Core Insights - Thryv Holdings (NASDAQ: THRY) has shown strong business performance with an organic growth rate of 20% and improving margins in its SaaS business [1] Company Performance - The company is experiencing solid fundamentals and a positive outlook for its business [1] Investment Perspective - The analysis highlights the potential for asymmetric investment opportunities in undercovered companies, particularly in technology, software, electronics, and energy transition sectors [1]

Thryv Holdings, Inc. (NASDAQ:THRY) Q4 2024 Earnings Conference Call February 27, 2025 8:30 PM ET Company Participants Cameron Lessard - Assistant VP, IR & Treasury Joe Walsh - Chairman and CEO Paul Rouse - CFO Conference Call Participants Jason Kreyer - Craig-Hallum Scott Berg - Needham & Company Linda Lee - William Blair Daniel Moore - CJS Securities Zach Cummins - B. Riley Securities Operator Thank you for standing by. My name is Jeannie, and I will be your conference operator today. At this time, I would ...

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Thryv Holdings, Inc. (THRY) came out with quarterly earnings of $0.19 per share, beating the Zacks Consensus Estimate of a loss of $0.07 per share. This compares to earnings of $0.32 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 371.43%. A quarter ago, it was expected that this company would post a loss of $2.53 per share when it actually produced a loss of $2.65, delivering a surprise of -4.74%.Over the last four quarters, ...

Revenue Generation - Thryv's Marketing Services segment generated $480.7 million in revenue for the year ended December 31, 2024[17]. - Thryv's SaaS segment generated $343.5 million in revenue for the year ended December 31, 2024[22]. - 58.3% of the company's revenue in 2024 was derived from Marketing Services offerings, with a strategic decision to terminate these solutions by the end of 2028[77]. - The company generated a net loss of $74.2 million for the year ended December 31, 2024[89]. - Subscription renewals may decline, impacting future revenue and operating results, as clients can terminate agreements after the initial term[87]. Client Base and Transition - Approximately 300,000 SMB clients were served as of December 31, 2024, through Thryv SaaS and Thryv Marketing Services[15]. - The company converted approximately 46,000 clients from digital Marketing Services to the Thryv Platform in 2024[34]. - The churn rate for clients converted from digital Marketing Services was in line with the churn from other SaaS clients[35]. - The company plans to accelerate the conversion of Marketing Services clients to the Thryv Platform, but faces risks of losing clients if the transition is unsuccessful[78]. - The strategic decision to transition clients from digital Marketing Services to the Thryv Platform could lead to higher client churn and negatively impact key business metrics[115]. Business Model and Strategy - The company made a strategic decision to terminate its Marketing Services solutions by the end of 2028[17]. - The company plans to fully transition into a SaaS-driven business model by the end of 2028, exiting the Marketing Services business entirely[42]. - The company is focused on enhancing the Thryv Platform through continuous product and engineering improvements, which contribute to annual recurring revenue growth[45]. - The company has implemented a cost management strategy for its Marketing Services offerings to maximize profitability until the end of 2028[47]. - The company leverages one of the largest SMB-focused sales forces in the country to expand its SaaS solutions[46]. Acquisitions and Growth - Thryv's acquisition of Keap on October 31, 2024, enhances its sales and marketing automation capabilities[16]. - The recent acquisition of Keap in Q4 2024 is expected to drive international growth and provide cost synergies[49][50]. - The integration of the Keap business may face challenges, affecting anticipated benefits and requiring significant time and resources[194]. - Unanticipated obligations and liabilities from the Keap business could adversely affect financial condition and operations[197]. - The Keap Acquisition may not be accretive and could dilute earnings per share, negatively impacting stock market performance[203]. Financial Management and Risks - The company generated significant cash flow and aims to reduce debt while pursuing acquisitions to create value for stockholders[48]. - Outstanding indebtedness may limit operational flexibility and increase vulnerability to economic changes, impacting cash flow availability[206]. - The company may incur additional indebtedness or face restrictions on business opportunities due to existing debt agreements[211]. - The company's financial condition and results of operations could be materially adversely affected if it cannot generate sufficient cash to service its indebtedness[212]. - The risk of volatile credit markets could hinder the company's ability to secure necessary funding from lenders[214]. Market and Competitive Environment - Significant competition exists in the Marketing Services and SaaS markets, which may hinder the company's ability to attract and retain clients[71]. - The market for small business management solutions is evolving, and competitive dynamics may force the company to reduce prices for its Thryv Platform[86]. - Adverse economic conditions, such as financial recessions, could significantly weaken demand for marketing solutions, impacting the company's financial performance[132]. - Public health epidemics may lead to reduced spending by clients on marketing services, which could materially affect the company's financial results[134]. - The decline in print directory usage continues to negatively affect advertising sales, with expectations of continued decline in 2025 and beyond[90]. Compliance and Regulatory Risks - Compliance with evolving government regulations is a risk factor that could impact the company's operations and financial performance[67]. - The company is subject to various U.S. and international laws regarding privacy and data protection, and non-compliance could result in significant penalties and impact business operations[142]. - Future laws and regulations regarding data protection may limit the company's ability to collect and use information, potentially impairing revenue growth[145]. - The evolving regulatory environment for AI may increase compliance costs and impact the company's ability to operate effectively[97]. - The company faces risks related to compliance with non-U.S. laws, which may also affect domestic business practices[108]. Operational Challenges - The company has experienced growth in its SaaS segment, but must effectively manage this growth to maintain service quality and client retention[82]. - The company must continue to invest in infrastructure and support for its SaaS solutions to sustain growth and profitability[83]. - The complexity of the Thryv Platform may lead to defects or errors, which could harm reputation and market share, resulting in substantial correction costs[189]. - Data management risks include potential hardware failures or system errors that could lead to data loss or inaccuracies, impacting client trust[190]. - The company faces challenges in maintaining high-quality technical support services, which could adversely affect client relationships and revenue[185]. Human Capital and Workforce - The company has a workforce of 3,016 employees, with approximately 99% being full-time[55]. - The company is committed to diversity and inclusion, with initiatives such as the Diversity Council and various employee development programs[56]. - As of December 31, 2024, 217 employees, or 7% of the workforce, are represented by unions, which could lead to increased operating costs and disruptions if labor negotiations are unfavorable[139]. - The company does not maintain key man insurance for its executive officers, increasing the risk associated with the loss of key personnel[137]. - The company faces risks related to human capital, as the loss of key employees could have a material adverse effect on its operations and financial condition[137]. Cybersecurity and Data Privacy - The company is actively monitoring cybersecurity risks and implementing controls, but vulnerabilities may still exist[158]. - Security breaches could result in unauthorized access to client information, impacting financial reporting and business continuity[154]. - The company faces risks related to identity theft and misuse of personally identifiable information (PII), which could lead to legal liabilities[160]. - Generative AI technologies used by employees are subject to privacy laws, and non-compliance could result in additional costs and regulatory actions[157]. - The company may incur significant costs related to compliance with privacy laws and regulations, impacting overall financial performance[152].

Exhibit 99.1 Thryv Accelerates SaaS Revenue in Fourth Quarter 2024, Exceeds Fourth Quarter SaaS Guidance DALLAS, February 27, 2025 – Thryv Holdings, Inc. (NASDAQ:THRY) ("Thryv" or the "Company"), the provider of Thryv®, the leading small business marketing and sales software platform, reported an increase in Total SaaS revenue of 41% year-over-year in the fourth quarter of 2024. "We delivered a strong fourth quarter with a robust increase in revenue and record SaaS margins, reaching a pivotal inflection poi ...

Group 1 - Thryv Holdings is undergoing a significant transformation from its declining phone book publishing business to a new business model [1] - The transformation process has been ongoing for several years, indicating a prolonged effort to pivot the company's focus [1]

Financial Data and Key Metrics Changes - SaaS revenue for Q3 2024 was $87.1 million, a 29% year-over-year increase and a 12% sequential increase, exceeding guidance [9][10] - SaaS adjusted gross margin increased by 560 basis points year-over-year and 250 basis points quarter-over-quarter to 72.2% [10] - Consolidated adjusted EBITDA for Q3 was $19.6 million, representing an adjusted EBITDA margin of 11% [14] - Net debt position was $307 million with a leverage ratio of 1.66x net debt to EBITDA, well below the covenant of 3x [15] Business Line Data and Key Metrics Changes - SaaS subscriber growth reached 96,000, up from 70,000 in the prior quarter, reflecting a 45% year-over-year increase [11] - Marketing Services revenue for Q3 was $92.8 million, with a decline in billings of 35% year-over-year due to the transition of clients to the SaaS platform [13][14] - Marketing Services adjusted EBITDA margin was 10% for Q3 [13] Market Data and Key Metrics Changes - The company anticipates that the acquisition of Keap will generate approximately $11 million to $12 million in revenue for Q4 2024 [17] - Keap's acquisition adds over 15,000 quality customers and is expected to enhance the company's market presence [9][25] Company Strategy and Development Direction - The company aims to transition fully to a SaaS model, with a goal of becoming a 100% Net Dollar Retention (NDR) company [7] - The acquisition of Keap is seen as a strategic move to enhance product offerings and expand into larger small businesses [21][25] - The company plans to integrate Keap's platform with its existing offerings to create a unified product experience [34][35] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term economics of the accelerated migration strategy, with expectations of 10% to 15% growth in spending from converted customers [7][12] - The management team highlighted the importance of building a strong subscription base and the potential for upselling existing customers [12][56] - Future guidance for Q4 includes raising SaaS revenue expectations to a range of $90 million to $92 million [16] Other Important Information - The company generated $27.5 million in free cash flow, which was used to prepay $52.5 million in term loan amortization [16] - A noncash impairment charge of $83.1 million was recognized due to the ongoing structural decline of the marketing services business [15] Q&A Session Summary Question: Details on Keap automations and their benefits for SMB customers - Keap's automations help SMBs streamline operations, improve service consistency, and enhance marketing efforts, making them attractive for businesses with higher revenue [27][30] Question: Integration of Keap platform with Thryv - The company plans to fully integrate Keap's platform with its existing offerings, enhancing product interoperability and creating a unified platform [34][35] Question: Future conversions from marketing services to SaaS - The company has successfully accelerated the transition of marketing services clients to the SaaS platform, with expectations for continued growth in this area [39][41] Question: Go-to-market strategy post-acquisition - The acquisition will leverage Keap's partner ecosystem and Thryv's direct sales force to enhance distribution and drive growth [44][46] Question: Net dollar retention rate and future expectations - Management is confident that the net dollar retention rate will stabilize around 100%, with potential for slight increases as more customers adopt multiple products [51][56] Question: Annualized free cash flow post-Keap acquisition - The company is not yet prepared to guide for 2025 but will provide more information at the upcoming Analyst Day [62] Question: International growth opportunities with Keap - Keap's established international presence and reseller network provide a strategic entry point for expanding into new markets [64][65] Question: ARPU pressure and its contributors - ARPU is under pressure due to the transition of customers to lower commitment levels and the introduction of starter products to facilitate migration [66][71]

Thryv Holdings, Inc. (THRY) came out with a quarterly loss of $2.65 per share versus the Zacks Consensus Estimate of a loss of $2.53. This compares to loss of $0.78 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -4.74%. A quarter ago, it was expected that this company would post earnings of $0.41 per share when it actually produced earnings of $0.33, delivering a surprise of -19.51%.Over the last four quarters, the company ha ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to __________ Commission File Number: 001-35895 THRYV HOLDINGS, INC. (Exact name of registrant as specified in its charter) Delaware 13-2740040 | --- | -- ...