Thryv Holdings, Inc.

one on your telephone keypad. If you'd like to withdraw your question, again, press star one. Thank you. I will now turn the call over to Cameron Lessard, head of investor relations. Mr. Lessard, please go ahead.

Thank you, operator. Hello, and good day to everyone. Welcome to Thrive's third quarter 2023 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 thrive.com or in the investor section at investor.thrive.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. Thrive has no obligation to update the information presented on this conference call. Finally, 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 our website. With that introduction, I would like to turn the call over to Chairman and CEO, Joe Walsh.

Good morning, Cameron, and thank you all for joining us on the call today to discuss our third quarter results. I'd like to dive in here with two big ideas. The first is our SaaS revenue beat guidance on both the revenue and the EBITDA line, all while carrying additional overhead that was allocated because we had lesser revenue in marketing services. So this is really a standout quarter, and it shows the strength that's developing in our SaaS business. Secondly, we finally got behind us this looming third quarter we've been talking about for well over a year. where revenue recognition was going to be light for the quarter and would optically make it look like we had weak revenue. So we generated roughly $7 million in adjusted EBITDA, but $37 million in cash flow. And so it sort of underscores the strength of this overall business. And the management team is very much in control of the cost and able to look, in this case, more than a year ahead and tell you how this was going to turn out. So we're using that cash to strengthen our balance sheet, to pay down debt, It shows kind of the strength of the marketing services business, even though it's declining. It's still very, very resilient and very forecastable. I'd like to take you through our SaaS quarterly highlights. SaaS revenue grew 19% year over year, and sequentially it grew 8%. SaaS adjusted EBITDA was much better than guidance, despite the impact of marketing services operating expenses. SaaS adjusted gross profit improved 25% year-over-year, delivering an adjusted gross margin of approximately 67%. Client growth was up 29% year-over-year, and engagement, our North Star driving engagement, was a 22% growth. We're really pleased so far with Command Center. You know, it's just been in beta this last period, but our team has been working closely with early adopters and making weekly updates. and we'll wrap up this beta period very soon. With little to no promotion, we've received over 15,000 signups. We've connected thousands of channels, streamlined over 3 million messages, and we've seen positive signs from nearly 10,000 phone calls and hours of video meetings. So, you know, during the beta period, we found a few bugs you would, wouldn't you? We've really solidified and strengthened the product, and we're ready a little later this month to go out with our full general release. We're achieving sign-ups to Command Center in two ways. First, we're offering unassisted online sign-ups, which take less than 60 seconds, really easy to sign up. And we've seen these users, in many cases, self-upgrade and actually purchase, where they're buying more channels or more seats or somehow expanding. Those that haven't expanded will monitor their usage and their engagement, and those with the highest usage we'll actually turn over to our sales force to contact them, work with them, and discuss future expansion opportunities. These are what I guess you would call real hand raisers. Second, we're leveraging our global sales force. With Command Center and their toolkit, business advisors are well positioned to provide value as trusted partners. This will help them drive more demos and sales to our other centers in the future. With that, I'd like to turn it over to Paul Rouse and let him take us through our third quarter financial results. Paul?