Core Insights - Veeva Systems reported quarterly earnings of $1.50 per share, exceeding the Zacks Consensus Estimate of $1.43 per share, and showing significant growth from $0.91 per share a year ago [1] - The company achieved revenues of $650.35 million for the quarter, surpassing the Zacks Consensus Estimate by 1.34% and increasing from $526.33 million year-over-year [3] Earnings Performance - The earnings surprise for the quarter was 4.90%, following a previous surprise of 6.15% when earnings were $1.38 per share against an expectation of $1.30 [2] - Veeva has consistently surpassed consensus EPS estimates over the last four quarters [2] Revenue Insights - The company has also exceeded consensus revenue estimates in each of the last four quarters [3] - Current consensus EPS estimate for the upcoming quarter is $1.51, with expected revenues of $673.73 million, and for the current fiscal year, the estimate is $6.14 on $2.73 billion in revenues [7] Market Performance - Veeva shares have increased by approximately 4.1% since the beginning of the year, while the S&P 500 has gained 10.4% [4] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Industry Context - The Internet - Software industry, to which Veeva belongs, is currently ranked in the top 25% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8]

Total Revenues of $650.3M, up 24% Year Over Year; Subscription Services Revenues of $534.0M, up 29% Year Over Year PLEASANTON, Calif., May 30, 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 first quarter ended April 30, 2024. "Thanks to our customers and the Veeva team we had an excellent start to the year," said CEO Peter Gassner. "We made major progress in Development Cloud, Commerc ...

Revenue Growth - Total revenues for the first quarter were $650.3 million, up 24% year over year from $526.3 million[5] - Subscription services revenues for the first quarter were $534.0 million, up 29% year over year from $414.5 million[5] - Subscription services revenues increased to $533.955 million in Q1 2024, up from $414.546 million in Q1 2023[20] - Veeva Commercial Solutions subscription revenues grew to $261.316 million in Q1 2024, compared to $239.324 million in Q1 2023[20] Operating Income and Profitability - First quarter operating income was $155.2 million, a 152% increase year over year from $61.5 million[5] - Non-GAAP operating income for the first quarter was $260.9 million, up 66% year over year from $157.0 million[5] - Non-GAAP operating income for Q1 2025 is expected to be between $265 million and $267 million[18] - Non-GAAP operating income for fiscal year 2025 is expected to be approximately $1.07 billion[18] - Non-GAAP gross margin on subscription services revenues improved to 85.9% in Q2 2024 from 84.3% in Q2 2023[29] - Non-GAAP gross margin on professional services and other revenues rose to 28.6% in Q2 2024 from 23.0% in Q2 2023[29] - Total non-GAAP gross margin increased to 75.6% in Q2 2024 from 71.3% in Q2 2023[29] - Non-GAAP gross profit increased to $491,783 thousand in Q2 2024 from $375,113 thousand in Q2 2023[29] Net Income and Earnings Per Share - First quarter net income was $161.7 million, a 23% increase year over year from $131.5 million[5] - Non-GAAP net income for the first quarter was $247.0 million, up 67% year over year from $147.9 million[5] - Fully diluted net income per share was $0.98, compared to $0.81 one year ago[5] - Non-GAAP fully diluted net income per share was $1.50, compared to $0.91 one year ago[5] - Non-GAAP fully diluted net income per share for Q1 2025 is forecasted between $1.53 and $1.54[18] - Non-GAAP fully diluted net income per share for fiscal year 2025 is forecasted at approximately $6.16[18] Product and Customer Wins - Three top 20 biopharma companies selected multiple Veeva Development Cloud applications[5] - Veeva Vault Basics applications are now available, allowing emerging biotechs to start with Development Cloud earlier in their lifecycle[5] - Vault CRM Suite achieved 13 CRM wins in the quarter, with full availability for new customers starting in April[18] - Veeva Data Cloud added a record 21 new brands for Compass Patient in Q1, including a seven-figure enterprise-wide win with a top 50 biopharma[18] Financial Projections - Total revenues for Q1 2025 are projected between $666 million and $669 million[18] - Total revenues for fiscal year 2025 are projected between $2.7 billion and $2.71 billion[18] Cash Flow and Expenses - Net cash provided by operating activities on a GAAP basis increased to $763,516 thousand in Q2 2024 from $505,936 thousand in Q2 2023[29] - Non-GAAP research and development expense decreased to $120,940 thousand in Q2 2024 from $108,026 thousand in Q2 2023[29] - Net cash used in investing activities on a GAAP basis was $272,378 thousand in Q2 2024 compared to $297,394 thousand in Q2 2023[29] - Net cash provided by financing activities on a GAAP basis was $3,828 thousand in Q2 2024 compared to a net cash used of $1,392 thousand in Q2 2023[29] - Non-GAAP cost of subscription services revenues decreased to $75,495 thousand in Q2 2024 from $64,980 thousand in Q2 2023[29] - Non-GAAP cost of professional services and other revenues decreased to $83,067 thousand in Q2 2024 from $86,232 thousand in Q2 2023[29]

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside- audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.09% lower. Veeva Systems is holding a Zacks Rank of #3 (Hold) right now. Shares of the provider of cloud-based software services for the life sciences industry have appreciated by 2.76% over the course of the past month, underpe ...

Core Viewpoint - Veeva Systems (VEEV) is expected to report strong quarterly earnings with a projected EPS of $1.43, reflecting a 57.1% year-over-year increase, and revenues of $641.73 million, indicating a 21.9% increase compared to the previous year [1]. Earnings Projections - Over the last 30 days, the consensus EPS estimate has been revised downward by 0.1%, indicating a slight adjustment in analysts' forecasts [2]. - Changes in earnings projections are crucial for predicting investor reactions, as empirical studies show a strong correlation between earnings estimate trends and short-term stock price movements [3]. Revenue Estimates - Analysts predict 'Revenues- Subscription services' will reach $528.26 million, a 27.4% increase from the prior-year quarter [5]. - The estimate for 'Revenues- Professional services and other' is $113.08 million, reflecting a 1.2% increase from the previous year [5]. - 'Revenues- Professional services and other- Veeva R&D Solutions' is expected to be $68.33 million, showing a 2.1% year-over-year change [6]. - 'Revenues- Subscription services- Veeva R&D Solutions' is projected at $267.79 million, indicating a significant 52.8% increase from the year-ago quarter [6]. - 'Revenues- Subscription services- Veeva Commercial Solutions' is anticipated to be $259.99 million, reflecting an 8.6% increase [7]. - The consensus for 'Revenues- Professional services and other- Veeva Commercial Solutions' is $45.32 million, indicating a 1% year-over-year change [7]. Gross Margin Estimates - The average prediction for 'Non-GAAP Gross Margin- Professional Services and other' is 26.3%, up from 23% in the previous year [8]. - 'Non-GAAP Gross Margin- Subscription services' is expected to be 85.2%, compared to 84.3% reported in the same quarter last year [8]. Stock Performance - Over the past month, Veeva shares have returned +2.8%, while the Zacks S&P 500 composite has changed by +4% [8]. - Veeva holds a Zacks Rank 3 (Hold), suggesting its performance will likely align with the overall market in the near term [8].

Core Insights - Veeva Systems reports that healthcare professional (HCP) access has decreased from 60% to 45% over the past eighteen months, with many HCPs limiting engagement to three or fewer companies [1][6] - The Veeva Pulse Field Trends Report indicates that coordinated engagement across sales, marketing, and medical teams is essential for overcoming access barriers and enhancing relationships with HCPs [2][3] HCP Access Trends - HCP access has declined significantly, with only 45% of HCPs accessible to biopharmaceutical companies compared to 60% previously [1][6] - Access varies by specialty, with nearly 30% of HCPs in fields such as internal medicine, oncology, psychiatry, and urology restricting access to just one company [6] Engagement Strategies - Companies are adopting a connected engagement model that integrates sales, marketing, and medical teams to create a unified resource for HCPs, which helps in building more relevant and trusted relationships [2][3] - The focus is shifting from reach and frequency to relevance and real-time communication, which is expected to lead to more impactful conversations that ultimately benefit patients [3][6] Data and Analysis - The Veeva Pulse Field Trends Report analyzes over 600 million HCP interactions annually from more than 80% of commercial biopharma field teams globally, providing a comprehensive benchmark for HCP engagement [4] - The report compiles real-time transactional data from Veeva CRM and data products, enabling companies to set actionable goals for growth and impact [4]

Annual MedTech Breakthrough Awards program recognizes leading companies in medical devices and diagnostics PLEASANTON, Calif., May 22, 2024 /PRNewswire/ -- Veeva Systems (NYSE: VEEV) today announced that Veeva MedTech was named "Best Overall MedTech Software" for the second year in a row in the 8th annual MedTech Breakthrough Awards program. The awards honor excellence and recognize innovation, commitment, and success across a range of health and medical technology categories. Veeva MedTech wins "Best Overa ...

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system. The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% sinc ...

Ascendis, Bayer, Boehringer Ingelheim, Jazz Pharmaceuticals, Novo Nordisk, Sanofi, and Teva to keynote sharing innovations to drive better patient outcomes BARCELONA, Spain, May 21, 2024 /PRNewswire/ -- Veeva Systems (NYSE: VEEV) today announced that leaders from Ascendis Pharma A/S, Bayer, Boehringer Ingelheim, Jazz Pharmaceuticals, Novo Nordisk, Sanofi, and Teva will be keynote speakers at Veeva R&D and Quality Summit, Europe, June 4-5 in Madrid, Spain. Life sciences professionals across the industry will ...

Veeva Systems (VEEV) recently announced the availability of Vault Basics, a new offering that includes technology, training, and support designed for biotechs. Vault Basics enables rapidly expanding businesses to employ market-leading Veeva Vault applications, without any upfront or maintenance costs. Applications developed on industry best practices can be swiftly adopted by biotechs, providing a basis for scaling and growth management. Vault Basics is live at 10 biotechs to promote speed, compliance, and ...