Thryv Holdings, Inc.

Thank you for standing by. My name is Celine and I will be your conference operator today. At this time, I would like to welcome everyone to the Tribe First Quarter 2025 Earnings Call. All lines have been placed on mute to prevent any background noise. After the speaker 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 keyboard. If you would like to withdraw your question, press star one again. Thank you. I would now like to turn the call over to Mr. Cameron Lessard. Please go ahead.

Good morning, and thank you for joining us for Thrive's first quarter 2025 earnings conference call. With me today are Joe Walsh, Chairman and Chief Executive Officer, Grant Freeman, President, 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. The discussion of these risks and uncertainties is 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. As a reminder, on this call, SAS revenue reflects the combined performance of Thrive and Keap. We will only specify Keap's performance when discussing its revenue contribution for the quarter and fiscal year. With that, I'll turn the call over to Joe Walsh, Chairman and CEO.

Thank you, Cameron, and good morning, everyone. Thrive started 2025 on really good footing, just continuing the momentum that we had in 2024. And for the first quarter, we delivered both the top and bottom line guidance beat. So we're really proud of that. Our execution has been excellent. Our team are working really hard to develop additional products and additional services and the marketplace is responding well to them. So pretty happy with what's happening with Thrive as we continue to develop as a software platform. When we look at the actual results for the first quarter, we had 50% year-over-year revenue growth. And when you normalize for the KEEP acquisition, we had 24% growth. So SAS EBITDA margin expanded to 10%. SAS revenue is now 61% of revenue for this quarter. So you think about that. We are transforming this business from marketing services to SAS. And I know there are a lot of people waiting for us to become completely SAS. We're just about there. I mean, we're majority SaaS revenue now, and that's a big, big milestone for us as a business. Another thing that happened is our ARPU increased. $335 a month was the ARPU that we delivered up nicely from the last period. I think you're going to see that trend throughout this year as we continue to go back to existing customers and add more products on. Our season net revenue retention reflected that motion too, 103%. So pretty solid outcome there for net revenue retention. We're pleased with that. Subscriber growth was 37%, bringing the Thrive total to 96,000. And if you include the Keep subscribers in there, it's 111,000 overall. You know, one of the key drivers in acquiring Keep was the partner channel. They have an excellent partner channel. They've been at it for a long time. A few weeks ago, I was able to attend our PartnerCon conference out in Arizona, which was a combined Thrive and Keep partner conference with more than 100 of our partners in attendance, some from as far away as Europe and Australia. It was great to have a chance to talk to them about what they're thinking. And what they're thinking is they want to sell the full Thrive product catalog. The idea that they can add the top of the funnel where Thrive is really good at helping you build your list, helping you meet new customers, helping you be found to the very strong key products in the middle and bottom of the funnel where you nurture your list and convert sales and then follow up post-sale for more business in the future, kind of gives them a more complete marketing funnel. And they feel like it's going to help them grow their business and they're excited about that. gives me a lot of hope for what 26 and 27 are going to look like in terms of us beginning to really build out that partner channel that they have the full catalog of Thrive and Keep products to sell. So to tell you more about the progress of our business, I'm going to bring Grant Freeman on, our president. Grant?