Total Revenue

~22% decline (from $233.6M to $181.4M)

Total Revenue declined significantly in Q1 2025 primarily due to a sharp drop in Marketing Services revenue, which was not fully offset by moderate growth in SaaS revenue. This reflects the continuing strategic shift from high‐margin marketing services to a leaner SaaS model. " " " "

U.S. Revenue

~6% decline quarter-over-quarter

U.S. revenue dropped from $155.7M in Q4 2024 to $146.1M in Q1 2025, reflecting continued domestic challenges as declining Marketing Services revenues weigh on the region despite efforts to stabilize overall performance. "

International Revenue

~14% increase (from $30.8M to $35.3M)

International revenue increased as the company tapped into organic growth and market penetration outside the U.S., counterbalancing domestic declines even though the overall revenue picture remains under pressure. "

Thryv SaaS

+6.7% increase (from $104.3M to $111.1M)

Thryv SaaS revenue grew modestly driven by ongoing client conversions and contributions from recent initiatives such as the Keap integration, highlighting the shift toward a higher-value, technology-driven business, though at a slower pace relative to prior strong performance. " " " "

Thryv Marketing Services

~15% decline (from $82.3M to $70.2M)

The segment experienced a steep decline as strategic initiatives accelerated the migration of clients from marketing services to SaaS, compounded by continued secular declines and heightened competitive pressures in both print and digital channels. " " " "

Net Income

Shift from +$8.42M to –$9.62M

Net Income turned negative in Q1 2025 largely because the sharp drop in Marketing Services revenue and increased associated costs and restructuring expenses outweighed the gains from SaaS revenue growth, reversing the prior period’s profitability. " "

Operating Income

From +$31.13M to –$3.03M

Operating Income deteriorated dramatically as fixed cost structures and higher expense ratios—amid a transition in revenue mix—failed to absorb declining margins in Marketing Services, leading to a swing from a healthy operating profit to an operating loss. " "

Diluted EPS

From $0.22–$0.28 to –($0.22)

The diluted EPS fell sharply into negative territory as overall profitability suffered from the combined impacts of revenue restructuring, increased costs, and lower margins, reflecting the challenges inherent in the ongoing business model transformation. " "

SaaS Revenue

Q2 2025

no prior guidance

$113 million to $115 million "

no prior guidance

SaaS Adjusted EBITDA

Q2 2025

no prior guidance

$18.5 million to $19.5 million "

no prior guidance

SaaS Revenue

FY 2025

$464.5 million to $474 million "

$460.5 million to $471 million "

lowered

SaaS Adjusted EBITDA

FY 2025

$69.5 million to $71 million "

$67 million to $71 million "

lowered

Marketing Services Adjusted EBITDA

FY 2025

$77.5 million to $78.5 million "

$77.5 million to $78.5 million "

no change

SaaS Transformation & Margin Expansion

Q2–Q4 2024 discussions emphasized robust migration to SaaS, strong YoY revenue growth (e.g. 41%–50% growth in SaaS subscribers), and significant improvements in gross and EBITDA margins " " "

Q1 2025 call highlighted that SaaS revenue now constitutes 61% of total revenue with a 50% YoY growth (24% normalized) and margin expansion (gross margin up to 73%, EBITDA margin at 10%) " " "

Consistent focus with improved performance metrics and deeper margin expansion in the advanced stages of transformation.

Cross-Selling and Expansion Strategy

Prior periods (Q2–Q4 2024) concentrated on building multiple centers, driving multicenter adoption (e.g. 12–16% using multiple centers), and initiating cross-sell opportunities including integration synergies with Keap " " "

Q1 2025 emphasized reorienting the sales organization toward upgrading legacy customers to SaaS products; 17.2% of subscribers are using multiple products, supporting lower churn and higher lifetime value "

Evolving from early-stage channel integration to a more refined and effective upsell strategy that deepens customer relationships.

Acquisition Integration and Channel Synergies

Q2–Q4 2024 discussions (mainly around the Keap acquisition) underscored operational integration, a unified platform approach, partner channel expansion, and synergy realization (around $10 million identified) " " " "

Q1 2025 focused on the smooth operational and cultural integration of the Keep acquisition, with synergies realized in EBITDA and plans to leverage partner channels for further cross-selling " "

Steady focus though naming/target acquisition may have shifted; integration remains a key pillar with continued emphasis on channel synergies.

Customer Acquisition and Subscriber Growth Dynamics

Across Q2–Q4 2024, Thryv stressed robust subscriber growth (up to 52% YoY increase), effective migration of marketing services clients, and strong conversion metrics, despite some seasonal softness " " " "

In Q1 2025, total SaaS subscribers reached 111,000 (including Keep) with strong YoY gains and an emphasis on cross-selling within the subscriber base " "

Consistent robust subscriber growth with a continued strategic shift toward leveraging and expanding existing customer relationships.

ARPU Trends and Upsell Opportunities

Q2–Q4 2024 saw ARPU pressures due to promotional pricing (e.g. ARPU around $307–$333) and initiatives to introduce upsell paths through starter products and growth packages, with guidance for long‐term improvement " " " "

Q1 2025 reported an ARPU increase to $335, with continued focus on upsell through multiple-product adoption and a net revenue retention rate of 103%, driving further revenue per account " " "

Recovering ARPU trends as initial discount effects wane and upsell opportunities mature, signaling a healthy shift toward higher average revenue per user.

Economic Uncertainty and External Headwinds

Q2 2024 noted cautious customer behavior and a strategic shift to lower-priced options amid a challenging macro environment; Q4 2024 mentioned tariffs and inflation worries, while Q3 had no explicit mention " " "

Q1 2025 acknowledged economic uncertainty with concerns over potential recession impacts, but underscored customer resilience in essential service sectors and a cautious upward guidance " "

Persistent external headwinds remain, though Q1 2025 reflects increased confidence in customer resilience despite continuing macroeconomic challenges.

Marketing Services Decline and Cannibalization

Q2–Q4 2024 consistently discussed declining marketing services revenue (28%–40% YoY declines) driven by strategic migration to SaaS, with planned exit by 2028 and associated operational cost reallocation " " " "

Q1 2025 reported a 42% YoY decline in Marketing Services revenue due to successful conversion of legacy customers to SaaS, aligning with the long-term exit strategy from Marketing Services by 2028 "

A deliberate and steady cannibalization of legacy services as part of a strategic transformation, reinforcing the shift toward a SaaS-centric business model.

New Product Innovation and AI Integration

Q2 2024 and Q4 2024 detailed efforts around new product launches (e.g. Reporting Center, Workforce Center, growth packages) and AI integrations (e.g. AI review response, social media automation) " " " " "

Q1 2025 did not specifically mention new product or AI initiatives; focus remained on scaling SaaS and integration of acquired entities " "

A notable reduction in explicit discussion, possibly indicating that product innovation has been integrated into broader SaaS growth narratives rather than spotlighted.

Command Center Product Performance

Q2 2024 provided early insights into the Command Center as a V1 product with iterative improvements planned, aiming to serve as a future wedge product for customer acquisition "

Q1 2025 did not reference the Command Center product, suggesting it is currently a lower priority or undergoing further development off-stage "

The absence of discussion in Q1 2025 indicates that the Command Center remains in development, with its performance and role yet to be prioritized in earnings conversations.

Financial Flexibility and Debt Obligations

Q2–Q4 2024 calls highlighted a focus on deleveraging, refinancing benefits, and managing net debt (with leverage ratios ranging from 1.63x to 1.66x), alongside strategic cash flow utilization for growth initiatives " " "

Q1 2025 reiterated a solid net debt position (e.g. $298 million, 2.2x leverage), with continued plans for debt prepayment and deleveraging as part of the strategic transition to SaaS " "

A consistent emphasis on maintaining robust financial discipline with targeted deleveraging and improved debt metrics, supporting strategic investments.