ACOM (Ancestry) reports positive second quarter

The following is from Ancestry.com on it's second quarter results, released as the market closed on 29 July.

• Ancestry.com Subscriber Growth of 32% Year-Over-Year
• Total Revenue Up 36% Year-Over-Year
• Raises FY 2010 Outlook
  

PROVO, Utah, July 29, 2010 (GLOBE NEWSWIRE) -- Ancestry.com Inc. (Nasdaq:ACOM - News), the world's largest online family history resource, today reported financial results for the quarter ended June 30, 2010.

"Greater than anticipated subscriber additions drove impressive performance in the quarter and boosted our revenue and EBITDA expectations for the full year," said Tim Sullivan, Chief Executive Officer of Ancestry.com. "It's particularly noteworthy that retention rates and customer behavior trends are remaining consistent despite the rapid subscriber growth in the first half of 2010. As we move forward, we will continue our focus on building awareness of the family history category, improving the customer experience and adding important content collections to Ancestry.com."

Ancestry.com Web Sites Highlights

• Subscribers totaled 1,311,000 as of June 30, 2010, a 32% increase over the end of Q2 2009 and an 8% increase over the end of Q1 2010.
• Gross Subscriber additions were 291,000 in Q2 2010, an 81% increase over Q2 2009 and a 4% increase over Q1 2010, driven by the continued success of marketing programs and the airing of Who Do You Think You Are? early in the quarter.
• Monthly Subscriber Churn¹ increased to 4.3% in Q2 2010, compared to 3.8% in Q2 2009 and 3.3% in Q1 2010, as expected, reflecting the large number of new monthly subscribers added in the first half of 2010.
• Subscriber acquisition cost² in Q2 2010 was $74.04, compared to $73.27 in Q2 2009 and $69.57 in Q1 2010.
• Average Monthly Revenue per Subscriber³ in Q2 2010 was $18.02, compared to $16.42 in Q2 2009 and $16.70 in Q1 2010.

Second Quarter 2010 Financial Highlights

• Total revenue for the second quarter of 2010 was $74.5 million, an increase of 36.4% over $54.6 million in the prior year period, driven by growth in our core Ancestry.com Web sites of 41.9%.
• Operating income for the second quarter of 2010 was $15.8 million, compared to $8.7 million in the prior year period.
• Adjusted EBITDA⁴ for the second quarter of 2010 was $25.3 million, compared to $18.4 million in the second quarter of 2009. Adjusted EBITDA margin for the second quarter of 2010 was 33.9%, compared to 33.8% in the second quarter of 2009.
• Net income was $8.5 million, or $0.18 per fully diluted share, for the second quarter of 2010 compared to $4.7 million, or $0.12 per fully diluted share, in the second quarter of 2009.
• Free cash flow⁵ totaled $14.4 million in the second quarter of 2010 compared to $6.7 million in the prior year period.
• Balance sheet As of June 30, 2010, cash, cash equivalents, and short-term investments were $134.0 million and total debt was $76.2 million.
  
  Recent Business Highlights

• The Company closed the acquisition of Genline.se, the leading Swedish family history Web site. At closing, Genline had more than 17,000 paying members with access to 26 million pages of digitized Swedish church records spanning more than 400 years from the 17th to the 20th century.
• NBC announced its renewal of Who Do You Think You Are? for a second season, which is currently expected to air in the first quarter of 2011.
• Season 1 of Who Do You Think You Are? is currently expected to air in re-runs starting on August 13, 2010.
• The Company added several new important content collections, including U.S. Land Ownership Atlases from 1860-1920 and the UK Waterloo Medal Roll from 1815.

Business Outlook

The Company's financial and operating expectations for the third quarter and full year 2010 are as follows:

Third Quarter 2010

• Revenue in the range of $75.0 to $77.0 million
• Adjusted EBITDA in the range of $24.0 to $26.0 million
• Ending subscribers of approximately 1,345,000

Full Year 2010

• Revenue in the range of $290 to $295 million (increased from the previously expected range of $275 to $280 million)
• Adjusted EBITDA in the range of $93 to $97 million (increased from the previously expected range of $90 to $95 million)
• Ending subscribers in the range of 1,360,000 to 1,370,000 (increased from the previously expected range of 1,280,000 to 1,300,000)

As is often the case, ACOM closed down from the previous day close on the good news!