Ancestry.com LLC Reports Second Quarter 2016 Financial Results

The following is an excerpt from Ancestry.com LLC’s Second Quarter 2016 Financial Results, as reported this afternoon:

Second Quarter Revenues of $211.4 million, Up 25% Year-Over-Year

AncestryDNA Database Now Includes More Than 2 Million Samples

LEHI, Utah, July 20, 2016 — Ancestry.com LLC (the “Company”), the leader in family history and consumer genomics, reported financial results today for the second quarter ended June 30, 2016.

“Ancestry’s performance continued to accelerate in the second quarter,” said Tim Sullivan, Chief Executive Officer of Ancestry. “The combined value proposition of our market-leading family history and DNA offerings has helped deliver over $750 million in revenue in the last four quarters. We are excited about the opportunities ahead and remain focused on execution and investing in the long-term growth of the company.”

Second Quarter 2016 Financial Highlights

Total revenues for the second quarter of 2016 were $211.4 million compared to $169.4 million in the second quarter of 2015, resulting from revenue growth in both AncestryDNA and the core Ancestry websites.

Net (loss) income for the second quarter of 2016 was $(10.5) million compared to $13.7 million in the second quarter of 2015, primarily due to the impact of $30.9 million in transaction-related expenses incurred during the second quarter of 2016.

Adjusted EBITDA for the second quarter of 2016 was $70.4 million compared to $67.3 million in the second quarter of 2015. Adjusted EBITDA for the second quarter of 2016 excludes the impact of $30.9 million in transaction-related expenses(1) incurred during the second quarter of 2016. Additionally, adjusted EBITDA for the second quarter of 2016 included $3.7 million of non-operating costs such as business optimization consulting, litigation and transaction-related severance. The prior year quarter included $0.3 million of similar non-operating costs.

Free cash flow for the second quarter of 2016 was $16.2 million compared to $20.4 million for the second quarter of 2015.

Cash and cash equivalents totaled $118.9 million as of June 30, 2016.

Obligations under long-term debt totaled $1.0 billion as of June 30, 2016.

Ancestry Business Updates

Company – On May 23, 2016 the Company announced the successful closing of the previously-announced transaction whereby Silver Lake Partners and GIC acquired substantial equity stakes in Ancestry at an enterprise value of approximately $2.6 billion. As a result, Silver Lake and GIC each now hold equal minority ownership positions while the Permira funds, Spectrum Equity, and Ancestry management remain as meaningful equity investors.

AncestryDNA – During the second quarter the AncestryDNA database surpassed 2.0 million samples, after reaching 1.0 million less than a year earlier.

Subscribers – Subscribers of Ancestry websites totaled approximately 2,419,000 as of June 30, 2016, up 2% compared to March 31, 2016 and up 9% compared to June 30, 2015.

Content – During the second quarter of 2016, the Company added to its collection of more than 18 billion records through launching and adding to significant collections from various sources including:

  • Netherlands birth, marriage, and death records, over 80 million records
  • Indiana vital records, over 30 million records
  • German Lutheran records, over 15 million records
  • Update to US Yearbooks, over 10 million records
  • US naturalizations, over 10 million records
  • Australia WW2 military records, over 1 million records

Adpay/Memoriams Acquisition – The Company completed the acquisition of Adpay, Inc., the creator and operator of the Memoriams.com obituary input network during the quarter. Memoriams.com submits obituaries to approximately 3,000 newspapers in the U.S. from its growing network of funeral homes.

The full quarterly report is much longer and may be found at http://corporate.ancestry.com/press/press-releases/2016/07/ancestrycom-llc-reports-second-quarter-2016-financial-results/.

One Comment

I must say that, although I was preparing to jettison Ancestry after the sale last year, and after early stumbling, they actually seem to be making it work, even with some improvements, maybe not everything we could dream of, but not too bad.

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