Financial Data and Key Metrics Changes - The company reported a 50% year-over-year revenue growth for Q1 2025, with normalized growth of 24% excluding the Keep acquisition [5][18] - SaaS revenue reached $111.1 million, exceeding guidance, with a sequential increase of 7% [18] - The adjusted EBITDA margin for SaaS improved to 10%, with total adjusted EBITDA of $20.9 million for the quarter [19][25] - The net debt position was $298 million, with a leverage ratio of 2.2 times net debt to EBITDA [26] Business Line Data and Key Metrics Changes - SaaS revenue now constitutes 61% of total revenue, marking a significant transition from marketing services to SaaS [6] - Subscriber growth for Thrive was 37%, totaling 96,000, and including Keep subscribers, the total reached 111,000 [8][20] - Marketing services revenue was $70.2 million, reflecting a 42% year-over-year decline as the company transitions clients to SaaS offerings [24] Market Data and Key Metrics Changes - The company noted a 103% seasoned net revenue retention rate, indicating strong customer loyalty and satisfaction [22] - The average revenue per user (ARPU) for SaaS reached $335, with Thrive's ARPU at $320 and Keep's at $428 [21][22] Company Strategy and Development Direction - The company is focused on expanding its SaaS offerings and deepening relationships with existing customers to drive revenue growth [12][14] - A strategic shift has been made to prioritize monthly recurring revenue (MRR) over new account acquisition, enhancing productivity and efficiency [13][14] - The company plans to exit the marketing services business by 2028, with cash flows extending into 2030 to support the transition [24][27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of their customer base, which primarily addresses non-discretionary needs [30][31] - The company has adopted a conservative outlook for the year, reflecting broader economic uncertainties while maintaining confidence in current performance [33][75] - Management highlighted the importance of referrals in driving new customer acquisition, which remains strong despite seasonal fluctuations [64] Other Important Information - The company is actively working on integrating Keep's automation capabilities and expanding its product offerings to partners [52][54] - The first PartnerCon conference was well-received, indicating strong partner engagement and excitement about the combined product offerings [56] Q&A Session Summary Question: Can you elaborate on the net retention rate and what customers are buying? - Management noted that the net retention rate of 103% reflects successful cross-selling and expansion efforts, with customers increasingly adopting additional products [36][38] Question: What is driving the increased traffic expense? - The increased traffic expense is attributed to higher demand for the marketing center and additional tools that help optimize customer visibility online [43][44] Question: What were the takeaways from the Keap Partner Conference? - Partners expressed excitement about the integration of Thrive's capabilities with Keep's automation tools, enhancing their service offerings [50][52] Question: Why was there a decline in SaaS customer additions this quarter? - The decline was attributed to seasonal factors, particularly during the holiday period, which affects small business engagement [57][60] Question: How is the company managing the transition from marketing services to SaaS? - Management confirmed that the transition is on track, with a focus on maintaining customer satisfaction and reducing churn rates among migrated clients [80][82]

Q1 2025 Financial Performance - SaaS revenue increased to $111.129 million, a 49.5% year-over-year increase compared to $74.322 million in Q1 2024 [34] - Marketing Services revenue decreased to $70.242 million, a (55.9)% year-over-year decrease compared to $159.302 million in Q1 2024 [34] - Consolidated revenue decreased to $181.371 million, a (22.4)% year-over-year decrease compared to $233.624 million in Q1 2024 [34] - The company reported a net loss of $9.618 million, compared to a net income of $8.424 million in Q1 2024 [34] Profitability Metrics - SaaS Adjusted EBITDA increased to $10.815 million, compared to $3.435 million in Q1 2024 [34] - SaaS Adjusted EBITDA Margin increased to 9.7%, compared to 4.6% in Q1 2024 [34] - Marketing Services Adjusted EBITDA decreased to $10.086 million, compared to $50.679 million in Q1 2024 [34] - Marketing Services Adjusted EBITDA Margin decreased to 14.4%, compared to 31.8% in Q1 2024 [34] - Consolidated Adjusted EBITDA decreased to $20.901 million, compared to $54.114 million in Q1 2024 [34] - Consolidated Adjusted EBITDA Margin decreased to 11.5%, compared to 23.2% in Q1 2024 [34] Future Outlook - The company expects SaaS revenue between $113.0 million and $115.0 million for Q2 2025 and between $460.5 million and $471.0 million for FY 2025 [55] - The company expects Marketing Services revenue between $90.0 million and $91.0 million for Q2 2025 and between $310.0 million and $314.0 million for FY 2025 [55]

Financial Performance - Revenue for Q1 2025 was $181.371 million, a decrease of 22.3% compared to $233.624 million in Q1 2024[11] - Gross profit for Q1 2025 was $119.288 million, down from $153.641 million in Q1 2024, reflecting a decline of 22.3%[11] - Operating loss for Q1 2025 was $(3.034) million, compared to an operating income of $31.134 million in Q1 2024[11] - Net loss for Q1 2025 was $(9.618) million, contrasting with a net income of $8.424 million in Q1 2024[11] - For the three months ended March 31, 2025, the net loss was $9,618,000 compared to a net income of $8,424,000 for the same period in 2024, representing a significant decline[17] - Total Segment Adjusted EBITDA for Q1 2025 was $20.901 million, a decline of 61.4% compared to $54.114 million in Q1 2024[111] - The company reported a loss before income tax benefit of $12.483 million for Q1 2025, compared to an income of $13.821 million in Q1 2024[111] Assets and Liabilities - Total current assets decreased to $202.687 million as of March 31, 2025, from $210.720 million at the end of 2024[13] - Total assets decreased to $703.734 million as of March 31, 2025, down from $712.165 million at the end of 2024[13] - Total liabilities increased to $510.503 million as of March 31, 2025, compared to $509.245 million at the end of 2024[13] - Cash and cash equivalents decreased to $10.993 million as of March 31, 2025, from $16.311 million at the end of 2024[13] - Total debt obligations as of March 31, 2025, were $298,987 thousand, an increase from $284,337 thousand as of December 31, 2024[60] Cash Flow and Expenses - Operating cash flow for the three months ended March 31, 2025, was a net cash used of $10,481,000, compared to a net cash provided of $5,438,000 in the same period of 2024[17] - Cash paid for interest in the three months ended March 31, 2025, was $8,256,000, compared to $11,911,000 in the same period of 2024, indicating a reduction in interest expenses[17] - The net periodic pension cost for the three months ended March 31, 2025, was $768 thousand, a decrease from $1,581 thousand in the same period of 2024[79] Stock and Equity - The company reported a basic net loss per share of $(0.22) for Q1 2025, compared to a basic net income per share of $0.24 in Q1 2024[11] - The company’s total stockholders' equity as of March 31, 2025, was $193,231,000, a slight decrease from $167,066,000 as of March 31, 2024[15] - Stock-based compensation expense for the three months ended March 31, 2025, was $7.737 million, an increase of 46.3% from $5.289 million in the same period of 2024[82] - The Company had repurchased approximately $0.5 million, or 26,495 shares, of its outstanding common stock under the Share Repurchase Program, with $39.5 million remaining available for repurchases[94] Acquisitions and Investments - The company completed the acquisition of Infusion Software, Inc. (Keap) on October 31, 2024, enhancing its SaaS offerings for small businesses[21] - Thryv, Inc. acquired Keap for $77.0 million in cash, with the acquisition including $3.0 million in current assets and $34.9 million in goodwill[34][38] - The goodwill recognized from the Keap acquisition was primarily due to expected synergies within the SaaS segment[37] - The preliminary purchase price allocation for the Keap acquisition included $27.3 million in client relationships and $5.7 million in trademarks and domain names[38] Segment Performance - Thryv SaaS segment revenue increased to $111.129 million in Q1 2025, up 49.5% from $74.322 million in Q1 2024[110] - Thryv Marketing Services segment revenue decreased to $70.242 million in Q1 2025, down 56.0% from $159.302 million in Q1 2024[110] Tax and Compliance - The Company's effective tax rate for the three months ended March 31, 2025, was 23.0%, down from 39.0% in the same period of 2024[96] - As of March 31, 2025, the amount of unrecognized tax benefits was $18.8 million, which could impact the effective tax rate if recognized[97] - The Company expects to remain in compliance with its Term Loan and ABL Facility covenants for the next twelve months[70][76] Other Financial Metrics - The company recognized $30.3 million in revenue from contract liabilities during the three months ended March 31, 2025, compared to $28.5 million for the same period in 2024[45] - The allowance for credit losses as of March 31, 2025, was $13,177 thousand, down from $17,868 thousand as of March 31, 2024[57] - The Company recorded a provision for credit losses of $3.8 million for the three months ended March 31, 2025, compared to $6.0 million for the same period in 2024[57]

Revenue Performance - SaaS revenue increased by 50% year-over-year to $111.1 million in Q1 2025, with SaaS revenue excluding Keap growing by 24% to $92.2 million[2][9] - SaaS revenue accounted for over 60% of total revenue in Q1 2025, highlighting the company's strategic transformation[3][4] - Consolidated total revenue decreased by 22% year-over-year to $181.4 million, with a consolidated net loss of $9.6 million compared to a net income of $8.4 million in Q1 2024[9][13] - Total Marketing Services revenue was $70.2 million, reflecting a 56% decrease year-over-year[9] - SaaS revenue for Q1 2025 was $111,129,000, a 49.5% increase from $74,322,000 in Q1 2024[16] - Marketing Services revenue decreased by 55.9%, from $159,302,000 in Q1 2024 to $70,242,000 in Q1 2025[16] - Total revenue for Q1 2025 was $181,371,000, down 22.4% from $233,624,000 in Q1 2024[16] Client Growth and Retention - Seasoned Net Revenue Retention (NRR) reached a record 103% in Q1 2025, an increase of 900 basis points year-over-year[4][9] - SaaS clients increased by 59% year-over-year to 111,000, while SaaS clients excluding Keap grew by 37% to 96,000[9] Profitability Metrics - SaaS Adjusted EBITDA was $10.8 million, representing an Adjusted EBITDA margin of 9.7%[9] - Adjusted EBITDA for Q1 2025 was $20,901,000, a 61.4% decrease from $54,114,000 in Q1 2024[16] - Adjusted EBITDA margin for SaaS was 9.7% in Q1 2025, compared to 4.6% in Q1 2024[26] - Adjusted Gross Profit for SaaS in Q1 2025 was $81,452,000, up from $50,859,000 in Q1 2024[22] - Adjusted Gross Margin for SaaS improved to 73.3% in Q1 2025 from 68.4% in Q1 2024[22] Future Guidance - The company expects Q2 2025 SaaS revenue guidance of $113.0 - $115.0 million and full-year 2025 guidance of $460.5 - $471.0 million[7] Operational Focus - The company aims to enhance efficiencies and reduce costs through restructuring and integration efforts[23] - The company is focused on expanding its operations and offerings into new markets, including internationally[28] Payment Volume - ThryvPay total payment volume increased by 13% year-over-year to $71 million[9]

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]

Financial Data and Key Metrics Changes - For Q4 2024, total SaaS reported revenue was $104.3 million, reflecting a year-over-year growth of 41% and a sequential increase of 20% [24] - Full year SaaS reported revenue grew 30% year-over-year to $343.5 million [26] - SaaS adjusted gross margin increased to 76% for Q4, up 620 basis points year-over-year [27] - Total SaaS adjusted EBITDA for Q4 was $17.3 million, resulting in an adjusted EBITDA margin of 16.6% [28] - Net revenue retention was 98%, close to the long-term target of 100% [12][29] Business Line Data and Key Metrics Changes - Thryv SaaS revenue for Q4 was $90.9 million, growing 23% year-over-year [25] - The number of subscribers in Thryv SaaS grew 50% year-over-year to 99,000, reaching 114,000 when including Keap [10] - Marketing Services revenue for Q4 was $82.3 million, with a full year total of $480.7 million [31] - Marketing Services adjusted EBITDA for Q4 was $12.1 million, resulting in a margin of 15% [31] Market Data and Key Metrics Changes - Fourth quarter marketing services billings were $92 million, reflecting a 40% year-over-year decline [33] - The company is transitioning many legacy marketing services clients to its SaaS offering, impacting the rate of decline in marketing services billings [33] Company Strategy and Development Direction - The company plans to exit the marketing services business by 2028, with cash flows extending into 2030 [34] - The acquisition of Keap is expected to enhance SaaS adoption and create synergies, with $10 million of EBITDA synergies already identified [16] - The company aims to focus on building a profitable SaaS business, with expectations that the majority of EBITDA will come from SaaS by 2026 [41][92] Management's Comments on Operating Environment and Future Outlook - Management noted a cautious sentiment among small businesses due to concerns about tariffs and inflation, but emphasized that execution remains key to results [65][66] - For 2025, total SaaS revenue is expected to be in the range of $464.5 million to $474 million, implying growth of 35% to 38% [38] - The company anticipates significant deleveraging in the latter half of 2025 [37] Other Important Information - The company achieved a milestone where total SaaS revenue now constitutes over 50% of total revenues [10] - The company is focused on integrating Keap and enhancing its product offerings, including the launch of new features like Reporting Center and AI review response [19][21] Q&A Session Summary Question: Early commentary on the cross-sell process with Keap customers - Management indicated that the cross-sell process is underway, with early sales already occurring and expectations of about $5 million in cross-sell revenue this year [53] Question: Changes in selling cycles for larger businesses - Management clarified that they are targeting slightly larger businesses, focusing on providing more powerful reporting tools to meet their needs [56][58] Question: Customer adds in the core SaaS business - Management acknowledged seasonality in Q4, noting that small businesses often slow down during the holidays, impacting customer adds [64] Question: Performance of the Keap acquisition - Management stated that the Keap acquisition outperformed expectations in Q4 due to conservative estimates, but they will maintain their fiscal 2025 contribution estimates [71] Question: Feedback from customers on cross-sell experiences - Management reported positive feedback from customers who have experienced cross-sell opportunities, highlighting the synergy between Thryv and Keap offerings [78] Question: Changes to the go-to-market strategy for overall business growth - Management emphasized that the acquisition of Keap significantly enhances their partner channel, which will contribute to sales efforts and international expansion [85] Question: Confidence in EBITDA growth and timing - Management anticipates that the majority of EBITDA will come from SaaS by 2026, with marketing services continuing to generate revenue but declining [92][93] Question: Launch cadence of additional centers - Management indicated that while they have plans for the Workforce Center, they will focus on integration and ensuring the platform works well together before promising additional centers [98] Question: ARPU progression for the core Thryv SaaS business - Management expects strong progress in ARPU growth for 2025, focusing on upselling existing customers and enhancing engagement with the product [106][108]

| thryv | | --- | | Industry Leading Marketing | | and Sales Platform | | Supercharge your businesss growth with our award-winning | | small business soloware and Al t | | to stay sop or | You lack Insighes Inco | Voche unsure | | --- | --- | --- | | DOGERISOD | what your compedents | howalshors in | | s but don't know | we dollig online and how | your websice : | | 1492 | on speas now | so Improve | | ssoughts | From was to been your | Totamany sai | | on up on all the | for all brand presence, but | Jane ...

Group 1 - Thryv Holdings, Inc. reported quarterly earnings of $0.19 per share, exceeding the Zacks Consensus Estimate of a loss of $0.07 per share, representing an earnings surprise of 371.43% [1] - The company posted revenues of $186.6 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 1.68%, but down from $236.16 million year-over-year [2] - Thryv shares have increased approximately 25.7% since the beginning of the year, outperforming the S&P 500's gain of 1.3% [3] Group 2 - The current consensus EPS estimate for the upcoming quarter is -$0.06 on revenues of $179.38 million, and for the current fiscal year, it is $1.15 on revenues of $778.83 million [7] - The Zacks Industry Rank for Internet - Software is in the top 33% of over 250 Zacks industries, indicating a favorable outlook for the industry [8]

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 ...