DALLAS - Thryv Holdings, Inc. (NASDAQ: THRY), a provider of small business software solutions, has initiated a public offering of $75 million in common stock. The company also plans to offer a 30-day option for the underwriter to purchase up to an additional 15% of the shares. The proceeds are earmarked to partially fund the acquisition of Infusion Software, Inc., known as Keap.
RBC Capital Markets, LLC serves as the sole book-running manager for the stock offering. The shares may be sold on the Nasdaq exchange, over-the-counter market, or through negotiated transactions, contingent on market conditions.
The offering is made through a shelf registration statement on Form S-3ASR under the Securities Act of 1933, as amended. A preliminary prospectus supplement and accompanying prospectus will be made available on the SEC's website.
Thryv's platform is designed to assist small business owners in managing operations and customer relations by consolidating various functions into a single solution. The company claims that its platform can save business owners up to 20 hours per week. Currently, around 300,000 businesses globally utilize Thryv's services.
The press release includes forward-looking statements regarding the offering and use of proceeds, as well as the anticipated acquisition of Keap. However, these statements are subject to market risks and uncertainties that could affect the actual outcomes.
This information is based on a press release statement, and the offering is subject to market conditions and other factors. The sale of securities in certain jurisdictions may be restricted by law. The press release does not constitute an offer to sell or a solicitation of an offer to buy any securities.
"In other recent news, Thryv Holdings, Inc. reported robust growth in the Software as a Service (SaaS) segment for the second quarter of 2024, with a significant 25% year-over-year increase in SaaS revenue reaching $77.8 million. The adjusted SaaS EBITDA also rose, exceeding 60% year-over-year to $10 million. Craig-Hallum initiated coverage on Thryv's stock with a Buy rating, highlighting the potential in the company's SaaS offerings and the successful transition of nearly 100,000 clients to Thryv's recurring revenue model. The firm also noted Thryv's consistent SaaS segment growth rate and expanding margins. Thryv is also exploring merger and acquisition opportunities to strengthen its market position. The company projects that SaaS revenue will constitute over 50% of their consolidated revenues by 2025. Full-year guidance for SaaS revenue is reiterated to be between $326 million and $329 million, with SaaS adjusted EBITDA increased to a range of $30 million to $32 million. These recent developments indicate a strong performance and a focus on enhancing Thryv AI capabilities and considering a freemium option for future product rollouts."
InvestingPro Insights
Thryv Holdings' recent move to initiate a $75 million public offering aligns with its strategic growth plans, particularly the acquisition of Infusion Software (Keap). This decision comes at a time when the company's financial metrics paint an interesting picture.
According to InvestingPro data, Thryv's market capitalization stands at $666.89 million, reflecting its position in the small business software solutions market. The company's revenue for the last twelve months as of Q2 2024 was $877.69 million, with a gross profit margin of 64.44%, indicating a strong ability to generate profit from its core business activities.
However, it's worth noting that Thryv has experienced a revenue decline of 16.96% over the same period. This context makes the current stock offering and planned acquisition particularly significant, as they may be part of a strategy to reverse this trend and drive future growth.
InvestingPro Tips provide additional insights into Thryv's financial health. One tip indicates that Thryv's liquid assets exceed its short-term obligations, suggesting a solid short-term financial position. This could be reassuring for potential investors in the new stock offering. Another tip points out that while the company wasn't profitable over the last twelve months, analysts predict it will be profitable this year. This projection could be a factor in the timing of the stock offering and acquisition plans.
For investors seeking a more comprehensive analysis, InvestingPro offers 7 additional tips for Thryv Holdings, providing a deeper understanding of the company's financial position and prospects.
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