Thryv Q2 Revenue Beats Consensus Aided By Saas Business Strength, Raises FY21 SaaS, Marketing Services Outlook

Thryv Holdings Inc THRY reported a second-quarter FY21 revenue decline of 4.1% to $291.05 million year-on-year, beating the analyst consensus of $287.1 million.
Segments And Drivers: The U.S. SaaS revenue rose 32.3% Y/Y to $41.4 million, U.S. Marketing Services revenue was $202.8 million, Thryv International Marketing Services revenue was $46.9 million.
SaaS ARPU increased 39.2% Y/Y to $323. SaaS monthly churn reduced 90 bps to 2.1%.
SaaS daily and weekly active users increased 27% Y/Y. Net Dollar Retention improved 18 percentage points to 92%.
Thryv held $15.8 million in cash and equivalents. The company generated $81.8 million in operating cash flow during the six months ended Jun. 30.
Margins: The adjusted gross margin contracted 260 bps to 67.1% as the costs rose 1.8% Y/Y.
The adjusted EBITDA margin contracted 567 bps to 33.2% as the expenses shot up 12.3% Y/Y.
The Q2 results reflected growth in its SaaS business led by the cloud migration of the small businesses.
EPS of $0.66 versus $0.34 last year.
Outlook: Thryv raised the FY21 U.S. SaaS guidance from $151 million - $158 million to $157 million – $160 million.
The company also increased the U.S Marketing Services revenue outlook from $740 million - $760 million to $750 million - $770 million.
Price Action: THRY shares traded higher by 1.86% at $34.96 on the last check Wednesday.

Earnings Calendar