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8/4/2019 2011 Second Quarter Earnings Presentation
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Second Quarter Highlights July 2011
Our mission is to help everyone discover, preserve and share their family history.
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This presentation 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 ouractual results, levels of activity, performance, or achievements to be materially different from those anticipated. In
some cases, you can identify forward-looking statements by the use of words such as may, could, expect,
intend, plan, seek, anticipate, believe, estimate, predict, potential, or continue or the negative of
these terms or other comparable terminology. You should not place undue reliance on forward-looking statements
because they involve known and unknown risks, uncertainties and other factors that are, in some cases, beyond our
control and that could materially affect actual results, levels of activity, performance, or achievements. Factors that
could materially affect actual results, levels of activity, performance or achievements include those listed under the
caption Risk Factors in our filings with the SEC.
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.
This presentation also contains references to non-GAAP financial measures. A presentation of and reconciliation to
the most directly comparable GAAP financial measure can be found at http://ir.ancestry.com/results.cfm.
Safe Harbor Summary
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Executing on Our Growth Strategy
1. Provide our subscribers with the content they want
Census records
Vital records
Blockbuster record sets
2. Keep making our product better and easier to use
Improved search functionality Easier browse experience
3. Build category awareness and a great Ancestry.combrand
Successful marketing campaigns and TV advertising Who Do You Think You Are?
4. Do all of this globally
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$35.0M $37.0M
Second Quarter 2011 Results
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Q2 2011 GUIDANCE ACTUAL
Revenue
Adjusted EBITDA
1.67M
$38.4M
$98M
$101.3M
Subscribers 1.672M
$100M
EPS(1) $0.33
(1) No guidance was given for EPS
(Fully diluted)
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Total Subscribers
846,000 861,000 894,000 914,000
959,000991,000
1,028,0001,066,000
1,212,000
1,311,0001,377,000 1,395,000
1,615,000
1,672,000
Q1'08 Q2'08 Q3'08 Q4'08 Q1'09 Q2'09 Q3'09 Q4'09 Q1'10 Q2'10 Q3'10 Q4'10 Q1'11 Q2'11
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Gross Subscriber Additions
146,000
127,000139,000 144,000
189,000
160,000 160,000 165,000
279,000291,000
252,000
203,000
425,000
322,000
Q1'08 Q2'08 Q3'08 Q4'08 Q1'09 Q2'09 Q3'09 Q4'09 Q1'10 Q2'10 Q3'10 Q4'10 Q1'11 Q2'11
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Net Subscriber Additions
14,000 15,000
33,000
20,000
45,000
32,00037,000 38,000
146,000
99,000
66,000
18,000
220,000
57,000
Q1'08 Q2'08 Q3'08 Q4'08 Q1'09 Q2'09 Q3'09 Q4'09 Q1'10 Q2'10 Q3'10 Q4'10 Q1'11 Q2'11
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Duration Mix Total Subscriber Base
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4% 4% 5% 5% 5% 5% 5% 6% 6%7% 7% 7% 8% 8%
75% 74% 73% 72% 70% 70% 70% 68% 63% 61% 61% 62% 57% 57%
21% 21% 22% 23% 24% 24% 25% 25% 29% 30% 30% 29% 33% 33%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Q1'08 Q2'08 Q3'08 Q4'08 Q1'09 Q2'09 Q3'09 Q4'09 Q1'10 Q2'10 Q3'10 Q4'10 Q1'11 Q2'11
Monthly
Annual
Quarterly
6 Month
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Monthly Subscriber Churn
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Note: 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, divided by three.
4.5%
3.8%
3.6%
4.0%4.3%
3.8%
3.6% 3.6% 3.3%
4.3%4.0% 3.9%
3.7%
4.6%
Q1'08 Q2'08 Q3'08 Q4'08 Q1'09 Q2'09 Q3'09 Q4'09 Q1'10 Q2'10 Q3'10 Q4'10 Q1'11 Q2'11
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Subscriber Acquisition Cost
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Note: Subscriber acquisition cost is external marketing and advertising expense, divided by gross subscriber additions in the quarter.
$59.95
$83.91
$66.22
$79.26
$62.23
$73.27$70.55
$85.21
$69.57$74.04
$81.58
$96.87
$69.56
$81.23
Q1'08 Q2'08 Q3'08 Q4'08 Q1'09 Q2'09 Q3'09 Q4'09 Q1'10 Q2'10 Q3'10 Q4'10 Q1'11 Q2'11
SAC Marketing Expense
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Average Monthly Revenue per Subscriber
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$15.68
$16.19$16.33 $16.45
$16.46 $16.42 $16.48$16.67 $16.70
$18.02$17.75 $17.78
$18.05
$18.88
Q1'08 Q2'08 Q3'08 Q4'08 Q1'09 Q2'09 Q3'09 Q4'09 Q1'10 Q2'10 Q3'10 Q4'10 Q1'11 Q2'11
Note: Average monthly revenue per subscriber, or ARPU, is total subscription revenues earned in the quarter from subscriptions to one of the Ancestry.com Web
sites divided by the average number of subscribers in the quarter, divided by three. The average number of subscribers for the quarter is calculated by taking
the average of the beginning and ending number of subscribers for the quarter.
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Selected Financial Data
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Q1'09 Q2'09 Q3'09 Q4'09 Q1'10 Q2'10 Q3'10 Q4'10 Q111 Q211
Revenue $ 53.2 $ 54.6 $ 57.0 $ 60.1 $ 64.4 $ 74.5 $ 79.3 $ 82.7 $91.0 $101.3
y/y change 13% 14% 14% 15% 21% 36% 39% 38% 41% 36%
Gross Profit 42.0 43.3 45.6 47.8 51.4 62.0 66.9 68.6 75.3 85.4
margin 79% 79% 80% 79% 80% 83% 84% 83% 83% 84%
Adj. EBITDA 16.5 18.4 17.9 18.7 17.0 25.3 29.0 29.7 25.6 38.4
margin 31% 34% 31% 31% 26% 34% 37% 36% 28% 38%
Net Income 3.5 4.7 4.0 9.1 4.0 8.5 11.8 12.6 9.0 16.6
EPS(Fully diluted) $ 0.09 $ 0.12 $ 0.10 $ 0.20 $ 0.08 $ 0.18 $ 0.24 $ 0.25 $0.18 $0.33
Note: Adjusted EBITDA is a non-GAAP financial measure. A presentation of and reconciliation to net income, the most directly comparable GAAP financial measure,
can be found at http://ir.ancestry.com/results.cfm.
*In millions, except per share data
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Business Outlook
Q3 2011 FY 2011
Revenue $102.0 to $104.0 M $398 to $402 M
Adjusted EBITDA $38.0 to $40.0 M $140 to $144 M
Total subscribersApproximately
1,700,000
Approximately
1,710,000-1,730,000
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