Thryv Holdings, Inc.

Thank you for standing by. My name is Jeannie and I will be your conference operator today. At this time, I would like to welcome everyone to the Thrive fourth quarter and full year 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 followed by the number one on your telephone keypad. If you would like to withdraw your question, Press star 1 again. We do ask that you limit yourself to one question and one follow-up. Thank you. I would now like to turn the call over to Cameron Lessard, head of IR. Please go ahead.

Good morning, and thank you for joining us for Thrive's fourth quarter earnings conference call. With me today are Joe Walsh, chairman and chief executive officer, and Paul Rouse, chief financial officer. During this call, we will make forward-looking statements that are subject to various risks and uncertainties. Actual results may differ materially from these statements. A discussion of these risks and uncertainties are included in our earnings release and SEC filings. Today's presentation will also include non-GAAP financial measures, which should be considered in addition to, but not as a substitute for, our GAAP results. Reconciliation of these measures can be found in our earnings release. This quarter marks our first time reporting SAS results, inclusive of keep software. Following our acquisition on October 31st, 2024. With only 2 months of keeps revenue reflected, we are focused on executing our integration plan and realizing the synergies we outlined at analyst day. To note for 2025 total SAS revenue will reflect. the combined performance of Thrive and Keap. We will only specify Thrive SaaS when isolating Thrive's performance. This reporting approach aligns with our long-term vision of a unified SaaS platform and ensures investors have full visibility into our growth trajectory. For deeper insight into our future strategy, we encourage investors to review our December 3rd Analyst Day materials. The presentation details our roadmap, including the planned exit for marketing services in 2028. Keith's role in accelerating SaaS adoption, expected synergies with the acquisition, product innovation, and our updated medium-term outlook. With that, I'll turn the call over to Joe Walsh, Chairman and CEO. Joe?

Thank you, Cameron, and good morning, everyone. On today's call, I will highlight our fourth quarter results, key trends, as well as progress in our SaaS transformation. I'll provide an update on our Keep acquisition, and then our CFO, Paul Rouse, will take you through some of the financial numbers. Rye finished the year with strong momentum, beating the top and bottom line guidance for our SaaS business. For the quarter, total SaaS reported year-over-year revenue growth was 41%, and normalizing for the effect of the Keep acquisition, Rye's SaaS revenue growth was 23%. For the full year 2024, Thrive SaaS year-over-year revenue growth was 25%. Total SaaS revenue is now officially well over 50%, a milestone for our transformative business. Subscribers in our Thrive SaaS business grew 50% year-over-year to 99,000, including keep in the subscriber base takes us to 114,000. SAS adjusted gross margin increased to 76% for the fourth quarter. Our quarterly SAS EBITDA of 17 million beat guidance by over $5 million, continuing to demonstrate our focus on building a profitable, growing SAS software company. SAS obtained Rule 40 milestones for the second quarter in a row. Net revenue retention was 98%. As we've said, our target is 100%, and we'll be a couple points plus or minus that. Sometimes it'll be 101 or 102, and sometimes it'll be 98 or 99. But we'll be right around 100% is what we expect going forward. The number of clients using two or more paid SaaS products increased by over 4,000 year over year, now representing 16% of our client base. This is a key metric as it demonstrates growing engagement and the increasing value clients are deriving from our platform. Now, we've broadened the definition beyond just paid centers, which is 12%, to include all paid SaaS products. This is underscoring the expanding adoption of our full suite of solutions. I think it shows we've been innovating and coming up with some interesting additional SaaS add-ons that fill in and around. The overall base increased tremendously, so the percentage of centers looks like 12, but when we look at number of staff products overall, 16% or 4,000 gains. So, pretty excited about what that shows in terms of the progress that we're making. One of our core strengths as a management team is integrating acquisitions with speed and efficiency. This KEEP acquisition is our first SaaS platform and something we've been working on for a while and planning for a while. So it won't come to you as a surprise that we've already crystallized 10 million of EBITDA synergies. We've done this primarily by eliminating redundancies between the two businesses, vendor consolidations, and some plans for cost reductions. From a cross-sell perspective, the big long-term opportunity is the revenue cross-sell back and forth. And we're working hard getting that set up now, and we expect very strong revenue potential to be unlocked over the next couple of years as we cross-sell between the two customer bases. We have some pretty exciting product updates in Q4 that I think strategically position us really well as we go into 2025. I'd like to highlight a couple of those for you now. Reporting Center launched with a PLG motion. This positions us to unlock revenue expansion opportunities, and it increases the client satisfaction, particularly of our larger accounts. Some of our larger accounts will say to us, you know, we want more powerful reporting. And so we're including Reporting Center on a kind of a PLG or a product-led growth basis, and we'll extract revenue down the road. But in the meantime, We've got an initiative to try to sell to a little bit bigger businesses to move ever so slightly upmarket with our VSB group, and Reporting Center will really assist with that. We also added AI review response to Business Center and Marketing Center. This feature has been really well received by clients and sales, paving the way for future innovations leveraging AI. The addition of social media to Marketing Center added enhanced communication tools for our clients. That's been really well received also. Within the Keap products, we've had some improvements there as well. Updated the automation builder, which decreased the time to publish an automation by two-thirds, meaning it takes about a third of the time now to get one set up. And so, that was an opportunity there, and the Keap team has leveraged that. Also, the visual sales pipelines have been streamlined for clients. There's a real product improvement there that I think customers within Keap will really appreciate. So with that, I'd like to turn it over to Paul Ralph, our CFO, to discuss our financial performance.