Thryv Holdings Inc (THRY) saw its stock price plummet 5.90% in pre-market trading on Thursday following the release of its third-quarter earnings report. While the company reported revenue growth and beat top-line estimates, a significant earnings per share (EPS) miss appears to have spooked investors.
The software and marketing services provider reported Q3 revenue of $201.555 million, slightly surpassing analyst expectations of $200.8 million and marking a 12.07% increase from the same period last year. However, Thryv's earnings per share came in at $0.13, falling well short of the consensus estimate of $0.25. This represents a 48.82% miss, despite being a significant improvement from the adjusted loss of $0.36 per share reported in the previous year.
Thryv's SaaS (Software as a Service) segment showed strong growth, with revenue increasing by 33% year-over-year. The company also provided a full-year SaaS revenue outlook of $460.0 to $463.0 million. However, the adjusted EBITDA of $40.8 million missed analyst estimates of $41.5 million, potentially contributing to investor concerns about profitability. As the market digests these mixed results, the pre-market plunge suggests that investors are focusing more on the bottom-line miss than the top-line growth, raising questions about Thryv's ability to translate revenue increases into proportional earnings growth.
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