Huffington Post And Whether It's Good Or Bad For AOL
AOL: A Business Model In Transformation
Shaun Currie, CFA
Shaun Currie, CFA
Buy AOL: 2013 Will Be A Pivotal Year
Helix Investment Research • 10 Comments
Helix Investment Research • 10 Comments
May 8, 2015, 12:18 PM
- AOL has surged to its highest levels since February after beating Q1 estimates amid low expectations. 19% Y/Y increases in AOL properties search ad revenue and ad sales to 3rd-party properties (to $116.4M and $231.6M, respectively) offset 4% and 6% drops in display ad sales for AOL sites and subscription/ISP revenue (to $130.5M and $141.6M).
- Ad details: Total search revenue rose 28%, lifted by higher revenue/search. 3rd-party properties revenue benefited from higher sales of premium ad formats (inc. video) and growing adoption of AOL's programmatic ad offerings (big investments have been made). Display ad sales on AOL sites were hurt by lower PC ad impressions and a salesforce restructuring.
- Other numbers: U.S. ISP subscribers fell by 3% Q/Q and 11% Y/Y to 2.16M; ARPU -2% Q/Q and +7% Y/Y to $20.83. Average monthly multi-platform visitors for AOL properties totaled 190M, -3% Q/Q and +12% Y/Y. Free cash flow was $13.4M, above net income of $7M. Only $4M was spent on buybacks.
- Cantor (Buy) thinks the Q1 numbers indicate "AOL is making good progress on its transition to becoming the home of more programmatic, video and global platforms." It adds cost controls provided a lift to EPS, and that the Brand Group (covers AOL properties) saw 8.2% Y/Y revenue growth after posting a 1.3% Q4 decline.
- Q1 results, PR
May 8, 2015, 7:11 AM
- AOL (NYSE:AOL): Q1 EPS of $0.34 beats by $0.02.
- Revenue of $625.1M (+7.2% Y/Y) beats by $30.53M.
May 7, 2015, 5:30 PM
Feb. 11, 2015, 12:14 PM
- "I would expect domestic display revenue to decline in high single digits in the first half of the year," CFO Karen Dykstra stated on the Q4 CC.
- The remarks come after AOL reported display ad sales for AOL properties fell 6% Y/Y in Q4, and U.S. PC visitors to AOL sites fell 11%. Yahoo's display ad ops are also having a rough time amid an industry shift towards mobile ad sales, programmatic (automated) ad buys, and native ad formats such as sponsored stories.
- Dykstra promises AOL's salesforce restructuring (first reported last month) will boost ad sales in 2H15, and moreso in 2016.
- Shares have fallen to their lowest levels since October.
- Q4 results, details
Feb. 11, 2015, 9:29 AM
- AOL's display ad sales for its own properties fell 6% Y/Y in Q4 to $171.5M, worse than Q3's flat growth and driving the Q4 revenue miss. The loss of disposed/shuttered brands such as Patch had a $12M revenue impact vs. $10M in Q3.
- Contributing to the display weakness: Average U.S. monthly PC visitors to AOL properties fell 1% Q/Q and 11% Y/Y to 107M. Mobile growth apparently wasn't able to offset.
- AOL properties search revenue was healthier, rising 6% to $108.2M (3% growth in Q3). 3rd-party properties revenue rose 16% to $259.9M thanks to the Adap.tv video ad unit and programmatic ad sales growth. Other revenue (service/platform fees) grew 48% to $22.6M. Across business segments, programmatic revenue grew 250% in 2014.
- Subscription (dial-up ISP) revenue fell 5% (same as Q3) to $148.1M. U.S. subscribers fell 3% Q/Q and 11% Y/Y to 2.22M. ARPU was $21.18, down slightly from Q3's $21.35 but up from $20.01 a year ago.
- Free cash flow was $85.8M, +42% Y/Y and exceeding adjusted net income of $75.8M. Cost of revenue rose 6% Y/Y to $526.2M (compares with 5% revenue growth), and G&A spend fell 3% to $82.1M.
- Q4 results, PR
Feb. 11, 2015, 7:11 AM
- AOL (NYSE:AOL): Q4 EPS of $0.92 beats by $0.20.
- Revenue of $710.3M (+4.6% Y/Y) misses by $11.54M.
Feb. 10, 2015, 5:30 PM
Jan. 21, 2015, 11:58 AM
- AOL (AOL +0.9%) will report Q4 and full-year results before the open on Wednesday, February 11th. The conference call will begin at 8.00 am ET.
- Consensus views for Q4 and 2014 are for EPS of $0.72 and $2.02 and revenue of $723M (+6.5% Y/Y) and $2.54B (+9.5%), respectively.
Nov. 6, 2014, 7:06 AM
- AOL (NYSE:AOL): Q3 EPS of $0.52 in-line.
- Revenue of $626.8M (+11.7% Y/Y) beats by $3.3M.
Nov. 5, 2014, 5:30 PM
- AAON, AAP, AAWW, AEE, AES, AINV, AKRX, AMCX, AMRC, AMSC, AOL, APA, AZN, BBG, BCE, BCRX, BDBD, BKCC, BR, CDW, CECE, CECO, CNK, CNQ, COTY, CPN, CRZO, CVC, CYNI, DNOW, DTV, ERJ, FSYS, FUN, FUR, GEO, GLP, GNRC, GOLD, HAIN, HII, HNR, HSC, HSIC, HSP, HZNP, IT, KATE, KERX, KLIC, LIN, LMIA, LPI, MITL, MPEL, MWIV, NAVB, NRF, NTWK, NXTM, ONE, OWW, PBH, PDCE, PERI, PHMD, PKD, PMC, PNK, POZN, PRFT, PRGO, PRIM, PTCT, RDNT, RGEN, SATS, SCMP, SFUN, SFY, SGM, SLH, SNI, SNMX, SRPT, TAP, TCPC, TDC, TEDU, THS, TK, TNDM, TPH, TU, VC, VIVO, WAC, WD, WEN, WIN, ZEUS
Aug. 6, 2014, 12:16 PM
- After dropping 1% Y/Y in Q1, AOL's search revenue rose 6% in Q2 to $98.9M. Display ad sales on AOL properties fell 1% to $144.1M, a smaller drop than Q1's 3%. 3rd-party platform revenue (boosted by last year's Adap.tv acquisition) rose 60% to $194.3M, better than Q1's 55%.
- Subscription (dial-up ISP) revenue fell 7% to $155.1M after dropping 10% in Q1. U.S. subscribers fell 3% Q/Q and 9% Y/Y to 2.34M, but ARPU rose 7% Q/Q and 4% Y/Y to $20.86. Churn was 1.6%.
- Average monthly unique visitors to AOL properties rose 18% to 171M, even as average monthly PC visitors fell 7% to 108M. Display ad sales on AOL properties were hurt by the loss of $15M in revenue from Patch and other "shuttered or de-emphasized brands;" they would've been up 9% otherwise.
- $59M was spent on buybacks at an average price of $36.84, and a new $150M buyback has been authorized. Free cash flow grew 53% to $87.5M.
- Q2 results, PR
Aug. 6, 2014, 7:35 AM
- AOL (NYSE:AOL): Q2 EPS of $0.45 beats by $0.01.
- Revenue of $606.8M (+12.1% Y/Y) beats by $11.29M.
Aug. 5, 2014, 5:30 PM
- ANR, AOL, APO, ARIA, AVA, AVT, BRKR, CEQP, CHK, CLH, CMLS, CNP, CONE, CSTE, CTSH, DBD, DISH, DNR, DVN, DWSN, EE, ELOS, GEO, GOV, GWPH, HFC, HNT, INXN, IPXL, ITC, KELYA, LINC, LIOX, MDLZ, MEMP, MVIS, NAVB, NUS, PERI, PH, PKD, POWR, RDC, RL, ROC, SBGI, SE, SEP, SF, SJI, SKYW, STWD, TAP, THI, TRGT, TWX, VC, VIAB, VITC, VOYA, WD, WIX, WPX, ZINC
May 7, 2014, 8:25 AM
- Along with its Q1 results, AOL announces it's buying Convertro, provider of an ad tech platform that uses algorithms to measure ad views/conversions across multiple channels. AOL is paying $89M in cash + $2M in converted stock awards + $10M in earn-out payments.
- The deal follows last year's acquisition of online video ad platform Adap.tv, and bolsters AOL's efforts to be a top ad network/tech provider for the burgeoning programmatic ad market. It also comes a day after Google announced it's buying Convertro peer Adometry.
- Shares are lower in response to AOL's Q1 EPS miss and disappointment with the company's display ad (-3% Y/Y vs. +6% in Q4) and search ad (-1% vs. +5%) sales. AOL attributes the former decline to a $10M hit from "shuttered or de-emphasized brands," including Patch. The latter is blamed on a decline in core search queries. Third-party ad platform revenue, boosted by Adap.tv, rose 55% vs. 30%.
- Subscription (dial-up ISP) revenue fell 10% Y/Y vs. 8%. Subscribers fell 9% Y/Y; churn was 1.5% vs. 1.3% in Q4 and 1.9% a year ago, and ARPU fell to $19.41 from $20.01 in Q4.
- Adjusted OIBDA only grew 2% Y/Y to $107.3M, after growing 19% in Q4. Free cash flow was -$10.5M vs. $9.8M a year ago.
- Q1 results, PR
May 7, 2014, 7:04 AM
- AOL (AOL): Q1 EPS of $0.34 misses by $0.12.
- Revenue of $583.3M (+8.4% Y/Y) beats by $5.6M.
AOL Inc is a media technology company that provides internet content with brands, products and services that it offers to consumers, advertisers, publishers and subscribers.
Industry: Internet Information Providers
Country: United States
Other News & PR