Ancestry.com Ends 2011 With 1.7 Million Subscribers; Sees Mid-to-High Teens Revenue Growth for 2012
January 05 2012 - 9:00AM
Ancestry.com Inc. (Nasdaq:ACOM), the world's largest online family
history resource, today reported that it ended the fourth quarter
with 1,703,000 paying subscribers, above the company's guidance of
1,685,000 – 1,695,000 subscribers. Monthly churn[1] declined to
3.8% in the quarter, down from third quarter 2011 and fourth
quarter 2010. The company also noted it remains comfortable with
its previously issued financial guidance for the fourth quarter and
full year ended December 31, 2011.
The company also announced today that it currently expects 2012
revenue growth in the mid-to-high teens. 2012 adjusted
EBITDA[2] margins are expected to expand year-over-year, exclusive
of ongoing investment in the company's DNA product initiative,
which could range from $10-$15 million in 2012.
Ancestry.com anticipates reporting its full financial and
operating results for the 2011 fourth quarter and fiscal year on
February 15, 2012. The subscriber results are being released in
conjunction with the company's appearance today at the Citi
Investment Research 2011 Global Entertainment Media and
Telecommunications Conference in San Francisco, California. A
webcast of this event will be available from the Ancestry.com Web
site, http://ir.ancestry.com/. The webcast replay will also be
available until March 31, 2012 on the investor relations section of
the Ancestry.com Web site, http://ir.ancestry.com/, under Events
and Presentations.
About Ancestry.com
Ancestry.com Inc. (Nasdaq:ACOM) is the world's largest online
family history resource, with approximately 1.7 million paying
subscribers. More than 7 billion records have been added to the
site in the past 15 years. Ancestry users have created more than 29
million family trees containing over 3 billion profiles. In
addition to its flagship site www.ancestry.com, Ancestry.com offers
localized Web sites designed to empower people to discover,
preserve and share their family history.
Use of Non-GAAP Measures
Management believes that adjusted EBITDA is a useful measure of
operating performance because it excludes items that we do not
consider indicative of our core performance. In determining
adjusted EBITDA, we adjust net income for such things as interest,
taxes, stock-based compensation expense and certain non-cash and
non-recurring items. However, non-GAAP measures, such as
adjusted EBITDA, should be considered in addition to, not as a
substitute for or superior to, net income and net cash provided by
operating activities, or other financial measures prepared in
accordance with GAAP.
Our management uses adjusted EBITDA as a measure of operating
performance; for planning purposes, including the preparation of
our annual operating budget; to allocate resources to enhance the
financial performance of our business; to evaluate the
effectiveness of our business strategies; to provide consistency
and comparability with past financial performance; to facilitate a
comparison of our results with those of other companies; and in
communications with our board of directors concerning our financial
performance. We also use adjusted EBITDA as a factor when
determining the incentive compensation pool.
Forward-looking Statements
This press release contains forward-looking statements. These
statements relate to future events or to future financial
performance and involve known and unknown risks, uncertainties, and
other factors that may cause our actual results, levels of
activity, performance, or achievements to be materially different
from those anticipated in these forward-looking statements. In some
cases, you can identify forward-looking statements by the use of
words such as "may," "designed," "expect," "intend," "seek,"
"anticipate," "believe," "estimate," "predict," "potential,"
"should," "continue" or "will" or the negative of these terms or
other comparable terminology. These statements include statements
describing our activities to enhance subscribers' experience, our
activities to promote and enhance our products, our business
outlook, the size of our market, our success in investing in our
business, including investments we are making in our core product
or new product areas, our ability to profit from new initiatives,
our intent to acquire content, our leadership position and our
opportunities and prospects for growth, including growth in
revenues, adjusted EBITDA and number of subscribers. These
forward-looking statements are based on information available to us
as of the date of this press release. Forward-looking statements
involve a number of risks and uncertainties that could cause actual
results to differ materially from those anticipated by these
forward-looking statements. Such risks and uncertainties include a
variety of factors, some of which are beyond our control. In
particular, such risks and uncertainties include our continued
ability to attract and retain subscribers; our continued ability to
acquire content and make it available online; difficulties
encountered in integrating acquired businesses and retaining
customers; failure of our products to meet customer demands or
expectations; the adverse impact of competitive product
announcements or launches; our inability to develop and refine new
and existing products; failure of subsequent seasons of Who Do You
Think You Are? to yield results comparable to prior seasons;
failure to achieve anticipated revenues and operating performance;
changes in overall economic conditions; the inability to attract
and retain key employees; competitors' actions; pricing and gross
margin pressures; the success of our revised pricing structures;
inability to control costs and expenses; and significant
litigation.
Information concerning additional factors that could cause
results to differ materially from those projected in the
forward-looking statements is contained under the caption "Risk
Factors" in our Quarterly Report on Form 10-Q for the quarter ended
September 30, 2011, and in discussions in other of our SEC
filings.
These forward-looking statements should not be relied upon as
representing our views as of any subsequent date and we assume no
obligation to publicly update or revise these forward-looking
statements for any reason, whether as a result of new information,
future events, or otherwise, except as required by law.
[1] Monthly churn is a measure representing the number of
subscribers that cancel in the quarter divided by the sum of
beginning subscribers and gross subscriber additions during the
quarter. To arrive at monthly churn, the results are divided by
three.
[2] Adjusted EBITDA is defined as net income (loss) plus net
interest and other (income) expense; income tax expense; and
non-cash charges including depreciation, amortization, impairment
of intangible assets and stock-based compensation expense.
CONTACT: Investors:
Ancestry.com Inc.
Deborah Crawford
(801) 705-7942
dcrawford@ancestry.com
Media:
Ancestry.com Inc.
Heather Erickson
(801) 705-7104
herickson@ancestry.com
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