Veeva(US:VEEV)2025-11-20 21:04Financial 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]