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Stock Analysis & ValuationThryv Holdings, Inc. (THRY)

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$4.81
Sector Valuation Confidence Level
High
Valuation methodValue, $Upside, %
Artificial intelligence (AI)45.70850
Intrinsic value (DCF)6.6839
Graham-Dodd Methodn/a
Graham Formula3.25-32

Strategic Investment Analysis

Company Overview

Thryv Holdings, Inc. (NASDAQ: THRY) is a leading provider of digital marketing solutions and cloud-based tools tailored for small-to-medium-sized businesses (SMBs). Operating in the Internet Content & Information sector, Thryv offers an end-to-end customer experience platform, Thryv, which integrates business management, marketing automation, and payment solutions. The company also provides Hub by Thryv for franchisors, Thryv Leads for local lead generation, and ThryvPay for seamless payment processing. Additionally, Thryv delivers print and digital marketing solutions, including yellow pages directories and search engine optimization tools. Formerly known as Dex Media Holdings, Inc., the company rebranded in 2019 to reflect its modernized focus on digital transformation for SMBs. Headquartered in DFW Airport, Texas, Thryv serves as a critical enabler for SMBs looking to enhance their digital presence and operational efficiency in an increasingly competitive landscape.

Investment Summary

Thryv Holdings presents a mixed investment profile. On the positive side, the company operates in the high-growth SMB digital solutions market, offering a diversified suite of SaaS and marketing services. Its transition from traditional print directories to digital tools positions it well for future growth. However, the company reported a net loss of $74.2 million in the latest fiscal year, raising concerns about profitability. With a market cap of $569 million and a beta of 0.988, Thryv is moderately volatile but closely tracks the broader market. The lack of dividends and negative EPS (-$2.00) may deter income-focused investors, but its strong operating cash flow ($89.8 million) suggests potential for reinvestment and growth. Investors should weigh its growth prospects against its current financial challenges.

Competitive Analysis

Thryv Holdings competes in the crowded SMB digital solutions market, where differentiation is key. Its competitive advantage lies in its integrated platform, Thryv, which combines CRM, marketing automation, and payment processing—a unique offering that reduces the need for SMBs to juggle multiple vendors. The company’s legacy in print directories (e.g., yellowpages.com) provides an established customer base, but its shift to digital solutions is critical as the industry moves away from print. Thryv’s focus on franchisors via Hub by Thryv is a niche strength, offering real-time multi-location management—a feature not all competitors provide. However, Thryv faces stiff competition from larger SaaS players like Salesforce and HubSpot, which dominate the CRM space, and from specialized marketing platforms like Yelp and Angi. Its smaller scale relative to these giants may limit its ability to invest in R&D and global expansion. Thryv’s challenge is to leverage its SMB-centric approach while scaling its SaaS offerings to compete with more established players.

Major Competitors

  • Salesforce, Inc. (CRM): Salesforce is the global leader in CRM software, offering robust solutions for businesses of all sizes. Its scale, extensive feature set, and strong brand give it an edge over Thryv, particularly for larger SMBs. However, Salesforce’s complexity and higher cost may make Thryv’s simpler, SMB-focused platform more appealing to smaller businesses.
  • HubSpot, Inc. (HUBS): HubSpot specializes in inbound marketing and sales software, competing directly with Thryv’s marketing services. HubSpot’s user-friendly interface and strong content marketing tools are strengths, but Thryv’s integrated payment solution (ThryvPay) and franchisor-focused Hub by Thryv offer unique differentiation.
  • Yelp Inc. (YELP): Yelp is a dominant player in local business reviews and advertising, overlapping with Thryv’s lead generation services. Yelp’s vast user base and review ecosystem are strengths, but Thryv’s broader SaaS platform (including CRM and payments) provides a more holistic solution for SMBs.
  • Angi Inc. (ANGI): Angi focuses on home services lead generation, competing with Thryv Leads. Angi’s specialization in home services is a strength, but Thryv’s wider industry coverage and SaaS tools give it versatility. Angi’s recent profitability struggles mirror Thryv’s, highlighting sector-wide challenges.
  • Alphabet Inc. (Google) (GOOGL): Google’s suite of advertising tools (e.g., Google Ads, Local Services Ads) competes with Thryv’s digital marketing solutions. Google’s unparalleled reach and data capabilities are formidable, but Thryv’s integrated platform and personalized SMB support offer a counterbalance.
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