Financial Data and Key Metrics Changes - Total revenue for the quarter was $759 million, with a non-GAAP operating margin of 46%, marking a strong start to the year and exceeding guidance [9][10] - The company achieved its calendar 2025 revenue run rate goal of $3 billion [9] Business Line Data and Key Metrics Changes - The Vault CRM is performing well, with over 80 customers live, and the company expects to reach about 200 customers live on Vault CRM within a year [13][14] - Crossix has shown strong growth, with a year-over-year growth rate exceeding 30%, driven by usage-based areas of the business [32][42] Market Data and Key Metrics Changes - The macro environment remains uncertain, but there has been no material change in financial results or pipeline at this time [9][18] - The company is seeing strong demand for its digital marketing capabilities, particularly in the Crossix segment, which is gaining market share [40][42] Company Strategy and Development Direction - The company is focusing on horizontal CRM applications, with plans to have first customers by the end of the year [22][24] - Veeva is committed to integrating AI deeply into its core applications, aiming to enhance efficiency in the life sciences industry by approximately 15% over the next few years [58][60] Management's Comments on Operating Environment and Future Outlook - Management acknowledges increased uncertainty in the macro environment but has not seen a significant impact on business operations or customer pipelines [68][70] - The company remains optimistic about its subscription-based business model, which is less susceptible to short-term market fluctuations [88][90] Other Important Information - The company is excited about the potential of Veeva.ai, which aims to provide significant value to customers by automating various tasks [100][101] - The recent Commercial Summit highlighted positive customer sentiment and the growing maturity of the Vault CRM product [96][98] Q&A Session Summary Question: Customer migration to Vault CRM - Management noted that the number of customers migrating to Vault CRM has increased, with reasons for migration including better product features and AI integration [12][14] Question: Impact of macroeconomic factors on revenue - Management indicated that while there is uncertainty in the macro environment, it has not yet affected financial results or pipeline [17][70] Question: Horizontal CRM strategy - The company is excited about the horizontal CRM market and is focusing on customer success and product excellence [22][24] Question: Drivers of growth in Crossix - Crossix's growth is attributed to an expanded product offering and a strategic approach to customer engagement [40][42] Question: AI integration in life sciences - Management expressed confidence in the potential of AI to enhance operational efficiency and provide significant value to customers [58][60] Question: Customer feedback on new products - Initial feedback from customers regarding new products, including Veeva.ai, has been positive, indicating a strong demand for integrated solutions [90][100]

Financial Data and Key Metrics Changes - Total revenue for Q1 2026 was $759 million, with a non-GAAP operating margin of 46%, exceeding guidance [7] - The company achieved a revenue run rate goal of $3 billion for calendar year 2025 [7] Business Line Data and Key Metrics Changes - Vault CRM is performing well, with over 80 customers live, and the expectation to reach about 200 customers live in the next year [12][13] - Crossix is highlighted as a significant growth driver, with strong performance in marketing and optimization, growing over 30% year-over-year [32][43] Market Data and Key Metrics Changes - The macro environment is described as more uncertain compared to the previous quarter, but no material changes in financial results or pipeline have been observed [7][17] - The company is seeing strong growth in its R&D business, with guidance for the year set at 19% [32] Company Strategy and Development Direction - The company is focusing on horizontal CRM applications, with plans to have first customers by the end of the year [22][25] - The AI initiative, Veeva.ai, is expected to significantly enhance efficiency in the life sciences industry, with a target of increasing efficiency by 15% over the next few years [58][60] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the uncertainty in the macro environment but emphasizes that the business remains insulated due to long-term subscription contracts [68][85] - There is optimism regarding the integration of AI into core applications, which is expected to provide substantial value to customers [60][88] Other Important Information - The company is committed to maintaining a disciplined approach to acquisitions, focusing on synergistic opportunities in horizontal applications [121] - The recent Commercial Summit indicated strong customer sentiment and excitement around new product offerings, particularly in CRM and AI [91][96] Q&A Session Summary Question: Customer migration to Vault CRM - Management noted that the migration to Vault CRM is driven by its superior capabilities compared to Veeva CRM, with a mix of new customers and migrations contributing to growth [12][14] Question: Impact of macroeconomic factors on revenue - Management stated that while there is uncertainty in the macro environment, it has not yet impacted financial results or pipeline, with ongoing projects proceeding as expected [17][70] Question: Horizontal CRM strategy - The company is excited about the potential of horizontal CRM applications, with plans to identify customer segments and product areas [22][25] Question: Drivers of Crossix's growth - Crossix's growth is attributed to its expanded product offerings and the increasing demand for digital marketing effectiveness among clients [32][43] Question: AI integration and customer feedback - Initial customer feedback on Veeva.ai has been positive, with expectations that it will enhance operational efficiency and provide significant value [88][96] Question: CRM conversion pace among top pharma companies - Management indicated that progress with top 20 pharma companies is on track, with no urgency to migrate as customers are satisfied with existing solutions [107][109] Question: Customer focus on ROI and budget priorities - There is a noted increase in focus on digital marketing and analytics among pharma executives, reflecting a systematic approach to commercial strategies [111]

Financial Performance & Growth (FY2025 & FY2026 Guidance) - Total revenue for FY2025 reached $2.747 billion[8], with a year-over-year growth of 16%[8] - Subscription revenue for FY2025 was $2.285 billion[8], representing a 20% increase year-over-year[8] - Services revenue remained flat at $462 million in FY2025[8], showing 0% year-over-year growth[8] - The company projects total revenue for FY2026 to be between $3.09 billion and $3.1 billion[8], indicating an approximate 13% growth[8] - Non-GAAP operating income for FY2025 was $1.152 billion[15], with a margin of 42%[15], and is projected to reach approximately $1.36 billion in FY2026[15], with a margin of ~44%[15] - Normalized billings for FY2025 amounted to $2.951 billion[21], with an anticipated increase to ~$3.32 billion in FY2026[21], reflecting a growth of approximately 12%[21] - Non-GAAP cash from operations for FY2025 was $1.081 billion[25], and is projected to be ~$1.21 billion for FY2026[25] Q1'26 Results & Q2'26 Guidance - Total revenue for Q1'26 reached $759 million[12], demonstrating a 17% year-over-year growth[12] - Subscription revenue for Q1'26 was $634.8 million[38], a 19% increase year-over-year[38] - Services revenue for Q1'26 was $124.3 million[38], up 7% year-over-year[38] - For Q2'26, the company anticipates total revenue between $766 million and $769 million[32], with subscription revenue around $649 million[32] and services revenue between $117 million and $120 million[32] - Non-GAAP operating income for Q1'26 was $349.9 million[38], representing a margin of 46.1%[38]

Core Insights - Veeva Systems Inc. reported total revenues of $759.0 million for the first quarter of fiscal 2026, representing a 17% increase year over year [1][6] - Subscription services revenues reached $634.8 million, up 19% from the previous year [1][6] - The company achieved a revenue run rate goal of $3 billion for 2025, indicating strong growth and innovation [6] Financial Performance - Operating income for the first quarter was $233.7 million, a 51% increase from $155.2 million a year ago [6] - Non-GAAP operating income was $349.9 million, up 34% from $260.9 million year over year [6] - Net income for the quarter was $228.2 million, a 41% increase compared to $161.7 million in the same period last year [6] - Non-GAAP net income was $327.8 million, reflecting a 33% increase from $247.0 million year over year [6] - Fully diluted net income per share was $1.37, compared to $0.98 a year ago, while non-GAAP fully diluted net income per share was $1.97, up from $1.50 [6] Strategic Initiatives - Veeva AI is set to enhance productivity and automation in the life sciences sector, with its first release planned for December 2025 [6] - The company showcased innovations at the Commercial Summit, including AI Agents aimed at improving operational efficiency [6] - Veeva expanded its commercial data offerings with the launch of Veeva CRM Pulse, enhancing its data cloud capabilities [6] Guidance and Outlook - For the fiscal second quarter ending July 31, 2025, Veeva expects total revenues between $766 million and $769 million [6] - The company anticipates non-GAAP operating income between $335 million and $337 million for the same period [6] - For the fiscal year ending January 31, 2026, Veeva projects total revenues between $3,090 million and $3,100 million [6]

Revenue Performance - Total revenues for Q1 FY2026 were $759.0 million, representing a 17% increase year over year from $650.3 million[4] - Subscription services revenues for Q1 FY2026 were $634.8 million, up 19% year over year from $534.0 million[4] - Total revenues for the three months ended April 30, 2025, increased to $759,043, up 16.7% from $650,345 in the same period of 2024[17] - Subscription services revenues rose to $634,768, representing a 18.9% increase from $533,955 year-over-year[17] - Full-year FY2026 revenue guidance is projected between $3,090 million and $3,100 million[8] Income and Profitability - Operating income for Q1 FY2026 was $233.7 million, a 51% increase from $155.2 million in the same quarter last year[4] - Non-GAAP operating income for Q1 FY2026 was $349.9 million, up 34% year over year from $260.9 million[4] - Net income for Q1 FY2026 was $228.2 million, an increase of 41% compared to $161.7 million in Q1 FY2025[4] - Non-GAAP net income for Q1 FY2026 was $327.8 million, reflecting a 33% increase from $247.0 million year over year[4] - Operating income improved to $233,732, up 50.6% from $155,172 in the same quarter of 2024[17] - Net income for the quarter was $228,190, a 41.1% increase compared to $161,664 in the prior year[17] - The diluted net income per share on a GAAP basis rose to $1.37, up from $0.98 in the prior year, marking a 39.8% increase[29] Cash Flow and Financial Position - Cash flows from operating activities reached $877,158, an increase of 14.9% from $763,516 in the previous year[20] - Cash, cash equivalents, and restricted cash at the end of the period totaled $1,967,160, up from $1,200,379 a year earlier[20] Expenses - Research and development expenses increased to $184,033, up 13.1% from $162,711 year-over-year[17] - Stock-based compensation expenses totaled $112,210, an increase from $95,911 in the same period of 2024[17] - Sales and marketing expenses on a GAAP basis were $98.6 million, slightly up from $97.3 million in Q1 2024[29] - General and administrative expenses on a GAAP basis increased to $68.8 million from $61.3 million in the same quarter last year[29] - Stock-based compensation expense for the quarter was $112.2 million, compared to $95.9 million in the prior year[29] Margins - The gross margin on total revenues improved to 77.1%, compared to 73.3% in the same quarter of 2024[26] - The operating margin on a GAAP basis improved to 30.8% from 23.9% year-over-year, while the non-GAAP operating margin increased to 46.1% from 40.1%[29] Strategic Initiatives - Veeva achieved its 2025 revenue run rate goal of $3 billion in the quarter, marking a significant milestone[6] - Veeva AI initiative is set to launch in December 2025, aiming to enhance productivity and automation in the life sciences industry[6] Guidance - Guidance for Q2 FY2026 includes total revenues expected between $766 million and $769 million[8]

Core Viewpoint - Veeva Systems Inc. is positioned for growth due to its strong product portfolio and strategic deals, despite concerns over rising operational costs [1][10]. Company Performance - Veeva Systems has a market capitalization of $37.91 billion and anticipates a 26.2% growth over the next five years, with a trailing four-quarter average earnings surprise of 7.92% [2]. - The company’s shares have increased by 13.2% year-to-date, outperforming the industry growth of 11.6% and the S&P 500 Composite's decline of 1.8% [1]. Product and Innovation - The company is driving migration to its next-gen Vault CRM, with 20 new customers in Q4, particularly from small and mid-sized biotech firms [4]. - Veeva has introduced AI-driven innovations such as CRM Voice Control and MLR Bot to enhance efficiency and compliance [5]. - Its Data Cloud solutions are gaining traction, with Compass supporting over 100 brands and Pulse securing its first seven-figure deal [6]. Strategic Partnerships - Veeva has secured key deals, including Boehringer Ingelheim's commitment to migrate to Veeva Vault CRM and a partnership with Walgreens Boots Alliance to improve patient outcomes [7]. Financial Results - Veeva Systems reported better-than-expected results in Q4 fiscal 2025, with both earnings and revenues exceeding Zacks Consensus Estimates [8]. - The company experienced a strong finish to the year by strengthening partnerships across various customer segments [9]. Cost Concerns - Rising operational costs are a concern, with general and administrative expenses increasing by 20.6% year-over-year in Q4 fiscal 2025 [10]. - Total operating expenses rose by 9.3% year-over-year, with expectations for further increases in fiscal 2025 due to employee compensation-related costs [11]. Estimate Trends - There is a positive estimate revision trend for fiscal 2026, with the Zacks Consensus Estimate for EPS moving to $7.30 and revenues for Q1 fiscal 2026 expected to improve by 11.9% year-over-year [12].

Group 1: Marvell Technology Group Ltd. (MRVL) - Marvell Technology has seen its stock price drop 50% from January peaks ahead of its Q1 FY26 earnings release due to disappointing revenue forecasts and broader semiconductor sector weakness [2][3] - The company's valuation needed a reset after trading as high as 83X forward earnings last year, and it is currently trading at a 30% discount to its 10-year median [3][6] - Marvell's data center revenue surged 78% in Q4, driven by the AI spending boom, and it is projected to grow revenue by 44% this year and 18% next year [4][6] - Despite the recent downturn, Wall Street remains bullish on Marvell, with 25 of 31 brokerage recommendations rated as "Strong Buys" [7] Group 2: Veeva Systems (VEEV) - Veeva Systems, a cloud-based software company for the pharmaceutical and life sciences industries, has averaged 25% revenue growth over the last decade and its stock has surged 760% [9][12] - The company trades 30% below its 2021 peaks, with concerns about slowing growth and valuation impacting its stock price [12][20] - Veeva's revenue grew by 16% in fiscal 2025, driven by a 20% increase in subscription services, and it is projected to grow revenue by 11% this year and 12% next year [16][18] - The company has $5.1 billion in cash and equivalents, with minimal debt, allowing it to pursue growth opportunities and acquisitions [21]

Core Insights - Veeva Systems (VEEV) is expected to report quarterly earnings of $1.74 per share, reflecting a 16% increase year over year, with revenues projected at $727.99 million, an 11.9% increase compared to the previous year [1] Earnings Estimates - The consensus EPS estimate has been revised downward by 0.2% over the past 30 days, indicating a collective reassessment by analysts [2] - Revisions to earnings estimates are crucial indicators for predicting investor actions regarding the stock, with empirical research showing a strong correlation between these revisions and short-term price performance [3] Revenue Projections - Analysts forecast 'Revenues- Subscription services' to reach $615.93 million, indicating a 15.4% increase year over year [5] - 'Revenues- Professional services and other' are expected to be $112.07 million, suggesting a decline of 3.7% year over year [5] - 'Revenues- Professional services and other- Veeva R&D Solutions' is projected at $64.87 million, reflecting a decrease of 4.1% from the prior year [5] - 'Revenues- Subscription services- Veeva R&D Solutions' is expected to reach $328.16 million, indicating a 20.4% increase year over year [6] - 'Revenues- Subscription services- Veeva Commercial Solutions' is projected at $287.80 million, suggesting a 10.1% increase compared to the previous year [6] - 'Revenues- Professional services and other- Veeva Commercial Solutions' is estimated at $46.98 million, indicating a decline of 3.7% from the prior year [7] Gross Margin Estimates - The estimated 'Non-GAAP Gross Margin- Professional Services and other' is 26.6%, down from 28.6% in the same quarter of the previous year [7] - The average prediction for 'Non-GAAP Gross Margin- Subscription services' is 86.0%, slightly up from 85.9% year over year [8] Stock Performance - Over the past month, Veeva shares have returned +3.4%, compared to a +10.7% change in the Zacks S&P 500 composite [9] - VEEV currently holds a Zacks Rank 3 (Hold), suggesting its performance may align with the overall market in the near future [9]

Group 1: Market Overview - The average stock market return over the past few decades is around 10%, making broader equities competitive compared to other asset classes [1] - Investing in companies with market-beating potential is key, particularly those with a history of outperforming the market [1] Group 2: Intuitive Surgical - Intuitive Surgical has achieved a compound annual growth rate (CAGR) of 26.1% over the past 10 years, turning an initial investment of $1,000 into $10,140, compared to $3,320 for the S&P 500 [4] - The company is the leader in the robotic-assisted surgery (RAS) market, primarily driven by its da Vinci system, which is approved for various surgical procedures [5][6] - Intuitive Surgical has a first-mover advantage with an installed base of 10,189 da Vinci systems, reflecting a 15% year-over-year increase [8] - The aging global population is expected to increase surgical procedure volumes, benefiting Intuitive Surgical's growth prospects [10] Group 3: Competitive Landscape for Intuitive Surgical - Competition is increasing with Medtronic and Johnson & Johnson entering the RAS market, but Intuitive Surgical may still deliver market-beating returns [7] - High switching costs for healthcare facilities favor Intuitive Surgical, as they prefer to stick with their initial choice of equipment due to training and repair services [9] Group 4: Veeva Systems - Veeva Systems has achieved a CAGR of 24.2% over the past decade, turning an initial investment of $1,000 into $8,734 [11] - The company focuses on providing cloud-based services specifically for the healthcare industry, which has unique demands and regulatory constraints [12] - Veeva Systems benefits from high switching costs, as clients rely on its services for daily operations and regulatory compliance [14] - The total addressable market (TAM) for Veeva Systems is estimated at $20 billion, of which it has captured about 14%, with continued growth expected in the life sciences sector [15]

Core Insights - Veeva Systems has introduced Veeva Basics, a pre-configured and pre-validated software solution that is currently utilized by over 75 biotech companies to enhance efficiency and reduce costs across clinical, regulatory, and quality functions [1][2] - The adoption of Veeva Basics indicates a transition from fragmented entry-level tools to comprehensive, best-of-breed solutions that can support the growth of biotech companies [1][2] Group 1: Product Features and Benefits - Veeva Basics is designed for fast-growing companies, allowing for quick deployment and adoption regardless of company size, with solutions available for clinical, regulatory, and quality needs [2] - The introduction of Veeva CTMS Basics and Submissions Publishing Basics aims to provide biotechs with tools to manage clinical trials and regulatory submissions effectively [6] - The applications built on the Vault Platform enable customers to scale their technology infrastructure as their business grows [2] Group 2: Market Reception and Testimonials - Biotech leaders have praised Veeva Basics as a game changer, providing smaller companies access to modern applications typically reserved for larger organizations, thus ensuring they remain compliant with evolving regulatory requirements [3] - Users have reported that Veeva eTMF Basics enhances control over data and processes, facilitating inspection readiness and driving innovation in clinical trials [3] - The global support and training associated with Veeva Basics have been highlighted as key factors in maximizing the value derived from the software, resulting in significant time and resource savings [3] Group 3: Company Overview - Veeva Systems is recognized as the global leader in cloud software for the life sciences industry, serving over 1,000 customers, including major biopharmaceutical companies and emerging biotechs [4] - The company is committed to innovation, product excellence, and balancing the interests of all stakeholders, including customers, employees, and shareholders [4]