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TH

Thryv Holdings, Inc. (THRY)·Q4 2024 Earnings Summary

Executive Summary

  • Q4 2024 accelerated the SaaS transition: Total SaaS revenue rose 41% year-over-year to $104.3M, Thryv-only SaaS grew 23%, and SaaS adjusted gross margin reached 75.9% while consolidated adjusted EBITDA was $29.4M . Consolidated revenue declined 21% YoY to $186.6M as Marketing Services fell 49% due to print timing and planned client conversions .
  • Management exceeded SaaS guidance and highlighted early Keap integration benefits, including $10M of identified EBITDA synergies and Keap Q4 revenue above expectations ($13.4M vs. $11–$12M guided in Q3) .
  • 2025 outlook reiterated: Q1 2025 SaaS revenue $107.5–$110.0M and SaaS adjusted EBITDA $9.0–$9.5M; FY 2025 SaaS revenue $464.5–$474.0M and SaaS adjusted EBITDA $69.5–$71.0M; Marketing Services revenue $310.0–$314.0M and adjusted EBITDA $77.5–$78.5M .
  • Stock-relevant narrative: SaaS now drives a majority of revenue, Rule of 40 achieved for the second consecutive quarter, and clear milestones toward SaaS becoming the majority of consolidated EBITDA in 2026 and return to consolidated revenue growth in 2027, anchoring a transition story with improving margins and deleveraging plans .

What Went Well and What Went Wrong

  • What Went Well

    • SaaS momentum: “We delivered a strong fourth quarter with a robust increase in revenue and record SaaS margins... SaaS now drives the majority of our revenue” (CEO) .
    • Execution beat: “In the fourth quarter, we exceeded our SaaS guidance... and are reiterating our full-year 2025 outlook from our Analyst Day” (CFO) .
    • Integration and product progress: Early Keap synergies (~$10M EBITDA), AI review response added, social media enhancements, and Reporting Center launch to support upmarket push .

  • What Went Wrong

    • Marketing Services declined 49% YoY in Q4 and billings fell 40% YoY, reflecting print-cycle timing and accelerated client migration; segment adjusted EBITDA missed the Q3 guide (actual $12.1M vs. $16–$19M guided) due to legacy and operational costs slated for streamlining .
    • Consolidated revenue fell 21% YoY, and impairment charges earlier in the year weigh on full-year GAAP results; management reiterates exit from Marketing Services by 2028 .
    • Macro caution: Management cited small-business concerns about tariffs/inflation and normal holiday-season softness impacting net customer adds, though they stressed execution over macro as the driver .

Financial Results

MetricQ2 2024Q3 2024Q4 2024
Consolidated Revenue ($USD Millions)$224.1 $179.9 $186.6
Diluted EPS ($USD)$0.15 $(2.65) $0.19
Consolidated Adjusted EBITDA ($USD Millions)$59.3 $19.6 $29.4
SaaS Revenue ($USD Millions)$77.8 $87.1 $104.3
SaaS Adjusted EBITDA ($USD Millions)$10.2 $10.3 $17.3
Marketing Services Revenue ($USD Millions)$146.3 $92.8 $82.3
Marketing Services Adjusted EBITDA ($USD Millions)$49.1 $9.3 $12.1
SaaS Adjusted Gross Margin (%)69.7% 72.2% 75.9%
Consolidated Adjusted Gross Margin (%)69.0% 65.0% 68.5%

Segment breakdown

Segment MetricQ2 2024Q3 2024Q4 2024
SaaS Revenue ($USD Millions)$77.8 $87.1 $104.3
SaaS Adjusted EBITDA ($USD Millions)$10.2 $10.3 $17.3
Marketing Services Revenue ($USD Millions)$146.3 $92.8 $82.3
Marketing Services Adjusted EBITDA ($USD Millions)$49.1 $9.3 $12.1

KPIs

KPIQ2 2024Q3 2024Q4 2024
Total SaaS Clients (000s)85 96 114
Thryv SaaS Clients (ex-Keap, 000s)85 96 99
Seasoned Net Dollar Revenue Retention (%)94% 101% 98% (ex-Keap)
SaaS ARPU ($/month)$333 $307 $324 (Total); $313 Thryv / $424 Keap
ThryvPay Total Payment Volume ($USD Millions)$80 $82 $79
Multicenter Penetration (% of clients with ≥2 paid centers)10%+ 12% 12%

Versus estimates: S&P Global consensus comparisons for Q4 2024 could not be retrieved today due to data access limits; therefore, estimate comparisons are unavailable at this time. Management-reported guidance comparisons are shown below. (S&P Global consensus unavailable)

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
SaaS Revenue ($USD Millions)Q4 2024$90.0–$92.0 Actual: $104.3 Raised vs guidance; beat
Keap SaaS Revenue ($USD Millions)Q4 2024$11.0–$12.0 (not in SaaS guide) Actual: $13.4 Beat
Marketing Services Adjusted EBITDA ($USD Millions)Q4 2024$16.0–$19.0 Actual: $12.1 Lower vs guidance
SaaS Revenue ($USD Millions)Q1 2025N/A (no prior quarterly guide)$107.5–$110.0 New
SaaS Adjusted EBITDA ($USD Millions)Q1 2025N/A$9.0–$9.5 New
SaaS Revenue ($USD Millions)FY 2025Analyst Day: Organic +18–20%, Keap $75–$78 $464.5–$474.0; Keap $75–$78 Maintained (explicit range)
SaaS Adjusted EBITDA ($USD Millions)FY 2025Mid-teens margin $69.5–$71.0 (~15% margin) Maintained (range provided)
Marketing Services Revenue ($USD Millions)FY 2025Decline ~35% $310.0–$314.0 Maintained (range provided)
Marketing Services Adjusted EBITDA ($USD Millions)FY 2025Mid-twenties margin $77.5–$78.5 Maintained (range provided)

Earnings Call Themes & Trends

TopicPrevious Mentions (Q2 & Q3)Current Period (Q4 2024)Trend
Rule of 40Achieved in Q3 via 29% SaaS growth and rising margins ; Q2 guided to >70% SaaS adj GM exit Achieved again; SaaS EBITDA $17.3M, adj GM ~76% Strengthening
AI/TechnologyQ2: AI-enabled support, social captions; PLG/Command Center discussed AI review response added; Reporting Center launched; Keap automation builder improved Expanding features
Product/cross-sellQ2–Q3: Multicenter growth (10%→12%); upsell paths; Marketing Center momentum Early Keap cross-sell underway; ~$5M cross-sell expected in 2025; vertical automations planned Early-stage but positive
Go-to-marketQ3: Keap partner channel + 700-person direct sales 1,000+ partners via Keap; broader international reach; unified platform vision Diversifying channels
Macro/tariffsQ2: cautious SMB spend, promotional pricing; ARPU noisy Post-election sentiment mixed; tariff/inflation concerns; holiday seasonality Neutral-to-cautious
Marketing Services exitQ3: impairment, print cycle shifts, accelerated cannibalization Exiting by 2028; cash to 2030; quarterly billings down 40% YoY Ongoing transition
Leverage/deleveragingQ2: refi; covenant headroom Net debt $279M; 1.63x net debt/EBITDA; proactive prepayments; temporary early-2025 leverage rise, deleveraging in H2 2025 Improving balance sheet

Management Commentary

  • “We delivered a strong fourth quarter with a robust increase in revenue and record SaaS margins… SaaS now drives the majority of our revenue” — Joe Walsh, CEO .
  • “We exceeded our SaaS guidance, continued to drive operating efficiencies, and are reiterating our full-year 2025 outlook from our Analyst Day” — Paul Rouse, CFO .
  • “This Keap acquisition… we’ve already crystallized $10 million of EBITDA synergies” — Joe Walsh .
  • “Our quarterly SaaS EBITDA of $17 million beat guidance by over $5 million… Rule of 40 milestone for the second quarter in a row” — Joe Walsh .
  • “Our leverage ratio was 1.63x net debt to EBITDA… we intend to continue prepaying debt this year” — Paul Rouse .

Q&A Highlights

  • Keap cross-sell: Two-way cross-sell beginning; ~$5M revenue cross-sell expected in 2025, back-weighted as systems and training ramp .
  • Upmarket motion: Reporting Center addresses larger SMBs’ need for powerful reporting; target moving from micro to ~10–20-employee cohorts .
  • Seasonality/macro: Holiday softness is typical; SMBs show caution amid tariff/inflation concerns, but execution is primary driver .
  • Keap outperformance and 2025 contribution: Q4 Keap revenue beat due to conservative initial estimate; FY 2025 Keap guide maintained at $75–$78M .
  • ARPU trajectory: Core Thryv ARPU sequentially improved; focus in 2025 on upselling installed base and increasing ARPU .
  • Product roadmap: Workforce Center slated for 2025; emphasis on integration over launching numerous new centers; pursue add-ons and vertical automations .

Estimates Context

  • Wall Street consensus (S&P Global) for Q4 2024 revenue and EPS was unavailable today due to data access limits; we cannot provide comparisons at this time (S&P Global consensus unavailable).
  • Internal guidance comparisons show SaaS revenue and Keap revenue beat Q4 guidance, while Marketing Services adjusted EBITDA missed; 2025 guidance was reiterated in explicit ranges .

Key Takeaways for Investors

  • SaaS majority reached with accelerating margins; recurring revenue scale plus Keap integration supports durable Rule of 40 performance .
  • Strong beat vs. SaaS guidance and Keap revenue underscores near-term execution; monitor cross-sell cadence and ARPU uplift across 2025 .
  • Marketing Services headwind is strategic: accelerated client conversion depresses MS revenues/EBITDA but improves consolidated margin mix; exit by 2028 remains intact .
  • 2025 guide provides visibility: SaaS $464.5–$474.0M and EBITDA $69.5–$71.0M; watch quarterly leverage dynamics (Q1–Q2 upward blip) and H2 deleveraging .
  • Product-led growth plus partner channel should broaden distribution and international reach; Reporting Center, AI features, and Workforce Center expand the value proposition .
  • Near-term trading: Narrative favors SaaS transition and margin expansion; diligence required on Marketing Services EBITDA variance and ARPU execution path .
  • Medium-term thesis: Majority of consolidated EBITDA from SaaS in 2026, return to consolidated top-line growth in 2027; improving mix, rising margins, and deleveraging underpin equity re-rating potential .