We recently published a list of Billionaire John Paulson’s 10 Stocks with Huge Upside Potential. In this article, we are going to take a look at where Thryv Holdings, Inc. (NASDAQ:THRY) stands against other stocks with huge upside potential.
John Alfred Paulson is an American billionaire hedge fund manager who founded Paulson & Co. in 1994. It is a New York-based fund management firm that specializes in private equity and hedge funds. Paulson graduated as valedictorian of his class with a summa cum laude distinction in finance from NYU’s College of Business and Public Administration in 1978. He also pursued an MBA at Harvard Business School as a George F. Baker Scholar, which is a prestigious recognition awarded to the top 5% of his class. It’s supported by the Sidney J. Weinberg/Goldman Sachs scholarship, which he earned in 1980. With a client base of 20, the firm’s latest 13F filing for Q4 2024 revealed ~$1.65 billion in managed 13F securities and a top 10 holdings concentration of 98.55%.
The firm is known for its expertise in event-driven arbitrage strategies, such as merger arbitrage, bankruptcy reorganizations, and other corporate events. Paulson & Co. also pursues investments in distressed debt opportunities throughout the US and Western Europe, with the help of its strategic insights and extensive market experience. John Paulson is now also bullish on gold after 15 years and expects its price to reach ~$5,000 per ounce by 2028. He is the largest shareholder in Perpetua Resources. On April 29, Reuters reported that in a recent interview, Paulson reinforced that his conviction in gold is underpinned by the analysis of central bank buying trends and rising global trade tensions. He highlighted the inclination of central banks and individuals to seek stable stores of value now and suggested that gold will therefore enhance its global standing. Paulson believes that the Western confiscation of Russia’s foreign reserve holdings following the Ukraine invasion is one of the reasons behind the anticipated appreciation of gold prices.
Our Methodology
To compile the list of billionaire John Paulson’s 10 stocks with huge upside potential, we sifted through Q4 2024 13F filings of Paulson & Co. from Insider Monkey. From these filings, we checked each stock’s upside potential from CNN and ranked the stocks in ascending order of this upside potential. We have also added Paulson & Co.’s stake in each company and the hedge fund sentiment around each stock.
Note: All data was sourced on May 2.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A businessperson using a mobile device to illustrate the use of Thryv’s end-to-end customer experience platform.
Thryv Holdings, Inc. (NASDAQ:THRY)
Paulson & Co.’s Stake: $63.34 million
Number of Hedge Fund Holders: 23
Average Upside Potential as of May 2: 92.93%
Thryv Holdings, Inc. (NASDAQ:THRY) provides digital marketing solutions and cloud-based tools to small-to-medium-sized businesses in the US. It operates in two segments: Thryv Marketing Services and Thryv SaaS. It was formerly known as Dex Media Holdings Inc. and was incorporated in 2012.
In Q1 2025, the company’s SaaS revenue reached $111.1 million, which was up 50% year-over-year. SaaS revenue now constitutes 61% of the company’s total revenue as of Q1. The Average Revenue Per User (ARPU) for SaaS also increased to $335 per month, fueled by newer products for existing customers. This is further supported by a seasoned net revenue retention rate of 103%. The total number of SaaS subscribers grew by 37% to 96,000.
Thryv has observed that when a customer adopts a second paid product, the churn rate drops significantly, sometimes by as much as half. Currently, 17.2% of the SaaS subscribers use multiple paid products, and the number of clients with two or more Thryv SaaS products grew to 16,000, up from 12,000 in the prior year. For Q2, Thryv Holdings, Inc. (NASDAQ:THRY) anticipates SaaS revenue to be in the range of $113 to $115 million.
Laughing Water Capital is optimistic about Thryv and stated the following regarding Thryv Holdings, Inc. (NASDAQ:THRY) in its Q2 2024 investor letter:
“Thryv Holdings, Inc. (NASDAQ:THRY) – Thryv, our growing SMB software business that is milking its declining Marketing Services business for cash flow, grew SAAS customers 30% YoY, increased full year guidance, announced that seasoned net dollar retention improved by 300 bps, refinanced their debt on better terms, and initiated a share repurchase program during the quarter. These are all undeniably positive developments, but on the negative side of the ledger, the decline of their Marketing Services business has accelerated a touch, and shares have sold off sharply.
Last quarter under separate cover I included a longer writeup on THRY where I explained what I think is happening under the surface at THRY with the Marketing Services business and the new Marketing Center SAAS product, and how I believe the economics of Marketing Center will prove to be wildly superior to the economics of the Marketing Services business. Thus far the market not only does not care, but in fact seems to be punishing THRY for what I believe will be a positive evolution of their business.
Management has indicated that revenue from the SAAS business will eclipse revenue from the Marketing Services business around this time next year, at which point THRY should start to trade more like the software business it is than the marketing business it was. Unsurprisingly, insiders at THRY once again bought shares in the quarter.”
Overall, THRY ranks 3rd on our list of billionaire John Paulson’s stocks with huge upside potential. While we acknowledge the potential of THRY as an investment, our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than THRY but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.
