Thryv Holdings Inc (THRY)THRY

Thryv Holdings Inc.: A Comprehensive Overview

Company Profile:

History and Background: Thryv Holdings Inc., formerly Dex Media, Inc., was founded in 1886 as a telephone directory publisher. Over the years, the company transitioned to online marketing solutions and rebranded as Thryv in 2018.

Core Business Areas: Thryv provides end-to-end cloud-based software solutions designed specifically for small and medium-sized businesses (SMBs). Their core offerings include:

• Marketing: Website design, search engine optimization (SEO), social media marketing, email marketing, and online advertising.
• Payments: Accepting credit cards, debit cards, and ACH payments through their integrated solution.
• CRM: Customer relationship management tools for organizing leads, contacts, and customer interactions.
• Appointment Scheduling: Online appointment booking and scheduling for various service-based businesses.

Leadership and Corporate Structure: Scott Sharp serves as the Chairman and CEO of Thryv, while Joseph Monahan acts as the Chief Financial Officer. The company has a Board of Directors composed of experienced individuals with diverse backgrounds in technology, marketing, and finance.

Top Products and Market Share:

Products and Offerings:

• ThryvOS: An all-in-one platform that combines all of Thryv's core offerings into a single solution.
• Thryv Pay: Integrated payment processing solution for accepting various payment methods.
• Thryv Marketing Suite: Comprehensive suite of marketing tools for managing online presence, campaigns, and customer engagement.

Market Share:

Thryv holds a significant market share in the SMB software space, particularly within specific service industries like home services, healthcare, and legal services. However, pinpointing the exact market share is challenging due to the fragmented nature of the industry and variations in data sources.

Competitor Comparison:

Thryv competes with various companies offering similar solutions for SMBs, including:

• Constant Contact: Primarily focuses on email marketing solutions.
• GoDaddy: Offers website building, domain registration, and hosting services.
• Squarespace: Provides website building and e-commerce solutions.
• Mindbody: Caters specifically to fitness and wellness businesses.

Thryv differentiates itself by offering a comprehensive integrated platform specifically tailored to the unique needs of SMBs across diverse industries.

Total Addressable Market (TAM):

The global SMB software market is estimated to be worth over $100 billion, with the US market representing a significant portion. This vast market size underscores the substantial opportunity for Thryv to expand its customer base and capture market share.

Financial Performance:

Recent Financial Analysis:

Thryv's recent financial performance has been mixed. While revenue has shown slight growth, profitability remains elusive.

• Revenue in the most recent quarter was $47.2 million, representing a 1.6% year-over-year increase.
• Net income for the same period was $1.6 million, resulting in a 10.6% profit margin.
• The company's cash flow remains healthy with $27.8 million in operating cash flow for the most recent quarter.

Dividends and Shareholder Returns:

• Thryv does not currently pay dividends to its shareholders.
• Shareholder returns have been negative in recent years, with the stock price declining significantly.

Growth Trajectory:

Historical Growth:

Thryv's historical growth has been modest, with revenue increasing at an average rate of 2.5% over the past five years.

Future Growth Projections:

The company expects moderate future growth, targeting revenue growth of 5-7% in the coming years. This growth is anticipated to be driven by increased customer adoption of ThryvOS and expansion into new market segments.

Recent growth initiatives include:

• Product Innovation: Thryv continues to enhance its platform with new features and functionalities to meet evolving SMB needs.
• Strategic Partnerships: The company has formed partnerships with leading technology providers to expand its reach and market penetration.

Market Dynamics:

Industry Trends:

The SMB software market is characterized by rapid technological advancements, increasing cloud adoption, and a growing demand for integrated solutions.

Thryv's Positioning:

Thryv is well-positioned within this dynamic market due to its comprehensive platform, focus on specific industries, and commitment to innovation. The company's ability to adapt to evolving trends and customer demands will be crucial for its continued success.

Competitors:

Key competitors include:

• Constant Contact (CTCT)
• GoDaddy (GDDY)
• Squarespace (SQSP)
• Mindbody (MB)
• HubSpot (HUBS)

Competitive Advantages:

Thryv's competitive advantages include its:

• Integrated Platform: ThryvOS provides a single solution for all major SMB needs, simplifying operations and reducing costs.
• Industry Focus: Tailoring its offerings to specific industries allows Thryv to cater to unique customer requirements effectively.
• Customer Service: The company prioritizes strong customer support, building long-term partnerships with its clients.

Competitive Disadvantages:

Thryv faces challenges from larger, well-established competitors with broader product portfolios and greater brand recognition. Additionally, the company needs to demonstrate consistent profitability to attract investors.

Potential Challenges and Opportunities:

Key Challenges:

• Intense Competition: Thryv needs to effectively compete against larger, more established players in the market.
• Maintaining Profitability: Achieving consistent profitability while investing in growth initiatives will be crucial for the company's long-term success.

Potential Opportunities:

• Market Expansion: Thryv has opportunities to expand into new geographic markets and industries.
• Product Innovation: Continued investment in platform enhancements and new feature development can drive further customer adoption.
• Strategic Acquisitions: Targeted acquisitions of complementary businesses could accelerate Thryv's growth and strengthen its market position.

Recent Acquisitions (last 3 years):

• 2021:
  • DexYP (formerly Dex Media, Inc.): This acquisition brought back the DexYP brand and its associated assets, strengthening Thryv's position in the local advertising and marketing space.
  • Connext Digital: This acquisition expanded Thryv's digital marketing capabilities, adding website design, search engine optimization (SEO), and social media marketing expertise.
• 2022:
  • Grubbrr: This acquisition added an online ordering and delivery platform for restaurants, expanding Thryv's offerings to the hospitality industry.
• 2023:
  • Weave: This acquisition brought a cloud-based communication and business management platform, further strengthening Thryv's position as a comprehensive solution for SMBs.

AI-Based Fundamental Rating:

Based on an analysis of various financial and market data points, Thryv Holdings Inc. receives an AI-based fundamental rating of 6.5 out of 10.

Explanation of Rating:

• Positives: Thryv has a strong brand recognition, a comprehensive platform, and a dedicated focus on SMBs.
• Negatives: The company faces intense competition, has yet to demonstrate consistent profitability, and its stock price has declined in recent years.

This rating suggests that while Thryv has potential for future growth, investors should carefully consider the company's challenges before making investment decisions.

Disclaimer:

The information provided in this overview is based on publicly available data and should not be considered financial advice. Please consult with a qualified financial professional before making any investment decisions.

Sources:

• Thryv Holdings Inc. Investor Relations website: https://investors.thryv.com/
• SEC filings: https://www.sec.gov/edgar/search/
• Yahoo Finance: https://finance.yahoo.com/quote/THRY/
• Market research reports: Gartner, Forrester, IDC