Thryv Holdings Inc (THRY, Financial), a provider of software as a service (SaaS) management tools and digital and print marketing tools to small and mid-sized businesses, has released its earnings report for the second quarter of 2024. The company operates in four reportable segments: Thryv U.S. Marketing Services, Thryv U.S. SaaS, Thryv International Marketing Services, and Thryv International SaaS, with the majority of its revenue generated from the Thryv U.S. Marketing Services segment.
Performance Overview
Thryv Holdings Inc (THRY, Financial) reported a mixed performance for Q2 2024. The company achieved a significant 25% year-over-year growth in SaaS revenue, reaching $77.8 million. However, total marketing services revenue declined by 23% year-over-year to $146.3 million. Consolidated total revenue for the quarter was $224.1 million, representing an 11% decrease year-over-year.
Key Financial Metrics
Despite the decline in total revenue, Thryv Holdings Inc (THRY, Financial) reported a consolidated net income of $5.5 million, or $0.15 per diluted share, compared to $16.0 million, or $0.43 per diluted share, in the same quarter last year. Consolidated Adjusted EBITDA was $59.3 million, with an Adjusted EBITDA margin of 26.5%. The company also reported a SaaS Adjusted EBITDA of $10.2 million, representing an Adjusted EBITDA margin of 13.1%.
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Total Revenue | $224.1 million | $251.8 million |
| Net Income | $5.5 million | $16.0 million |
| Adjusted EBITDA | $59.3 million | $67.2 million |
| SaaS Revenue | $77.8 million | $62.2 million |
| Marketing Services Revenue | $146.3 million | $190.0 million |
Subscriber Growth and SaaS Metrics
Thryv Holdings Inc (THRY, Financial) saw a substantial 52% increase in SaaS subscribers year-over-year, ending the quarter with 85,000 clients. The company's seasoned net dollar retention rate improved by 500 basis points year-over-year to 94%. Additionally, the SaaS monthly average revenue per unit (ARPU) was $333 for the second quarter of 2024.
Management Commentary
"We had a strong second quarter driven by 52% subscriber growth year-over-year, ending at 85,000 clients," said Joe Walsh, Thryv Chairman and CEO. "We have been successfully upgrading our marketing service clients to our SaaS platform and our center strategy is gaining traction, with more than 10% of current clients having two or more paid centers, up from 2% this time last year. In addition, we are actively enhancing our AI capabilities so our clients can more efficiently grow and operate their business. We are pleased with the progress of our product initiatives."
"We reported solid second quarter results and are raising our full year Adjusted EBITDA guidance for SaaS," stated Paul Rouse, Chief Financial Officer. "In the second quarter, we reported SaaS revenue growth of 25% and exceeded our SaaS Adjusted EBITDA guidance, delivering our highest SaaS Adjusted EBITDA margin since becoming a public company."
Outlook
Based on the information available as of August 1, 2024, Thryv Holdings Inc (THRY, Financial) has issued guidance for the third quarter and full year 2024. The company expects SaaS revenue to be between $82 million and $84 million for Q3 2024 and between $326 million and $329 million for the full year. SaaS Adjusted EBITDA is projected to be between $9 million and $10 million for Q3 2024 and between $30 million and $32 million for the full year.
Thryv Holdings Inc (THRY, Financial) continues to face challenges with declining marketing services revenue, but the strong growth in its SaaS segment and improved subscriber metrics indicate a positive trajectory for the company's future performance. Investors and stakeholders will be closely monitoring the company's ability to sustain its SaaS growth and manage the transition from traditional marketing services to a more SaaS-focused business model.
Explore the complete 8-K earnings release (here) from Thryv Holdings Inc for further details.
