Core Insights - Thryv reported stronger-than-expected GAAP revenue of $210.5 million and diluted earnings per share of $0.31 for Q2 2025, surpassing analyst estimates [1][10] - The company is transitioning from legacy Marketing Services to a Subscription-based SaaS model, which is driving growth in recurring revenue [3][4] Financial Performance - GAAP revenue decreased by 6.1% year-over-year from $224.1 million in Q2 2024 [2] - SaaS revenue increased by 47.8% year-over-year to $115.0 million, contributing to 54.6% of total revenue, up from 34.7% in Q2 2024 [2][5] - Marketing Services revenue fell by 34.7% year-over-year to $95.5 million [2][8] - Net income more than doubled to $13.9 million, resulting in a GAAP EPS of $0.31, compared to $0.15 in Q2 2024 [10] SaaS Transition and Growth - The SaaS segment's adjusted EBITDA reached $23.4 million with a margin of 20.3%, up from 13.1% the previous year [6] - The total SaaS client base grew to 106,000, with 92,000 clients excluding the Keap acquisition [5] - The integration of Keap contributed $17.7 million to SaaS revenue and enhanced international reach [7] Future Guidance - Thryv raised its full-year 2025 Adjusted EBITDA guidance to $70.5 million to $73.5 million, with SaaS revenue expected to be between $460.0 million and $465.0 million [12] - For Q3 2025, SaaS revenue is forecasted at $116.0 million to $117.0 million, while Marketing Services revenue is expected to decline further to between $84.0 million and $85.0 million [12] Strategic Focus - The company aims to completely exit the Marketing Services business by the end of 2028, focusing on SaaS growth [9][13] - Management is concentrating on improving customer retention and cross-selling opportunities to enhance revenue from existing clients [7][13]

Q2 2025 Financial Performance - SaaS revenue increased to $115.005 million, a 47.8% year-over-year increase compared to $77.794 million in Q2 2024[37] - Marketing Services revenue decreased to $95.465 million, a 34.7% year-over-year decrease compared to $146.290 million in Q2 2024[37] - Consolidated revenue decreased to $210.470 million, a 6.1% year-over-year decrease compared to $224.084 million in Q2 2024[37] - Net income increased to $13.931 million, compared to $5.548 million in Q2 2024[37] - Total company billings decreased to $191.8 million, a 6% year-over-year decrease[55] Profitability Metrics - SaaS Adjusted EBITDA increased to $23.393 million with a margin of 20.3%[37] - Marketing Services Adjusted EBITDA was $27.839 million with a margin of 29.2%[37] - Consolidated Adjusted EBITDA was $51.232 million with a margin of 24.3%[37] SaaS Business Highlights - SaaS Adjusted Gross Margin increased to 74.0%, a 430 bps year-over-year increase[38] - Seasoned Net Revenue Retention (NRR) increased to 103%, a 900 bps year-over-year increase[38] - SaaS ARPU (Average Revenue Per Unit) reached $352[38] FY 2025 Outlook - The company expects FY 2025 SaaS revenue to increase by 34% to 35%, reaching $460.0 to $465.0 million[59] - The company expects FY 2025 Marketing Services revenue to decline by approximately 32% to 33%, landing between $323.0 to $325.0 million[59]