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Veeva Systems 8-K Report, Financial Results (Aug 28, 2024)

Reports
Earnings & Results·Exhibits & Filings
Filing Date
Filed August 28, 2024
Period End
August 28, 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 August 28, 2024. Cited figures are marked; the original filing is the authoritative source.

Veeva Systems Inc. (NYSE: VEEV) reported results for its fiscal 2025 second quarter ended July 31, 2024, per a press release furnished as Exhibit 99.1 to this Form 8-K dated August 28, 2024.

Total revenues were $676.2 milliona, up 15% year over year, and subscription services revenues were $561.3 million, up 19%. GAAP operating income rose to $166.5 million from $104.0 million, and GAAP net income rose to $171.0 million from $111.6 million. GAAP fully diluted net income per share was $1.04, compared with $0.68 a year earlier.

The filing notes that a customer contracting change standardizing termination for convenience rights reduced revenues, operating income and net income in the second quarter of fiscal 2024. Non-GAAP operating income was $279.8 millionb, up from $211.9 million, and non-GAAP fully diluted net income per share was $1.62, compared with $1.21. For the fiscal third quarter ending October 31, 2024, Veeva guided to total revenues of $682 to $685 million, non-GAAP operating income of $273 to $275 million, and non-GAAP fully diluted EPS of $1.57 to $1.58.

For fiscal 2025 (ending January 31, 2025), it updated guidance to total revenues of $2,704 to $2,710 millionc, non-GAAP operating income of about $1,080 million, and non-GAAP fully diluted EPS of approximately $6.22. The company stated it cannot reliably provide GAAP guidance because of items such as stock-based compensation, which may be significant. Balance sheet data show cash and cash equivalents of $1.17 billion and short-term investments of $3.72 billion at July 31, 2024, versus deferred revenue of $956.4 million.

Six-month net cash provided by operating activities was $856.4 milliond. Management commentary from CEO Peter Gassner and interim CFO Tim Cabral emphasized product advances in clinical and CRM and profitable growth through 2030.

02—Key points

Key Highlights

  1. Q2 fiscal 2025 total revenues of $676.2 million, up 15% year over year from $590.2 million
  2. Subscription services revenues of $561.3 million, up 19% from $470.6 million
  3. GAAP operating income of $166.5 million, up 60% from $104.0 million; non-GAAP operating income of $279.8 million, up 32%
  4. GAAP net income of $171.0 million (diluted EPS $1.04) versus $111.6 million ($0.68); non-GAAP diluted EPS of $1.62 versus $1.21
  5. Fiscal Q3 2024 guidance: total revenues $682–$685 million; non-GAAP EPS $1.57–$1.58
  6. Updated fiscal 2025 guidance: total revenues $2,704–$2,710 million; non-GAAP operating income about $1,080 million; non-GAAP EPS about $6.22
  7. Balance sheet at July 31, 2024 included $1.17 billion in cash and cash equivalents and $3.72 billion in short-term investments

03—Questions

Frequently Asked Questions

  1. How did Veeva perform in its fiscal 2025 second quarter?

    Total revenues were $676.2 million, up 15% year over year, and subscription services revenues were $561.3 million, up 19%. GAAP operating income was $166.5 million and GAAP net income was $171.0 million, both higher than the prior-year quarter.

  2. Did the company change its financial outlook?

    Yes. For fiscal 2025 the company updated its guidance to total revenues of $2,704–$2,710 million, non-GAAP operating income of about $1,080 million, and non-GAAP fully diluted EPS of approximately $6.22. It also provided fiscal third-quarter guidance of $682–$685 million in revenues and $1.57–$1.58 in non-GAAP EPS.

  3. Why are GAAP and non-GAAP results presented differently?

    Non-GAAP measures exclude stock-based compensation, amortization of purchased intangibles, excess tax benefits and, in the first half of fiscal 2025, a litigation settlement. Stock-based compensation was $108.4 million in the quarter. The company says it cannot provide GAAP guidance because certain excluded items cannot be reasonably predicted and may be significant.

  4. What affected results in the prior-year quarter?

    The filing states that a customer contracting change standardizing termination for convenience rights changed the timing of revenue for certain contracts, reducing revenues, operating income and net income in the second quarter of fiscal 2024.

  5. What was the company's cash position?

    At July 31, 2024, Veeva had $1,165.8 million in cash and cash equivalents and $3,719.3 million in short-term investments. Net cash provided by operating activities for the six months ended July 31, 2024 was $856.4 million.

04—Continue

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