ReachLocal (Nasdaq: RLOC) reported earnings on May 1. Here are the numbers you need to know.

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

Compared to the prior-year quarter, revenue increased significantly, while GAAP loss per share contracted.

Margins increased across the board.

Revenue details
ReachLocal reported revenue of $104.0 million. The seven analysts polled by S&P Capital IQ expected to see net sales of $102.8 million on the same basis. GAAP-reported sales were 24% higher than the prior-year quarter's $84.1 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 -$0.03. The seven earnings estimates compiled by S&P Capital IQ averaged -$0.06 per share. GAAP EPS were -$0.03 for Q1, versus -$0.12 per share for the prior-year quarter.

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 49.6%, 250 basis points better than the prior-year quarter. Operating margin was -1.0%, 260 basis points better than the prior-year quarter. Net margin was -1%, 310 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $108.5 million. On the bottom line, the average EPS estimate is -$0.03.

Next year's average estimate for revenue is $441.5 million. The average EPS estimate is -$0.10.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 75 members rating the stock outperform and three members rating it underperform. Among 24 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 23 give ReachLocal a green thumbs-up, and one gives it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on ReachLocal is outperform, with an average price target of $11.71.

Over the decades, small-cap stocks like ReachLocal 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: 2 Small Caps the Government Won't Let Go Broke." Click here for instant access to this free report.