Thryv Holdings, Inc. (THRY): Business Model Canvas [11-2024 Updated]

In the ever-evolving landscape of small to medium-sized business (SMB) solutions, Thryv Holdings, Inc. (THRY) stands out with its innovative SaaS platform designed to streamline operations and enhance customer engagement. This blog post delves into the Business Model Canvas of Thryv, exploring its key partnerships, activities, and value propositions that collectively empower SMBs to thrive in a digital-first world. Discover how Thryv's strategic approach not only drives revenue but also fosters lasting relationships with its diverse customer segments.

Thryv Holdings, Inc. (THRY) - Business Model: Key Partnerships

Collaboration with digital marketing platforms

Thryv Holdings has established key partnerships with various digital marketing platforms to enhance its service offerings. These collaborations enable Thryv to integrate advanced marketing technologies into its SaaS solutions, ultimately benefiting its small-to-medium business (SMB) clients. The company serves approximately 300,000 SMB clients globally, providing them with tools to generate leads and manage customer relationships.

Strategic acquisitions (e.g., Yellow Holdings, Keap)

In 2023, Thryv acquired Yellow Holdings Limited, a New Zealand-based marketing services company, for $8.9 million in cash. This acquisition aimed to expand Thryv's footprint in the marketing services sector and enhance its offerings. Furthermore, on October 31, 2024, Thryv acquired Infusion Software, Inc. (Keap) for $80 million in cash. Keap operates a SaaS email marketing and sales platform, which is expected to complement Thryv's existing solutions and enhance its customer relationship management capabilities.

Partnerships with local businesses and franchises

Thryv actively collaborates with local businesses and franchises, providing them with tailored marketing solutions. This includes a wide array of services, from print advertising to digital marketing strategies. The Marketing Services segment generated $92.8 million in revenue for the three months ended September 30, 2024, down from $116.5 million in the same period in 2023. At the same time, its SaaS segment reported revenue of $87.1 million for the same quarter, an increase from $67.4 million year-over-year. These partnerships not only allow Thryv to support local economies but also help them capture a larger market share within the SMB sector.

Partnership Type	Company/Entity	Year Established	Financial Impact
Acquisition	Yellow Holdings	2023	$8.9 million
Acquisition	Keap	2024	$80 million
Collaboration	Various Digital Platforms	Ongoing	Enhanced service offerings for SMBs
Local Business Partnerships	Local SMBs and Franchises	Ongoing	$92.8 million (Q3 2024)

Thryv Holdings, Inc. (THRY) - Business Model: Key Activities

Development and enhancement of SaaS solutions

Thryv Holdings has experienced a significant increase in its Software as a Service (SaaS) revenue, which grew by $49.4 million, or 26.0%, for the nine months ended September 30, 2024, compared to the same period in 2023. This growth is attributed to the company's strategic shift to accelerate client conversions from its digital Marketing Services solutions to its SaaS offerings.

As of September 30, 2024, Thryv's SaaS segment generated $239.2 million in revenue for the nine months, up from $189.7 million in the prior year. The Thryv platform includes features such as Command Center, Business Center, and Marketing Center, which are designed to centralize operations for small and medium-sized businesses (SMBs).

Marketing and sales efforts targeting SMBs

Thryv's focus on marketing and sales has led to a decrease in sales and marketing expenses by $24.8 million, or 10.9%, for the nine months ended September 30, 2024, compared to the same period in 2023. The overall revenue from Thryv Marketing Services for the nine months was $398.4 million, down from $491.1 million, a decrease of 18.9%. The company is targeting higher-value clients, resulting in a more refined go-to-market strategy.

The average revenue per user (ARPU) for SaaS clients decreased by $58, or 16%, during the three months ended September 30, 2024 compared to the same period in 2023. This decline reflects the company's pricing strategy during the conversion from Marketing Services to SaaS.

Customer support and onboarding services

Thryv has emphasized customer support and onboarding to enhance user experience and retention. The company reported a gross profit of $414.2 million for the nine months ended September 30, 2024, which represents a gross margin of 65.0%. The cost of services decreased by $38.9 million, or 14.8%, during the same period, indicating effective cost management alongside service delivery.

As of September 30, 2024, the number of SaaS clients increased by 30,000, or 45%, compared to the previous year. This growth in client base is a direct result of improved onboarding practices and customer support initiatives that facilitate smoother transitions to the Thryv platform.

Key Metrics	Q3 2024	Q3 2023	Change
SaaS Revenue (in millions)	$87.1	$67.4	$19.7 (29.2%)
Marketing Services Revenue (in millions)	$92.8	$116.5	($23.7) (-20.3%)
Total Revenue (in millions)	$179.9	$183.8	($3.9) (-2.2%)
Gross Profit (in millions)	$111.9	$103.6	$8.3 (8.0%)
Sales & Marketing Expense (in millions)	$66.5	$74.8	($8.3) (-11.1%)

In summary, Thryv Holdings, Inc. continues to refine its key activities through enhanced SaaS offerings, targeted marketing strategies for SMBs, and focused customer support, driving both revenue growth and operational efficiency.

Thryv Holdings, Inc. (THRY) - Business Model: Key Resources

Thryv platform for business management

The Thryv platform serves as the cornerstone of the company's business management solutions, catering primarily to small and medium-sized businesses (SMBs). The platform integrates various functionalities including customer relationship management, appointment scheduling, invoicing, and marketing automation. For the nine months ended September 30, 2024, Thryv SaaS revenue reached $239.2 million, reflecting a 26.0% increase compared to $189.7 million in the same period in 2023.

Key components of the Thryv platform include:

• Command Center: Centralizes communication through email, social media, and VoIP.
• Business Center: Streamlines daily operations with CRM and appointment management.
• Marketing Center: Provides AI-driven analytics for effective marketing strategies.
• ThryvPay: Offers integrated payment solutions for service-oriented businesses.
• Add-Ons: Features additional tools for SEO, website development, and lead generation.

Experienced workforce skilled in SaaS and marketing

Thryv Holdings boasts a workforce with extensive expertise in Software as a Service (SaaS) and digital marketing. This skilled team is crucial for the development, sales, and support of the Thryv platform. As of September 30, 2024, the company reported total operating expenses of $440.3 million, which includes significant investment in sales and marketing to drive platform adoption.

Employee-related costs, including salaries and stock-based compensation, accounted for a substantial part of the operational budget, emphasizing the importance of human capital in executing the company’s strategies effectively. The sales and marketing expenses alone were $201.98 million for the nine months ending September 30, 2024.

Financial resources from recent capital raises and loans

In 2024, Thryv Holdings has successfully raised capital through a combination of equity offerings and debt financing. Notably, the company closed an underwritten public offering of 5,715,000 shares of common stock, generating approximately $76.0 million in proceeds. Additionally, the company secured a new term loan with an aggregate principal amount of $350.0 million.

As of September 30, 2024, Thryv reported total assets of $654.8 million and total liabilities of $426.2 million, reflecting a solid balance sheet that supports ongoing operational and strategic initiatives.

Resource Type	Description	Financial Impact
Thryv Platform	All-in-one business management solution for SMBs	SaaS revenue: $239.2 million (26.0% increase)
Workforce	Experienced team in SaaS and digital marketing	Operating expenses: $440.3 million (includes $201.98 million in sales and marketing)
Financial Resources	Capital raised through equity and debt	Total assets: $654.8 million; Total liabilities: $426.2 million

Thryv Holdings, Inc. (THRY) - Business Model: Value Propositions

Comprehensive SaaS solutions for SMBs

Thryv Holdings, Inc. offers a suite of comprehensive Software as a Service (SaaS) solutions specifically designed for small and medium-sized businesses (SMBs). For the nine months ended September 30, 2024, Thryv's SaaS revenue reached $239.2 million, marking a 26.0% increase from $189.7 million in the same period of 2023 . This growth is attributed to a strategic shift towards cloud-based solutions, enabling SMBs to streamline operations and enhance productivity.

The flagship product, the Thryv platform, integrates various functionalities including customer relationship management, appointment scheduling, and financial management, thus providing a centralized solution for business operations.

Integrated marketing services combining print and digital

Thryv’s marketing services revenue totaled $398.4 million for the nine months ended September 30, 2024, down from $491.1 million in the prior year, reflecting an 18.9% decline . Despite this decrease, the print segment saw a significant uptick, with print revenue increasing by $25.4 million, or 13.6%, due to publication timing variations .

Thryv's marketing services encompass both traditional print advertising and modern digital marketing strategies, allowing SMBs to reach their target audiences effectively across multiple channels. However, digital marketing revenue decreased by 48.4% in Q3 2024 compared to the previous year, highlighting a shift in client preferences towards the SaaS offerings.

Enhanced customer engagement tools for business growth

Thryv provides enhanced customer engagement tools designed to facilitate business growth. The Thryv Command Center allows SMBs to manage customer interactions through a single platform, integrating email, social media, and telephony . The platform's ability to streamline communications significantly improves customer engagement and retention.

For the three months ending September 30, 2024, Thryv's SaaS revenue surged by 29.2%, reaching $87.1 million, compared to $67.4 million in the prior year. This growth is indicative of the increasing demand for integrated customer engagement solutions as businesses seek to enhance their service delivery and customer satisfaction.

Financial Metric	Q3 2024	Q3 2023	Change (%)
SaaS Revenue	$87.1 million	$67.4 million	29.2%
Marketing Services Revenue	$92.8 million	$116.5 million	-20.3%
Print Revenue	$44.2 million	$22.2 million	98.8%
Digital Revenue	$48.6 million	$94.2 million	-48.4%

Thryv's strategy reflects a strong commitment to providing valuable tools that address the evolving needs of SMBs, facilitating their growth through integrated solutions that enhance customer engagement and operational efficiency.

Thryv Holdings, Inc. (THRY) - Business Model: Customer Relationships

Focus on building long-term relationships with SMBs

Thryv Holdings, Inc. emphasizes establishing long-term relationships with small to medium-sized businesses (SMBs). As of September 30, 2024, Thryv's SaaS client base increased by 30,000, or 45%, compared to the previous year, reflecting a strategic focus on acquiring higher value clients. The overall client count, however, decreased by 69,000, or 19%, mainly due to the decline in the print media business and increased competition in the digital space.

Personalized customer support and onboarding experiences

Thryv provides personalized customer support and onboarding experiences to enhance customer satisfaction and retention. The company's flagship product, the Thryv platform, offers a comprehensive suite of tools designed for SMBs, including customer relationship management, appointment scheduling, and invoice management. The average revenue per user (ARPU) for SaaS clients was reported at $307 for the three months ended September 30, 2024, down from $365 in the same period the previous year, indicating a need for continuous improvement in customer engagement strategies.

Engagement through regular updates and feature enhancements

Thryv engages its customers through regular updates and feature enhancements, which are critical for maintaining long-term relationships. The company reported a SaaS revenue increase of $49.4 million, or 26%, for the nine months ending September 30, 2024, driven by the demand for enhanced functionalities and integrations. The company has also reduced costs associated with service delivery, with cost of services decreasing by $38.9 million, or 14.8%, reflecting operational efficiencies that can be reinvested into customer services.

Metric	Q3 2024	Q3 2023	Change
SaaS Clients	30,000 increase	—	45% increase
Total Clients	69,000 decrease	—	19% decrease
ARPU (SaaS)	$307	$365	$58 decrease
SaaS Revenue	$239.2 million	$189.7 million	$49.4 million increase
Cost of Services	$223.4 million	$262.3 million	$38.9 million decrease

Thryv Holdings, Inc. (THRY) - Business Model: Channels

Direct sales through sales teams

Thryv Holdings employs a direct sales force to engage with potential clients, particularly small and medium-sized businesses (SMBs). For the nine months ended September 30, 2024, Thryv reported a total revenue of $637.6 million, of which a significant portion is attributed to direct sales efforts. The sales and marketing expenses for the same period amounted to $201.98 million, which represents 31.7% of total revenue.

Online marketing and digital advertising

In 2024, Thryv has increasingly focused on online marketing and digital advertising as key channels for customer acquisition. The company has seen a marked decline in digital revenue, which decreased by $118 million, or 38.7%, in the nine months ended September 30, 2024, compared to the previous year. This decline is attributed to the strategic shift toward SaaS solutions and increased competition from other digital platforms.

Channel	Revenue (2024)	Revenue Change (%)	Marketing Expenses
Digital Marketing Services	$186.95 million	-38.7%	$66.48 million
Print Services	$211.44 million	+13.6%	N/A
SaaS Solutions	$239.17 million	+26.0%	N/A

Partnerships with local marketing agencies

Thryv has established partnerships with local marketing agencies to expand its reach and enhance service offerings. These partnerships facilitate access to a broader client base, particularly in local markets. As of September 30, 2024, Thryv's overall marketing services revenue totaled $398.39 million, representing a significant portion of its business model, despite a year-over-year decline.

Thryv Holdings, Inc. (THRY) - Business Model: Customer Segments

Small to medium-sized businesses (SMBs)

Thryv Holdings primarily targets small to medium-sized businesses (SMBs), which represent a significant portion of its customer base. As of September 30, 2024, Thryv serves approximately 300,000 SMB clients globally. The demand for integrated technology solutions among SMBs continues to grow, particularly as they transition away from manual processes towards cloud-based platforms for enhanced operational efficiency. In the nine months ending September 30, 2024, Thryv's SaaS segment generated $239.2 million in revenue, reflecting a 26.0% increase compared to the prior year. This growth is indicative of the increasing reliance of SMBs on SaaS solutions for business management and customer relationship management.

Local independent businesses and franchises

Thryv also focuses on local independent businesses and franchises, providing tailored solutions to meet their unique needs. The company's Marketing Services segment generated $398.4 million in revenue for the nine months ended September 30, 2024, although this represents an 18.9% decrease from the previous year. Thryv's services for local businesses include print and digital marketing solutions, which are crucial for attracting customers in competitive local markets. The acquisition of Yellow Holdings in April 2023 further expanded Thryv's reach in this segment, allowing it to serve an additional 16,000 clients.

Clients transitioning from traditional marketing to digital solutions

Thryv is actively engaging clients who are transitioning from traditional marketing methods to digital solutions. The company has strategically accelerated the conversion of clients from its digital Marketing Services to its SaaS offerings, which has resulted in a 45% increase in SaaS clients, totaling 96,000 as of September 30, 2024. This shift is part of Thryv's broader strategy to adapt to changing market dynamics, where traditional print services are declining due to increased competition from digital platforms. The monthly average revenue per unit (ARPU) for SaaS clients was reported at $307, indicating a robust revenue stream from these transitioning clients. Additionally, the digital revenue for the period decreased by 38.7%, primarily due to clients moving towards the more integrated SaaS solutions offered by Thryv.

Customer Segment	Number of Clients	Revenue (Nine Months Ended Sept 30, 2024)	Year-over-Year Change
Small to Medium-Sized Businesses (SMBs)	300,000	$239.2 million	+26.0%
Local Independent Businesses and Franchises	~81,000 (Thryv Australia)	$398.4 million	-18.9%
Clients Transitioning to Digital Solutions	96,000	N/A	+45%

Thryv Holdings, Inc. (THRY) - Business Model: Cost Structure

Operational costs for SaaS development and maintenance

The operational costs for Thryv's SaaS development and maintenance include various components such as personnel-related expenses, third-party services, and technology infrastructure. For the nine months ended September 30, 2024, the total cost of services was reported at $223.4 million, reflecting a decrease of $38.9 million, or 14.8%, compared to the same period in 2023. This reduction was primarily driven by strategic cost-saving initiatives, including:

• Reduction in printing, distribution, and digital fulfillment support costs by $15.8 million.
• Contract services decreased by $8.5 million.
• Employee-related expenses reduced by $4.7 million.
• Software expenses decreased by $3.5 million.
• Depreciation and amortization expense decreased by $5.1 million.

Marketing and sales expenditures

Marketing and sales expenditures for Thryv are significant components of the overall cost structure. For the three months ended September 30, 2024, sales and marketing expenses totaled $66.5 million, a decrease of $8.3 million, or 11.1%, compared to the same quarter in 2023. The breakdown of these expenditures includes:

• Employee-related costs decreased by $1.8 million.
• Contract services expense decreased by $1.8 million.
• Advertising expenses reduced by $1.7 million.
• Stock-based compensation expense decreased by $0.8 million.
• Sales commissions decreased by $0.7 million.

For the nine months ended September 30, 2024, total sales and marketing expenses were $201.98 million.

Costs associated with acquisitions and integrations

Thryv's recent acquisition of Infusion Software, Inc. (Keap) was completed for $80 million in cash. The acquisition was financed through a public offering that generated approximately $76 million in proceeds and a $5.5 million borrowing under a new asset-based lending facility. Additionally, transaction costs associated with the Keap acquisition amounted to $1.7 million for the three months ended September 30, 2024. The total impairment charges recognized in relation to the acquisition for the nine months ended September 30, 2024, reached $83.1 million.

Cost Component	Q3 2024 (in millions)	Q3 2023 (in millions)	Change (in millions)
Cost of Services	67.87	80.18	-12.31
Sales and Marketing Expenses	66.48	74.76	-8.28
General and Administrative Expenses	50.97	48.27	+2.70
Total Operating Expenses	200.55	123.02	+77.53
Impairment Charges	83.09	0.00	+83.09

Thryv Holdings, Inc. (THRY) - Business Model: Revenue Streams

Subscription fees from SaaS offerings

Thryv Holdings generates significant revenue from its Software as a Service (SaaS) offerings. For the nine months ended September 30, 2024, Thryv SaaS revenue amounted to $239.2 million, representing a 26.0% increase compared to $189.7 million for the same period in 2023. The growth is attributed to a strategic shift towards SaaS solutions as small to medium-sized businesses increasingly seek integrated technology to streamline operations.

Revenue from print and digital marketing services

Thryv's Marketing Services segment, encompassing both print and digital marketing solutions, generated $398.4 million in revenue for the nine months ended September 30, 2024, down from $491.1 million in the same period of 2023. This decline of 18.9% was primarily driven by a decrease in digital revenue, which dropped by $118 million or 38.7% year-over-year. However, print revenue saw a notable increase of 13.6%, totaling $211.4 million for the nine months.

Revenue Source	2024 Revenue (in millions)	2023 Revenue (in millions)	Change (%)
Thryv SaaS	$239.2	$189.7	26.0%
Thryv Marketing Services	$398.4	$491.1	-18.9%
Print Revenue	$211.4	$186.1	13.6%
Digital Revenue	$186.9	$305.0	-38.7%

Additional fees from premium features and add-ons

Thryv also earns revenue from additional fees associated with premium features and add-ons within its SaaS platform. These offerings include various tools designed to enhance user experience and engagement, such as AI-assisted website development and SEO tools. The company's strategy focuses on increasing client engagement through these add-ons, which contribute to overall revenue growth.

As of September 30, 2024, Thryv reported a monthly average revenue per unit (ARPU) for its SaaS offerings of $333, a decrease from $373 in the previous year, reflecting a strategic pricing adjustment during the transition of clients from digital marketing services to SaaS solutions.

Updated on 16 Nov 2024

Resources:

1. 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.
2. 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.