Digimarc (Nasdaq: DMRC) reported earnings April 26. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), Digimarc whiffed on revenues and crushed expectations on earnings per share.

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

Margins improved across the board.

Revenue details
Digimarc reported revenue of $17.0 million. The one analyst polled by S&P Capital IQ looked for net sales of $20.0 million on the same basis. GAAP reported sales were 88% higher than the prior-year quarter's $9.1 million.

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

EPS details
EPS came in at $0.70. The two earnings estimates compiled by S&P Capital IQ anticipated $0.55 per share. GAAP EPS of $0.70 for Q1 were 483% higher than the prior-year quarter's $0.12 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 87.5%, 890 basis points better than the prior-year quarter. Operating margin was 53.7%, 3,150 basis points better than the prior-year quarter. Net margin was 29.3%, 1,900 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $10.0 million. On the bottom line, the average EPS estimate is $0.18.

Next year's average estimate for revenue is $49.8 million. The average EPS estimate is $1.16.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 16 members out of 16 rating the stock outperform. Among four CAPS All-Star picks (recommendations by the highest-ranked CAPS members), four give Digimarc a green thumbs-up.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Digimarc is buy, with an average price target of $53.00.

Over the decades, small-cap stocks like Digimarc have provided market-beating returns, provided they're value priced and have solid businesses. Read about a pair of companies with a lock on their markets in "Too Small to Fail: Two Small Caps the Government Won't Let Go Broke." Click here for instant access to this free report.