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01/10 16:36
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Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings call highlights strong SaaS revenue growth, significant subscriber increase, and improved EBITDA margins. Despite concerns about transitioning from Marketing Services and temporary cost headwinds, the optimistic guidance and successful Keap acquisition synergies support a positive outlook. The Q&A session reveals confidence in product offerings and customer retention, though management's vague responses on customer additions could temper enthusiasm. Overall, the financial performance and strategic direction suggest a positive stock price movement, especially in the absence of a market cap to gauge volatility.
SaaS reported revenue $111.1 million, 50% year-over-year increase; Keap contributed $18.9 million, excluding Keap, Thryv SaaS grew 24% year-over-year.
SaaS adjusted gross margin 73%, increased by 490 basis points year-over-year.
SaaS adjusted EBITDA $10.8 million, adjusted EBITDA margin of 10%, exceeding guidance.
Subscriber growth 111,000 total SaaS subscribers, including 15,000 Keap subscribers, reflecting a 59% year-over-year increase.
ARPU (Average Revenue Per User) $335, up from previous period; Thryv ARPU was $320, Keap ARPU was $428.
Seasoned net revenue retention 103%, highest reported, indicating strong customer value.
Marketing Services revenue $70.2 million, above guidance; adjusted EBITDA of $10.1 million, adjusted EBITDA margin of 14%.
Marketing Services billings $81.4 million, reflecting a 42% year-over-year decline due to transition to SaaS.
Consolidated adjusted gross margin 68%.
Consolidated adjusted EBITDA $20.9 million, representing an adjusted EBITDA margin of 12%.
Net debt position $298 million, leverage ratio of 2.2 times net debt to EBITDA, increased due to planned vendor payments and timing of corporate bonuses.
New Product Introduction: Introduced Keap Automation to deepen adoption and enhance customer engagement.
Product Expansion: Developed five robust centers and added more products to the market.
Market Expansion: Acquired Keap, contributing $18.9 million in Q1, and expanded partner channel through Partnerkon Conference.
Subscriber Growth: Total SaaS subscribers reached 111,000, including 15,000 from Keap, reflecting a 59% year-over-year increase.
Operational Efficiency: SaaS adjusted EBITDA margin improved to 10%, with a focus on increasing monthly recurring revenue.
Cost Management: Transitioning to a 24-month cycle for print publications to improve cost attribution and visibility.
Strategic Shift: Reoriented sales strategy to focus on growing monthly recurring revenue and deepening existing customer relationships.
Exit Strategy: Planning to exit the Marketing Services business by 2028, with cash flows extending into 2030.
Economic Factors: Concerns about potential recession impacting small businesses, although the company believes its customer base is resilient due to the non-discretionary nature of their services.
Competitive Pressures: The need to continue developing products and services to maintain momentum and respond to market demands.
Regulatory Issues: No specific regulatory issues were mentioned, but the company acknowledges the importance of compliance in their operations.
Supply Chain Challenges: No direct supply chain challenges were discussed, but the company is aware of potential impacts on operations.
Debt Management: Net debt position of $298 million with a leverage ratio of 2.2 times net debt to EBITDA, indicating a need for careful management of financial obligations.
Transition Risks: The planned exit from the Marketing Services business by 2028 may pose risks during the transition period, including potential impacts on cash flow.
Cost Management: Temporary headwinds of $2 million to $3 million tied to shared cost allocations, which are expected to normalize in the future.
SaaS Revenue Growth: Thryv reported a 50% year-over-year revenue growth for Q1 2025, with a normalized growth of 24% excluding the Keap acquisition.
Subscriber Growth: Thryv's subscriber base grew by 37%, reaching a total of 96,000, and including Keap subscribers, the total is 111,000.
ARPU Increase: Average Revenue Per User (ARPU) increased to $335 per month, with expectations for continued growth throughout the year.
Net Revenue Retention: Seasoned net revenue retention reached 103%, indicating strong customer loyalty and satisfaction.
Marketing Services Transition: Thryv is strategically transitioning out of the Marketing Services business by 2028, with cash flows extending into 2030.
Sales Strategy: The sales organization has been reoriented to focus on growing monthly recurring revenue (MRR) through existing customer relationships.
Q2 2025 SaaS Revenue Guidance: Expected SaaS revenue in Q2 2025 is projected to be between $113 million to $115 million.
Full Year 2025 SaaS Revenue Guidance: Full year SaaS revenue is expected to be in the range of $460.5 million to $471 million.
Q2 2025 SaaS Adjusted EBITDA Guidance: Expected SaaS adjusted EBITDA for Q2 2025 is projected to be between $18.5 million to $19.5 million.
Full Year 2025 SaaS Adjusted EBITDA Guidance: Full year SaaS adjusted EBITDA is expected to be in the range of $67 million to $71 million, implying a margin of 15%.
Marketing Services Adjusted EBITDA Guidance: Marketing Services adjusted EBITDA guidance for the full year is confirmed to be between $77.5 million to $78.5 million.
Shareholder Return Plan: Thryv Holdings has not announced any share buyback program or dividend program during this earnings call.
Despite strong financial metrics and optimistic guidance, concerns about execution issues in the SaaS segment and unclear management responses temper enthusiasm. The company's strategic shift and ARPU growth are positive, but missed guidance and a lack of specific details on future initiatives create uncertainty. Without market cap data, the prediction remains neutral.
The earnings call highlights strong SaaS revenue growth, subscriber increase, and ARPU improvement, indicating a healthy business trajectory. Although there is a conservative guidance approach due to potential economic challenges, the company shows optimism in business momentum. The reduction in net debt and leverage ratio, alongside exceeding cost synergies from acquisitions, further support financial health. Despite some strategic shifts causing short-term subscriber declines, the focus on cross-selling and upselling is expected to balance growth. The positive sentiment from analysts and the strategic plans for future investments contribute to a positive outlook.
The earnings call highlights strong SaaS revenue growth, significant subscriber increase, and improved EBITDA margins. Despite concerns about transitioning from Marketing Services and temporary cost headwinds, the optimistic guidance and successful Keap acquisition synergies support a positive outlook. The Q&A session reveals confidence in product offerings and customer retention, though management's vague responses on customer additions could temper enthusiasm. Overall, the financial performance and strategic direction suggest a positive stock price movement, especially in the absence of a market cap to gauge volatility.
The earnings call highlights strong financial performance with a 41% increase in SaaS revenue, exceeding guidance. The Keap acquisition contributes positively, and debt management is proactive. Despite competitive pressures and economic risks, the strategic focus on SaaS and shareholder return plans are promising. The Q&A reveals positive cross-sell feedback and plans for growth, though some guidance is vague. Overall, the combination of strong results and strategic initiatives suggests a positive stock price movement.
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