Thryv: Double-Digit SaaS Growth, Still Shrinking Revenue

Thryv Holdings (NASDAQ: THRY) reported double-digit SaaS revenue growth in its latest filing. Total revenue, however, continued to decline year over year. That gap is the risk event for shareholders.

A few years ago, the market valued Thryv as a traditional small-business marketing services company. Its performance depended on rapidly declining printed directories and a digital advertising business. Management has since pushed the model toward subscription software for appointment booking and customer management. The segment has grown at a double-digit rate.

The problem is that print revenue is falling faster than SaaS revenue can replace it. Total revenue is still dropping. Investors who focus on the SaaS segment alone miss the drag from the legacy business. That drag determines whether the company can eventually report a growing top line.

The better market read is that the transition is real but incomplete. A typical SaaS company trades at a multiple of revenue. Thryv's total revenue is still shrinking, so the same multiple applies to a declining base. Until total revenue stabilizes, the stock may remain range-bound. A rerating would require the print decline to slow materially or SaaS growth to accelerate enough to offset it.

What would reduce the risk: a deceleration in the print decline, or SaaS growth sustaining at current levels with a clearer path to covering the gap. What would make it worse: a faster drop in print revenue, or a deceleration in SaaS momentum. Thryv has not guided for a total revenue increase in the current year, according to the filing.

The next quarterly report will show whether the gap is narrowing. Shareholders need to track both the SaaS growth rate and the print decline rate. One number without the other does not tell the story.