Did you analyze how Veeva Systems (VEEV Quick QuoteVEEV - Free Report) fared in its international operations for the quarter ending July 2024? Given the widespread global presence of this provider of cloud-based software services for the life sciences industry, 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.

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 $676.18 million, experiencing an increase of 14.6% year over year. Next, we'll explore the breakdown of VEEV's international revenue to understand the importance of its overseas business operations.

Trends in VEEV's Revenue from International Markets

During the quarter, Europe contributed $198.32 million in revenue, making up 29.3% of the total revenue. When compared to the consensus estimate of $190.14 million, this meant a surprise of +4.3%. Looking back, Europe contributed $189.92 million, or 29.2%, in the previous quarter, and $164.53 million, or 27.9%, in the same quarter of the previous year.

Asia Pacific generated $64.88 million in revenues for the company in the last quarter, constituting 9.6% of the total. This represented a surprise of -6.1% compared to the $69.09 million projected by Wall Street analysts. Comparatively, in the previous quarter, Asia Pacific accounted for $62.44 million (9.6%), and in the year-ago quarter, it contributed $63.96 million (10.8%) to the total revenue.

Middle East, Africa, and Latin America accounted for 2.5% of the company's total revenue during the quarter, translating to $17.02 million. Revenues from this region represented a surprise of -2.54%, with Wall Street analysts collectively expecting $17.46 million. When compared to the preceding quarter and the same quarter in the previous year, Middle East, Africa, and Latin America contributed $16.39 million (2.5%) and $15.4 million (2.6%) to the total revenue, respectively.

International Market Revenue Projections

Wall Street analysts expect Veeva to report a total revenue of $683.53 million in the current fiscal quarter, which suggests an increase of 10.9% from the prior-year quarter. Revenue shares from Europe, Asia Pacific and Middle East, Africa, and Latin America are predicted to be 29.7%, 10.5% and 2.7%, corresponding to amounts of $203.3 million, $71.59 million and $18.38 million, respectively.

Analysts expect the company to report a total annual revenue of $2.71 billion for the full year, marking an increase of 14.6% compared to last year. The expected revenue contributions from Europe, Asia Pacific and Middle East, Africa, and Latin America are projected to be 28.8% ($778.62 million), 10.1% ($272.87 million) and 2.6% ($70.07 million) of the total revenue, in that order.

Concluding Remarks

The dependency of Veeva 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 a world where international interdependencies and geopolitical conflicts are ever-increasing, Wall Street analysts closely monitor these trends for companies having international presence to adjust their earnings forecasts. Of course, there are several other factors, including a company's standing within its home borders, that influence analysts' earnings 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.

Our proprietary stock rating tool, the Zacks Rank, with its externally validated exceptional track record, harnesses the power of earnings estimate revisions to serve as a dependable measure for anticipating the short-term price trends of stocks.

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 >>>>

Reviewing Veeva's Recent Stock Price Trends

Over the preceding four weeks, the stock's value has appreciated by 19%, against an upturn of 3.4% in the Zacks S&P 500 composite. In parallel, the Zacks Computer and Technology sector, which counts Veeva among its entities, has appreciated by 1.2%. Over the past three months, the company's shares have seen an increase of 14.8% versus the S&P 500's 4.6% increase. The sector overall has witnessed a decline of 0.2% over the same period.