Q3 2024 Thryv Holdings Inc Earnings Call Transcript
Key Points
- Thryv Holdings Inc (THRY) reported a 29% year-over-year increase in SaaS revenue, reaching $87.1 million, which was above guidance.
- The company's SaaS adjusted gross margin improved significantly, reaching 72.2%, driven by high-margin SaaS offerings.
- Thryv Holdings Inc (THRY) achieved the Rule of 40, reflecting strong growth and expanding EBITDA margins.
- The acquisition of Keap added over 15,000 quality customers and is expected to generate $11 million to $12 million in revenue for the fourth quarter.
- The company's leverage ratio reduced to 1.66 times net debt to EBITDA, well below the covenant of 3x, indicating strong financial discipline.
- Marketing Services revenue declined by 35% year over year, impacted by the transition of clients to the SaaS platform.
- A non-cash impairment charge of $83.1 million was recognized due to the ongoing structural decline of the marketing services business.
- SaaS ARPU decreased from $333 to $307 quarter over quarter, due to introductory pricing for new customers.
- The company anticipates continued pressure on ARPU as it brings a substantial volume of customers onto the platform at lower price points.
- There is uncertainty regarding the timing of book publications in Marketing Services, which could impact EBITDA in the first quarter of 2025.
Thank you for standing by. My name is Kathleen, and I will be your conference operator today. At this time, I would like to welcome everyone to the Thryv third-quarter 2024 earnings call. (Operator Instructions) And now I would like to turn the call over to Cameron Lessard. Please go ahead.
Hello, and good day, everyone. Welcome to Thryv's third-quarter 2024 earnings conference call. Please keep in mind today is November 7, and the company released preliminary unaudited third quarter results on October 29 in conjunction with the Keap acquisition announcement. On the call today are Joe Walsh, Chairman and Chief Executive Officer; and Paul Rouse, Chief Financial Officer. A copy of our earnings press release and investor presentation can be found on our website at thryv.com or in the Investors section at investor.thryv.com.
Please acknowledge comments made on today's call and responses to your questions may contain forward-looking statements about the operations and future results of the company. These statements
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