New York City, New York – A closer look at Thryv Holdings (NASDAQ:THRY) through the eyes of a long-term investor reveals potential growth and value. Despite initial appearances of a declining yellow pages business and a struggling software division, Thryv emerges as a conservatively priced software company with promising growth prospects. The company’s strategic focus on transitioning customers from traditional marketing services to their expanding Software-as-a-Service (SaaS) segment sets them apart in the competitive market.

Thryv’s financial reporting divides into U.S. Marketing Services, U.S. SaaS, International Marketing Services, and International SaaS. While the print yellow pages business faces a steady decline, the SaaS CRM tool for small businesses shows promise with a gradual revenue growth of 20-25% annually. Leveraging their customer base, Thryv aims to drive the growing SaaS business with a customer acquisition strategy that has already shown positive results.

The undervaluation of Thryv is evident in their financial metrics, with net dollar retention below 100% and a shrinking customer base raising concerns. However, recent improvements in customer growth and retention rates indicate a positive shift in the company’s narrative. Thryv’s innovative features like ThryvPay and “Command Center” demonstrate a commitment to enhancing customer experience and expanding services.

Looking ahead, Thryv’s growth prospects in the global cloud-hosted software market, targeting small businesses, present significant opportunities. With ambitious revenue targets set for the SaaS segment by 2027 and beyond, Thryv’s potential to capture a larger market share is underscored by industry trends. Despite challenges and risks, including the rapid decline of the marketing services business, Thryv’s strategic initiatives position them for future success.

Strategically managing their sizable debt balance and focusing on generating free cash flow to pay down debts reflect Thryv’s commitment to financial stability. The company’s financial projections and discount cash flow valuation paint an optimistic picture of potential profitability and growth, offering investors a compelling investment opportunity with significant upside potential.

In conclusion, Thryv’s unique positioning in the SaaS market, coupled with their transition strategy and financial discipline, make them a promising investment opportunity for patient investors. The company’s ability to execute growth plans and capitalize on industry trends could lead to above-average returns in the coming years.