Thryv Accelerates SaaS Revenue Growth and Achieves the "Rule of 40¹" in Third Quarter 2024

Rhea-AI Summary

Thryv Holdings (NASDAQ:THRY) reported strong Q3 2024 results with SaaS revenue growing 29% year-over-year to $87.1 million. The company achieved the 'Rule of 40' milestone and raised its full-year 2024 SaaS guidance. Total SaaS clients increased 45% to 96,000, while Seasoned Net Dollar Retention improved to 101%. However, Marketing Services revenue decreased 20% to $92.8 million. The company reported a consolidated net loss of $96.1 million, including an $83.1 million non-cash goodwill impairment charge. Thryv also completed the acquisition of Keap, expanding its integrated marketing and sales solutions.

Positive

• SaaS revenue grew 29% year-over-year to $87.1 million
• Total SaaS clients increased 45% to 96,000
• Seasoned Net Dollar Retention improved 900 bps to 101%
• SaaS Adjusted Gross Profit Margin reached 72.2%
• Company raised full year 2024 SaaS guidance

Negative

• Consolidated net loss of $96.1 million, including $83.1 million goodwill impairment
• Marketing Services revenue decreased 20% to $92.8 million
• Total consolidated revenue decreased 2% year-over-year

Insights

Financial Analyst

The Q3 2024 results show strong momentum in Thryv's SaaS transformation, with $87.1M in SaaS revenue growing 29% year-over-year. Key positives include reaching the "Rule of 40" milestone, improving Seasoned Net Dollar Retention to 101% and the strategic Keap acquisition expanding their product suite. However, the $83.1M goodwill impairment in Marketing Services and $96.1M net loss raise some concerns.

The company's guidance increase for SaaS revenue shows confidence in continued execution, while Marketing Services' planned decline continues as expected. The 72.2% SaaS gross margins demonstrate strong unit economics, though overall profitability needs improvement.

Tech Industry Analyst

The acquisition of Keap marks a significant expansion of Thryv's SaaS capabilities, particularly in marketing automation and CRM. The 45% year-over-year growth in SaaS clients to 96,000 shows strong market adoption, while the 12% increase in paid centers per client validates their land-and-expand strategy. The $82M in ThryvPay volume, up 30%, indicates growing traction in payments processing.

The $307 monthly ARPU suggests room for expansion through upselling additional services, especially with the enhanced product suite from Keap integration.

– Grows SaaS Revenue 29% in Q3 2024

– Raises Full Year 2024 SaaS guidance

– Seasoned NDR increases 900 bps year-over-year to 101%

– Closes acquisition of Infusion Software, Inc., "Keap"

DALLAS--(BUSINESS WIRE)-- Thryv Holdings, Inc. (NASDAQ:THRY) (“Thryv” or the “Company”), the provider of Thryv®, the leading small business software platform, reported SaaS revenue growth of 29% year-over-year in the third quarter of 2024.

“We had a strong third quarter - delivering SaaS revenue growth of 29% year-over-year and record SaaS margins,” said Joe Walsh, Thryv Chairman and CEO. “We reported 45% year-over-year growth in SaaS clients as we are upgrading our marketing service clients to our SaaS platform and have continued to execute on our transformation strategy. In addition, we achieved a significant milestone that further validates our business model and reached the 'Rule of 40' this quarter.

“With our recent acquisition of Keap, Thryv will be offering an expanded, integrated set of marketing and sales solutions, and a strong global partner channel, to our 100,000-plus SaaS clients,” said Walsh.

“In the third quarter, we beat our SaaS Revenue and Adjusted EBITDA guidance and are raising our full year SaaS guidance,” stated Paul Rouse, Chief Financial Officer. “Our Seasoned NDR increased to 101%, as we continue to increase paid centers per client, which grew 12% this quarter, demonstrating the success of our land-and-expand strategy.”

Third Quarter 2024 Highlights:

• Total SaaS revenue was $87.1 million, a 29% increase year-over-year
• Total Marketing Services revenue was $92.8 million, a 20% decrease year-over-year
• Consolidated total revenue was $179.9 million, a decrease of 2% year-over-year
• Consolidated net loss was $96.1 million, or $(2.65) per diluted share; which includes a non-cash charge of $83.1 million, or $(2.29) per diluted share, related to a goodwill impairment for our Marketing Services segment; compared to net loss of $27.0 million, or $(0.78) per diluted share, for the third quarter of 2023
• Consolidated Adjusted EBITDA was $19.6 million, representing an Adjusted EBITDA margin of 10.9%
• Total SaaS Adjusted EBITDA was $10.3 million, representing an Adjusted EBITDA margin of 11.8%
• Total Marketing Services Adjusted EBITDA was $9.3 million, representing an Adjusted EBITDA margin of 10.0%
• Consolidated Gross Profit was $112.0 million
• Consolidated Adjusted Gross Profit² was $116.8 million
• SaaS Gross Profit was $60.6 million
• SaaS Adjusted Gross Profit was $62.9 million, representing an Adjusted Gross Profit Margin of 72.2%

SaaS Metrics

• Total SaaS clients increased 45% year-over-year to 96 thousand for the third quarter of 2024
• Seasoned Net Dollar Retention³ was 101% for the third quarter of 2024, an increase of 900 bps year-over-year
• SaaS monthly Average Revenue per Unit (“ARPU”)⁴ was $307 for the third quarter of 2024
• ThryvPay total payment volume was $82 million, an increase of 30% year-over-year

Outlook

Based on information available as of November 7, 2024, Thryv is issuing guidance⁵ for the fourth quarter of 2024 and full year 2024 as indicated below:

	4th Quarter		Full Year
(in millions)	2024		2024
SaaS Revenue	$90.0 - $92.0		$329.5 - $331.5
SaaS Adjusted EBITDA	$9.5 - $10.5		$33.5 - $34.5

	4th Quarter		Full Year
(in millions)	2024		2024
Marketing Services Revenue	$81.0 - $83.0		$479.0 - $481.0
Marketing Services Adjusted EBITDA	$16.0 - $19.0		$125.0 - $128.0

For the fourth quarter of 2024, the Company's recent acquisition of Keap is expected to contribute SaaS revenue in the range of $11.0 to $12.0 million, which relates to November and December and is not included in the guidance issued above. Keap's SaaS Adjusted EBITDA is expected to be de minimus for the fourth quarter of 2024 and is also not included in the guidance issued above.

Earnings Conference Call Information

Thryv will host a conference call on Thursday, November 7, 2024 at 8:30 a.m. (Eastern Time) to discuss the Company's third quarter 2024 results.

For analysts to register for this conference call, please use this link. After registering, a confirmation email will be sent, including dial-in details and a unique code for entry. We recommend registering a day in advance or at a minimum thirty minutes prior to the start of the call. To listen to the webcast, please use this link or visit Thryv's Investor Relations website at investor.thryv.com. A live webcast will also be available on the Investor Relations section of the Company's website at investor.thryv.com.

If you are unable to participate in the conference call, a replay will be available at this link.

Thryv Holdings, Inc. and Subsidiaries
Consolidated Statements of Operations and Comprehensive (Loss)

	Three Months Ended								Nine Months Ended
	September 30,								September 30,
(in thousands, except share and per share data)		2024				2023				2024				2023
Revenue	$	179,852			$	183,822			$	637,560			$	680,798
Cost of services		67,871				80,178				223,350				262,261
Gross profit		111,981				103,644				414,210				418,537
Operating expenses:
Sales and marketing		66,484				74,755				201,984				226,781
General and administrative		50,972				48,267				155,229				149,642
Impairment charges		83,094				—				83,094				—
Total operating expenses		200,550				123,022				440,307				376,423
Operating (loss) income		(88,569	)			(19,378	)			(26,097	)			42,114
Other income (expense):
Interest expense		(8,194	)			(15,131	)			(31,554	)			(47,911	)
Interest expense, related party		(3,320	)			—				(5,494	)			—
Other components of net periodic pension cost		(1,581	)			(1,902	)			(4,743	)			(3,888	)
Other income (expense)		218				(876	)			(7,571	)			(1,242	)
(Loss) before income tax benefit (expense)		(101,446	)			(37,287	)			(75,459	)			(10,927	)
Income tax benefit (expense)		5,375				10,241				(6,640	)			9,173
Net (loss)	$	(96,071	)		$	(27,046	)		$	(82,099	)		$	(1,754	)
Other comprehensive income (loss):
Foreign currency translation adjustment, net of tax		1,330				(1,842	)			1,132				(4,332	)
Comprehensive (loss)	$	(94,741	)		$	(28,888	)		$	(80,967	)		$	(6,086	)
Net (loss) per common share:
Basic	$	(2.65	)		$	(0.78	)		$	(2.28	)		$	(0.05	)
Diluted	$	(2.65	)		$	(0.78	)		$	(2.28	)		$	(0.05	)
Weighted-average shares used in computing basic and diluted net (loss) per common share:
Basic		36,308,992				34,848,899				35,983,826				34,619,794
Diluted		36,308,992				34,848,899				35,983,826				34,619,794

Thryv Holdings, Inc. and Subsidiaries
Consolidated Balance Sheets

(in thousands, except share data)	September 30, 2024				December 31, 2023
Assets
Current assets
Cash and cash equivalents	$	12,453			$	18,216
Accounts receivable, net of allowance of $18,890 in 2024 and $14,926 in 2023		176,364				205,503
Contract assets, net of allowance of $33 in 2024 and $35 in 2023		9,068				2,909
Taxes receivable		2,706				3,085
Prepaid expenses		18,383				17,771
Deferred costs		10,184				16,722
Other current assets		1,780				2,662
Total current assets		230,938				266,868
Fixed assets and capitalized software, net		37,142				38,599
Goodwill		218,884				302,400
Intangible assets, net		3,453				18,788
Deferred tax assets		139,769				128,051
Other assets		24,567				28,464
Total assets	$	654,753			$	783,170
Liabilities and Stockholders' Equity
Current liabilities
Accounts payable	$	6,946			$	10,348
Accrued liabilities		98,439				105,903
Current portion of unrecognized tax benefits		25,623				23,979
Contract liabilities		32,534				44,558
Current portion of Term Loan		35,783				70,000
Current portion of Term Loan, related party		16,717				—
Other current liabilities		5,906				8,402
Total current liabilities		221,948				263,190
Term Loan, net		157,794				230,052
Term Loan, net, related party		75,610				—
ABL Facility		21,900				48,845
Pension obligations, net		73,723				69,388
Other liabilities		9,246				18,995
Total long-term liabilities		338,273				367,280
Commitments and contingencies
Stockholders' equity
Common stock - $0.01 par value, 250,000,000 shares authorized; 63,840,032 shares issued and 36,322,417 shares outstanding at September 30, 2024; and 62,660,783 shares issued and 35,302,746 shares outstanding at December 31, 2023		638				627
Additional paid-in capital		1,177,078				1,151,259
Treasury stock - 27,517,615 shares at September 30, 2024 and 27,358,037 shares at December 31, 2023		(488,824	)			(485,793	)
Accumulated other comprehensive loss		(14,059	)			(15,191	)
Accumulated deficit		(580,301	)			(498,202	)
Total stockholders' equity		94,532				152,700
Total liabilities and stockholders' equity	$	654,753			$	783,170

Thryv Holdings, Inc. and Subsidiaries
Consolidated Statements of Cash Flows

	Nine Months Ended September 30,
(in thousands)		2024				2023
Cash Flows from Operating Activities
Net (loss)	$	(82,099	)		$	(1,754	)
Adjustments to reconcile net (loss) to net cash provided by operating activities:
Depreciation and amortization		41,144				46,940
Amortization of deferred commissions		14,251				10,304
Amortization of debt issuance costs		3,151				4,080
Deferred income taxes		(11,823	)			808
Provision for credit losses and service credits		16,496				15,594
Stock-based compensation expense		17,653				16,653
Other components of net periodic pension cost		4,743				3,888
Impairment charges		83,094				—
Loss on foreign currency exchange rates		933				164
Non-cash loss from the remeasurement of the indemnification asset		—				10,734
Loss on early extinguishment of debt		6,638				—
Other		(3,167	)			—
Changes in working capital items, excluding acquisitions:
Accounts receivable		18,161				59,238
Contract assets		(6,160	)			1,111
Prepaid expenses and other assets		(7,079	)			23,489
Accounts payable and accrued liabilities		(14,108	)			(63,469	)
Other liabilities		(18,188	)			(24,132	)
Net cash provided by operating activities		63,640				103,648
Cash Flows from Investing Activities
Additions to fixed assets and capitalized software		(24,730	)			(22,920	)
Acquisition of a business, net of cash acquired		—				(8,897	)
Other		—				(215	)
Net cash used in investing activities		(24,730	)			(32,032	)
Cash Flows from Financing Activities
Proceeds from Term Loan		234,256				—
Proceeds from Term Loan, related party		109,444				—
Payments of Term Loan		(345,151	)			(95,000	)
Payments of Term Loan, related party		(16,717	)			—
Proceeds from ABL Facility		247,579				697,234
Payments of ABL Facility		(274,524	)			(694,395	)
Debt issuance costs		(5,480	)			—
Purchase of treasury stock		(499	)			—
Proceeds from exercises of stock warrants		—				15,899
Other		5,646				4,124
Net cash used in financing activities		(45,446	)			(72,138	)
Effect of exchange rate changes on cash, cash equivalents and restricted cash		(120	)			(707	)
(Decrease) in cash, cash equivalents and restricted cash		(6,656	)			(1,229	)
Cash, cash equivalents and restricted cash, beginning of period		20,530				18,180
Cash, cash equivalents and restricted cash, end of period	$	13,874			$	16,951
Supplemental Information
Cash paid for interest	$	35,299			$	44,029
Cash paid for income taxes, net	$	14,960			$	7,605
Non-cash investing and financing activities
Repurchase of Treasury stock as a result of the settlement of the indemnification asset	$	—			$	15,760

Segment Information

During first quarter of 2024, the Company changed the internal reporting provided to the chief operating decision maker (“CODM”). As a result, the Company reevaluated its segment reporting and determined that Thryv U.S. Marketing Services and Thryv International Marketing Services should be reflected as a single reportable segment, and that Thryv U.S. SaaS and Thryv International SaaS should be reflected as a single reportable segment. As such, beginning on January 1, 2024, the results of our Marketing Services and SaaS businesses are presented as two reportable segments. Comparative prior periods have been recast to reflect the current presentation.

The following tables summarize the operating results of the Company's reportable segments:

	Three Months Ended September 30,							Change
(in thousands)		2024			2023			Amount				%
Revenue
Marketing Services	$	92,797		$	116,462			$	(23,665	)		(20.3	)%
SaaS		87,055			67,360				19,695			29.2	%
Total Revenue	$	179,852		$	183,822			$	(3,970	)		(2.2	)%
Segment Gross Profit
Marketing Services	$	51,374		$	60,776			$	(9,402	)		(15.5	)%
SaaS		60,607			42,868				17,739			41.4	%
Consolidated Segment Gross Profit	$	111,981		$	103,644			$	8,337			8.0	%
Segment EBITDA
Marketing Services	$	9,309		$	7,835			$	1,474			18.8	%
SaaS		10,314			(504	)			10,818			NM
Consolidated Adjusted EBITDA	$	19,623		$	7,331			$	12,292			167.7	%

	Nine Months Ended September 30,						Change
(in thousands)		2024			2023		Amount				%
Revenue
Marketing Services	$	398,389		$	491,051		$	(92,662	)		(18.9	)%
SaaS		239,171			189,747			49,424			26.0	%
Total Revenue	$	637,560		$	680,798		$	(43,238	)		(6.4	)%
Segment Gross Profit
Marketing Services	$	252,219		$	299,305		$	(47,086	)		(15.7	)%
SaaS		161,991			119,232			42,759			35.9	%
Consolidated Segment Gross Profit	$	414,210		$	418,537		$	(4,327	)		(1.0	)%
Segment EBITDA
Marketing Services	$	109,137		$	129,717		$	(20,580	)		(15.9	)%
SaaS		23,914			5,522			18,392			NM
Consolidated Adjusted EBITDA	$	133,051		$	135,239		$	(2,188	)		(1.6	)%

Non-GAAP Measures

Our results included in this press release include Adjusted EBITDA, Adjusted EBITDA Margin and Adjusted Gross Profit, which are not presented in accordance with U.S. generally accepted accounting principles (“GAAP”). These non-GAAP measures are presented for supplemental informational purposes only and are not intended to be considered in isolation or as a substitute for, or superior to, financial information prepared and presented in accordance with GAAP. Please refer to the supplemental information presented in the tables below for a reconciliation of Adjusted EBITDA to Net income (loss) and Adjusted Gross Profit to Gross profit. Both Net income (loss) and Gross profit are the most comparable GAAP financial measure to Adjusted EBITDA and Adjusted Gross Profit, respectively. Adjusted EBITDA margin is defined as Adjusted EBITDA divided by revenue.

We believe that these non-GAAP financial measures provide useful information about our financial performance, enhance the overall understanding of our past performance and allow for greater transparency with respect to important metrics used by our management for financial and operational decision-making. We believe that these measures provide additional tools for investors to use in comparing our core financial performance over multiple periods with other companies in our industry. However, it is important to note that the particular items we exclude from, or include in, our non-GAAP financial measures may differ from the items excluded from, or included in, similar non-GAAP financial measures used by other companies in the same industry.

The following is a reconciliation of Adjusted EBITDA to its most directly comparable GAAP measure, Net (loss):

	Three Months Ended September 30,								Nine Months Ended September 30,
(in thousands)		2024				2023				2024				2023
Reconciliation of Adjusted EBITDA
Net (loss)	$	(96,071	)		$	(27,046	)		$	(82,099	)		$	(1,754	)
Interest expense		11,514				15,131				37,048				47,911
Depreciation and amortization expense		12,519				15,842				41,144				46,940
Stock-based compensation expense (1)		6,011				5,462				17,653				16,653
Restructuring and integration expenses (2)		4,861				3,584				17,679				12,845
Income tax (benefit) expense		(5,375	)			(10,241	)			6,640				(9,173	)
Transaction costs (3)		1,706				—				1,706				373
Other components of net periodic pension cost (4)		1,581				1,902				4,743				3,888
Loss on early extinguishment of debt (5)		—				—				6,638				—
Non-cash loss from remeasurement of indemnification asset (6)		—				—				—				10,734
Impairment charges		83,094				—				83,094				—
Other (7)		(217	)			2,697				(1,195	)			6,822
Adjusted EBITDA	$	19,623			$	7,331			$	133,051			$	135,239

(1)		We record stock-based compensation expense related to the amortization of grant date fair value of the Company’s stock-based compensation awards.
(2)		For the three and nine months ended September 30, 2024 and 2023, expenses relate to periodic efforts to enhance efficiencies and reduce costs, and include severance benefits, and costs associated with abandoned facilities and system consolidation.
(3)		Expenses related to the Keap acquisition during the three and nine months ended September 30, 2024, and the Yellow acquisition during the nine months ended September 30, 2023.
(4)		Other components of net periodic pension cost is from our non-contributory defined benefit pension plans that are currently frozen and incur no additional service costs. The most significant component of Other components of net periodic pension cost relates to periodic mark-to-market pension remeasurement.
(5)		In connection with the debt refinancing completed on May 1, 2024, we recorded a Loss on early extinguishment of debt related to the write-off of certain unamortized debt issuance costs on our prior Term Loan and prior ABL Facility.
(6)		In connection with the YP acquisition, the seller indemnified us for future potential losses associated with certain federal and state tax positions taken in tax returns filed by the seller prior to the acquisition date.
(7)		Other primarily represents foreign exchange-related expense (income).

The following tables set forth reconciliations of Adjusted Gross Profit and Adjusted Gross Margin, to their most directly comparable GAAP measures, Gross profit and Gross margin:

	Three Months Ended September 30, 2024
(in thousands)	Marketing Services				SaaS				Total
Reconciliation of Adjusted Gross Profit
Gross profit	$	51,374			$	60,607			$	111,981
Plus:
Depreciation and amortization expense		2,508				2,189				4,697
Stock-based compensation expense		69				92				161
Adjusted Gross Profit	$	53,951			$	62,888			$	116,839
Gross Margin		55.4	%			69.6	%			62.3	%
Adjusted Gross Margin		58.1	%			72.2	%			65.0	%

	Three Months Ended September 30, 2023
(in thousands)	Marketing Services				SaaS				Total
Reconciliation of Adjusted Gross Profit
Gross profit	$	60,776			$	42,868			$	103,644
Plus:
Depreciation and amortization expense		4,885				1,901				6,786
Stock-based compensation expense		103				71				174
Adjusted Gross Profit	$	65,764			$	44,840			$	110,604
Gross Margin		52.2	%			63.6	%			56.4	%
Adjusted Gross Margin		56.5	%			66.6	%			60.2	%

	Nine Months Ended September 30, 2024
(in thousands)	Marketing Services				SaaS				Total
Reconciliation of Adjusted Gross Profit
Gross profit	$	252,219			$	161,991			$	414,210
Plus:
Depreciation and amortization expense		10,569				5,770				16,339
Stock-based compensation expense		280				228				508
Adjusted Gross Profit	$	263,068			$	167,989			$	431,057
Gross Margin		63.3	%			67.7	%			65.0	%
Adjusted Gross Margin		66.0	%			70.2	%			67.6	%

	Nine Months Ended September 30, 2023
(in thousands)	Marketing Services				SaaS				Total
Reconciliation of Adjusted Gross Profit
Gross profit	$	299,305			$	119,232			$	418,537
Plus:
Depreciation and amortization expense		16,790				4,603				21,393
Stock-based compensation expense		325				171				496
Adjusted Gross Profit	$	316,420			$	124,006			$	440,426
Gross Margin		61.0	%			62.8	%			61.5	%
Adjusted Gross Margin		64.4	%			65.4	%			64.7	%

Supplemental Financial Information

The following supplemental financial information provides Revenue, Adjusted EBITDA and Adjusted EBITDA Margin by (i) Marketing Services businesses and (ii) SaaS businesses. Total SaaS Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP financial measures. Total Marketing Services Adjusted EBITDA and Adjusted EBITDA margin are also non-GAAP financial measures. These non-GAAP financial measures are presented for supplemental informational purposes only and are not intended to be considered in isolation or as a substitute for, or superior to, financial information prepared and presented in accordance with GAAP. Please refer to the supplemental information presented in the tables below for a reconciliation of these non-GAAP financial measures to the corresponding segment financial measures presented in accordance with GAAP.

We believe that these non-GAAP financial measures provide useful information about our global SaaS and Marketing Services financial performance, enhance the overall understanding of our global SaaS and Marketing Services past financial performance and allow for greater transparency with respect to important metrics used by our management for financial and operational decision-making. We believe that these measures provide additional tools for investors to use in comparing our core financial performance over multiple periods.

	Three Months Ended September 30, 2024
(in thousands)	Marketing Services				SaaS				Total
Revenue	$	92,797			$	87,055			$	179,852
Net (Loss)										(96,071	)
Net (Loss) Margin										(53.4	)%
Adjusted EBITDA		9,309				10,314				19,623
Adjusted EBITDA Margin		10.0	%			11.8	%			10.9	%

	Three Months Ended September 30, 2023
(in thousands)	Marketing Services				SaaS				Total
Revenue	$	116,462			$	67,360			$	183,822
Net (Loss)										(27,046	)
Net (Loss) Margin										(14.7	)%
Adjusted EBITDA		7,835				(504	)			7,331
Adjusted EBITDA Margin		6.7	%			(0.7	)%			4.0	%

	Nine Months Ended September 30, 2024
(in thousands)	Marketing Services				SaaS				Total
Revenue	$	398,389			$	239,171			$	637,560
Net (Loss)										(82,099	)
Net (Loss) Margin										(12.9	)%
Adjusted EBITDA		109,137				23,914				133,051
Adjusted EBITDA Margin		27.4	%			10.0	%			20.9	%

	Nine Months Ended September 30, 2023
(in thousands)	Marketing Services				SaaS				Total
Revenue	$	491,051			$	189,747			$	680,798
Net (Loss)										(1,754	)
Net (Loss) Margin										(0.3	)%
Adjusted EBITDA		129,717				5,522				135,239
Adjusted EBITDA Margin		26.4	%			2.9	%			19.9	%

Forward-Looking Statements

Certain statements contained herein are not historical facts, constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and involve a number of risks and uncertainties. Statements that include the words “may”, “will”, “could”, “should”, “would”, “believe”, “anticipate”, “forecast”, “estimate”, “expect”, “preliminary”, “intend”, “plan”, “target”, “project”, “outlook”, “future”, “forward”, “guidance” and similar statements of a future or forward-looking nature identify forward-looking statements. These statements are not guarantees of future performance. These forward-looking statements are based on our current expectations and beliefs concerning future developments and their potential effect on us. While management believes that these forward-looking statements are reasonable as and when made, there can be no assurance that future developments affecting us will be those that we anticipate. Accordingly, there are or will be important factors that could cause our actual results to differ materially from those indicated in these statements. We believe that these factors include, but are not limited to, the risks related to the following: the Company’s ability to maintain adequate liquidity to fund operations; the Company’s future operating and financial performance; the Company’s ability to consummate acquisitions, or, if consummated, to successfully integrate acquired businesses into the Company’s operations, the Company’s ability to recognize the benefits of acquisitions, or the failure of an acquired company to achieve its plans and objectives; limitations on our operating and strategic flexibility and the ability to operate our business, finance our capital needs or expand business strategies under the terms of our credit facilities; our ability to retain existing business and obtain and retain new business; general economic or business conditions affecting the markets we serve; declining use of print yellow page directories by consumers; our ability to collect trade receivables from clients to whom we extend credit; credit risk associated with our reliance on small and medium sized businesses as clients; our ability to attract and retain key managers; increased competition in our markets; our ability to obtain future financing due to changes in the lending markets or our financial position; our ability to maintain agreements with major Internet search and local media companies; reduced advertising spending and increased contract cancellations by our clients, which causes reduced revenue; and our ability to anticipate or respond effectively to changes in technology and consumer preferences as well as the risks and uncertainties set forth in the Company's most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission. All subsequent written and oral forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by such cautionary statements.

If one or more events related to these or other risks or uncertainties materialize, or if our underlying assumptions prove to be incorrect, actual results may differ materially from what we anticipate. For these reasons, we caution you against relying on forward-looking statements. All forward-looking statements included in this press release are expressly qualified in their entirety by the foregoing cautionary statements. These forward-looking statements speak only as of the date hereof and, other than as required by law, we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

About Thryv

Thryv Holdings, Inc. (NASDAQ:THRY) is the provider of the leading do-it-all small business software platform that empowers small businesses to modernize how they work. It offers small business owners everything they need to communicate effectively, manage their day-to-day operations, and grow — all in one place — giving up to 20 hours back in their week. Thryv's customizable platform features three centers: Thryv Command Center, a freemium central communications hub, Business Center^TM and Marketing Center^TM. Approximately 300,000 businesses globally use Thryv to connect with local customers and take care of everything they do, start to finish. For more information, visit thryv.com.

¹ Rule of 40 is defined as year-over-year revenue growth plus Adj. EBITDA Margin.

² Defined as Gross profit adjusted to exclude the impact of depreciation and amortization expense and stock-based compensation expense.

³ Seasoned Net Dollar Retention is defined as net dollar retention excluding clients acquired over the previous 12 months.

⁴ Defined as total client billings for a particular month divided by the number of clients that have one or more revenue-generating solutions in that same month.

⁵ These statements are forward-looking and actual results may materially differ. Refer to the “Forward-Looking Statements” section below for information on the factors that could cause our actual results to materially differ from these forward-looking statements.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241107017112/en/

Media Contact:

Julie Murphy

Thryv, Inc.

617.967.5426

julie.murphy@thryv.com

Investor Contact:

Cameron Lessard

Thryv, Inc.

214.773.7022

cameron.lessard@thryv.com

Source: Thryv

FAQ

What was Thryv's (THRY) SaaS revenue growth in Q3 2024?

Thryv's SaaS revenue grew 29% year-over-year to $87.1 million in Q3 2024.

How much was Thryv's (THRY) net loss in Q3 2024?

Thryv reported a net loss of $96.1 million in Q3 2024, which included an $83.1 million non-cash goodwill impairment charge.

What was Thryv's (THRY) total SaaS client count in Q3 2024?

Thryv's total SaaS clients increased 45% year-over-year to 96,000 in Q3 2024.

What was Thryv's (THRY) Seasoned Net Dollar Retention in Q3 2024?

Thryv's Seasoned Net Dollar Retention was 101% in Q3 2024, an increase of 900 basis points year-over-year.