Thryv Holdings, Inc. (THRY)

Thryv Holdings, Inc. (THRY) Media & Communications Profile

Thryv Holdings, Inc. delivers digital marketing solutions and cloud-based tools to SMBs, operating through SaaS, Marketing Services, and Thryv International segments. Its core offering, the Thryv platform, provides end-to-end customer experience management, positioning the company as a key player in the evolving digital landscape for small businesses.

What Is the Investment Thesis for THRY?

Thryv Holdings presents a compelling, albeit speculative, investment thesis centered on its transition to a SaaS-based model targeting SMBs. The company's Thryv platform aims to provide an integrated solution for customer experience management, potentially driving recurring revenue and higher customer lifetime value. With a P/E ratio of 10.9, the company may appear undervalued relative to its growth potential. Key catalysts include the continued adoption of the Thryv platform and expansion of its ThryvPay payment solution. However, investors should be aware of the company's relatively small market capitalization of $190.03M and the competitive landscape in the digital marketing space. The company's success hinges on its ability to effectively penetrate the SMB market and demonstrate sustained revenue growth from its SaaS offerings.

Based on FMP financials and quantitative analysis

THRY Key Highlights

• Thryv operates in three segments: SaaS, Marketing Services, and Thryv International, providing diverse revenue streams.
• The Thryv platform offers an end-to-end customer experience solution for SMBs, potentially driving recurring revenue.
• ThryvPay facilitates payments through credit card and ACH, enhancing the platform's value proposition.
• The company's print and digital solutions cater to a wide range of marketing needs for SMBs.
• Thryv's rebranding in July 2019 marked a strategic shift towards digital solutions.

Who Are THRY's Competitors?

THRY is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are THRY's Key Strengths?

• Comprehensive platform offering a wide range of services.
• Established presence in the SMB market.
• Recurring revenue from SaaS subscriptions.
• Integrated payment solution with ThryvPay.

What Are THRY's Weaknesses?

• Small market capitalization.
• Intense competition in the digital marketing space.
• Reliance on SMBs, which can be sensitive to economic downturns.
• Limited international presence.

What Could Drive THRY Stock Higher?

• Continued adoption of the Thryv platform by SMBs.
• Expansion of ThryvPay usage and transaction volume.
• Potential strategic partnerships with other technology providers.
• Launch of new features and functionality for the Thryv platform.

What Are the Key Risks for THRY?

• Financial-distress signal — its Altman Z-Score of 0.55 sits in the distress zone (elevated bankruptcy risk).
• Increasing competition in the digital marketing space.
• Economic downturns affecting SMB spending.
• Changes in search engine algorithms affecting online visibility.
• Data security and privacy concerns.

What Are the Growth Opportunities for THRY?

• Expansion of ThryvPay: ThryvPay represents a significant growth opportunity by providing a seamless payment solution integrated within the Thryv platform. By increasing adoption of ThryvPay among its existing customer base and attracting new users, Thryv can generate additional revenue streams and enhance customer stickiness. The market for integrated payment solutions within the SMB sector is substantial, with projections indicating continued growth in digital payment adoption.
• Penetration of the SMB Market: Thryv has the opportunity to further penetrate the SMB market by expanding its sales and marketing efforts. By targeting specific verticals and tailoring its solutions to meet the unique needs of different SMB segments, Thryv can increase its market share and drive revenue growth. The SMB market is vast and fragmented, offering significant potential for expansion.
• International Expansion: Thryv International represents a growth opportunity for the company to expand its reach beyond the domestic market. By entering new international markets and adapting its solutions to local needs, Thryv can diversify its revenue streams and tap into new customer bases. The global market for digital marketing solutions is experiencing strong growth, driven by the increasing digitalization of businesses worldwide.
• Strategic Partnerships: Thryv can pursue strategic partnerships with other technology providers and industry associations to expand its reach and enhance its product offerings. By collaborating with complementary businesses, Thryv can offer integrated solutions that provide greater value to its customers. Strategic partnerships can also help Thryv access new markets and customer segments.
• Development of New Features and Functionality: Thryv can continue to develop new features and functionality for its platform to meet the evolving needs of SMBs. By investing in research and development, Thryv can enhance its product offerings and maintain a competitive edge. New features could include advanced analytics, artificial intelligence-powered marketing tools, and enhanced integration with other business applications.

What Opportunities Does THRY Have?

• Expansion of ThryvPay adoption.
• Penetration of new SMB verticals.
• Strategic partnerships with other technology providers.
• International expansion.

What Threats Does THRY Face?

• Increasing competition from larger players in the digital marketing space.
• Economic downturns affecting SMB spending.
• Changes in search engine algorithms affecting online visibility.
• Data security and privacy concerns.

What Are THRY's Competitive Advantages?

• Integrated Platform: The Thryv platform provides an end-to-end solution for SMBs, creating a comprehensive ecosystem that enhances customer stickiness.
• Established Customer Base: Thryv has an established customer base, providing a foundation for future growth.
• Brand Recognition: Thryv has brand recognition through its legacy yellow pages business, providing a competitive advantage in the market.
• Proprietary Technology: Thryv's proprietary technology and software provide a competitive edge.

What Does THRY Do?

Thryv Holdings, Inc., formerly known as Dex Media Holdings, Inc., underwent a strategic transformation culminating in its rebranding in July 2019. The company provides digital marketing solutions and cloud-based tools to small-to-medium sized businesses (SMBs). Thryv operates through three segments: SaaS (Software as a Service), Marketing Services, and Thryv International. The SaaS segment is anchored by the Thryv platform, an end-to-end customer experience solution designed to streamline operations for SMBs. This includes customer relationship management (CRM), marketing automation, and appointment scheduling. Hub by Thryv caters to franchisors, offering real-time oversight and management tools for multiple locations. Thryv Leads provides integrated local marketing and lead generation services. ThryvPay facilitates payments through credit card and ACH. Thryv's Marketing Services segment includes print and digital solutions, encompassing print yellow pages, internet yellow pages (yellowpages.com, superpages.com, dexknows.com), search engine marketing (SEM), online display and social advertising, online presence and video, and search engine optimization (SEO) tools. Headquartered in DFW Airport, Texas, Thryv is focused on empowering SMBs with comprehensive digital tools to enhance their customer engagement and operational efficiency.

What Products and Services Does THRY Offer?

• Provides the Thryv platform, an end-to-end customer experience platform for SMBs.
• Offers Hub by Thryv, a solution for franchisors to manage multiple locations.
• Provides Thryv Leads, an integrated local marketing and lead generation solution.
• Offers ThryvPay, a payment solution that allows users to get paid through credit card and ACH.
• Provides print and digital solutions, including print yellow pages.
• Offers internet yellow pages, such as yellowpages.com, superpages.com, and dexknows.com.
• Provides search engine marketing solutions.
• Offers other digital media solutions, including online display and social advertising.

How Does THRY Make Money?

• SaaS: Generates recurring revenue through subscriptions to the Thryv platform and related services.
• Marketing Services: Generates revenue through the sale of print and digital advertising solutions.
• Thryv International: Generates revenue from international operations.
• Transaction Fees: Collects fees from ThryvPay transactions.

What Industry Does THRY Operate In?

Thryv Holdings operates within the dynamic Internet Content & Information industry, which is experiencing rapid growth driven by the increasing digitalization of businesses and the rising demand for online marketing solutions. The SMB sector, Thryv's primary target market, is increasingly adopting digital tools to enhance customer engagement and operational efficiency. The competitive landscape includes established players in digital marketing, SaaS providers, and traditional marketing agencies. Thryv aims to differentiate itself by offering an integrated platform that combines CRM, marketing automation, and payment solutions.

Who Are THRY's Key Customers?

• Small-to-medium sized businesses (SMBs) across various industries.
• Franchisors seeking to manage multiple locations.
• Businesses seeking lead generation and marketing solutions.

ROE 7%Key Financial Metrics

Return on equity for Thryv Holdings, Inc. stands at 6.6%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 2.1%, showing how much profit it generates from its asset base. THRY trades at a trailing price-to-earnings ratio of 10.88, below the Communication Services sector average of ~18x. Its free cash flow yield is 30.5%, a gauge of the cash the business throws off relative to its market value. A current ratio of 1.23 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is 7.6%, the inverse of the P/E and a quick read on earnings relative to price.

How Thryv Holdings, Inc. Is Valued

Thryv Holdings, Inc. carries a market capitalization of $190.03M, placing it in the micro-cap category. Relative to its peer group, THRY's quantitative score of 52/100 is below the peer average of 73/100.

F-Score 7/9Financial Health

Thryv Holdings, Inc.'s Piotroski F-Score is 7/9, a 9-point checklist of profitability, leverage and efficiency — signaling solid underlying fundamentals. Its Altman Z-Score of 0.55 places it in the distress zone, a signal of elevated financial risk.

FY2026 estForward Outlook

Wall Street analysts project Thryv Holdings, Inc. revenue of about $625.8M for fiscal 2026, with EPS near $0.21. The estimate reflects 3 contributing analysts.

Net buyingInsider Activity

Over the past six months, Thryv Holdings, Inc. insiders filed 29 SEC Form 4 transactions — 9 sales and 20 purchases. On net that is roughly 2.8M shares acquired (about $6.2M) — insiders putting money in tends to read as conviction.

THRY Financials

THRY Latest News

THRY Analyst Consensus

THRY MoonshotScore

What Investors Ask About Thryv Holdings, Inc. (THRY) — Communication Services

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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