Thryv(US:THRY)2025-10-30 11:32Financial Performance - Revenue for the three months ended September 30, 2025, was $201,555,000, an increase from $179,852,000 in the same period of 2024, representing a growth of approximately 12.3%[12] - Gross profit for the three months ended September 30, 2025, was $136,465,000, compared to $111,981,000 in 2024, indicating a year-over-year increase of about 22%[12] - Operating income for the three months ended September 30, 2025, was $20,039,000, a significant improvement from an operating loss of $88,569,000 in the same quarter of 2024[12] - Net income for the three months ended September 30, 2025, was $5,654,000, compared to a net loss of $96,071,000 in the prior year, marking a turnaround in profitability[12] - The company reported a basic net income per share of $0.13 for the three months ended September 30, 2025, compared to a loss of $2.65 per share in the same period of 2024[12] - For the nine months ended September 30, 2025, the company reported a net income of $9.967 million, a significant improvement compared to a net loss of $82.099 million in the same period of 2024[22] Assets and Liabilities - Total current assets decreased to $193,924,000 as of September 30, 2025, down from $210,720,000 at the end of 2024[14] - Total assets as of September 30, 2025, were $701,799,000, a slight decrease from $712,165,000 at the end of 2024[14] - Total liabilities decreased to $480,723,000 as of September 30, 2025, compared to $515,245,000 at the end of 2024, reflecting improved financial health[14] - As of September 30, 2025, total stockholders' equity increased to $221,076, up from $214,884 as of June 30, 2025, reflecting a growth of approximately 2.8%[16] - The accumulated deficit as of September 30, 2025, was $(562,451), an increase from $(580,301) as of September 30, 2024, indicating a reduction in the deficit[18] - The company's total debt obligations as of September 30, 2025, were $268,181,000, down from $284,337,000 as of December 31, 2024, indicating a decrease of about 5.7%[71] Cash Flow and Operating Activities - Net cash provided by operating activities for the nine months ended September 30, 2025, was $41.321 million, down from $63.640 million in 2024, reflecting a decrease of approximately 35%[22] - The company’s total cash, cash equivalents, and restricted cash at the end of the period was $13.108 million, a decrease from $13.874 million at the end of September 2024[32] - Cash paid for interest decreased to $24.152 million in the nine months ended September 30, 2025, compared to $35.299 million in the same period of 2024, reflecting a reduction of approximately 31.5%[22] Acquisitions and Market Strategy - The company completed the acquisition of Infusion Software, Inc. d/b/a Keap for $77.0 million in cash, enhancing its SaaS offerings and customer relationships[42] - Thryv acquired Keap to enhance its market share in the SaaS industry, financing the acquisition through a public offering of 5,715,000 shares, generating net proceeds of $76.8 million and borrowing $5.5 million[43] - The company is focused on transitioning Marketing Services clients to the Thryv Platform and expanding its market presence, which is critical for future growth[10] - The company faces significant competition in its Marketing Services and SaaS offerings, which could impact its ability to maintain profitability and manage growth effectively[10] Stock and Compensation - The total number of common shares outstanding increased to 71,731,803 as of September 30, 2025, from 63,840,032 as of September 30, 2024, representing an increase of approximately 12.4%[18] - The additional paid-in capital rose to $1,296,216 as of September 30, 2025, compared to $1,177,078 as of September 30, 2024, marking an increase of about 10.1%[18] - Stock-based compensation expense for the three months ended September 30, 2025, was $5,807, compared to $6,011 for the same period in 2024, showing a decrease of approximately 3.4%[18] - The nonvested balance of Performance-Based Restricted Stock Units (PSUs) was 1,541,369, with a weighted-average grant-date fair value of $17.92[98] Segment Performance - SaaS segment revenue for the nine months ended September 30, 2025, was $342,037 thousand, up 43.1% from $239,171 thousand in the same period of 2024[124] - Marketing Services segment revenue decreased to $251,359 thousand for the nine months ended September 30, 2025, down 37.0% from $398,389 thousand in the same period of 2024[124] - Total segment adjusted EBITDA for the three months ended September 30, 2025, was $40,833 thousand, compared to $19,623 thousand for the same period in 2024, representing a 107.5% increase[125] Foreign Currency and Tax - The company recognized foreign currency translation adjustments resulting in an accumulated other comprehensive loss of $(15,472) thousand as of September 30, 2025, compared to $(14,059) thousand in 2024[120] - The effective tax rate for the three months ended September 30, 2025, was 50.7%, compared to 5.3% for the same period in 2024[109]