Thryv Holdings Reports 22.4% Revenue Decline and $9.6 Million Net Loss in Q1 2025

Thryv Holdings, Inc. reported a significant decline in financial performance for the first quarter of 2025, with total revenue falling to $181.4 million, a decrease of 22.4% from $233.6 million in the same period of 2024. The decline was primarily driven by a substantial drop in revenue from the Thryv Marketing Services segment, which decreased by 55.9% to $70.2 million, while the Thryv SaaS segment saw a 49.5% increase in revenue to $111.1 million. The company recorded a net loss of $9.6 million, compared to a net income of $8.4 million in the prior year, reflecting the challenges faced in transitioning clients from traditional marketing services to its SaaS offerings.

The decrease in revenue from the Marketing Services segment was attributed to ongoing secular declines in print media and a strategic decision to accelerate the conversion of clients to the Thryv Platform, which resulted in a loss of approximately $11.3 million in revenue from these services. In contrast, the SaaS segment benefited from the conversion of clients, contributing an additional $11.3 million in revenue, alongside increased demand for Thryv's cloud-based solutions. The company also noted that the acquisition of Keap, completed in October 2024, contributed $18.9 million to SaaS revenue during the quarter.

Operationally, Thryv's total client count decreased by 14% year-over-year to approximately 281,000, with a notable 26% decline in Marketing Services clients, while SaaS clients increased by 59%. The average revenue per user (ARPU) for Marketing Services fell by 23% to $111, and for SaaS, it decreased by 9% to $335, reflecting the impact of the client transition strategy. The company reported a gross profit margin of 65.8%, consistent with the previous year, although the gross margin for the SaaS segment improved to 70.9%.

Looking ahead, Thryv Holdings aims to continue its focus on expanding its SaaS offerings and enhancing client engagement through its all-in-one business management platform. The company is also committed to managing its operational costs and improving profitability within its Marketing Services segment until its planned phase-out by 2028. Despite the current challenges, Thryv remains optimistic about its growth trajectory, particularly in the SaaS market, as it adapts to the evolving needs of small-to-medium-sized businesses.