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Yahoo
29-05-2025
- Business
- Yahoo
Reasons to Retain Veeva Systems Stock in Your Portfolio for Now
Veeva Systems Inc. VEEV is well-poised for growth in the coming quarters, courtesy of its strong product portfolio. The optimism, led by a solid fourth-quarter fiscal 2025 performance and strategic deals, is expected to contribute further. However, rising operational costs remain a cause for concern. This Zacks Rank #3 (Hold) company's shares have risen 13.2% in the year-to-date period compared with 11.6% growth of the industry. The S&P 500 Composite has decreased 1.8% during the said time frame. The renowned provider of cloud-based software applications and data solutions for the life sciences industry has a market capitalization of $37.91 billion. The company anticipates 26.2% growth for the next five years and expects to maintain its strong performance in the future. It delivered a trailing four-quarter average earnings surprise of 7.92%. Image Source: Zacks Investment Research Robust Product Portfolio: Veeva Systems continues to drive the migration to its next-gen Vault CRM, with 20 new customers adopting the solution in the fourth quarter, particularly small and mid-sized biotech firms preparing for commercial launches. The company expects most top 20 pharma firms to make migration decisions by fiscal 2026, ahead of the 2030 sunset of the legacy CRM. Veeva Systems has introduced AI-driven innovations like CRM Voice Control, CRM Bot and MLR Bot to enhance efficiency, compliance and automation. Meanwhile, its Clinical Development Cloud sees growing adoption, with 17 of the top 20 pharma companies using its CTMS and a ninth committing to its EDC solution. Investments in RTSM and eCOA further expand its market opportunities. Veeva Systems' Data Cloud solutions—Compass, OpenData, Link, and the new Pulse—are gaining momentum. Compass supports over 100 brands, and Pulse secured its first seven-figure deal to enhance pharma segmentation and targeting. While enterprise-wide licensing is still in the early stages, larger contracts are expected. Veeva Systems is also expanding its Safety suite, offering a fully cloud-based solution for signal detection, adverse event reporting, and regulatory compliance, with automated updates and seamless clinical integration. Strategic Deals: Veeva Systems has secured several key deals in recent months, including Boehringer Ingelheim's commitment to migrate to Veeva Vault CRM, expanding its use of Veeva Commercial Cloud and Development Cloud. Additionally, ACTO joined the Veeva AI Partner Program to enhance generative AI capabilities for field representatives in life sciences. In October, Veeva Systems and Walgreens Boots Alliance announced a long-term partnership to leverage the former's Data Cloud and Clinical Platform, aiming to improve patient outcomes by connecting the latter's community locations with diverse patient populations for easier clinical research access. Strong Q4 Results: Veeva Systems exited the third quarter of fiscal 2025 with better-than-expected results, wherein both earnings and revenues beat their respective Zacks Consensus Estimate. This uptick in both top and bottom lines and robust performance by the Subscription services segment during the quarter were impressive. The rise in Professional services and others revenues also bodes well. Per management, Veeva Systems had a strong finish to the year by strengthening its partnerships across all customer segments, from large biopharma companies to smaller biotech firms. Rising Costs: Veeva Systems has been experiencing rising operating costs over the past few months. General and administrative expenses for the fourth quarter of fiscal 2025 increased 20.6% year over year. Management expects sales and marketing expenses to increase in fiscal 2025, primarily due to employee-related expenses as the company raises its headcount to support sales and marketing efforts associated with product offerings and the continued expansion of sales capacity across all solutions. In the fiscal fourth quarter, the total operating expenses increased 9.3% year over year. Veeva Systems expects operating expenses to increase in fiscal 2025, primarily due to employee compensation-related costs. Veeva Systems is witnessing a positive estimate revision trend for fiscal 2026. In the past 60 days, the Zacks Consensus Estimate for fiscal 2026 earnings per share (EPS) has moved a cent north to $7.30. The Zacks Consensus Estimate for first-quarter fiscal 2026 revenues is pegged at $727.9 million, indicating an 11.9% improvement from the year-ago quarter's reported number. The EPS estimate for the first quarter of fiscal 2026 is pinned at $1.74, implying a 16% improvement year over year. Some better-ranked stocks in the broader medical space that have announced quarterly results are CVS Health Corporation CVS, Integer Holdings Corporation ITGR and AngioDynamics ANGO. CVS Health, carrying a Zacks Rank of 2 (Buy), reported first-quarter 2025 adjusted earnings per share (EPS) of $2.25, beating the Zacks Consensus Estimate by 31.6%. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Revenues of $94.59 billion outpaced the consensus mark by 1.8%. CVS Health has a long-term estimated growth rate of 11.4%. Its earnings surpassed estimates in each of the trailing four quarters, with an average surprise of 18.1%. Integer Holdings reported first-quarter 2025 adjusted EPS of $1.31, beating the Zacks Consensus Estimate by 3.2%. Revenues of $437.4 million surpassed the Zacks Consensus Estimate by 1.3%. It currently sports a Zacks Rank of 1. Integer Holdings has a long-term estimated growth rate of 18.4%. ITGR's earnings surpassed estimates in three of the trailing four quarters and missed once, the average surprise being 2.8%. AngioDynamics, currently sporting a Zacks Rank #1, reported a third-quarter fiscal 2025 adjusted EPS of 3 cents against the Zacks Consensus Estimate of a 13-cent loss. Revenues of $72 million beat the Zacks Consensus Estimate by 2%. ANGO has an estimated fiscal 2026 earnings growth rate of 27.8% compared with the S&P 500 Composite's 10.5% growth. AngioDynamics' earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 70.9%. 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 AngioDynamics, Inc. (ANGO) : Free Stock Analysis Report CVS Health Corporation (CVS) : Free Stock Analysis Report Veeva Systems Inc. (VEEV) : Free Stock Analysis Report Integer Holdings Corporation (ITGR) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
06-03-2025
- Business
- Yahoo
Veeva Systems Inc (VEEV) Q4 2025 Earnings Call Highlights: Strong Revenue Growth and Strategic ...
Total Revenue (Q4): $721 million Non-GAAP Operating Income (Q4): $308 million Total Revenue (FY 2025): $2.75 billion Non-GAAP Operating Income (FY 2025): $1.15 billion Release Date: March 05, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Veeva Systems Inc (NYSE:VEEV) reported strong financial results with total revenue of $721 million for the fourth quarter and $2.75 billion for the fiscal year, both exceeding guidance. The company has set a 2030 revenue goal of $6 billion, reflecting significant growth opportunities and planned expansion into new markets. Veeva Systems Inc (NYSE:VEEV) has seen increased strategic engagement with top 20 pharma companies, with one major customer committing to the full Clinical platform. The company is making significant progress in its AI strategy, with new AI-driven products like CRM Voice Control and CRM Bot expected to enhance customer engagement. Veeva Systems Inc (NYSE:VEEV) is experiencing strong momentum in its Data Cloud offerings, particularly with the Compass Patient product, and is planning to expand its reach to smaller market companies. There is uncertainty regarding the impact of potential changes in research funding and regulatory environments, which could affect customer decision-making and Veeva's business. The company faces competitive pressures in the EDC space from established players like Metadata and Oracle, although Veeva is gaining traction. Veeva Systems Inc (NYSE:VEEV) acknowledges that the adoption of its Data Cloud solutions is still in the early stages, with enterprise license agreements (ELAs) yet to become a trend. The company is cautious about potential macroeconomic disruptions, such as tariffs and supply chain issues, which could delay customer contracts. Veeva Systems Inc (NYSE:VEEV) is still working on achieving Incentive Compensation-grade data for its Compass Prescriber product, which is crucial for displacing competitors. Warning! GuruFocus has detected 1 Warning Sign with VEEV. Q: Is the trend of large pharma companies consolidating around strategic vendors influencing Veeva's opportunities, and how does Veeva view large strategic transactions? A: Peter Gassner, CEO, explained that for a particular top 20 customer, the decision to go all-in with Veeva was driven by the need for speed and efficiency, rather than risk avoidance. He noted that while Veeva is becoming more strategic with customers, each top 20 pharma will take a different path based on their technology journey and pipeline needs. Q: How is Veeva addressing potential changes in research funding and their impact on the company? A: Paul Shawah, EVP of Strategy, stated that while Veeva is monitoring changes in research funding, there has been no impact on customer decision-making so far. He emphasized that life sciences is resilient to economic cycles, and Veeva's revenue, being based on core systems and annual subscriptions, tends to be predictable. Q: What is the significance of Veeva's success with CTMS and eTMF, and what other products could benefit from this success? A: Peter Gassner highlighted that the industry is standardizing on Veeva's CTMS and eTMF due to their innovative integration. This success could lead to broader adoption of Veeva's clinical suite, including Study Training, Site Connect, and payments modules, as well as clinical data management products like EDC, CDB, RTSM, and eCOA. Q: How is Veeva's AI strategy evolving, and what has driven the development of new AI products? A: Peter Gassner explained that Veeva's AI strategy focuses on specific use cases within workflows, rather than core infrastructure. The company is developing AI solutions like CRM Voice Control, CRM Bot, and MLR Bot, with a centralized team to enhance AI competency. Gassner believes the timing is right as the technology base has stabilized. Q: What are the key factors contributing to Veeva's strong margin guidance, despite ongoing investments? A: Brian Van Wagener, CFO, stated that Veeva is optimizing for speed and execution rather than margin. The company is focusing on efficiency and economies of scale, with lean teams driving agility and better execution. Investments continue in product excellence and innovation, particularly in R&D. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
