athenahealth (Nasdaq: ATHN) reported earnings on April 26. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), athenahealth beat expectations on revenues and missed estimates on earnings per share.

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

Margins dropped across the board.

Revenue details
athenahealth booked revenue of $96.6 million. The 18 analysts polled by S&P Capital IQ looked for revenue of $93.7 million on the same basis. GAAP reported sales were 38% higher than the prior-year quarter's $69.9 million.

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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 $0.07. The two earnings estimates compiled by S&P Capital IQ averaged $0.16 per share. GAAP EPS of $0.07 for Q1 were 22% lower than the prior-year quarter's $0.09 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 59.8%, 120 basis points worse than the prior-year quarter. Operating margin was 5.4%, 250 basis points worse than the prior-year quarter. Net margin was 2.5%, 210 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $103.6 million. On the bottom line, the average EPS estimate is $0.24.

Next year's average estimate for revenue is $425.6 million. The average EPS estimate is $0.96.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 182 members out of 230 rating the stock outperform, and 48 members rating it underperform. Among 60 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 45 give athenahealth a green thumbs-up, and 15 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on athenahealth is hold, with an average price target of $60.40.

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