Zach Cummins: Understood. Thanks for that. And Joe, you kind of have touched on it a little bit, but can you speak to the new technology leadership, I mean, with Rees Johnson coming on board. Any meaningful changes to how you’re thinking about your center strategy or any tweaks to the potential rollout plans with new leadership in place?
Joe Walsh: I don’t have anything to report on now. Obviously, we brought in a world-class executive. He’s come out of McAfee, Symantec, Forcepoint, some of these really incredible big brands, and he’s really quite an accomplished guy. I’m real proud of the fact that someone of his level would want to join somebody like us here at Thryv. We probably couldn’t have attracted somebody like this two or three or four years ago. But he sees the scale that we’re at, how big and how successful the company is. And candidly, how undervalued it is. He looks at it and he says, Wow, I want to be a part of that. So he’s looking at that and he looked at our software, he’s been under the hood kicking around and he has come back and said he’s impressed with what we’ve got.
Like any new guy coming in, he’s got new ideas, better ideas, ways, he is going to take it to another level. And it’s early days. I don’t have anything to report on that right at the moment. But directionally, the idea of building out this big platform is still very much what we’re doing, and we’re having a lot of success. So we’re not going to just change it right away. We’re going to keep building on that momentum.
Zach Cummins: Understood. Well thanks for taking my questions and best of luck with the rest of the quarter.
Joe Walsh: Thank you.
Operator: Our next question comes from the line of Daniel Moore from CJS Securities. Please go ahead.
Daniel Moore: Thank you. Good morning, Joe, good morning Paul. Just wanted to go back to the well-defined strategy of accelerating conversions from Marketing Services to Marketing Center. As we look at billings in Q1 for Marketing Services, it’s down 24%. Is that a good proxy for continued declines? Would you expect that to accelerate? And just talk about your ability to maintain the line on margins as that does.
Joe Walsh: Good question. We’ll continue to really guide you guys because we know that the way revenue needs to be recognized at the time of publication, unless you study our pub schedule and know which books are big and which books are small and all that, you’d have no way to follow it. So we will keep really giving you really prescriptive guidance so that you don’t get caught offside on how this is moving. And as mentioned earlier, we brought down the guidance a little bit for the year because we’re having so much success working into that. Paul, I don’t know if you want to jump in and offer any thoughts on how they should think about it longer term or how they should think about margin?
Paul Rouse: Yes. I think there really needs to be a paradigm shift in how we think about this. I think we should move away from thinking of margins and Marketing Services than margins and cash flow and EBITDA from the full business because there’s very high margins on the SaaS side. So you’re going to see — as we raised our guidance and EBITDA on the SaaS side, you’re going to see that go on continually. So you’re going to see continued declines in Marketing Services and growth on the SaaS EBITDA growth and margins, and consolidated is going to be pretty healthy. To just focus on Marketing Services, I think, loses the plot. So I think it’s more important to look at the overall EBITDA from the entire company because we are aggressively moving it there.
And does anybody really care where the EBITDA comes from? It’s probably more important that it comes from the growth part of the business. So I think that’s how I’m thinking about it, and I would encourage that’s probably the approach that most should take.
Daniel Moore: Makes perfect sense, Paul. I wouldn’t — I couldn’t agree more, and it leads to my second question, which is talk about your confidence that we’re approaching the trough for consolidated EBITDA in terms of the lines crossing. When you think about the updated guide for fiscal 2024, do you think you can hold that line or start to grow in 2025 and beyond or are there shifts in the publication schedule that could impact that again in 2025? Just — I know I’m not looking for outward guidance, but just trying to understand where we are in relation to those lines crossing and the overall starting to grow. Thanks again.
Joe Walsh: Paul, do you want to take that?
Paul Rouse: Yes. Obviously, that’s what we’re trying to do. You put your finger on a good point. We really have to look at the pub schedule and what’s happening there because while cash flow would remain strong, there could be blips in how EBITDA is recorded because of the publication schedule. But we’re getting closer. And each year, we get closer and closer to that. And we are focused like a laser beam in getting back to growth. I think I’ll just answer it that way because we haven’t really mapped out where 2025, 2026 in real detail to put the — just put a spike in the ground and just tell you what we expect quite yet.
