Thryv (THRY) Q1 2025 earnings summary

Executive summary

• SaaS revenue became the majority of total revenue in Q1 2025, reaching over 61% due to strong organic growth and the Keap acquisition.

• Q1 2025 SaaS revenue grew 50% year-over-year to $111.1M, while Marketing Services revenue declined 56% to $70.2M.

• Total revenue fell 22.4% year-over-year to $181.4M, resulting in a net loss of $9.6M versus net income of $8.4M in Q1 2024.

• Subscriber base grew 59% year-over-year to 111,000 (including Keap), with ARPU at $335 per month.

• Record Seasoned Net Revenue Retention reached 103%, reflecting successful cross-sell and expansion strategies.

Financial highlights

• SaaS Adjusted EBITDA was $10.8M (9.7% margin), up 215% year-over-year; Marketing Services Adjusted EBITDA was $10.1M (14.4% margin), down 80% year-over-year.

• Consolidated Adjusted EBITDA was $20.9M (11.5% margin), down from $54.1M year-over-year.

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

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

• Net cash used in operating activities was $10.5M in Q1 2025.

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.

• Marketing Services revenue projected to decline sequentially through 2025, with full-year guidance at $310.0M–$314.0M.

• Guidance remains conservative due to macroeconomic uncertainty, not current business weakness.

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