Keynote Systems (Nasdaq: KEYN) reported earnings on Jan. 31. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q1), Keynote Systems beat 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.

Margins dropped across the board.

Revenue details
Keynote Systems notched revenue of $33.1 million. The six analysts polled by S&P Capital IQ predicted revenue of $31.1 million. Sales were 33% higher than the prior-year quarter's $24.8 million.

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

EPS details
Non-GAAP EPS came in at $0.32. The six earnings estimates compiled by S&P Capital IQ forecast $0.25 per share on the same basis. GAAP EPS of $0.22 for Q1 were 4.3% lower than the prior-year quarter's $0.23 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 53.2%, 340 basis points worse than the prior-year quarter. Operating margin was 10.4%, 440 basis points worse than the prior-year quarter. Net margin was 12.5%, 210 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $30.7 million. On the bottom line, the average EPS estimate is $0.23.

Next year's average estimate for revenue is $130.2 million. The average EPS estimate is $1.11.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 83 members out of 94 rating the stock outperform, and 11 members rating it underperform. Among 24 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 20 give Keynote Systems a green thumbs-up, and four give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Keynote Systems is buy, with an average price target of $26.85.

Internet software and services are being consumed in radically different ways, on new and increasingly mobile devices. Is Keynote Systems on the right side of the revolution? Check out the changing landscape and meet the company that Motley Fool analysts expect to lead "The Next Trillion-dollar Revolution." Click here for instant access to this free report.

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.