Veeva (VEEV) Reports Q3 Earnings: What Key Metrics Have to Say

Core Insights - Veeva Systems reported revenue of $699.21 million for the quarter ended October 2024, reflecting a year-over-year increase of 13.4$1.75, up from $1.34 in the same quarter last year, resulting in an EPS surprise of 10.76$1.58 [1] Financial Performance Metrics - Non-GAAP Gross Margin for Subscription services was 86.2%, exceeding the average estimate of 85.4% [3] - Non-GAAP Gross Margin for Professional Services and other was 33.5%, above the average estimate of 31.6% [3] - Subscription services revenue reached $580.85 million, surpassing the average estimate of$571.44 million, with a year-over-year increase of 17.4% [3] - Professional services and other revenue was $118.36 million, slightly above the average estimate of$113.54 million, showing a year-over-year decline of 2.7% [3] - Veeva R&D Solutions generated $72.50 million in revenue, exceeding the estimate of$68.10 million, with a year-over-year decrease of 1.6% [3] - Subscription services revenue from Veeva R&D Solutions was $302.47 million, surpassing the estimate of$293.50 million, reflecting a year-over-year increase of 24.1% [3] - Subscription services revenue from Veeva Commercial Solutions was $278.38 million, slightly above the estimate of$277.94 million, with a year-over-year increase of 10.8% [3] - Professional services and other revenue from Veeva Commercial Solutions was $45.86 million, exceeding the estimate of$45.12 million, showing a year-over-year decline of 4.3% [3] Stock Performance - Veeva's shares have returned 9.8% over the past month, outperforming the Zacks S&P 500 composite's return of 6.7% [4] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [4]