Ancestry.com posts 1Q21 earnings rise, subscribers continue to grow

Ancestry.com’s 1Q21 non-GAAP revenue rose 6% year-over-year, leading to a 23% EBITDA gain for the three months, according to two sources familiar with the situation. 

The Blackstone-owned company, which offers DNA-testing and a subscription-based family history service, released first quarter results yesterday (11 May) and hosted an earnings call shortly after. 

Revenue vaulted to USD 345.1m in 1Q, versus USD 324.9m booked the prior year, the sources said. Adjusted EBITDA jumped to USD 136m in the quarter, from USD 110m YoY, they added. Contributing to the gain, the company grew subscribers by 239,000 in 1Q, after adding 61,000 new subscribers in 4Q, the sources said. Subscribers totaled 3.885m as of 31 March, compared to 3.646m as of 31 December, one of the sources added.  

Including cost savings from Blackstone’s recent LBO, pro forma adjusted EBITDA amounted to USD 140.8m, up 13% from the prior year, both sources continued.

As of 31 March, the company held USD 133m of cash, they noted. Liquidity also comprised availability under its undrawn USD 250m revolver, the first source added. Leverage at quarter-end was 5.4x through USD 2.68bn of total debt and USD 496m of LTM adjusted EBITDA.

Its USD 1.6bn Libor+ 325bps term loan due 2027 is quoted today at 99.281/99.656, in line with recent levels, according to a trader.

Ancestry placed the loan in November to fund its buyout by the Blackstone Group. Investors piled into the deal, attracted to its high free cash flow profile despite an issuer-friendly covenant package, as reported.

2021 Debtwire

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