8x8 (Nasdaq: EGHT) reported earnings on Jan. 18. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q3), 8x8 beat expectations on revenues and crushed expectations on earnings per share.

Compared to the prior-year quarter, revenue improved significantly, and earnings per share expanded significantly.

Gross margins shrank, operating margins dropped, net margins increased.

Revenue details
8x8 reported revenue of $23 million. The three analysts polled by S&P Capital IQ wanted to see sales of $22 million. Sales were 31% higher than the prior-year quarter's $18 million

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
EPS came in at $0.04. The one earnings estimate compiled by S&P Capital IQ anticipated $0.03 per share. GAAP EPS of $0.04 for Q3 were 100% higher than the prior-year quarter's $0.02 per share.

Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 67.9%, 30 basis points worse than the prior-year quarter. Operating margin was 11.0%, 50 basis points worse than the prior-year quarter. Net margin was 11.1%, 270 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $23 million. On the bottom line, the average EPS estimate is $0.04.

Next year's average estimate for revenue is $82 million. The average EPS estimate is $0.12.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 266 members out of 275 rating the stock outperform, and 10 members rating it underperform. Among 39 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 36 give 8x8 a green thumbs-up, and three give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on 8x8 is buy, with an average price target of $5.58.

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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.