Have you looked into how Atlassian (TEAM) performed internationally during the quarter ending September 2024? Considering the widespread global presence of this company, examining the trends in international revenues is essential for assessing its financial resilience and prospects for growth.
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.
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 TEAM'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 amounted to $1.19 billion, marking an increase of 21.5% from the year-ago quarter. We will next turn our attention to dissecting TEAM's international revenue to get a clearer picture of how significant its operations are outside its main base.
Exploring TEAM's International Revenue Patterns
EMEA generated $469.27 million in revenues for the company in the last quarter, constituting 39.51% of the total. This represented a surprise of +1.69% compared to the $461.46 million projected by Wall Street analysts. Comparatively, in the previous quarter, EMEA accounted for $447.61 million (39.56%), and in the year-ago quarter, it contributed $378.01 million (38.66%) to the total revenue.
Of the total revenue, $134.01 million came from Asia Pacific during the last fiscal quarter, accounting for 11.28%. This represented a surprise of +5.06% as analysts had expected the region to contribute $127.56 million to the total revenue. In comparison, the region contributed $126.9 million, or 11.21%, and $110.24 million, or 11.27%, to total revenue in the previous and year-ago quarters, respectively.
International Revenue Predictions
For the current fiscal quarter, it is anticipated by Wall Street analysts that Atlassian will report a total revenue of $1.23 billion, which reflects an increase of 16.3% from the same quarter in the previous year. The revenue contributions are expected to be 40.2% from EMEA ($495.73 million) and 11% from Asia Pacific ($135.23 million).For the full year, the company is expected to generate $5.05 billion in total revenue, up 15.9% from the previous year. Revenues from EMEA and Asia Pacific are expected to constitute 40.3% ($2.04 billion) and 11% ($557.06 million) of the total, respectively.
The Bottom Line
Relying on international markets for revenues, Atlassian faces both prospects and perils. Thus, tracking the company's international revenue trends is essential for accurately projecting its future trajectory.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.
Atlassian, bearing a Zacks Rank #4 (Sell), is expected to underperform 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 >>>>
Reviewing Atlassian's Recent Stock Price Trends
Over the past month, the stock has gained 31.2% versus the Zacks S&P 500 composite's 0.4% increase. The Zacks Computer and Technology sector, of which Atlassian is a part, has risen 2.1% over the same period. The company's shares have increased 58.6% over the past three months compared to the S&P 500's 5.5% increase. Over the same period, the sector has risen 5.5%.Research Chief Names "Single Best Pick to Double"
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This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
