"We're announcing growth for the first time since the company was spun off from Time Warner," Armstrong said, "Our job at AOL is to move the company in the most non-commoditized space possible."
"Our three segment areas are profitable and we want to drive toward higher margins, higher profits there. You will see the margins widen and us grow as a company," said Armstrong. "Investors have rode with us through one of the most difficult turnarounds in American history and now it's up to us to turn that into a business of growing margins and revenue."
He said that the company is working to convert "membership" customers, such as dial-up subscribers, to "the future of the Internet." Armstrong added that "Investors have expected the membership group to go down, they've expected us to innovate on the other side of the business and today's results show the perfect marriage of those two things."
"Most of the major companies in the content and advertising spaces haven't hit a turnaround in [digital advertising] disruption," Armstrong said, adding that he thinks AOL is in the right position to take advantage of this change in consumer behavior. "These companies will have to follow us through this work."
—Reuters contributed to this report.
— By CNBC's Paul Toscano. Follow him on Twitter and get the latest stories from Squawk on the Street @ToscanoPaul