Have you looked into how Uber Technologies (UBER Quick QuoteUBER - Free Report) performed internationally during the quarter ending December 2024? Considering the widespread global presence of this ride-hailing company, examining the trends in international revenues is essential for assessing its financial resilience and prospects for growth.

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.

Presence in international markets can act as a hedge against domestic economic downturns and provide access to faster-growing economies. However, this diversification also brings complexities due to currency fluctuations, geopolitical risks and differing market dynamics.

Upon examining UBER'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.

The company's total revenue for the quarter stood at $11.96 billion, increasing 20.4% year over year. Now, let's delve into UBER's international revenue breakdown to gain insights into the significance of its operations beyond home turf.

A Look into UBER's International Revenue Streams

Latin America generated $727 million in revenues for the company in the last quarter, constituting 6.08% of the total. This represented a surprise of -12.96% compared to the $835.21 million projected by Wall Street analysts. Comparatively, in the previous quarter, Latin America accounted for $679 million (6.07%), and in the year-ago quarter, it contributed $678 million (6.82%) to the total revenue.

Of the total revenue, $3.59 billion came from Europe, Middle East and Africa during the last fiscal quarter, accounting for 30.02%. This represented a surprise of +12.36% as analysts had expected the region to contribute $3.2 billion to the total revenue. In comparison, the region contributed $3.2 billion, or 28.57%, and $2.84 billion, or 28.56%, to total revenue in the previous and year-ago quarters, respectively.

During the quarter, Asia Pacific contributed $1.33 billion in revenue, making up 11.10% of the total revenue. When compared to the consensus estimate of $1.39 billion, this meant a surprise of -4.74%. Looking back, Asia Pacific contributed $1.31 billion, or 11.68%, in the previous quarter, and $1.19 billion, or 11.93%, in the same quarter of the previous year.

International Market Revenue Projections

Wall Street analysts expect Uber to report a total revenue of $11.61 billion in the current fiscal quarter, which suggests an increase of 14.6% from the prior-year quarter. Revenue shares from Latin America, Europe, Middle East and Africa and Asia Pacific are predicted to be 7.7%, 29.8% and 12.7%, corresponding to amounts of $891.12 million, $3.46 billion and $1.47 billion, respectively.

For the full year, the company is projected to achieve a total revenue of $50.6 billion, which signifies a rise of 15.1% from the last year. The share of this revenue from various regions is expected to be: Latin America at 8.3% ($4.22 billion), Europe, Middle East and Africa at 32.7% ($16.53 billion) and Asia Pacific at 14% ($7.1 billion).

The Bottom Line

Uber'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 interdependencies and escalating geopolitical disputes, Wall Street analysts are vigilant in tracking these trends for businesses with a global reach, in order to refine their predictions of earnings. It should be noted, however, that a multitude of other elements, such as a company's domestic position, also play a significant role in shaping the 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.

Uber, bearing a Zacks Rank #2 (Buy), is expected to outperform the broader market's movements in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

A Look at Uber's Recent Stock Price Performance

The stock has increased by 19.7% over the past month compared to the 2.6% rise of the Zacks S&P 500 composite. Meanwhile, the Zacks Computer and Technology sector, which includes Uber, has increased 0.3% during this time frame. Over the past three months, the company's shares have experienced a gain of 13.3% relative to the S&P 500's 4.2% increase. Throughout this period, the sector overall has witnessed a 3.8% increase.