Release Date: February 27, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: Can you provide some early commentary on the cross-sell process with Keap customers and Thryv centers? A: Joe Walsh, Chairman and CEO, explained that the cross-sell process is underway, although still in early stages since the acquisition was completed recently. They have begun some cross-sales, with Keap customers showing interest in Thryv's marketing center products. Thryv's existing customers are also being introduced to Keap's automation tools to enhance lead management. The company expects about $5 million in cross-sell revenue this year, with significant interest from both customer bases.
Q: As you target larger businesses, are there any changes in the selling cycles or evidence of cross-selling into that group? A: Joe Walsh noted that while they are targeting slightly larger businesses, the difference is not significant. The main change is the demand for more powerful reporting from these businesses. Thryv has addressed this with the launch of the Reporting Center, which enhances client satisfaction and makes the platform more attractive to larger businesses.
Q: What drove the upside in the Keap acquisition performance in Q4, and is there potential for further upside in fiscal '25? A: Paul Rouse, CFO, attributed the Q4 outperformance to conservative initial estimates. While they exceeded expectations, the company plans to maintain its fiscal '25 guidance for Keap's contribution, citing the challenges of integrating businesses and a cautious approach.
Q: What feedback have you received from customers experiencing the cross-sell between Thryv and Keap? A: Joe Walsh mentioned that feedback has been positive, particularly from Keap customers who benefit from Thryv's marketing center in generating leads. Thryv customers are also expected to benefit from Keap's automation tools. The integration allows for customized vertical automation, enhancing the value proposition for specific industries.
Q: Can you update us on when you expect SaaS to surpass marketing services in terms of EBITDA contribution? A: Joe Walsh reiterated that they anticipate SaaS to become the majority source of EBITDA in 2026. By 2027, they expect overall top-line growth driven by SaaS, even as marketing services continue to decline. The exact timing within those years is not specified, but the transition is a key focus.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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