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Thryv Holdings, Inc. (THRY)
:THRY
US Market

Thryv Holdings (THRY) AI Stock Analysis

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Thryv Holdings

(NASDAQ:THRY)

Rating:55Neutral
Price Target:
$14.00
▲(1.89%Upside)
Thryv Holdings has shown promising growth in its SaaS business, positively impacting its earnings call score. However, significant financial challenges due to declining revenues and profitability issues result in a moderate overall score. Technical indicators suggest a neutral to slightly negative outlook. The negative P/E ratio and lack of dividend yield further weigh down the valuation score.
Positive Factors
Cross-Selling Opportunities
Thryv’s platform expansion over the past several years has created a significant opportunity to cross-sell and grow ARPU with existing customers, which should be the primary driver of growth this year.
SaaS Growth
The company's software business has been executing well and grew 24% organically this quarter.
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
Print Directory Business
The updated 2026 estimates reflect a light year for print directories due to the longer circulation time, leading to a significant decline in revenue.
Revenue Guidance
Shares are likely reacting to the lowered full-year software revenue guidance (cut by $3.5 million, or less than 1%), which management cut out of an abundance of caution.
Small Business Exposure
Primary risks include exposure to small businesses, competition, debt paydown, sales execution, and the pace of decline in the marketing services.

Thryv Holdings (THRY) vs. SPDR S&P 500 ETF (SPY)

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 Earnings Call Summary

Earnings Call Date:May 01, 2025
(Q1-2025)
|
% Change Since: 0.29%|
Next Earnings Date:Jul 31, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong revenue growth, successful SaaS transition, and positive customer engagement, particularly with the Keap acquisition. However, there were notable challenges in the Marketing Services segment and an increased cautious financial outlook due to macroeconomic uncertainties.
Q1-2025 Updates
Positive Updates
Significant Revenue Growth
Thryv reported a 50% year-over-year revenue growth in Q1 2025. When normalized for the Keap acquisition, this growth was 24%.
SaaS Transformation Milestone
SaaS revenue accounted for 61% of total revenue, marking a significant transition towards a SaaS business model.
Subscriber and ARPU Growth
Subscriber growth was 37%, bringing the total to 96,000, or 111,000 when including Keap subscribers. ARPU increased to $335, and retention rates are solid, with a net revenue retention rate of 103%.
Successful Keap Acquisition
Keap contributed $18.9 million in Q1 revenue, and the acquisition is progressing well, with partners showing interest in the full Thryv product catalog.
Improved Adjusted EBITDA
Total SaaS adjusted EBITDA increased to $10.8 million, with an adjusted EBITDA margin of 10%.
Negative Updates
Decline in Marketing Services
Marketing Services revenue was $70.2 million, with billings reflecting a 42% year-over-year decline as the company transitions to SaaS.
Increased Net Debt
Net debt was reported at $298 million, with leverage ratio at 2.2 times net debt to EBITDA, due to planned upfront payments and other factors.
Cautious Outlook for 2025
The company adjusted its guidance for the year, citing economic uncertainty and potential macroeconomic challenges.
Company Guidance
During Thryv's first quarter 2025 earnings call, the company reported a strong performance with a 50% year-over-year revenue growth and a 24% growth when normalized for the Keap acquisition. SaaS revenue now constitutes 61% of Thryv's total revenue, marking a significant shift towards a software-as-a-service (SaaS) business model. The SaaS EBITDA margin expanded to 10%, and the average revenue per user (ARPU) increased to $335 per month. The company achieved a net revenue retention rate of 103%, reflecting solid customer engagement and retention. Thryv's subscriber base grew by 37% year-over-year, reaching a total of 111,000 subscribers when including Keap. 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 expects SaaS adjusted EBITDA for the year to be between $67 million and $71 million, implying a 15% adjusted EBITDA margin.

Thryv Holdings Financial Statement Overview

Summary
Thryv Holdings faces challenges with declining revenues and consistent losses impacting profitability. The balance sheet shows moderate risk with manageable debt levels, but the reliance on liabilities and declining equity are concerning. Cash flow generation remains strong, providing some operational stability, but revenue and margin improvements are needed for long-term financial health.
Income Statement
45
Neutral
Thryv Holdings has seen a significant decline in revenue over recent years, with a negative trend in revenue growth. The gross profit margin has been relatively stable, but the company struggles with negative EBIT and EBITDA margins, indicating operational inefficiencies. The consistent net losses further highlight profitability issues, reflecting challenges in cost management and revenue generation.
Balance Sheet
55
Neutral
The company's balance sheet shows a moderate debt-to-equity ratio, suggesting a balanced approach to leveraging. However, the declining stockholders' equity and total assets over the years raise concerns about asset utilization and shareholder value. The equity ratio has decreased, indicating a reliance on liabilities for funding, which may pose risks if revenue does not stabilize.
Cash Flow
60
Neutral
The cash flow statement reveals a stable operating cash flow, though free cash flow has fluctuated. The operating cash flow to net income ratio is strong, indicating good cash flow generation despite net losses. However, the free cash flow growth rate is inconsistent, which could affect future investment and debt servicing capabilities.
Breakdown
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
771.90M824.16M916.96M1.20B1.11B1.11B
Gross Profit
502.88M537.24M578.25M780.38M705.34M742.74M
EBIT
-59.91M-33.30M-200.02M261.60M190.01M152.01M
EBITDA
-11.21M33.56M-135.56M247.77M306.16M256.30M
Net Income Common Stockholders
-103.01M-74.22M-259.30M54.35M101.58M149.22M
Balance SheetCash, Cash Equivalents and Short-Term Investments
10.99M16.31M18.22M16.03M11.26M2.41M
Total Assets
703.73M712.16M783.17M1.18B1.30B1.21B
Total Debt
298.99M284.34M348.90M469.81M562.48M583.20M
Net Debt
287.99M268.03M330.68M453.78M551.21M580.79M
Total Liabilities
510.50M515.25M630.47M795.61M985.79M1.02B
Stockholders Equity
193.23M196.92M152.70M382.27M314.71M196.78M
Cash FlowFree Cash Flow
65.25M56.25M114.83M119.34M143.72M205.01M
Operating Cash Flow
73.86M89.78M148.23M148.57M170.57M232.77M
Investing Cash Flow
-110.37M-110.42M-42.52M-52.03M-196.57M-26.21M
Financing Cash Flow
33.05M19.22M-103.49M-91.10M39.09M-206.07M

Thryv Holdings Technical Analysis

Technical Analysis Sentiment
Positive
Last Price13.74
Price Trends
50DMA
12.99
Positive
100DMA
15.01
Negative
200DMA
15.65
Negative
Market Momentum
MACD
0.02
Positive
RSI
52.39
Neutral
STOCH
57.98
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For THRY, the sentiment is Positive. The current price of 13.74 is below the 20-day moving average (MA) of 13.75, above the 50-day MA of 12.99, and below the 200-day MA of 15.65, indicating a neutral trend. The MACD of 0.02 indicates Positive momentum. The RSI at 52.39 is Neutral, neither overbought nor oversold. The STOCH value of 57.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
$917.29M25.1932.17%113.43%
68
Neutral
$791.30M15.945.05%-16.79%
63
Neutral
$621.17M16.237.07%6.98%10.30%-57.87%
61
Neutral
$14.60B5.88-4.32%3.68%2.75%-30.55%
55
Neutral
$594.84M-51.21%-14.71%66.24%
52
Neutral
$49.05M-36.00%22.98%69.10%
51
Neutral
$619.79M-18.77%12.01%35.71%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
THRY
Thryv Holdings
13.74
-6.01
-30.43%
ANGI
Angi
16.58
-4.12
-19.90%
SSTK
Shutterstock
17.76
-18.90
-51.55%
EVER
EverQuote
25.87
4.50
21.06%
KIND
Nextdoor Holdings
1.64
-0.82
-33.33%
PODC
Courtside Group Inc
1.94
0.04
2.11%

Thryv Holdings Corporate Events

Business Operations and StrategyFinancial Disclosures
Thryv Holdings Reports Strong Q1 2025 SaaS Growth
Positive
May 1, 2025

In the first quarter of 2025, Thryv Holdings reported a 50% year-over-year increase in SaaS revenue, which now accounts for over 60% of its total revenue. The company exceeded its guidance for the quarter, highlighting its strategic transformation into a premier SMB software business. Despite a consolidated net loss of $9.6 million, Thryv achieved a record seasoned net revenue retention of 103%, driven by upselling and cross-selling efforts. The company’s focus on expanding its product-led strategy and entering new verticals is expected to foster continued growth and profitability.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.