Thryv (THRY) Q4 2024 earnings summary

Executive summary

• Q4 2024 SaaS revenue grew 41% year-over-year to $104.3M, surpassing guidance and now representing the majority of total revenue.

• SaaS subscriber base grew 73% year-over-year to 114,000, driven by the Keap acquisition and client conversions.

• Keap acquisition integrated in Q4, expanding SaaS revenue, ARPU, and subscriber base, and contributing to synergies.

• Marketing Services revenue declined 49% year-over-year in Q4 2024, reflecting a strategic shift toward SaaS.

• Consolidated net income for Q4 was $7.9M, compared to a net loss of $257.5M in Q4 2023.

Financial highlights

• Q4 2024 consolidated revenue was $186.6M, down 21% year-over-year, as SaaS growth was offset by a 49% decline in Marketing Services.

• Full-year 2024 SaaS revenue was $343.5M, up 30% year-over-year.

• Q4 SaaS adjusted gross margin was 75.9%, up 620 bps year-over-year; Q4 SaaS adjusted EBITDA margin reached 16.6%.

• Full-year consolidated adjusted EBITDA was $162.4M (19.7% margin); SaaS adjusted EBITDA was $41.2M (12.0% margin).

• Free cash flow for 2024 was $56.2M, down from $114.8M in 2023.

Outlook and guidance

• 2025 SaaS revenue expected at $464.5M–$474M, with Keap contributing $75M–$78M.

• 2025 SaaS adjusted EBITDA guidance: $69.5M–$71M (15% margin).

• Marketing Services revenue for 2025 expected at $310M–$314M; adjusted EBITDA: $77.5M–$78.5M.

• Q1 2025 SaaS adjusted EBITDA to be impacted by $2–3M due to cost allocation shifts from lower print volumes.

• Majority of EBITDA expected from SaaS in 2026; return to overall top-line growth anticipated in 2027.