- Thryv Holdings, Inc. (THRY, Financial) reported a 50% year-over-year increase in SaaS revenue for Q1 2025.
- SaaS revenue makes up over 60% of Thryv's total revenue as the company continues its strategic transformation.
- Consolidated total revenue decreased by 22% year-over-year, affected by a significant drop in marketing services revenue.
Thryv Holdings, Inc. (THRY), a top provider of marketing and sales software for small businesses, has witnessed a substantial 50% year-over-year growth in its SaaS revenue for the first quarter of 2025. This increase highlights Thryv's strategic shift towards becoming a leading software solutions provider for small and medium-sized businesses.
In Q1 2025, Thryv's SaaS revenue reached $111.1 million, with revenue excluding the Keap acquisition up by 24% at $92.2 million. The company has strategically focused on strengthening its subscriber base, enhancing relationships with existing customers, and expanding its average revenue per user (ARPU), which stands at $335 per month.
Despite the impressive SaaS performance, Thryv's total consolidated revenue saw a 22% decrease, coming in at $181.4 million. This decline was primarily due to a 56% year-over-year reduction in marketing services revenue, which recorded $70.2 million for the quarter.
Thryv's seasoned net revenue retention was notably high at 103%, reflecting successful upselling and cross-selling efforts. The company's consolidated adjusted EBITDA was $20.9 million, indicating an EBITDA margin of 11.5%, while the SaaS adjusted EBITDA was reported at $10.8 million, showcasing a 9.7% margin.
Thryv's gross profit for the quarter was $119.3 million, with a SaaS gross margin of 70.9%. The company's robust performance in SaaS is continuing to drive its strategic transformation and anticipated future growth, with the outlook for Q2 2025 expecting SaaS revenue between $113 million and $115 million.
