Beamr video compression achieves up to 50% improvement for AVs
On Thursday, RBC Capital Markets began coverage on shares of Thryv Holdings, Inc. (NASDAQ:THRY), assigning a "Sector Perform" rating and establishing a price target of $17.00, representing about 14% upside from the current price of $14.87. The research firm’s assessment is based on Thryv’s ongoing transformation from a marketing services provider to a software-as-a-service (SaaS) platform that focuses on customer relationship management (CRM) for small and medium-sized businesses (SMBs). According to InvestingPro data, the company currently maintains a market capitalization of $645 million.
According to RBC Capital Markets, Thryv has reached a significant milestone where SaaS revenues now account for over half of the company’s total revenue of $824 million. While currently unprofitable, InvestingPro analysis indicates the company is expected to return to profitability this year, with a healthy gross margin of 65%. The analysts project that SaaS EBITDA will mirror this achievement by 2026. The company’s next phase involves demonstrating both gross and net retention rates to fully capitalize on its increasing SaaS revenue composition.
The analysts at RBC Capital emphasize that execution is crucial for Thryv as it continues to shift its business model. They suggest that successful implementation of the company’s strategy should be reflected in its market valuation over time. Based on InvestingPro’s Fair Value analysis, the stock appears fairly valued at current levels. Subscribers to InvestingPro can access additional insights through the comprehensive Pro Research Report, which includes detailed analysis of Thryv’s financial health, valuation metrics, and growth prospects.
The report by RBC Capital Markets indicates that the future valuation of Thryv will likely be influenced by its ability to showcase sustained customer retention and growth within its SaaS segment. The analysts believe that as the company progresses through its transition, these factors will become increasingly important in assessing its financial health and market position.
Thryv’s transition is a strategic move to better align with the growing demand for SaaS solutions among SMBs, which often seek out efficient and scalable CRM platforms to manage their customer interactions and business operations. The company’s evolution into a SaaS-focused entity represents its response to the changing landscape of business technology services.
In other recent news, Thryv Holdings Inc. reported strong financial results for Q4 2024, with a notable 41% year-over-year increase in revenue from its Software (ETR:SOWGn) as a Service (SaaS) segment, totaling $104.3 million. The company also completed the acquisition of Keap, a move expected to enhance its partner channel and contribute between $75 million to $78 million in 2025. Thryv prepaid $78.8 million in debt for 2024, improving its financial position. Analysts from firms like Craig Hallum and Needham have shown interest in the company’s strategic direction, particularly the integration of Keap and the potential for cross-selling opportunities. The company projects its total SaaS revenue for 2025 to be between $464.5 million and $474 million, with SaaS anticipated to make up 60% of total revenues. Thryv’s ongoing focus on expanding its SaaS offerings and improving financial health has been well-received by investors. The company’s strategic initiatives and positive earnings report reflect a strong position in the evolving SaaS market.
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