Thryv Holdings Reports $824.2M Revenue Decline, Plans Transition to SaaS Model

Thryv Holdings, Inc. reported a total revenue of $824.2 million for the fiscal year ending December 31, 2024, a decrease of 10.1% from $917.0 million in 2023. The decline was primarily driven by a significant drop in revenue from the Thryv Marketing Services segment, which fell by 26.4% to $480.7 million, compared to $653.2 million in the previous year. In contrast, the Thryv SaaS segment experienced a revenue increase of 30.2%, reaching $343.5 million, up from $263.7 million in 2023. The overall net loss for the year was $74.2 million, a reduction from a loss of $259.3 million in 2023, reflecting improved operational efficiency and cost management.

The company made strategic decisions during the year that significantly impacted its financial performance. Notably, Thryv announced its intention to terminate its Marketing Services solutions by the end of 2028, which contributed to an impairment charge of $83.1 million in the third quarter of 2024. This decision was part of a broader strategy to transition clients from its digital Marketing Services to the Thryv Platform, resulting in the conversion of approximately 46,000 clients during 2024. As of December 31, 2024, the company served approximately 300,000 small-to-medium-sized business (SMB) clients, with 114,000 of those on the Thryv SaaS platform.

Operationally, Thryv's total client count decreased by 14% year-over-year, primarily due to the decline in Marketing Services clients, which fell by 26% to 233,000. However, the SaaS client base grew by 73%, bolstered by the conversion of Marketing Services clients and the addition of 15,000 clients from the recent acquisition of Keap, a SaaS email marketing and sales platform. The company’s monthly average revenue per user (ARPU) for SaaS decreased by 11% to $330, attributed to the strategic conversion of clients at no additional cost.

Looking ahead, Thryv aims to fully transition to a SaaS-driven business model, leveraging its extensive sales force and operational improvements to enhance client engagement and retention. The company plans to continue investing in its Thryv Platform, focusing on product enhancements and expanding its market presence both domestically and internationally. Despite the challenges posed by the declining print media industry and increased competition in the digital space, Thryv remains committed to its growth strategy, which includes opportunistic acquisitions and a disciplined approach to capital allocation.