Have you looked into how Progress Software (PRGS) performed internationally during the quarter ending May 2025? Considering the widespread global presence of this business software maker, examining the trends in international revenues is essential for assessing its financial resilience and prospects 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.
While analyzing PRGS' 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 recent quarter saw the company's total revenue reaching $237.35 million, marking an improvement of 35.6% from the prior-year quarter. Next, we'll examine the breakdown of PRGS' revenue from abroad to comprehend the significance of its international presence.
Trends in PRGS' Revenue from International Markets
During the quarter, Latin America contributed $5.05 million in revenue, making up 2.13% of the total revenue. When compared to the consensus estimate of $5.05 million, this meant a surprise of +0.04%. Looking back, Latin America contributed $5.05 million, or 2.12%, in the previous quarter, and $4.6 million, or 2.63%, in the same quarter of the previous year.
Of the total revenue, $66.94 million came from Europe, Middle East and Africa during the last fiscal quarter, accounting for 28.20%. This represented a surprise of -0.04% as analysts had expected the region to contribute $66.97 million to the total revenue. In comparison, the region contributed $66.94 million, or 28.13%, and $57.54 million, or 32.86%, to total revenue in the previous and year-ago quarters, respectively.
Asia Pacific generated $11.37 million in revenues for the company in the last quarter, constituting 4.79% of the total. This represented a surprise of -0.05% compared to the $11.38 million projected by Wall Street analysts. Comparatively, in the previous quarter, Asia Pacific accounted for $11.37 million (4.78%), and in the year-ago quarter, it contributed $10.04 million (5.73%) to the total revenue.
Revenue Forecasts for the International Markets
For the current fiscal quarter, it is anticipated by Wall Street analysts that Progress Software will report a total revenue of $240.35 million, which reflects an increase of 34.5% from the same quarter in the previous year. The revenue contributions are expected to be 2% from Latin America ($4.9 million), 30.7% from Europe, Middle East and Africa ($73.68 million) and 5.1% from Asia Pacific ($12.24 million).
For the full year, the company is projected to achieve a total revenue of $965.22 million, which signifies a rise of 28.1% from the last year. The share of this revenue from various regions is expected to be: Latin America at 2.1% ($19.92 million), Europe, Middle East and Africa at 30.1% ($290.72 million) and Asia Pacific at 5% ($48.56 million).
Key Takeaways
Relying on international markets for revenues, Progress Software 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 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.
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.
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.
Progress Software, bearing a Zacks Rank #3 (Hold), is expected to mirror 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 >>>>
Assessing Progress Software's Stock Price Movement in Recent Times
Over the preceding four weeks, the stock's value has diminished by 15.2%, against an upturn of 5.2% in the Zacks S&P 500 composite. In parallel, the Zacks Computer and Technology sector, which counts Progress Software among its entities, has appreciated by 7.9%. Over the past three months, the company's shares have seen a decline of 5.6% versus the S&P 500's 24.1% increase. The sector overall has witnessed an increase of 37.5% over the same period.
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Progress Software Corporation (PRGS): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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