Latest news with #PeterGassner
Yahoo
29-05-2025
- Business
- Yahoo
VEEV Q1 Earnings Call: Revenue Miss Offset by Subscription Strength and AI Initiatives
Healthcare software provider Veeva Systems (NASDAQ:VEEV) missed Wall Street's revenue expectations in Q1 CY2025, but sales rose 16.7% year on year to $759 million. Its non-GAAP EPS of $1.97 per share was 13% above analysts' consensus estimates. Is now the time to buy VEEV? Find out in our full research report (it's free). Revenue: $759 million (16.7% year-on-year growth) Adjusted EPS: $1.97 vs analyst estimates of $1.74 (13% beat) Adjusted Operating Income: $349.9 million vs analyst estimates of $308 million (46.1% margin, 13.6% beat) Revenue Guidance for Q2 CY2025 is $767.5 million at the midpoint, above analyst estimates of $751.5 million Adjusted EPS guidance for the full year is $7.63 at the midpoint, beating analyst estimates by 4.5% Operating Margin: 30.8%, up from 23.9% in the same quarter last year Market Capitalization: $38.21 billion Veeva Systems' first quarter results reflected solid demand for its core life sciences software, with management attributing momentum to ongoing Vault CRM adoption and strong Crossix analytics growth. CEO Peter Gassner highlighted over 80 customers are now live on Vault CRM, up from a handful a year ago, describing it as 'better than Veeva CRM' due to expanded functionality and AI integration. The Crossix business benefited from customers' increasing focus on maximizing digital marketing effectiveness, with Gassner noting its rapid ROI. Management also pointed to broad-based performance across commercial and R&D segments, supported by stable renewals and expanding customer relationships. Looking ahead, Veeva's leadership expects continued growth as the company invests in AI-driven product enhancements and expands into new market segments, including a forthcoming horizontal CRM offering outside of life sciences. Gassner emphasized the company's commitment to deeply embedding AI within its core applications, predicting, 'Veeva can help increase life sciences efficiency by 15% or so with deep AI.' Management also highlighted plans to have 200 customers live on Vault CRM within a year and expressed optimism about the initial customer interest in its new AI agents and data cloud products. However, executives acknowledged persistent macroeconomic uncertainty and noted that while the current pipeline remains stable, caution is warranted for smaller biotech clients that may face funding challenges if broader conditions deteriorate. Management attributed the quarter's performance to expanded Vault CRM adoption, strong Crossix analytics growth, and early traction with AI-driven product development. Vault CRM adoption accelerates: The number of customers live on Vault CRM grew to over 80, driven both by migrations from legacy Veeva CRM and new client wins. Management cited innovation, integration of sales and marketing functions, and the roadmap for embedded AI agents as key differentiators driving customer decisions. Crossix analytics powers commercial gains: Crossix, Veeva's analytics tool for measuring digital marketing performance, saw robust demand as clients sought to optimize digital spend. The value of comprehensive Crossix deals has doubled over three years, according to Gassner, due to expanded offerings and rapid implementation timelines. AI initiatives gain momentum: Veeva AI, a suite of embedded artificial intelligence tools, is being developed to automate core industry processes such as medical, legal, and safety workflows. Management described customer feedback as highly positive and expects to introduce AI agents into products by year-end. Horizontal CRM market entry: The company is preparing to launch a CRM product targeted beyond the life sciences sector, marking a significant strategic expansion. The initial focus will be on large enterprises, with a distinct team and operating model, and management aims to secure first customers by the end of the year. Stable performance amid macro uncertainty: While acknowledging increased economic and geopolitical uncertainty, management reported no material impact on current results or pipeline. The subscription-based revenue model and mission-critical nature of Veeva's solutions provide insulation, though small biotech clients could be more exposed to funding headwinds. Veeva's guidance for the next quarter and full year is driven by continued Vault CRM migration, growing AI adoption, and an expanding product portfolio, though management remains cautious given macroeconomic uncertainty. Vault CRM and AI adoption: Management expects ongoing Vault CRM migrations and the rollout of AI agents to drive customer wins and expand existing relationships. The ability to integrate sales, marketing, and service data is viewed as a long-term differentiator. Growth in Crossix and data cloud: Crossix remains a key growth engine, with management projecting sustained double-digit expansion as clients prioritize digital marketing measurement. Early success in the data cloud business is expected to supplement this momentum. Macro and funding risks: Leadership warned that persistent uncertainty, particularly for smaller biotech customers, could delay projects or impact funding. However, Veeva's high proportion of long-term subscription contracts and focus on mission-critical applications is expected to provide resilience in most scenarios. In the coming quarters, StockStory analysts will monitor (1) the pace of Vault CRM migrations and new customer additions, (2) tangible revenue contributions and customer adoption of Veeva AI and related agents, and (3) the initial impact of the horizontal CRM launch beyond life sciences. The progress of Crossix and data cloud businesses will also be closely watched as indicators of broader market momentum. Veeva Systems currently trades at a forward price-to-sales ratio of 12.5×. In the wake of earnings, is it a buy or sell? Find out in our full research report (it's free). Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today. 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Yahoo
06-05-2025
- Business
- Yahoo
Life Sciences Leaders Advance Unified Engagement at Veeva Commercial Summit
AstraZeneca, Bayer, Boehringer Ingelheim, Eli Lilly and Company, and more share strategies for more connected customer experiences across sales, marketing, and medical PLEASANTON, Calif., May 6, 2025 /PRNewswire/ -- Veeva Systems (NYSE: VEEV) today announced its keynote speakers for the 2025 Veeva Commercial Summit, May 13-14 in Boston. Leading and emerging biopharmas will share innovations and strategies to drive more coordinated customer engagement through effective use of AI and alignment across data, content, and teams. Veeva Systems (PRNewsfoto/Veeva Systems) Veeva CEO Peter Gassner will headline the opening keynote, sharing Veeva's major initiative to add AI to the Vault Platform and Veeva applications, including ongoing innovations across Veeva Commercial Cloud and Veeva Data Cloud. Keynote presenters will include experiences from: AstraZeneca standardizing analytics across its brands to boost marketing reach and performance. Bayer driving customer-centric, coordinated engagement with Vault CRM. Boehringer Ingelheim connecting scientific insights across medical to drive effective, personalized key opinion leader conversations. Lilly integrating its content ecosystem by streamlining workflows, standardizing taxonomy, and aligning global teams to deliver high-impact experiences at scale. Johnson & Johnson and Madrigal each building a modern data foundation with connected insights for greater efficiency and field impact. ANI Pharmaceuticals, Gamida Cell, NewAmsterdam Pharma, Orchard Therapeutics, Sobi, and others will also share go-to-market best practices for emerging biotechs at launch and beyond. "By connecting sales, marketing, and medical, field teams can seamlessly work together to drive more effective, customer-centric experiences," said Matt Farrell, president of Veeva Commercial Cloud. "We're excited to bring the industry together to share ideas and advancements in AI and data and help lead this next phase of unified engagement." Veeva Commercial Summit is one of the largest industry events in North America for commercial and medical affairs leaders. Life sciences industry professionals can register and see the full agenda at About Veeva Systems Veeva is the global leader in cloud software for the life sciences industry. Committed to innovation, product excellence, and customer success, Veeva serves more than 1,000 customers, ranging from the world's largest biopharmaceutical companies to emerging biotechs. As a Public Benefit Corporation, Veeva is committed to balancing the interests of all stakeholders, including customers, employees, shareholders, and the industries it serves. For more information, visit
Yahoo
16-04-2025
- Business
- Yahoo
Q4 Earnings Outperformers: Veeva Systems (NYSE:VEEV) And The Rest Of The Vertical Software Stocks
Quarterly earnings results are a good time to check in on a company's progress, especially compared to its peers in the same sector. Today we are looking at Veeva Systems (NYSE:VEEV) and the best and worst performers in the vertical software industry. Software is eating the world, and while a large number of solutions such as project management or video conferencing software can be useful to a wide array of industries, some have very specific needs. As a result, vertical software, which addresses industry-specific workflows, is growing and fueled by the pressures to improve productivity, whether it be for a life sciences, education, or banking company. The 14 vertical software stocks we track reported a satisfactory Q4. As a group, revenues beat analysts' consensus estimates by 3.3% while next quarter's revenue guidance was in line. Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 18.1% since the latest earnings results. Built on top of Salesforce as one of the first vertical-focused cloud platforms, Veeva (NYSE:VEEV) provides data and customer relationship management (CRM) software for organizations in the life sciences industry. Veeva Systems reported revenues of $720.9 million, up 14.3% year on year. This print exceeded analysts' expectations by 3.1%. Overall, it was a strong quarter for the company with a solid beat of analysts' billings estimates and an impressive beat of analysts' EBITDA estimates. "It was an outstanding quarter and year of execution and innovation in software, data, and business consulting," said CEO Peter Gassner. The market was likely pricing in the results, and the stock is flat since reporting. It currently trades at $220. Is now the time to buy Veeva Systems? Access our full analysis of the earnings results here, it's free. Founded by the former head of Google's enterprise business, Upstart (NASDAQ:UPST) is an AI-powered lending platform facilitating loans for banks and consumers. Upstart reported revenues of $219 million, up 56.1% year on year, outperforming analysts' expectations by 20.1%. The business had an exceptional quarter with EBITDA guidance for next quarter exceeding analysts' expectations. Upstart scored the biggest analyst estimates beat, fastest revenue growth, and highest full-year guidance raise among its peers. The stock is down 40.8% since reporting. It currently trades at $39.84. Is now the time to buy Upstart? Access our full analysis of the earnings results here, it's free. Used to design the Airbus A380 and Boeing 787 Dreamliner commercial airplanes, PTC's (NASDAQ:PTC) software-as-service platform helps engineers and designers create and test products before manufacturing. PTC reported revenues of $565.1 million, up 2.7% year on year, exceeding analysts' expectations by 1.9%. Still, it was a softer quarter as it posted full-year EPS guidance missing analysts' expectations. As expected, the stock is down 23.1% since the results and currently trades at $145.68. Read our full analysis of PTC's results here. Started as a game studio by three friends in a Copenhagen apartment, Unity (NYSE:U) is a software as a service platform that makes it easier to develop and monetize new games and other visual digital experiences. Unity reported revenues of $457.1 million, down 25% year on year. This number beat analysts' expectations by 5.9%. Taking a step back, it was a satisfactory quarter as it also logged an impressive beat of analysts' billings estimates but revenue guidance for next quarter missing analysts' expectations. Unity had the slowest revenue growth among its peers. The stock is down 13.9% since reporting and currently trades at $18.52. Read our full, actionable report on Unity here, it's free. Founded in 2010 and named for a combination of 'docs' and 'proximity', Doximity (NYSE: DOCS) is the leading social network for U.S. medical professionals. Doximity reported revenues of $168.6 million, up 24.6% year on year. This print topped analysts' expectations by 9.6%. It was a very strong quarter as it also recorded EBITDA guidance for next quarter exceeding analysts' expectations. The stock is down 9.7% since reporting and currently trades at $52.77. Read our full, actionable report on Doximity here, it's free. The Fed's interest rate hikes throughout 2022 and 2023 have successfully cooled post-pandemic inflation, bringing it closer to the 2% target. Inflationary pressures have eased without tipping the economy into a recession, suggesting a soft landing. This stability, paired with recent rate cuts (0.5% in September 2024 and 0.25% in November 2024), fueled a strong year for the stock market in 2024. The markets surged further after Donald Trump's presidential victory in November, with major indices reaching record highs in the days following the election. Still, questions remain about the direction of economic policy, as potential tariffs and corporate tax changes add uncertainty for 2025. Want to invest in winners with rock-solid fundamentals? Check out our Top 6 Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate. Join Paid Stock Investor Research Help us make StockStory more helpful to investors like yourself. Join our paid user research session and receive a $50 Amazon gift card for your opinions. Sign up here. Sign in to access your portfolio
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.
Yahoo
05-03-2025
- Business
- Yahoo
Veeva Announces Fourth Quarter and Fiscal Year 2025 Results
Fiscal Year 2025 Total Revenues of $2,746.6M, up 16% Year Over YearQ4 Total Revenues of $720.9M, up 14% Year Over Year Fiscal Year 2025 Subscription Services Revenues of $2,284.7M, up 20% Year Over YearQ4 Subscription Services Revenues of $608.6M, up 17% Year Over Year PLEASANTON, Calif., March 5, 2025 /PRNewswire/ -- Veeva Systems Inc. (NYSE: VEEV), a leading provider of industry cloud solutions for the global life sciences industry, today announced results for its fourth quarter and fiscal year ended January 31, 2025. "It was an outstanding quarter and year of execution and innovation in software, data, and business consulting," said CEO Peter Gassner. "These advances set us up for the significant opportunity ahead to help life sciences bring better treatments to more patients, with greater speed and efficiency. I am excited to see what we can accomplish with our customers and the Veeva team in the coming years." Fiscal 2025 Fourth Quarter Results: Revenues(1): Total revenues for the fourth quarter were $720.9 million, up from $630.6 million one year ago, an increase of 14% year over year. Subscription services revenues for the fourth quarter were $608.6 million, up from $521.5 million one year ago, an increase of 17% year over year. Operating Income and Non-GAAP Operating Income(1)(2): Fourth quarter operating income was $188.4 million, compared to $135.3 million one year ago, an increase of 39% year over year. Non-GAAP operating income for the fourth quarter was $307.7 million, compared to $239.1 million one year ago, an increase of 29% year over year. Net Income and Non-GAAP Net Income(1)(2): Fourth quarter net income was $195.6 million, compared to $147.4 million one year ago, an increase of 33% year over year. Non-GAAP net income for the fourth quarter was $287.9 million, compared to $226.3 million one year ago, an increase of 27% year over year. Net Income per Share and Non-GAAP Net Income per Share(1)(2): For the fourth quarter, fully diluted net income per share was $1.18, compared to $0.90 one year ago, while non-GAAP fully diluted net income per share was $1.74, compared to $1.38 one year ago. Fiscal Year 2025 Results: Revenues(1): Total revenues for the fiscal year ended January 31, 2025 were $2,746.6 million, up from $2,363.7 million one year ago, an increase of 16% year over year. Subscription services revenues were $2,284.7 million, up from $1,901.6 million one year ago, an increase of 20% year over year. Operating Income and Non-GAAP Operating Income(1)(2): Fiscal year 2025 operating income was $691.4 million, compared to $429.3 million one year ago, an increase of 61% year over year. Non-GAAP operating income for fiscal year 2025 was $1,152.3 million, compared to $842.5 million one year ago, an increase of 37% year over year. Net Income and Non-GAAP Net Income(1)(2): Fiscal year 2025 net income was $714.1 million, compared to $525.7 million one year ago, an increase of 36% year over year. Non-GAAP net income for fiscal year 2025 was $1,090.4 million, compared to $791.0 million one year ago, an increase of 38% year over year. Net Income per Share and Non-GAAP Net Income per Share(1)(2): For fiscal year 2025, fully diluted net income per share was $4.32, compared to $3.22 one year ago, while non-GAAP fully diluted net income per share was $6.60, compared to $4.84 one year ago. "We closed the year with results ahead of guidance for all metrics," said CFO Brian Van Wagener. "Our execution continues to be strong and we see momentum across our product areas, positioning us well to consistently deliver on our goals." Recent Highlights: Strong Finish to an Important Year Building the Industry Cloud for Life Sciences – Through customer success and product excellence, Veeva deepened its strategic partnerships across all customer segments – from top 20 biopharmas to emerging biotechs. Expanding with both new and existing customers, Veeva finished the year with a total of 1,477 customers, including 1,125 in Veeva R&D Solutions and 730 in Veeva Commercial Solutions.(3)(4) Vault CRM Suite Delivers on Innovation Roadmap – The December release of Vault CRM represents the most advanced CRM for life sciences, which includes the full functionality of Veeva CRM, additional new capabilities, and a strong innovation roadmap ahead with AI coming to Vault CRM this year. The company also expanded the Vault CRM Suite in the quarter with the release of Campaign Manager, following the August availability of Service Center. More than 50 customers are now live on Vault CRM, and eight customers have migrated from Veeva CRM to Vault CRM with more underway. Veeva Becoming the Standard for Drug Development and Quality – There were a number of notable wins, expansions, and go-lives in Q4 in clinical, regulatory, safety, and quality. Quality Cloud added 41 new customers and more than 20 existing customers expanded their use of Veeva Quality Cloud products. The fourth top 20 biopharma selected Veeva Safety. In February, the second top 20 biopharma went live with Veeva Safety and is now rolling out the full Safety Suite. Expansion across clinical continued in Q4 as well, including a top 20 biopharma taking a full Clinical Platform approach – adding six major clinical applications all at once – representing one of Veeva's largest subscription orders ever. Financial Outlook: Veeva is providing guidance for its fiscal first quarter ending April 30, 2025 as follows: Total revenues between $726 and $729 million. Non-GAAP operating income between $307 and $309 million.(5) Non-GAAP fully diluted net income per share between $1.74 and $1.75.(5) Veeva is providing guidance for its fiscal year ending January 31, 2026 as follows: Total revenues between $3,040 and $3,055 million. Non-GAAP operating income of about $1,300 million.(5) Non-GAAP fully diluted net income per share of approximately $7.32.(5) Conference Call Information Prepared remarks and an investor presentation providing additional information and analysis can be found on Veeva's investor relations website at Veeva will host a Q&A conference call at 2:00 p.m. PT today, March 5, 2025, and a replay of the call will be available on Veeva's investor relations website. What: Veeva Systems Fourth Quarter and Fiscal Year 2025 Results Conference Call When: Wednesday, March 5, 2025 Time: 2:00 p.m. PT (5:00 p.m. ET) Online Registration: Webcast: The customer contracting change that standardized termination for convenience (TFC) rights in our master subscription agreements resulted in a change in the timing of revenue for certain customer contracts and reduced revenues, operating income and non-GAAP operating income, and net income and non-GAAP net income in the fourth quarter and fiscal year ended January 31, 2024. (2) This press release uses non-GAAP financial metrics that are adjusted for the impact of various GAAP items. See the section titled "Non-GAAP Financial Measures" and the tables entitled "Reconciliation of GAAP to Non-GAAP Financial Measures" below for details. (3) The combined customer counts for Commercial Solutions and R&D Solutions exceed the total customer count in each year because some customers subscribe to products in both areas. Commercial Solutions consist of our Veeva Commercial Cloud, Veeva Data Cloud, and Veeva Claims solutions. R&D Solutions consist of our Veeva Development Cloud, Veeva RegulatoryOne, and Veeva QualityOne solutions. (4) Customer count totals are presented net of customer attrition during the period. (5) Veeva is not able, at this time, to provide GAAP targets for operating income and fully diluted net income per share for the first fiscal quarter ending April 30, 2025 or the fiscal year ending January 31, 2026 because of the difficulty of estimating certain items excluded from non-GAAP operating income and non-GAAP fully diluted net income per share that cannot be reasonably predicted, such as charges related to stock-based compensation expense. The effect of these excluded items may be significant. About Veeva SystemsVeeva is the global leader in cloud software for the life sciences industry. Committed to innovation, product excellence, and customer success, Veeva serves more than 1,000 customers, ranging from the world's largest pharmaceutical companies to emerging biotechs. As a Public Benefit Corporation, Veeva is committed to balancing the interests of all stakeholders, including customers, employees, shareholders and the industries it serves. For more information, visit Veeva uses its website as a means of disclosing material non-public information, announcing upcoming investor conferences, and for complying with its disclosure obligations under Regulation FD. Accordingly, you should monitor our investor relations website in addition to following our press releases, SEC filings, and public conference calls and webcasts. Forward-looking StatementsThis release contains forward-looking statements regarding Veeva's expected future performance and, in particular, includes quotes from management and guidance, provided as of March 5, 2025, about Veeva's expected future financial results. Estimating guidance accurately for future periods is difficult. It involves assumptions and internal estimates that may prove to be incorrect and is based on plans that may change. Hence, there is a significant risk that actual results could differ materially from the guidance we have provided in this release and we have no obligation to update such guidance. There are also numerous risks that have the potential to negatively impact our financial performance, including issues related to the performance, availability, security, or privacy of our products, competitive factors, customer decisions and priorities, developments that impact the life sciences industry (including regulatory, funding, or policy changes), general macroeconomic and geopolitical events (including inflationary pressures, changes in interest rates, changes in trade policy or practices, currency exchange fluctuations, and geopolitical conflicts), and issues that impact our ability to hire, retain and adequately compensate talented employees. We have summarized what we believe are the principal risks to our business in a section titled "Summary of Risk Factors" on pages 36 and 37 in our filing on Form 10-Q for the period ended October 31, 2024 which you can find here. Additional details on the risks and uncertainties that may impact our business can be found in the same filing on Form 10-Q and in our subsequent SEC filings, which you can access at We recommend that you familiarize yourself with these risks and uncertainties before making an investment decision. Investor Relations Contact:Media Contact: Gunnar HansenMaria Scurry Veeva Systems Systems Inc. 267-460-5839781-366-7617 ir@ VEEVA SYSTEMS BALANCE SHEETS(In thousands)(Unaudited) January 31,2025January 31,2024 AssetsCurrent assets:Cash and cash equivalents $ 1,118,785$ 703,487 Short-term investments 4,031,4423,324,269 Accounts receivable, net 1,016,356852,172 Unbilled accounts receivable 40,76136,365 Prepaid expenses and other current assets 101,45886,918 Total current assets 6,308,8025,003,211 Property and equipment, net 55,91258,532 Deferred costs, net 26,38323,916 Lease right-of-use assets 63,86345,602 Goodwill 439,877439,877 Intangible assets, net 44,46063,017 Deferred income taxes 343,919233,463 Other long-term assets 56,54043,302 Total assets $ 7,339,756$ 5,910,920 Liabilities and stockholders' equityCurrent liabilities:Accounts payable $ 30,447$ 31,513 Accrued compensation and benefits 39,42943,433 Accrued expenses and other current liabilities 35,55732,980 Income tax payable 9,02411,862 Deferred revenue 1,273,9781,049,761 Lease liabilities 9,9699,334 Total current liabilities 1,398,4041,178,883 Deferred income taxes 5872,052 Long-term lease liabilities 65,80646,441 Other long-term liabilities 42,58638,720 Total liabilities 1,507,3831,266,096 Stockholders' equity:Common stock 22 Additional paid-in capital 2,386,1921,915,002 Accumulated other comprehensive loss (8,416)(10,637) Retained earnings 3,454,5952,740,457 Total stockholders' equity 5,832,3734,644,824 Total liabilities and stockholders' equity $ 7,339,756$ 5,910,920 VEEVA SYSTEMS STATEMENTS OF COMPREHENSIVE INCOME(In thousands, except per share data)(Unaudited) Three months ended January 31,Fiscal year ended January 31,2025202420252024 Revenues:Subscription services(6) $ 608,577$ 521,498$ 2,284,659$ 1,901,593 Professional services and other(7) 112,309109,120461,960462,080 Total revenues 720,886630,6182,746,6192,363,673 Cost of revenues(8):Cost of subscription services 83,49377,398323,070290,577 Cost of professional services and other 97,49896,530376,566386,714 Total cost of revenues 180,991173,928699,636677,291 Gross profit 539,895456,6902,046,9831,686,382 Operating expenses(8):Research and development 181,527163,565693,078629,031 Sales and marketing 99,20299,203396,726381,472 General and administrative 70,74358,658265,744246,545 Total operating expenses 351,472321,4261,355,5481,257,048 Operating income 188,423135,264691,435429,334 Other income, net 56,70747,429227,946158,689 Income before income taxes 245,130182,693919,381588,023 Income tax provision 49,50535,295205,24362,318 Net income $ 195,625$ 147,398$ 714,138$ 525,705 Net income per share:Basic $ 1.20$ 0.92$ 4.41$ 3.27 Diluted $ 1.18$ 0.90$ 4.32$ 3.22 Weighted-average shares used to compute net income per share:Basic 162,391161,088161,879160,532 Diluted 165,674164,071165,232163,486 Other comprehensive income:Net change in unrealized gain (loss) on available-for-sale investments $ (1,482)$ 28,135$ 4,094$ 22,038 Net change in cumulative foreign currency translation loss (475)(1,234)(1,873)(1,546) Comprehensive income $ 193,668$ 174,299$ 716,359$ 546,197 (6) Includes subscription services revenues from the following product areas:Veeva Commercial Solutions $ 293,385$ 261,882$ 1,104,888$ 995,803 Veeva R&D Solutions 315,192259,6161,179,771905,790 Total subscription services $ 608,577$ 521,498$ 2,284,659$ 1,901,593 (7) Includes professional services and other revenues from the following product areas:Veeva Commercial Solutions $ 45,607$ 45,899$ 185,302$ 185,981 Veeva R&D Solutions 66,70263,221276,658276,099 Total professional services and other $ 112,309$ 109,120$ 461,960$ 462,080 (8) Includes stock-based compensation as follows:Cost of revenues:Cost of subscription services $ 1,699$ 1,626$ 6,591$ 6,483 Cost of professional services and other 12,73713,35651,37753,237 Research and development 47,16042,967185,901172,876 Sales and marketing 22,25023,78190,17890,865 General and administrative 31,35817,163103,30370,272 Total stock-based compensation $ 115,204$ 98,893$ 437,350$ 393,733 VEEVA SYSTEMS STATEMENTS OF CASH FLOWS(In thousands)(Unaudited) Fiscal year ended January 31,20252024 Cash flows from operating activitiesNet income $ 714,138$ 525,705 Adjustments to reconcile net income to net cash provided by operating activities:Depreciation and amortization 39,38332,628 Reduction of operating lease right-of-use assets 11,54711,691 Accretion of discount on short-term investments (24,443)(26,515) Stock-based compensation 437,350393,733 Amortization of deferred costs 15,52818,177 Deferred income taxes (112,273)(105,374) Other, net 1,201471 Changes in operating assets and liabilities:Accounts receivable (164,572)(149,810) Unbilled accounts receivable (4,396)45,809 Deferred costs (17,995)(10,268) Prepaid expenses and other current and long-term assets (17,453)414 Accounts payable (1,961)(10,230) Accrued expenses and other current liabilities (1,414)(4,249) Income tax payable (2,838)6,916 Deferred revenue 227,838188,164 Lease liabilities (9,835)(6,879) Other long-term liabilities 246956 Net cash provided by operating activities 1,090,051911,339 Cash flows from investing activitiesPurchases of short-term investments (2,581,968)(2,697,968) Maturities and sales of short-term investments 1,902,3491,647,813 Long-term assets (20,519)(26,196) Net cash used in investing activities (700,138)(1,076,351) Cash flows from financing activitiesProceeds from exercise of common stock options 105,53862,687 Taxes paid related to net share settlement of equity awards (79,423)(78,875) Net cash provided by (used in) financing activities 26,115(16,188) Effect of exchange rate changes on cash, cash equivalents, and restricted cash (1,735)(1,780) Net change in cash, cash equivalents, and restricted cash 414,293(182,980) Cash, cash equivalents, and restricted cash at beginning of period 706,670889,650 Cash, cash equivalents, and restricted cash at end of period $ 1,120,963$ 706,670 Supplemental disclosures of other cash flow information:Excess tax benefits from employee stock plans $ 8,932$ 71,049 Non-GAAP Financial Measures In Veeva's public disclosures, Veeva has provided non-GAAP measures, which it defines as financial information that has not been prepared in accordance with generally accepted accounting principles in the United States, or GAAP. In addition to its GAAP measures, Veeva uses these non-GAAP financial measures internally for budgeting and resource allocation purposes and in analyzing its financial results. For the reasons set forth below, Veeva believes that excluding the following items provides information that is helpful in understanding its operating results, evaluating its future prospects, comparing its financial results across accounting periods, and comparing its financial results to its peers, many of which provide similar non-GAAP financial measures. Excess tax benefits. Excess tax benefits from employee stock plans are dependent on previously agreed-upon equity grants to our employees, vesting of those grants, stock price, and exercise behavior of our employees, which can fluctuate from quarter to quarter. Because these fluctuations are not directly related to our business operations, Veeva excludes excess tax benefits for its internal management reporting processes. Veeva management also finds it useful to exclude excess tax benefits when assessing the level of cash provided by operating activities. Given the nature of the excess tax benefits, Veeva believes excluding it allows investors to make meaningful comparisons between our operating cash flows from quarter to quarter and those of other companies. Stock-based compensation expenses. Veeva excludes stock-based compensation expenses primarily because they are non-cash expenses that Veeva excludes from its internal management reporting processes. Veeva's management also finds it useful to exclude these expenses when they assess the appropriate level of various operating expenses and resource allocations when budgeting, planning and forecasting future periods. Moreover, because of varying available valuation methodologies, subjective assumptions and the variety of award types that companies can use, Veeva believes excluding stock-based compensation expenses allows investors to make meaningful comparisons between our recurring core business operating results and those of other companies. Amortization of purchased intangibles. Veeva incurs amortization expense for purchased intangible assets in connection with acquisitions of certain businesses and technologies. Amortization of intangible assets is a non-cash expense and is inconsistent in amount and frequency because it is significantly affected by the timing, size of acquisitions and the inherent subjective nature of purchase price allocations. Because these costs have already been incurred and cannot be recovered, and are non-cash expenses, Veeva excludes these expenses for its internal management reporting processes. Veeva's management also finds it useful to exclude these charges when assessing the appropriate level of various operating expenses and resource allocations when budgeting, planning and forecasting future periods. Investors should note that the use of intangible assets contributed to Veeva's revenues earned during the periods presented and will contribute to Veeva's future period revenues as well. Litigation settlement. We exclude costs related to the settlement of certain litigation matters because they are non-recurring and outside the ordinary course of business. Because these costs are unrelated to our day-to-day business operations, we believe excluding them enables more consistent evaluation of our operating results. Income tax effects on the difference between GAAP and non-GAAP costs and expenses. The income tax effects that are excluded relate to the imputed tax impact on the difference between GAAP and non-GAAP costs and expenses due to stock-based compensation and purchased intangibles for GAAP and non-GAAP measures. There are limitations to using non-GAAP financial measures because non-GAAP financial measures are not prepared in accordance with GAAP and may be different from non-GAAP financial measures provided by other companies. The non-GAAP financial measures are limited in value because they exclude certain items that may have a material impact upon our reported financial results. In addition, they are subject to inherent limitations as they reflect the exercise of judgments by Veeva's management about which items are adjusted to calculate its non-GAAP financial measures. Veeva compensates for these limitations by analyzing current and future results on a GAAP basis as well as a non-GAAP basis and also by providing GAAP measures in its public disclosures. Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Veeva encourages its investors and others to review its financial information in its entirety, not to rely on any single financial measure to evaluate its business, and to view its non-GAAP financial measures in conjunction with the most directly comparable GAAP financial measures. A reconciliation of GAAP to the non-GAAP financial measures has been provided in the tables below. VEEVA SYSTEMS OF GAAP TO NON-GAAP FINANCIAL MEASURES(Dollars in thousands)(Unaudited)The following tables reconcile the specific items excluded from GAAP metrics in the calculation of non-GAAP metrics for the periods shown below: Reconciliation of Net Cash Provided by Operating Activities (GAAP basis to non-GAAP basis) Three months ended January 31,Fiscal year ended January 31,2025202420252024 Net cash provided by operating activities on a GAAP basis $ 69,544$ 57,769$ 1,090,051$ 911,339 Excess tax benefits from employee stock plans (3,772)(2,474)(8,932)(71,049) Net cash provided by operating activities on a non-GAAP basis $ 65,772$ 55,295$ 1,081,119$ 840,290 Net cash used in investing activities on a GAAP basis $ (15,692)$ (86,703)$ (700,138)$ (1,076,351) Net cash provided by (used in) financing activities on a GAAP basis $ 20,811$ (10,484)$ 26,115$ (16,188) Reconciliation of Financial Measures (GAAP basis to non-GAAP basis) Three months ended January 31,Fiscal year ended January 31,2025202420252024 Cost of subscription services revenues on a GAAP basis $ 83,493$ 77,398$ 323,070$ 290,577 Stock-based compensation expense (1,699)(1,626)(6,591)(6,483) Amortization of purchased intangibles (1,045)(1,125)(4,310)(4,468) Cost of subscription services revenues on a non-GAAP basis $ 80,749$ 74,647$ 312,169$ 279,626 Gross margin on subscription services revenues on a GAAP basis 86.3 %85.2 %85.9 %84.7 % Stock-based compensation expense 0.30.30.30.4 Amortization of purchased intangibles 0.10.20.10.2 Gross margin on subscription services revenues on a non-GAAP basis 86.7 %85.7 %86.3 %85.3 % Cost of professional services and other revenues on a GAAP basis $ 97,498$ 96,530$ 376,566$ 386,714 Stock-based compensation expense (12,737)(13,356)(51,377)(53,237) Amortization of purchased intangibles (138)(139)(550)(550) Cost of professional services and other revenues on a non-GAAP basis $ 84,623$ 83,035$ 324,639$ 332,927 Gross margin on professional services and other revenues on a GAAP basis 13.2 %11.5 %18.5 %16.3 % Stock-based compensation expense 11.312.311.111.6 Amortization of purchased intangibles 0.20.10.10.1 Gross margin on professional services and other revenues on a non-GAAP basis 24.7 %23.9 %29.7 %28.0 % Gross profit on a GAAP basis $ 539,895$ 456,690$ 2,046,983$ 1,686,382 Stock-based compensation expense 14,43614,98257,96859,720 Amortization of purchased intangibles 1,1831,2644,8605,018 Gross profit on a non-GAAP basis $ 555,514$ 472,936$ 2,109,811$ 1,751,120 Gross margin on total revenues on a GAAP basis 74.9 %72.4 %74.5 %71.3 % Stock-based compensation expense 2.02.42.12.6 Amortization of purchased intangibles 0.20.20.20.2 Gross margin on total revenues on a non-GAAP basis 77.1 %75.0 %76.8 %74.1 % Research and development expense on a GAAP basis $ 181,527$ 163,565$ 693,078$ 629,031 Stock-based compensation expense (47,160)(42,967)(185,901)(172,876) Amortization of purchased intangibles —(29)(85)(114) Research and development expense on a non-GAAP basis $ 134,367$ 120,569$ 507,092$ 456,041Three months ended January 31,Fiscal year ended January 31,2025202420252024 Sales and marketing expense on a GAAP basis $ 99,202$ 99,203$ 396,726$ 381,472 Stock-based compensation expense (22,250)(23,781)(90,178)(90,865) Amortization of purchased intangibles (2,885)(3,552)(13,443)(14,102) Sales and marketing expense on a non-GAAP basis $ 74,067$ 71,870$ 293,105$ 276,505 General and administrative expense on a GAAP basis $ 70,743$ 58,658$ 265,744$ 246,545 Stock-based compensation expense (31,358)(17,163)(103,303)(70,272) Amortization of purchased intangibles —(56)(170)(225) Litigation settlement ——(5,000)— General and administrative expense on a non-GAAP basis $ 39,385$ 41,439$ 157,271$ 176,048 Operating expense on a GAAP basis $ 351,472$ 321,426$ 1,355,548$ 1,257,048 Stock-based compensation expense (100,768)(83,911)(379,382)(334,013) Amortization of purchased intangibles (2,885)(3,637)(13,698)(14,441) Litigation settlement ——(5,000)— Operating expense on a non-GAAP basis $ 247,819$ 233,878$ 957,468$ 908,594 Operating income on a GAAP basis $ 188,423$ 135,264$ 691,435$ 429,334 Stock-based compensation expense 115,20498,893437,350393,733 Amortization of purchased intangibles 4,0684,90118,55819,459 Litigation settlement ——5,000— Operating income on a non-GAAP basis $ 307,695$ 239,058$ 1,152,343$ 842,526 Operating margin on a GAAP basis 26.1 %21.4 %25.2 %18.2 % Stock-based compensation expense 16.015.715.916.6 Amortization of purchased intangibles 0.60.80.70.8 Litigation settlement ——0.2— Operating margin on a non-GAAP basis 42.7 %37.9 %42.0 %35.6 % Net income on a GAAP basis $ 195,625$ 147,398$ 714,138$ 525,705 Stock-based compensation expense 115,20498,893437,350393,733 Amortization of purchased intangibles 4,0684,90118,55819,459 Litigation settlement ——5,000— Income tax effect on non-GAAP adjustments(9) (27,020)(24,867)(84,618)(147,937) Net income on a non-GAAP basis $ 287,877$ 226,325$ 1,090,428$ 790,960 Diluted net income per share on a GAAP basis $ 1.18$ 0.90$ 4.32$ 3.22 Stock-based compensation expense 0.700.602.652.41 Amortization of purchased intangibles 0.020.030.110.12 Litigation settlement ——0.03— Income tax effect on non-GAAP adjustments(9) (0.16)(0.15)(0.51)(0.91) Diluted net income per share on a non-GAAP basis $ 1.74$ 1.38$ 6.60$ 4.84(9) For the three months and fiscal years ended January 31, 2025 and 2024, management used an estimated annual effective non-GAAP tax rate of 21.0%. 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