Ancestry.com Shares Surged: What You Need to Know

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of genealogy specialist Ancestry.com (Nasdaq: ACOM  ) are surging today, up by as much as 20%, after the company provided an update on how it ended 2011 and reaffirmed upbeat guidance.

So what: At the end of 2011, it had 1,703,000 paying subscribers, higher than its guidance of between 1,685,000 and 1,695,000 subscribers. Its monthly churn also fell to 3.8%, down sequentially and year-over-year.

Now what: The company expects 2012 revenue growth in the mid-to-high teens. The figures alleviate investor fears that the site's new pricing scheme would dampen sales growth. Piper Jaffray analysts are in favor of the recent changes, saying the site is now easier to use and the longer-term pricing package is appealing.

Interested in more info on Ancestry.com? Add it to your watchlist by clicking here.

Fool contributor Evan Niu holds no position in any company mentioned. Click here to see his holdings and a short bio. Motley Fool newsletter services have recommended buying shares of Ancestry.com. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


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