Q1 2026 Thryv Holdings Inc Earnings Call Transcript
Key Points
- SaaS revenue of $117 million exceeded expectations, indicating strong performance in the software segment.
- Marketing Center grew by approximately 30% year over year, showcasing its effectiveness in driving high-quality leads and customer relationships.
- The company has successfully transitioned to a 70% SaaS revenue model, reflecting a strategic shift from its previous marketing services focus.
- AI-powered capabilities have been well-received, with strong early adoption of features like AI image generation and AI lead scoring.
- The upmarket strategy is gaining traction, with ARPU increasing by 13% year over year, driven by larger, more complex clients.
- Adjusted gross margin was diluted due to the strategic upgrade of low-margin customers, impacting adjusted EBITDA.
- Marketing services billings declined by 33% year over year, reflecting the ongoing shift away from legacy digital marketing services.
- The company is still managing the transition from legacy systems, which introduces noise in customer metrics and retention figures.
- The gross number of customers is affected by the transition, as some legacy customers are not ideal for the SaaS model.
- Seasoned NRR of 93% indicates natural attrition among smaller, lower-spend clients, which could impact overall revenue stability.
Ladies and gentlemen, thank you for joining us and welcome to the Thrive First Quarter 2026 Earnings Call. After today's prepared remarks, we will host a question-and-answer session. If you would like to ask a question, please raise your hand. If you have dialed into today's call, please press *9 to raise your hand and *6 to unmute. I will now hand the conference over to Cameron Lessard, Senior Vice President, Corporate Development and Strategy. Cameron, please go ahead.
Good morning and thank you for joining us for Thryv Holdings first quarter 2026 earnings conference call. With me today are Joe Walsh, Chairman and Chief Executive Officer and Paul Rouse, Chief Financial Officer. Before we begin, I'd like to remind you that today's call may contain forward-looking statements, including statements about our business outlook and strategy. Future financial results, growth prospects and any other matters that are not historical facts. These statements are subject to risks and
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