AOL Beats Q1 Expectations, Shares Rise

Shares of

rose over 2 percent in pre-market trading after the company reported stronger-than-expected results for the first quarter. The New York-based company posted quarterly net earnings of $7 million, or $0.09 per share, compared to $9.3 million, or $0.11 per share, in the year-ago period. Excluding non-recurring items, the company's adjusted earnings came in at $0.34 per share. Its revenue climbed 7 percent to $625.1 million. However, analysts were expecting earnings of $0.32 per share on revenue of $594.6 million. The average estimate among 17 Estimize users was for earnings of $0.38 per share and revenue of $598.97 million. Brand Group revenue climbed 8 percent year-over-year, while Membership Group revenue slipped 6 percent in the latest quarter. AOL Platforms revenue jumped 21 percent year-over-year in the first quarter. Global advertising revenue jumped 12 percent to $483.5 million in the quarter. Domestic AOL subscribers shrank 11 percent in the quarter, while average revenue per user rose 7 percent. At March 31, 2015, the company had $477 million of cash and equivalents. "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 Tim Armstrong, AOL Chairman & CEO. "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." AOL shares rose 2.11 percent to $40.22 in pre-market trading.