Citrix Systems (CTXS) reported its 4Q17 financial results on January 31, 2018, noting that the Americas region remains its most potent market force for the overall business. The company generated nearly 58.0% of its total revenues from the Americas.
This region was followed by Europe, the Middle East, and Africa (or EMEA) and the Asia-Pacific (or APJ) regions, with market share figures of 31.0% and 10.0%, respectively.
From the chart above, we can see the company’s market share in these three regions. In the last two years, North America and South America have presented a major market opportunity for Citrix, followed by the other two regions. In the last five quarters, revenues from the Americas region grew at a CAGR[1. compound annual growth rate] of 2.0%, followed by 0.3% and 2.3% in the EMEA and APJ regions, respectively.
In 4Q17, the revenues from the Americas market grew 13% YoY (year-over-year) to nearly $443.0 million. Likewise, the other two markets witnessed 1.3% and 9.5% YoY growth, respectively.
In fiscal 2017, the Americas region generated revenues of nearly $1.6 billion, up 3.0% YoY. During the same period, the EMEA and APJ regions reported annualized revenue growth of 3.0% and 7.0%, respectively.
Tailwinds and headwinds
Increased adoption of the virtual workspace, growth in the transition of the business to cloud computing, and its partnership with Microsoft (MSFT) have acted as strong catalysts for Citrix. Moreover, the US is the largest IT market in the world. In 4Q17, Citrix sealed 107 deals, with 58 transactions originating in the Americas region.
In July 2017, research firm Gartner forecast that global IT spending in 2018 could grow 3.5% to nearly $3.6 trillion, driven by 8.6% growth in the enterprise software market.
In 2017, Citrix (CTXS) reported $2.8 billion in revenues. It expects its 2018 revenues to be $2.86 billion–$2.88 billion.