Financial Data and Key Metrics Changes - Total revenue for Q3 was $811 million, with non-GAAP operating income at $365 million, exceeding guidance [6] - CRM now constitutes about 20% of total revenue, down from 25% two years ago, indicating growth in other product areas [9] Business Line Data and Key Metrics Changes - Veeva AI is highlighted as a major initiative, with significant progress expected to benefit customers and the industry [6] - Crossix continues to perform well, with expectations for it to remain a growth driver in the coming years [34][39] Market Data and Key Metrics Changes - The overall health of the pharmaceutical industry remains strong, with no significant changes in customer buying behaviors noted [31] - Digital marketing spending is increasing, which positively impacts Crossix's business [39] Company Strategy and Development Direction - The company is focused on delivering integrated solutions across clinical operations and clinical data to drive efficiency [11] - Veeva aims to leverage its consulting, data, and software capabilities to provide comprehensive solutions for life sciences [47][48] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the industry, citing ongoing demand for innovative solutions to address uncured diseases [31] - The company anticipates no material impact on its 2030 goals despite some customer attrition in the CRM segment [9][75] Other Important Information - The company is investing in product and services teams, which may impact margins in the short term but is expected to yield positive results over time [58] - The partnership with IQVIA is seen as beneficial, enhancing customer confidence and operational capabilities [41][42] Q&A Session Summary Question: Concerns about CRM customer migration - Management acknowledged that CRM is about 20% of total revenue and that attrition is expected to have no immediate impact on 2030 goals [9][75] Question: Competitive landscape in EDC market - Management noted that while one customer returned to a previous provider, overall trends in clinical remain positive with opportunities for growth [11] Question: Impact of AI on sales force efficiency - Management indicated that while there have been some reductions in sales force size, the industry is cautious about making significant changes [28] Question: Demand environment in pharma - Management reported that the industry is healthy, with no significant changes in customer buying behaviors despite external political factors [31] Question: Crossix performance and future growth - Management confirmed that Crossix continues to perform well and is expected to be a strong growth driver moving forward [34][39] Question: Quality cloud expansion - Management highlighted that the quality cloud opportunity is expanding through reaching new customer types and product expansion [80]

Financial Data and Key Metrics Changes - Total revenue for Q3 was $811 million, with non-GAAP operating income at $365 million, exceeding guidance [6] - CRM now constitutes about 20% of total revenue, down from 25% two years ago, indicating growth in other product areas [9] Business Line Data and Key Metrics Changes - Veeva AI is highlighted as a major initiative with significant progress, expected to add value across various product areas including Vault CRM, Crossix, clinical, and safety [6] - Crossix continues to perform well, with expectations for it to remain a growth driver in the coming years [34] Market Data and Key Metrics Changes - The overall health of the pharmaceutical industry remains strong despite political chaos, with no significant changes in customer buying behaviors noted [31] - Digital marketing spending is increasing, which benefits Crossix as it becomes a standard for measurement and optimization [39] Company Strategy and Development Direction - The company is focused on delivering integrated solutions across clinical operations and clinical data, emphasizing efficiency as a key driver [11] - Veeva aims to be a comprehensive provider in the life sciences sector, integrating software, data, and consulting services [47] Management's Comments on Operating Environment and Future Outlook - Management expresses optimism about the industry, citing ongoing demand for innovative solutions to address uncured diseases [31] - The company anticipates no material impact on its 2030 goals despite some customer attrition in the CRM segment, as the business is diverse and has multiple growth paths [75][76] Other Important Information - The company is investing in product and services teams, with a focus on business consulting and professional services to enhance customer engagement [59] - The partnership with IQVIA is seen as a positive trend, enhancing customer confidence and operational capabilities [42] Q&A Session Summary Question: Concerns about CRM customer migration - Management noted that CRM is currently about 20% of total revenue, down from 25% two years ago, and emphasized that no immediate impact is expected from customer migrations [9][19] Question: Competitive landscape in EDC market - Management acknowledged a competitor winning back a top 20 customer but expressed confidence in their own pipeline and opportunities in the EDC market [10][11] Question: Impact of AI on sales force efficiency - Management indicated that while there have been some reductions in sales force size, the industry remains cautious about significant changes due to the need for relationship building [28] Question: Demand environment and financial health of pharma market - Management reported that the pharmaceutical industry is healthy, with no significant changes in demand or buying behavior observed [31] Question: Crossix performance and future growth - Management confirmed that Crossix continues to perform well and is expected to be a strong growth driver in the future [34][70] Question: Insights from customer-specific factors affecting CRM wins - Management stated that customer-specific dynamics are at play, with no overarching pattern, and emphasized the health of the overall CRM business [56][57]

Financial Data and Key Metrics Changes - Total revenue for the quarter was $811 million, with non-GAAP operating income at $365 million, exceeding guidance [5] - CRM revenue has decreased to about 20% of total revenue, down from 25% two years ago, indicating growth in other product areas [8] Business Line Data and Key Metrics Changes - Veeva AI is highlighted as a major initiative, with significant progress expected to benefit customers and the industry [5] - Crossix continues to perform well, contributing to overall revenue growth, with expectations for it to remain a strong growth driver [32][37] Market Data and Key Metrics Changes - The overall health of the pharmaceutical industry remains strong, with no significant changes in customer buying behaviors noted [28] - Digital marketing spending is increasing, which positively impacts Crossix's performance and growth potential [36] Company Strategy and Development Direction - The company is focused on integrating its software, data, and consulting services to provide comprehensive solutions for life sciences [44] - There is an emphasis on innovation in clinical and safety areas, with expectations for AI to drive efficiency and effectiveness [19][48] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about the industry, citing ongoing demand for solutions to uncured diseases and a stable market environment [28] - The company expects to continue to meet its 2030 goals despite some customer attrition in the CRM segment, due to the diverse nature of its business [73] Other Important Information - The company is investing in hiring for product and services teams to support growth and innovation [55] - The partnership with IQVIA is seen as beneficial, enhancing customer confidence and providing opportunities for joint solutions [40] Q&A Session Summary Question: Concerns about CRM customer migration - Management acknowledged that CRM is currently about 20% of total revenue and that attrition is not expected to impact long-term goals [8][73] Question: Competitive landscape in EDC market - Management noted that while one customer returned to a previous provider, overall trends in clinical operations remain positive, with opportunities for growth [10] Question: Impact of AI on sales force efficiency - Management indicated that while there have been some reductions in sales force size, the industry is cautious about making significant changes [26] Question: Demand environment in pharma - Management reported that the industry is healthy, with no significant changes in customer buying behaviors despite political and economic challenges [28] Question: Crossix performance and future growth - Management confirmed that Crossix continues to perform well and is expected to be a strong growth driver moving forward [32][37] Question: Balancing go-to-market initiatives - Management stated that dedicated teams are in place to focus on various product areas, allowing for simultaneous advancement in multiple initiatives [68]

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Q3'26 Quarterly Results November 20, 2025 This presentation and associated commentary contain forward-looking statements regarding Veeva's expected future performance and, in particular, includes guidance, provided as of November 20, 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 ac ...

Core Insights - Veeva Systems Inc. reported total revenues of $811.2 million for the third quarter of fiscal 2026, representing a 16% increase year over year. Subscription services revenues were $682.5 million, up 17% year over year [1][9] - The company is on track to achieve its 2030 revenue run-rate goal of $6 billion, with strong performance across its business segments [2][9] - Veeva AI is advancing rapidly, with early adopter projects showing significant value in specialized AI applications for the life sciences industry [2] Financial Performance - Total revenues for the third quarter were $811.2 million, up from $699.2 million a year ago, marking a 16% increase [9] - Subscription services revenues increased to $682.5 million from $580.9 million, a 17% year-over-year growth [9] - Operating income for the third quarter was $240.9 million, a 33% increase from $181.4 million year over year [9] - Non-GAAP operating income was $364.9 million, up 20% from $304.0 million year over year [9] - Net income for the third quarter was $236.2 million, a 27% increase from $185.8 million year over year [9] - Non-GAAP net income was $345.1 million, up 20% from $288.3 million year over year [9] - Fully diluted net income per share was $1.40, compared to $1.13 a year ago, while non-GAAP fully diluted net income per share was $2.04, up from $1.75 [9] Strategic Developments - Veeva AI is set to release its first specialized AI agents for CRM and commercial content in early December, with additional agents planned for 2026 [9] - The company added 23 new customers to its Vault CRM platform, bringing the total to 115 customers live, including a significant rollout in Japan for a top 20 biopharma [9] - Veeva Development Cloud has been selected as the enterprise standard by three top 20 biopharmas, indicating strong demand for its applications [9] Guidance and Outlook - Veeva provided guidance for its fiscal fourth quarter ending January 31, 2026, expecting total revenues between $807 million and $810 million [3] - For the full fiscal year ending January 31, 2026, Veeva expects total revenues between $3,166 million and $3,169 million [3]

Financial Performance - Total revenues for Q3 2026 were $811.2 million, representing a 16% increase year over year from $699.2 million[3] - Subscription services revenues for Q3 2026 reached $682.5 million, up 17% year over year from $580.9 million[3] - Operating income for Q3 2026 was $240.9 million, a 33% increase from $181.4 million in the same quarter last year[3] - Non-GAAP operating income for Q3 2026 was $364.9 million, up 20% from $304.0 million year over year[3] - Net income for Q3 2026 was $236.2 million, reflecting a 27% increase from $185.8 million in Q3 2025[3] - Non-GAAP net income for Q3 2026 was $345.1 million, an increase of 20% from $288.3 million year over year[3] - Total revenues for the three months ended October 31, 2025, were $811,236,000, representing a 16% increase from $699,207,000 in the same period of 2024[17] - Subscription services revenue increased to $682,498,000 for the three months ended October 31, 2025, up 17.5% from $580,850,000 in 2024[17] - Net income for the nine months ended October 31, 2025, was $664,702,000, a 28.2% increase compared to $518,513,000 for the same period in 2024[20] - Operating income for the three months ended October 31, 2025, was $240,853,000, up 32.8% from $181,353,000 in 2024[17] - Diluted net income per share for the three months ended October 31, 2025, was $1.40, compared to $1.13 in 2024, representing a 23.9% increase[17] - Non-GAAP net income for the nine months ended October 31, 2025, was $1,006,343,000, up from $802,551,000 in 2024, reflecting a growth of 25.4%[29] Cash Flow and Expenses - Cash flows from operating activities for the nine months ended October 31, 2025, totaled $1,308,378,000, compared to $1,020,507,000 in 2024, reflecting a 28.2% increase[20] - Cash, cash equivalents, and restricted cash at the end of the period were $1,662,315,000, up from $1,046,689,000 in 2024[20] - Stock-based compensation expenses for the nine months ended October 31, 2025, amounted to $354,444,000, compared to $322,146,000 in 2024, reflecting a 10% increase[20] - Net cash provided by operating activities on a GAAP basis for the three months ended October 31, 2025, was $192,787,000, compared to $164,117,000 for the same period in 2024, representing a year-over-year increase of 17.4%[26] - Non-GAAP net cash provided by operating activities for the nine months ended October 31, 2025, was $1,285,076,000, up from $1,015,347,000 in 2024, reflecting a growth of 26.5%[26] Research and Development - Research and development expenses for the three months ended October 31, 2025, were $191,883,000, an increase of 11.3% from $172,411,000 in 2024[17] - Research and development expense on a GAAP basis for the three months ended October 31, 2025, was $191,883,000, compared to $172,411,000 in 2024, reflecting an increase of 11.4%[29] Guidance and Future Outlook - Guidance for Q4 2026 includes total revenues between $807 million and $810 million, with non-GAAP fully diluted net income per share expected to be approximately $1.92[8] - The company is on track to achieve a $6 billion revenue run-rate goal by 2030[3] Product Development - Veeva AI is set to release its first agents for CRM and commercial content in early December 2025, with additional agents planned for 2026[5] - Veeva Development Cloud applications were selected as the enterprise standard by three top 20 biopharmas in Q3 2026[5] Operating Expenses and Margins - Total operating expenses for the nine months ended October 31, 2025, were $1,120,325,000, compared to $1,004,076,000 in 2024, marking a 11.6% increase[17] - Operating margin on a non-GAAP basis for the three months ended October 31, 2025, was 45.0%, compared to 43.5% in 2024, indicating an improvement of 1.5 percentage points[29] - Sales and marketing expense on a GAAP basis for the three months ended October 31, 2025, was $110,552,000, an increase from $98,695,000 in 2024, representing a growth of 12.8%[29] - Gross margin on subscription services revenues on a non-GAAP basis increased to 87.0% for the nine months ended October 31, 2025, compared to 86.2% in 2024[26]

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Core Viewpoint - Veeva Systems (VEEV) is expected to report quarterly earnings of $1.95 per share, an increase of 11.4% year-over-year, with revenues projected at $791.88 million, reflecting a 13.3% increase compared to the same period last year [1]. Earnings Estimates - The consensus EPS estimate has been revised downward by 0.1% 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 trends and short-term price performance [3]. Revenue Projections - Analysts project 'Revenues- Subscription services' to reach $671.02 million, indicating a year-over-year change of +15.5% [5]. - The consensus for 'Revenues- Professional services and other' is $120.86 million, reflecting a year-over-year change of +2.1% [5]. - 'Revenues- Professional services and other- Veeva R&D Solutions' is forecasted to be $74.66 million, showing a +3% change from the previous year [5]. - 'Revenues- Subscription services- Veeva R&D Solutions' is expected to reach $361.28 million, indicating a +19.4% change year-over-year [6]. - 'Revenues- Subscription services- Veeva Commercial Solutions' is projected at $309.72 million, reflecting an +11.3% change from the prior year [6]. - The estimate for 'Revenues- Professional services and other- Veeva Commercial Solutions' stands at $46.26 million, indicating a +0.9% change year-over-year [7]. Gross Margin Estimates - The estimated 'Non-GAAP Gross Margin- Professional Services and other' is projected at 31.8%, down from 33.5% reported in the same quarter last year [7]. - The collective assessment suggests a 'Non-GAAP Gross Margin- Subscription services' of 85.9%, slightly lower than the 86.2% reported in the same quarter last year [8]. Stock Performance - Veeva shares have shown a return of +3.4% over the past month, outperforming the Zacks S&P 500 composite's +1.5% change [8]. - With a Zacks Rank 2 (Buy), VEEV is expected to outperform the overall market in the near future [8].

Core Insights - Veeva Systems Inc. is recognized as a leading digital health stock, particularly in the life sciences sector [1] - The company announced that its Veeva Basics solution has been adopted by over 100 biotech firms, indicating strong market demand and scalability [2][5] - New capabilities include LIMS Basics for laboratory oversight and PromoMats Basics for content lifecycle management, enhancing operational efficiency for users [3][4] Company Overview - Veeva Systems Inc. operates as a cloud-software company focused on providing solutions for life sciences organizations, including clinical, regulatory, quality, and commercial platforms [6] - The Veeva Basics solution is built on the Vault Platform, allowing biotech firms to implement best practices quickly and transition smoothly to a full Vault solution [2][4] Market Position - The adoption of Veeva Basics by over 100 firms highlights Veeva's strategic growth within the emerging biotech segment, where regulatory compliance and cost efficiency are critical [5] - Testimonials from early adopters emphasize the benefits of pre-configured templates and rapid implementation, showcasing Veeva's value proposition in the market [4]