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Veeva Systems 8-K Report, Financial Results (Feb 29, 2024)

Reports
Earnings & Results·Exhibits & Filings
Filing Date
Filed February 29, 2024
Period End
February 29, 2024
Security
VEEV
In the record · 2016–202610-K1110-Q328-K94

VEEV filed 11 annual reports (10-K), 32 quarterly reports (10-Q) and 94 current reports (8-K) between 2016 and 2026.

  1. Deal closed8-K · Nov ’19Nov ’19
  2. Leadership change8-K · Aug ’22Aug ’22
  3. Leadership change8-K · Aug ’26Aug ’26

01—Abstract

Summary

Summary of the 8-K filed February 29, 2024. Cited figures are marked; the original filing is the authoritative source.

Veeva Systems Inc. (NYSE: VEEV) reported fourth-quarter and fiscal year 2024 results for the period ended January 31, 2024, as detailed in Exhibit 99.1 (press release dated February 29, 2024).

Fiscal year 2024 total revenues were $2,363.7 milliona, up 10% year over year, and subscription services revenues were $1,901.6 million, also up 10%. Fourth-quarter total revenues were $630.6 million, up 12%, and subscription services revenues were $521.5 million, up 13%. Management attributed the year's progress to the Veeva Compass Suite of data products, the Clinical Platform, and the new Commercial Cloud.

GAAP profitability was mixed. Fiscal year 2024 GAAP operating income was $429.3 millionb, down 6% from $459.1 million, while non-GAAP operating income rose 1% to $842.5 million. GAAP net income increased 8% to $525.7 million, and fully diluted GAAP net income per share was $3.22 versus $3.00.

Fourth-quarter GAAP net income declined 22% to $147.4 millionc. The company stated that a customer contracting change standardizing termination for convenience rights, effective February 1, 2023, shifted the timing of revenue on certain contracts and reduced revenues, operating income and net income in both the quarter and the fiscal year. For the fiscal first quarter ending April 30, 2024, Veeva guided to total revenues of $640 to $643 million, non-GAAP operating income of $245 to $247 million, and non-GAAP fully diluted EPS of $1.42 to $1.43.

For fiscal year 2025 (ending January 31, 2025), it guided to total revenues of $2,725 to $2,740 milliond, non-GAAP operating income of about $1,070 million, and non-GAAP fully diluted EPS of approximately $6.16. Veeva stated it could not provide GAAP guidance for these periods because of items such as stock-based compensation that cannot be reasonably predicted.

02—Key points

Key Highlights

  1. FY2024 total revenues of $2,363.7 million, up 10% year over year; Q4 total revenues of $630.6 million, up 12%.
  2. FY2024 GAAP operating income of $429.3 million, down 6%, while non-GAAP operating income rose 1% to $842.5 million.
  3. FY2024 GAAP net income of $525.7 million, up 8%; non-GAAP net income of $791.0 million, up 14%.
  4. Q4 GAAP net income of $147.4 million, down 22% year over year, versus non-GAAP net income of $226.3 million, up 21%.
  5. Customer contracting change standardizing termination for convenience rights reduced revenues, operating income and net income in Q4 and FY2024.
  6. FY2025 guidance: total revenues of $2,725 to $2,740 million and non-GAAP operating income of about $1,070 million.
  7. Customer count reached 1,432 at year end, up 44 from the prior year, including 1,078 R&D Solutions and 693 Commercial Solutions customers (counts overlap).

03—Questions

Frequently Asked Questions

  1. How did Veeva perform in fiscal year 2024?

    Total revenues were $2,363.7 million, up 10% year over year, and subscription services revenues were $1,901.6 million, also up 10%. GAAP operating income declined 6% to $429.3 million, while GAAP net income rose 8% to $525.7 million.

  2. Why did GAAP net income fall in the fourth quarter?

    Fourth-quarter GAAP net income was $147.4 million, down 22% from $188.5 million a year earlier. The filing does not attribute the decline to a single cause, but it does state that the customer contracting change on termination for convenience rights reduced quarterly revenues, operating income and net income.

  3. What is the customer contracting change?

    Veeva standardized termination for convenience (TFC) rights in its master subscription agreements, effective February 1, 2023. For certain contracts to which a TFC right was added, the timing of revenue changed, which reduced revenues, operating income and net income in the fourth quarter and fiscal year.

  4. What guidance did Veeva provide for the coming periods?

    For the fiscal first quarter ending April 30, 2024, Veeva guided to total revenues of $640 to $643 million, non-GAAP operating income of $245 to $247 million, and non-GAAP fully diluted EPS of $1.42 to $1.43. For fiscal year 2025, it guided to total revenues of $2,725 to $2,740 million, non-GAAP operating income of about $1,070 million, and non-GAAP fully diluted EPS of approximately $6.16.

  5. Why does Veeva not provide GAAP guidance?

    Veeva stated it cannot reasonably predict certain items excluded from non-GAAP operating income and non-GAAP EPS, such as stock-based compensation expense, and that the effect of these excluded items may be significant.

04—Continue

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