01—Abstract
Summary
Summary of the 10-K filed March 24, 2025. Cited figures are marked; the original filing is the authoritative source.
Veeva Systems Inc. reported total revenues of $2,746.6 milliona for the fiscal year ended January 31, 2025, up from $2,363.7 million, with subscription services revenues of $2,284.7 million (up 20%) making up 83% of total revenues.
Operating income rose to $691.4 millionb from $429.3 million, and net income increased to $714.1 million from $525.7 million. GAAP diluted EPS was $4.32 versus $3.22 in the prior year, while non-GAAP diluted EPS was $6.60 versus $4.84. Stock-based compensation was $437.4 million, and the company ended the year with $5.2 billion in cash, cash equivalents and short-term investments.
Growth was driven by R&D Solutions subscription revenue, which rose $274 millionc, and Commercial Solutions subscription revenue, which rose $109 million. Gross margin improved to 75% from 71%. Operating expenses are expected to increase in the near term, primarily from employee compensation, and the CEO's June 2024 option grant (about $172 million grant-date fair value) will add stock-based compensation expense.
The filing highlights concentration and transition risks. The top 10 customers accounted for 28%d of total revenues.
Veeva is migrating Veeva CRM customers from the Salesforce platform to its own Vault CRM, and it does not intend to renew the Salesforce agreement, which expires September 1, 2025. IQVIA's trade secret claims against Veeva remain pending, and Veeva's counterclaims seek over $200 million in antitrust damages, with no ruling yet on cross-motions for summary judgment.
02—Key points
Key Highlights
- Total revenues rose 16% to $2,746.6 million, with subscription services revenues up 20% to $2,284.7 million and making up 83% of total revenues.
- Operating income increased to $691.4 million from $429.3 million, and gross margin rose to 75% from 71%.
- Net income was $714.1 million, and GAAP diluted EPS was $4.32 versus $3.22; non-GAAP diluted EPS was $6.60 versus $4.84.
- Cash, cash equivalents and short-term investments totaled $5.2 billion at January 31, 2025, and net cash from operating activities was $1,090.1 million.
- Top 10 customers accounted for 28% of total revenues, and the company served 1,477 customers as of January 31, 2025.
- Veeva is migrating Veeva CRM customers from the Salesforce platform to Vault CRM and does not intend to renew the Salesforce agreement, which expires September 1, 2025.
- The IQVIA litigation remains unresolved: trade secret claims are pending, cross-motions for summary judgment were argued in January 2025 with no ruling yet, and Veeva's antitrust counterclaims seek over $200 million.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2025, Veeva Systems kept $0.26.
- Revenue$2.75B100.0%
- Cost of revenue−$699.6M25.5%
- Gross profit$2.05B74.5%
- Operating costs−$1.36B49.4%
- Operating income$691.4M25.2%
- Interest, other & tax$22.7M0.8%
- Net income$714.1M26.0%
Where FY2025 revenue went
$2.75B- Cost of revenue: $699.6M, 25% of revenue
- R&D: $693.1M, 25% of revenue
- Operating income: $691.4M, 25% of revenue
- Other operating costs: $662.5M, 24% of revenue
Kept 25% as operating income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2025filed March 24, 2025Financial Statements
FY2025 against FY2024
| Line item | FY2025FY2024 | Change |
|---|---|---|
| Revenue | $2.75B$2.36B | +16.2% |
| Cost of Revenue | $699.64M$677.29M | +3.3% |
| Gross Profit | $2.05B$1.69B | +21.4% |
| R&D Expenses | $693.08M$629.03M | +10.2% |
| Operating Expenses | $1.36B$1.26B | +7.8% |
| Operating Income | $691.43M$429.33M | +61.0% |
| Net Income | $714.14M$525.71M | +35.8% |
| EPS (Basic) | $4.41$3.27 | +34.9% |
| EPS (Diluted) | $4.32$3.22 | +34.2% |
| Shares Outstanding (Basic) | 161.88M160.53M | +0.8% |
| Shares Outstanding (Diluted) | 165.23M163.49M | +1.1% |
05—Questions
Frequently Asked Questions
How did Veeva's revenue and profitability perform in fiscal 2025?
Total revenues were $2,746.6 million, up from $2,363.7 million. Operating income increased to $691.4 million from $429.3 million, and net income rose to $714.1 million from $525.7 million. Gross profit was $2,047.0 million, and gross margin improved to 75% from 71%.
What is driving revenue growth?
Subscription services revenue grew $383 million in total revenues, with R&D Solutions contributing $274 million of subscription growth, primarily from expanding use of Veeva Development Cloud products, and Commercial Solutions contributing $109 million, primarily from Veeva Commercial Cloud expansion and, to a lesser extent, annual inflation adjustments.
What are the main risks related to customer concentration and the CRM transition?
The top 10 customers accounted for 28% of total revenues. Veeva is migrating Veeva CRM customers to Vault CRM, and some customers have chosen competitors, including Salesforce. The filing says the Salesforce agreement expires September 1, 2025, with a wind-down period through September 1, 2030, and that the migration could cause disruptions or customer losses.
What is the status of the IQVIA litigation?
IQVIA has pursued trade secret misappropriation claims against Veeva since 2017. Cross-motions for summary judgment on the trade secret claims were argued on January 21 and January 28, 2025, and no ruling had been issued. Veeva's counterclaims allege antitrust violations and seek injunctive relief and monetary damages exceeding $200 million. The company says it has substantial defenses and cannot estimate the outcome, and no liability has been accrued.
What is the expected outlook for expenses and capital allocation?
The company expects operating expenses, cost of subscription services, and research and development expenses to increase in the near term, mainly from employee compensation and hosting fees. General and administrative expenses are expected to rise due to stock-based compensation tied to the June 2024 CEO equity grant. Veeva held $5.2 billion in cash and short-term investments and stated that these resources should meet working capital and capital expenditure needs for at least the next 12 months. It repurchased no shares during the fourth quarter, and it has never paid cash dividends.
06—Continue