Have you assessed how the international operations of CrowdStrike Holdings (CRWD Quick QuoteCRWD - Free Report) performed in the quarter ended July 2024? For this cloud-based security company, 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.

While analyzing CRWD'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 recent quarter saw the company's total revenue reaching $963.87 million, marking an improvement of 31.7% from the prior-year quarter. Next, we'll examine the breakdown of CRWD's revenue from abroad to comprehend the significance of its international presence.

Decoding CRWD's International Revenue Trends

Asia Pacific accounted for 10.2% of the company's total revenue during the quarter, translating to $98.27 million. Revenues from this region represented a surprise of -0.13%, with Wall Street analysts collectively expecting $98.4 million. When compared to the preceding quarter and the same quarter in the previous year, Asia Pacific contributed $93.46 million (10.2%) and $75.2 million (10.3%) to the total revenue, respectively.

Other International generated $61.75 million in revenues for the company in the last quarter, constituting 6.4% of the total. This represented a surprise of +6.31% compared to the $58.08 million projected by Wall Street analysts. Comparatively, in the previous quarter, Other International accounted for $55.94 million (6.1%), and in the year-ago quarter, it contributed $43.66 million (6%) to the total revenue.

During the quarter, Europe, Middle East, and Africa contributed $148.85 million in revenue, making up 15.4% of the total revenue. When compared to the consensus estimate of $147.42 million, this meant a surprise of +0.97%. Looking back, Europe, Middle East, and Africa contributed $141.61 million, or 15.4%, in the previous quarter, and $111.91 million, or 15.3%, in the same quarter of the previous year.

Revenue Projections for Overseas Markets

For the current fiscal quarter, it is anticipated by Wall Street analysts that CrowdStrike will report a total revenue of $982.18 million, which reflects an increase of 25% from the same quarter in the previous year. The revenue contributions are expected to be 10.7% from Asia Pacific ($104.82 million), 6.3% from Other International ($62.13 million) and 16% from Europe, Middle East, and Africa ($157.3 million).

For the full year, the company is expected to generate $3.91 billion in total revenue, up 28% from the previous year. Revenues from Asia Pacific, Other International and Europe, Middle East, and Africa are expected to constitute 10.4% ($407.54 million), 6.2% ($242.11 million) and 15.7% ($613.74 million) of the total, respectively.

Concluding Remarks

CrowdStrike's reliance on international markets for revenues offers both opportunities and risks. Hence, keeping an eye on its international revenue trends could significantly help forecast the company's prospects.

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.

At Zacks, a company's changing earnings outlook is given considerable attention due to its proven, strong influence on a stock's price performance in the near term. The connection here is straightforward and positive: when earnings estimates are revised upward, the stock price generally follows suit, increasing as well.

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.

CrowdStrike currently has a Zacks Rank #5 (Strong Sell), indicating that it could underperform the broader market in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

A Look at CrowdStrike's Recent Stock Price Performance

The stock has increased by 27.3% over the past month compared to the 4% rise of the Zacks S&P 500 composite. Meanwhile, the Zacks Computer and Technology sector, which includes CrowdStrike, has increased 4% during this time frame. Over the past three months, the company's shares have experienced a loss of 20.6% relative to the S&P 500's 8.2% increase. Throughout this period, the sector overall has witnessed a 5.2% increase.