Thryv Holdings, Inc. (THRY) Bundle
A Brief History of Thryv Holdings, Inc.
Thryv Holdings, Inc., a leading provider of software solutions for small to medium-sized businesses, has undergone significant transformations over the years, particularly in recent times. As of 2024, the company operates through two main business segments: Thryv Marketing Services and Thryv SaaS.
Financial Performance Overview
In the third quarter of 2024, Thryv reported total revenue of $179.9 million, a decrease of 2.2% compared to $183.8 million in the same period of 2023. This decline was primarily driven by a 20.3% drop in Thryv Marketing Services revenue, which fell from $116.5 million to $92.8 million, while Thryv SaaS revenue increased by 29.2%, from $67.4 million to $87.1 million.
| Financial Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Total Revenue | $179.9 million | $183.8 million | -2.2% |
| Thryv Marketing Services Revenue | $92.8 million | $116.5 million | -20.3% |
| Thryv SaaS Revenue | $87.1 million | $67.4 million | 29.2% |
Net Loss and Earnings Per Share
Thryv reported a net loss of $96.1 million for the third quarter of 2024, compared to a loss of $27.0 million in Q3 2023. The basic and diluted net loss per share for Q3 2024 was $(2.65), compared to $(0.78) for Q3 2023.
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Loss | $96.1 million | $27.0 million |
| Basic Net Loss Per Share | $(2.65) | $(0.78) |
| Diluted Net Loss Per Share | $(2.65) | $(0.78) |
Debt and Financing Activities
As of September 30, 2024, Thryv had total recorded debt outstanding of $307.8 million, which included $297.5 million under the New Term Loan and $21.9 million under the New ABL Facility. The company entered into a new Term Loan Credit Agreement on May 1, 2024, with a maturity date of May 1, 2029, and an interest rate of SOFR plus an applicable margin of 6.75%.
| Debt Type | Amount ($ million) | Maturity Date |
|---|---|---|
| New Term Loan | $297.5 million | May 1, 2029 |
| New ABL Facility | $21.9 million | Varies |
Stockholder Equity
As of September 30, 2024, Thryv's total stockholders' equity was reported at $94.5 million, with a total of 63,840,032 shares outstanding. This reflects a decrease in the accumulated deficit, which stood at $580.3 million.
| Equity Metric | Value ($ million) |
|---|---|
| Total Stockholders' Equity | $94.5 million |
| Accumulated Deficit | $(580.3 million) |
| Shares Outstanding | 63,840,032 |
Market Trends and Future Outlook
Thryv continues to adapt to changing market demands, particularly in the SaaS segment, where revenue growth has been notable. The company's strategic decision to shift clients from traditional marketing services to more cost-effective SaaS solutions is expected to bolster long-term growth.
A Who Owns Thryv Holdings, Inc. (THRY)
Major Shareholders
As of 2024, Thryv Holdings, Inc. (THRY) has several key shareholders, including institutional investors and insiders. The following table provides a breakdown of the major shareholders and their respective ownership percentages:
| Shareholder | Type | Shares Owned | Ownership Percentage |
|---|---|---|---|
| BlackRock, Inc. | Institutional Investor | 6,500,000 | 10.2% |
| The Vanguard Group, Inc. | Institutional Investor | 5,800,000 | 9.1% |
| Franklin Templeton Investments | Institutional Investor | 4,200,000 | 6.6% |
| Insider Ownership | Insiders | 2,500,000 | 3.9% |
| Other Institutional Investors | Various | 15,000,000 | 23.5% |
| Total Outstanding Shares | 63,840,032 | 100% |
Recent Changes in Ownership
In 2024, Thryv Holdings, Inc. saw significant changes in its ownership structure. The company completed a public offering, resulting in the issuance of approximately 5,715,000 shares of common stock, which generated proceeds of $76 million. This offering was part of the financing for the acquisition of Infusion Software, Inc. (Keap) for $80 million.
Stock Performance and Market Capitalization
As of September 30, 2024, Thryv Holdings, Inc. had a market capitalization of approximately $400 million. The stock has experienced fluctuations, with a high of $12.50 and a low of $6.75 over the past year.
Institutional Ownership Trends
Institutional ownership has been a significant aspect of Thryv's shareholder structure, with institutional investors holding approximately 60% of the outstanding shares. This trend indicates strong confidence from large financial entities in Thryv's strategic direction and operational performance.
Insider Transactions
Insider transactions have also impacted ownership dynamics. Recent data indicates that insiders have sold approximately 500,000 shares in the past year. This activity reflects both personal financial strategies and potential confidence in the company's ongoing performance and future initiatives.
Conclusion on Ownership Structure
The ownership structure of Thryv Holdings, Inc. as of 2024 highlights a mix of institutional and insider ownership, with institutional investors playing a crucial role. The company's recent capital raising efforts and market performance continue to influence shareholder dynamics.
Thryv Holdings, Inc. (THRY) Mission Statement
Mission Statement Overview
Thryv Holdings, Inc. is dedicated to empowering small and medium-sized businesses (SMBs) through innovative technology solutions. The company aims to simplify the management of business operations, enhance customer engagement, and drive growth by providing comprehensive software services.
Strategic Focus
As of 2024, Thryv's mission is centered around:
- Delivering integrated marketing solutions.
- Offering an all-in-one management platform for SMBs.
- Facilitating transition from traditional methods to cloud-based systems.
- Ensuring customer satisfaction through tailored service offerings.
Financial Performance Metrics
Thryv's financial performance is indicative of its mission-driven approach, showcasing growth in key areas:
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Revenue | $179.9 million | $183.8 million | -2.2% |
| Gross Profit | $112.0 million | $103.6 million | 8.3% |
| Operating Loss | ($88.6 million) | ($19.4 million) | +356.4% |
| Net Loss | ($96.1 million) | ($27.0 million) | +255.5% |
| Adjusted EBITDA | $19.6 million | $7.3 million | 168.5% |
Client Metrics
Thryv's client engagement metrics reflect its commitment to supporting SMBs:
| Client Type | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Marketing Services Clients | 251,000 | 335,000 | -25% |
| SaaS Clients | 96,000 | 66,000 | 45% |
| Total Clients | 295,000 | 364,000 | -19% |
Revenue Breakdown
The revenue generated from Thryv's services illustrates the effectiveness of its mission:
| Service Type | Q3 2024 Revenue | Q3 2023 Revenue | Change (%) |
|---|---|---|---|
| Thryv Marketing Services | $92.8 million | $116.5 million | -20.3% |
| Thryv SaaS | $87.1 million | $67.4 million | 29.2% |
Future Outlook
Thryv's mission is supported by strategic initiatives aimed at expanding its SaaS offerings and enhancing client retention. The company continues to adapt to market demands and focuses on providing robust solutions that meet the evolving needs of SMBs.
Conclusion
Thryv Holdings, Inc. remains committed to its mission of empowering SMBs through innovative solutions, as evidenced by its financial and operational metrics.
How Thryv Holdings, Inc. (THRY) Works
Business Segments
Thryv Holdings, Inc. operates primarily through two business segments: Thryv Marketing Services and Thryv SaaS.
Revenue Overview
For the three months ended September 30, 2024, Thryv reported total revenue of $179.9 million, a decrease of $4.0 million or 2.2% compared to $183.8 million in the same period of 2023. The breakdown of revenue by segment is as follows:
| Segment | Revenue (Q3 2024) | Revenue (Q3 2023) | Change ($) | Change (%) |
|---|---|---|---|---|
| Thryv Marketing Services | $92.8 million | $116.5 million | $(23.7) million | (20.3%) |
| Thryv SaaS | $87.1 million | $67.4 million | $19.7 million | 29.2% |
| Total Revenue | $179.9 million | $183.8 million | $(4.0) million | (2.2%) |
SaaS Growth and Strategy
The Thryv SaaS segment saw significant growth, increasing by $19.7 million or 29.2% for the three months ended September 30, 2024, driven by the strategic shift to accelerate conversion from digital marketing services to SaaS solutions. As of September 30, 2024, SaaS clients increased by 30,000, or 45%, compared to the previous year.
Cost of Services
The cost of services for the three months ended September 30, 2024 was $67.9 million, a decrease of $12.3 million or 15.3% from $80.2 million in Q3 2023. This reduction was achieved through strategic cost-saving initiatives, including:
- Reduction in printing and digital fulfillment costs by $3.6 million
- Reduction in contract services by $2.5 million
- Decrease in employee-related expenses by $2.3 million
- Decrease in software expenses by $1.3 million
Gross Profit and Margin
Gross profit for the three months ended September 30, 2024, was $112.0 million, resulting in a gross margin of 62.3%, compared to $103.6 million and 56.4% in Q3 2023. The increase in gross margin reflects the higher sales of SaaS solutions, which have a higher profit margin.
Operating Expenses
Operating expenses totaled $200.6 million for the three months ended September 30, 2024, compared to $123.0 million in the previous year, largely due to impairment charges of $83.1 million recognized in Q3 2024.
| Operating Expense Type | Q3 2024 ($ million) | Q3 2023 ($ million) |
|---|---|---|
| Sales and Marketing | $66.5 million | $74.8 million |
| General and Administrative | $51.0 million | $48.3 million |
| Impairment Charges | $83.1 million | $0 million |
| Total Operating Expenses | $200.6 million | $123.0 million |
Net Loss
The net loss for the three months ended September 30, 2024, was $96.1 million, compared to a net loss of $27.0 million in Q3 2023. This reflects the impact of the impairment charges and the overall decrease in revenue.
Cash Flows
For the nine months ended September 30, 2024, Thryv reported cash flows from operating activities of $63.6 million, a decrease from $103.6 million in the same period of 2023. The company’s cash and cash equivalents decreased to $12.5 million as of September 30, 2024, compared to $18.2 million at year-end 2023.
Client Metrics
As of September 30, 2024, total clients decreased by 69,000, or 19%, year-over-year, attributed to the decline in print media and increasing competition in the digital space. However, average revenue per user (ARPU) for SaaS decreased by 16% to $307 compared to $365 in Q3 2023.
Recent Acquisition
On October 31, 2024, Thryv acquired Infusion Software, Inc. (Keap) for $80.0 million in cash, aiming to enhance its SaaS offerings further.
Thryv’s strategic focus remains on expanding its SaaS platform to small and medium-sized businesses (SMBs), which increasingly demand integrated technology solutions to optimize operations and enhance customer engagement.
How Thryv Holdings, Inc. (THRY) Makes Money
Revenue Streams
Thryv Holdings, Inc. generates revenue through two primary segments: Thryv Marketing Services and Thryv SaaS.
| Segment | Revenue (Q3 2024) | Revenue (Q3 2023) | Change ($) | Change (%) |
|---|---|---|---|---|
| Thryv Marketing Services | $92,797,000 | $116,462,000 | $(23,665,000) | (20.3%) |
| Thryv SaaS | $87,055,000 | $67,360,000 | $19,695,000 | 29.2% |
| Total Revenue | $179,852,000 | $183,822,000 | $(3,970,000) | (2.2%) |
For the nine months ended September 30, 2024, the revenue comparison is as follows:
| Segment | Revenue (9M 2024) | Revenue (9M 2023) | Change ($) | Change (%) |
|---|---|---|---|---|
| Thryv Marketing Services | $398,389,000 | $491,051,000 | $(92,662,000) | (18.9%) |
| Thryv SaaS | $239,171,000 | $189,747,000 | $49,424,000 | 26.0% |
| Total Revenue | $637,560,000 | $680,798,000 | $(43,238,000) | (6.4%) |
Thryv Marketing Services
The Thryv Marketing Services segment includes both print and digital marketing solutions, contributing significantly to the overall revenue. Key components include:
- Print revenue: Increased by $22 million, or 98.8%, in Q3 2024 due to publication timing.
- Digital revenue: Decreased by $45.6 million, or 48.4%, in Q3 2024, attributed to client migration to SaaS solutions and competition from larger digital media companies.
Thryv SaaS Revenue
Thryv's SaaS segment includes its flagship all-in-one small business management platform, Thryv®. The increase in SaaS revenue is driven by:
- Increased demand as small-to-medium businesses (SMBs) shift from manual processes to cloud-based solutions.
- Strategic focus on higher-value clients and enhanced onboarding strategies.
Operating Expenses
Operating expenses for the three months ended September 30, 2024, are broken down as follows:
| Expense Type | Amount (Q3 2024) | Amount (Q3 2023) | Change ($) | Change (%) |
|---|---|---|---|---|
| Sales and Marketing | $66,484,000 | $74,755,000 | $(8,271,000) | (11.1%) |
| General and Administrative | $50,972,000 | $48,267,000 | $2,705,000 | 5.6% |
| Total Operating Expenses | $200,550,000 | $123,022,000 | $(77,528,000) | 63.0% |
Gross Profit and Margin
The gross profit figures for the three months ended September 30, 2024, are as follows:
| Metric | Amount (Q3 2024) | Amount (Q3 2023) |
|---|---|---|
| Gross Profit | $111,981,000 | $103,644,000 |
| Gross Margin | 62.3% | 56.4% |
Net Loss
Thryv Holdings reported a net loss for the three months ended September 30, 2024:
| Metric | Amount (Q3 2024) | Amount (Q3 2023) |
|---|---|---|
| Net Loss | $(82,099,000) | $(1,754,000) |
Adjusted EBITDA
Adjusted EBITDA for the three months ended September 30, 2024:
| Metric | Amount (Q3 2024) | Amount (Q3 2023) |
|---|---|---|
| Adjusted EBITDA | $19,623,000 | $7,331,000 |
Thryv Holdings continues to adapt to market changes, focusing on SaaS solutions and managing operational costs effectively while navigating the challenges in the marketing services landscape.
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Resources:
- Thryv Holdings, Inc. (THRY) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Thryv Holdings, Inc. (THRY)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Thryv Holdings, Inc. (THRY)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.