Ancestry.com filed for a $75 million public offering yesterday, planning to trade on the NASDAQ as “ACOM.”
The company makes the majority of its revenue through subscriptions that enable users to create family trees by uploading their own content and matching it with relevant docs from a large library of historical info provided by Ancestry.com.
With just under 1 million subscribers the company is on pace to generate over $200 million in revenue this year, which is about 10% better than in 2008. EBITDA margins are just north of 30% and the company should be profitable to the tune of about $16 million in net income this year.
Ancestry.com doesn’t make any money from advertising. Startups should take note.
While pure-play advertising companies have struggled to grow the past year, many business with alternatve revenue streams like subscriptions and commerce have thrived.
We recently profiled Zynga CEO Mark Pincus, whose social gaming company is profitable and set to pass $100 million revenues this year selling virtual goods.
Slide and RockYou were featured in a big WSJ article today, talking about how they’ve fired their ad sales teams and re-booted for new revenue streams.
And finally, Ancestry’s IPO announcement comes just a few months after OpenTable’s succesful IPO. That company makes money not through advertising, but by charging a restaurants subscription and conversion fees, and its stock is currently at $30.64 – 50% above the IPO price of $20.
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