Thryv (THRY) Q3 2024 earnings summary

Executive summary

• SaaS revenue grew 29.2% year-over-year to $87.1M in Q3 2024, driven by accelerated migration from Marketing Services, while Marketing Services revenue declined 20.3% to $92.8M, resulting in a 2.2% decrease in consolidated revenue to $179.9M.

• Net loss widened to $96.1M in Q3 2024, primarily due to an $83.1M non-cash goodwill impairment in Marketing Services.

• Adjusted EBITDA rose to $19.6M (margin 10.9%), up from $7.3M a year ago.

• Completed the $80M Keap acquisition in October 2024, funded by a $76M equity offering and $5.5M ABL draw, adding 15,000 customers and expanding SaaS capabilities.

• Strategic focus on upselling multi-center solutions, leveraging Keap’s partner ecosystem, and accelerating client migration to SaaS.

Financial highlights

• SaaS revenue reached $87.1M in Q3, up 29.2% year-over-year; SaaS adjusted gross margin improved to 72.2%.

• SaaS adjusted EBITDA was $10.3M (11.8% margin); SaaS subscriber base grew to 96,000, up 45% year-over-year, with ARPU at $307.

• Marketing Services revenue was $92.8M (down 20.3% YoY), with adjusted EBITDA of $9.3M (10% margin); billings declined 35% year-over-year.

• Consolidated adjusted EBITDA was $19.6M (10.9% margin); consolidated adjusted gross margin was 65%.

• Free cash flow for Q3 2024 was $27.5M, down from $37.0M in Q3 2023; net debt at quarter-end was $307M.

Outlook and guidance

• Q4 SaaS revenue expected at $90–$92M; full-year SaaS revenue guidance raised to $329.5–$331.5M.

• Q4 SaaS adjusted EBITDA expected at $9.5–$10.5M; full-year guidance raised to $33.5–$34.5M.

• Q4 Marketing Services revenue expected at $81–$83M; full-year guidance at $479–$481M.

• Keap expected to contribute $11–$12M in Q4 revenue, with de minimis EBITDA during integration.

• Management expects continued SaaS growth and further client migration from Marketing Services.