Thryv (THRY) Q2 2024 earnings summary

Executive summary

• SaaS revenue grew 25% year-over-year to $77.8 million in Q2 2024, with subscribers up 52% to 85,000 and ARPU at $333.

• Consolidated revenue declined 10.9% year-over-year to $224.1 million, driven by a 22.6%–23% drop in Marketing Services revenue.

• Net income for Q2 2024 was $5.5 million, down from $16.0 million in Q2 2023, with net margin at 2.5%.

• SaaS Adjusted EBITDA rose to $10.2 million (13.1% margin), the highest as a public company.

• Thryv continues to expand its all-in-one SaaS platform for SMBs, leveraging AI and cross-sell opportunities.

Financial highlights

• SaaS Adjusted EBITDA was $10.2 million (13.1% margin); Marketing Services Adjusted EBITDA was $49.1 million (33.6% margin).

• Consolidated Adjusted EBITDA was $59.3 million (26.5% margin); consolidated gross profit was $148.6 million.

• SaaS Adjusted Gross Margin reached 69.7% in Q2 2024, up 460 basis points year-over-year.

• Free cash flow for Q2 2024 was $13.3 million, with net cash from operating activities at $22.2 million.

• ThryvPay total payment volume reached $80 million, up 34% year-over-year.

Outlook and guidance

• Full-year 2024 SaaS revenue guidance raised to $326–$329 million; SaaS Adjusted EBITDA guidance increased to $30–$32 million.

• Q3 2024 SaaS revenue expected at $82–$84 million; Q3 SaaS Adjusted EBITDA at $9–$10 million.

• Full-year 2024 Marketing Services revenue guided at $485–$492 million; Adjusted EBITDA at $128–$131 million.

• SaaS revenue projected to exceed 40% of consolidated revenue in 2024 and surpass 50% in 2025.

• Company anticipates lower print revenue in the second half of 2024.