SPS Commerce (Nasdaq: SPSC) reported earnings on Feb. 6. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), SPS Commerce beat expectations on revenues and beat expectations on earnings per share.

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

Margins dropped across the board.

Revenue details
SPS Commerce reported revenue of $22.5 million. The eight analysts polled by S&P Capital IQ predicted sales of $21.9 million on the same basis. GAAP reported sales were 42% higher than the prior-year quarter's $15.9 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 $0.12. The eight earnings estimates compiled by S&P Capital IQ predicted $0.09 per share. GAAP EPS of $0.02 for Q4 were 98% lower than the prior-year quarter's $1.03 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 69.7%, 370 basis points worse than the prior-year quarter. Operating margin was 1.0%, 150 basis points worse than the prior-year quarter. Net margin was 1.6%, 8,130 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $22.5 million. On the bottom line, the average EPS estimate is $0.10.

Next year's average estimate for revenue is $97.2 million. The average EPS estimate is $0.50.

Investor sentiment

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on SPS Commerce is buy, with an average price target of $43.14.

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