Ariba (Nasdaq: ARBA) reported earnings on Jan. 26. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q1), Ariba met 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 to zero.

Margins dropped across the board.

Revenue details
Ariba reported revenue of $125.7 million. The 10 analysts polled by S&P Capital IQ anticipated a top line of $124.7 million. Sales were 39% higher than the prior-year quarter's $90.4 million.

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

EPS details
Non-GAAP EPS came in at $0.23. The 11 earnings estimates compiled by S&P Capital IQ forecast $0.20 per share on the same basis. GAAP EPS dropped to zero from the prior-year quarter's $0.45.

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 64.9%, 240 basis points worse than the prior-year quarter. Operating margin was 0.5%, 170 basis points worse than the prior-year quarter. Net margin was 0.1%, 4,650 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $129.2 million. On the bottom line, the average EPS estimate is $0.22.

Next year's average estimate for revenue is $527.2 million. The average EPS estimate is $0.93.

Investor sentiment
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 101 members out of 147 rating the stock outperform, and 46 members rating it underperform. Among 41 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 32 give Ariba a green thumbs-up, and nine give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Ariba is outperform, with an average price target of $36.00.

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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.