Thryv Holdings, Inc. Earnings Call Highlights Growth and Challenges

Thryv Holdings, Inc. ((THRY)) has held its Q1 earnings call. Read on for the main highlights of the call.

Thryv Holdings, Inc. recently held its earnings call, revealing a mixed sentiment. The company showcased strong revenue growth and a successful transition towards a SaaS business model, bolstered by the positive impact of the Keap acquisition. However, challenges in the Marketing Services segment and a cautious financial outlook due to macroeconomic uncertainties were also highlighted.

Significant Revenue Growth

Thryv reported an impressive 50% year-over-year revenue growth for Q1 2025. When adjusted for the Keap acquisition, this growth was still a robust 24%. This demonstrates the company’s strong performance and strategic growth initiatives.

SaaS Transformation Milestone

The earnings call underscored Thryv’s significant shift towards a SaaS business model, with SaaS revenue now accounting for 61% of total revenue. This transition marks a pivotal moment for the company as it continues to evolve its business strategy.

Subscriber and ARPU Growth

Thryv experienced a 37% growth in its subscriber base, reaching 96,000 subscribers, or 111,000 when including Keap subscribers. The average revenue per user (ARPU) increased to $335, with a solid net revenue retention rate of 103%, indicating strong customer engagement and satisfaction.

Successful Keap Acquisition

The acquisition of Keap contributed $18.9 million in Q1 revenue and is progressing well. Partners have shown interest in the full Thryv product catalog, suggesting a successful integration and potential for future growth.

Improved Adjusted EBITDA

Thryv’s total SaaS adjusted EBITDA increased to $10.8 million, with an adjusted EBITDA margin of 10%. This improvement reflects the company’s effective cost management and operational efficiency.

Decline in Marketing Services

The Marketing Services segment faced challenges, with revenue at $70.2 million and billings showing a 42% year-over-year decline. This decline is attributed to the company’s strategic transition towards SaaS.

Increased Net Debt

Thryv reported a net debt of $298 million, with a leverage ratio of 2.2 times net debt to EBITDA. This increase is due to planned upfront payments and other financial factors.

Cautious Outlook for 2025

The company adjusted its guidance for the year, citing economic uncertainty and potential macroeconomic challenges. This cautious outlook reflects the company’s awareness of the broader economic environment and its potential impact on business operations.

Forward-Looking Guidance

Looking ahead, Thryv provided guidance for the second quarter, expecting SaaS revenue between $113 million to $115 million and full-year SaaS revenue ranging from $460.5 million to $471 million. The company anticipates SaaS adjusted EBITDA for the year to be between $67 million and $71 million, implying a 15% adjusted EBITDA margin.

In summary, Thryv Holdings, Inc.’s earnings call presented a balanced view of its current performance and future prospects. While the company is experiencing strong growth and a successful SaaS transition, it remains cautious about the economic challenges ahead. The key takeaways include significant revenue growth, a successful Keap acquisition, and a strategic shift towards a SaaS business model.