Thryv's 2024Q4 Earnings Call: Contradictions in Keap's Revenue, Cross-Selling, and Integration Strategy

These are the key contradictions discussed in Thryv's latest 2024Q4 earnings call, specifically including: Keap's revenue expectations, cross-selling process between Thryv and Keap, ARPU growth dynamics, and integration strategy of Keap:



SaaS Revenue Growth and Integration:
- Thryv reported total SaaS revenue of $104.3 million for Q4, marking 41% year-over-year growth.
- The SaaS business reported adjusted gross margin of 76% in Q4, indicating significant operational efficiency.
- Growth was driven by the integration of Keap software following the acquisition and realizing synergies through cost reductions and product innovation.

Keap Acquisition and Synergies:
- Thryv's acquisition of Keap contributed $13.4 million in revenue during November and December 2024.
- The acquisition is expected to provide significant revenue synergies through cross-selling between customer bases over the next couple of years.
- Thryv has already realized $10 million in EBITDA synergies through cost reductions and vendor consolidations.

Customer Engagement and Product Innovation:
- Thryv reported a 50% increase in Thryv SaaS subscribers, reaching 99,000, with the combined subscriber base with Keap at 114,000.
- The number of clients using two or more paid SaaS products increased, now representing 16% of the client base.
- Product updates, such as the addition of Reporting Center and AI-assisted features, have enhanced client satisfaction and engagement.

Financial Performance and Outlook:
- Thryv achieved SaaS EBITDA of $17 million, surpassing guidance by over $5 million.
- For fiscal 2025, Thryv expects total SaaS revenue to range between $464.5 million to $474 million.
- The company aims to achieve a SaaS adjusted EBITDA margin of 15% for the full year, signaling continued strong financial performance.