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AOL, Inc. Beats Earnings Estimates, JD.Com Inc Misses

AOL and JD.com released the earnings results from their most recently completed quarters before opening bell this morning. AOL posted adjusted earnings of 34 cents per share on $625.1 million in revenue for its first fiscal quarter. Analysts had been expecting earnings of 32 cents per share and $594.6 million in revenue. In the same quarter a year ago, AOL reported earnings of 35 cents per share and $583.3 million in revenue.

AOL, Inc. Beats Earnings Estimates, JD.Com Inc Misses

JD.com reported losses of RMB0.15 (2 cents) per American depository receipt share on RMB36.6 billion ($5.9 billion) in revenue, compared to the consensus estimates of earnings of RMB0.03 per share in earnings and RMB35.65 billion in revenue. In the same quarter a year ago, the Chinese online retailer reported non-GAAP earnings of RMB0.09 per share.

Key metrics from AOL’s earnings report

AOL reported net earnings of 9 cents per share, compared to 11 cents per share in last year’s first quarter. The company took a $17 million charge related to the restructuring of its safes force during the first quarter. Global ad and other revenue increased 12% to $483.5 million. AOL Properties display ad revenue declined 4% year over year to $130.5 million, while AOL Properties search revenue increased 19% to $116.4 million. Third Party Properties revenue increased 19% to $231.6 million.

Traffic acquisition costs increased $46 million in connection with the growth of revenue in AOL’s Search and Third Parties revenues. Adjusted OIBDA fell 3% from last year due to falling Membership Group adjusted OIBDA and increases investments in AOL Platforms.

Key metrics from JD’s earnings report

JD reported gross merchandise volume of RMB87.8 billion ($12.4 billion) for the first quarter, a 99% year over year increase. Net losses were RMB0.52 (8 cents) per American depository receipt share RMB710.2 million ($114.6 million), and net margin was -1.9%. Non-GAAP net losses were RMB205.6 million ($33.2 million), while non-GAAP net margin was -0.6%.

JD saw the number of fulfilled orders climb 76% year over year to 227.2 million. Mobile fulfilled orders were about 42% of the total, marking a 329% year over year increase. The Chinese online retailer reported a 90% increase in annual active customer accounts, which rose to 105.2 million for the 12 months ending on March 31, compared to 55.5 million the previous year.

Cost of revenues increased 58% to RMB32.2 billion ($5.9 billion) due to growth in JD’s direct sales business and higher traffic acquisition costs in connection with online marketing services provided by suppliers and merchants.