Thryv (THRY) Q1 2025 earnings summary

Executive summary

• Q1 2025 SaaS revenue grew 50% year-over-year to $111.1M, now over 60% of total revenue, driven by the Keap acquisition and strong organic growth.

• Marketing Services revenue declined 56% year-over-year to $70.2M, contributing to a 22% drop in total revenue to $181.4M.

• Net loss was $9.6M versus net income of $8.4M in Q1 2024, reflecting the revenue shift and ongoing SaaS investment.

• Adjusted EBITDA was $20.9M (11.5% margin), down from $54.1M year-over-year, due to the revenue mix shift and integration costs.

• The company remains focused on SaaS expansion, product innovation, and client acquisition, with continued investment in AI-powered tools.

Financial highlights

• SaaS Adjusted EBITDA reached $10.8M (9.7% margin), up from $3.4M year-over-year; Marketing Services Adjusted EBITDA was $10.1M (14.4% margin), down from $50.7M.

• SaaS Adjusted Gross Margin improved to 73.3% from 68.4% year-over-year.

• Cash and cash equivalents were $11.0M at quarter-end, down from $16.3M at year-end 2024.

• Net cash used in operating activities was $10.5M, compared to $5.4M provided in the prior year quarter.

• Total debt outstanding was $299.0M, with a leverage ratio of 2.2x net debt to EBITDA.

Outlook and guidance

• Q2 2025 SaaS revenue guidance: $113.0M–$115.0M; SaaS Adjusted EBITDA: $18.5M–$19.5M.

• Full-year 2025 SaaS revenue expected at $460.5M–$471.0M; Adjusted EBITDA $67.0M–$71.0M (15% margin).

• Marketing Services revenue projected to decline sequentially through 2025, with full-year adjusted EBITDA guidance at $77.5M–$78.5M.

• Conservative guidance maintained due to macroeconomic uncertainty, despite no current signs of weakness.

• The company anticipates maintaining compliance with debt covenants and sufficient liquidity for the next 12 months.