Veeva(US:VEEV)2023-08-31 16:00Financial Performance - Total revenues for the three months ended July 31, 2023, were $590.2 million, a 10.5% increase from $534.2 million in the same period of 2022[18]. - Subscription services revenue reached $470.6 million, up 9.8% year-over-year from $428.6 million[18]. - Net income for the three months ended July 31, 2023, was $111.6 million, representing a 23.2% increase compared to $90.6 million in the prior year[18]. - Total revenues for the six months ended July 31, 2023, were $1,117 million, representing a year-over-year growth of 7% compared to $1,039 million in 2022[103]. - Subscription services revenues for the same period were $885 million, reflecting a year-over-year growth of 6% from $831 million in 2022[104]. - Net income for the six months ended July 31, 2023, was $243 million, up from $191 million in the same period of 2022[104]. - For the fiscal year ended January 31, 2023, total revenues reached $2,155 million, a 16% increase from $1,851 million in 2022[101]. - Subscription services revenues for the fiscal year ended January 31, 2023, were $1,733 million, marking a 17% growth from $1,484 million in 2022[101]. Expenses and Income - Operating income for the six months ended July 31, 2023, was $165.6 million, down 27.6% from $228.8 million in the same period of 2022[18]. - Research and development expenses increased to $157.2 million for the three months ended July 31, 2023, compared to $134.0 million in the same period of 2022, reflecting a 17.3% increase[18]. - Stock-based compensation expense for the six months ended July 31, 2023, was $195.843 million, an increase from $164.085 million in the prior year, reflecting a rise of 19.4%[21]. - Sales and marketing expenses for the six months ended July 31, 2023, increased by $20 million, driven by a $10 million increase in employee compensation-related costs[144]. - General and administrative expenses for the six months ended July 31, 2023, increased by $19 million, primarily due to a $16 million increase in employee compensation-related costs[148]. Assets and Equity - Total assets as of July 31, 2023, were $5.23 billion, an increase from $4.80 billion as of January 31, 2023[15]. - Total stockholders' equity increased to $4.15 billion as of July 31, 2023, compared to $3.72 billion as of January 31, 2023[15]. - The total additional paid-in capital increased to $1.729123 billion at the end of the period, up from $1.353502 billion a year earlier, representing a growth of 27.8%[21]. - The total number of shares outstanding increased from 154,196,597 to 160,622,618 over the six-month period, reflecting an increase of approximately 4.0%[21]. Cash Flow - Net cash provided by operating activities for the six months ended July 31, 2023, was $770,972, up 34.2% from $574,413 in the same period of 2022[24]. - Net cash used in investing activities was $916 million for the six months ended July 31, 2023, up from $563 million in the same period of 2022, showing a $354 million increase[176]. - As of July 31, 2023, the company had cash, cash equivalents, and short-term investments totaling $3.9 billion, with $69 million held outside the United States[165]. Shareholder Information - The weighted-average shares used to compute diluted net income per share were 163.3 million for the three months ended July 31, 2023, compared to 162.1 million in the prior year[18]. - The basic net income per share for Class A was $0.70 and for Class B was $0.70 for the three months ended July 31, 2023, compared to $0.58 for both classes in the same period of 2022, indicating a 20.7% increase[74]. - The diluted net income per share for Class A was $0.68 and for Class B was $0.68 for the three months ended July 31, 2023, compared to $0.56 for both classes in the same period of 2022, reflecting a 21.4% increase[74]. Legal Matters - The company is currently involved in litigation with IQVIA, alleging anticompetitive conduct and seeking monetary damages exceeding $200 million[75]. - The company believes that IQVIA's claims lack merit and that its counterclaims warrant injunctive relief and monetary damages[79]. - The trial for the Medidata litigation concluded in favor of the company, with the court granting a motion for judgment as a matter of law[87]. Market and Competition - The company faces significant competition in the cloud-based solutions market, particularly from IQVIA Holdings Inc., which offers a CRM application on the Salesforce platform[209]. - The competitive landscape includes major players such as Oracle, Microsoft, and smaller application providers, with increasing competition expected due to new technologies[211]. - The company announced plans to migrate its multichannel CRM applications from the Salesforce platform to its Veeva Vault platform, which may lead to customer attrition[212]. Future Outlook - The company expects the growth rate of total revenues and subscription services revenues for the fiscal year ending January 31, 2024, to decline compared to the prior fiscal year[101]. - Veeva's revenue growth rates are expected to accelerate in the fiscal year ending January 31, 2025, compared to the prior fiscal year[203].