Thryv Holdings announced Q2 earnings this week, and the headline is similar to the past few quarters: SaaS continues to be the growth engine as Thryv manages planned declines in its legacy print directories business. For Thryv, SaaS entails an evolving bundle of SMB digital marketing tools.
Drilling down, the SaaS portion of Thryv’s business grew 48 percent year-over-year to $115 million. The company also achieved seasoned net revenue retention of 103 percent in Q2. This means Thryv is not only steering a broader SaaS-based strategic shift, but the product itself has the goods.
Another important data point is that SaaS represented 55 percent of total revenue in Q2. After crossing 100,000 SMB SaaS customers in Q4, the company is “well over” that milestone now, and seeing strong momentum. Because SaaS is the growth engine for Thryv this is a key metric among its KPIs
“Transformation takes time, but with well over 100,000 small businesses now on our marketing and sales platform, Thryv’s momentum is undeniable,” Thryv President Grant Freeman told Localogy Insider. “As we continue to enhance and expand our product offerings, including the addition of more industry-specific marketing automations, we’re gaining strong traction and building a fiercely loyal customer base.”
Granular Look
For a more granular look at Thryv’s Q2, we extracted top earnings takeaways and highlights for Localogy Insider readers…
- SaaS revenue was $115.0 million, a 48% increase year-over-year
- SaaS revenue excluding Keap was $97.3 million, a 25% increase year-over-year
- Marketing Services revenue was $95.5 million, a 35% decrease year-over-year
- Consolidated total revenue was $210.5 million, a decrease of 6% year-over-year
- Consolidated net income was $13.9 million, or $0.31 per diluted share; compared to net income of $5.5 million, or $0.15 per diluted share, for the second quarter of 2024
- Consolidated Adjusted EBITDA was $51.2 million, representing an Adjusted EBITDA margin of 24.3%.
- SaaS Adjusted EBITDA was $23.4 million, representing an Adjusted EBITDA margin of 20.3%
- Total Marketing Services Adjusted EBITDA was $27.8 million, representing an Adjusted EBITDA margin of 29.2%
- Consolidated Gross Profit was $146.6 million
- Consolidated Adjusted Gross Profit 1 was $150.7 million
- SaaS Gross Profit was $82.9 million, representing a Gross Margin of 72.1%
- SaaS Adjusted Gross Profit 1 was $85.1 million, representing an Adjusted Gross Margin of 74.0%
- SaaS clients increased 25% year-over-year to 106 thousand at the end of the second quarter of 2025. SaaS clients, excluding Keap, increased 8% year-over-year to 92 thousand
- Seasoned Net Revenue Retention 2 was 103% for the second quarter of 2025, an increase of 900 bps year-over-year, excluding Keap
- SaaS monthly Average Revenue per Unit (“ARPU”) 3 was $352 for the second quarter of 2025
- ThryvPay total payment volume was $90 million, an increase of 13% year-over-year
Vision & Discipline
Stepping back for context, Thryv’s focus is SMB SaaS products – the growth engine of the business, as noted. It also operates print media assets, such as local directories in several markets. That sector is inherently in decline, so the name of the game is to manage and offset those declines with SaaS.
This balancing act is something Thryv has been able to accomplish better than any other print publisher (many have tried). Led by Joe Walsh – an exec who’s both a visionary and disciplined operator – Thryv has consolidated much of the directory publishing world to achieve scale and acquire customers.
That last part is a key piece of the equation because legacy customers are prime targets for SaaS sales efforts. Given that prevailing strategic goal, Thryv continues to hit the right marks in its earnings, including SMB SaaS customers (again, 100,000+) and strong net revenue retention.
We’ll keep watching in Q3 and beyond to track Thryv’s progress on all the above fronts.
