Thryv Holdings, Inc. (THRY)

A. Company Overview

Thryv Holdings, Inc. is a prominent player in the marketing and advertising sector, offering comprehensive solutions primarily targeting small and medium-sized businesses (SMBs) and emerging franchises. The company has established a significant presence with a legacy rooted in the marketing industry, providing a breadth of print and digital marketing solutions alongside a cloud-based software platform. Thryv serves approximately 350,000 SMB clients as of December 31, 2023, spread across four distinct business segments: Thryv U.S. Marketing Services, Thryv U.S. SaaS, Thryv International Marketing Services, and Thryv International SaaS.

In recent years, Thryv has actively pursued acquisitions to enhance its market presence and capabilities. Notable acquisitions include Yellow Holdings Limited in New Zealand, Vivial Media Holdings, Inc. in the United States, and Sensis Holding Limited in Australia. These strategic moves have broadened Thryv’s global footprint and expanded service offerings.

B. Business Segments

Thryv operates through four major segments, each contributing uniquely to the company’s overall revenue and strategic goals.

Thryv U.S. Marketing Services

This segment encompasses a range of print and digital marketing solutions tailored for the U.S. market. During the fiscal year ending December 31, 2023, Thryv U.S. Marketing Services generated $510.5 million in revenue. The primary offerings include:

• Print Solutions: This includes the publication of Print Yellow Pages (PYPs) and White Pages, typically on a 15 to 18-month cycle. Advertisements in these directories are a core revenue stream.
• Digital Solutions: Thryv also provides an Internet Yellow Pages (IYP) service through several online platforms (e.g., Yellowpages.com, Superpages.com). These platforms attract substantial traffic, facilitating ad placements and lead generation for SMB clients.

The U.S. marketing services are complemented by search engine marketing (SEM) solutions and a suite of additional digital media solutions, including social advertising and search engine optimization (SEO) tools.

Thryv U.S. SaaS

Thryv’s U.S. SaaS segment focuses on the flagship all-in-one small business management platform called Thryv®. This platform encompasses several integral components, including:

• Command Center: A modular communication hub enabling businesses to centralize customer interactions across various channels, enhancing the customer relationship experience.
• Business Center: This feature provides an end-to-end customer experience management toolkit, covering customer relationship management (CRM), appointment scheduling, invoicing, and more.
• Marketing Center: A comprehensive marketing and advertising platform allowing SMBs to manage digital marketing campaigns, powered by AI-driven analytics to optimize performance.

The SaaS segment has been pivotal in generating recurring revenue streams through subscription contracts, presenting SMBs with customizable options tailored to their growth and operational needs.

Thryv International Marketing Services

This segment operates similarly to its U.S. counterpart but focuses on markets outside the United States, generating $142.7 million in revenue for the same fiscal year. Thryv’s international operations are designed to replicate successful marketing service structures adapted to local markets.

Thryv International SaaS

Thryv International SaaS extends its flagship platform to global markets, providing local businesses with access to the same suite of management tools available domestically.

C. Integration of Marketing Services and SaaS

Thryv’s strategy to combine its marketing services with its SaaS offerings is underpinned by a history of serving SMBs and responding to the increasing demand for integrated technology solutions. The seamless integration allows clients to streamline their business operations effectively, access customer insights, and optimize marketing efforts from a single platform.

D. Competitive Landscape

The landscape in which Thryv operates is characterized by intense competition and fragmentation. The company competes with various other firms providing marketing solutions and cloud-based SaaS tools tailored for SMBs. Key competitive factors include:

• Customization and integration capabilities
• Quality and pricing competitiveness
• User-friendliness and brand recognition
• Availability of customer support and onboarding programs

E. Strategic Initiatives

Thryv’s growth strategy is multifaceted, focusing on innovation, market penetration, and leveraging its sales force. The company aims to transition more clients from traditional marketing services to SaaS solutions while managing the revenue mix to ensure profitability amidst shifting industry dynamics.

Innovation and Development

Continuous enhancement of the Thryv platform is critical to retaining clients and fueling growth. Annual releases of new features and improvements ensure the platform meets evolving SMB needs. This is complemented by a significant focus on technology, ranging from custom software development to strategic partnerships designed to amplify the platform's capabilities.

Acquisitions and International Expansion

Thryv is keen on pursuing opportunistic acquisitions to drive synergy and scale, having historically realized cost efficiencies and new client opportunities through past acquisitions. The company also highlights international growth as a strategic focus, with plans to expand into new markets through various mechanisms, including direct sales and partnerships.