Thryv Holdings, Inc. (NASDAQ:THRY) Q2 2023 Earnings Call Transcript

Joe Walsh: Great question. That is my dream, while I am sleeping at night. We designed this very innovative product and I think you are going to get to see it tomorrow, right, we are going to do a little demo. We designed this product as a freemium, as the kind of tip of the spear. And it’s been more than three years in development of investment of 100 plus engineers and product people working at this, building it, it’s been a major lift. And I think when you see just all the threads that pull together in one place for a customer, you are going to be impressed if not blown away. Business Center is much bigger, it’s a CRM, it’s a much bigger, it’s a much more difficult thing to offer for free, because a lot of the effort involved by both the small business that comes on and by Thryv to get them set up and onboarded is populating the CRM, getting everything set up.

It’s a — it’s more of a business process change. So it’s — it moves the needle more, if you go ahead and bite the bullet and do it, but it’s not something you could say, here, take it for free and give it a spin. You are not going to spend the time to populate the CRM and do all the stuff you need to. So this new Command Center, actually, if you accept the free Command Center and get using it, it actually begins to sort of build you a CRM, if you think about it, because you have got all that inbox stuff coming in sort of building a record of who your customers are and all that. So it’s a beautiful on-ramp. So we are not planning at this time to add a freemium or a PLG motion to the other centers. The on-ramp into the product will be Command Center.

But it will take what was kind of a two-lane highway coming into our company and make it a 10-lane massive interstate. So the number of people that we will be able to have a conversation with will broaden tremendously with the advent of Command Center.

Arjun Bhatia: Very helpful. Thank you.

Joe Walsh: Thanks, Arjun.

Operator: The next question comes from the line of Scott Berg from Needham & Company. Your line is open.

Scott Berg: Hi, everyone. Thanks for taking the question here. I have two here. First of all, Joe, you sound really excited about selling the new modules and the new product impact your base, and obviously, new customers. How do we think about how you are going to prioritize the marketing spend to do that? I know you pulled back on the marketing for some of the new inbound channels in the quarter, but knowing that some of these products probably require a little bit spend in those channels. How do we think about kind of your priorities are on marketing those new modules versus just selling the core platform today? Thank you.

Joe Walsh: Yeah. Well, let’s start with Command Center, which rolled out two days ago, I guess, in beta and we have had hundreds of sign-ups and we have had some people upgrade already. It’s off to a really good start in the dark without really any promotion. It is just our own employee is telling people about and sharing the thing. Our plan is to run it in beta briefly and then do a bigger kind of market launch after Labor Day with some earned media and promotion and advertising and all the stuff at that point to kick it off and get the word out there. We do believe it’s a sort of a self-discovery product that has the potential to really go viral, to be honest with you, because it delivers so much value for no money. I mean, the key element here is, it’s the best available product in the marketplace and it doesn’t cost anything.