Why Zoom Video (ZM) International Revenue Trends Deserve Your Attention

Have you evaluated the performance of Zoom Video Communications' (ZM) international operations during the quarter that concluded in October 2024? Considering the extensive worldwide presence of this video-conferencing company, analyzing the patterns in international revenues is crucial for understanding its financial resilience and potential for growth.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.While delving into ZM's performance for the past quarter, we observed some fascinating trends in the revenue from its foreign segments that are commonly modeled and observed by analysts on Wall Street.The company's total revenue for the quarter stood at $1.18 billion, increasing 3.6% year over year. Now, let's delve into ZM's international revenue breakdown to gain insights into the significance of its operations beyond home turf. Decoding ZM's International Revenue TrendsDuring the quarter, APAC contributed $144 million in revenue, making up 12.23% of the total revenue. When compared to the consensus estimate of $143.44 million, this meant a surprise of +0.39%. Looking back, APAC contributed $142.32 million, or 12.24%, in the previous quarter, and $143.92 million, or 12.66%, in the same quarter of the previous year.EMEA accounted for 15.88% of the company's total revenue during the quarter, translating to $187 million. Revenues from this region represented a surprise of +0.77%, with Wall Street analysts collectively expecting $185.58 million. When compared to the preceding quarter and the same quarter in the previous year, EMEA contributed $184.48 million (15.87%) and $178.5 million (15.70%) to the total revenue, respectively. Prospective Revenues in International Markets The current fiscal quarter's total revenue for Zoom Video, as projected by Wall Street analysts, is expected to reach $1.18 billion, reflecting an increase of 2.7% from the same quarter last year. The breakdown of this revenue by foreign region is as follows: APAC is anticipated to contribute 12.3% or $144.36 million and EMEA 15.9% or $187.68 million.For the entire year, the company's total revenue is forecasted to be $4.65 billion, which is an improvement of 2.8% from the previous year. The revenue contributions from different regions are expected as follows: APAC will contribute 12.2% ($567.97 million) and EMEA 15.9% ($741.74 million) to the total revenue. Closing Remarks Relying on global markets for revenues presents both prospects and challenges for Zoom Video. Therefore, scrutinizing its international revenue trends is key to effectively forecasting the company's future outlook.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.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.At the moment, Zoom Video has a Zacks Rank #1 (Strong Buy), signifying that it may outperform the overall market trend in the upcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Examining the Latest Trends in Zoom Video's Stock Value The stock has witnessed an increase of 9.4% over the past month versus the Zacks S&P 500 composite's an increase of 3.5%. In the same interval, the Zacks Computer and Technology sector, to which Zoom Video belongs, has registered an increase of 0.1%. Over the past three months, the company's shares saw an increase of 23.1%, while the S&P 500 increased by 8.2%. In comparison, the sector experienced an increase of 6.5% during this timeframe.Must-See: Solar Stocks Poised to SkyrocketThe solar industry stands to bounce back as tech companies and the economy transition away from fossil fuels to power the AI boom.Trillions of dollars will be invested in clean energy over the coming years – and analysts predict solar will account for 80% of the renewable energy expansion. This creates an outsized opportunity to profit in the near-term and for years to come. But you have to pick the right stocks to get into.Discover Zacks’ hottest solar stock recommendation FREE.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Zoom Video Communications, Inc. (ZM): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks