Segment Information

9 Months Ended

Sep. 30, 2020

Segment Reporting [Abstract]

Segment Information

Segment Information

The Company's internal financial reporting and management structure is focused on the major types of services it provides. The Company manages operations using two operating segments which are also its reportable segments: (1) Marketing Services and (2) SaaS.

During the nine months ended September 30, 2020, the Company adjusted its methodology of allocating certain costs between its reportable segments. The current and prior year to date periods reflect the current allocation methodology.

The following tables summarize the operating results of our reportable segments (in thousands):

	Three Months Ended September 30, 2020
	Marketing Services		SaaS		Total
Revenue	$	208,504	$	31,821	$	240,325
Segment EBITDA	66,733		2,561		69,294

	Three Months Ended September 30, 2019
	Marketing Services		SaaS		Total
Revenue	$	287,794	$	31,322	$	319,116
Segment EBITDA	96,448		1,830		98,278

	Nine Months Ended September 30, 2020
	Marketing Services		SaaS		Total
Revenue	$	767,553	$	94,954	$	862,507
Segment EBITDA	289,423		10,785		300,208

	Nine Months Ended September 30, 2019
	Marketing Services		SaaS		Total
Revenue	$	980,072	$	96,172	$	1,076,244
Segment EBITDA	347,178		11,568		358,746

A reconciliation of total Segment EBITDA to the Company’s Income (loss) before (provision) benefit for income taxes is as follows (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Total Segment EBITDA	$	69,294	$	98,278	$	300,208	$	358,746
Impact of ASC 842	—		62		—		382
Interest expense	(15,609)		(23,666)		(53,551)		(71,068)
Depreciation and amortization	(35,454)		(50,471)		(110,883)		(155,285)
Other components of net periodic pension cost	(30,175)		(16,111)		(31,312)		(19,797)
(Loss) on early extinguishment of debt	—		—		—		(6,375)
Impairment charges	(1,184)		(60)		(19,414)		(5,059)
Restructuring and integration expenses (1)	(6,710)		(8,288)		(23,902)		(31,192)
Transaction costs (2)	(4,913)		(143)		(14,679)		(143)
Stock-based compensation (expense) benefit	(1,289)		4,863		4,195		(9,536)
Gain (loss) from remeasurement of indemnification asset	540		(3,736)		(3,878)		(4,646)
Other	1,105		410		2,960		390
(Loss) income before benefit (provision) for income taxes	$	(24,395)	$	1,138	$	49,744	$	56,417

(1)For the three months ended September 30, 2020, the Company incurred $3.3 million of severance expense, of which none was a result of the COVID-19 pandemic. For the nine months ended September 30, 2020, the Company incurred $10.6 million of severance expense, of which $5.0 million was a result of the COVID-19 pandemic, as discussed in Note 6. In addition, the Company incurred losses on disposal of fixed assets and capitalized software and costs associated with abandoned facilities and system consolidation.

(2)Consists of direct listing and other transaction costs.

The following table sets forth the Company's disaggregation of revenue based on services for the periods indicated (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Marketing Services
PYP	$	79,395	$	120,977	$	355,942	$	452,098
IYP	68,169		82,385		212,436		257,977
SEM	40,247		56,700		130,905		179,143
Other	20,693		27,732		68,270		90,854
Total Marketing Services	208,504		287,794		767,553		980,072
SaaS
Thryv Platform	22,324		22,829		67,518		72,877
Thryv Leads and Add-ons	9,497		8,493		27,436		23,295
Total SaaS	31,821		31,322		94,954		96,172
Total Revenue	$	240,325	$	319,116	$	862,507	$	1,076,244