Thryv Holdings Reports 29% SaaS Revenue Growth Amid Strategic Transition and Client Expansion

Thryv Holdings Strengthens SaaS Portfolio Amid Strategic Transition

Thryv Holdings, Inc. reports impressive third-quarter results for 2024, showcasing a 29% year-over-year increase in Software as a Service (SaaS) revenue, equating to $87.1 million. The surge in revenue is bolstered by a remarkable 45% growth in SaaS clients, which now totals 96,000. This expansion highlights Thryv's effective strategy of migrating its marketing service clients to its robust SaaS platform. CEO Joe Walsh emphasizes the significance of achieving the 'Rule of 40,' a benchmark that indicates the company's solid financial health and operational efficiency, further reinforcing confidence in its business model.

In addition to the growth in clients and revenue, Thryv's net dollar retention (NDR) rate improves to 101%, reflecting the effectiveness of its land-and-expand strategy. This metric indicates that existing customers are not only staying but are also increasing their investment in Thryv's services. The company also raises its full-year SaaS guidance, signaling optimism about continued growth in this segment. The acquisition of Infusion Software, Inc. (Keap) plays a crucial role in enhancing Thryv's suite of marketing and sales solutions, thereby providing more comprehensive services to its expanding client base. With over 100,000 SaaS clients, this strategic move aims to further solidify Thryv's market position and enhance customer satisfaction.

Despite the positive SaaS performance, Thryv faces challenges in its consolidated financials, reporting a net loss of $96.1 million, primarily due to a non-cash goodwill impairment charge of $83.1 million. Total consolidated revenue declines 2% year-over-year to $179.9 million, with a 20% drop in Marketing Services revenue. Nonetheless, the company achieves an Adjusted EBITDA of $19.6 million, translating to a margin of 10.9%. Thryv demonstrates resilience as it navigates these challenges while maintaining a strong focus on SaaS growth and client retention.

Thryv's third quarter underscores its commitment to innovation and customer-centric solutions in the small business software sector. The company remains dedicated to enhancing its product offerings and expanding its client base, positioning itself for sustained growth despite external pressures. As Thryv continues to evolve, its strategic initiatives indicate a promising trajectory in the competitive landscape of small business technology solutions.

In conclusion, Thryv Holdings illustrates a robust performance in its SaaS segment, achieving significant client growth and revenue increase while adapting to challenges in other areas. The successful acquisition of Keap further enhances its service offerings, indicating a proactive approach to meeting customer needs in an evolving market.