Thryv(US:THRY)2025-05-01 11:31Financial 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]