Investing in CrowdStrike (CRWD)? Don't Miss Assessing Its International Revenue Trends

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Did you analyze how CrowdStrike Holdings (CRWD) fared in its international operations for the quarter ending April 2024? Given the widespread global presence of this cloud-based security company, scrutinizing the trends in international revenues becomes imperative to assess its financial strength and future growth possibilities.

In the current era of a tightly interconnected global economy, the proficiency of a company to penetrate international markets significantly influences its financial health and trajectory of growth. For investors, the key is to grasp how reliant a company is on overseas markets, as this provides insights into the durability of its earnings, its ability to exploit different economic cycles, and its overall growth capabilities.

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.

While analyzing CRWD’s performance for the last quarter, we found some intriguing trends in revenues from its overseas segments that Wall Street analysts commonly model and monitor.

The company’s total revenue for the quarter amounted to $921.04 million, marking an increase of 33% from the year-ago quarter. We will next turn our attention to dissecting CRWD’s international revenue to get a clearer picture of how significant its operations are outside its main base.

Unveiling Trends in CRWD’s International Revenues

Europe, Middle East, and Africa generated $141.61 million in revenues for the company in the last quarter, constituting 15.4% of the total. This represented a surprise of +2.38% compared to the $138.32 million projected by Wall Street analysts. Comparatively, in the previous quarter, Europe, Middle East, and Africa accounted for $132.31 million (15.7%), and in the year-ago quarter, it contributed $104.55 million (15.1%) to the total revenue.

Other International accounted for 6.1% of the company’s total revenue during the quarter, translating to $55.94 million. Revenues from this region represented a surprise of +2.84%, with Wall Street analysts collectively expecting $54.39 million. When compared to the preceding quarter and the same quarter in the previous year, Other International contributed $51.89 million (6.1%) and $40.98 million (5.9%) to the total revenue, respectively.

During the quarter, Asia Pacific contributed $93.46 million in revenue, making up 10.2% of the total revenue. When compared to the consensus estimate of $93.38 million, this meant a surprise of +0.09%. Looking back, Asia Pacific contributed $86.65 million, or 10.3%, in the previous quarter, and $72.22 million, or 10.4%, in the same quarter of the previous year.

Projected Revenues in Foreign Markets

For the current fiscal quarter, it is anticipated by Wall Street analysts that CrowdStrike will report a total revenue of $959.55 million, which reflects an increase of 31.2% from the same quarter in the previous year. The revenue contributions are expected to be 15.2% from Europe, Middle East, and Africa ($146.04 million), 6% from Other International ($57.48 million) and 10.2% from Asia Pacific ($98.03 million).

For the full year, the company is projected to achieve a total revenue of $4 billion, which signifies a rise of 30.8% from the last year. The share of this revenue from various regions is expected to be: Europe, Middle East, and Africa at 15.2% ($607.39 million), Other International at 6% ($239.1 million) and Asia Pacific at 10.2% ($407.69 million).

The Bottom Line

CrowdStrike’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.

Emphasizing a company’s shifting earnings prospects is a key aspect of our approach at Zacks, especially since research has proven its substantial influence on a stock’s price in the short run. This correlation is positively aligned, meaning that improved earnings projections tend to boost the stock’s 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.

Currently, CrowdStrike holds a Zacks Rank #5 (Strong Sell), signifying its potential to underperform 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 CrowdStrike’s Recent Stock Price Trends

Over the preceding four weeks, the stock’s value has appreciated by 8.8%, against an upturn of 3.3% in the Zacks S&P 500 composite. In parallel, the Zacks Computer and Technology sector, which counts CrowdStrike among its entities, has appreciated by 6.4%. Over the past three months, the company’s shares have seen an increase of 10.6% versus the S&P 500’s 4.1% increase. The sector overall has witnessed an increase of 7% over the same period.

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