Thryv Holdings (THRY) AI Stock Analysis

• Market Cap: $565.88M
• Dividend Yield: N/A
• Average Volume (3M): 546.68K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.35
• Revenue Growth: -10.12%
• EPS Growth: 72.31%
• Country: US
• Employees: 2,986
• Sector: Communication Services
• Sector Strength: 80
• Industry: Internet Content & Information
• EPS (TTM): -2.09
• Shares Outstanding: 43,731,033
• 10 Day Avg. Volume: 583,834
• 30 Day Avg. Volume: 546,682
• PEG Ratio: N/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 Ratio: 6.30
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $22.00
• Price Target Upside: 80.77% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

Thryv Holdings' overall stock score reflects a mix of challenges and opportunities. Financial performance is hindered by declining revenues and negative profitability, but improvements in leverage and cash flow generation offer some resilience. Technical analysis shows bearish trends, and valuation is weak due to negative earnings. However, the earnings call provides optimism with strong SaaS growth and strategic focus. The company needs to address profitability and leverage issues to enhance its stock performance.

Positive Factors

Financial Performance

Thryv's expected cumulative free cash flow generation provides a significant cushion to meet its net debt obligations.

Growth Strategy

2025 growth is expected to be driven by cross-sell and customer expansion.

Stock Valuation

Shares are trading at just 9 times SaaS EBITDA, suggesting the stock is significantly undervalued with potential upside to $50-plus a share.

Negative Factors

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.

Customer Retention

Management remains committed in exiting the legacy service by 2028.

Market Sentiment

Thryv continued to drive customer additions of 3k with 15k incremental customers coming from Keap.

Thryv Holdings Business Overview & Revenue Model

Company Description

Thryv Holdings, Inc. (THRY) is a publicly traded company that provides software and marketing solutions to small and medium-sized businesses (SMBs). The company operates in the technology sector, offering a comprehensive platform that helps businesses manage their customer relationships and automate their operations. Thryv's core products and services include customer relationship management (CRM) tools, marketing automation, online presence solutions, and business productivity software.

How the Company Makes Money

Thryv 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.

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.

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.

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

• Technical Analysis Sentiment: Neutral
• Last Price: 12.17
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For THRY, the sentiment is Neutral. The current price of 12.17 is above the 20-day moving average (MA) of 12.02, below the 50-day MA of 14.96, and below the 200-day MA of 16.31, indicating a neutral trend. The MACD of -0.74 indicates Negative momentum. The RSI at 50.54 is Neutral, neither overbought nor oversold. The STOCH value of 85.05 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for THRY.

Thryv Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EVER	81 Outperform	$829.15M	26.66	29.75%	―	73.72%	―
SSTK	70 Outperform	$569.92M	16.21	6.87%	7.53%	6.94%	-66.92%
ANGI	59 Neutral	$608.86M	17.65	3.42%	―	-17.69%	―
Sector *	58 Neutral	$13.61B	6.75	-2.45%	3.85%	2.33%	-35.55%
PODC	56 Neutral	$45.06M	―	-36.00%	―	22.98%	69.10%
THRY	53 Neutral	$565.88M	―	-42.46%	―	-10.12%	72.31%
KIND	46 Neutral	$571.73M	―	-19.38%	―	13.27%	34.93%

Thryv Holdings Corporate Events

Thryv Holdings Reports Strong Q4 2024 SaaS Growth

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.