Have you evaluated the performance of Veeva Systems' (VEEV) international operations during the quarter that concluded in April 2025? Considering the extensive worldwide presence of this provider of cloud-based software services for the life sciences industry, analyzing the patterns in international revenues is crucial for understanding its financial resilience and potential 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.
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.
Our review of VEEV's last quarterly performance uncovered some notable trends in the revenue contributions from its international markets, which are commonly analyzed and tracked by Wall Street experts.
The company's total revenue for the quarter amounted to $759.04 million, showing rise of 16.7%. We will now explore the breakdown of VEEV's overseas revenue to assess the impact of its international operations.
A Look into VEEV's International Revenue Streams
Europe generated $217.1 million in revenues for the company in the last quarter, constituting 28.60% of the total. This represented a surprise of +3.63% compared to the $209.5 million projected by Wall Street analysts. Comparatively, in the previous quarter, Europe accounted for $203.88 million (28.28%), and in the year-ago quarter, it contributed $189.92 million (29.20%) to the total revenue.
During the quarter, Asia Pacific contributed $65.37 million in revenue, making up 8.61% of the total revenue. When compared to the consensus estimate of $70.35 million, this meant a surprise of -7.08%. Looking back, Asia Pacific contributed $69.76 million, or 9.68%, in the previous quarter, and $62.44 million, or 9.60%, in the same quarter of the previous year.
Middle East, Africa, and Latin America accounted for 2.25% of the company's total revenue during the quarter, translating to $17.1 million. Revenues from this region represented a surprise of -5.61%, with Wall Street analysts collectively expecting $18.12 million. When compared to the preceding quarter and the same quarter in the previous year, Middle East, Africa, and Latin America contributed $17.59 million (2.44%) and $16.39 million (2.52%) to the total revenue, respectively.
Projected Revenues in Foreign Markets
It is projected by analysts on Wall Street that Veeva will post revenues of $767.64 million for the ongoing fiscal quarter, an increase of 13.5% from the year-ago quarter. The expected contributions from Europe, Asia Pacific and Middle East, Africa, and Latin America to this revenue are 28.2%, 9.5% and 2.4%, translating into $216.66 million, $73.14 million and $18.75 million, respectively.
For the full year, the company is expected to generate $3.08 billion in total revenue, up 12.3% from the previous year. Revenues from Europe, Asia Pacific and Middle East, Africa, and Latin America are expected to constitute 28.3% ($872.71 million), 9.6% ($295.13 million) and 2.5% ($75.56 million) of the total, respectively.
In Conclusion
Veeva's leaning on foreign markets for its revenue stream presents a mix of chances and challenges. Therefore, a vigilant watch on its international revenue movements can greatly aid in projecting the company's future direction.
In an environment where global interconnections and geopolitical skirmishes are intensifying, Wall Street analysts keep a keen eye on these trends, particularly for firms with overseas operations, to adjust their earnings predictions. Moreover, a range of other aspects, including how a company fares in its home country, significantly affects these projections.
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.
Boasting a remarkable track record that's been externally verified, the Zacks Rank, our unique stock rating system, leverages changes in earnings projections to function as a reliable gauge for predicting short-term stock price movements.
At present, Veeva holds a Zacks Rank #2 (Buy). This ranking implies that its near-term performance might beat the overall market movement. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
A Look at Veeva's Recent Stock Price Performance
Over the past month, the stock has gained 17.6% versus the Zacks S&P 500 composite's 4.6% increase. The Zacks Medical sector, of which Veeva is a part, has declined 2.8% over the same period. The company's shares have increased 16.3% over the past three months compared to the S&P 500's 0.1% increase. Over the same period, the sector has declined 10.9%.
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
Veeva Systems Inc. (VEEV): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
