Have you evaluated the performance of CrowdStrike Holdings' (CRWD Quick QuoteCRWD - Free Report) international operations during the quarter that concluded in October 2024? Considering the extensive worldwide presence of this cloud-based security company, 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.

Being present in international markets serves as a counterbalance to domestic economic challenges while offering chances to engage with more rapidly evolving economies. However, this kind of diversification introduces challenges like currency fluctuations, geopolitical uncertainties and varying market trends.

Upon examining CRWD'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 $1.01 billion, experiencing an increase of 28.5% year over year. Next, we'll explore the breakdown of CRWD's international revenue to understand the importance of its overseas business operations.

A Closer Look at CRWD's Revenue Streams Abroad

Europe, Middle East, and Africa accounted for 15.90% of the company's total revenue during the quarter, translating to $160.57 million. Revenues from this region represented a surprise of +2.08%, with Wall Street analysts collectively expecting $157.3 million. When compared to the preceding quarter and the same quarter in the previous year, Europe, Middle East, and Africa contributed $148.85 million (15.44%) and $119.16 million (15.16%) to the total revenue, respectively.

During the quarter, Other International contributed $63.29 million in revenue, making up 6.27% of the total revenue. When compared to the consensus estimate of $62.13 million, this meant a surprise of +1.87%. Looking back, Other International contributed $61.75 million, or 6.41%, in the previous quarter, and $47.52 million, or 6.05%, in the same quarter of the previous year.

Of the total revenue, $102.84 million came from Asia Pacific during the last fiscal quarter, accounting for 10.18%. This represented a surprise of -1.89% as analysts had expected the region to contribute $104.82 million to the total revenue. In comparison, the region contributed $98.27 million, or 10.20%, and $81.46 million, or 10.36%, to total revenue in the previous and year-ago quarters, respectively.

Anticipated Revenues in Overseas Markets

It is projected by analysts on Wall Street that CrowdStrike will post revenues of $1.03 billion for the ongoing fiscal quarter, an increase of 22.3% from the year-ago quarter. The expected contributions from Europe, Middle East, and Africa, Other International and Asia Pacific to this revenue are 16.2%, 6.4% and 10.7%, translating into $167.41 million, $65.97 million and $110.85 million, respectively.

For the full year, the company is projected to achieve a total revenue of $3.93 billion, which signifies a rise of 28.5% from the last year. The share of this revenue from various regions is expected to be: Europe, Middle East, and Africa at 15.6% ($613.74 million), Other International at 6.2% ($242.11 million) and Asia Pacific at 10.4% ($407.54 million).

Key Takeaways

The dependency of CrowdStrike 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 an era of growing international ties and escalating geopolitical disputes, financial analysts on Wall Street pay keen attention to these developments to fine-tune their earnings estimations for businesses operating across borders. It's important to note, however, that a range of additional variables, like a company's local market status, also play a crucial role in shaping these 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.

The Zacks Rank, our proprietary stock rating mechanism, demonstrates a notable performance history confirmed through external audits. It effectively utilizes the power of earnings estimate revisions to act as a predictor of a stock's price performance in the near term.

Currently, CrowdStrike 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 >>>>

Exploring Recent Trends in CrowdStrike's Stock Price

The stock has witnessed an increase of 14.1% 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 CrowdStrike belongs, has registered an increase of 0.1%. Over the past three months, the company's shares saw an increase of 40.4%, while the S&P 500 increased by 8.2%. In comparison, the sector experienced an increase of 6.5% during this timeframe.