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Salesforce.com (CRM) Reliance on International Sales: What Investors Need to Know
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Did you analyze how Salesforce.com (CRM - Free Report) fared in its international operations for the quarter ending July 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 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.
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.
In our recent assessment of CRM's quarterly performance, we discovered notable trends in its overseas revenue sections, which are typically modeled and scrutinized by Wall Street analysts.
The company's total revenue for the quarter amounted to $9.33 billion, showing rise of 8.4%. We will now explore the breakdown of CRM's overseas revenue to assess the impact of its international operations.
A Closer Look at CRM's Revenue Streams Abroad
Europe accounted for 23.4% of the company's total revenue during the quarter, translating to $2.18 billion. Revenues from this region represented a surprise of +12.39%, with Wall Street analysts collectively expecting $1.94 billion. When compared to the preceding quarter and the same quarter in the previous year, Europe contributed $2.15 billion (23.5%) and $1.97 billion (23%) to the total revenue, respectively.
Asia Pacific generated $940 million in revenues for the company in the last quarter, constituting 10.1% of the total. This represented a surprise of +2.52% compared to the $916.88 million projected by Wall Street analysts. Comparatively, in the previous quarter, Asia Pacific accounted for $926 million (10.1%), and in the year-ago quarter, it contributed $860 million (10%) to the total revenue.
International Revenue Predictions
Wall Street analysts expect Salesforce.com to report $9.35 billion in total revenue for the current fiscal quarter, indicating an increase of 7.2% from the year-ago quarter. Europe and Asia Pacific are expected to contribute 21.1% ($1.98 billion) and 9.9% ($929.69 million) to the total revenue, respectively.
For the full year, the company is expected to generate $37.86 billion in total revenue, up 8.6% from the previous year. Revenues from Europe and Asia Pacific are expected to constitute 21.6% ($8.19 billion) and 10% ($3.77 billion) of the total, respectively.
Closing Remarks
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.
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.
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.
Assessing Salesforce.com's Stock Price Movement in Recent Times
The stock has increased by 3.7% 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 Salesforce.com, has increased 4% during this time frame. Over the past three months, the company's shares have experienced a gain of 4.6% relative to the S&P 500's 8.2% increase. Throughout this period, the sector overall has witnessed a 5.2% increase.
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Salesforce.com (CRM) Reliance on International Sales: What Investors Need to Know
Did you analyze how Salesforce.com (CRM - Free Report) fared in its international operations for the quarter ending July 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 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.
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.
In our recent assessment of CRM's quarterly performance, we discovered notable trends in its overseas revenue sections, which are typically modeled and scrutinized by Wall Street analysts.
The company's total revenue for the quarter amounted to $9.33 billion, showing rise of 8.4%. We will now explore the breakdown of CRM's overseas revenue to assess the impact of its international operations.
A Closer Look at CRM's Revenue Streams Abroad
Europe accounted for 23.4% of the company's total revenue during the quarter, translating to $2.18 billion. Revenues from this region represented a surprise of +12.39%, with Wall Street analysts collectively expecting $1.94 billion. When compared to the preceding quarter and the same quarter in the previous year, Europe contributed $2.15 billion (23.5%) and $1.97 billion (23%) to the total revenue, respectively.
Asia Pacific generated $940 million in revenues for the company in the last quarter, constituting 10.1% of the total. This represented a surprise of +2.52% compared to the $916.88 million projected by Wall Street analysts. Comparatively, in the previous quarter, Asia Pacific accounted for $926 million (10.1%), and in the year-ago quarter, it contributed $860 million (10%) to the total revenue.
International Revenue Predictions
Wall Street analysts expect Salesforce.com to report $9.35 billion in total revenue for the current fiscal quarter, indicating an increase of 7.2% from the year-ago quarter. Europe and Asia Pacific are expected to contribute 21.1% ($1.98 billion) and 9.9% ($929.69 million) to the total revenue, respectively.For the full year, the company is expected to generate $37.86 billion in total revenue, up 8.6% from the previous year. Revenues from Europe and Asia Pacific are expected to constitute 21.6% ($8.19 billion) and 10% ($3.77 billion) of the total, respectively.
Closing Remarks
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.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.
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.
Salesforce.com currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Assessing Salesforce.com's Stock Price Movement in Recent Times
The stock has increased by 3.7% 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 Salesforce.com, has increased 4% during this time frame. Over the past three months, the company's shares have experienced a gain of 4.6% relative to the S&P 500's 8.2% increase. Throughout this period, the sector overall has witnessed a 5.2% increase.