Q4 2024 Thryv Holdings Inc Earnings Call Transcript
Key Points
- Thryv Holdings Inc (THRY) reported a strong year-over-year revenue growth of 41% for its SaaS business in the fourth quarter.
- The company achieved a significant milestone with SaaS revenue now accounting for over 50% of total revenue.
- SaaS adjusted gross margin increased to 76% in the fourth quarter, demonstrating improved profitability.
- The acquisition of Keap contributed positively, with $13.4 million in revenue for November and December, surpassing expectations.
- Thryv Holdings Inc (THRY) achieved the Rule of 40 milestone for the second consecutive quarter, indicating a healthy balance of growth and profitability.
- The company is facing challenges with the integration of Keap, which may impact short-term performance.
- Marketing services revenue declined by 40% year-over-year in the fourth quarter, reflecting the strategic shift away from this segment.
- There is a temporary increase in net leverage expected in the first two quarters of 2025 due to pre-payment of vendor contracts and other expenses.
- The transition to a fully SaaS-focused model involves decommissioning legacy systems, which could pose operational risks.
- Thryv Holdings Inc (THRY) anticipates a decline in marketing services billings as it exits this business by 2028, impacting short-term revenue.
Thank you for standing by. My name is Jeannie, and I will be your conference operator today. At this time, I would like to welcome everyone to the Thryv fourth quarter and full year 2024 earnings call.
(Operator Instructions) Thank you. I would now like to turn the call over to Cameron Lessard, Head of IR. Please go ahead.
Good morning and thank you for joining us for Thryv's fourth quarter earnings conference call. With me today are Joe Walsh, Chairman and Chief Executive Officer, and Paul Rouse, Chief Financial Officer. During this call, we will make forward-looking statements that are subject to various risks and uncertainties. Actual results may differ materially from these statements. A discussion of these risks and uncertainties are included in our earnings release in SEC filings.
Today's presentation will also include non-GAAP financial measures which should be considered in addition to, but not as a substitute for our GAAP results. Reconciliation of these measures can be found
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