Thryv Holdings, Inc.

Thank you for standing by. My name is Luella, and I will be your conference operator today. At this time, I would like to welcome everyone to Thrive'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. If you would like to ask a question during this time, simply press star 1 followed by the number 1 on your telephone keypad. If you would like to withdraw your question, press star one again. Thank you. I would now like to turn the conference over to Cameron Lessard, head of IR. You may begin.

Thank you, operator. Hello, and good day to everyone. Welcome to Thrive's second quarter 2020 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. With that introduction, I will now 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 second quarter results. DAS revenue grew by 25% year-over-year to $77.8 million and within our guidance range. DAS adjusted gross margin increased 460 basis points year-over-year to 69.7%. SAS 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. For 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 continued 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. Our center strategy is continuing to gain traction with more than 10% of our current clients having two or more paid centers. This is up 200 basis points sequentially in a significant increase of 800 basis points from this time last year. This means more clients are experiencing the tangible benefits of our marketing center in growing their business. Our local sales channel and consistent referrals are effectively demonstrating the value we deliver. Turning to our product initiatives, we remain focused on enhancing our Thrive AI capabilities. to further empower small businesses, building on the efficiency and time savings already realized by our clients. Our AI-enabled customer support, now accessible across all centers, is designed to assist users by answering their questions and guiding them through our software's functionality. In addition, our social media feature in Business Center generates engaging social post captions complete with relevant hashtags and emojis. This not only makes the post more relatable and engaging, but also boosts their marketing signal by increasing visibility and fostering a deeper emotional connection with potential customers. We are actively developing and testing several new AI enhancements and are enthusiastic about their potential. So more on that at a later date. With that, I'm going to turn it over to our CFO, Paul Rouse, to discuss this quarter's numbers.