Thryv, a leading software company, recently held its third quarter 2024 earnings call, providing insights into its financial performance, strategic initiatives, and future outlook. The call, led by CEO Joe Walsh and CFO Paul Rouse, highlighted the company's achievements, challenges, and plans for growth.
Financial Performance and Strategic Initiatives
Thryv reported a significant increase in SaaS revenue, which grew by 29% year-over-year and 12% sequentially, reaching $87.1 million. The company's SaaS business, which now stands at $350 million in ARR, is showing promising signs of growth, with gross margins of 72% and an adjusted EBITDA margin of 12%. Thryv's strategic focus on converting marketing services customers to its modern SaaS platform has been instrumental in driving this growth. The company expects to be a 100% NDR (Net Dollar Retention) company in the near future, indicating its commitment to retaining and growing its customer base.
Thryv's acquisition of Keap, a marketing automation company, was a significant strategic move, adding over 15,000 quality customers and $80 million in revenue. The acquisition is expected to boost Thryv's scale and product offerings, particularly in the area of automation, which is a growing trend in the market.
Challenges and Future Outlook
Despite these positive developments, Thryv faces challenges, particularly in its marketing services business, which has seen a 35% year-over-year decline in billings. The company attributed this to the ongoing success in transitioning marketing services clients to its SaaS platform. However, Thryv remains optimistic about its future, with a clear focus on growing its SaaS business and expanding its product offerings.
Analyst Questions and Insights
During the Q&A session, analysts probed into Thryv's growth strategy, financial performance, and the impact of the Keap acquisition. Analysts were particularly interested in the company's go-to-market strategy and the pricing of its products and services. Thryv's executives provided valuable insights into their plans to leverage Keap's partner ecosystem and international presence to accelerate growth in those markets.
Conclusion
Thryv's third quarter 2024 earnings call provided a comprehensive overview of the company's financial performance, strategic initiatives, and future outlook. The company's focus on converting marketing services customers to its SaaS platform and the strategic acquisition of Keap are key drivers of its growth. Despite challenges in the marketing services business, Thryv remains optimistic about its future, with a clear focus on expanding its product offerings and growing its customer base. The upcoming Analyst Day is expected to provide further insights into Thryv's strategic plans and financial projections.