Good afternoon, everyone, and thank you for joining today's demo showcasing our new Thryv Growth Platform. My name is Cameron Lessard, and I lead IR at Thryv. Our guests today are Joe Walsh, Chairman and CEO, Grant Freeman, our President, Rees Johnson, our Chief Product Officer, and Ben Kaplan and Crystal Rees from the product leadership team that built what you're about to see. Our agenda is as follows, a 10-minute demo of the platform, and once the demo wraps, we'll open it up to Q&A with our covering analysts. For investors following along, they can email questions directly to the investorrelations@thryv.com mailbox or to me directly. With that, let's turn it over to Joe.
Thank you, Cameron. Appreciate that. Thank you all for being here. We really appreciate it. This is a big day for us. This is the unveiling of our Thryv Growth Platform, which we're super excited to tell you guys all about. For decades, we've been working with local service businesses, plumbers, lawyers, dentists, chiropractors, all the service businesses in the local economy. In most cases, these are people who are really good at what they do. They like to be a chiropractor, or they like to be a plumber. They're practicing their craft at a high level. They've built real businesses. The frustration that they have, we hear from them all the time, is around advertising and around wasted money on advertising.
The ambitious ones that want to grow and want to scale their businesses up are constantly tinkering, trying to figure out how to solve this wasted advertising problem. You layer on the technological shifts, where we've gone from analog to digital, now within digital, there's a constant movement there. It's very difficult to figure out what works, and something that is working might stop working at some point. It's just been a challenge. There's a lot of different software companies and a lot of different marketing companies that have tools that they've signed up for.
In some cases, they're using two, three, four, five different tools trying to keep track of it, and they're still trying to be the roofer while they're doing that. There's an overall frustration there with this. Over the last number of years, our Thryv product portfolio has been evolving. We came out with Marketing Center, and Marketing Center began to address that, began to tell them exactly what worked and exactly how it worked. Tim, maybe you'll throw up that first slide for me.
Over the last few years, we've seen an acceleration in growth of this Marketing Center product. It's going up and up and up. If you look at our Market, S ell, Grow package, you can see there's just tremendous growth. Building on that success, building on those conversations we've had with customers, we've really made a really key insight, that's a lot of these small business people, they want control. They want to know what it is. They want to be able to understand it. They want to be able to put their hands on it.
They don't just want to go hands-free and give it to an agency and be in the dark and hope for the best. There are points along the journey, once they're comfortable that it's working, they kinda want to turn it over to somebody else. We've got ability to do almost like a hybrid model where we can do it with them, we can do it for them, and we have the AI doing a lot of it for them in this new product. Maybe throw up that next slide, Tim.
This is all about getting found on that vast online map of all the places that people could be, about growing your business, getting leads, keeping your order book full, and then about investing smarter, about knowing exactly what is and isn't working and being able to monitor that. If you've done an expensive truck wrap, is that pulling calls? You can actually track that. If you've got a yard sign in front of a business that you're working on, you can track that, too.
You can track everything that you're doing digitally and analog, all in this platform that we've built, and you can actually figure out exactly what worked and what didn't. Next slide, please. What we're finding in the beta period and the early run-up to this release is that we're delivering 1.5x faster closes with the AI insights that we're able to deliver and about 40% more revenue per client because you know with precision what the problem is, and the sales conversation and everything is going right at the heart of it. You've got scored leads that are showing you.
A very high percentage of the sales that you're coming through are coming through these AI-scored leads. The new platform does a lot. We're super excited about sharing it with you. We've got Crystal Rees here today with us to take you through this new platform, and then we're going to have an opportunity to answer a whole bunch of questions. Crystal, if you could take it away.
Here's what's happening in small businesses right now. The search world that built a generation of contractors is disappearing. Google, AI, everything is shifting, and most SMBs don't even know it yet, or they're already losing visibility because their competitors figured it out first. That's the problem that we're solving with the Thryv Growth Platform.
We're building a system that helps small businesses understand the health of their business in the new world and that actually do something about it. Not manually, but systematically with AI doing the work while they run their business. Let me show you what that looks like through the eyes of an HVAC owner. This is the Digital Marketing Score, our unified performance signal. The system has identified exactly what's dragging this business down. Business hours aren't listed, the Google Business Profile is missing photos, and key listings are incomplete.
These aren't guesses. This is the data. For an HVAC contractor right now, these gaps mean they're invisible to AI, and that means a phone call they won't get, a lead their competitor wins instead. The score does one thing. It tells the business owner what to fix first. Stack ranked by their own goals. No noise, just signal. Everything the score told us to fix, AI helps you fix it without starting from scratch. Start with the website, here's something important. We meet businesses where they are. Already have a site you love?
We score it and track its performance so you know exactly how it's doing in an AI-driven search and what to improve. You stay in control of your business. If you want, AI builds you a new one, the layout, the copy, the structure, all generated for this HVAC business and built to score well in AI search. No designer, no copywriter. The business owner reviews it, makes the edits they want, and publishes a site that works on desktop, tablet, and mobile.
Either way, your site, your call, and a clear score telling you how it performs. You get to optimize what you already have or start with a beautiful turnkey website solution. On your site, you're showcasing your reviews. Watch how those reviews come in, AI drafts the response. The business owner reads it, tweaks it if they want, and approves. Every review answered, every time, and that responsiveness is exactly what AI models and search engines reward.
Social, AI generates the image and writes the caption, content that actually fits your brand. The business owner reviews, edits if needed, and it's live across their channels. There's no additional headcount, there's no blank page, that's the magic. AI generates the work your business needs to grow, you stay in control.
The website's live, reviews are answered, and social is posting. All of that visibility does exactly what it's supposed to do. You show up in AI search, consumers trust you because your listings are updated, your social proofing is real, the phone starts ringing, leads start coming in. When we head back to this dashboard, the AI Lead Insights widget is right at the top telling you where to start. Leads from calls, forms, messages, every single one scored by AI for buying intent.
We don't just collect your lead. We tell you which ones matter, this is already working. SMBs using this feature are seeing up to 40% more revenue per client. That's money in the bank, there's no guessing. For this one, AI has already read the message, summarized what they need, identified the action item, surfaced the score.
AI does all of this. If you don't want to just see your most recent, here's the full list. Every lead, every score, all in one place. This one, not ready yet. The system deprioritizes it. Here's the power. You don't waste your time chasing every lead. You focus on the ones that are actually worth your time, the high-intent ones that close, that's where 40% comes from. Your improved website, your listings, your social presence, they're all bringing in the leads.
This scores them so you know exactly where to focus. From every call, form, and message that comes in, the system is reading it and scoring it. That's converting more leads into closes because the business owner is talking to the right person at the right time. We're also making it incredibly simple to plug into the systems SMBs already use. One click, and now the score leads are flowing into their CRM automatically.
The lead comes with the intent score, the AI summary, and the action items already attached. Here's the key. We're not competing with these tools. We're coming alongside and amplifying the value those solutions are providing to their customers. The scored lead with the AI summary and the action items attached, that makes their CRM better. We're elevating the data flowing into their systems. We're solving the whole funnel, not forcing them into one tool.
Here's what's different. Most marketing platforms bury ROI in reports. Not transparent. We elevate it to the visibility view so the small business owner sees exactly how their spend brings them a return on investment. This is the funnel. Impressions, clicks, leads, all attributed by channel, and it projects ROI in dollars. When an HVAC service business sees their investment working, they start closing 1.5x faster on those leads.
They see it. They understand why the investment is working. Most platforms don't show it. It gets buried. It's not transparent, and we do it without requiring them to buy everything from us. It's based on a projected attribution and integrations with their existing tools, and that's what no one else is doing. Here's something new for us. You can buy your software from Thryv on your own, right here in the product.
No sales calls required. The business owner picks what they need, buys it, and gets started. As their business grows, they upgrade to the package their business has grown into. This is where we separate from every other software company. On top of our software, we offer Boosts. That's services that layer right on. If you need more leads, there's a boost for that.
You want us to run your social ads, respond to your reviews for you, build your website, and optimize it for you every month? Those are Boosts too. Software companies hand you tools and walk away, or agencies do the work but keep you in the dark. We're the only ones giving business owners the software and the services with visibility in one platform on their terms. It's about what businesses need, and that's the Thryv Growth Platform.
You just watched the whole journey. One score that tells a business owner exactly where they stand, AI that builds the website, answers their reviews, and creates the social credibility with no added headcount. Every lead scored so they know which ones matter, and that's already worth up to 40% more revenue per client.
Their spend tracked all the way down to projected ROI in dollars. Transparency nobody else in this space is giving them, and they can buy it and grow into it entirely on their own terms. Here's the contrast that matters. Our competitors keep selling all-in-one business solutions, the market hasn't liked all-in-one. Businesses want solutions that deliver, this isn't an all-in-one solution. It's just the solution that meets businesses where they are so they can get found, grow, and invest. That's why customers stay. That's what no one else is doing, and that's the Thryv Growth Platform.
So far, this year, with the help of the Thryv Growth Platform, we have pulled in over $600,000 of revenue, which is well over a 5x increase. I'm Mordechai with Mr. Mini Split. We install ductless heat pump systems in the Hudson Valley, New York area, and we install heating and cooling systems throughout the area as well.
Before signing up with the Thryv platform, I was self-managing all of my lead generation. I would say I was getting an average of five or six leads a month. All of that was very quick to change once I started working with the Thryv team. I was able to put my money to work for me with very minimal effort on my part. The Thryv platform makes it very easy for me to acknowledge, recognize, and reply to those leads efficiently and effectively with the AI generation tools.
We have 20-hour days pretty regularly. The Thryv Growth Platform is exactly a marketing team without the payroll. I know what I'm putting into it, and I know everything I do put into it is going to work for me. I have been very, very impressed by the amount of money that each dollar has been making me with the Thryv platform.
I am able to comfortably, continuously up my monthly spend with the platform because I am seeing such consistent and tremendous returns on that investment that I am making. I went from a man in a truck to a legitimate company here, and that happened in the span of six months. It was a really great working relationship because you guys make me more money, I give you more money, and we just go up and up from there. It's a never-ending success story.
Wow, that was terrific. I'd like to bring our other panelists in. We're going to be doing a question- and- answer session now. Look forward to your thoughts and your questions. Tim, we're going to bring in the analysts as well, or?
Yes, sir. I've promoted them to panelists.
Thanks.
They have the ability to turn their camera on and unmute their mic.
Oh, great. That's great. Look forward to taking their questions. Crystal, that was a terrific job telling us about it. Thank you. That was really nice. Very concise, very clear.
Yeah. Thanks, Joe. It was fun just being able to talk to the customers, too. We like to launch new products, and it's always fun for a company, but it makes such a difference for our customers when it works for them, and that's what excites us—
Yeah.
—in the product team.
Hi, Matt.
Hi. Thank you guys for doing the demo. I think watching the demo, it's one of those products that just kind of makes sense, and I'm sure when you get it in the hands of customers, they can figure it out pretty quick. You kind of showed some of the self-service go to market. Could you just talk a little bit more, obviously, like if you're a one-man shop, right, you're the IT department as well as the plumber or whatever your main business is. How are you ensuring that customers are successful right away and can kind of figure out everything that the platform has to offer?
Yeah, good question. Okay. Go ahead, sir.
We can—
Take it, Rees.
Go ahead. We can see how a customer's successful right away by optimizing their Google Business Profile, taking all their listings and pushing it out into dozens of other listing platforms, and then seeing what kind of leads come in. Also seeing what kind of presence, web activity, web clicks, impressions. Also the social calendar.
If they get their social calendar up and running and they start pushing content out to multiple different people, multiple different platforms, excuse me, such as different Meta platforms or others. Those are some of the ways we see the customer really getting traction. The first one they do is often optimize Google Business Profile, push out their listings. [crosstalk]
Matt, just if I could just piggyback on that to get deeper into your question. Ben Kaplan, who's on the screen here, the handsome gentleman with the glasses, he comes to us from Constant Contact. A lot of experience of engaging with free trial and freemium offerings and so they've made the self-onboarding and self-provisioning very simple. It's step-by-step. It's a guided journey. Along the way, AI is popping up recommendations where it's already created what you're supposed to do next, and it really shifts the dynamic of the business owner from creator, which is where they get stalled, to approver. We're seeing success in onboarding that way, so we don't have to have a bunch of humans helping them along the way for the smaller customers.
Yeah. It's really exciting, Matt, in the sense that that smaller business, we want to be able to serve them, but in a very self-serve type of way, right? Basically, what the exciting part of the platform is, is that we can serve basically t wo markets with one product, right? We will get those smaller SMBs, and Crystal showed in the video that it's very intuitive of what they're supposed to do next because we've built this experience that is designed to be self-serve.
For larger businesses who have a little bit more experience and a little bit more complicated use cases, the product actually adapts to that, right? Because we are asking during the initial setup of what type of business they are, what's their vertical, what are their goals. We sort of understand intuitively from that information what the experience should morph into being, so that we can serve those two different markets, but within that same experience, right? We're really excited about that, the product's ability to do that because it expands our sort of addressable base because we're able to serve two markets with one product.
Yeah, I'll say, one of the businesses actually was telling us about how it does it for them. It was actually a pet boarding business. Said before Thryv, she'd go weeks without posting because she had that blank page, right? Like, "I don't know what to post. I've got a business, but I don't know what to do. I don't know what to put in my listings." She said, we put the tools together and put posts together for her in minutes using the platform. We weren't doing it for her. AI was doing it for her in that approver state. She said she immediately felt more polished. She was getting more business because of it, because new client inquiries come from checking your social presence.
Matt, do you have anything else or we'll jump over to Jason?
I'm sorry. I didn't know if you wanted to jump back and forth or just keep going. Could we talk, just kind of about that flywheel that the customer example is talking about, which is, I mean, exactly how I'm sure you imagine this platform working, where the return on ad spend gets reinvested back into Thryv, which leads to more revenue for them, which leads to more money on Thryv, and everybody's happy. Can you talk about kind of the data side of that as well and kind of are there use cases that you can use data across customers for benchmarking and things like that? Or kind of just how, I guess, that side of the flywheel works.
Rees, do you want to talk a little bit about that?
That's a really—
The data and just the sheer volume of transactions that we're able to study.
Yeah. Excellent. From a benchmarking standpoint, we actually do have a dashboard that is coming out in a follow-on release for different platforms, for example, social platforms, that will show how you compare to others from an industry standpoint. We already do that relative to things like CTR, like click-through rate. We're more than double the standards, for social, for Meta platforms, for example. We definitely are doing industry benchmarking because of our vast trove of data.
Joe asked me to talk a little bit about the data from the ROI perspective. So far we've done a measurement, and we've been working on this for a while, so we've had this in beta for a while, and we have, from November 2025 to into 2026, 2.7 million leads scored. We have 35,000 MCs that are now available for this functionality in addition to our new Thryv Growth Platform, a lot of this functionality.
We've noticed that what happens is, if you have the lead scoring turned on versus if you don't have it turned on, and this is real data, this isn't survey data, right? We have 416,000 new clients with an AI lead score, 121,000 without. Really clean, strong data of with and without. Those scores that Joe showed is real-world data that our customers do convert at 50% higher the rate of a lead when they have this functionality in this platform, and they do get 40% more revenue per client.
For example, we've got a cosmetic dentist on the East Coast. They've gotten 2,700 leads so far as part of this program. They're able to set up two dozen additional appointments per week because they have this insight, and they can focus right into where to call back and where to spend their time.
Very good.
Jason, how are you today?
I'm good. How are you?
Well, this is a big day for us. We're excited.
Good. Good to see you. Thanks for hosting this. Just wanted to talk about a push versus pull in terms of a cross-sell, up-sell opportunity. Obviously, you're embedding a lot of self-serve into the platform. At what point does a salesperson get interjected into the conversation and try to push the client into something that might serve them a little bit better?
Yeah, I mean, it's really a matter of spend. This thing, there's a free version, there's a $99 version where you kind of put your own credit card in, and it's all set up to do it without you and the AI, without really us getting too involved. We'll be monitoring all that, and if your firmographic information is of a bigger company and you are showing certain other kind of green signals, at some point, that gets promoted to an SDR talking to you about maybe meeting with one of our business advisors. We're really trying to deploy our business advisors at $400 a month and up, a little bit bigger span, a little bit bigger customer.
It's just hard for us to afford to do it for the smallest. We've created this kind of dual track where we've got the self-serve and then the we go help you out. Within that group of people that are coming in through the free trial or coming in through the entry-level do it yourself, there's going to be some great leads coming out of that and some great people that we can grow.
Joe, could I share one more use case?
Please.
Something that the business advisors, Jason, were super excited about at the rollout on Monday was that if somebody didn't say yes after the first couple of appointments, they kind of had to leave, and there was no free version that they could give the up-market prospect to get their hands on and connect some things and feel the power before just asking them to convert.
Now, when they can't close the deal, they can help them by activating the free trial, which in essence is just the great platform on its own, free for 30 days. They can get them set up really quickly, and they can now come back and have a more relevant conversation, and somebody's experiencing the power of the platform versus them just talking about it every time they come back. That's a really exciting way that they're going to use this to land more of the up-market customers as well.
I love this, Grant, because you and I have talked about free trials for a couple of years now. We've talked about how this has been in beta for a long time. Can you share anything about the effectiveness of a free trial and what your thoughts are on conversion and that ability to grow through that means?
Ben, why don't you take that one?
Yeah.
Oh, Ben, you're muted.
I'm sure it's very good, what you're saying.
Sorry, Jason. Yeah, we are seeing really, really strong engagement, right? Given that this is a brand new motion for us, I couldn't be happier with what we're seeing from the level of engagement from our customers. Right? It is a tremendous amount of work that the team has put in over a tremendously long period of time to build this experience that we believe in.
Right? And in terms of— and what I mean by that is it is extremely simple to sign up, it is extremely simple to get started, and we have done a really good job at explaining the value of the platform in terms of get your listing set up and why that's important to the business, why it's important to connect to your social, why it's important to do Google Business Profiles, we've talked about, and connect a CTN to it. Right?
It is extremely intuitive, and what we saw week-over-week in terms of the beta was that we were driving engagement up and to the right, which is exactly what you want to see when you come out with an effort like this. We are seeing extremely good engagement from our customers. When those customers end up speaking to a sales rep, in the terms of if we know that they're going to be a $400 a month customer, what we're finding is those customers have a much better understanding of what we do as a company, therefore, our sellers are having a much easier time having a conversation with those prospects about our overall holistic offering and having a much easier sale and conversion effort.
Joe, can I squeeze in one more?
Sure.
If I'm an existing Thryv customer using a Marketing Center, a Business Center, full suite of services, whatever that may be, what does this process look like for me? Whether something has already happened or something's going to happen in terms of migrating to this new platform versus what I'm using today.
Yeah. As I mentioned in the opening, the impetus and the confirmation that we needed, the direction we wanted to go in, came from the success of Marketing Center. Marketing Center was initially written before this kind of AI explosion had happened. It had some elements in it, but it wasn't really written from the studs up as AI. This is really Marketing Center on steroids, on steroids. The transition over for them, they won't lose anything.
They'll gain a whole bunch of stuff. Today, right now, the customers being put on the new platform are the ones buying it new. We have a plan of migration that will happen over the next period of time. We're not prepared to go through every detail of it today. It's not something where they're going to lose a function, or they're going to have a big price up. It'll just be we'll upgrade them, and we'll be there with client experience to make sure they understand how to leverage it.
Good stuff. Thanks, Joe.
All right. Alinda, you got some good zinger questions for us?
Yes, I do. I know it says on there Arjun Bhatia, but Alinda Li here for William Blair for Arjun Bhatia. Joe, in terms of the AI Score, that's something that sounds very interesting, sounds something that customers do really want, especially in the new era of AI. Could you give us a little bit more insights in terms of what is the measurement behind the AI Score? How does a score comes about, and is that different per industry, depending on each customer? Maybe a customer is in the HVAC industry. Maybe is the measurement for that a little bit different than another customer of yours using a platform in a different industry?
Crystal, could I pitch that one to you?
Yeah, no problem. I'm actually really glad you asked that, Alinda.
Good.
I think you said Alinda?
Yes.
Awesome. Yeah, I'm glad you asked. I get to brag on the team a bit here. Lead scoring, it's not something that's new for us as a company. It's actually something we used to do with real humans, listening to calls, then we talked to thousands of businesses. We've been doing it for a very long time. We know exactly what the different verticals. We know what a plumber, a roofer, a med spa, we know what they qualify as a lead. We know what they want to get notified about. Some of those, they're on the roof, they don't want the notification for everything. They have to have that control, and we've learned that against all the verticals. We've used that to build the AI lead scoring.
What we do that's different and more than everyone else is that we've already scored 2.7 million leads through this platform already. We allow them to customize what the score means. If we say it's a three, we help them learn, they have that customization where they can change that and say, "This, to me, is not as important. I really want to focus on my fours and fives." We help them focus that. They get the lead summary, they get the score, they get smart tags or tasks that they can actually have as follow-up items. It's more than just that score, but it's core to how we've designed it against all of the verticals.
That's super helpful. Another question is, with the new platform, what do you think customers are most excited about? Any particular parts of the platform that you think it's particularly interesting, that you're also very excited about?
I know what they're excited about. They're excited to have connected tools. They get really excited about being able to post to social and to connect all their listings. Right now, people, they understand listings a lot. They connect their Google Business Profile, they have a Yelp. They can do that on their own. What they can't do is the 16, the 60, the dozens of different listings. They can't keep up with them. They have a Digital Marketing Score that actually tells them where they are and exactly what they need to do next. For most, that is, "Hey, you've got a couple of listings. We'll give you 60 of them and help you publish that consistently."
That's what they're excited about. It saves them time, but it's more about the connected tools. A lot of them come with their own website. We score it and say, "Hey, you can use one of ours. We can build one for you," but we actually meet you where you are, that includes telling them what their website needs. Sometimes it's an AI chatbot they need on theirs, or there's something else that they need for data tracking, that's what they're excited is the Digital Marketing Score that brings it all together and tells them the health of their business, what to do next. Because they're less interested about learning about a new software. They want to know their business in this.
That's helpful. Thank you so much.
Yeah, I totally agree. Alinda, AI is an opportunity and a threat because if you don't sort of smile for the camera just the right way, you end up being shunted down to the bottom of the pile. Most people have figured that out and are trying to figure out how to get good at it. This is very relevant for answer engine optimization , everything that we're doing here to help you come up high and to know where you are missing or where you're hitting. That all goes into that score.
Helpful.
Matt, any more questions?
No. Yeah, always. I think now, instead of eating your own dog food, we now say drinking your own champagne. I think that is now what we're supposed to be using. When we're talking about lead scoring, can you just talk about how you can utilize this same methodology in terms of how you go to market and what makes the ideal customers and how you're thinking about what the characteristics of who's best suited to utilize this platform are?
Yeah, I'll give that one to Grant.
Again, we're sort of serving two parts of the market, right? We have the solopreneur starting out with the free trial, self-onboarding, and then converting most likely to a $99 offering. We do have more of the upmarket customers as well, Matt. What I would say is we use a variety of tools to score the opportunities, but what we're sort of bumping that against is we want prospects that have five or more employees that are generating $750,000 or more in annualized revenue.
That's sort of a sweet spot from there on up. As we do an analysis of the prospects that are coming in, using entities like ZoomInfo, et c., that you've heard of before, as we qualify those are the ones that would get the salesperson's attention, right? We have a lot of lead scoring and lead routing that's been built over the course of the last six months in preparation for this endeavor. I feel like we're really well-positioned to get the right prospect in the right hands.
I'm going to interject with—
Then—
—a investor question, if you don't mind. I got a few of these on the same topic. What is the new Thryv Growth Platform, what does this mean in the context of the recently announced strategic partnerships with Wix and Ooma? Do you think this will expand on other partnerships in the future?
Yes, directionally, we see ourselves as having a nice, neat patch within the kind of ecosystem that a small business lives in. That patch is around growth. Around growth, around driving leads in, filling your order book, measuring what works, what doesn't work. We have the announced partnerships that we've already announced and others that are in the works as well. There's a lot of energy and excitement around this new platform that will go into these partnership efforts.
One of the things that we can do, Ben talked about the free trial, we can actually offer the free trial into another base. They can actually give real value to somebody, and they can get some favorable experience. Then we can build on that for a possible sales conversation. That's not something we had before. In prior partnership efforts that we had, the call to action was get a demo.
Not everybody wants to sign up for a 45-minute or an hour demo with a salesperson. The ability to get in and muck around with the product, use it, and see its value and see where it lives in your business is a difference-maker, we think, that'll make those partnerships much more salient, much more effective. Matt, you got clipped on the end of your follow-on question there. Do you want to follow on here?
Cameron clipped his wings hard, honestly.
He's rough, man. Cameron's rough.
Email's blowin' up.
Not nice, Matt. Not nice at all. Sorry about that.
It's okay. Yeah, no, I was going to ask about the tiering. It seems like the natural transition from freemium is about the 30 days, right? What are kind of like the— I don't know if roadblocks is the right word, but the use cases that push people from tier to tier as kind of like that key pain point that moves you to that next level or the key successes, I guess, would be a nicer way to put it, that bring you to the next level.
Ben, you want to take that one?
Yeah, it's a great question because we obviously want the customer to grow with us, right? When they start with us, that is our starting point. We want to understand what that business is all about, what their goals are, and we want to cater or put them into the best package that suits their needs, right? In the case of $99.99, it could be a simple fact that they stagnate out in terms of growth, right? That we only expose their business to a limited number of listings platforms, right? At some point, we're going to tell them, "Hey, you could get 3x the visibility and awareness by moving to the Signature package, and you'll boost your visibility," which ultimately leads to more leads, right?
We've tried to build the packages in a way that provides a good amount of value for the price that you're buying or the purchase price, but not giving them everything in a way that makes them never want to upgrade, right? We limit their functionality within those packages so that they eventually cap out, and then we would do a good job over the course of their time with us mentioning that, "Hey, during the time that you've been in the Starter package, you've gotten X value. If you want to grow 10%, 20% more, upgrade to Signature and unlock these features," right?
That could involve a call, it could be an in-app message, it could be an email, but we will do a good job of nurturing that customer through their journey so that they understand the value they're getting in that package, and then also exposing them at the right place at the right time for how they can turbocharge their business, and maybe they get a boost, right?
They start to understand the ecosystem that we have. They could offer or they could be offered a professional service, right? That we do something for them, which again, just exposes them to more and more of what we offer in terms of do it yourself or do it for me. There's a lot of different ways that we can get a customer into a higher price point that makes sense for that business at the right place and the right time.
Yeah. If I could add onto that, the data as a moat concept too. Anyone out there can rent an AI model and use data, but they can't get our data. We know exactly what businesses have been doing to grow, that no one else has that, and we've seen their growth, and that's where we come in. We've gotten so much smarter about it. We don't just say, "Okay, at 30 days, at one year, we will upsell them this." We say, "You know what? The data says they're really interested in social. They need a little help in social. We have something to come alongside them." It becomes about what feature area they need help in, not just about an upsell. It really becomes about their business and where they want to grow.
All right. Yeah, that was my follow-up question, was about meeting them kind of in the moment instead of on a stationary renewal cycle. Thank you.
It's a big shift. It's a hard shift from a product team trying to build the product to learn that. There's so much data that goes behind it's something that it's unifying all of our sources. It's unifying all of our knowledge of all the real humans that have been with us this whole journey. It's the exciting part when you have to put the data in a system that actually makes sense. It's a hard puzzle to solve, but it's one that we like doing.
I have a follow-up question on that. In terms of the add-ons, so the Boosts, respond to reviews, and also running the social ads, is that something that customers will be able to buy separately in addition to their subscription, or is that something that they will have to upgrade to the higher tier in order to have access to those services?
No. They can buy it separately. They can add it, they can pulse it, they can take it up, they can take it down, they can move it around so that you have the base software platform that's measuring how everything's working, then you can turn the Boosts on and off and elevate them in the way that you think makes sense.
Got it. That's helpful.
You have seasonal businesses. We have a lot of businesses up in the upper Midwest where it's bitter cold for a few months in the winter. Some of them work like crazy 10 months a year, and for about two months a year, they go to Florida. They're just like, "I'm not going to fight the snow. I'm not even going to bother." They might pause a campaign or take it way down during that period then turn it up big time in the spring. We are able to sort of meet them where they are, which they like a lot. Some of our prior offerings didn't have as much flexibility, and we would end up grinding with the customers over some of those issues.
Real quick, just one more comment on that. The power of the platform when you do add the leads products to it, and we service that for them, is that as they come in, as we do the AI Lead Insights sentiment analysis and scoring, the system learns which media outlets are delivering the most four and five-scored leads, the leads that have the highest probability of conversion, and it automatically, we have a AI budget optimization layer in the platform that will reallocate the customer spend to the channels that are yielding the greatest return. That's the sort of kick-on-flywheel effect at the customer level, where we're using their own data to get them ever-increasing results month after month, which is also a big retention and expansion play.
Yeah, if I can pile on, that changes.
Yeah.
What works maybe in the spring—
Yeah.
—could be different by September, just by movement in the market, this thing is monitoring it and it's recommending that you be over here and t hat's big.
Yeah.
Cameron, any more questions from the folks out there in audience land? You're on mute, Cam.
I have one. This will be for Rees. Can you give some more examples of, either in the beta phase of clients experiencing the Thryv Growth Platform, any anecdotal information you can share?
You bet. Thanks, Cam. There's a couple. If we take a look at Mr. Mini Split, let's double-click on that a little bit. His revenue growth was $120,000. 5x, right? $600,000 is the same three-month window year-over-year, number one. Number two, here you are, you've got your search presence, your Google presence in the Hudson Valley market. He was number 17+ . Depends on what day you checked it, where he would land, and he moved that up to number one. Clearly, boom, first, he was number one, as you can imagine, that helps with the AI chatbots as well. That comes up.
You've got to be in the top three, it's even more critical with AI search that the AI search engines are popping you up to the top three, because very rarely does it mention more than a couple. Third, he had 85% more leads across all channels. I love how Grant went ahead and explained our Thryv Leads product with our AI budget optimization. We have a little over than a dozen lead sources. We have arrangements with all these companies, and we're able to, using our AI engine, move the budgets around very effectively.
Alinda, to answer your question as far as additional add-ons, then you can pop on also an SEO product or a social ads product. There's three big products on top of this platform that you can add that increases our AVO quite significantly. His lead close rate was pathetic. It was actually 10%. His lead close rate went to over 85%. That's just digging into the Hudson Valley account. We could also dig into a cosmetic dentist that I met with recently that's fun, if we have more time too, Cam.
Why don't we hold there and see if there's any other questions. We're coming up on time pretty soon here. Thank you for that, Rees. It was great. Cam, do you have any more from audience land?
Yeah, there's one for Grant. Does this mean the company no longer sells Marketing Center?
Well, correct. Moving forward, we will be selling the Thryv Growth Platform. We have a couple other things that we still have to connect, but that's right. Moving forward, we will be selling the Thryv Growth Platform to all net new. As referenced earlier in the conversation, we still have that sort of big body of Marketing Centers that, over the course of time, will be migrating efficiently and seamlessly over to the platform.
For Joe, how do you think about your addressable market now when you're selling Thryv Growth Platform? You no longer have to compete with CRMs. How do you think about partnering or selling to businesses that already have a CRM?
That's a big deal. Look, we're learning. Like you guys are learning in your job, we're learning in ours. We've been at this software thing for a decade. In the early going, we were bringing fire to cavemen. "Here's software." As things have moved along and matured, we've learned that these very smaller businesses are churnier, we really wanted to move upmarket. As we went out and started to call on the customers that had $1.5 million of revenue, they had a CRM, and they weren't necessarily super anxious to buy ours because they already had one, and they looked at switching like a root canal.
Even if ours might be better, somewhat better or a lot better, it still meant a switch. We sort of embraced this agnostic approach that said, "Bring the website you have, bring the CRM you have, bring whatever you're already doing. We'll plug into it, make it easy for you so you don't have a root canal, and we'll help you get more leads, fill up your order book and move forward." That was really a breakthrough for us. If you look at our quality clients, $400 or more spending, you see it's steadily moving up, and we're having a lot of success at making those bigger sales. Part of it is we're not asking them to do a root canal. Matt, any final ones from you?
No, I think I've used up all the air time I'm allotted here. I appreciate it, though.
That's great. Alinda, any more from you?
All good on my end as well. Thank you.
Jason's back. Look out.
I just went off video is all. No, I think this was really helpful. Thank you, Joe, I appreciate it.
Thank you very much. We really appreciate everyone—
Yes.
—attending—
Thank you.
—including the people who weren't on the panel here. We look forward to updating you on our results again soon. Thanks, everybody.
Thank you, everyone. Have a good day.
Thanks. All right, bye-bye.