Thryv Holdings Boosts SMB Solutions and Growth Strategy with Keap Acquisition and New Centers

Thryv Holdings Enhances SMB Solutions Through Strategic Acquisition and New Centers

During its recent Analyst Day event, Thryv Holdings, Inc. (NASDAQ:THRY) unveils an ambitious strategy to bolster its comprehensive software platform tailored for small businesses. Central to this initiative is the acquisition of Infusion Software, Inc., operating under the brand name Keap®. This acquisition significantly enhances Thryv's marketing automation capabilities, allowing the company to provide more sophisticated marketing and sales solutions to its growing client base. Currently, Thryv serves over 100,000 small business clients, with a focus on improving communication and fostering brand growth. The integration of Keap® not only broadens Thryv's offerings but also strengthens its global partner channel, positioning the company for accelerated growth in the competitive small business software market.

Thryv's long-term vision includes achieving majority Software as a Service (SaaS) revenue by 2025, with projected SaaS EBITDA making up the majority of its consolidated EBITDA by 2026. The firm expects to see substantial growth in total revenue and EBITDA by 2027 and beyond, driven by the synergies from the Keap® acquisition and its strategy to migrate existing digital clients to SaaS subscriptions. The robust financial outlook underscores Thryv's commitment to expanding its SaaS model, which is anticipated to yield an organic revenue growth of 18%-20% in 2025. The strategic shift towards SaaS not only aligns with industry trends but also addresses the evolving needs of small and medium-sized businesses (SMBs) seeking reliable and efficient solutions.

To further enhance its service offerings, Thryv announces the launch of two new operational centers: the Thryv Reporting Center™ and the Thryv Workforce Center™. The Reporting Center provides essential performance metrics, enabling businesses to make quick, informed decisions based on real-time data. Meanwhile, the Workforce Center, set to debut in late 2025, aims to simplify employee management and payroll processes, addressing a critical pain point for SMBs. These initiatives complement Thryv’s strategic exit from traditional marketing services by 2028, as the company looks to streamline operations and focus on delivering high-value SaaS solutions. This strategic pivot is expected to generate significant unlevered free cash flow, estimated at $250-$300 million from 2025 to 2030, further solidifying Thryv's position in the market.

In addition to these developments, Thryv plans to extend its print directory cycle from 18 to 24 months, reflecting a shift in service delivery as the company pivots towards digital solutions. The integration of Keap® is expected to enhance the company’s overall SaaS adjusted gross margin to 74%, with additional synergies contributing to a mid-teens margin for SaaS EBITDA. Thryv's proactive approach and forward-looking strategies signify its commitment to supporting SMBs with cutting-edge technology and streamlined services.