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On Thursday, Needham analysts maintained a Buy rating and a $28.00 price target for Thryv Holdings, Inc. (NASDAQ:THRY), following a non-deal roadshow (NDR) with the company's CEO Joe Walsh and Head of Investor Relations Cameron Lessard. The stock, currently trading at $11.73, has seen challenging times with a nearly 49% decline over the past year. According to InvestingPro data, analyst targets range from $17 to $30, suggesting significant potential upside from current levels. The NDR, which took place on Wednesday, reinforced Needham's confidence in Thryv's ability to meet its significant but attainable goals set during its Analyst Day in December 2024.
The company's focus for fiscal year 2025 is to increase the number of legacy marketing services (MS) customers transitioning to its Software (ETR:SOWGn) as a Service (SaaS) platform and to boost product adoption within its existing customer base. This strategy is expected to shield the company from macroeconomic concerns affecting small and medium-sized businesses (SMBs). Management indicated a peak in leverage during the second quarter, with a forecasted reduction of approximately 40% by the fourth quarter. InvestingPro analysis shows the company maintains a current ratio of 1.07 and generated $56.25 million in levered free cash flow over the last twelve months, demonstrating operational stability despite current challenges.
The integration of Keap, a sales and marketing automation platform acquired by Thryv, is progressing on schedule, with sales synergies surpassing expectations. These positive developments align with the feedback received during the company's partner conference the previous week.
Thryv Holdings, Inc. has been working diligently to expand its SaaS offerings, aiming to provide comprehensive solutions for SMBs. The company's efforts to convert more customers to its SaaS platform and encourage greater product adoption among its existing clients are key components of its growth strategy.
The confidence expressed by Thryv's management during the NDR, combined with the successful integration of Keap and the achievement of sales synergies, provide a strong foundation for the company's continued growth and stability in the face of broader market challenges. While currently unprofitable, InvestingPro analysts expect the company to return to profitability this year, with an EPS forecast of $1.52 for FY2025. For deeper insights into Thryv's financial health and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.
In other recent news, Thryv Holdings Inc. reported strong financial results for Q4 2024, with its SaaS segment experiencing a 41% year-over-year increase in revenue, reaching $104.3 million. Total (EPA:TTEF) subscribers rose by 73% to 114,000, reflecting the company's growing customer base. The acquisition of Keap was completed, contributing to an enhanced partner channel, and Thryv prepaid $78.8 million in debt, improving its financial position. Analyst firms have provided mixed ratings on Thryv. Needham maintained a Buy rating with a $28 price target, citing optimism about the revenue synergies from the Keap acquisition. RBC Capital Markets initiated coverage with a "Sector Perform" rating and a $17 price target, noting Thryv's transition to a SaaS-focused business model. These developments highlight Thryv's strategic efforts to integrate Keap and expand its SaaS offerings, aiming to drive future growth.
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