Thryv Holdings, Inc. (THRY) has been the subject of a bullish thesis put forth by Unconventional Value on Substack. As of April 15th, THRY’s shares were trading at $11.44, with trailing and forward P/E ratios of 15.31 and 13 respectively according to Yahoo Finance.
Thryv is currently undergoing a significant transformation from a traditional Yellow Pages operator to a scalable SaaS platform tailored for small businesses. While the company has been weighed down by its declining Marketing Services segment in the past, the investment narrative is now evolving. A multi-product SaaS suite, strong upsell opportunities, and an attractive valuation are all coming together as performance metrics begin to show real progress.
The transition from a single-product CRM offering to a modular, freemium-driven platform has been key to Thryv’s recent success. In 2024, the company added more net new SaaS clients than in the past six years combined, with a significant increase in multi-product adoption. This shift has led to higher margins, improved retention rates, expanding gross margins, and growing EBITDA margins.
Thryv’s strategy of migrating legacy customers through its Marketing Center has been effective in driving growth and reducing costs. The recent acquisition of Keap has further bolstered the company’s momentum by providing cross-sell opportunities and enhancing lead automation. Additionally, the Command Center’s large base of free users serves as a promising source for future monetization.
Despite these positive developments, concerns remain around churn and sales productivity. While the recent migration of legacy subscribers was successful, core sales efforts have shown a net subscriber loss excluding this group. However, management’s focus on larger, multi-location accounts is expected to drive future growth.
Under the leadership of CEO Joe Walsh, Thryv has followed a strategic playbook inspired by Hubspot, positioning the company as a platform for businesses just below the Hubspot tier. With high-margin print revenues expected to last until 2030 and Marketing Services winding down by 2028, Thryv is on track to become a pure SaaS company with stronger margins and growth potential.
Thryv’s SaaS business is projected to deliver a 17% revenue CAGR over the next six years, with free cash flow equaling approximately 80% of the current enterprise value. The company is expected to return to consolidated growth by 2027, offering an attractive risk/reward opportunity for investors.
While Thryv is not among the 30 Most Popular Stocks Among Hedge Funds, 23 hedge fund portfolios held THRY at the end of the fourth quarter. As investors weigh the potential of THRY as an investment, there are other AI stocks with greater promise for delivering higher returns in a shorter timeframe. For those seeking a promising AI stock trading at less than 5 times its earnings, consider exploring other options.
In conclusion, Thryv Holdings, Inc. (THRY) is undergoing a transformation that positions it for future growth and success in the SaaS market. With a strong leadership team, strategic acquisitions, and a focus on customer value, Thryv is poised for continued success in the years to come.
