Paul Rouse is CFO and treasurer of Thryv Holdings, Inc., a Nasdaq-listed company that provides a small-business software platform to clients who seek to reach more customers, stay organized, get paid faster, and generate reviews. Rouse has an extensive career in finance and has been CFO of Dallas-based Thryv for over 10 years.
Global Finance: How has the CFO role changed?
Paul Rouse: The speed of change has been incredible. You really have to be flexible and adapt because things move much faster than they used to. I started in public accounting at Ernst & Young, where we did everything manually. Ledgers and calculators. I even took the CPA exam without a calculator. Technology quickly took off. I became the computer auditor in our office simply because I learned how to use the Apple computer we were given. If you adapt quickly and embrace change, it can significantly boost your career. Now, you have to leverage artificial intelligence; if you’re not using it yet, you’re already behind.
GF: What do you use AI for at Thryv?
Rouse: We use it not just for finance but also for business operations, which I think is even more crucial. It automates tasks that people used to handle manually. For example, we use AuditBoard, which tracks everyone involved in a process, including auditors and staff. It’s essentially doing the internal audit work while also functioning as an organizational tool. These tools are vital now.
GF: Were there any tough periods at Thryv?
Rouse: There were two particularly tough periods. First, when I initially joined, we had to turn Thryv around. This involved restructuring the former company, setting up the right platform, and securing the proper capital structure. That was really challenging. Now, we’re at another pivotal point, transitioning fully from a Yellow Pages marketing business to a software company. These are two entirely different businesses. Thryv was formed in a 2017 merger between Dex Media, a Yellow Pages publisher that restructured its debt in 2016, and YP Holdings, another Yellow Pages publisher.
We’ve had to transition out of a declining business. The challenge is running that down for cash flow to fund our growing software business, which saw a 30% increase last quarter, all while keeping shareholders aware that this isn’t an easy journey. We’re close to completing this transition. This year, over 50% of our business will be software.
GF: Is being CFO of a relatively small firm different from the same job at a larger corporation?
Rouse: You have to be deeply involved in the business; it’s not enough to just be an accountant. You need to be an innovator, a strategist, a motivator. You have to lead efficiently, cost-effectively, and simply. For instance, we recently acquired a troubled software company in Phoenix, Arizona. I just got back from there, working hands-on to understand what went wrong, what they’re doing right, and how to integrate it with our existing operations. In larger companies, roles are more siloed.
GF: What keeps you up at night?
Rouse: Ensuring that we have the right capital structure to complete this transition. This means having the right mix of debt and equity and keeping all stakeholders aligned. It’s also about maintaining company morale and supporting our employees through this journey.
GF: What’s the key to maintaining good relationships with shareholders?
Rouse: Communication. You have to consistently keep them informed about where the company stands, especially since the journey is often bumpy and non-linear.
GF: What advice do you have for aspiring CFOs?
Rouse: It’s not for the faint of heart! You need to have the stomach for it. It’s very stressful, but also highly rewarding. And don’t think it’s all about math; it’s more about strategy. I haven’t done a spreadsheet in 20 years. It’s more about leadership, getting the right people on board, keeping everyone motivated, and ensuring no one loses sight of the goals. That’s the job, and I love it.
