JHVEPhoto Introduction & Investment Thesis I last wrote about Veeva (NYSE:VEEV) in July, where I upgraded my rating from a "hold" to a "buy" as I believed that the company had started demonstrating early signs of revenue and earnings acceleration with strong momentum in its R&D Solutions segment. Although investor sentiment was dull around the time of my writing, I believed that it was likely related to the management revising their FY25 guidance lower in their Q1 earnings. Meanwhile, I thought the stock wa ...

Veeva Systems, Inc. (VEEV) reported adjusted earnings per share (EPS) of $1.62 for the second quarter of fiscal 2025, which increased 33.1% from the year-ago figure of $1.21. Adjusted EPS surpassed the Zacks Consensus Estimate by 5.88%. GAAP EPS in the fiscal second quarter was $1.04, up 52.9% from the year-ago period's 68 cents. VEEV's Revenue Details For the quarter under review, the company's revenues totaled $676.3 million, outpacing the Zacks Consensus Estimate by 1.34%. On a year-over-year basis, the ...

Core Viewpoint - Veeva Systems reported strong earnings that exceeded analysts' expectations, leading to a significant increase in its stock price, indicating a positive outlook for the company [1][2]. Financial Performance - Veeva's revenue grew by 15% in the quarter, with subscription revenue, which constitutes 83% of total revenue, increasing by 19% [3]. - Adjusted earnings per share (EPS) rose by 33% to $1.62, showcasing effective operating leverage [3]. Future Guidance - The company provided guidance for Q3 revenue between $682 million and $685 million, with adjusted EPS expected between $1.57 and $1.58. This top-line guidance was slightly below analyst estimates, while the bottom-line guidance exceeded expectations [4]. Strategic Wins - CEO Peter Gassner highlighted significant strategic wins in the quarter, particularly in the customer relationship management (CRM) sector, suggesting a strong competitive position [5]. Market Position and Valuation - Veeva's stock trades at approximately 32 times its adjusted earnings estimates for fiscal 2026, which is considered a reasonable valuation for a profitable, recurring-subscription business growing its bottom line at 33% [5]. - The company holds about $5 billion in cash with no debt, representing 16% of its market cap, making the stock appear even more attractive [6].

Veeva Systems (VEEV) reported $676.18 million in revenue for the quarter ended July 2024, representing a year-over-year increase of 14.6%. EPS of $1.62 for the same period compares to $1.21 a year ago. The reported revenue compares to the Zacks Consensus Estimate of $667.21 million, representing a surprise of +1.34%. The company delivered an EPS surprise of +5.88%, with the consensus EPS estimate being $1.53. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wa ...

Veeva Systems (VEEV) came out with quarterly earnings of $1.62 per share, beating the Zacks Consensus Estimate of $1.53 per share. This compares to earnings of $1.21 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 5.88%. A quarter ago, it was expected that this provider of cloud-based software services for the life sciences industry would post earnings of $1.43 per share when it actually produced earnings of $1.50, delivering ...

Financial Performance & Guidance - Total revenue for FY 2024 reached $2364 million, with a year-over-year growth of 10%[5,24] - The company projects total revenue for FY 2025 to be between $2704 million and $2710 million[5,18] - Subscription revenue is expected to be approximately $2257 million in FY 2025[5,18] - Non-GAAP operating income for FY 2025 is guided at approximately $1080 million, representing roughly 40% operating margin[11,12,19] - Q3'25 total revenue is projected to be between $682 million and $685 million[8,20] Revenue Breakdown & Growth - Subscription revenue grew by 10% year-over-year in FY 2024[5,24] - Services revenue increased by 9% in FY 2024[5,24] - Subscription revenue growth for Q2'25 was 19%[9,23] - Services revenue decreased by 4% in Q2'25[9,23] Billings & Cash Flow - Normalized billings for FY 2025 are projected to be around $2880 million, reflecting an approximate 11% year-over-year growth[16,19] - Non-GAAP cash from operations is expected to be about $1030 million for FY 2025[17,18,19]

Total Revenues of $676.2M, up 15% Year Over Year; Subscription Services Revenues of $561.3M, up 19% Year Over Year PLEASANTON, Calif., Aug. 28, 2024 /PRNewswire/ -- Veeva Systems Inc. (NYSE: VEEV), a leading provider of industry cloud solutions for the global life sciences industry, today announced results for its second quarter ended July 31, 2024. "It was another quarter of great execution, with major product advances in clinical and CRM that position us well for the industry cloud opportunity we see ahea ...

Core Viewpoint - The investment thesis for Veeva Systems (NYSE: VEEV) remains bullish despite mixed feelings due to the stock's underperformance compared to the broader market. The upcoming Q2 earnings report is anticipated to reinforce this bullish sentiment, supported by attractive valuations and strong fundamentals [3][4]. Recent Developments and Q2 Earnings Preview - VEEV's Q1 earnings report showed a revenue growth of 23.5% year-over-year, with adjusted EPS increasing from $0.91 to $1.50. The actual revenue was $650.35 million, beating expectations by $8.35 million [5][6]. - The upcoming Q2 earnings release is scheduled for August 28, with analysts forecasting revenue of approximately $668 million, representing a 13% year-over-year increase, and adjusted EPS expected to rise from $1.21 to $1.53 [9][10]. Financial Performance - VEEV demonstrated strong operating leverage in Q1, with gross margin expanding from 70.8% to 73.3% and operating margin more than doubling from 11.7% to 24.6%. Levered free cash flow increased significantly from $43 million to $749 million year-over-year [7]. - The balance sheet is robust, with total cash of $4.77 billion and minimal debt of $55.74 million, resulting in a net cash position of $4.71 billion [8]. Analyst Sentiment - VEEV has a flawless earnings surprise history, having never missed revenue or EPS consensus estimates over the last sixteen quarters, indicating strong management execution [11]. - Recent reports from analysts, including BofA Securities, have included VEEV in lists of top stocks, reflecting positive sentiment in the market [12][14]. Valuation Update - VEEV's stock has appreciated by 3.5% year-to-date but has underperformed the broader market. The stock currently has a low valuation grade, yet it shows strong profitability and growth metrics [16]. - The fair value of VEEV is estimated at $36.84 billion, suggesting a 16% upside potential from the current market price of $31.86 [20]. Conclusion - The fundamentals for VEEV appear robust, with significant revenue and EPS growth expected to continue. The company's strong financial position allows for strategic investments that could enhance shareholder value [15][25].

Analysts on Wall Street project that Veeva Systems (VEEV) will announce quarterly earnings of $1.53 per share in its forthcoming report, representing an increase of 26.5% year over year. Revenues are projected to reach $667.21 million, increasing 13% from the same quarter last year. The current level reflects no revision in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over this ...

Veeva Systems (VEEV) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future. Over the past month, shares of this provider of cloud-based software services for the life sciences industry have returned +9.3%, compared to the Zacks S&P 500 composite's +2.2% change. During this period, the Zacks Internet - Software industry, which Veeva falls in, has gained 7.2%. The key ques ...