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International Markets and Salesforce.com (CRM): A Deep Dive for Investors
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Did you analyze how Salesforce.com (CRM - Free Report) fared in its international operations for the quarter ending October 2024? Given the widespread global presence of this customer-management software developer, scrutinizing the trends in international revenues becomes imperative to assess its financial strength and future growth possibilities.
In the modern, closely-knit global economic landscape, the capacity of a business to access foreign markets is often a key determinant of its financial well-being and growth path. Investors now place great importance on grasping the extent of a company's dependence on international markets, as it sheds light on the firm's earnings stability, its skill in leveraging various economic cycles and its broad growth potential.
Participation in global economies acts as a defense against economic difficulties at home and a pathway to more rapidly developing economies. However, it also comes with the complexities of dealing with fluctuating currencies, geopolitical risks and different market dynamics.
While analyzing CRM's performance for the last quarter, we found some intriguing trends in revenues from its overseas segments that Wall Street analysts commonly model and monitor.
The company's total revenue for the quarter amounted to $9.44 billion, marking an increase of 8.3% from the year-ago quarter. We will next turn our attention to dissecting CRM's international revenue to get a clearer picture of how significant its operations are outside its main base.
A Dive into CRM's International Revenue Trends
Asia Pacific generated $996 million in revenues for the company in the last quarter, constituting 10.55% of the total. This represented a surprise of +7.47% compared to the $926.76 million projected by Wall Street analysts. Comparatively, in the previous quarter, Asia Pacific accounted for $940 million (10.08%), and in the year-ago quarter, it contributed $860 million (9.86%) to the total revenue.
Of the total revenue, $2.23 billion came from Europe during the last fiscal quarter, accounting for 23.59%. This represented a surprise of +19.03% as analysts had expected the region to contribute $1.87 billion to the total revenue. In comparison, the region contributed $2.18 billion, or 23.42%, and $2 billion, or 22.91%, to total revenue in the previous and year-ago quarters, respectively.
Projected Revenues in Foreign Markets
Wall Street analysts expect Salesforce.com to report a total revenue of $10.04 billion in the current fiscal quarter, which suggests an increase of 8.1% from the prior-year quarter. Revenue shares from Asia Pacific and Europe are predicted to be 9.9% and 20.1%, corresponding to amounts of $997.81 million and $2.02 billion, respectively.
For the full year, the company is expected to generate $37.92 billion in total revenue, up 8.8% from the previous year. Revenues from Asia Pacific and Europe are expected to constitute 10% ($3.79 billion) and 21.7% ($8.22 billion) of the total, respectively.
Key Takeaways
The dependency of Salesforce.com on global markets for its revenues presents a mix of potential gains and hazards. Thus, monitoring the trends in its overseas revenues can be a key indicator for predicting the firm's future performance.
In an environment where global interconnections and geopolitical skirmishes are intensifying, Wall Street analysts keep a keen eye on these trends, particularly for firms with overseas operations, to adjust their earnings predictions. Moreover, a range of other aspects, including how a company fares in its home country, significantly affects these projections.
Here at Zacks, we put a great deal of emphasis on a company's changing earnings outlook, as empirical research has shown that's a powerful force driving a stock's near-term price performance. Quite naturally, the correlation is positive here -- an upward revision in earnings estimates drives the stock price higher.
Boasting a remarkable track record that's been externally verified, the Zacks Rank, our unique stock rating system, leverages changes in earnings projections to function as a reliable gauge for predicting short-term stock price movements.
Over the preceding four weeks, the stock's value has appreciated by 12.4%, against an upturn of 2.9% in the Zacks S&P 500 composite. In parallel, the Zacks Computer and Technology sector, which counts Salesforce.com among its entities, has appreciated by 3.4%. Over the past three months, the company's shares have seen an increase of 42.2% versus the S&P 500's 12.8% increase. The sector overall has witnessed an increase of 17% over the same period.
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International Markets and Salesforce.com (CRM): A Deep Dive for Investors
Did you analyze how Salesforce.com (CRM - Free Report) fared in its international operations for the quarter ending October 2024? Given the widespread global presence of this customer-management software developer, scrutinizing the trends in international revenues becomes imperative to assess its financial strength and future growth possibilities.
In the modern, closely-knit global economic landscape, the capacity of a business to access foreign markets is often a key determinant of its financial well-being and growth path. Investors now place great importance on grasping the extent of a company's dependence on international markets, as it sheds light on the firm's earnings stability, its skill in leveraging various economic cycles and its broad growth potential.
Participation in global economies acts as a defense against economic difficulties at home and a pathway to more rapidly developing economies. However, it also comes with the complexities of dealing with fluctuating currencies, geopolitical risks and different market dynamics.
While analyzing CRM's performance for the last quarter, we found some intriguing trends in revenues from its overseas segments that Wall Street analysts commonly model and monitor.
The company's total revenue for the quarter amounted to $9.44 billion, marking an increase of 8.3% from the year-ago quarter. We will next turn our attention to dissecting CRM's international revenue to get a clearer picture of how significant its operations are outside its main base.
A Dive into CRM's International Revenue Trends
Asia Pacific generated $996 million in revenues for the company in the last quarter, constituting 10.55% of the total. This represented a surprise of +7.47% compared to the $926.76 million projected by Wall Street analysts. Comparatively, in the previous quarter, Asia Pacific accounted for $940 million (10.08%), and in the year-ago quarter, it contributed $860 million (9.86%) to the total revenue.
Of the total revenue, $2.23 billion came from Europe during the last fiscal quarter, accounting for 23.59%. This represented a surprise of +19.03% as analysts had expected the region to contribute $1.87 billion to the total revenue. In comparison, the region contributed $2.18 billion, or 23.42%, and $2 billion, or 22.91%, to total revenue in the previous and year-ago quarters, respectively.
Projected Revenues in Foreign Markets
Wall Street analysts expect Salesforce.com to report a total revenue of $10.04 billion in the current fiscal quarter, which suggests an increase of 8.1% from the prior-year quarter. Revenue shares from Asia Pacific and Europe are predicted to be 9.9% and 20.1%, corresponding to amounts of $997.81 million and $2.02 billion, respectively.For the full year, the company is expected to generate $37.92 billion in total revenue, up 8.8% from the previous year. Revenues from Asia Pacific and Europe are expected to constitute 10% ($3.79 billion) and 21.7% ($8.22 billion) of the total, respectively.
Key Takeaways
The dependency of Salesforce.com on global markets for its revenues presents a mix of potential gains and hazards. Thus, monitoring the trends in its overseas revenues can be a key indicator for predicting the firm's future performance.In an environment where global interconnections and geopolitical skirmishes are intensifying, Wall Street analysts keep a keen eye on these trends, particularly for firms with overseas operations, to adjust their earnings predictions. Moreover, a range of other aspects, including how a company fares in its home country, significantly affects these projections.
Here at Zacks, we put a great deal of emphasis on a company's changing earnings outlook, as empirical research has shown that's a powerful force driving a stock's near-term price performance. Quite naturally, the correlation is positive here -- an upward revision in earnings estimates drives the stock price higher.
Boasting a remarkable track record that's been externally verified, the Zacks Rank, our unique stock rating system, leverages changes in earnings projections to function as a reliable gauge for predicting short-term stock price movements.
At the moment, Salesforce.com has a Zacks Rank #3 (Hold), signifying that its performance may align with the overall market trend in the upcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Reviewing Salesforce.com's Recent Stock Price Trends
Over the preceding four weeks, the stock's value has appreciated by 12.4%, against an upturn of 2.9% in the Zacks S&P 500 composite. In parallel, the Zacks Computer and Technology sector, which counts Salesforce.com among its entities, has appreciated by 3.4%. Over the past three months, the company's shares have seen an increase of 42.2% versus the S&P 500's 12.8% increase. The sector overall has witnessed an increase of 17% over the same period.