SolarWinds (NYSE: SWI) reported earnings on July 25. Here are the numbers you need to know.

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

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

Margins dropped across the board.

Revenue details
SolarWinds reported revenue of $77.5 million. The 12 analysts polled by S&P Capital IQ hoped for a top line of $79.0 million on the same basis. GAAP reported sales were 21% higher than the prior-year quarter's $64.0 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 $0.40. The 14 earnings estimates compiled by S&P Capital IQ predicted $0.36 per share. Non-GAAP EPS of $0.40 for Q2 were 21% higher than the prior-year quarter's $0.33 per share. GAAP EPS of $0.30 for Q2 were 15% higher than the prior-year quarter's $0.26 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 92.1%, 120 basis points worse than the prior-year quarter. Operating margin was 40.4%, 160 basis points worse than the prior-year quarter. Net margin was 29.4%, 90 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $88.2 million. On the bottom line, the average EPS estimate is $0.37.

Next year's average estimate for revenue is $325.6 million. The average EPS estimate is $1.54.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 126 members out of 155 rating the stock outperform, and 29 members rating it underperform. Among 34 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 29 give SolarWinds a green thumbs-up, and five give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on SolarWinds is hold, with an average price target of $56.50.

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