In its second-quarter earnings report, AOL says Patch "grew traffic and engagement at double digit rates year-over-year and quarter-over-quarter" and that revenue more than doubled in the second quarter compared to a year earlier. Patch is on track to make $40 million to $50 million this year, though it has invested more than $200 million so far, according to paidContent's Staci Kramer.
The company reported in May that its first-quarter revenue was double that of last year's, too, and that its traffic was up 55 percent from March 2011 to March 2012.
In an interview with Ad Age's Jason Del Rey, AOL CEO Tim Armstrong described an upcoming shift in Patch's strategy, expanding from its current focus on hyperlocal news to listings and commerce.
As for the listings business, he was asked if Patch was trying to build a competitor to Craigslist. "Craigslist and other companies like that that sell used merchandise haven't really scaled into communities," he said. "They've been very metro-focused. One of the opportunities for Patch...is the ability for us on the commerce side to offer the people the ability to do listings and other things like that locally."(more...)