Core Insights - Gilead Sciences has committed to using Veeva Vault CRM, enhancing their long-standing partnership with Veeva Systems [1][2][7] - Veeva Vault CRM is designed to improve commercial execution through advanced AI capabilities, including pre-call planning and voice control [2][3] Company Overview - Veeva Systems provides cloud-based software and services tailored for the life sciences industry, serving over 1,500 customers, including major biopharmaceutical companies [3] - Gilead Sciences is a biopharmaceutical company focused on innovative medicines for life-threatening diseases, operating in over 35 countries [4]

Core Viewpoint - Veeva (NYSE: VEEV) is experiencing accelerated revenue growth, leading to a reiterated "buy" rating with a price target of $322 per share [1]. Company Overview - Veeva is positioned in the market as a growth-driven company focusing on sustainable investment strategies [1]. Investment Strategy - The investment strategy emphasizes maximizing shareholder equity by targeting companies that meet growth-oriented goals [1]. Analyst Background - The analyst has extensive experience in high-growth supply-chain start-ups and has worked with venture capital firms, enhancing user acquisition and maximizing returns during the pandemic [1]. Financial Literacy - The analyst aims to democratize financial literacy, making complex macroeconomic concepts more accessible and empowering for investors [1].

Group 1 - The analyst has previously given a buy rating to Veeva Systems (NYSE: VEEV) based on confidence in its long-term growth outlook and execution capabilities [1] - Recent results have strengthened the analyst's conviction regarding Veeva Systems' performance [1] - The investment approach focuses on identifying undervalued companies with long-term growth potential, blending value investing principles with a long-term growth focus [1]

Question-and-Answer SessionBrian, I thought we'd kick things off with you since you're a new face for the audience here. Give us a little bit about your background and kind of how the first year has gone as CFO?Brian Van WagenerChief Financial Officer Yes. Well, nice to see everybody, and thanks for having us, Tyler, and thanks, everybody, for joining. I am coming up on the end of my freshman year here. So a couple of bumbles and awkward movements along the way. I got stuffed in a couple of lockers, but we ...

Summary of Veeva Systems (VEEV) 2025 Conference Call Company Overview - **Company**: Veeva Systems (VEEV) - **Event**: 2025 Conference at Citi Tech Conference - **Date**: September 04, 2025 Key Points Company Transformation and Strategy - The company is undergoing a transformation and inflection point, focusing on entering new markets and horizontal software, which is seen as the "third act" of Veeva [4][59] - Significant investment in AI is expected to drive change within Veeva and the industry [5] Financial Performance - Q2 billings were subdued due to timing factors, not indicative of long-term business trajectory; revenue and subscription revenue are better indicators of momentum [6][7] - The company raised guidance for the full year across all lines, including revenue, billings, and cash flow, reflecting confidence in the business [7][8] CRM Migration and Competitive Position - Veeva has transitioned from Salesforce to its own Vault CRM, with nine commitments from top 20 pharma companies, indicating strong market traction [9][12] - The migration is expected to yield significant gross margin benefits, with an estimated $80 million in royalty payments to Salesforce being eliminated over time [28] - The company is confident in its ability to win back customers from Salesforce if implementations do not go well [16] Crossix Business Performance - Crossix is performing well, with over $200 million in ARR, driven by investments in product development and a dedicated field team [30][31] - The Audiences business within Crossix is experiencing strong growth, supported by healthy customer marketing budgets [33] Partnership with IQVIA - A new partnership with IQVIA has been established, resolving a long-standing legal dispute and creating opportunities for collaboration in data and clinical markets [35][41] - The partnership is expected to reduce friction for customers and enhance the value proposition of both companies' offerings [41] R&D and Product Development - Veeva has achieved high penetration in the eTMF product, with 20 of the top 20 pharma companies standardized on it, providing a strong foundation for further innovation [52] - The company is focused on expanding its suite of applications in R&D, with a low current penetration rate of around 15% [55] Horizontal Software Market - Veeva is exploring opportunities in the horizontal enterprise application market, which is seen as a long-term growth strategy [59][60] - The company aims to leverage its software capabilities to innovate in this space, emphasizing a commitment to customer success [60] Market Environment and Customer Sentiment - Despite uncertainties in the industry, life sciences companies are continuing to modernize their systems and execute their projects effectively [62][63] - The company remains optimistic about its growth trajectory, supported by a diverse portfolio of products and a strong execution strategy [66][68] Future Outlook - Veeva's long-term targets imply low teens growth, supported by a broad-based portfolio approach and multiple products entering steep adoption phases [65][66] - The company is focused on leveraging AI to enhance quality and speed, rather than solely for margin accretion [70] Additional Insights - The transition to Vault CRM is expected to enhance product excellence and customer success, which are core to Veeva's strategy [27][28] - The company is committed to competing in the data market while maintaining a respectful relationship with IQVIA [45][49]

Core Insights - Veeva Systems has seen significant adoption of its Veeva RIM platform, with over 450 companies, including 19 of the top 20 biopharmaceutical firms, utilizing it for regulatory information management [1][6] - The company has formed strategic partnerships with Accumulus Technologies and DNAnexus to enhance connectivity and integration with multiple health authority platforms, aiming to improve efficiency and compliance in regulatory processes [1][4][5] Veeva RIM Adoption and Impact - The adoption of Veeva RIM is helping regulatory teams improve efficiency and reduce cycle times, providing an end-to-end solution that accelerates time to market and enhances collaboration among global stakeholders [2][3] - More than 85 organizations are leveraging Veeva Submissions Publishing to implement continuous publishing, which reduces rework and accelerates submission timelines [3] Strategic Partnerships - The partnership with Accumulus Technologies aims to modernize information sharing with over 70 regulatory agencies worldwide, facilitating seamless regulatory submissions and expediting treatment delivery to patients [4] - Integrating DNAnexus Trusted Regulatory Spaces with Veeva RIM is expected to enhance data sharing capabilities for inter-agency collaboration and expedite regulated product approvals [5] Company Overview - Veeva Systems provides cloud-based software, data, and consulting services tailored for the life sciences industry, serving over 1,500 customers, including major biopharmaceutical companies and emerging biotechs [6]

Core Insights - Veeva Systems has seen significant adoption of its Veeva RIM platform, with over 450 companies, including 19 of the top 20 biopharmaceutical firms, utilizing it for regulatory information management [1][6] - The company has formed strategic partnerships with Accumulus Technologies and DNAnexus to enhance connectivity and integration with multiple health authority platforms, aiming to improve efficiency and compliance in regulatory processes [1][4][5] Veeva RIM Adoption and Impact - The adoption of Veeva RIM is helping regulatory teams improve efficiency and reduce cycle times, providing an end-to-end solution that accelerates time to market and enhances collaboration among global stakeholders [2][3] - More than 85 organizations are leveraging Veeva Submissions Publishing to implement continuous publishing, which reduces rework and accelerates submission timelines [3] Strategic Partnerships - The partnership with Accumulus Technologies aims to modernize information sharing with over 70 regulatory agencies worldwide, facilitating seamless regulatory submissions and expediting treatment delivery to patients [4] - Integrating DNAnexus Trusted Regulatory Spaces with Veeva RIM is expected to enhance data sharing capabilities for inter-agency collaboration and expedite regulated product approvals [5] Company Overview - Veeva Systems provides a cloud-based platform for life sciences, serving over 1,500 customers, including major biopharmaceutical companies and emerging biotechs [6]

PART I. FINANCIAL INFORMATION [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) Presents Veeva's unaudited condensed consolidated financial statements, including balance sheets, income, equity, cash flows, and detailed notes [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Provides a snapshot of Veeva's financial position at specific dates, detailing assets, liabilities, and equity Condensed Consolidated Balance Sheets (in thousands) | Metric | July 31, 2025 | January 31, 2025 | | :-------------------------------- | :------------ | :--------------- | | Cash and cash equivalents | $1,930,431 | $1,118,785 | | Short-term investments | $4,473,282 | $4,031,442 | | Total current assets | $6,994,588 | $6,308,802 | | Total assets | $7,999,427 | $7,339,756 | | Deferred revenue | $1,107,696 | $1,273,978 | | Total liabilities | $1,360,888 | $1,507,383 | | Total stockholders' equity | $6,638,539 | $5,832,373 | [Condensed Consolidated Statements of Comprehensive Income](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) Details Veeva's financial performance over specific periods, including revenues, gross profit, operating income, and net income Condensed Consolidated Statements of Comprehensive Income (in thousands, except per share data) | Metric | Three months ended July 31, 2025 | Three months ended July 31, 2024 | Six months ended July 31, 2025 | Six months ended July 31, 2024 | | :--------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Total revenues | $789,081 | $676,181 | $1,548,124 | $1,326,526 | | Gross profit | $593,828 | $505,809 | $1,179,047 | $982,270 | | Operating income | $195,908 | $166,487 | $429,640 | $321,659 | | Net income | $200,309 | $171,041 | $428,499 | $332,705 | | Diluted Net income per share | $1.19 | $1.04 | $2.56 | $2.02 | | Total stock-based compensation | $121,966 | $108,376 | $234,176 | $204,287 | [Condensed Consolidated Statements of Stockholders' Equity](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Equity) Outlines changes in Veeva's equity over periods, including net income, stock issuance, and stock-based compensation Changes in Stockholders' Equity (in thousands, except share data) | Metric | July 31, 2025 (3 months) | July 31, 2024 (3 months) | July 31, 2025 (6 months) | July 31, 2024 (6 months) | | :--------------------------------- | :----------------------- | :----------------------- | :----------------------- | :----------------------- | | Balances at beginning of period | $6,211,098 | $4,889,381 | $5,832,373 | $4,644,824 | | Issuance of common stock (options) | $141,692 | $6,400 | $182,297 | $34,834 | | Shares withheld (net settlement) | $(26,373) | $(16,630) | $(46,783) | $(41,588) | | Stock-based compensation expense | $122,723 | $109,435 | $235,734 | $208,861 | | Net income | $200,309 | $171,041 | $428,499 | $332,705 | | Balances at end of period | $6,638,539 | $5,184,698 | $6,638,539 | $5,184,698 | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Summarizes cash inflows and outflows from operating, investing, and financing activities for specified periods Condensed Consolidated Statements of Cash Flows (in thousands) | Cash Flow Activity | Six months ended July 31, 2025 | Six months ended July 31, 2024 | | :--------------------------------- | :----------------------------- | :----------------------------- | | Net cash provided by operating activities | $1,115,591 | $856,390 | | Net cash used in investing activities | $(441,379) | $(386,220) | | Net cash provided by (used in) financing activities | $136,069 | $(7,656) | | Net change in cash, cash equivalents, and restricted cash | $811,646 | $461,262 | | Cash, cash equivalents, and restricted cash at end of period | $1,932,609 | $1,167,932 | [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Provides detailed explanations and disclosures supporting the condensed consolidated financial statements [Note 1. Summary of Business and Significant Accounting Policies](index=8&type=section&id=Note%201.%20Summary%20of%20Business%20and%20Significant%20Accounting%20Policies) Outlines Veeva's core business and the key accounting principles applied in its financial reporting - Veeva is a leading provider of industry cloud solutions for the global life sciences industry, offering cloud software, data, and business consulting from R&D through commercialization[27](index=27&type=chunk) - New accounting pronouncements (ASU 2023-09 and ASU 2024-03) will modify disclosures but are not expected to materially impact financial position or results of operations[30](index=30&type=chunk)[31](index=31&type=chunk) [Note 2. Short-Term Investments](index=9&type=section&id=Note%202.%20Short-Term%20Investments) Details the composition and fair value of Veeva's short-term investment portfolio Short-Term Investments (Available-for-sale securities, in thousands) | Category | July 31, 2025 (Estimated fair value) | January 31, 2025 (Estimated fair value) | | :-------------------------- | :----------------------------------- | :------------------------------------ | | Certificates of deposit | $20,103 | $64,093 | | Asset-backed securities | $401,501 | $530,011 | | Commercial paper | $23,835 | $74,575 | | Corporate notes and bonds | $2,675,213 | $2,206,956 | | Foreign government bonds | $214,017 | $176,103 | | Municipal securities | $61,739 | $67,831 | | U.S. agency obligations | $13,413 | $24,709 | | U.S. treasury securities | $1,063,461 | $887,164 | | **Total** | **$4,473,282** | **$4,031,442** | Short-Term Investments by Contractual Maturity (in thousands) | Maturity | July 31, 2025 | January 31, 2025 | | :------------------- | :------------ | :--------------- | | Due in one year or less | $930,144 | $1,066,558 | | Due in greater than one year | $3,543,138 | $2,964,884 | | **Total** | **$4,473,282**| **$4,031,442** | [Note 3. Deferred Costs](index=10&type=section&id=Note%203.%20Deferred%20Costs) Explains the nature and amortization of deferred costs, primarily sales commissions - Deferred costs, primarily deferred sales commissions, remained **stable at $26 million** as of July 31, 2025, and January 31, 2025[36](index=36&type=chunk) Amortization Expense for Deferred Costs (in thousands) | Period | Amortization Expense | | :--------------------------------- | :------------------- | | Three months ended July 31, 2025 | $4,000 | | Three months ended July 31, 2024 | $4,000 | | Six months ended July 31, 2025 | $8,000 | | Six months ended July 31, 2024 | $8

Core Insights - Veeva Systems has announced a collaboration with Amgen to enhance clinical trial innovation, utilizing the Veeva Clinical Platform to improve efficiencies in the clinical trial process [1][2][3] Group 1: Collaboration Details - Amgen aims to leverage advanced technology through this collaboration to enhance its end-to-end trial operations, which is expected to expedite the delivery of innovative treatments to patients [2] - The Veeva Clinical Platform will serve as the backbone for standardized and connected processes, facilitating faster delivery of life-saving drugs [3] Group 2: Veeva Clinical Platform Overview - The Veeva Clinical Platform is a comprehensive and connected solution that encompasses various clinical operations and data applications, including CTMS, EDC, clinical workbench, RTSM, eCOA, eTMF, and more [4] - This platform is designed to streamline clinical trials from initiation to completion, automating data flow and enhancing operational efficiency [4] Group 3: Company Background - Veeva Systems provides industry-specific cloud solutions for life sciences, serving over 1,500 customers, including major biopharmaceutical companies and emerging biotech firms [5] - The company is committed to innovation, product excellence, and balancing the interests of all stakeholders, including customers, employees, and shareholders [5]

Financial Data and Key Metrics Changes - Total revenue for the quarter was $789 million, with non-GAAP operating income of $353 million, exceeding guidance [7] - The company raised its full-year billings guidance by $35 million, aligning with the revenue increase [16] Business Line Data and Key Metrics Changes - R&D subscriptions and services showed larger upside compared to previous models, indicating strong performance in this segment [20] - Commercial subscriptions remained flat quarter-over-quarter, with Crossix highlighted as a strong performer [72] Market Data and Key Metrics Changes - The resolution of the lawsuit with IQVIA is expected to unlock significant opportunities in the commercial area, enhancing product offerings and customer satisfaction [11][14] - The company has nine top 20 customers committed to Vault CRM, compared to three for Salesforce, indicating a strong competitive position [51] Company Strategy and Development Direction - The company is focusing on Veeva AI as a transformative element for both Veeva and the industry, with plans to monetize AI through industry-specific agents [7][27] - The resolution with IQVIA allows for greater integration of data into Veeva's products, enhancing the overall commercial suite [71] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving the $6 billion revenue target over the next five years, with no material changes expected in the quality segment [22] - The macro environment remains stable, with customers effectively navigating uncertainty and continuing to build pipelines [121] Other Important Information - The company is working on a platform-first approach for horizontal software, with CRM as the first application to be developed [63] - The integration of AI into the Vault platform is expected to create significant value for the industry over time, although material revenue contributions are not anticipated until 2026 or 2027 [29][30] Q&A Session Summary Question: Resolution of the lawsuit with IQVIA - Management noted that the resolution was due to changes in the industry and a mutual understanding that collaboration would benefit customers [11] Question: Confidence in billings guidance - Management indicated that annual billings are a better indicator of performance, and they are pleased with the increase in guidance [16] Question: Evolution of quality cloud - Management confirmed that quality cloud is receiving elevated focus and is expected to be a significant area of growth [20] Question: AI opportunities - Management discussed the potential for AI to enhance productivity and efficiency across various applications, with a focus on deep industry-specific agents [27][46] Question: Customer reaction to IQVIA resolution - Customer feedback has been overwhelmingly positive, with many exploring new possibilities for integration [34] Question: R&D subscription growth - Management attributed the growth to broad-based execution and a stable environment [40] Question: Resistance to change in Compass product suite - Management acknowledged some resistance but expressed confidence in overcoming these challenges as customers adapt [116]