Have you evaluated the performance of Progress Software's (PRGS Quick QuotePRGS - Free Report) international operations during the quarter that concluded in November 2024? Considering the extensive worldwide presence of this business software maker, analyzing the patterns in international revenues is crucial for understanding its financial resilience and potential for growth.

In the modern, closely-knit global economic landscape, the capacity of a business to access foreign markets is often a key determinant of its financial well-being and growth path. Investors now place great importance on grasping the extent of a company's dependence on international markets, as it sheds light on the firm's earnings stability, its skill in leveraging various economic cycles and its broad 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 PRGS' 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 $214.96 million, experiencing an increase of 21.1% year over year. Next, we'll explore the breakdown of PRGS' international revenue to understand the importance of its overseas business operations.

Unveiling Trends in PRGS' International Revenues

Latin America generated $5.68 million in revenues for the company in the last quarter, constituting 2.64% of the total. This represented a surprise of -10.91% compared to the $6.37 million projected by Wall Street analysts. Comparatively, in the previous quarter, Latin America accounted for $5.36 million (3.00%), and in the year-ago quarter, it contributed $5.82 million (3.28%) to the total revenue.

During the quarter, Europe, Middle East and Africa contributed $67.63 million in revenue, making up 31.46% of the total revenue. When compared to the consensus estimate of $67.71 million, this meant a surprise of -0.12%. Looking back, Europe, Middle East and Africa contributed $57.03 million, or 31.92%, in the previous quarter, and $56.49 million, or 31.82%, in the same quarter of the previous year.

Asia Pacific accounted for 4.29% of the company's total revenue during the quarter, translating to $9.21 million. Revenues from this region represented a surprise of -34.94%, with Wall Street analysts collectively expecting $14.16 million. When compared to the preceding quarter and the same quarter in the previous year, Asia Pacific contributed $11.92 million (6.67%) and $9.48 million (5.34%) to the total revenue, respectively.

Revenue Projections for Overseas Markets

Wall Street analysts expect Progress Software to report $235.85 million in total revenue for the current fiscal quarter, indicating an increase of 27.7% from the year-ago quarter. Latin America, Europe, Middle East and Africa and Asia Pacific are expected to contribute 2.6% ($6.22 million), 31.4% ($74.08 million) and 4.3% ($10.09 million) to the total revenue, respectively.

For the full year, a total revenue of $964.63 million is expected for the company, reflecting an increase of 28% from the year before. The revenues from Latin America, Europe, Middle East and Africa and Asia Pacific are expected to make up 2.6%, 31.5% and 4.3% of this total, corresponding to $25.46 million, $303.41 million and $41.33 million respectively.

Concluding Remarks

Progress Software'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.

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, we place significant importance on a company's evolving earnings outlook. This is based on empirical evidence demonstrating its strong influence on a stock's short -term price movements. Invariably, there exists a positive relationship -- an upward revision in earnings estimates is typically mirrored by a rise in the stock price.

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.

Progress Software 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 >>>>

Reviewing Progress Software's Recent Stock Price Trends

Over the preceding four weeks, the stock's value has diminished by 19.1%, against an upturn of 1.1% in the Zacks S&P 500 composite. In parallel, the Zacks Computer and Technology sector, which counts Progress Software among its entities, has appreciated by 0.4%. Over the past three months, the company's shares have seen a decline of 17.6% versus the S&P 500's 5.3% increase. The sector overall has witnessed an increase of 8.2% over the same period.