AOL Reports Another Strong Quarter, Makes Marissa Mayer and Yahoo Look Even Worse

AOL delivered a solid earnings report this morning.

It beat expectations on revenue, but had a slight miss on EPS, which was down 3% compared to a year ago. It attributed the profit miss to increases in stock-based compensation, and amortization of intangible assets.

Investors are shrugging at the EPS drop. The stock is up 5% pre-market.

Digging into the numbers a bit, it looks like a solid quarter, especially when you consider three years ago AOL was a company that had been imploding for years. It's even better when you look at AOL versus Yahoo.

Total revenue was up 12% to $606.8 million. Display ad revenue was down 1%, but that's due in part to the fact that AOL no longer owns Patch, the local news business. If you ex-out Patch, AOL says display ad revenue was up 9%.

Yahoo's revenue over the same period was down 3%, and its display ad business was down 7%.