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What: Shares of genealogy specialist Ancestry.com (NAS: 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.
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At the time thisarticle was published Fool contributorEvan Niuholds no position in any company mentioned.Click hereto see his holdings and a short bio.Motley Fool newsletter serviceshave recommended buying shares of Ancestry.com. Try any of our Foolish newsletter servicesfree for 30 days. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.
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