Thryv (THRY) The 44th Annual William Blair Growth Stock Conference summary

Business transformation and customer base

• Transitioned from a legacy Yellow Pages business to a SaaS platform targeting very small businesses, offering an all-in-one operating system for daily operations, billing, and reputation management.

• Leveraged longstanding customer relationships and an experienced sales force to accelerate SaaS adoption, benefiting from deep trust and automatic conversations.

• SaaS now profitable with high gross margins, expected to surpass 50% of revenue next year, marking a majority SaaS business.

• Sales incentives and compensation are increasingly SaaS-focused, with legacy products being deprecated and customers migrated to new platforms.

• Generational shifts in small business leadership are driving digital adoption, with younger leaders pushing for cloud-based solutions.

Product strategy and platform expansion

• Built a modular platform with multiple centers (Business, Marketing, Command), enabling customers to enter through various products and expand usage over time.

• Product velocity has increased, with new centers planned for release, supporting both cross-sell and product-led growth strategies.

• ARPU expected to rise from $4,000 to $7,000 over 3-5 years, driven by multi-product adoption, though offset by lower-priced freemium users.

• Command Center, a free product, is driving top-of-funnel growth, with in-app upsell mechanisms to convert users to paid features.

• Early results for Command Center are promising, with V2 launch imminent and expectations for significant product-led growth.

Market dynamics and go-to-market approach

• Customer base is resilient to macroeconomic shifts, as it consists mainly of essential service providers (e.g., HVAC, dental, home repair) with steady demand.

• Majority of new SaaS customers come from existing relationships or referrals, with inbound leads being a smaller, costlier, and higher-churn segment.

• Focus remains on expanding within the existing customer base, with product-led growth and partnerships as emerging priorities.

• Local sales channel has been reduced for cost efficiency but could be expanded as SaaS becomes the majority.