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Don't Overlook Veeva (VEEV) International Revenue Trends While Assessing the Stock
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Have you assessed how the international operations of Veeva Systems (VEEV - Free Report) performed in the quarter ended April 2024? For this provider of cloud-based software services for the life sciences industry, possessing an expansive global footprint, parsing the trends of international revenues could be critical to gauge its financial resilience and growth prospects.
In today's increasingly interconnected global economy, a company's ability to tap into international markets can be a pivotal factor in shaping its overall financial health and growth trajectory. For investors, understanding a company's reliance on overseas markets has become increasingly crucial, as it offers insights into the company's sustainability of earnings, ability to tap into diverse economic cycles and overall growth potential.
International market involvement serves as insurance against economic downturns at home and enables engagement with economies that are growing more quickly. Still, this move toward diversification is not without its challenges, as it involves navigating through the fluctuations of currencies, geopolitical threats, and the distinctive nature of various markets.
Upon examining VEEV's recent quarterly performance, we noticed several interesting patterns in the revenue generated from its international segments, which are commonly analyzed and observed by Wall Street experts.
For the quarter, the company's total revenue amounted to $650.35 million, experiencing an increase of 23.6% year over year. Next, we'll explore the breakdown of VEEV's international revenue to understand the importance of its overseas business operations.
A Closer Look at VEEV's Revenue Streams Abroad
Europe generated $189.92 million in revenues for the company in the last quarter, constituting 29.2% of the total. This represented a surprise of +5.84% compared to the $179.43 million projected by Wall Street analysts. Comparatively, in the previous quarter, Europe accounted for $183.14 million (29%), and in the year-ago quarter, it contributed $142.42 million (27.1%) to the total revenue.
Of the total revenue, $62.44 million came from Asia Pacific during the last fiscal quarter, accounting for 9.6%. This represented a surprise of -8.15% as analysts had expected the region to contribute $67.98 million to the total revenue. In comparison, the region contributed $65.88 million, or 10.5%, and $55.58 million, or 10.6%, to total revenue in the previous and year-ago quarters, respectively.
During the quarter, Middle East, Africa, and Latin America contributed $16.39 million in revenue, making up 2.5% of the total revenue. When compared to the consensus estimate of $17.12 million, this meant a surprise of -4.26%. Looking back, Middle East, Africa, and Latin America contributed $16.87 million, or 2.7%, in the previous quarter, and $14.35 million, or 2.7%, in the same quarter of the previous year.
Revenue Projections for Overseas Markets
Wall Street analysts expect Veeva to report a total revenue of $667.96 million in the current fiscal quarter, which suggests an increase of 13.2% from the prior-year quarter. Revenue shares from Europe, Asia Pacific and Middle East, Africa, and Latin America are predicted to be 28.4%, 10.7% and 2.7%, corresponding to amounts of $189.93 million, $71.44 million and $17.88 million, respectively.
For the full year, the company is expected to generate $2.71 billion in total revenue, up 14.8% from the previous year. Revenues from Europe, Asia Pacific and Middle East, Africa, and Latin America are expected to constitute 28.4% ($770.67 million), 10.7% ($288.89 million) and 2.7% ($72.77 million) of the total, respectively.
Wrapping Up
Veeva's leaning on foreign markets for its revenue stream presents a mix of chances and challenges. Therefore, a vigilant watch on its international revenue movements can greatly aid in projecting the company's future direction.
With the increasing intricacies of global interdependence and geopolitical strife, Wall Street analysts meticulously observe these patterns, especially for companies with an international footprint, to tweak their forecasts of earnings. Importantly, several additional factors, such as a company's domestic market status, also impact these earnings forecasts.
We at Zacks strongly focus on the dynamic earnings forecast of companies, given that empirical studies have demonstrated its potent impact on the immediate price movement of stocks. Invariably, there's a positive relationship -- upward earnings predictions often result in an increase in stock prices.
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 past month, the stock has lost 12.9% versus the Zacks S&P 500 composite's 3.4% increase. The Zacks Computer and Technology sector, of which Veeva is a part, has risen 5.4% over the same period. The company's shares have declined 22.6% over the past three months compared to the S&P 500's 3.5% increase. Over the same period, the sector has risen 5.6%.
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Don't Overlook Veeva (VEEV) International Revenue Trends While Assessing the Stock
Have you assessed how the international operations of Veeva Systems (VEEV - Free Report) performed in the quarter ended April 2024? For this provider of cloud-based software services for the life sciences industry, possessing an expansive global footprint, parsing the trends of international revenues could be critical to gauge its financial resilience and growth prospects.
In today's increasingly interconnected global economy, a company's ability to tap into international markets can be a pivotal factor in shaping its overall financial health and growth trajectory. For investors, understanding a company's reliance on overseas markets has become increasingly crucial, as it offers insights into the company's sustainability of earnings, ability to tap into diverse economic cycles and overall growth potential.
International market involvement serves as insurance against economic downturns at home and enables engagement with economies that are growing more quickly. Still, this move toward diversification is not without its challenges, as it involves navigating through the fluctuations of currencies, geopolitical threats, and the distinctive nature of various markets.
Upon examining VEEV's recent quarterly performance, we noticed several interesting patterns in the revenue generated from its international segments, which are commonly analyzed and observed by Wall Street experts.
For the quarter, the company's total revenue amounted to $650.35 million, experiencing an increase of 23.6% year over year. Next, we'll explore the breakdown of VEEV's international revenue to understand the importance of its overseas business operations.
A Closer Look at VEEV's Revenue Streams Abroad
Europe generated $189.92 million in revenues for the company in the last quarter, constituting 29.2% of the total. This represented a surprise of +5.84% compared to the $179.43 million projected by Wall Street analysts. Comparatively, in the previous quarter, Europe accounted for $183.14 million (29%), and in the year-ago quarter, it contributed $142.42 million (27.1%) to the total revenue.
Of the total revenue, $62.44 million came from Asia Pacific during the last fiscal quarter, accounting for 9.6%. This represented a surprise of -8.15% as analysts had expected the region to contribute $67.98 million to the total revenue. In comparison, the region contributed $65.88 million, or 10.5%, and $55.58 million, or 10.6%, to total revenue in the previous and year-ago quarters, respectively.
During the quarter, Middle East, Africa, and Latin America contributed $16.39 million in revenue, making up 2.5% of the total revenue. When compared to the consensus estimate of $17.12 million, this meant a surprise of -4.26%. Looking back, Middle East, Africa, and Latin America contributed $16.87 million, or 2.7%, in the previous quarter, and $14.35 million, or 2.7%, in the same quarter of the previous year.
Revenue Projections for Overseas Markets
Wall Street analysts expect Veeva to report a total revenue of $667.96 million in the current fiscal quarter, which suggests an increase of 13.2% from the prior-year quarter. Revenue shares from Europe, Asia Pacific and Middle East, Africa, and Latin America are predicted to be 28.4%, 10.7% and 2.7%, corresponding to amounts of $189.93 million, $71.44 million and $17.88 million, respectively.
For the full year, the company is expected to generate $2.71 billion in total revenue, up 14.8% from the previous year. Revenues from Europe, Asia Pacific and Middle East, Africa, and Latin America are expected to constitute 28.4% ($770.67 million), 10.7% ($288.89 million) and 2.7% ($72.77 million) of the total, respectively.
Wrapping Up
Veeva's leaning on foreign markets for its revenue stream presents a mix of chances and challenges. Therefore, a vigilant watch on its international revenue movements can greatly aid in projecting the company's future direction.
With the increasing intricacies of global interdependence and geopolitical strife, Wall Street analysts meticulously observe these patterns, especially for companies with an international footprint, to tweak their forecasts of earnings. Importantly, several additional factors, such as a company's domestic market status, also impact these earnings forecasts.
We at Zacks strongly focus on the dynamic earnings forecast of companies, given that empirical studies have demonstrated its potent impact on the immediate price movement of stocks. Invariably, there's a positive relationship -- upward earnings predictions often result in an increase in stock prices.
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.
Currently, Veeva holds a Zacks Rank #3 (Hold), signifying its potential to match the overall market's performance in the forthcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Exploring Recent Trends in Veeva's Stock Price
Over the past month, the stock has lost 12.9% versus the Zacks S&P 500 composite's 3.4% increase. The Zacks Computer and Technology sector, of which Veeva is a part, has risen 5.4% over the same period. The company's shares have declined 22.6% over the past three months compared to the S&P 500's 3.5% increase. Over the same period, the sector has risen 5.6%.