Veeva announces Fiscal 2024 Second Quarter Results

Total Revenues of $590.2M, up 10% Year Over Year;
Subscription Services Revenues of $470.6M, up 10% Year Over Year

Veeva Systems Inc. (NYSE: VEEV), a leading provider of industry cloud solutions for the global life sciences industry, today announced results for its second quarter ended July 31, 2023.

“We had a great quarter with progress across the board that was particularly significant in CRM and clinical,” said CEO Peter Gassner. “Thanks to our customers for your partnership and to the Veeva team for your continued focus on customer success and product excellence.”

Fiscal 2024 Second Quarter Results:

  • Revenues: Total revenues for the second quarter were $590.2 million, up from $534.2 million one year ago, an increase of 10% year over year. Subscription services revenues for the second quarter were $470.6 million, up from $428.6 million one year ago, an increase of 10% year over year.
  • Operating Income and Non-GAAP Operating Income(1): Second quarter operating income was $104.0 million, compared to $101.1 million one year ago, an increase of 3% year over year. Non-GAAP operating income for the second quarter was $211.9 million, compared to $202.0 million one year ago, an increase of 5% year over year.
  • Net Income and Non-GAAP Net Income(1): Second quarter net income was $111.6 million, compared to $90.6 million one year ago, an increase of 23% year over year. Non-GAAP net income for the second quarter was $198.0 million, compared to $166.2 million one year ago, an increase of 19% year over year.
  • Net Income per Share and Non-GAAP Net Income per Share(1): For the second quarter, fully diluted net income per share was $0.68, compared to $0.56 one year ago, while non-GAAP fully diluted net income per share was $1.21, compared to $1.03 one year ago.
  • Customer Contracting Change: The previously announced customer contracting change that standardized termination for convenience (TFC) rights in our master subscription agreements went into effect on February 1, 2023. This resulted in a change in the timing of revenue for certain customer contracts to which a TFC right was added and reduced revenues, operating income and non-GAAP operating income, and net income and non-GAAP net income in the second quarter.

“In the second quarter, we delivered strong financial performance across the board including results ahead of all guided metrics,” said CFO Brent Bowman. “We are executing well and our proven operating model will continue to drive strong growth and profitability well into the future.”

Recent Highlights:

  • Veeva Announces Vault CRM Milestones — Veeva recently announced the first Vault CRM customer win, less than a year since announcing the migration of its market leading Veeva CRM solution to the Veeva Vault Platform. Vault CRM is now planned for general availability in April 2024 and will be the go-forward product for all new customers at that point. The next generation of CRM for the life sciences industry, Vault CRM will include all the functionality of Veeva CRM and new omnichannel capabilities, including Vault CRM Service Center.
  • Leading in Clinical with Innovation and Product Excellence — Veeva is helping the life sciences industry deliver clinical excellence by connecting sponsors, research sites, and patients. Companies are looking for a unified platform that is tightly integrated across clinical operations and clinical data management to speed clinical execution. Veeva Vault Clinical has more than 500 customers, including 85 that have selected applications from both Veeva Vault Clinical Operations and Veeva Vault Clinical Data Management.

Financial Outlook:

Veeva is providing guidance for its fiscal third quarter ending October 31, 2023 as follows:

  • Total revenues between $614 and $616 million.
  • Non-GAAP operating income between $223 and $225 million(2).
  • Non-GAAP fully diluted net income per share between $1.26 and $1.27(2).

Veeva is providing updated guidance for its fiscal year ending January 31, 2024 as follows:

  • Total revenues between $2,365 and $2,370 million.
  • Non-GAAP operating income of about $820 million(2).
  • Non-GAAP fully diluted net income per share of approximately $4.68(2).

Veeva is reiterating guidance for its fiscal year ending January 31, 2025 for the following metrics:

  • Total revenues of at least $2,800 million.
  • Non-GAAP operating income of at least $1,000 million(2).

Conference Call Information

Prepared remarks and an investor presentation providing additional information and analysis can be found on Veeva’s investor relations website at Veeva will host a Q&A conference call at 2:00 p.m. PT today, August 30, 2023, and a replay of the call will be available on Veeva’s investor relations website.

What:Veeva Systems Fiscal 2024 Second Quarter Results Conference Call
When:Wednesday, August 30, 2023
Time:2:00 p.m. PT (5:00 p.m. ET)
Online Registration:

(1) This press release uses non-GAAP financial metrics that are adjusted for the impact of various GAAP items. See the section titled “Non-GAAP Financial Measures” and the tables entitled “Reconciliation of GAAP to Non-GAAP Financial Measures” below for details.

(2) Veeva is not able, at this time, to provide GAAP targets for operating income and fully diluted net income per share for the third fiscal quarter ending October 31, 2023, the fiscal year ending January 31, 2024, or the fiscal year ending January 31, 2025, because of the difficulty of estimating certain items excluded from non-GAAP operating income and non-GAAP fully diluted net income per share that cannot be reasonably predicted, such as charges related to stock-based compensation expense. The effect of these excluded items may be significant.

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