Progress Software (Nasdaq: PRGS) reported earnings on July 10. Here are the numbers you need to know.

The 10-second takeaway
 For the quarter ended May 31 (Q2), Progress Software beat expectations on revenues and beat expectations on earnings per share.

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

Gross margins grew, operating margins dropped, net margins grew.

Revenue details
 Progress Software recorded revenue of $81.7 million. The four analysts polled by S&P Capital IQ wanted to see revenue of $79.8 million on the same basis. GAAP reported sales were 10% higher than the prior-year quarter's $74.1 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 $0.27. The four earnings estimates compiled by S&P Capital IQ predicted $0.21 per share. Non-GAAP EPS of $0.27 for Q2 were 29% higher than the prior-year quarter's $0.21 per share. (The prior-year quarter included -$0.17 per share in earnings from discontinued operations.) GAAP EPS were $0.07 for Q2 versus -$0.03 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 89.8%, 120 basis points better than the prior-year quarter. Operating margin was 22.5%, 120 basis points worse than the prior-year quarter. Net margin was 4.8%, 740 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
 Next quarter's average estimate for revenue is $76.7 million. On the bottom line, the average EPS estimate is $0.24.

Next year's average estimate for revenue is $333.4 million. The average EPS estimate is $1.13.

Investor sentiment
 The stock has a three-star rating (out of five) at Motley Fool CAPS, with 46 members out of 54 rating the stock outperform, and eight members rating it underperform. Among 16 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 16 give Progress Software a green thumbs-up, and give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Progress Software is outperform, with an average price target of $25.50.

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