Thryv Holdings Inc (THRY) shares plunged 5.26% in pre-market trading on Thursday following the release of its first-quarter 2025 financial results. The company, which is transitioning to a software-focused business model, reported mixed results that highlighted both challenges and progress in its strategic shift.

Thryv reported a quarterly loss of $0.22 per share, missing analyst estimates of $0.14 per share and marking a significant decline from the $0.22 earnings per share in the same quarter last year. The company's net income for Q1 2025 stood at a loss of $9.6 million. Despite the earnings miss, Thryv's quarterly sales of $181.37 million surpassed analyst expectations of $173.83 million, although this figure represents a 22.37% decrease from the $233.62 million reported in the previous year.

The company's transition towards a software-as-a-service (SaaS) model showed promising signs, with SaaS revenue now accounting for over 60% of total sales. Thryv reported a 50% surge in Q1 SaaS sales and achieved a record net revenue retention rate of 103%. However, the overall revenue decline and the reported net loss reflect the challenges of this transition. As Thryv continues to focus on subscriber acquisition and platform upgrades, investors will be closely watching how quickly the company can translate its SaaS growth into improved profitability.