Rosetta Stone (NYSE: RST) reported earnings on Nov. 7. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Rosetta Stone beat expectations on revenues and missed expectations on earnings per share.

Compared to the prior-year quarter, revenue was unchanged and GAAP loss per share grew.

Gross margins grew, operating margins grew, net margins shrank.

Revenue details
Rosetta Stone logged revenue of $64.3 million. The five analysts polled by S&P Capital IQ looked for sales of $61.0 million on the same basis. GAAP reported sales were 0.1% higher than the prior-year quarter's $64.2 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 -$0.08. The two earnings estimates compiled by S&P Capital IQ averaged -$0.05 per share. GAAP EPS were -$1.58 for Q3 versus -$0.06 per share for the prior-year quarter.

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 82.6%, 20 basis points better than the prior-year quarter. Operating margin was -5.7%, 370 basis points better than the prior-year quarter. Net margin was -51.9%, 5,010 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $79.1 million. On the bottom line, the average EPS estimate is $0.06.

Next year's average estimate for revenue is $270.3 million. The average EPS estimate is -$0.18.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 678 members out of 767 rating the stock outperform, and 89 members rating it underperform. Among 155 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 136 give Rosetta Stone a green thumbs-up, and 19 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Rosetta Stone is hold, with an average price target of $12.67.

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