Thryv Holdings, Inc. Q4 FY2025 earnings call

2025 was solid, SaaS revenue grew 34% y/y, SaaS adjusted EBITDA margin 16.8%. Accelerating on AI, transitioning from legacy print/marketing to leading SaaS, next phase is being the platform of choice for small businesses. Marketing center is fastest growing product, acquired Keep for platform capabilities. Building Thrive platform powered by AI, moving to product-led growth, focusing on quality customers ($400+/month), managing smaller customers by upgrading or accepting churn. CTO discussed AI strategy, including budget optimizer, New Zealand Directory Assistance Program, MCP solution, aiming to embed in top AI models.

SaaS revenue in Q4 increased 14.1% to $119 million, within guidance, and KEEP contributed $16.2 million. Full-year SaaS revenue grew 34.2% to $461 million. SaaS adjusted gross margin in Q4 was 70.4%, full-year 72.7%. SaaS adjusted EBITDA in Q4 was $20 million, full-year $73.8 million. Marketing services revenue in Q4 was $72.6 million, full-year $324 million. Marketing services adjusted EBITDA in Q4 was $18.8 million, full-year $78 million. Q4 marketing services billings were $60.9 million, down 34% y/y. Free cashflow in 2025 was $31.1 million, expected to grow to $40 - $50 million in 2026. Q4 ended with 100,000 SaaS subscribers, ARPU $373. Growth in quality customers (spending $400+/month) was 18% y/y, now 69% of revenue. Marketing center is largest and fastest growing, growing 34% in Q4 within SaaS revenue.

2026 Q1 SAS revenue expected $114 - $115 million, full-year SAS revenue $461 - $471 million. Q1 SAS adjusted EBITDA expected $12 - $13 million, full-year $70 - $75 million. Full-year marketing services revenue expected $150 - $160 million, adjusted EBITDA $30 - $35 million. Near-term growth rates moderate during transition, then re-accelerate later.

Q: How envision adoption curve of new platform, migration of existing customers, disruption?

A: MarketSellGrow platform has some existing bits and new AI tools, some cannibalization from business center, focus on it now.

Q: View retention metrics and LTV dynamics of quality customer cohort?

A: Some new customers over $400/month, field sales selling big, working with legacy platform customers.

Q: Go-to-market approach evolution for quality customers?

A: Focus on larger businesses, product-led growth for smaller, field sales on larger.

Q: Pricing of new platform, transition of existing customers?

A: Have offerings for different business sizes, streamlined approach, add-ons.

Q: Efficiency gains, end of life of other products?

A: Too early, market sell grow platform pulling across products, some customers moving to it, but Business Center customers still served.

Q: AI functionality embedding, value/efficiency for customers?

A: AI does tasks like call transcript, lead rating, follow-up, eliminates complexity, simplifies for small businesses.