United Online (Nasdaq: UNTD) reported earnings yesterday. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), United Online met expectations on revenues and crushed expectations on earnings per share.

Compared to the prior-year quarter, revenue shrank and GAAP earnings per share shrank significantly.

Margins dropped across the board.

Revenue details
United Online recorded revenue of $217.9 million. The two analysts polled by S&P Capital IQ predicted revenue of $219.8 million on the same basis. GAAP reported sales were 6.3% lower than the prior-year quarter's $232.6 million.

My

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Non-GAAP EPS came in at $0.25. The two earnings estimates compiled by S&P Capital IQ predicted $0.20 per share on the same basis. GAAP EPS of $0.14 for Q4 were 22% lower than the prior-year quarter's $0.18 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 50.0%, 310 basis points worse than the prior-year quarter. Operating margin was 13.1%, 30 basis points worse than the prior-year quarter. Net margin was 5.9%, 110 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $243.5 million. On the bottom line, the average EPS estimate is $0.21.

Next year's average estimate for revenue is $901.4 million. The average EPS estimate is $0.81.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 251 members out of 272 rating the stock outperform, and 21 members rating it underperform. Among 61 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 54 give United Online a green thumbs-up, and seven give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on United Online is outperform, with an average price target of $7.70.

New technology paradigms and mobile devices are driving the next wave of Internet services. Many older companies won't survive the change, while fortunes will be made by the first movers in the field. Where does United Online fit in? What's the fortune-making change? Check out "The Two Words Bill Gates Doesn't Want You to Hear." Click here for instant access to this free report.