Ladies and gentlemen, good afternoon. My name is Abby, and I will be your conference operator today. At this time, I would like to welcome everyone to the Thryv first quarter 2022 earnings conference call. Today's conference is being recorded and 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 the star key followed by the number one on your telephone keypad. If you would like to withdraw your question, press star one once again. Thank you. At this time, I would like to turn the conference over to Cameron Lessard, Director of Investor Relations and Capital Markets. Mr. Lessard, you may begin your conference.
Good morning, and thank you for joining us on today's conference call to discuss Thryv's first quarter 2022 financial results. With me on today's call are Joe Walsh, Chairman and Chief Executive Officer, and Paul Rouse, Chief Financial Officer. Before we begin, I'd like to remind you that shortly before today's call, we issued a press release announcing our first quarter 2022 financial results. We also published an investor presentation on our website at investor.thryv.com. Please note that information regarding our quarterly performance and guidance can be found towards the back of the presentation. I would like to remind listeners that some of the comments made on today's call and some of the 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. Thryv has no obligation to update the information presented on the call. Also on today's call, 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 the investor relations website. With that introduction, I would like to turn the call over to Joe Walsh.
Thank you, Cameron, and thank you all for joining us on today's call. Q1 was yet another strong quarter for Thryv, with revenue and EBITDA all beating, so we're raising it. Let's jump into the headlines. Total SaaS revenue grew 29% in the first quarter. SaaS subscribers are growing nicely now at 47,000 subscribers, so we're on track for double-digit subscriber growth. We had previously said that we thought we could achieve a little better balance between subscriber growth and ARPU growth, and that's beginning to play out, I think being demonstrated by these numbers. Engagement is still really good and increasing. Monthly active users are up 16% year-over-year. Our daily and weekly cohorts growing even faster at 21%. People really engaging and using the software, which has been our North Star, driving to that engaged user. Retention remains solid.
Seasoned churn is steady in the mid ones, which is world-class when you're dealing with very small businesses as we are. Seasoned net dollar retention is now 93%. We had an investor day about a month ago in New York City, and it was really exciting for us to get a chance to meet a lot of our investors who have gotten behind the story and meet them in person, which was great. We outlined the way we see this decade playing out, the mega trend of small businesses adopting the cloud tools, following enterprises from last decade. We talked about the platform role that we believe Thryv can play within this greater ecosystem.
We outlined a goal of getting to $1 billion in SaaS revenue in 2027, $4 billion in 2032, and we still are really confident that that's a very realistic type of goal. We laid out the measurements by which you can keep an eye on our progress, the levers we're gonna use to get there, and the signposts along the way. If you missed that investor day, you can go to our website and you can dig in, see the presentations, see some video on it, learn more about us there. We believe that this year is off to a terrific start. With that, let me turn it over to Paul Rouse and let Paul take you through the numbers.
Thank you, Joe. As a reminder, we are going to focus on total SaaS and total Marketing Services results, which includes both domestic and international operations. This is how we provide guidance to start the year and will be the case going forward. We do feel this will be more helpful in modeling the business. Okay, let's talk about our first quarter results starting with our SaaS business. First quarter total SaaS revenue was $48.2 million, an increase of 29% year-over-year, and ahead of our guidance range. First quarter SaaS Adjusted EBITDA loss was -$6.8 million and better than our initial outlook. The reason for the improvement was due to delaying key product and engineering investments to future periods. Total SaaS ARPU was $352 for the first quarter, an increase of 16% year-over-year.
Total ending SaaS clients were 47,000 for the first quarter. As has been previously stated, we expect more balance between subscriber growth and ARPU expansion, which is reflected in our 2022 SaaS revenue guidance. Seasoned net dollar retention was 93% in the first quarter. As a reminder, seasoned net dollar retention represents clients that have been with us for over one year. Monthly churn remained stable in the quarter. Moving over to marketing services. First quarter total marketing services revenue was $260.2 million and ahead of guidance. The reason for the overperformance was due to the Vivial acquisition, which contributed $23 million in the quarter on a reported basis. First quarter total marketing services Adjusted EBITDA was $90.5 million, resulting in an Adjusted EBITDA margin of 35%.
Please note that our recent acquisition of Vivial Holdings had a negative drag of approximately 380 basis points on Adjusted EBITDA margin in the first quarter. First quarter total Marketing Services billings, excluding Vivial, were $222.6 million, a decline of 19% year-over-year. As is consistent with previous earnings calls, we are providing billings as an additional operational metric to give our investors better insight into our operational performance. Billings data will show a very consistent and steady decline in our Marketing Services business, which is shown to be lumpier on an accounting basis given the extended life cycle of our directories. This is provided in our first quarter investor presentation available on our investor relations website. Turning now to profitability and leverage for the consolidated business. First quarter consolidated adjusted gross margin was 67%.
First quarter consolidated Adjusted EBITDA was $83.7 million, representing Adjusted EBITDA margin of 27%. Finally, our net debt position was $567.5 million in the first quarter after accounting for the $22 million we borrowed for the acquisition of Vivial. Our leverage ratio for the first quarter, in accordance with our credit facility, was 1.55 times net debt to EBITDA and well below our covenant of 3 times. Let's talk about guidance for 2022. For the second quarter of 2022, we expect total SaaS revenue in the range of $50.5 million-$51 million, representing growth of 22%-23% year-over-year, and an Adjusted EBITDA loss in the range of $6 million-$6.5 million.
For the full year 2022, we are raising our guide for total SaaS revenue in the range of $208 million-$209 million, representing growth 22% year-over-year. We are reiterating our SaaS EBITDA loss in the range of $21 million-$25 million. For the full year 2022, we are raising our guide on total Marketing Services revenue in the range of $905 million-$920 million, and raising Adjusted EBITDA range to $315 million-$320 million, representing an EBITDA margin of 35%. Consistent with previous calls, we will provide quarterly ranges for Marketing Services revenue for the remainder of the year, which can be found in our first quarter investor presentation on our website.
We provide these figures because sales canvas process allows for strong visibility into future revenues and because print publication timing is not generally consistent quarter to quarter. Now I will turn the call back to Joe. Joe?
Thanks, Paul. A few more items before we go to Q&A. First, I'd like to start with Vivial. We made the Vivial acquisition in Q1, and we're off to a really great start with Vivial. We've picked up some excellent people that really understand the local market, have good customer relationships, and they're gonna be really additive to the overall Thryv story. We're really excited about the Vivial employees. We also picked up with Vivial a bunch of great customers, and they're already beginning to buy the SaaS product. When we look forward to 2023, you will see strong growth coming through from this additional leg we just added, this big customer base from Vivial that we added will really flatter our growth as we go into 2023. Another area that I think will be very strong next year is international. We recently hired Marie-Michèle Caron.
She came in as President of International Markets. Marie has a lot of SaaS experience. She has worked around the world, created partnerships, affiliates, and it'll be her job to really rapidly expand Thryv internationally, and she's got the chops and experience to do it. As you look at your models and our plans for 2023, international's gonna become a bigger part of the story, in addition to the very strong results we're continuing to get from the U.S. Pretty excited about what international can do and can add. With that, I'd like to turn it over to questions. Operator?
Thank you. At this time, I would like to remind everyone, in order to ask a question, press star, then the number one on your telephone keypad. We ask that you please limit yourself to one question and one follow-up question, and we will pause for just a moment to compile the Q&A roster. We will take our first question from Arjun Bhatia with William Blair. Your line is open.
Perfect. Thank you. Joe, maybe if we can start with you. I just wanted to get a sense for what you're seeing in the customer base and the broader SMB market in terms of sentiment and appetite to invest in software at this time. I know there's been obviously a lot of macro headlines with inflation and, you know, interest rates and recession risk, et cetera. I'm curious, it seems like, you know, it was at least a good quarter from a customer adds perspective, but would love to hear what you're seeing and hearing from customers.
Thanks, Arjun. Yeah, you're right. There's certainly a lot of, you know, external noise from, you know, the war to, you know, interest rate changes, and certainly challenges in hiring. We do hear these things. I would say that small business morale, a small business mindset, you know, is not quite as bright as it was, you know, maybe back earlier when we were totally on the gas with all the, you know, quantitative easing and all the other incentives that were going on out there. It hasn't affected sales. I mean, customers are, you know, we're seeing still really strong demand, and that macro unstoppable trend we talk about of people moving from analog to digital, you know, moving to the cloud is very much still in play.
I would say, if anything, the challenges around hiring sort of cause you to wanna modernize because it actually is labor-saving. Some of the, you know, elements of Thryv are key marketing automation tools or appointment taking and scheduling tools or reminders. Some companies have people. In fact, just before this call started, I got two different calls from my dentist trying to confirm my appointment, you know, later this week. And, you know, by the way, my dentist has a Thryv. They're just a hundred years old. I'm having a hard time getting them to use all the technology. Anyway, I think it's very much labor-saving, and I think it's making a difference in terms of them realizing that adopting this technology, you know, can actually help them with that issue.
Overall, demand continues to be strong, and obviously we're reporting, you know, here on what happened in the first quarter, and we're well into the second quarter and, you know, things are continuing to go really well. We're very bullish on the year, as seen by the fact that we're upgrading, increasing our targets for the year.
Perfect. Thank you. Maybe I'll introduce you to my dentist who is still not digitally adept at this point. Maybe a follow-up for Paul. I think you mentioned that in SaaS EBITDA there were some product and engineering investments that were delayed into the future. Is that hiring environment that drove that? Maybe just give us a little bit of background, and then is there anything that we should think about in terms of impacts on the product roadmap as a result of those delayed investments?
Paul and I are gonna share this answer 'cause I'm trampling all over him like always. One of the big pieces of that was Vivial. You know, we had planned to hire product people and engineers. We had planned to hire some additional sales reps. In the Vivial acquisition in early January, we got all of that. We got a whole bunch. It allowed us to sort of acqui-hire those in and jump-start our plan for the year. That's part of our real bullishness on, you know, how we're gonna do this year. You know, it happened as a part of the acquisition price as opposed to a whole bunch of individual expenses. Now, you might, your follow-up question might be, well, does that mean you're gonna tuck that under your belt and not spend that money?
We'll still spend it. We're pretty excited about what's happening here. The targeted amount that we're gonna invest for the year, I think we're gonna stick with and just smooth it through the year. Paul, sorry to trample on you, but you can add to that answer if you want.
That's perfect.
Perfect. Thank you both. Very helpful. Take care.
Thanks, Arjun.
Your next question comes from the line of Scott Berg with Needham & Company. Your line is open.
Hey, everybody. This is John [inaudible] in for Scott Berg. Appreciate you taking my question. First, just wanted to peel the onion on engagement a little bit. I guess, what are some of the things that you're seeing resonate the most, maybe thinking in the context of add-on modules and some new, newer features that you've launched, investments across customer success? Maybe if we could drill into that a little bit more, that'd be helpful. Thank you.
Yeah. I mean, the progress on engagement is just stunning. We had a board meeting the last couple of days, and we were looking at the growth in engagement relative to the growth in customers. It's I mean, engagement's outpacing customer growth by 5 to 1. It's spectacular. We consider it a really firm leading indicator on retention and low churn going forward and our ability to really bed these customers down and grow ARPU by delivering, you know, more products to them over time. You know, I would say the biggest driver of this really strong engagement is the continuing perfecting our onboarding process. We have a very slick onboarding tool, onboarding widget now that's helping people get up quicker and get going.
We've really altered and improved our onboarding process and just getting a lot more people using the tool more quickly. We also have kind of focused our sales call and our onboarding on the specific problem that small business is trying to solve, as opposed to kind of making it a product tour or going into a lot of different areas. We know going into it, there's a prep call before we do onboarding. We know that's this is why this guy bought, because he's trying to get scheduling figured out, or he's trying to deal with payments, or he's trying to fix social. That's where we go. Then we confirm at the end of the call, confirm at the beginning that that's what they wanna do, and at the end, we confirm that we've accomplished that.
Then we say, "Well, in future calls we'll build on that." That's really getting people right in and using it. It's just, you know, we're using a rifle instead of a shotgun. We're really getting right at the topic that that's at issue. Now we are innovating the product. We've had, you know, so far this year, we've had more product releases and product innovation than we had all of last year or in any year, because of the level of investment we've got now in product and engineering. And the product is getting better. I can't point to any one product improvement that's driven it as much as just really the process, I think.
Got it. That's helpful. Second, just wondering if you could give us an update on the mix of new customer growth from conversions versus some of the new channels that you guys have been ramping? Thank you.
Yes. Thank you. A simple way to think about this is our customers come in three buckets. Approximately 1/3 are coming from our existing Marketing Services legacy customer base. Sometimes we call it the zoo, you know, our hunting in the zoo, our existing customers. An additional 1/3 are referrals coming from those happy customers there. It's our local sales force just selling the friend of the customer that already bought. And that the pace of those referrals is really picking up as we're driving our Net Promoter Scores up, and as our churn numbers are driving down and our engagement's going up, we're seeing more referrals than ever.
Occasionally investors will ask me, "Well, when are you gonna run through the whole zoo?" The zoo is self-generating because it keeps, you know, generating more referrals, and of course, we keep selling new businesses into the zoo. 1/3 from our local traditional base, 1/3 referrals out of that base. The final third is coming from all the various new channel activities that frankly we're, you know, still learning at and still improving. Each quarter we get a little bit better at our inbound sales activity. You know, we're doing all kinds of content marketing online or directly, you know, advertising online, driving people to our website. They're clicking on, "Hey, I want a demo," and they're coming down through a funnel, and they're buying.
We've got a partner channel where we're working with partners, affiliates, resellers, and then we've got a multi-location franchise channel. That franchise channel in particular is off to a super fast start this year. Those areas are all developing at various speeds and improving. They're not perfect. I wouldn't point to those as our absolute best areas, but we're making really good progress in those areas, and sales are breaking out about a third, a third, and a third.
Awesome. Thank you, guys.
Your next question comes from the line of Zach Cummins with B. Riley Securities. Your line is open.
Yep. Hi, good afternoon, Joe and Paul. Congrats again on the strong results here, and thanks for taking my questions. Joe, in terms of ARPU growth in the SaaS business, I know you've outlined that we're supposed to have a more balanced approach between new customer growth and ARPU growth this year. Can you talk about some of the opportunities to continue to grow that ARPU number, and is a lot of that really dependent upon rolling out these new centers that you outlined at your Investor Day?
I mean, certainly new centers are gonna be a big part of it. You know, if you think about kind of the long-range targets we laid out at our investor day, broadly speaking, it sort of imagined average revenue per customer going from about $4,000 a year per customer to more like $6,000 over the next, you know, say five years. I would contrast that with like a HubSpot where they're getting nearly $12,000 right now. We don't think that that's all that high stepping. We think it's very, very possible. You know, we see our customers as they engage more, you know, using more of the product. They're getting more of their employees licensed. One of the things I'm really excited about is our customers are growing.
You know, in the local marketplace, the Thryv customer is at a tremendous advantage to a small business that's unclouded. I mean, they're gonna be found easier online, they're gonna be really easy to do business with, and they're just gonna do better. They're gonna compete for more carpet cleaning jobs or whatever they do. Our customer base is growing, and they're adding locations, they're adding employees. Good things are happening for our customer base. I've been at a board meeting the last couple of days looking at case studies of individual customers whose spend with us has expanded fivefold, you know, as they've been growing with us. Part of it is genuinely helping them succeed is helping us grow their ARPUs. Adding new centers is certainly an important piece of it.
ThryvPay we don't talk about much, but it's a sleeping giant. I mean, it's, you know, $100 million and climbing fast, and, you know, there's a little teeny bit of revenue attached there. We never talk about that. We don't position ourselves as a payments company. We think of it more as a retention tool. You never cancel software that's paying you, let's be honest. You know, actually it's driving revenue too. That's another element. There are a bunch of add-ons. You know, there are a bunch of, you know, cool things that we offer for people, where they can buy a HIPAA-compliant version if they really, you know, need that extra level of security, et cetera. There's lots of things that we're able to do for customers. Centers is an important part of it.
You know, we're planning at least a big center a year as we look at the roadmap for the next few years.
Understood. Final question from me is around Vivial. I mean, can you talk about the revenue contribution we saw here in Q1? It's definitely, I think, above what I would add in my model. Pretty hot start out the gate. Can you talk about the opportunity there, just synergies within your existing domestic Marketing Services business and maybe potentially the opportunity you see to convert some of their customers over to the SaaS platform?
The last thing you said is why we bought them. We bought Vivial to get SaaS customers. To some of you, that might seem counterintuitive because they're not SaaS customers. They were buying marketing services. We've sort of perfected a process of getting in there and having that conversation, and we're off to a really good start. Hundreds of Vivial clients have already bought SaaS, and it's been literally weeks. We just trained sales force. The sales force is so excited about having this new future, this new mission of guiding small businesses into the cloud and helping them really be competitive in the marketplace, helping those businesses have a strong advantage against everybody else in the local market. The sales force is really excited about it, and they're signing up people very fast.
You know, I think the reason that we did the deal was we think that we will get thousands and thousands of additional SaaS subscribers out of the Vivial base over the next three years. That's why we did the deal. On the Marketing Services side, it was a slam dunk. We were able to crystallize a bunch of synergies 'cause there were a bunch of duplicate costs. Those Marketing Services fulfillment just run over our rails and, you know, it's just, it was a home run as far as that goes. It actually couldn't honestly be going any better. We're really, really happy with Vivial.
Understood. Great to hear. Well, thanks for taking my questions and best of luck here in Q2.
Thanks, Zach.
As a reminder, it is star one if you would like to ask a question, and your next question comes from Shrenik Kothari with Baird. Your line is open.
Hey, this is Shrenik on for Rob. Firstly, congratulations on the entrepreneur award, Joe. That's very well deserved. SaaS ARPU was kind of flat sequentially, and I guess to a point by design that you reiterated again, and the customer growth is kind of picking up nicely, so it grew, like, 6% year-over-year from low single digits previous quarter. Can you talk a little bit about the drivers and strategies, especially from the verticalization of the offering standpoint? I know you highlighted the dentist example here, and you guys talked about carving out specific offerings for different verticals, dental, HVAC and so on.
Can you talk about the traction you're seeing there in terms of customer adds, and the overall contribution?
Sure. Yeah. I mean, look, Thryv has set out to be the platform that small businesses will run on. We believe that these guys that sort of dip their toe in the water and try one point solution or two little point solutions pretty quickly get frustrated with having to buy all these different point solutions from different vendors and log in and out of them, and sticky notes all over their desks, and the data doesn't share. They wanna graduate to a more complete platform, a more complete tool, and we're just sitting there waiting for them. You know, it's a trickle right now. It'll be a wave over the next couple of years of people graduating to this more all-in-one big platform. Look, being a platform probably wasn't cool a few years ago.
It was actually hard to sell a platform because they were barely ready for a point solution, let alone a platform. We're, you know, every dog has his day. We're kinda in the right place as this market unfolds over the next couple of years. We go to the market with that advantage. The way some people would compete with us is they'd go in and say, "Well, we're especially for pest control guys. Like, this is what we do.
You know, we keep track of when you apply the chemicals and what the humidity was that day, and the temperature, and that's, you know, right there in the customer's file." Taking our tremendous strength within home services and beginning to verticalize that just seemed like a logical step to us, both from the way we present and the way we market to then the way we fulfill when you deal with the product. As you come through, and you tell us you're a plumber or you tell us you're a roofer or whatever, we start to interact with you that way. And the product, the whole experience starts to customize that way. We're still honestly pretty early in that journey.
You know, I think there's a lot left for us to do there, but it's clearly beginning to get some traction. You can see it in the customer growth numbers. We said that we would balance growth this year between, I guess, one of the criticism last year was, "Well, geez, you know, you grew a lot. You had really strong growth, but a lot of it came from ARPU growth. That scares us." I said, "Don't worry, you know, all the initiatives to drive subscriber growth are kicking in right now 'cause we have a lot of forward visibility." I promised that we would be able to grow double digits and really balance those two this year. I can tell you sitting here in May, I mean, that's exactly what's happening. It's playing out.
We're seeing sub growth come on very, very strong. I think it continues to be scope for more ARPU growth as we go through the year. That's gonna drive strong growth, and some of it will come from the verticalization.
Got it. It's really helpful. Just one quick follow-up on the ThryvPay. It seems like the traction kind of continues to grow. I saw, like, the TPV number up 100 million annualized, which was I think up from 60 million that you guys kind of highlighted last quarter. Just wanted to kind of get a sense of the attach rate and the market share kind of progress thus far. I remember you mentioned it was greater than 50% last quarter. Just some status update there.
Yeah. The trend continues. Within our customer base, within Thryv subscribers, it's now the most preferred payment option. You're allowed when you come in, you know, to bring your Square, your whatever you're using, no problem. We're Switzerland, we'll take anybody. We're totally an open shop. But pretty quickly, they seem to switch to ThryvPay because it's just so slick and so fully integrated, the fees are lower, and it just works so well. So that's a continuing trend. We see more and more and more of our customers coming over that way. What's earlier in its life and much earlier in its success is our ThryvPay freemium app.
That's when you haven't yet bought a Thryv, you just are knocking around on one of the app stores looking for a payment option, and you find ThryvPay, which is free, it's a freemium tool, download it and begin to use it. That is beginning to bubble up now. It took us a little while to sort of work out the getting people approved and getting it moving, but, we're seeing strong momentum there. I would expect, you know, in the coming year or two, that's gonna be an important contributor. We're hoping, honestly, it may even actually help us find some new SaaS subscribers for the software too. Although I can't point to any of those just yet, which is all just early days.
What ThryvPay does more than anything is it just locks customers in. I mean, if your software is paying you don't churn.
Got it. Thanks a lot, Joe. Appreciate it.
Thank you. Thanks for your questions.
Your next question comes from Daniel Moore with CJS Securities. Your line is open.
Thank you, Joe and Paul, and thanks for all the color. You covered most of my questions. Maybe one more. At the Analyst Day, you talked about, you know, the franchise customer penetration as being kind of a key driver, mid and longer term in terms of growth. Can you just talk about how you plan to go to market there, and can you know, maybe scale the size and scope of the opportunity? Thanks.
Yeah, I'd be glad to. That's off to a really good start this year. You know, Dan, one of the weird things is that when you're trying to work the franchise market and you can't go to the franchise shows because there aren't any, you know, or they're all virtual, it's just really tough to get traction. Those came back last fall, and they're meeting in person again. Those franchise shows are happening all over the place, and we're there. We've built some great social media presence in and around that. We're seeing, you know, lots of signings of new contracts of new franchises come through. We're really encouraged about the momentum there.
You know, one change that we haven't really announced externally, it's an internal thing, but, Marie-Michèle Caron, our new international leader, is actually gonna take that on. She's got a lot of experience in working in this type of space. It's just fresh thinking and a bunch of new ideas. She's excited, we're excited about, you know, her, you know, potential future impact on that. It'll also give us one motion, not just domestically but internationally as we go about this. A lot of these franchises have designs on, you know, moving outside the U.S. A lot of them already are, actually. We think that will work really well.
More to come on this, but you know, our little internal number is about to get blown away for the year here in another month or two. We're really doing well in this area. It took a little while to gestate, and the pandemic didn't help, but it's coming on nicely now.
Perfect. Maybe one more. If it's in the prepared docs, forgive me if I missed it. Vivial, what are we thinking for sort of the revenue and EBITDA contribution embedded in the full year guide? Thanks again.
Paul, I don't know what that number is. Do you?
Yeah. We haven't broken that out significantly, and we did that intentionally since we're blending the two organizations, and the Vivial's gonna be selling Thryv products and vice versa. We're merging the operational expenses. I think it's best to think of it as one organization and not as a separate one. We're really not gonna try to talk about Vivial going forward. It's just part of Thryv.
Yeah. Think of it as us taking Vivial and just sort of pouring its customers over our rails. It's gonna be pretty hard to track what the heck happened to Vivial in a minute 'cause it's just gonna be, you know, the Marketing Services stuff will go off into Marketing Services, and you know, their digital customers will largely convert to SaaS, or in some cases, keep their digital offering, but be fulfilled over the Thryv rails. It's just sort of gonna go away. It's definitely gonna flatter our numbers for the year, no doubt.
All right. Helpful again. Appreciate it. Best of luck on Q2.
Okay, thanks.
There are no further questions at this time. I will now turn the call back over to Mr. Joe Walsh for closing remarks.
Thank you very much. You know, just to wind up here, we're in a really good spot, you know. It's fun to deliver numbers that are better than the promise, and it's a lot of fun to be able to raise your guidance, and we got to just do both of those again. We've been able to do that a bunch of quarters, and we're pretty conservative with what we guide, so we hope to be able to do that in the future as well. There's a mega trend happening here. It's so big. I mean, the trend in the 2010s was enterprises moving their computing into the cloud. It was a big deal, and a lot of big businesses were built, a lot of money was made.
This next trend of small independent businesses moving to the cloud will be many, many times bigger than the enterprise trend was. There's just so many more of them. It's a big imperfect market. They will come on for different reasons at different times, but they will come on, and it will be an enormous wave. It's really important because those independent businesses, you know, in order to compete with global e-commerce, in order to compete with these, you know, roll-ups by private equity and all that kind of stuff, they're gonna need those tools.
You know, we think it's a noble mission that we're on, and we're deadly serious about guiding small businesses into the cloud and helping them take full advantage of the devices they already own, the phone in their pockets, the tablet that they're carrying around to be able to run their business, to have the freedom to move around, you know, anywhere they want and keep track of what's going on in their business. When it's time to do their taxes or whatever, they push a few buttons, and there it all is. You know, it's just that simple. When customers call them and they're right in the middle of providing service to one customer, you know, there can be an auto-respond that responds to them, so they can get back to them, so they don't lose that customer. You know, all those simple things.
You know, we're providing those things. It's important work. Our employee base, the Thryv employee base, is so passionate about the service that they give. It's easy to keep regenerating that passion because the feedback that we get from our customers every day is just one giant thank you, thank you, thank you. What you've done for me has made such a difference in my business. It just makes you wanna kind of run three miles and chop a cord of wood when you get off the phone with one of these guys because you know, we're making a big difference in their business. That's the mission that we're on, and it conveniently is turning into an incredible business. We're so glad that you investors that are with us have supported it and helped us get to here.
We're really excited about the balance of this year. Thank you very much.
This concludes today's conference call. You may now disconnect.