DALLAS - Thryv Holdings, Inc. (NASDAQ:THRY), a provider of small business software services, has reported a significant uptick in the adoption of its Software as a Service (SaaS) platform, particularly through upgrades from its legacy Marketing Services. The company anticipates that by the end of 2024, nearly 40% of its revenue will be derived from its SaaS offerings.
Joe Walsh, Chairman and CEO of Thryv, highlighted the importance of this shift for the company's growth, stating that the move to SaaS is a key step in scaling operations and establishing new centers. Thryv's SaaS platform is designed to streamline various business functions for small businesses, offering interoperable centers that automate day-to-day tasks.
The company's SaaS platform has been attracting customers through various channels, including upgrades from Thryv's Marketing Services, referrals, and new sales. The platform's centers, such as the Marketing Center, Business Center, and the free Thryv Command Center, offer a range of services from customer relationship management to marketing and advertising tools.
Thryv's focus on a center-based SaaS platform is part of its strategy to drive higher gross margins and improve client lifetime value. The company reported a significant increase in SaaS adjusted gross margins and net dollar retention in the fourth quarter of 2023.
Grant Freeman, President of Thryv Holdings, emphasized the company's commitment to facilitating the transition for small businesses to more modern operations and the value proposition of Thryv's platform.
This announcement is based on a press release statement from Thryv Holdings.
InvestingPro Insights
As Thryv Holdings, Inc. (NASDAQ:THRY) continues to pivot towards a Software as a Service (SaaS) model, recent data and insights from InvestingPro offer a deeper look into the company's financial health and market performance. Thryv's emphasis on SaaS is aimed at driving revenue and margins, and the InvestingPro platform provides valuable metrics that can help investors understand the company's potential.
InvestingPro data shows a market capitalization of $743.74 million, reflecting the company’s current valuation in the market. While Thryv is experiencing a negative Price/Earnings (P/E) ratio of -13.91, indicating that it has not been profitable over the last twelve months, analysts on InvestingPro predict the company will be profitable this year. This aligns with Thryv’s own forecasts of increased SaaS revenue contributing to overall growth.
Moreover, the company's strong gross profit margin of 62.22% for the last twelve months as of Q3 2023 suggests that Thryv is effective in managing its cost of goods sold and could potentially leverage this efficiency as it scales its SaaS offerings. However, it's important to note that revenue growth has declined by 17.76% over the same period, which may be a point of concern for investors considering the company's growth trajectory.
One of the InvestingPro Tips highlights that Thryv has high shareholder yield, which could be an attractive factor for investors looking for companies with a potential for capital returns. Additionally, with liquid assets exceeding short-term obligations, the company appears to be in a solid position to manage its liabilities and invest in growth opportunities.
For more detailed analysis and additional InvestingPro Tips, such as the company's strong return over the last three months and high return over the last decade, investors can visit https://www.investing.com/pro/THRY. There are 9 more tips available on InvestingPro that could provide further insights into Thryv's financials and market performance. Use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription for even more in-depth investment analysis.
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