SolarWinds (NYSE: SWI) reported earnings on April 26. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), SolarWinds beat expectations on revenues and earnings per share.

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

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

Revenue details
SolarWinds reported revenue of $59.7 million. The 10 analysts polled by S&P Capital IQ anticipated revenue of $56.4 million on the same basis. GAAP reported sales were 39% higher than the prior-year quarter's $43.0 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 $0.30. The nine earnings estimates compiled by S&P Capital IQ predicted $0.25 per share. GAAP EPS of $0.23 for Q1 were 44% higher than the prior-year quarter's $0.16 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 92.8%, 140 basis points worse than the prior-year quarter. Operating margin was 39.7%, 230 basis points worse than the prior-year quarter. Net margin was 28.7%, 150 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $59.1 million. On the bottom line, the average EPS estimate is $0.27.

Next year's average estimate for revenue is $252.7 million. The average EPS estimate is $1.16.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 119 members out of 144 rating the stock outperform, and 25 members rating it underperform. Among 36 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 31 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 outperform, with an average price target of $40.50.

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