Ancestry Increases Subscriber Base by 31%

Now that Inc. is a public company (ACOM: Google Finance), they are required to divulge more information about their performance than they did as a private venture.

For them, the news is good. Earlier this week, they announced their year 2010 figures, which included notably subscriber growth of 31% year-over-year and a 34% increase in revenue year-over-year. (At the end of December there were 1,395,000 paid subscribers of Total revenue for the year was $300.9 million. EBITDA (earnings before income tax, depreciation, and amortization) was $101 million.

Monthly churn (membership turnover) is 3.9%, which is basically equivalent to the 3.6% in the fourth quarter of 2009, and the 4.0% in the third quarter of 2010.

For 2011, Ancestry expects to have 1,700,000 t0 1,725,000 subscribers and bring in revenues of $370 – $375 million, leading to an EBITDA of $125 – $130 million.

These are very healthy numbers and bode well for the genealogy industry. While a lot of us have some qualms about the size of Ancestry, as well as some of its business practices, it’s still important that this major player is healthy and continuing to invest in digitization and technology.


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