Thryv Holdings, Inc. Common Stock 2026 Q2 Earnings Call

Cameron, please go ahead. Good morning and thank you for joining us for Thryv Holding's second quarter 2026 earnings conference call.

With me today are Joe Walsh, Chairman and Chief Executive Officer, Grant Freeman, President, and Paul Rouse, Chief Financial Officer. Before we begin, I'd like to remind you that today's call may contain forward-looking statements, including statements about our business outlook and strategy, future financial results, growth prospects, and other matters that are not historical facts. These statements are subject to risks and uncertainties, and our actual results may differ materially. Please refer to our most recent filings with the SEC for a discussion of factors that could cause our results to differ materially from these forward-looking statements. We do not undertake any obligation to update these statements. In addition, today's discussion will include references to non-GAAP financial measures.

Please refer to the press release we issued this morning for a reconciliation of our non-GAAP measures to the most comparable GAAP measures. The press release and investor presentation are available in the investor relations section of our website at investor.thryv.com. With that, I'll now turn the call over to Joe Walsh.

Thank you, Cameron. Good morning, everyone, and thank you for joining us. Let me start with the Q2 headline. Thryv delivered on the quarter, and I'm going to start by focusing on our strategy and highlight the numbers that tell the story. Cameron will take you through some new partnerships that we've landed, and Grant will focus on our new Thryv Growth Platform. Following that, Paul will walk you through our Q2 results and updated guidance. Our transformation to a pure-play SaaS company is not something that happened to us. It's something that we have executed year after year, running two motions at once, streamlining and taking costs out of our business while growing a leading SMB software business inside it. Every year, leaner, every year, more software. That's the work that's making this a fit company, and fit companies win.

We took more of these actions this quarter. We'll walk you through the restructuring and savings elements at the end of the call. You will see that we are revising our full-year outlook as we made a choice. We narrowed our focus to Marketing Center, its add-ons, and getting the Thryv Growth Platform to market. During this period, we invested less in sales headcount and marketing in order to prioritize the push we're now making behind the new growth platform launch. SaaS is now 76% of total revenue, and this quarter, that transformation has been validated. We've been added to the IGV as a software company. The market now classifies us as what we have spent years achieving. The engine of that progress is our growth platform and its add-ons, what we call our market sell grow, or MSG.

MSG grew 21% year-over-year. That's not a one-quarter story. It has grown double digits quarter after quarter up into the right for more than a dozen quarters. It's working, especially as we move upmarket. ARPU grew 12% year-over-year this quarter. 72% of our clients now spend $400 or more with us, up two points from the prior quarter. Bigger clients spending more on the platform we have put at the center of our company. Yesterday, August 3rd, we took the biggest step yet. We rolled out the Thryv Growth Platform, an AI-native product built from the ground up for the AI era. Marketing Center has served us well, but it has been in the market for a few years. Designed before this generation of AI existed, you cannot bolt the future onto a product like that.

You have to rebuild around it. That is exactly what we did. This upgrade is a huge positive for our clients. The timing is deliberate. In this new AI world, we cannot compete with everyone across every product. We made a choice. We are sharpening our focus on the Thryv Growth Platform. Rather than being an all-in-one software business, we are driving growth with businesses, small and large, through that focus. We invite investors and analysts to attend our webinar featuring a demonstration of the platform this Thursday, August 6, at 2:00 P.M. Eastern time. Further information on the event will be provided later today. Grant is going to take you inside the platform in a few minutes. I will let him tell you that story.

What I want to do first is have Cameron go into more detail about exciting news around some of our recent announcements and how it fits into our strategy.

Thank you, Joe. I'm excited to talk about a few announcements today because a great product only wins if you can put it in front of enough of the right owners, and that brings me to distribution. This quarter, we entered 2 strategic partnerships, Wix and Ooma. We also are happy to announce 2 new integrations, Breezy and Jobber. These are not side deals, done with partners. We own the layer where small business growth happens, the marketing, the leads, the customer relationships. Everything else, we go find the best in the world and plug it in. Let's start with Wix, a partnership we are very proud of. It brings together 2 of the most recognized platforms serving the SMB market, Thryv's comprehensive marketing platform and Wix's global website and unified commerce solution. Each of us is a leader in what we do.

Wix has built 1 of the great digital platforms in the world, the place where businesses establish their online presence and transact with customers. Thryv built the platform where local service businesses market, win, and keep those customers, backed by decades of relationships, and 1 of the largest dedicated SMB sales organizations in North America, Australia, and New Zealand. Apart, we each serve a piece of the small business owner's day. Together, we cover it end to end, winning the customer and getting paid. That is why this is a broad multi-pillar agreement, not a single integration, and is positioned to deliver significant value to our combined base of hundreds of thousands of SMB customers. Among the early benefits, our clients gain access to Wix's world-class payments and commerce capabilities, online, point-of-sale, on the go, plus business checking and access to growth capital.

Essentially, getting paid becomes as easy as getting found. The strategic fit runs deeper still. Many of the businesses Wix serves are exactly who we built the Thryv Growth Platform for, the established local service business. This partnership puts our best product in front of them. When 2 leaders built for the same customer decide to build together, that customer wins, and so do both companies. We expect to be announcing new pillars of this relationship in the future. Let's talk about Ooma. We have spent our careers making phones ring for small businesses. Believe us when we tell you the phone is still where the money shows up, and the missed call is a lost job. Ooma is 1 of the most respected names in business communications, ranked at the top of its category time and again.

With more than a million users and a base full of exactly the entrepreneurial service-based owners the Thryv Growth Platform was built for. That is what this strategic partnership is really about for us, reach. Thryv will be featured inside the Ooma Office customer portal, right where Ooma's business customers go looking for ways to grow. Joint webinars, sales incentives, and cross-promotions launch this quarter. Every 1 of those touchpoints is a warm introduction to an owner who already invests in their business and already fits our platform. Because the Growth Platform now opens with a free trial, those introductions have somewhere to land. An owner can step in, see what it does for their business, and convert without us spending $1 of traditional acquisition costs.

We will be recommending Ooma to our clients as the communication solution we stand behind because our clients need great phones, and Ooma delivers them. Beyond partnerships, we shipped two new integrations this quarter. They follow the same playbook. We own the lead, and we connect it to wherever the work gets done. The first is Breezy AI, an AI operating layer built for franchise-based home service organizations. This is how it will work. Thryv drives the inbound leads and customer engagement on the front end. Breezy converts those opportunities into revenue, giving owners visibility from the first marketing touchpoint to the final invoice. The handoff is clean. Franchise leaders can now see which marketing sources produce the best jobs, where ad spend is being wasted, and where opportunities are slipping through the cracks.