AOL Q3 Beats The Street On Sales Of $626.8M, Falls Short On Income Of $121.8M

AOL (owner of TechCrunch) this morning reported its earnings for Q3, a mixed result that saw it beating estimates on sales but only matching on earnings, and missing on operating income as the company continues with its turnaround strategy based around more savvy ad technology in the face of Google domination of market share, and flat display sales.

The company reported revenues of $626.8 million, EPS of $0.52 and adjusted OIBDA of $121.8 million. Analysts were expecting sales of $623 million, EPS of $0.52 and OIBDA of $125 million.

Display sales on AOL properties actually slightly declined, to $141.5 million from $141.9 million a year ago.

Third-party platform continues to grow fast, up 44%, and is by far its biggest sales stream now, at $215.1 million this quarter.

“In Q3, AOL continued its strong growth in consumer traffic, revenue and profitability across its portfolio of assets,” said Tim Armstrong, AOL Chairman and CEO, in a statement. “AOL is a leader in global content, video, mobile, and programmatic advertising and is positioned directly at the center of the most disruptive changes happening online and offline in culture and code.”

AOL took only a 0.9% share of the $120 billion worldwide digital ad market in 2013, according to eMarketer, and is expected to maintain that same market share this year as digital ad spending globally increases to $140.7 billion.

More to come.

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