Did you analyze how Zoom Communications (ZM Quick QuoteZM - Free Report) fared in its international operations for the quarter ending April 2025? Given the widespread global presence of this video-conferencing company, scrutinizing the trends in international revenues becomes imperative to assess its financial strength and future growth possibilities.

In the current global economy, which is more interconnected than ever, a company's success in penetrating international markets is crucial for its financial health and growth journey. Investors must understand a company's dependence on overseas markets, as this offers a window into the company's earnings stability, its ability to benefit from varied economic cycles and its potential for long-term growth.

Presence in international markets can act as a hedge against domestic economic downturns and provide access to faster-growing economies. However, this diversification also brings complexities due to currency fluctuations, geopolitical risks and differing market dynamics.

While delving into ZM's performance for the past quarter, we observed some fascinating trends in the revenue from its foreign segments that are commonly modeled and observed by analysts on Wall Street.

The company's total revenue for the quarter stood at $1.17 billion, increasing 2.9% year over year. Now, let's delve into ZM's international revenue breakdown to gain insights into the significance of its operations beyond home turf.

Decoding ZM's International Revenue Trends

APAC accounted for 12.09% of the company's total revenue during the quarter, translating to $142 million. Revenues from this region represented a surprise of -0.7%, with Wall Street analysts collectively expecting $143.01 million. When compared to the preceding quarter and the same quarter in the previous year, APAC contributed $146.48 million (12.37%) and $138 million (12.09%) to the total revenue, respectively.

Of the total revenue, $185 million came from EMEA during the last fiscal quarter, accounting for 15.75%. This represented a surprise of +0.23% as analysts had expected the region to contribute $184.58 million to the total revenue. In comparison, the region contributed $187.08 million, or 15.80%, and $184 million, or 16.12%, to total revenue in the previous and year-ago quarters, respectively.

Projected Revenues in Foreign Markets

Wall Street analysts expect Zoom to report $1.2 billion in total revenue for the current fiscal quarter, indicating an increase of 3% from the year-ago quarter. APAC and EMEA are expected to contribute 12.3% ($146.93 million) and 15.8% ($189.09 million) to the total revenue, respectively.

Analysts expect the company to report a total annual revenue of $4.8 billion for the full year, marking an increase of 2.9% compared to last year. The expected revenue contributions from APAC and EMEA are projected to be 12.3% ($591.96 million) and 15.9% ($762.16 million) of the total revenue, in that order.

Wrapping Up

Relying on international markets for revenues, Zoom faces both prospects and perils. Thus, tracking the company's international revenue trends is essential for accurately projecting its future trajectory.

In an era of growing international ties and escalating geopolitical disputes, financial analysts on Wall Street pay keen attention to these developments to fine-tune their earnings estimations for businesses operating across borders. It's important to note, however, that a range of additional variables, like a company's local market status, also play a crucial role in shaping these forecasts.

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.

With an impressive externally audited track record, our proprietary stock rating tool - the Zacks Rank - harnesses the power of earnings estimate revisions and serves as an effective indicator of a stock's near-term price performance.

At present, Zoom holds a Zacks Rank #3 (Hold). This ranking implies that its near-term performance might mirror the overall market movement. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Examining the Latest Trends in Zoom's Stock Value

The stock has witnessed an increase of 4.3% over the past month versus the Zacks S&P 500 composite's an increase of 8.2%. In the same interval, the Zacks Computer and Technology sector, to which Zoom belongs, has registered an increase of 13.4%. Over the past three months, the company's shares saw an increase of 7.6%, while the S&P 500 declined by 3.2%. In comparison, the sector experienced a decline of 4.7% during this timeframe.