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VEEV · Veeva Systems

39 filings

10-Q

VEEV 10-Q Quarterly Reports

Veeva Systems - 39 quarterly reports

Filing record · 2016–202610-K1110-Q328-K94

2027-Q2
Veeva Systems Quarterly Report for Q2 Ended Jul 31, 2026
Veeva Systems Inc. reported results for the three and six months ended July 31, 2026. Total revenues were $927.96 million for the quarter, up from $789.08 million, and $1.81 billion for the six months, up from $1.55 billion. Subscription revenue was $766.76 million for the quarter, and gross margin was 75%. Operating income rose to $275.02 million for the quarter from $195.91 million, and net income was $273.43 million, or $1.66 per diluted share, compared with $200.31 million, or $1.19 per diluted share, a year earlier. The filing attributes the quarterly increase in general and administrative expense comparisons partly to $31 million of litigation settlement-related charges recorded in the prior-year quarter, which did not recur. Cash flow and capital return were strong. Net cash provided by operating activities was $1.37 billion for the six months, compared with $1.12 billion a year earlier, and the company attributed the increase to higher sales and collections and lower income tax payments under the One Big Beautiful Bill Act. Cash, cash equivalents, and short-term investments totaled $7.2 billion as of July 31, 2026. During the six months, Veeva repurchased and retired 2,663,443 shares for about $467 million, leaving $1.4 billion available under its $2 billion program. The company also acquired Rise Healthcare Tech, Inc. (Ostro) in March 2026 for $90 million in total consideration, or $70 million net of cash acquired. The filing also highlights risks tied to the company's CRM transition. Veeva is migrating customers from its Salesforce-based Veeva CRM to Vault CRM, and the filing states that some customers have chosen, or may choose, to move to Salesforce. The Salesforce agreement expired on September 1, 2025, and a wind-down period runs through September 1, 2030. The company reported that its effective tax rate fell to 21.8% for the quarter from 24.5%, mainly due to a larger foreign-derived deduction eligible income deduction.
Aug 27, 2026
2027-Q1
Veeva Systems Quarterly Report for Q1 Ended Apr 30, 2026
Veeva Systems Inc. reported its first-quarter fiscal 2027 results (three months ended April 30, 2026) with total revenues of $882.9 million, up from $759.0 million a year earlier, and subscription revenues of $730.2 million, up from $634.8 million. Operating income rose to $273.1 million from $233.7 million, and net income was $260.9 million compared with $228.2 million. Diluted net income per share was $1.57, versus $1.37 in the prior-year quarter. On a non-GAAP basis, operating income was $395.4 million and diluted non-GAAP EPS was $2.24, compared with $1.97 a year earlier. Cash flow from operations was $1,127.1 million, compared with $877.2 million in the prior-year quarter, and the company cited increased sales and collections along with the One Big Beautiful Bill Act. Cash, cash equivalents and short-term investments totaled $7.3 billion at quarter end. During the quarter, Veeva repurchased 1,255,029 shares for about $221 million under a $2 billion authorization approved in January 2026, leaving $1.6 billion available. The company also acquired Rise Healthcare Tech, Inc. (Ostro) on March 9, 2026, for $90 million in total consideration ($70 million net of cash acquired). The filing highlights several risks, including customer migration from Veeva CRM on Salesforce to Vault CRM, competition from Salesforce, concentration among key customers (top 10 customers accounted for 28% of fiscal 2026 revenues), and ongoing regulatory and data privacy exposure. Management also disclosed that it transitioned long-term employee equity grants from stock options to restricted stock units in April 2026.
Jun 5, 2026
2026-Q3
Veeva Systems Quarterly Report for Q3 Ended Oct 31, 2025
Veeva Systems Inc. reported results for its third quarter of fiscal 2026, the three and nine months ended October 31, 2025. Total revenues for the quarter were $811.2 million, up from $699.2 million a year earlier, and subscription services revenues were $682.5 million compared with $580.9 million. For the nine months, total revenues were $2.36 billion versus $2.03 billion. Operating income for the quarter was $240.9 million, compared with $181.4 million, and net income was $236.2 million, or $1.40 per diluted share, versus $185.8 million and $1.13 per diluted share a year earlier. Net cash provided by operating activities for the nine months was $1.31 billion, compared with $1.02 billion, which the company attributes to higher sales and cash collections and the impact of the One Big Beautiful Bill Act (OBBBA). The balance sheet strengthened over the period. Cash, cash equivalents, and short-term investments totaled $6.6 billion as of October 31, 2025, and deferred revenue declined to $822.5 million from $1.27 billion at January 31, 2025, consistent with the company's seasonality, as the first fiscal quarter is typically its strongest for collections. Stockholders' equity rose to $7.04 billion. The company settled all ongoing litigation with IQVIA on August 13, 2025, with neither party paying damages. Litigation settlement-related charges totaled $30.6 million for the nine months. The filing highlights risks tied to the migration of Veeva CRM customers to Vault CRM. The Salesforce agreement expired September 1, 2025, and a wind-down period runs through September 1, 2030, during which Veeva may not sell Salesforce-platform applications to new customers. Management also notes competitive pressure from Salesforce in CRM and rising costs for data and computing infrastructure in subscription services.
Nov 21, 2025
2026-Q2
Veeva Systems Quarterly Report for Q2 Ended Jul 31, 2025
Veeva Systems Inc. reported results for the three and six months ended July 31, 2025 in this Form 10-Q. Total revenues were $789.1 million for the quarter, up from $676.2 million, with subscription services revenue of $659.2 million (up from $561.3 million). Operating income was $195.9 million versus $166.5 million a year earlier, and net income was $200.3 million, or $1.19 diluted per share, compared with $171.0 million, or $1.04 per share. For the six months, total revenues were $1.55 billion and net income was $428.5 million. Non-GAAP operating income for the quarter was $352.6 million, according to the non-GAAP reconciliation in the filing. Cash, cash equivalents and short-term investments totaled $6.4 billion as of July 31, 2025, and net cash provided by operating activities was $1.12 billion for the six months. Accounts receivable fell to $422.1 million from $1,016.4 million at January 31, 2025, reflecting seasonal collections, and deferred revenue declined to $1.11 billion from $1.27 billion. The filing notes that the first fiscal quarter is seasonally the strongest for cash inflows. The effective tax rate rose to 24.5% for the quarter, which the company attributes mainly to indirect effects of the One Big Beautiful Bill Act (OBBBA). The most notable event disclosed is a settlement agreement, dated August 13, 2025, that resolves all ongoing litigation between Veeva and IQVIA, with neither party paying damages. As of July 31, 2025, the company had accrued approximately $31 million in success fees owed to law firms under the litigation fee arrangements, and general and administrative expenses for the quarter included $30.6 million in litigation settlement-related charges. The filing also discloses the planned wind-down of the Salesforce platform used for Veeva CRM, with Vault CRM migration underway and Salesforce support ending September 1, 2030, as well as continued risk of customer concentration, with the top 10 customers accounting for 28% of total revenues in fiscal 2025.
Aug 29, 2025
2026-Q1
Veeva Systems Quarterly Report for Q1 Ended Apr 30, 2025
Veeva Systems Inc. reported results for the three months ended April 30, 2025, its first fiscal quarter of fiscal 2026. Total revenues were $759.0 million, up from $650.3 million a year earlier (about 17%, as stated in the filing), driven by subscription services revenue of $634.8 million, up from $534.0 million. Operating income rose to $233.7 million from $155.2 million, and net income was $228.2 million, or $1.37 per diluted share, compared with $161.7 million, or $0.98 per diluted share, in the prior-year quarter. Non-GAAP diluted net income per share was $1.97, versus $1.50 a year earlier. Net cash provided by operating activities was $877.2 million, and cash, cash equivalents and short-term investments totaled $6.1 billion as of April 30, 2025. The company continues its migration of Veeva CRM customers to Vault CRM. The filing states that Veeva does not intend to renew its Salesforce platform agreement, which expires September 1, 2025, followed by a wind-down period through September 1, 2030. The filing also describes ongoing IQVIA litigation, with cross motions for summary judgment on IQVIA's trade secret claims pending and no ruling issued. On May 30, 2025, the company entered into a confidential settlement agreement with IQVIA in the separate California non-compete matter. The filing notes that the company expects operating expenses, cost of subscription services and research and development expenses to increase in the near term, primarily due to employee compensation-related costs and hosting fees. The company also flags that the Tax Cuts and Jobs Act requirement to capitalize research and development expenditures is expected to reduce cash flows from operating activities in the fiscal year ending January 31, 2026.
Jun 2, 2025
2025-Q3
Veeva Systems Quarterly Report for Q3 Ended Oct 31, 2024
Veeva Systems Inc. filed this Form 10-Q for the quarter ended October 31, 2024. For the three months ended October 31, 2024, total revenues were $699.2 million, up from $616.5 million, driven by subscription services revenue of $580.9 million (versus $494.9 million). Operating income was $181.4 million compared with $128.5 million a year earlier, and net income was $185.8 million, or $1.13 per diluted share, versus $135.2 million, or $0.83 per diluted share. For the nine months ended October 31, 2024, total revenues were $2.03 billion, net income was $518.5 million, and net cash provided by operating activities was $1.02 billion. As of October 31, 2024, cash, cash equivalents and short-term investments totaled $5.1 billion, and total stockholders' equity was $5.50 billion. Deferred revenue declined to $739.7 million from $1.05 billion at January 31, 2024, which the company attributes partly to the seasonality of annual billings. Management expects operating cash flow in the fourth quarter to be substantially lower and says cash tax payments tied to research and development expenditure capitalization will reduce operating cash flows in the fiscal year ending January 31, 2025. The filing also details ongoing litigation with IQVIA, including trade secret claims and Veeva's antitrust counterclaims seeking damages exceeding $200 million. The company states it cannot estimate the outcome, and it expects the trial originally scheduled for February 10, 2025 not to begin on that date. A separate California non-compete matter has a trial date of June 16, 2025.
Dec 9, 2024
2025-Q2
Veeva Systems Quarterly Report for Q2 Ended Jul 31, 2024
Veeva Systems Inc.'s Form 10-Q for the quarter ended July 31, 2024 reports total revenues of $676.2 million for the three months ended July 31, 2024, up from $590.2 million a year earlier, driven by subscription services revenue of $561.3 million versus $470.6 million. Professional services and other revenues were $114.9 million, compared with $119.6 million. Operating income rose to $166.5 million from $104.0 million, and net income was $171.0 million, or $1.04 per diluted share, compared with $111.6 million, or $0.68 per diluted share, in the prior-year quarter. For the six months, total revenues were $1.33 billion and net income was $332.7 million. The balance sheet shows cash, cash equivalents and short-term investments totaling $4.9 billion as of July 31, 2024, against deferred revenue of $956.4 million. Net cash provided by operating activities was $856.4 million for the six months, versus $771.0 million a year earlier. The company states that its operating cash flows in the remainder of the fiscal year will be substantially lower than in the first half, and that tax payments related to the Tax Cuts and Jobs Act will reduce operating cash flow in fiscal 2025. Management expects revenue growth to accelerate in fiscal 2025 and expects operating expenses, cost of subscription services, and general and administrative expenses to increase, in part due to the CEO equity grant. The filing describes ongoing litigation with IQVIA, including IQVIA's trade secret claims, for which trial is expected to begin on February 10, 2025, and Veeva's antitrust counterclaims, for which no trial date has been set. The company reports that it could not make a meaningful estimate of the potential gain or loss from these matters. The filing also discloses a May 30, 2024 settlement with Mednet Solutions, Inc., and the planned migration of Veeva CRM customers from the Salesforce platform to Vault CRM.
Sep 4, 2024
2025-Q1
Veeva Systems Quarterly Report for Q1 Ended Apr 30, 2024
Veeva Systems Inc. reported results for the three months ended April 30, 2024 in its Form 10-Q. Total revenues were $650.3 million, up from $526.3 million a year earlier, with subscription services revenue of $534.0 million (up from $414.5 million) and professional services and other revenue of $116.4 million (up from $111.8 million). Gross profit was $476.5 million and operating income was $155.2 million, compared with $61.5 million in the prior-year period. Net income was $161.7 million, or $0.98 per diluted share, versus $131.5 million, or $0.81 per diluted share, a year earlier. Net cash provided by operating activities was $763.5 million, and cash, cash equivalents and short-term investments totaled $4.8 billion as of April 30, 2024. The filing states that the company expects revenue growth to accelerate in the fiscal year ending January 31, 2025, in part due to a contracting change in multi-year orders that reduced revenue in the prior fiscal year. It also expects cost of subscription services, research and development, and sales and marketing expenses to increase in that fiscal year, primarily from employee compensation costs. The company notes that operating cash flow in this quarter represents a significant portion of expected fiscal-year operating cash flow, and that cash taxes related to the Tax Cuts and Jobs Act are expected to reduce operating cash flow in fiscal 2025. The filing describes ongoing litigation with IQVIA, including trade secret claims set for trial beginning February 10, 2025, and Veeva's antitrust counterclaims, for which no trial date has been set. The company also reached a settlement with Mednet Solutions on May 30, 2024, which will result in dismissal of that case with prejudice. The company states it is unable to make a meaningful estimate of the amount or range of loss from the IQVIA matters.
Jun 4, 2024
2024-Q3
Veeva Systems Quarterly Report for Q3 Ended Oct 31, 2023
Veeva Systems Inc. filed this Form 10-Q for the quarter ended October 31, 2023. For the three months ended October 31, 2023, total revenues were $616.5 million, up from $552.4 million, with subscription services revenues of $494.9 million and professional services and other revenues of $121.6 million. Operating income was $128.5 million versus $121.4 million a year earlier, and net income was $135.2 million, or $0.83 per diluted share, compared with $108.5 million and $0.67 per diluted share. For the nine months, total revenues were $1.73 billion and net income was $378.3 million. Cash, cash equivalents and short-term investments totaled $3.9 billion as of October 31, 2023, and net cash provided by operating activities was $853.6 million for the nine months. The filing states that the company expects its total revenue and subscription services revenue growth rates to decline in the fiscal year ending January 31, 2024, because of a change to master subscription agreements for multi-year orders that added termination-for-convenience rights effective February 1, 2023. Management also expects operating margin to decrease in that fiscal year, citing higher operating expenses from headcount growth and the reduction in revenue from the contracting change. Other income, net, is expected to keep rising on higher interest rates, and cash flows from operations are expected to be reduced by approximately $90 million due to R&D capitalization requirements under the Tax Cuts and Jobs Act. The filing also details significant litigation, including the IQVIA antitrust and trade secret matters and the Medidata appeal, with oral argument on the Medidata appeal set for January 11, 2024. Management states it cannot estimate the amount or range of loss in these matters. The company also disclosed plans to migrate its CRM applications from the Salesforce platform to its Veeva Vault platform and not to renew the Salesforce agreement when it expires on September 1, 2025.
Dec 7, 2023
2024-Q2
Veeva Systems Quarterly Report for Q2 Ended Jul 31, 2023
Veeva Systems Inc.'s Form 10-Q for the quarter ended July 31, 2023 reports total revenues of $590.2 million for the three months, up from $534.2 million, and $1,116.6 million for the six months, up from $1,039.3 million. Subscription services revenues were $470.6 million for the quarter, and net income was $111.6 million, or $0.68 per diluted share, compared with $90.6 million, or $0.56, a year earlier. Operating income for the quarter was $104.0 million, roughly flat against $101.1 million, as operating expenses grew faster than gross profit, while other income, net rose to $38.8 million from $8.4 million on higher interest income. Net cash provided by operating activities was $771.0 million for the six months, and cash, cash equivalents and short-term investments totaled $3.9 billion at quarter end. The filing states that the addition of termination-for-convenience rights to multi-year master subscription agreements, effective February 1, 2023, will reduce revenue for the fiscal year ending January 31, 2024, and that subscription revenue growth is expected to decline in that year before accelerating in fiscal 2025. Management expects operating expenses, stock-based compensation and operating margin to increase or decrease accordingly in fiscal 2024, and expects cash flows from operations to be reduced by approximately $90 million due to R&D capitalization tax rules. The company also disclosed plans to migrate its CRM applications from the Salesforce platform to its Veeva Vault platform, with the Salesforce agreement not being renewed when its current term expires on September 1, 2025. The filing describes ongoing litigation with IQVIA (trade secret, antitrust and counterclaims, with counterclaims seeking monetary damages exceeding $200 million) and Medidata (appeal pending), and a Mednet case with trial set for early 2024. Management states it is unable to make a meaningful estimate of potential losses in the IQVIA and Medidata matters. Class B common stock is scheduled to automatically convert to Class A on October 15, 2023.
Sep 1, 2023
2024-Q1
Veeva Systems Quarterly Report for Q1 Ended Apr 30, 2023
Veeva Systems Inc. reported results for the three months ended April 30, 2023 in its Form 10-Q. Total revenues were $526.3 million, up from $505.1 million a year earlier, with subscription services revenue of $414.5 million and professional services and other revenue of $111.8 million. Operating income fell to $61.5 million from $127.7 million, as research and development expenses rose to $147.0 million from $113.5 million and total operating expenses reached $298.1 million. Net income increased to $131.5 million, or $0.81 diluted per share, from $100.1 million, $0.62 per share a year earlier. The increase was aided by a $39.7 million income tax benefit tied to excess tax benefits from equity compensation, primarily from the Chief Executive Officer's stock option exercises, and by other income of $30.2 million, mostly interest income. The filing reports net income of $147.9 million on a non-GAAP basis, versus $159.8 million a year earlier. The balance sheet remained strong, with cash, cash equivalents and short-term investments totaling $3.6 billion as of April 30, 2023, and total stockholders' equity of $3.94 billion. Net cash provided by operating activities was $505.9 million. Management expects operating cash flow to be substantially lower in the remaining quarters of fiscal 2024 and to be reduced by about $90 million for the year due to tax payments under the Tax Cuts and Jobs Act. The company also expects revenue growth to decline in fiscal 2024, reflecting a February 1, 2023 contracting change that added termination-for-convenience rights to multi-year subscription agreements, and it expects operating margin to decrease as operating expenses rise. The filing also highlights significant risks. Veeva is pursuing litigation against IQVIA and Medidata, and it plans to migrate its CRM applications from the Salesforce platform to its own Veeva Vault platform, with the Salesforce agreement not renewed after September 1, 2025. Class B common stock, which carries ten votes per share, is set to convert automatically on October 15, 2023, and the dual-class structure gives the CEO and Class B holders majority voting control until then.
Jun 2, 2023
2023-Q3
Veeva Systems Quarterly Report for Q3 Ended Oct 31, 2022
Veeva Systems Inc. filed this Form 10-Q for the quarter ended October 31, 2022. For the three months ended October 31, 2022, total revenues were $552.4 million, up from $476.1 million, and net income was $108.5 million versus $105.9 million a year earlier. For the nine months, total revenues were $1.59 billion (versus $1.37 billion) and net income was $299.2 million (versus $330.3 million). Operating income for the nine months declined to $350.2 million from $385.8 million, as operating expenses grew faster than gross profit, with research and development up 36% and sales and marketing up 24%. Diluted EPS for the nine months was $1.84, compared with $2.03. Cash, cash equivalents and short-term investments totaled $3.0 billion as of October 31, 2022. Net cash provided by operating activities was $717.1 million for the nine months, compared with $710.4 million a year earlier, and the company noted that the Tax Cuts and Jobs Act capitalization requirement reduced operating cash flow. Management said it expects year-over-year revenue growth to be negatively affected by foreign currency movements and macroeconomic factors, including lower funding levels among life sciences customers and heightened budgetary scrutiny. It also disclosed planned changes effective February 1, 2023, including termination-for-convenience rights for multi-year orders and an annual price inflation adjustment, which it expects to reduce revenue in the fiscal year ending January 31, 2024. The filing also describes significant litigation with IQVIA and Medidata, a planned migration of CRM applications from the Salesforce Platform to Veeva Vault Platform, and a dual-class share structure in which Class B holders control a majority of voting power until October 15, 2023.
Dec 7, 2022
2023-Q2
Veeva Systems Quarterly Report for Q2 Ended Jul 31, 2022
Veeva Systems Inc. reported results for the fiscal quarter ended July 31, 2022 in this Form 10-Q. Total revenues were $534.2 million for the three months, up from $455.6 million, with subscription services revenues of $428.6 million and professional services and other revenues of $105.6 million. Operating income was $101.1 million compared with $124.6 million a year earlier, and net income was $90.6 million versus $108.9 million, with diluted EPS of $0.56 against $0.67. For the six months, total revenues were $1.04 billion and net income was $190.7 million. Operating cash flow was $93.4 million for the quarter and $574.4 million for the six months, which management attributed to higher headcount-driven operating expenses and a tax-law requirement to capitalize research and development expenditures. The balance sheet shows cash, cash equivalents and short-term investments totaling $2.9 billion as of July 31, 2022. Deferred revenue declined to $684.6 million from $731.7 million at January 31, 2022. Remaining performance obligations for subscription contracts were approximately $1,348 million, with about 76% expected to be recognized over the next 12 months. Research and development expense rose 41% for the quarter and sales and marketing rose 25%, reflecting headcount growth and compensation increases. Management expects operating expenses to keep growing in absolute dollars and states that growth rates of total and subscription revenues are expected to decline. Litigation remains significant. The company's trade secret and antitrust disputes with IQVIA are ongoing, with expert discovery expected to be completed in early 2023, and no estimate of the outcome is provided. In the Medidata matter, the court granted Veeva's motion for judgment as a matter of law on July 15, 2022, and denied Medidata's reconsideration request on August 18, 2022. The filing also notes that dual-class voting control, held largely by founder and CEO Peter Gassner, lasts until October 15, 2023.
Sep 2, 2022
2023-Q1
Veeva Systems Quarterly Report for Q1 Ended Apr 30, 2022
Veeva Systems Inc. (Form 10-Q for the quarter ended April 30, 2022, filed June 3, 2022) reported total revenues of $505.1 million for the three months ended April 30, 2022, up from $433.6 million a year earlier, with subscription services revenues of $402.6 million versus $341.1 million. Operating income was $127.7 million compared with $128.5 million in the prior-year quarter, and net income was $100.1 million versus $115.6 million. The decline in net income reflected a higher provision for income taxes ($30.3 million versus $17.4 million, with an effective tax rate of 23.2% versus 13.1%), which the company attributed mainly to a reduction in excess tax benefits from equity compensation. Research and development expense rose 36% to $113.5 million, and stock-based compensation increased to $67.1 million from $48.5 million. Cash flow and liquidity remained strong: net cash provided by operating activities was $481.0 million, and cash, cash equivalents and short-term investments totaled $2.8 billion as of April 30, 2022. Deferred revenue was $723.7 million, and remaining performance obligations for subscription contracts were approximately $1,493 million, about 77% of which the company expects to recognize over the next 12 months. The filing states that management expects cash flows from operations to be substantially lower in subsequent quarters of fiscal 2023, and that the Tax Cuts and Jobs Act's R&D capitalization requirement would materially reduce cash flows beginning in the second quarter of fiscal 2023 if not modified. The filing also details ongoing litigation with IQVIA and Medidata, including IQVIA counterclaims seeking monetary damages exceeding $200 million, and notes that the company expects life sciences customers to reduce sales representatives by roughly 10%, with most reductions expected in fiscal 2023. Management stated it expects revenue growth rates to decline in future periods.
Jun 3, 2022
2022-Q3
Veeva Systems Quarterly Report for Q3 Ended Oct 31, 2021
Veeva Systems Inc. reported results for its third fiscal quarter ended October 31, 2021 (Form 10-Q filed December 3, 2021). Total revenues for the three months rose to $476.1 million from $377.5 million, and subscription services revenues were $380.7 million versus $302.9 million. Operating income was $132.7 million compared with $101.3 million, and net income was $105.9 million versus $96.9 million. For the nine months, total revenues were $1.37 billion (up from $1.07 billion) and net income was $330.3 million. Diluted EPS for the quarter was $0.65 and GAAP operating income was $385.8 million for the nine months. Balance sheet and cash flow remained strong. Cash, cash equivalents and short-term investments totaled $2.4 billion at October 31, 2021, and net cash provided by operating activities was $710.4 million for the nine months. Deferred revenue declined to $417.8 million from $617.0 million at January 31, 2021, reflecting the seasonal billing pattern the filing describes. Subscription services revenue retention for fiscal 2021 was 124%, and the company stated it expects operating cash flows to be substantially lower in the remaining quarters of fiscal 2022. The filing also highlights ongoing risk. Veeva remains in litigation with IQVIA and Medidata, with IQVIA counterclaims seeking more than $200 million in damages, though the company cannot estimate the outcome. The company converted to a Delaware public benefit corporation on February 1, 2021, and its dual-class structure concentrates voting control until October 15, 2023. The filing also notes the company expects life sciences customers to reduce sales representatives by roughly 10% over the next one to two years, which could pressure certain Commercial Solutions.
Dec 3, 2021
2022-Q2
Veeva Systems Quarterly Report for Q2 Ended Jul 31, 2021
Veeva Systems Inc. filed this Form 10-Q for the quarter ended July 31, 2021. For the three months ended July 31, 2021, total revenues were $455.6 million, up from $353.7 million, with subscription services revenue of $366.4 million and professional services and other revenue of $89.2 million. Operating income was $124.6 million versus $90.1 million a year earlier, and net income was $108.9 million, or $0.67 per diluted share, compared with $93.6 million, or $0.58 per diluted share. For the six months ended July 31, 2021, total revenues were $889.2 million and net income was $224.4 million. Net cash provided by operating activities was $597.5 million for the six months, and cash, cash equivalents and short-term investments totaled $2.3 billion at quarter end. The filing states that the company expects its revenue growth rate to decline over time, that operating expenses and headcount will continue to increase, and that salaries for most employees rose 5% effective September 1, 2021. Veeva became a Delaware public benefit corporation on February 1, 2021. Remaining performance obligations for subscription contracts were approximately $1,197 million, with about 72% expected to be recognized over the next 12 months. The filing describes ongoing litigation with IQVIA and Medidata, in which Veeva is counterclaiming or defending trade secret and antitrust claims, and states that the company cannot estimate the range of possible loss in these matters. A Medidata trial is scheduled for December 6, 2021. The filing also notes concentration risk: the top 10 customers accounted for 36% of fiscal 2021 total revenues, and IQVIA restricts customer use of its data in certain Veeva applications.
Sep 3, 2021
2022-Q1
Veeva Systems Quarterly Report for Q1 Ended Apr 30, 2021
Veeva Systems Inc. reported results for the three months ended April 30, 2021 in its Form 10-Q. Total revenues were $433.6 million, up from $337.1 million in the prior-year quarter, and subscription services revenues were $341.1 million, compared with $270.2 million. Operating income was $128.4 million versus $87.6 million, and net income was $115.6 million versus $86.6 million. Diluted net income per share was $0.71, compared with $0.54. The filing also presents non-GAAP operating income of $181.4 million and non-GAAP diluted EPS of $0.91, compared with $0.66 a year earlier. Cash, cash equivalents and short-term investments totaled $2.2 billion as of April 30, 2021, and net cash provided by operating activities was $478.4 million. The company disclosed that it became a Delaware public benefit corporation on February 1, 2021. Subscription services revenue retention rate for fiscal 2021 was 124%, and approximately $1,244 million of remaining performance obligations for subscription contracts was expected to be recognized, with about 75% over the next 12 months. Veeva's litigation with IQVIA, including counterclaims seeking more than $200 million in damages, continues, and a May 7, 2021 special master ruling recommended a permissive adverse inference instruction to the jury; Veeva is appealing that ruling. The Medidata trade secret case is scheduled for trial on September 20, 2021. Management expects life sciences companies to reduce their sales representatives by roughly 10% over the next one to two years, which could negatively affect Veeva CRM demand. For investors, the quarter shows continued strong growth alongside rising expenses, with research and development up 34% and headcount expanding. Revenue growth is expected to decline over time, and the dual-class structure gives Class B holders 51.7% of voting power as of April 30, 2021.
Jun 4, 2021
2021-Q3
Veeva Systems Quarterly Report for Q3 Ended Oct 31, 2020
Veeva Systems Inc. filed this Form 10-Q for the quarter ended October 31, 2020. Total revenues for the three months ended October 31, 2020 were $377.5 million, up 34% from $280.9 million, with subscription services revenue of $302.9 million. For the nine months, total revenues were $1.07 billion, up 35% from $792.6 million. Operating income was $101.3 million for the quarter versus $80.8 million a year earlier, and net income was $97.0 million, or $0.60 diluted per share. Gross margin for the quarter was 73%, down from 74%, which the company attributes largely to its acquired Crossix and Physicians World businesses. Cash, cash equivalents and short-term investments totaled $1.6 billion, and deferred revenue fell to $331.2 million from $468.9 million at January 31, 2020. The filing states that the company expects revenue growth rates to decline over time and that operating expenses will keep rising as it invests in headcount, R&D and sales capacity. Management notes that on its December 1, 2020 earnings call it expected life sciences companies to reduce sales representatives by roughly 10% over the coming year, which could pressure demand for its Veeva CRM and other Commercial Cloud applications. The company also highlights COVID-19 effects, including virtual-only customer events and a free offering of Veeva CRM Engage Meeting through December 31, 2020, and says a significant proportion of those users are expected to continue on a paid basis. The filing also covers pending legal matters, principally litigation with IQVIA and Medidata over trade secrets and antitrust claims, for which the company says it cannot estimate a loss. A proposal to convert to a Delaware public benefit corporation is scheduled for a stockholder vote on January 13, 2021. Dual-class voting control remains concentrated, with Class B holders at 52.6% of voting power as of October 31, 2020.
Dec 9, 2020
2021-Q2
Veeva Systems Quarterly Report for Q2 Ended Jul 31, 2020
Veeva Systems Inc. reported results for the fiscal 2021 second quarter ended July 31, 2020. Total revenues rose to $353.7 million for the three months (up from $266.9 million) and to $690.8 million for the six months (up from $511.7 million). Subscription services revenues were $283.5 million for the quarter and $553.7 million for the six months. Operating income was $90.1 million for the quarter versus $73.9 million a year earlier, and net income was $93.6 million, or $0.58 per diluted share. Cash, cash equivalents and short-term investments totaled $1.5 billion, and operating cash flow for the six months was $387.5 million. The filing states that Veeva's operations have not been materially negatively affected by COVID-19 to date, but that the future impact is uncertain, and that most customer and industry events have moved to virtual-only formats for the rest of the fiscal year. The company's results were supported by growth in both product lines, with Veeva Vault subscription revenue of $138.7 million in the quarter and Veeva Commercial Cloud subscription revenue of $144.8 million. Gross margin fell to 73% from 74% in the quarter, which the company attributes mainly to its acquired businesses, Crossix and Physicians World, that carry lower margins. Management expects gross margin to decrease for fiscal 2021 for the same reason, and expects operating expenses to keep rising in absolute dollars. The filing also says the company expects its total revenue and subscription revenue growth rates to decline over time. The filing's main risk disclosures cover ongoing litigation with IQVIA and Medidata, a dual-class share structure that gives Class B holders about 52.7% of voting power, and dependence on the salesforce.com agreement, which carries a remaining $99 million minimum purchase commitment due by September 1, 2025. Pending matters are described as lacking a meaningful estimate of potential loss or gain, and the company says it believes IQVIA's claims lack merit.
Sep 8, 2020
2021-Q1
Veeva Systems Quarterly Report for Q1 Ended Apr 30, 2020
Veeva Systems Inc. reported results for the three months ended April 30, 2020 (Q1 of fiscal 2021). Total revenues were $337.1 million, up from $244.8 million, a 38% increase. Subscription services revenues were $270.2 million, up 36%, and made up 80% of total revenues. Operating income was $87.6 million versus $71.2 million, and net income was $86.6 million versus $73.4 million. Diluted EPS was $0.54 compared with $0.47. Gross margin was 72%, down from 73%, which the company attributes largely to lower-margin acquired businesses (Crossix and Physicians World, acquired in November 2019). Stock-based compensation rose to $36.9 million from $20.8 million, reflecting retention awards tied to the acquisitions. Cash, cash equivalents and short-term investments totaled $1.4 billion at April 30, 2020, and operating cash flow was $282.2 million versus $236.3 million. Deferred revenue was $470.3 million, and about $913 million of subscription remaining performance obligations, with roughly 79% expected to be recognized over the next 12 months. The company said the COVID-19 pandemic has shifted most customer and industry events to virtual formats for the rest of fiscal 2021, that employees in most locations are working from home, and that some customers have delayed purchasing decisions. It expects operating expenses and gross margin to be pressured in the near term as it integrates acquired businesses. Litigation remains significant. The company is pursuing antitrust and trade secret claims against IQVIA and defending a trade secret suit brought by Medidata, and the filing states it cannot reasonably estimate the outcome of these matters. The Class B shares hold roughly 53.0% of voting power, with founder and CEO Peter Gassner holding about 46.1%, as disclosed in the risk factors.
Jun 4, 2020
2020-Q3
Veeva Systems Quarterly Report for Q3 Ended Oct 31, 2019
Veeva Systems Inc. filed this Form 10-Q for the quarter ended October 31, 2019. For the three months ended October 31, 2019, total revenues were $280.9 million, up from $224.7 million, and net income was $82.2 million, versus $64.1 million a year earlier. For the nine months, total revenues were $792.6 million (versus $629.9 million) and net income was $234.9 million (versus $158.7 million). Subscription services revenues were $642.2 million for the nine months, and the filing states Veeva Vault subscription revenue grew by $95.7 million over the prior-year period, compared with $42.7 million for Veeva Commercial Cloud. Balance sheet and cash flow highlights: cash, cash equivalents and short-term investments totaled $1.5 billion at October 31, 2019, and net cash provided by operating activities was $398.3 million for the nine months. Deferred revenue declined to $250.7 million from $356.4 million at January 31, 2019, which the company attributes to the timing of renewal billings. Remaining performance obligations for subscription contracts were approximately $567.5 million, with about $418.6 million expected to be recognized over the next 12 months. Subsequent to the quarter, Veeva completed the acquisitions of Crossix Solutions Inc. for $431.8 million in cash and Physicians World LLC for $41.4 million in cash, plus equity retention awards of about $120 million and $15 million, respectively. The filing also discusses ongoing litigation with IQVIA and Medidata, in which Veeva is seeking damages and injunctive relief, and the company's expectation that revenue growth rates will decline over time.
Dec 5, 2019
2020-Q2
Veeva Systems Quarterly Report for Q2 Ended Jul 31, 2019
Veeva Systems Inc. filed this Form 10-Q for the fiscal quarter ended July 31, 2019. Total revenues for the three months ended July 31, 2019 were $266.9 million, up from $209.6 million in the prior-year period, with subscription services revenues of $217.3 million. For the six months, total revenues were $511.7 million versus $405.2 million. Operating income rose to $73.9 million for the quarter from $52.8 million, and net income rose to $79.2 million from $50.3 million. Diluted EPS was $0.50 versus $0.32 a year earlier. The company's effective tax rate fell to 2.4% for the quarter, driven mainly by excess tax benefits related to equity compensation of $17.0 million. Balance sheet strength improved, with cash, cash equivalents and short-term investments totaling $1.4 billion as of July 31, 2019. Net cash provided by operating activities was $100.5 million for the quarter and $336.8 million for the six months. Management noted that operating cash flows are expected to be substantially lower in future quarters of fiscal 2020, and that operating expenses, stock-based compensation and gross margin trends are expected to move as described in the MD&A, including the introduction of a new equity compensation program in the April 2019 quarter. The filing highlights ongoing litigation with IQVIA and Medidata, including a July 2019 lawsuit Veeva filed against IQVIA over Veeva Nitro, and notes that the company expects its revenue growth rate to decline in future periods. Holders of Class B common stock held approximately 55.7% of voting power as of July 31, 2019. The filing also discloses a remaining $179.2 million minimum purchase commitment to salesforce.com due by September 1, 2025.
Sep 5, 2019
2020-Q1
Veeva Systems Quarterly Report for Q1 Ended Apr 30, 2019
Veeva Systems Inc. reported results for the three months ended April 30, 2019 in its Form 10-Q. Total revenues rose to $244.8 million from $195.5 million, a 25% increase, with subscription services revenues of $198.1 million (up 27%) making up 81% of the total. Gross margin improved to 73% from 69%, and operating income rose to $71.2 million from $44.0 million. Net income was $73.4 million, or $0.47 per diluted share, compared with $44.3 million, or $0.29, a year earlier. Net income per diluted share on a non-GAAP basis was $0.50, according to the filing's reconciliation. The balance sheet strengthened over the quarter. Cash, cash equivalents and short-term investments totaled $1.3 billion, and operating cash flow was $236.3 million. Deferred revenue rose to $363.9 million, and the filing states that about $716.4 million of subscription remaining performance obligations are expected to be recognized, of which about $557.2 million falls within the next 12 months. The company said it expects revenue growth to decline in the future and that operating expenses and stock-based compensation will increase, partly due to a new equity compensation program adopted this quarter. The filing also details ongoing litigation. In the IQVIA matter, Veeva's counterclaims seek more than $200 million in damages, and trial could occur in late 2020 or early 2021. The Medidata trade secret case is in discovery. Veeva says it believes IQVIA's and Medidata's claims lack merit and cannot estimate a meaningful loss range. Class B shares, which carry ten votes per share, held about 60.0% of voting power as of April 30, 2019.
Jun 6, 2019
2019-Q3
Veeva Systems Quarterly Report for Q3 Ended Oct 31, 2018
Veeva Systems Inc. reported results for the three and nine months ended October 31, 2018 in this Form 10-Q. Total revenues were $224.7 million for the quarter, up from $177.0 million a year earlier, and $629.9 million for the nine months, up from $504.6 million. Subscription services revenue was $178.2 million for the quarter and $503.8 million for the nine months. Operating income was $63.1 million for the quarter versus $42.5 million in the prior-year period, and net income was $64.1 million versus $34.9 million. Diluted EPS was $0.41 for the quarter and $1.02 for the nine months. Net cash provided by operating activities was $279.0 million for the nine months, and cash, cash equivalents and short-term investments totaled $1.1 billion at October 31, 2018. The filing states that management expects the growth rate of total and subscription revenues to decline in future periods. Revenue growth was driven by Veeva Vault solutions, which contributed $26.4 million of the quarter's subscription revenue increase, compared with $9.1 million from Veeva Commercial Cloud. The company also notes that its effective tax rate fell to 5.3% for the quarter, largely due to the federal tax rate reduction under the Tax Act and higher research and development credits. The filing discloses two significant litigation matters: the IQVIA case, in which IQVIA alleges trade secret misappropriation and Veeva counterclaims alleging antitrust violations and seeks more than $200 million in damages, and the Medidata case alleging trade secret misappropriation and breach of non-compete obligations. Management believes IQVIA's and Medidata's claims lack merit and states it cannot estimate the amount or range of any loss. Veeva also remains obligated to pay at least $234.2 million in fees to salesforce.com before September 1, 2025.
Dec 7, 2018
2019-Q2
Veeva Systems Quarterly Report for Q2 Ended Jul 31, 2018
Veeva Systems Inc.'s Form 10-Q for the quarter ended July 31, 2018 reports total revenues of $209.6 million for the three months, up from $167.8 million, and $405.2 million for the six months, up from $327.6 million. Subscription services revenue was $169.6 million for the quarter versus $135.6 million a year earlier. Operating income was $52.8 million for the quarter versus $38.1 million, and net income was $50.3 million versus $38.6 million. Diluted EPS was $0.32 versus $0.25. Net cash provided by operating activities was $86.8 million for the quarter and $237.4 million for the six months. The balance sheet shows cash, cash equivalents and short-term investments totaling $1.0 billion as of July 31, 2018, with total stockholders' equity of $1.05 billion. Deferred revenue was $259.2 million. The filing states that the company expects the growth rate of total and subscription revenues to decline in future periods, and that operating expenses will increase in absolute dollars. Figures in this report reflect the adoption of ASC Topic 606 and the prior periods have been restated as adjusted. The filing describes two significant pending matters: the IQVIA litigation, in which IQVIA alleges trade secret misappropriation and Veeva counterclaims seeking more than $200 million in damages, and the Medidata litigation, where Veeva's appeal of the denial of its motion to compel arbitration was argued on August 29, 2018 and remains undecided. The company states it is unable to make a meaningful estimate of potential loss in either matter. Class B shares carried about 65.2% of voting power as of July 31, 2018.
Sep 6, 2018
2019-Q1
Veeva Systems Quarterly Report for Q1 Ended Apr 30, 2018
Veeva Systems Inc. reported its first-quarter fiscal 2019 results for the three months ended April 30, 2018. Total revenues were $195.5 million, up from $159.8 million, and subscription services revenues were $156.0 million, up from $129.1 million. Operating income was $44.0 million versus $38.9 million in the prior-year period, and net income was $44.3 million versus $36.996 million, or $0.29 diluted EPS versus $0.24. Prior-period figures were adjusted for the adoption of ASC Topic 606, which the company applied on a full retrospective basis effective February 1, 2018. The company stated that it expects the growth rate of total and subscription revenues to decline in future periods. It also reported that Veeva Commercial Cloud solutions represented about 56% of total revenues in the quarter, and that Veeva Vault growth contributed $18.7 million of the $26.9 million increase in subscription revenues. Cash, cash equivalents and short-term investments totaled $918.3 million as of April 30, 2018, and operating cash flow was $150.6 million for the quarter. The company noted that this quarter represents a majority of the operating cash flow it expects for the full fiscal year. Litigation remains significant. The IQVIA suit alleging trade secret theft is ongoing, Veeva's antitrust counterclaims against IQVIA seek more than $200 million in damages, and the Medidata trade secret and non-compete litigation continues. The company states it cannot estimate a range of loss from these matters. Class B shares held by executives, directors and their affiliates represent about 65.5% of voting power.
Jun 7, 2018
2018-Q3
Veeva Systems Quarterly Report for Q3 Ended Oct 31, 2017
Veeva Systems Inc. filed this Form 10-Q for the quarter ended October 31, 2017. Total revenues for the three months ended October 31, 2017 were $176.1 million, up from $142.8 million, and subscription services revenues were $141.9 million, up from $113.6 million. For the nine months, total revenues were $500.7 million versus $393.9 million, and net income was $108.3 million versus $47.1 million. Net income for the nine months benefited from the adoption of ASU 2016-09, which produced $37.3 million of excess tax benefits in the provision for income taxes, lowering the effective tax rate to 10.3% from 39.1% a year earlier. Operating income rose to $41.7 million for the quarter from $33.8 million, and operating expenses grew across research and development, sales and marketing, and general and administrative, with research and development up 36%. Cash, cash equivalents and short-term investments totaled $758.1 million at October 31, 2017. Net cash provided by operating activities was $232.0 million for the nine months. The company stated it expects revenue growth rates to decline in future periods and expects operating expenses to rise, which will lower operating margin in the fourth quarter. The filing describes ongoing litigation with IMS (Quintiles IMS) and Medidata, including IMS's trade secret complaint and Veeva's antitrust counterclaims seeking more than $200 million in damages. The company stated it is unable to make a meaningful estimate of loss from the IMS and Medidata actions. Approximately 69.1% of voting power is held by Class B shareholders, who will control matters until October 15, 2023.
Dec 6, 2017
2018-Q2
Veeva Systems Quarterly Report for Q2 Ended Jul 31, 2017
Veeva Systems Inc. reported results for its fiscal 2018 second quarter ended July 31, 2017. Total revenues were $166.6 million for the three months, up from $131.3 million a year earlier, and $324.5 million for the six months versus $251.1 million. Subscription services revenues were $134.3 million for the quarter and $261.6 million for the half year. Operating income rose to $36.9 million from $23.8 million, and net income was $37.8 million, compared with $13.0 million a year earlier. The filing attributes much of the improvement in net income to the adoption of ASU 2016-09, which produced $14.8 million of excess tax benefits in the quarter and lowered the effective tax rate to 4.8%. Net cash provided by operating activities was $57.6 million for the quarter and $199.8 million for the six months, and cash, cash equivalents and short-term investments totaled $724.7 million at July 31, 2017. Management expects revenue growth to decline in future periods and expects operating expenses to rise in absolute dollars and as a percentage of revenue over the remaining two quarters, which would reduce operating margin. Cash flow from operations is expected to be substantially lower in the remaining two quarters. The company is migrating more infrastructure to Amazon Web Services, which will create temporary duplicate costs. Litigation is the most significant open matter. Veeva is defending a trade secret suit brought by Quintiles IMS and has counterclaimed for antitrust violations seeking more than $200 million in damages. A Medidata trade secret suit is on appeal after the court denied Veeva's motion to compel arbitration. The company states it cannot estimate the range of loss for these matters.
Sep 7, 2017
2018-Q1
Veeva Systems Quarterly Report for Q1 Ended Apr 30, 2017
Veeva Systems Inc. reported results for the three months ended April 30, 2017 in its Form 10-Q. Total revenues were $157.9 million, up from $119.8 million a year earlier (growth of 32%), with subscription services revenues of $127.3 million (up 33%) making up 81% of total revenues. Gross margin rose to 69% from 66%, and operating income increased to $37.3 million from $17.8 million, or 23.6% of revenues versus 14.8%. Net income was $36.0 million, or $0.24 diluted per share, compared with $12.5 million, or $0.09, in the prior-year period. The filing states that the adoption of ASU 2016-09 contributed $13.9 million of excess tax benefits to the provision for income taxes, which lowered the effective tax rate to 5.0% from 39.1%, and that net cash provided by operating activities was $142.2 million, including that adoption's $13.9 million effect. The company ended the quarter with cash, cash equivalents and short-term investments of $663.9 million and deferred revenue of $238.0 million, up from $213.6 million at January 31, 2017. Management states it expects revenue growth to decline in future periods, expects operating expenses to keep rising in absolute dollars and as a percentage of revenue, and expects operating cash flows to be substantially lower in later quarters of fiscal 2018. The subscription services revenue retention rate for fiscal 2017 was 127%, compared with 125% in fiscal 2016. The filing highlights significant litigation. IMS (Quintiles IMS) filed a trade secret complaint against Veeva in January 2017, and Veeva filed antitrust counterclaims seeking over $200 million in damages. Medidata filed a suit alleging misappropriation of trade secrets, and Veeva has moved to compel arbitration. The company states it is unable to estimate a range of loss from these matters and believes the claims lack merit. The filing also notes a minimum purchase commitment to salesforce.com of $335.6 million remaining, and that Class B shareholders held about 74.9% of voting power as of April 30, 2017.
Jun 8, 2017
2017-Q3
Veeva Systems Quarterly Report for Q3 Ended Oct 31, 2016
Veeva Systems Inc. filed this Form 10-Q for the quarter ended October 31, 2016. For the three months ended October 31, 2016, total revenues were $142.8 million, up from $106.9 million, and net income was $21.6 million, versus $10.5 million a year earlier. For the nine months, total revenues were $393.9 million (versus $295.0 million) and net income was $47.1 million (versus $36.9 million). Subscription services revenues were $113.6 million for the quarter and $314.8 million for the nine months, and the filing states that subscription services made up 80% of total revenues in both periods. Operating income was $33.8 million for the quarter and $75.4 million for the nine months. Operating cash flow was $146.1 million for the nine months, and cash, cash equivalents and short-term investments totaled $510.8 million at October 31, 2016. The company noted that its revenue growth rate is expected to decline in future periods and that operating expenses are expected to keep rising as it invests in growth, which may slightly reduce operating margin. Management also said cash flow from operations in the fourth quarter is expected to be minimal, since most of the fiscal year's operating cash flow was already generated in the first three quarters. Remaining minimum purchase commitments to salesforce.com were $367.1 million, and the filing reports a Class B share voting power of approximately 77.0%. The filing also discloses a pending Section 16(b) short-swing profits action brought derivatively on Veeva's behalf against the Criterion defendants, in which the complaint alleges profits in excess of $10 million in 2014 and seeks disgorgement but no damages from Veeva. The court had not ruled on the motion to dismiss as of the filing date.
Dec 8, 2016
2017-Q2
Veeva Systems Quarterly Report for Q2 Ended Jul 31, 2016
Veeva Systems Inc. reported results for the fiscal quarter ended July 31, 2016, with total revenues of $131.3 million, up from $98.1 million in the prior-year quarter, and subscription services revenues of $105.2 million versus $75.3 million. Gross profit was $89.2 million, operating income was $23.8 million, and net income was $13.0 million, or $0.09 diluted per share. For the six months ended July 31, 2016, total revenues were $251.1 million and net income was $25.5 million. Net cash provided by operating activities was $121.1 million for the six months, and cash, cash equivalents and short-term investments totaled $479.6 million at quarter end. Management stated that it expects operating expenses to keep rising in absolute dollars, which may produce a slight decrease in operating margin, and that revenue growth may decline in future periods. The filing states that the company has remediated a material weakness related to the valuation of acquired intangible assets, which was previously disclosed in its Form 10-K and in its Form 10-Q for the quarter ended April 30, 2016. Total stock-based compensation rose to $10.0 million in the quarter from $5.6 million a year earlier. The filing also discloses a pending Section 16(b) short-swing profits lawsuit, brought on Veeva's behalf as nominal defendant against Criterion Capital entities, with a hearing scheduled for December 7, 2016. Other risk disclosures include a salesforce.com value-added reseller agreement with minimum order commitments of $500 million through September 1, 2025, of which at least $382.3 million remained outstanding as of July 31, 2016, and Class B shares carrying about 79.0% of voting power.
Sep 8, 2016
2017-Q1
Veeva Systems Quarterly Report for Q1 Ended Apr 30, 2016
Veeva Systems Inc. reported results for the fiscal first quarter ended April 30, 2016 (Form 10-Q filed June 8, 2016). Total revenues were $119.8 million, up from $89.9 million a year earlier, with subscription services revenues of $96.0 million (versus $68.9 million) making up 80% of total revenues. Gross profit was $78.7 million and operating income was $17.8 million, compared with $20.9 million a year earlier, as operating expenses rose to $60.9 million from $37.0 million. Net income was $12.5 million, or $0.09 per diluted share, versus $13.0 million in the prior-year quarter. Non-GAAP net income was $21.2 million, per the filing's reconciliation. Cash flow from operations was $109.4 million for the quarter, compared with $41.8 million a year earlier, driven largely by a $63.2 million decrease in accounts receivable and a $23.4 million increase in deferred revenue. Cash, cash equivalents and short-term investments totaled $457.4 million at April 30, 2016. Management stated that it expects operating expenses to keep rising and that the growth rate of total revenues and subscription services revenues will slightly decline in future periods. The filing discloses a material weakness in internal control over financial reporting, related to the review of inputs used to value acquired intangible assets, which was identified in the fiscal 2016 Form 10-K. Management concluded that disclosure controls were not effective as of April 30, 2016, while stating that the financial statements fairly present results in all material respects. The filing also describes a Section 16(b) short-swing profit lawsuit brought derivatively on Veeva's behalf against Criterion Capital entities, in which Veeva is a nominal defendant and does not seek damages from the company.
Jun 8, 2016
2016-Q3
Veeva Systems Quarterly Report for Q3 Ended Oct 31, 2015
Veeva Systems Inc. filed this Form 10-Q for the quarter ended October 31, 2015. For the nine months ended October 31, 2015, total revenues were $294.95 million, up from $226.21 million, and subscription services revenues were $225.91 million, up from $166.53 million. Net income was $36.87 million versus $27.06 million in the prior-year period, and diluted EPS was $0.25 versus $0.19. Operating income rose to $63.38 million from $49.28 million, while operating expenses grew 40% as the company invested in headcount, research and development, and sales and marketing. The filing states that management expects the growth rate of total and subscription revenues to slightly decline in future periods. The most significant balance-sheet event was the September 29, 2015 acquisition of Zinc Ahead, a commercial content management provider, for approximately $119.6 million in cash, plus $10.0 million of deferred compensation payable over three years. Goodwill rose from $4.85 million to $94.96 million and intangible assets from $4.90 million to $49.05 million. Cash, cash equivalents and short-term investments totaled $339.5 million at October 31, 2015, and net cash provided by operating activities was $76.7 million for the nine months. Deferred revenue declined to $102.05 million from $112.96 million. The filing also discloses a pending Section 16(b) short-swing profits action brought by a purported stockholder on Veeva's behalf against Criterion Capital entities, with a motion to dismiss hearing scheduled for February 10, 2016. The complaint does not seek damages from Veeva. Class B shares, which carry ten votes per share, held about 86.6% of voting power as of October 31, 2015.
Dec 10, 2015
2016-Q2
Veeva Systems Quarterly Report for Q2 Ended Jul 31, 2015
Veeva Systems Inc. reported its 10-Q for the quarter ended July 31, 2015. Total revenues for the three months rose to $98.1 million from $75.7 million, and for the six months to $188.0 million from $142.4 million. Subscription services revenues were $75.3 million for the quarter and $144.2 million for the six months. Net income was $13.4 million for the quarter, versus $9.6 million a year earlier, and $26.4 million for the six months, versus $16.8 million. GAAP operating income was $22.4 million for the quarter. The filing states that management expects the growth rate of total and subscription revenues to decline in future periods, and that operating expenses will rise in absolute dollars in the near term. The balance sheet showed cash, cash equivalents and short-term investments of $438.0 million at July 31, 2015. Deferred revenue was $109.5 million, and total stockholders' equity was $453.6 million. Purchase commitments under the salesforce.com agreement totaled $438.0 million, and capital spending of $14.5 million for the six months included build-out of the new Pleasanton headquarters. The company also acquired Qforma CrowdLink for $9.8 million in cash, and settled an IMS trademark complaint with a nominal payment. The filing also discloses a Section 16(b) suit, brought by a purported stockholder on behalf of Veeva, seeking disgorgement of short-swing profits from Criterion Capital entities, which the company is investigating. Class B shares held by insiders and affiliates represented approximately 88.3% of voting power as of July 31, 2015.
Sep 4, 2015
2016-Q1
Veeva Systems Quarterly Report for Q1 Ended Apr 30, 2015
Veeva Systems Inc. reported results for the three months ended April 30, 2015, its first quarter of fiscal 2016. Total revenues were $89.9 million, up from $66.7 million, an increase of 35%. Subscription services revenues were $68.9 million, up 42%, and made up 77% of total revenues. Gross margin rose to 64% from 61%, and operating income was $20.9 million versus $12.6 million a year earlier. Net income was $13.0 million, compared with $7.2 million, and diluted EPS was $0.09 versus $0.05. Non-GAAP net income was $17.1 million, or $0.12 per diluted share. Management stated it expects revenue growth rates to decline in future periods and expects operating expenses to rise in absolute dollars. The balance sheet shows cash, cash equivalents and short-term investments of $428.5 million at April 30, 2015. Net cash provided by operating activities was $41.8 million for the quarter. Deferred revenue declined slightly to $111.3 million. The company acquired Qforma CrowdLink for $10.0 million in cash on March 31, 2015. Its subscription services revenue retention rate was 138% for the fiscal year ended January 31, 2015. Future purchase commitments under its salesforce.com agreement total $450.6 million. The filing also discloses a trademark lawsuit filed April 30, 2015 by IMS Health Technology Solutions France SASU et al. over the "OpenKey" product name. Veeva replaced the name with "OpenData" on or about May 26, 2015, and the company cannot currently estimate any loss. Class B shares held by insiders represented about 89.4% of voting power as of April 30, 2015.
Jun 4, 2015
2015-Q3
Veeva Systems Quarterly Report for Q3 Ended Oct 31, 2014
Veeva Systems Inc. filed this Form 10-Q for the quarter ended October 31, 2014, reporting strong top-line growth and profitability. Total revenues for the three months ended October 31, 2014 were $83.8 million, up from $55.0 million, with subscription services revenues of $61.4 million versus $38.9 million. For the nine months, total revenues were $226.2 million versus $147.3 million, and net income was $27.1 million versus $17.4 million. Operating income for the quarter was $19.9 million, and operating cash flow for the nine months was $69.0 million. Expenses rose across categories, with research and development up 62% and general and administrative up 55% for the quarter. The filing notes a higher effective tax rate of 45.9% for the quarter, driven by expiration of the federal research and development tax credit and reduced domestic production activities deduction. The company reported cash, cash equivalents and short-term investments of $392.9 million, and a new Pleasanton, California headquarters building was purchased for $24.0 million in July 2014. Key risks disclosed include concentration of Veeva CRM revenue (about 95% of subscription revenue in fiscal 2014), a minimum order commitment of $500 million under the salesforce.com agreement, and dual-class stock structure giving Class B holders about 92.5% of voting power. The Prolifiq patent lawsuit was settled on November 21, 2014, with the financial terms reflected in the period's results.
Dec 11, 2014
2015-Q2
Veeva Systems Quarterly Report for Q2 Ended Jul 31, 2014
Veeva Systems Inc. reported its quarterly results for the three and six months ended July 31, 2014 in this Form 10-Q. Total revenues were $75.7 million for the quarter, up from $49.6 million, and $142.4 million for the six months, up from $92.4 million. Subscription services revenues were $56.6 million for the quarter and $105.1 million for the six months, both up sharply from the prior year. Operating income was $16.8 million for the quarter versus $9.8 million a year earlier, and net income was $9.6 million versus $6.0 million. Gross margin was 63% for the quarter, compared with 61% a year earlier. The balance sheet shows cash, cash equivalents and short-term investments of $350.2 million at July 31, 2014, and total stockholders' equity of $357.4 million. Cash and cash equivalents declined to $140.1 million from $262.5 million at January 31, 2014, largely because of $210.8 million of net cash used in investing activities over the six months, including $185.3 million in net purchases of marketable securities and $24.0 million for a headquarters land and building purchase in Pleasanton, California. Deferred revenue rose to $85.3 million from $67.4 million. The company flagged several risks. It has a minimum order commitment of $500 million with salesforce.com through September 1, 2025, with $486.2 million of purchase commitments outstanding. The company is defending a patent infringement lawsuit filed by Prolifiq Software, Inc., with trial set for May 18, 2015, and the outcome is described as uncertain. Class B shares held by insiders and affiliates carry about 93.8% of voting power.
Sep 11, 2014
2015-Q1
Veeva Systems Quarterly Report for Q1 Ended Apr 30, 2014
Veeva Systems Inc. reported strong growth in its quarter ended April 30, 2014. Total revenues were $66.7 million, up from $42.8 million a year earlier, and subscription services revenues rose to $48.5 million from $27.9 million. Net income was $7.2 million versus $4.8 million in the prior-year period, and operating income was $12.6 million versus $8.2 million. Gross margin was 61.1% compared with 58.6% a year earlier, while operating expenses grew as headcount rose to 766 employees. The company stated it expects operating expenses to increase in absolute dollars in the near term, which may slightly decrease operating margin. The balance sheet strengthened over the quarter. Cash, cash equivalents and short-term investments totaled $345.5 million at April 30, 2014, supported by a follow-on offering that closed March 31, 2014, with net cash proceeds to the company of $35.0 million. Deferred revenue rose to $74.9 million, and the company stated it believes its existing cash and operating cash flow will be sufficient for at least the next 12 months. Stockholders' equity reached $330.3 million. Key risks disclosed include a minimum order commitment of $500 million to salesforce.com through September 1, 2025, a pending patent and trade secret lawsuit filed by Prolifiq Software, Inc. with a claim construction hearing set for June 17, 2014, and concentrated voting control, as Class B holders hold approximately 95.9% of voting power. The company also noted that approximately 88 million shares become eligible for sale when underwriter lock-up agreements expire on June 16, 2014.
Jun 6, 2014
2014-Q3
Veeva Systems Quarterly Report for Q3 Ended Oct 31, 2013
Veeva Systems Inc. filed this Form 10-Q for the quarter ended October 31, 2013, the first quarterly report following its October 2013 initial public offering. Total revenues for the three months ended October 31, 2013 were $54.98 million, up from $35.80 million, and for the nine months were $147.35 million, up from $89.76 million. Subscription services revenues were $38.94 million for the quarter and $100.94 million for the nine months, versus $19.97 million and $49.17 million in the prior-year periods. Operating income rose to $9.99 million for the quarter and $28.00 million for the nine months, and net income was $6.53 million and $17.37 million, respectively. The IPO closed on October 21, 2013 at $20.00 per share. The company sold 11,676,750 shares, including the over-allotment option, and selling stockholders sold 3,325,000 shares; the company reported net cash proceeds of $215.7 million as of October 31, 2013. Cash and cash equivalents were $257.1 million, and total cash, cash equivalents and short-term investments were $273.4 million. The company also acquired AdvantageMS in June 2013 for $10.5 million in cash plus a $1.9 million working capital adjustment, and recorded goodwill of $4.7 million. The filing flags several risks: a patent infringement lawsuit filed by Prolifiq Software, Inc. over Veeva CRM Approved Email, whose outcome cannot be reasonably estimated; reliance on salesforce.com's platform under an agreement expiring in September 2015; and a dual-class structure under which Class B holders control 98.6% of voting power. The company states that it expects revenue growth rates to decline and that operating expenses will increase.
Dec 13, 2013