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Have you evaluated the performance of Progress Software's (PRGS) international operations during the quarter that concluded in November 2024? Considering the extensive worldwide presence of this business software maker, 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.
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 PRGS' 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 $214.96 million, experiencing an increase of 21.1% year over year. Next, we'll explore the breakdown of PRGS' international revenue to understand the importance of its overseas business operations.
Unveiling Trends in PRGS' International Revenues
Latin America generated $5.68 million in revenues for the company in the last quarter, constituting 2.64% of the total. This represented a surprise of -10.91% compared to the $6.37 million projected by Wall Street analysts. Comparatively, in the previous quarter, Latin America accounted for $5.36 million (3.00%), and in the year-ago quarter, it contributed $5.82 million (3.28%) to the total revenue.
During the quarter, Europe, Middle East and Africa contributed $67.63 million in revenue, making up 31.46% of the total revenue. When compared to the consensus estimate of $67.71 million, this meant a surprise of -0.12%. Looking back, Europe, Middle East and Africa contributed $57.03 million, or 31.92%, in the previous quarter, and $56.49 million, or 31.82%, in the same quarter of the previous year.
Asia Pacific accounted for 4.29% of the company's total revenue during the quarter, translating to $9.21 million. Revenues from this region represented a surprise of -34.94%, with Wall Street analysts collectively expecting $14.16 million. When compared to the preceding quarter and the same quarter in the previous year, Asia Pacific contributed $11.92 million (6.67%) and $9.48 million (5.34%) to the total revenue, respectively.