AOL is still serving America online. The Web portal serves users with an array of content and communication tools, including sites for news (TheHuffingtonPost.com), maps (MapQuest), entertainment (Moviephone), local information (Patch), and technology (Engadget and TechCrunch). AOL primarily earns revenues through display, search, and contextual advertising (AOL Advertising) sales. It sells ads on AOL Properties as well as its Third Party Network (third-party sites). Search is provided through a deal with Google. AOL still offers dial-up Internet access to 2.2 million subscribers in the US. In 2009 Time Warner spun off AOL to shareholders. In 2015 Verizon acquired AOL for about $4.4 billion.
AOL provides products and services in more than 30 countries. Headquartered in New York City, the company generates nearly 90% of sales in the US.
In fiscal 2014 the company reported $2.5 billion in revenue. That was an increase of more than $200 million compared to the previous fiscal period.
It brought in about $2.3 billion in fiscal 2013, up from $2.1 billion in fiscal 2012. The spike was largely the result of increased revenue from advertising.
AOL's net income was $125.6 million in fiscal 2014. That was an increase of $33 million (more than 35%) compared to the previous year.
The company's cash flow increased by about $90 million in fiscal 2014 compared to fiscal 2013 levels.
AOL's business strategy is focuses on showcasing original, advertising-supported content. Google powers AOL searches through a partnership that extends through 2015. As part of the agreement, Google also provides AOL with mobile search, and brings AOL's video content to Google's YouTube.
Mergers and Acquisitions
AOL has a long history of acquisitions. Most recently, the company acquired modeling technology company Convertro and video distribution company Vidible. In 2014 AOL acquired Gravity for approximately $82.4 million in cash. Gravity provides content personalization technology and publisher solutions for advertisers.