THRY — Thryv Holdings, Inc.

Summary of Thryv Holdings Q3 2025 Earnings Call

1. Key Financial Results and Metrics

• SaaS Revenue: $115.9 million, a 33% increase year-over-year. Excluding Keap, Thryv's SaaS business grew 14%.
• Keap Contribution: $16.8 million in Q3.
• Adjusted Gross Margin: Increased by 80 basis points to 73%.
• Adjusted EBITDA: $19.6 million, with an adjusted EBITDA margin of 17%.
• SaaS Subscribers: 103,000 total, including 13,000 from Keap, marking a 7% year-over-year increase.
• Average Revenue Per User (ARPU): Reached $365, with Thryv at $355 and Keap at $437.
• Net Debt: Reduced by $9 million to $265 million, with a leverage ratio of 1.9x.
• Free Cash Flow: Generated $14.6 million in Q3, totaling $18.8 million year-to-date.

2. Strategic Updates and Business Highlights

• Partner Engagement: Improved relations with Keap partners following previous neglect; positive feedback received at the Grow Conference, indicating potential for growth in 2026.
• Marketing Center: Fastest-selling product, emphasizing its role in small business marketing and lead tracking.
• AI Integration: Significant advancements in AI capabilities across products, enhancing user experience and operational efficiency.
• Vertical Initiatives: Successful pilot in the HVAC sector, showing strong customer satisfaction and revenue increases; plans to expand to broader home services.
• Multiproduct Adoption: Growth in clients using two or more SaaS products, increasing from 15,000 (16% of the base) to 17,000 (20%).

3. Forward Guidance and Outlook

• Q4 SaaS Revenue Guidance: Expected to be between $118 million and $121 million.
• Full Year SaaS Revenue Update: Revised to $460 million to $463 million.
• SaaS Adjusted EBITDA Guidance: For Q4, projected between $19.2 million and $21.2 million; full year guidance raised to $73 million to $75 million.
• Marketing Services Revenue Guidance: Expected to be between $323 million and $325 million for the full year.

4. Bad News, Challenges, or Points of Concern

• Seasoned Net Revenue Retention (NRR): Declined to 94%, impacted by the transition of legacy clients to the new SaaS platform, which introduced lower spend accounts.
• Execution Issues: Slight miss on revenue guidance attributed to execution challenges rather than macroeconomic factors.
• Customer Base Quality: Ongoing transition from lower-value legacy marketing services clients to higher-value SaaS clients may create temporary noise in metrics.

5. Notable Q&A Insights

• Market Conditions: Joe Walsh indicated that the company is not significantly affected by macroeconomic conditions, emphasizing internal execution as the primary driver of performance.
• Partner Strategy: Walsh highlighted the importance of rebuilding partner relationships and the need for continuous innovation to meet partner expectations.
• Vertical Strategy: Focus on targeting larger businesses with higher revenue potential, moving away from solopreneurs to reduce churn and increase ARPU.
• AI Utilization: New CTO Sean Wechter is expected to accelerate AI integration and improve operational efficiencies, enhancing product development speed.

This summary encapsulates the key financial metrics, strategic initiatives, outlook, challenges, and insights from the Q3 2025 earnings call for Thryv Holdings.