our covenant of three times. Let's talk about guidance for 2022. For the second quarter 2022, we expect total SAS revenue in the range of 50.5 to $51 million, representing growth of 22 to 23% year over year and an adjusted EBITDA loss in the range of $6 to $6.5 million. For the full year 2022, we are raising our guide for total SAS revenue in the range of $208 to $209 million, representing growth 22% year over year. We are reiterating our SAS EBITDA loss in the range of $21 to $25 million. For the full year 2022, we are raising our guide on total marketing services revenue in the range of $905 to $920 million, and raising adjusted EBITDA range to $315 to $320 million, representing an EBITDA margin of 35%. Consistent with previous calls, we will provide quarterly ranges for marketing services revenue for the remainder of the year, which can be found in our first quarter investor presentation on our website. We provide these figures because sales canvas process allows for strong visibility into future revenues and because print publication timing is not generally consistent quarter to quarter. Now, I will turn the call back to Joe. Joe? Thanks, Paul.
Joe Walsh
A few more items before we go to Q&A. First, I'd like to start with Vivial. We made the Vivial acquisition in Q1, and we're off to a really great start with Vivial. We've picked up some excellent people. people that really understand the local market, have good customer relationships, and they're going to be really additive to the overall Thrive story. We're really excited about the Vivial employees. We also picked up with Vivial a bunch of great customers, and they're already beginning to buy the SAS product. So when we look forward to 23, you will see strong growth coming through from this additional leg we just added, this big customer base from Vivial that we added. We'll really flatter our growth as we go into 23. Another area that I think will be very strong next year is international. We recently hired Marie Caron. She came in as president of international markets. Marie has a lot of SAS experience. She has worked around the world, created partnerships, affiliates, and it'll be her job to really rapidly expand thrive internationally. And she's got the chops, the experience to do it. So as you look at your models and our plans for 23, international is going to become a bigger part of the story, in addition to the very strong results we're continuing to get from the U.S. So pretty excited about what international can do and can add. So with that, I'd like to turn it over to questions.
Marie Caron
Operator?
Operator
Thank you. At this time, I would like to remind everyone, in order to ask a question, press star, then the number one on your telephone keypad. We ask that you please limit yourself to one question and one follow-up question. And we will pause for just a moment to compile the Q&A roster. And we will take our first question from Arjun Bhatia with William Blair. Your line is open.
Arjun Bhatia
Perfect. Thank you. Joe, maybe we can start with you. I just wanted to get a sense for what you're seeing in the customer base and the broader smb market in terms of sentiment and uh appetite to invest in software at this time i know there's been obviously a lot of macro headlines with um with inflation and you know interest rates and recession risk etc but i'm curious it seems like you know it was at least a good quarter from a customer ads perspective but we'd love to hear what you're seeing and hearing from customers
Marie Caron
Thanks, Arjun. Yeah, you're right.
Joe Walsh
There's certainly a lot of, you know, external noise from, you know, the war to, you know, interest rate changes and certainly challenges in hiring. And we do hear these things. I would say that small business morale, a small business mindset, you know, is not quite as bright as it was, you know, maybe back earlier when we were totally on the gas with all the you know, quantitative easing and all the other incentives that were going on out there. But it has affected sales. I mean, customers are, you know, we're seeing still really strong demand and that macro unstoppable trend we talk about of people moving from analog to digital, you know, moving to the cloud is very much still in play. And I would say, if anything, that the challenges around hiring sort of cause you to want to modernize because it actually is labor saving. Some of the elements of Thrive are key marketing automation tools or appointment taking and scheduling tools or reminders. Some companies have people. In fact, just before this call started, I got two different calls from my dentist trying to confirm my appointment later this week. By the way, my dentist has a Thrive. They're just 100 years old. I'm having a hard time getting them to use all the technology. But anyway, I think it's very much labor-saving, and I think it's making a difference in terms of them realizing that adopting this technology can actually help them with that issue. So overall, demand continues to be strong, and obviously we're reporting here out on what happened in the first quarter, and we're well into the second quarter, and I think things are continuing to go really well. We're very bullish on the year, as seen by the fact that we're upgrading, increasing our targets for the year.
Arjun Bhatia
Perfect. Thank you. And maybe I'll introduce you to my dentist, who is still not digitally adept at this point. Maybe a follow-up. For Paul, I think you mentioned that in SAS EBITDA, there were some product and engineering investments that were delayed into the future. Is that hiring environment that drove that? Maybe just give us a little bit of background. And then is there anything that we should think about in terms of impacts on the product roadmap as a result of those delayed investments?
Joe Walsh
Paul and I are going to share this answer because I'm trampling all over him like always. One of the big pieces of that was Vivial. We had planned to hire product people and engineers. We had planned to hire some additional sales reps. And in the Vivial acquisition in early January, we got all of that. We got a whole bunch. And it allowed us to sort of acquihire those in and jumpstart our plan for the year. So that's part of our real bullishness on how we're going to do this year. You know, it happened as a part of the acquisition price, as opposed to a whole bunch of individual expenses. Now, your follow-up question might be, well, does that mean you're going to tuck that under your belt and not spend that money? We'll still spend it. We're pretty excited about what's happening here. And the targeted amount that we're going to invest for the year, I think we're going to stick with and just smooth it through the year. So, Paul, sorry to trample on you, but you can add to that answer if you want. Perfect.
Arjun Bhatia
Perfect. Thank you both. Very helpful. Take care.
Marie Caron
Thanks, Arjun.
Operator
Your next question comes from the line of Scott Berg with Needham & Company. Your line is open.
Scott Berg
Hey, everybody. This is John Govino for Scott Berg. Appreciate you taking my questions. First, just wanted to peel the onion on engagement a little bit. I guess, what are some of the things that you're seeing resonate the most, maybe in the context of add-on modules, some of the newer features that you've launched? investments across customer success. Maybe we could drill into that a little bit more. That'd be helpful. Thank you.
Joe Walsh
Yeah, I mean, the progress on engagement is just stunning. We were just, we had a board meeting the last couple of days and we were looking at the growth and engagement relative to the growth in customers. And it's, I mean, engagement's outpacing customer growth by five to one. It's spectacular. And we consider it a really firm leading indicator on retention and low churn going forward and our ability to really bend these customers down and grow ARPU by delivering more products to them over time. You know, I would say the biggest driver of this really strong engagement is the continuing perfecting our onboarding process. We have a very slick onboarding tool onboarding widget now that's helping people get up quicker and get going. We've really altered and improved our ongoing onboarding process and just getting a lot more people using the tool more quickly. We also have kind of focused our sales call and our onboarding on the specific problem that small businesses try and solve as opposed to kind of making it a product tour or going into a lot of different areas. We know going into it, there's a prep call before we do onboarding. We know this is why this guy bought, because he's trying to get scheduling figured out, or he's trying to deal with payments, or he's trying to fix social. And that's where we go. And then we confirm at the end of the call, confirm at the beginning that that's what they want to do. And at the end, we confirm that we've accomplished that. And then we say, well, in future calls, we'll build on that. And so that's really getting people right in and using it. And it's just You know, we're using a rifle instead of a shotgun. We're really getting right at the topic that's at issue. Now, we are innovating the product. We've had, you know, so far this year, we've had more product releases and product innovation than we had all of last year or in any year because of the level of investment we've got now in product and engineering. And the product is getting better. I can't point to any one product improvement that's driven it as much as just
Marie Caron
really the process, I think.
Scott Berg
Got it. That's helpful. And then second, just wondering if you could give us an update on the mix of new customer growth from conversions versus some of the new channels that you guys have been ramping. Thank you.
Joe Walsh
Yes, thank you. A simple way to think about this is our customers come in three buckets. Approximately one-third are coming from our existing marketing services, An additional third are referrals coming from those happy customers there. So it's our local sales force just selling the friend of the customer that already bought. And the pace of those referrals is really picking up as we're driving our net promoter scores up and as our churn numbers are driving down and our engagement is going up, we're seeing more referrals than ever. So occasionally investors will ask me, well, when are you going to run through the whole zoo? And the zoo is self-generating because it keeps – you know, generating more referrals. And of course we keep selling new businesses into the zoo. So one third from our local traditional base, one third referrals out of that base. The final third is coming from all of the various new channel activities that, that frankly we're still learning at and still improving. And each quarter we get a little bit better at our inbound sales activity. You know, we're doing all kinds of content marketing online or directly advertising online, driving people to our website. They're clicking on, hey, I want a demo, and they're coming down through a funnel and they're buying. Or we've got a partner channel where we're working with partners, affiliates, resellers, and then we've got a multi-location franchise channel. And that franchise channel in particular is off to a super fast start this year. But those... Those areas are all developing at various speeds and improving. They're not perfect. I wouldn't point to those as our absolute best areas.
Marie Caron
We're making really good progress in those areas, and sales are breaking out about a third, a third, and a third. Awesome. Thank you, guys.
Operator
And your next question comes from the line of Zach Cummins with B. Reilly Securities. Your line is open.
Zach Cummins
Yep. Hi, good afternoon, Joe and Paul. Congrats again on the strong results here. And thanks for taking my questions. Joe, in terms of ARPU growth in the SaaS business, I know you've outlined that we're supposed to have a more balanced approach between new customer growth and ARPU growth this year. But can you talk about some of the opportunities to continue to grow that ARPU number? And is a lot of that really dependent upon rolling out these new centers that you outlined at your investor day?
Joe Walsh
I mean, certainly new centers are going to be a big part of it. And, you know, if you think about kind of the long range targets we laid out at our investor day, broadly speaking, it sort of imagined average revenue per customer going from about $4,000 a year per customer to more like six over the next, you know, say five years. And, you know, I would contrast that with like a HubSpot where they're getting nearly 12 right now. we don't think that that's all that high step and we think that's very very possible and you know we see our customers as they engage more you know using more of the product they're they're getting more of their employees licensed one of the things i'm really excited about is our customers are growing you know in the local marketplace the thrive customer is at a tremendous advantage to a small business that's unclouded i mean they're going to be found easier online They're going to be really easy to do business with. They're just going to do better. They're going to compete for more carpet cleaning jobs or whatever they do. So our customer base is growing, and they're adding locations. They're adding employees. Good things are happening for our customer base. We've just been looking. I've been at a board meeting the last couple of days looking at case studies of individual customers whose spend with us has expanded fivefold as they've been growing with us. Part of it is genuinely helping them succeed is helping us grow their ARPUs. But adding new centers is certainly an important piece of it. ThrivePay we don't talk about much, but it's a sleeping giant. I mean, it's, you know, 100 million and climbing fast. And, you know, there's a little teeny bit of revenue attached there. We never talk about that. We don't position ourselves as a payments company. We think of it more as a retention tool. You never cancel software that's paying you, let's be honest. But, you know, actually, it's driving revenue too. So that's another element. And there are a bunch of add-ons. You know, there are a bunch of, you know, cool things that we offer for people where they can buy a HIPAA-compliant version if they really, you know, need that extra level of security, et cetera. There's lots of things that we're able to do for customers. So centers is an important part of it. And, you know, we're planning at least a big center a year as we look at the roadmap for the next few years.
Zach Cummins
Understood. And final question for me is around Vivial. I mean, can you talk about the revenue contribution we saw here in Q1? It's definitely, I think, above what I would add in my model. So pretty hot start out the gate. But can you talk about the opportunity there, just synergies within your existing domestic marketing services business, and maybe potentially the opportunity you see to convert some of their customers over to the SaaS platform?
Joe Walsh
The last thing you said is why we bought them. We bought Vivio to get SaaS customers. To some of you, that might seem counterintuitive because they're not SaaS customers. They were buying marketing services. But we've sort of perfected a process of getting in there and having that conversation. And we're off to a really good start. Hundreds of Vivio clients have already bought SaaS. And it's been literally weeks. We just trained Salesforce. But the Salesforce is so excited about having this new future, this new mission. of guiding small businesses into the cloud and helping them really be competitive in the marketplace, helping those businesses have a strong advantage against everybody else in the local market. And Salesforce is really excited about it, and they're signing up people very fast. So, you know, I think the reason that we did the deal was we think that we will get thousands and thousands of additional SaaS subscribers out of the Vivio base over the next three years. That's why we did the deal. On the marketing services side, it was a slam dunk. And we were able to crystallize a bunch of synergies because there were a bunch of duplicate costs. And those marketing services fulfillment just run over our rails. And, you know, it's just, it was a home run as far as that goes. So it actually couldn't honestly be going any better. We're really, really happy with Vivio.
Zach Cummins
Understood. Great to hear. Well, thanks for taking my questions and best of luck here in Q2. Thanks, Zach.
Operator
As a reminder, it is star one if you would like to ask a question. And your next question comes from Srinik Topari with Baird. Your line is open.
Srinik Topari
Hey, this is Srinik on for Rob. Firstly, congratulations on the Entrepreneur Award, Josh. That's very well deserved. Hi. SaaS ARPU was kind of flat sequentially, and I guess to your point by design that you reiterated again, and the customer growth is kind of picking up nicely. So it grew like 6% year on year from low single digits per square. So can you talk a little bit about the drivers and strategies, especially from the verticalization of the offering standpoint? I know you highlighted the dentist example here, and you guys talked about carving out specific offerings for different verticals, dental, and so on. So can you talk about the traction you're seeing there in terms of customer ads and the overall contribution?
Joe Walsh
Sure, yeah, I mean look Try has set out to be the Platform that small businesses will run on we believe that These guys that sort of dip their toe in the water and try one point solution or two little point solutions pretty quickly get frustrated with having to buy all these different point solutions from different vendors and log in and out of them and sticky notes all over their desks and the data doesn't share and And they want to graduate to a more complete platform, a more complete tool. And we're just sitting there waiting for them. And, you know, it's a trickle right now. It'll be a wave over the next couple of years of people graduating to this more all-in-one big, big platform. And look, being a platform probably wasn't cool a few years ago. It was actually hard to sell a platform because they were barely ready for a point solution, let alone a platform. But we're, you know, every dog has his day. We're kind of in the right place as this market unfolds over the next couple of years. So we go to the market with that advantage. The way some people would compete with us is they'd go in and say, well, we're especially for pest control guys. Like, this is what we do. You know, we keep track of when you apply the chemicals and what the humidity was that day and the temperature, and that's, you know, right there in the customer's file. And so taking our tremendous strength within home services and beginning to verticalize that just seemed like a logical step to us, both from the way we present and the way we market to then the way we fulfill when you deal with the product. So as you come through and you tell us you're a plumber or you tell us you're a roofer or whatever, we start to interact with you that way. And the product, the whole experience starts to customize that way. We're still honestly pretty early in that journey. And I think there's a lot left for us to do there. but it's clearly beginning to get some traction. You can see it in the customer growth numbers. We said that we would balance growth this year between, I guess one of the criticism last year was, well, geez, you know, you grew a lot. You had really strong growth, but a lot of it came from ARPU growth that scares us. And I said, don't worry. You know, all the initiatives to drive subscriber growth are kicking in right now because we have a lot of forward visibility. And I promised that we would be able to grow double digits and really balance those two this year. And I can tell you, sitting here in May. I mean, that's exactly what's happening. It's playing out. We're seeing sub-growth come on very, very strong. And I think it continues to be scoped for more ARPU growth as we go through the year. So that's going to drive strong growth.
Marie Caron
And some of it will come from the verticalization.
Srinik Topari
Got it. Got it. It's really helpful. I just want a quick follow-up on the Thrive Bay. So it seems like the traction kind of continues to grow. I saw the TPV number up $100 million annualized, which was, I think, up from $60 million that you guys kind of highlighted last quarter. So I just wanted to kind of get a sense of the attached rates and the market share kind of progress thus far. I remember you mentioned it was greater than 50% last quarter, so just some status update there.
Joe Walsh
Yeah, the trend continues within our customer base, within Thrive subscribers. It's now the most preferred payment option. You're allowed when you come in, you know, to bring your square or bring your whatever you're using. No problem. We're Switzerland. We'll take anybody. We're totally an open shop. But pretty quickly, they seem to switch to Thrive Pay because it's just so slick and so fully integrated. The fees are lower and it just works so well. So that's That's a continuing trend. We see more and more and more of our customers coming over that way. What's earlier in its life and much earlier in its success is our ThrivePay freemium app. That's when you haven't yet bought a Thrive. You just are knocking around on one of the app stores looking for a payment option and you find ThrivePay, which is free. It's a freemium tool. Download it and begin to use it. That is beginning to bubble up now. It took us a little while to sort of work out the getting people approved and getting it moving. But we're seeing strong momentum there. And I would expect, you know, in the coming year or two, that's going to be an important contributor. And we're hoping, honestly, it may even actually help us find some new SaaS subscribers for the software, too. Although I can't point to any of those just yet. It's all just early days. But what ThrivePay does more than anything it just locks customers in.
Marie Caron
I mean, if your software is paying you, you don't churn.
Srinik Topari
Got it. Got it. Thanks a lot, Joe. Appreciate it.
Marie Caron
Thank you. Thanks for your questions.
Operator
And your next question comes from Daniel Moore with CJS Securities. Your line is open.
Daniel Moore
Thank you, Joe and Paul, and thanks for all the color. You covered most of my questions. Maybe one more. At the analyst day, you talked about the franchise customer penetration as being kind of a key driver mid and longer term in terms of growth. Just talk about how you plan to go to market there, and can you maybe scale the size and scope of the opportunity? Thanks.
Joe Walsh
Yeah, I'd be glad to. That's off to a really good start this year. You know, Dan, one of the weird things is that When you're trying to work the franchise market and you can't go to the franchise shows because there aren't any, you know, or they're all virtual, it's just really tough to get traction. So those came back last fall. And they're meeting in person again. Those franchise shows are happening all over the place. And we're there. And we've built some great social media presence in and around that. And we're seeing, you know, lots of signings of new contracts, of new franchises come through. We're really encouraged about the momentum there. One change that we haven't really announced externally, it's an internal thing, but Marie Caron, our new international leader, is actually going to take that on. She's got a lot of experience in working in this type of space. It's just fresh thinking and a bunch of new ideas. So she's excited. We're excited about her potential future impact on that. It'll also give us one motion, not just domestically, but internationally. And a lot of these franchises have designs on moving outside the U.S. A lot of them already are, actually. And so we think that will work really well. So more to come on this, but our little internal number is about to get blown away for the year here in another month or two. We're really doing well in this area. It took a little while to gestate, and the pandemic didn't help, but it's coming on nicely now.
Daniel Moore
Perfect. Maybe one more. If it's in the prepared docs, forgive me if I missed it. Vivial, what are we thinking for sort of the revenue and EBITDA contribution embedded in the full year guide? Thanks again.
Cameron
Paul, I don't know what that number is to you. Yeah, we haven't broken that out significantly, and we did that intentionally since we're blending the two organizations, and Vivial's going to be selling Thrive products and vice versa, and also We're merging the operational expenses. So I think it's best to think of as one organization and not as a separate one. We're really not going to try to talk about Vivio going forward. It's just part and part.
Joe Walsh
Yeah, think of us as taking Vivio and just sort of pouring its customers over our rails. So it's going to be pretty hard to track what the heck happened to Vivio in a minute. It's just going to be, you know, the marketing services stuff will go off into marketing services and the you know, and their digital customers will largely convert to SaaS or in some cases keep their digital offering but be fulfilled over the Thrive Rails. So it's just sort of going to go away. But it's definitely going to flatter our numbers for the year, no doubt.
Daniel Moore
All right. Helpful again. Appreciate it. Best of luck on Q2.
Srinik Topari
Okay. Thanks.
Operator
And there are no further questions at this time. I will now turn the call back over to Mr. Joe Walsh for closing remarks.
Joe Walsh
Thank you very much. So just to wind up here, we are in a really good spot. It's fun to deliver numbers that are better than the promise, and it's a lot of fun to be able to raise your guidance. And we got to just do both of those again. We've been able to do that a bunch of quarters, and we're pretty conservative with what we guide. So we hope to be able to do that in the future as well. But there's a mega trend happening here. It's so big. I mean, the trend in the 2010s was enterprises moving their computing into the cloud. It was a big deal and a lot of big businesses were built. A lot of money was made. This next trend of small independent businesses moving to the cloud will be many, many times bigger than the enterprise trend was. There's just so many more of them. It's a big imperfect market. They will come on for different reasons at different times, but they will come on and it will be an enormous way, and it's really important because those independent businesses, in order to compete with global e-commerce, in order to compete with these roll-ups by private equity and all that kind of stuff, they're going to need those tools. And we think it's a noble mission that we're on, and we're deadly serious about guiding small businesses into the cloud and helping them take full advantage of the devices they already own, the phone in their pockets, the tablet that they're carrying around, to be able to run their business to have the freedom to move around you know anywhere they want keep track of what's going on in their business when it's time to do their taxes or whatever they push a few buttons and there it all is you know it's just that simple when customers call them and they're right in the middle providing service to one customer you know there can be an auto respond that responds to them so they can get back to them so they don't lose that customer you know all those simple things and um we're providing those things it's important work and our employee base the thrive employee base is so passionate about the service that they give and it's easy to keep regenerating that passion because the feedback that we get from our customers every day it's just one giant thank you thank you thank you what you've done for me has made such a difference in my business and it just makes you want to kind of run three miles and chop a quarter wood when you get off the phone with these guys because it you know we're making a big difference in their business and um So that's the mission that we're on, and it conveniently is turning into an incredible business. And we're so glad that you investors that are with us have supported it and helped us get to here.
Marie Caron
And we're really excited about the balance of this year. So thank you very much.
Operator
And this concludes today's conference call. You may now disconnect.
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