What happened

Shares of digital marketing company Thryv (THRY 4.52%) rose sharply on Thursday, trading as much as 30.6% higher during the session. At market close, the stock was up by 21.4%

Those gains followed news that Thryv had set a price of $23.50 per share for its recently announced secondary stock offering, and boosted the offering's size from 3.5 million shares to 4.24 million shares.

A chart showing a stock price rising.

Image source: Getty Images.

So what

On Monday, Thryv announced that it was arranging a secondary offering of 3.5 million shares already owned by some of its stockholders. All the funds raised from the stock sales will go to those shareholders, not to the company. At the time, the company also said that the offering's underwriters would be given the option to purchase 525,000 more shares. On Thursday, the company and the shareholders increased the size of that offering to 4.24 million shares, and boosted the underwriters' option proportionally as well.

The successful stock sale builds on the recent momentum in the company's underlying business. Earlier this month, Thryv said its software-as-a-service revenue increased 17% year over year. Even more, average revenue per software-as-a-service customer rose from $240 in the year-ago period to $304.

Total revenue during the quarter, however, fell 12% year over year.

Now what

Along with the company's first-quarter results, management raised its outlook for software-as-a-service revenue and it announced a ThryvPay Mobile App. Total fiscal 2021 software-as-a-service revenue is expected to be between $151 million to $153 million -- well ahead of its previous outlook for revenues in the $140 million to $145 million range.