Education
About Us
Working with TipRanks
Follow Us
Thryv Holdings (THRY)
NASDAQ:THRY
Top Page
Thryv Holdings
(NASDAQ:THRY)
52Neutral
Positive Factors
Earnings
4Q Adj. EBITDA outperformed with SaaS profitability much higher due to sustained Marketing Services migrations.
Financial Performance
Thryv's expected cumulative free cash flow generation provides a significant cushion to meet its net debt obligations.
Growth Prospects
Thryv shares are considered highly attractive at about 2x SaaS revenues for a durable and profitable growth thesis.
Negative Factors
ARPU Trends
ARPU continues to trend weaker, and it is unclear it will rebound this year as the company had expected.
Customer Growth
The SaaS segment added 3,000 new customers (excluding Keap customer adds), lower than the 11,000 net adds in the prior quarter.
Revenue
Marketing Services revenue declined (20%) year-over-year and was below guidance.
Thryv Holdings (THRY) vs. S&P 500 (SPY)
Market Cap
$522.62M
Dividend YieldN/A
Average Volume (3M)459.81K
Price to Earnings (P/E)―
Beta (1Y)1.30
Revenue Growth-10.12%
EPS Growth72.31%
CountryUS
Employees2,986
SectorCommunication Services
Sector Strength74
IndustryInternet Content & Information
Share Statistics
EPS (TTM)-2.09
Shares Outstanding43,371,147
10 Day Avg. Volume477,550
30 Day Avg. Volume459,808
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.80
Price to Cash Flow (P/CF)6.30
P/FCF Ratio6.30
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$20.67Price Target Upside71.54% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering5
Thryv Holdings Business Overview & Revenue Model
Company DescriptionThryv Holdings, Inc. provides digital marketing solutions and cloud-based tools to the small-to-medium sized businesses (SMBs). It operates through three segments: SaaS (Software as a Service), Marketing Services, and Thryv International. The company provides Thryv, an SMB end-to-end customer experience platform; Hub by Thryv, a solution for franchisors to offer real time oversight and day-to-day management of multiple locations; Thryv Leads, an integrated local marketing and lead generation solution, as well as related services; and ThryvPay, a payment solution that allows users to get paid through credit card and ACH. It also offers print and digital solutions, including the company's print yellow pages; internet yellow pages, such as yellowpages.com, superpages.com, dexknows.com, and extended search solutions; search engine marketing solutions; and other digital media solutions, including online display and social advertising, online presence and video, and search engine optimization tools. The company was formerly known as Dex Media Holdings, Inc. and changed its name to Thryv Holdings, Inc. in July 2019. Thryv Holdings, Inc. is based in DFW Airport, Texas.
How the Company Makes MoneyThryv Holdings generates revenue primarily through subscription fees for its software solutions. The company offers its platform on a subscription basis, enabling businesses to access a suite of tools designed to enhance their operational efficiency and marketing efforts. Key revenue streams include monthly or annual subscription fees from its CRM and marketing automation software, as well as additional services like website development and digital marketing. Thryv also benefits from strategic partnerships with other technology providers, which can enhance its offerings and customer reach, contributing to its revenue. In addition, the company may generate revenue from consulting and support services provided to its clients.
Thryv Holdings Financial Statement Overview
Summary
Thryv Holdings faces challenges with declining revenues and profitability, impacting its income statement negatively. The balance sheet shows improvement in leverage but remains a concern due to low equity ratios. Cash flow generation is a positive aspect, demonstrating operational resilience despite financial losses. Overall, the company needs to address revenue growth and profitability to improve its financial health.Income Statement
The company has seen a consistent decline in revenue over recent years, with a notable revenue decrease from 2022 to 2023. Gross profit margin remains relatively stable, but the net profit margin has been negative for the past two years, reflecting losses. The EBIT and EBITDA margins show operational challenges, particularly with EBIT consistently negative in recent periods.45
Neutral
Balance Sheet
The balance sheet shows a reduction in total debt and an increase in stockholders' equity, improving the debt-to-equity ratio. However, the equity ratio is relatively low, indicating high leverage. The return on equity has been negative due to net losses, affecting overall profitability metrics.55
Neutral
Cash Flow
Operating cash flow remains positive, showing the company's ability to generate cash from operations. However, the free cash flow has decreased, reflecting increased capital expenditure needs. The operating cash flow to net income ratio is strong due to the negative net income, suggesting cash flow stability despite accounting losses.60
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 824.16M | 916.96M | 1.20B | 1.11B | 1.11B | Gross Profit |
| 537.24M | 578.25M | 780.38M | 705.34M | 742.74M | EBIT |
| -33.30M | -200.02M | 261.60M | 190.01M | 152.01M | EBITDA |
| 33.56M | -135.56M | 247.77M | 306.16M | 256.30M | Net Income Common Stockholders |
| -74.22M | -259.30M | 54.35M | 101.58M | 149.22M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 16.31M | 18.22M | 16.03M | 11.26M | 2.41M | Total Assets |
| 712.16M | 783.17M | 1.18B | 1.30B | 1.21B | Total Debt |
| 13.13M | 348.90M | 469.81M | 562.48M | 583.20M | Net Debt |
| -3.19M | 330.68M | 453.78M | 551.21M | 580.79M | Total Liabilities |
| 515.25M | 630.47M | 795.61M | 985.79M | 1.02B | Stockholders Equity |
| 196.92M | 152.70M | 382.27M | 314.71M | 196.78M |
| Cash Flow | Free Cash Flow | |||
| 89.78M | 114.83M | 119.34M | 143.72M | 205.01M | Operating Cash Flow |
| 89.78M | 148.23M | 148.57M | 170.57M | 232.77M | Investing Cash Flow |
| -110.42M | -42.52M | -52.03M | -196.57M | -26.21M | Financing Cash Flow |
| 19.22M | -103.49M | -91.10M | 39.09M | -206.07M |
Thryv Holdings Technical Analysis
Negative
12.05
Price Trends
16.73
Negative
15.89
Negative
16.74
Negative
Market Momentum
-0.98
Positive
23.89
Positive
7.60
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For THRY, the sentiment is Negative. The current price of 12.05 is below the 20-day moving average (MA) of 14.72, below the 50-day MA of 16.73, and below the 200-day MA of 16.74, indicating a bearish trend. The MACD of -0.98 indicates Positive momentum. The RSI at 23.89 is Positive, neither overbought nor oversold. The STOCH value of 7.60 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for THRY.
Thryv Holdings Risk Analysis
Thryv Holdings disclosed 74 risk factors in its most recent earnings report. Thryv Holdings reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Thryv Holdings Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $167.33B | 55.93 | 17.43% | 0.65% | 13.73% | 9.93% | |
75 Outperform | $156.52B | 24.19 | 47.28% | ― | 10.65% | 44.84% | |
75 Outperform | $60.74B | 116.77 | 6.15% | ― | 16.94% | -62.24% | |
75 Outperform | $245.28B | 40.12 | 10.26% | 0.63% | 8.72% | 51.47% | |
67 Neutral | $27.53B | 6,151.40 | 0.29% | ― | 21.07% | ― | |
59 Neutral | $27.83B | 1.88 | -18.16% | 4.00% | 2.13% | -44.45% | |
52 Neutral | $522.62M | ― | -42.46% | ― | -10.12% | 72.31% |
* Communication Services Sector Average
Performance Comparison
THRY
Thryv Holdings
12.05
-9.80
-44.85%
ADBE
Adobe
367.25
-117.87
-24.30%
INTU
Intuit
598.53
-33.33
-5.27%
CRM
Salesforce
255.23
-45.39
-15.10%
WDAY
Workday
228.33
-39.99
-14.90%
HUBS
HubSpot
527.79
-142.21
-21.23%
Thryv Holdings Earnings Call Summary
Earnings Call Date: Feb 27, 2025 | % Change Since: -35.25% | Next Earnings Date: May 1, 2025
Earnings Call Sentiment Positive
The earnings call presented a strong performance in the SaaS segment with significant revenue and subscriber growth, enhanced margins, and successful integration of the Keap acquisition. However, the decline in marketing services and anticipated temporary increase in leverage highlight ongoing challenges. Despite these challenges, the positive momentum in the SaaS business and strategic focus on growth suggest an overall optimistic outlook.Highlights
SaaS Revenue Growth
Total SaaS reported year-over-year revenue growth was 41% for the quarter, with Thryv SaaS revenue growth at 23% when normalized for the Keap acquisition.
Subscriber Growth
SaaS subscribers grew 50% year-over-year to 99,000. Including Keap, the subscriber base is now 114,000.
Adjusted Gross Margin Improvement
SaaS adjusted gross margin increased to 76% for the fourth quarter, showing significant growth from the previous year.
SaaS EBITDA Performance
Quarterly SaaS EBITDA was $17 million, beating guidance by over $5 million.
Keap Acquisition Synergies
$10 million of EBITDA synergies have been realized following the acquisition of Keap.
Net Debt Reduction
Net debt position decreased by $61 million year-over-year, with a leverage ratio of 1.63 times net debt to EBITDA.
Rule of 40 Achievement
SaaS business achieved Rule of 40 for the second consecutive quarter.
G2 Award
Thryv received an award for best software by G2, validating the quality and ease of use of its software.
Lowlights
Marketing Services Revenue Decline
Fourth quarter marketing services billings were $92 million, reflecting a 40% year-over-year decline as part of the strategic direction to exit marketing services by 2028.
Legacy and Operational Costs
Variance in reporting Marketing Services adjusted EBITDA to guidance was primarily due to legacy and operational costs.
Temporary Increase in Leverage
Net leverage is expected to temporarily increase in the first two quarters of 2025 due to prepayment of vendor contracts and other operational costs.
Company Guidance
During the Thryv Fourth Quarter and Full Year 2024 Earnings Call, guidance for 2025 included projections for the SaaS and Marketing Services segments. Thryv expects total SaaS revenue for 2025 to be between $464.5 million and $474 million, reflecting Thryv SaaS revenue growth of 35% to 38%. The Keap acquisition is anticipated to contribute $75 million to $78 million to the full year's revenue. SaaS adjusted EBITDA is projected to range from $69.5 million to $71 million, implying a margin of 15%. For Marketing Services, full-year revenue guidance is set between $310 million and $314 million, with adjusted EBITDA expected to be between $77.5 million and $78.5 million. The company also plans to decommission legacy systems through 2025, with an eye on exiting the marketing services business by 2028. This strategic transition aims to improve liquidity and support Thryv's focus on a fully SaaS-based model while maintaining financial discipline through continued debt prepayment.Thryv Holdings Corporate Events
Business Operations and StrategyFinancial Disclosures
Thryv Holdings Reports Strong Q4 2024 SaaS Growth
Positive
Feb 27, 2025
In the fourth quarter of 2024, Thryv Holdings reported a significant increase in Total SaaS revenue by 41% year-over-year, marking a pivotal shift as SaaS now constitutes the majority of its revenue. The integration of Keap, a marketing automation company for SMBs, contributed to a 73% increase in total SaaS subscribers. Despite a 21% decline in consolidated total revenue, Thryv achieved a consolidated net income of $7.9 million, reversing a loss from the previous year. The company anticipates continued growth and profitability in 2025, driven by its expanded SaaS offerings and operational efficiencies.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.