AOL’s Q1 revenue of US$625m beats estimates, but profit falls

8 May 2015

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AOL, via Jason Persse on Flickr

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AOL’s first financial results of the year have shown a healthy revenue base, with the company coming in far above analyst predictions to post US$625m, however, net income for the quarter dropped from US$9.3m to US$7m.

“AOL grew its consumer base strongly and saw continued strength in video, mobile and programmatic advertising, while we also updated the structure and capabilities of the company,” said CEO Tim Armstrong in the earnings release.

“AOL continues to grow in strength and we are on a mission to scale the first media technology company of the internet and mobile age.”

Revenues grew 7pc, “driven by 12pc growth in global advertising”, while the cost of revenues flew up US$34m.

Breaking it down the Brand Group saw 8pc growth, while the Membership Group saw 6pc declines. AOL Platforms saw the most impressive growth, coming in over a fifth up on the same period last year.

It’s been an interesting few months for AOL. Its Q4 results for last year, released in February, also saw climbing revenues, with the company surpassing US$2.5bn in revenues throughout the year.

The latest figures seem to mirror that trend. Especially when looking at AOL Platforms, which like today’s results, were flying up in 2014.

AOL image, via Jason Persse on Flickr

Gordon Hunt is a journalist at Siliconrepublic.com

editorial@siliconrepublic.com