Thryv Holdings, Inc. Reports 2024 Annual Results: A Year of Transformation Amidst Challenges
Thryv Holdings, Inc. has released its annual report for 2024, reflecting a year marked by significant challenges and strategic transformations. The company, known for its commitment to supporting small and medium-sized businesses (SMBs) through innovative marketing solutions and cloud-based tools, faced a tumultuous financial landscape. This article delves into the key highlights from the report, including revenue changes, acquisitions, and strategic shifts.
1. Company Overview
Thryv Holdings, Inc. operates primarily through two segments: Thryv Marketing Services and Thryv SaaS. The Thryv Marketing Services segment focuses on print and digital marketing solutions, while the Thryv SaaS segment provides cloud-based software tailored for SMBs. The company serves approximately 300,000 clients across the United States, Australia, New Zealand, Canada, and Europe.
2. Revenue Performance and Growth
In 2024, Thryv Holdings reported consolidated revenues of $824.1 million, a drop of 10.1% compared to the previous year, primarily driven by the decline in the Marketing Services segment.
Revenue Breakdown by Segments
- Thryv Marketing Services: $480.6 million in 2024, down 26.4% from $653.2 million in 2023.
- Thryv SaaS: $343.4 million in 2024, increasing by 30.2% from $263.7 million in 2023.
Geographic Revenue Distribution
The company’s revenue by geography reveals a similar trend, with the United States accounting for $686.3 million (down 10.18%) and international revenue at $137.8 million (down 9.84%) in 2024.
3. Strategic Acquisitions and Client Conversions
Thryv made significant strides in expanding its offerings through acquisitions. Notably, in 2024, the company acquired Keap, a SaaS email marketing and sales platform, for $76.9 million in cash. This strategic move aligns with Thryv's goal of enhancing its SaaS offerings.
In a notable achievement, Thryv converted approximately 46,000 clients from its Marketing Services solutions to its SaaS platform, contributing an additional $37.1 million to SaaS revenue. As of December 31, 2024, about 38,000 of these clients remained active SaaS users.
4. Financial Overview
Income Statement Highlights
Thryv Holdings' financials reflected a continued effort to streamline operations despite facing impairment charges and declines in revenue. The company recorded a net loss of $74.21 million for the year, significantly improving from a loss of $259.2 million in 2023. This loss was influenced by non-cash impairment charges of $83.1 million related to goodwill.
| Feb 2024 | Feb 2025 | |
|---|---|---|
Net Income | -259.2M | -74.21M |
Profit | -259.2M | -74.21M |
Net Income Continuing | -259.2M | -74.21M |
Income Tax Expense | -1.24M | 8.21M |
Pretax Income | -260.5M | -65.99M |
Non-operating Income | -60.52M | -32.69M |
Operating Income | -200.0M | -33.29M |
Revenue | 916.9M | 824.1M |
Costs and Expenses | 1.11B | 857.4M |
Cost of Revenue | 338.7M | 286.9M |
Operating Expenses | 778.2M | 570.5M |
Impairment Expense | 268.8M | 83.09M |
Selling, General & Administrative | 509.4M | 487.4M |
Balance Sheet Analysis
As of December 31, 2024, Thryv's total assets were valued at $712.1 million, down from $783.1 million in 2023. Total liabilities decreased to $515.2 million from $630.4 million in 2023, showcasing a concerted effort to manage debt levels effectively.
| Feb 2024 | Feb 2025 | |
|---|---|---|
Total Assets | 783.1M | 712.1M |
Total Current Assets | 266.8M | 210.7M |
Cash and Equivalents | 18.21M | 16.31M |
Accounts Receivable | 205.5M | 161.6M |
Non-trade Receivables | 3.08M | 6.21M |
Prepaid Expenses | 17.77M | 13.92M |
Other Current Assets | 22.29M | 12.64M |
Total Non-current Assets | 516.3M | 501.4M |
Intangible Assets | 321.1M | 287.5M |
Non-current Deferred Tax Assets | 128.0M | 143.4M |
Net PP&E | 38.59M | 44.47M |
Other Non-current Assets | 28.46M | 25.89M |
Total Liabilities and Equity | 783.1M | 712.1M |
Total Liabilities | 630.4M | 515.2M |
Total Current Liabilities | 263.1M | 196.2M |
Accounts Payable and Accrued Liabilities | 116.2M | 108.4M |
Current Debt | 70M | 13.12M |
Current Deferred Revenue | 44.55M | 40.31M |
Other Current Liabilities | 32.38M | 34.34M |
Total Non-current Liabilities | 367.2M | 318.9M |
Long-term Debt | 278.8M | 271.2M |
Other Non-current Liabilities | 88.38M | 47.77M |
Total Equity and Non-controlling Interests | 152.7M | 196.9M |
Total Equity | 152.7M | 196.9M |
Cash Flow Statement Insights
The company experienced a net change in cash of -$2.76 million, highlighting the challenges faced within operational cash flows. However, the cash flow from operating activities showed a positive figure of $89.78 million, reflecting effective management of operational adjustments.
| Feb 2024 | Feb 2025 | |
|---|---|---|
Net Change in Cash | 2.35M | -2.76M |
Effect of Exchange Rate Changes | 133K | -1.34M |
Net Cash from Operating Activities | 148.2M | 89.78M |
Operating Profit | -259.2M | -74.21M |
Adjustment to Operating Profit | 407.5M | 163.9M |
Net Cash from Investing Activities | -42.51M | -110.4M |
Business & Interest in Affiliates | 8.89M | 76.88M |
Productive Assets | 33.39M | 33.53M |
Other Investing Activities | -225K | 0 |
Net Cash from Financing Activities | -103.4M | 19.21M |
Debt | -125.7M | 0 |
Equity Issuance/Repurchase | 15.89M | 86.90M |
Other Financing Activities | 6.31M | -67.68M |
5. Operational Metrics and Client Base
Despite the challenges in revenue, Thryv Holdings reported an increase in seasoned Net Revenue Retention (NRR) by 2% year-over-year. However, the total client count decreased by 50,000, or 14%, with a particularly sharp decline of 81,000 clients in Marketing Services.
6. Legal Proceedings and Regulatory Matters
Thryv is currently navigating various legal challenges, including a subpoena from the SEC related to its client conversion strategy. The company is cooperating fully with the investigation, emphasizing its commitment to transparency and regulatory compliance.
7. Conclusion
The 2024 annual report of Thryv Holdings, Inc. paints a complex picture of a company in transition. While it faces significant challenges in its Marketing Services segment, the growth in its SaaS offerings and strategic acquisitions signal a potential path forward. As Thryv continues to innovate and adapt, the focus remains on providing valuable solutions to SMBs while navigating an evolving market landscape.
