--- title: "Thryv Accelerates SaaS Revenue Growth and Achieves the “Rule of 40¹” in Third Quarter 2024" url: https://burnaze.com/article/a6649722-23ea-4ce5-a455-0b76f7a04c62 source: "Franchising.com" original_url: https://www.franchising.com/news/20241107_thryv_accelerates_saas_revenue_growth_and_achieves_the_rule_of_40_in_third_.html category: "Finance" topics: ["Finance & M&A"] published: 2024-11-07T12:00:00.000Z modified: 2026-10-31T20:00:32.088Z image: https://images.unsplash.com/photo-1611974789855-9c2a0a7236a3?w=1600&q=80&auto=format&fit=crop --- # Thryv Accelerates SaaS Revenue Growth and Achieves the “Rule of 40¹” in Third Quarter 2024 **TL;DR:** Thryv reported 29% SaaS revenue growth in the third quarter of 2024 and achieved the 'Rule of 40'. The company's recent acquisition of Keap is expected to contribute SaaS revenue in the range of $11.0 to $12.0 million in the fourth quarter of 2024. *originally published in Franchising.com on 2024-11-07. [Read the original](https://www.franchising.com/news/20241107_thryv_accelerates_saas_revenue_growth_and_achieves_the_rule_of_40_in_third_.html).* ## Key facts - Thryv reports 29% SaaS revenue growth - 45% year-over-year growth in SaaS clients - Total SaaS revenue was $87.1 million ## Story ## Third quarter results November 07, 2024 // Franchising.com // DALLAS – Thryv Holdings, Inc. (NASDAQ:THRY) (“Thryv” or the “Company”), the provider of Thryv®, the leading small business software platform, reported SaaS revenue growth of 29% year-over-year in the third quarter of 2024. “We had a strong third quarter – delivering SaaS revenue growth of 29% year-over-year and record SaaS margins,” said Joe Walsh, Thryv Chairman and CEO. “We reported 45% year-over-year growth in SaaS clients as we are upgrading our marketing service clients to our SaaS platform and have continued to execute on our transformation strategy. In addition, we achieved a significant milestone that further validates our business model and reached the ‘Rule of 40’ this quarter. “With our recent acquisition of Keap, Thryv will be offering an expanded, integrated set of marketing and sales solutions, and a strong global partner channel, to our 100,000-plus SaaS clients,” said Walsh. “In the third quarter, we beat our SaaS Revenue and Adjusted EBITDA guidance and are raising our full year SaaS guidance,” stated Paul Rouse, Chief Financial Officer. “Our Seasoned NDR increased to 101%, as we continue to increase paid centers per client, which grew 12% this quarter, demonstrating the success of our land-and-expand strategy.” ## Financial highlights - Total SaaS revenue was $87.1 million, a 29% increase year-over-year - Total Marketing Services revenue was $92.8 million, a 20% decrease year-over-year - Consolidated total revenue was $179.9 million, a decrease of 2% year-over-year - Consolidated net loss was $96.1 million, or $(2.65) per diluted share; which includes a non-cash charge of $83.1 million, or $(2.29) per diluted share, related to a goodwill impairment for our Marketing Services segment; compared to net loss of $27.0 million, or $(0.78) per diluted share, for the third quarter of 2023 - Consolidated Adjusted EBITDA was $19.6 million, representing an Adjusted EBITDA margin of 10.9% - Total SaaS Adjusted EBITDA was $10.3 million, representing an Adjusted EBITDA margin of 11.8% - Total Marketing Services Adjusted EBITDA was $9.3 million, representing an Adjusted EBITDA margin of 10.0% - Consolidated Gross Profit was $112.0 million - Consolidated Adjusted Gross Profit was $116.8 million - SaaS Gross Profit was $60.6 million - SaaS Adjusted Gross Profit was $62.9 million, representing an Adjusted Gross Profit Margin of 72.2% ## Client growth metrics - Total SaaS clients increased 45% year-over-year to 96 thousand for the third quarter of 2024 - Seasoned Net Dollar Retention was 101% for the third quarter of 2024, an increase of 900 bps year-over-year - SaaS monthly Average Revenue per Unit (“ARPU”) was $307 for the third quarter of 2024 - ThryvPay total payment volume was $82 million, an increase of 30% year-over-year 1 Rule of 40 is defined as year-over-year revenue growth plus Adj. EBITDA Margin 2 Defined as Gross profit adjusted to exclude the impact of depreciation and amortization expense and stock-based compensation expense. 3 Seasoned Net Dollar Retention is defined as net dollar retention excluding clients acquired over the previous 12 months. 4 Defined as total client billings for a particular month divided by the number of clients that have one or more revenue-generating solutions in that same month. 5 These statements are forward-looking and actual results may materially differ. Refer to the “Forward-Looking Statements” section below for information on the factors that could cause our actual results to materially differ from these forward-looking statements. Based on information available as of November 7, 2024, Thryv is issuing guidance for the fourth quarter of 2024 and full year 2024 as indicated below: For the fourth quarter of 2024, the Company’s recent acquisition of Keap is expected to contribute SaaS revenue in the range of $11.0 to $12.0 million, which relates to November and December and is not included in the guidance issued above. Keap’s SaaS Adjusted EBITDA is expected to be de minimus for the fourth quarter of 2024 and is also not included in the guidance issued above. Thryv will host a conference call on Thursday, November 7, 2024 at 8:30 a.m. (Eastern Time) to discuss the Company’s third quarter 2024 results. For analysts to register for this conference call, please use this link. After registering, a confirmation email will be sent, including dial-in details and a unique code for entry. We recommend registering a day in advance or at a minimum thirty minutes prior to the start of the call. To listen to the webcast, please use this link or visit Thryv’s Investor Relations website at investor.thryv.com. A live webcast will also be available on the Investor Relations section of the Company’s website at investor.thryv.com. During first quarter of 2024, the Company changed the internal reporting provided to the chief operating decision maker (“CODM”). As a result, the Company reevaluated its segment reporting and determined that Thryv U.S. Marketing Services and Thryv International Marketing Services should be reflected as a single reportable segment, and that Thryv U.S. SaaS and Thryv International SaaS should be reflected as a single reportable segment. As such, beginning on January 1, 2024, the results of our Marketing Services and SaaS businesses are presented as two reportable segments. Comparative prior periods have been recast to reflect the current presentation. Our results included in this press release include Adjusted EBITDA, Adjusted EBITDA Margin and Adjusted Gross Profit, which are not presented in accordance with U.S. generally accepted accounting principles (“GAAP”). These non-GAAP measures are presented for supplemental informational purposes only and are not intended to be considered in isolation or as a substitute for, or superior to, financial information prepared and presented in accordance with GAAP. Please refer to the supplemental information presented in the tables below for a reconciliation of Adjusted EBITDA to Net income (loss) and Adjusted Gross Profit to Gross profit. Both Net income (loss) and Gross profit are the most comparable GAAP financial measure to Adjusted EBITDA and Adjusted Gross Profit, respectively. The following tables set forth reconciliations of Adjusted Gross Profit and Adjusted Gross Margin, to their most directly comparable GAAP measures, Gross profit and Gross margin: The following supplemental financial information provides Revenue, Adjusted EBITDA and Adjusted EBITDA Margin by (i) Marketing Services businesses and (ii) SaaS businesses. Total SaaS Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP financial measures. Total Marketing Services Adjusted EBITDA and Adjusted EBITDA margin are also non-GAAP financial measures. These non-GAAP financial measures are presented for supplemental informational purposes only and are not intended to be considered in isolation or as a substitute for, or superior to, financial information prepared and presented in accordance with GAAP. Please refer to the supplemental information presented in the tables below for a reconciliation of these non-GAAP financial measures to the corresponding segment financial measures presented in accordance with GAAP. Certain statements contained herein are not historical facts, constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and involve a number of risks and uncertainties. Statements that include the words “may”, “will”, “could”, “should”, “would”, “believe”, “anticipate”, “forecast”, “estimate”, “expect”, “preliminary”, “intend”, “plan”, “target”, “project”, “outlook”, “future”, “forward”, “guidance” and similar statements of a future or forward-looking nature identify forward-looking statements. These statements are not guarantees of future performance. These forward-looking statements are based on our current expectations and beliefs concerning future developments and their potential effect on us. While management believes that these forward-looking statements are reasonable as and when made, there can be no assurance that future developments affecting us will be those that we anticipate. Accordingly, there are or will be important factors that could cause our actual results to differ materially from those indicated in these statements. These forward-looking statements speak only as of the date hereof and, other than as required by law, we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Thryv Holdings, Inc. (NASDAQ:THRY) is the provider of the leading do-it-all small business software platform that empowers small businesses to modernize how they work. It offers small business owners everything they need to communicate effectively, manage their day-to-day operations, and grow — all in one place — giving up to 20 hours back in their week. Thryv’s customizable platform features three centers: Thryv Command Center, a freemium central communications hub, Business CenterTM and Marketing CenterTM. Approximately 300,000 businesses globally use Thryv to connect with local customers and take care of everything they do, start to finish. For more information, visit thryv. ## Entities - Franchising.com (publication) - General (sector) - acquisition (topic) - financial results (topic) - Thryv (company) - Keap (company) - Thryv acquisition of Keap (deal) - saas revenue growth (topic) - rule of 40 (topic) --- Originally reported by Franchising.com (https://www.franchising.com/news/20241107_thryv_accelerates_saas_revenue_growth_and_achieves_the_rule_of_40_in_third_.html). Summarized by Burnaze (https://burnaze.com/article/a6649722-23ea-4ce5-a455-0b76f7a04c62).