athenahealth (Nasdaq: ATHN) reported earnings on July 18. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended June 30 (Q2), athenahealth met expectations on revenues and missed expectations on earnings per share.

Compared to the prior-year quarter, revenue increased significantly. Non-GAAP earnings per share dropped to a loss. GAAP earnings per share contracted to a loss.

Margins dropped across the board.

Revenue details
athenahealth logged revenue of $146.3 million. The 18 analysts polled by S&P Capital IQ expected revenue of $148.1 million on the same basis. GAAP reported sales were 41% higher than the prior-year quarter's $103.5 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 -$0.08. The 19 earnings estimates compiled by S&P Capital IQ anticipated $0.22 per share. Non-GAAP EPS were -$0.08 for Q2 versus $0.24 per share for the prior-year quarter. GAAP EPS were -$0.34 for Q2 compared to $0.11 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 59.4%, 100 basis points worse than the prior-year quarter. Operating margin was -2.9%, 830 basis points worse than the prior-year quarter. Net margin was -8.5%, much worse than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $155.4 million. On the bottom line, the average EPS estimate is $0.24.

Next year's average estimate for revenue is $597.4 million. The average EPS estimate is $1.10.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 200 members out of 254 rating the stock outperform, and 54 members rating it underperform. Among 72 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 60 give athenahealth a green thumbs-up, and 12 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 $93.07.

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