Have you assessed how the international operations of Veeva Systems (VEEV) performed in the quarter ended April 2024? For this provider of cloud-based software services for the life sciences industry, possessing an expansive global footprint, parsing the trends of international revenues could be critical to gauge its financial resilience and growth prospects. In today's increasingly interconnected global economy, a company's ability to tap into international markets can be a pivotal factor in shaping its ov ...

Financial Performance - Total revenues for the three months ended April 30, 2024, were $650,345,000, representing a 23.5% increase from $526,325,000 in the same period of 2023[18]. - Subscription services revenue increased to $533,955,000, up 28.8% from $414,546,000 year-over-year[18]. - Net income for the quarter was $161,664,000, compared to $131,521,000 in the prior year, reflecting a 22.8% increase[18]. - Operating income rose significantly to $155,172,000, compared to $61,530,000 in the same quarter of 2023, marking a 152.5% increase[18]. - Gross profit for the three months ended April 30, 2024, was $476,461,000, representing a 32% increase from $359,662,000 in 2023[113]. - Operating income increased to $155,172,000, compared to $61,530,000 in the same period last year, marking a significant improvement[113]. - For the three months ended April 30, 2024, total revenues increased to $650.3 million, up 23.5% from $526.3 million in the same period of 2023[84]. - Subscription services revenue reached $534.0 million, representing a 28.8% increase from $414.5 million year-over-year[84]. - R&D Solutions revenue grew significantly to $272.6 million, a 55.7% increase compared to $175.2 million in the prior year[84]. - Basic net income for the three months ended April 30, 2024, was $161.7 million, resulting in a basic net income per share of $1.00, compared to $119.6 million and $0.82 per share in the same period of 2023[69]. - Diluted net income per share for Class A common stock was $0.98 for the three months ended April 30, 2024, compared to $0.81 for Class B common stock in the same period of 2023[69]. Cash Flow and Assets - Cash and cash equivalents increased to $1,197,196,000 from $703,487,000, showing a growth of 70.5%[15]. - The company reported a net cash provided by operating activities of $763,516,000, compared to $505,936,000 in the same period last year, a 50.8% increase[25]. - The company experienced a net change in cash, cash equivalents, and restricted cash of $493,709,000 for the quarter, compared to $207,169,000 in the prior year[25]. - Cash, cash equivalents, and short-term investments totaled $4.8 billion as of April 30, 2024, with $85 million held outside the United States[135]. - Net cash used in investing activities decreased to $272.4 million for the three months ended April 30, 2024, from $297.4 million in the same period of 2023, a reduction of 8.4%[144]. - Net cash provided by financing activities was $3.8 million for the three months ended April 30, 2024, compared to a net cash used of $1.4 million in the same period of 2023[146]. Expenses and Investments - Research and development expenses for the quarter were $162,711,000, up from $146,960,000, reflecting an increase of 10.7%[18]. - The cost of subscription services increased by 16% to $78,148,000, primarily due to higher computing infrastructure costs[113]. - The gross margin percentage for subscription services improved to 85% from 84% in the previous year[113]. - Other income, net, increased by 71% to $51,729,000, driven by higher interest income from increased investment asset balances[123]. - The company expects operating expenses to rise in the fiscal year ending January 31, 2025, mainly due to increased employee compensation-related costs[115]. Equity and Stock Options - The total stockholders' equity at the end of the period was $4,889,381,000, compared to $4,644,824,000, an increase of 5.3%[15]. - As of April 30, 2024, there were 12,751,547 stock options outstanding with a weighted average exercise price of $165.33[61]. - The total intrinsic value of options exercised during the three months ended April 30, 2024, was approximately $12 million[63]. - The total unrecognized compensation cost related to unvested RSUs was $252 million, expected to be recognized over approximately 1.4 years[65]. Customer and Market Dynamics - The company served 1,432 customers as of January 31, 2024, up from 1,388 in 2023[92]. - Approximately 52% of subscription services revenues were derived from Commercial Solutions and 50% of total revenues from R&D Solutions for the fiscal year ended January 31, 2024[90]. - Professional services revenues constituted 18% of total revenues for the three months ended April 30, 2024[94]. - Approximately 41% of total revenues in the fiscal year ended January 31, 2024, came from customers outside North America, highlighting the company's international exposure[188]. Risks and Legal Proceedings - The company is involved in ongoing litigation with IQVIA, with potential monetary damages exceeding $200 million sought in counterclaims[72]. - The company is involved in ongoing legal proceedings, including a significant case against IQVIA regarding non-compete agreements, with a trial date set for June 13, 2025[164]. - The company faces risks from competitive pressures, particularly from IQVIA, which has expanded its CRM partnership with Salesforce, potentially impacting market share[176]. - The company acknowledges that its revenue growth rates may fluctuate and could decline over time due to increasing costs and market conditions[169]. - The company is subject to risks from cybersecurity threats, which could lead to reputational damage and financial liabilities[171]. - The company has experienced difficulty in attracting and retaining highly skilled employees, which may increase operational expenses and impact growth[193]. Future Outlook - The company expects cash flows from operating activities to be substantially less in future quarterly periods of the fiscal year ending January 31, 2025, due to tax payment requirements[142]. - The company may pursue acquisitions to enhance growth opportunities, but this could divert management's attention and disrupt operations[199]. - The company’s ability to serve a significant portion of the estimated total addressable market (TAM) is contingent on enhancing existing solutions and introducing new ones[207].

Core Points - Veeva Systems announced participation in two upcoming investor conferences, with presentations by Paul Shawah, EVP Commercial Strategy [1] - The presentations will be available via webcast on Veeva's investor relations website [2] - Veeva is recognized as a global leader in cloud software for the life sciences industry, serving over 1,000 customers [3] Company Information - Veeva Systems is committed to innovation, product excellence, and customer success, balancing the interests of all stakeholders [3] - The company utilizes its investor relations website for disclosing material non-public information and complying with disclosure obligations [4]

Veeva Systems Inc. (NYSE:VEEV) Q1 2025 Earnings Conference Call May 30, 2024 5:00 PM ET Company Participants Gunnar Hansen - Senior Director, Investor Relations Peter Gassner - Founder and Chief Executive Officer Tim Cabral - Interim Chief Financial Officer Paul Shawah - Executive Vice President, Commercial Strategy Conference Call Participants Joe Vruwink - Baird Rishi Jaluria - RBC Capital Markets Dylan Becker - William Blair Ken Wong - Oppenheimer & Company Stanislav Berenshteyn - Wells Fargo Securities ...

Veeva Systems (VEEV) reported $650.35 million in revenue for the quarter ended April 2024, representing a year-over-year increase of 23.6%. EPS of $1.50 for the same period compares to $0.91 a year ago. The reported revenue represents a surprise of +1.34% over the Zacks Consensus Estimate of $641.73 million. With the consensus EPS estimate being $1.43, the EPS surprise was +4.90%. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall ...

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].