Customer Experience, Service & Success

Veeva Announces Fiscal 2023 Second Quarter Results

Total Revenues of $534.2M, up 17% Year Over Year; Subscription Services Revenues of $428.6M, up 17% 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, 2022.

“Our innovation engine is delivering more value to our customers than ever as we continue making progress with established and newly launched products in commercial and R&D,” said CEO Peter Gassner. “We are early in a large and growing opportunity and look forward to expanding our position as the strategic technology partner to the life sciences industry across their most critical functions.”

Fiscal 2023 Second Quarter Results:
  • Revenues: Total revenues for the second quarter were $534.2 million, up from $455.6 million one year ago, an increase of 17% year over year. Subscription services revenues for the second quarter were $428.6 million, up from $366.4 million one year ago, an increase of 17% year over year.
  • Operating Income and Non-GAAP Operating Income(1): Second quarter operating income was $101.1 million, compared to $124.6 million one year ago, a decrease of 19% year over year. Non-GAAP operating income for the second quarter was $202.0 million, compared to $191.6 million one year ago, an increase of 5% year over year.
  • Net Income and Non-GAAP Net Income(1): Second quarter net income was $90.6 million, compared to $108.9 million one year ago, a decrease of 17% year over year. Non-GAAP net income for the second quarter was $166.2 million, compared to $152.7 million one year ago, an increase of 9% 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 $0.56, compared to $0.67 one year ago, while non-GAAP fully diluted net income per share was $1.03, compared to $0.94 one year ago.

“Veeva’s durable business model delivered another quarter of solid revenue growth and strong profitability,” said CFO Brent Bowman. “We are very confident in our competitive position and we are performing well financially as we track ahead of our 2025 targets.”

Recent Highlights:
  • Leading Through Innovation in Commercial — Veeva continues to expand its leadership through product excellence and customer success in core and new product areas. This quarter saw a significant Veeva CRM release with major innovations to optimize content use across channels to enable efficient and compliant hybrid engagement models.
  • A Record Number of Customers for Veeva Quality — This quarter saw a major milestone with Veeva Vault Quality, as more than 500 customers are now using at least one Vault Quality Suite product, including more than 200 Vault Training customers. Strong momentum in the second quarter included a record 52 Vault Quality customer wins and significant progress on Vault QMS projects with enterprise customers. New product innovations in Vault LIMS and Vault Validation Management are progressing well and will start working with early-adopter customers later this year.
  • Groundbreaking Insights from Veeva Business Consulting — Veeva Business Consulting published the Veeva Pulse Field Trends Report, a first-ever industrywide view of global customer engagement based upon more than 130 million quarterly HCP interactions. With a unique foundation of data-driven insights and a deep knowledge of Veeva products, Veeva Business Consulting had a record revenue quarter and is quickly becoming a strategic resource to help customers realize their digital transformation.
  • Victory for Employee Rights and the Industry — In a major win for employee rights and the life sciences industry, a federal court dismissed the baseless trade secret lawsuit Medidata filed against Veeva in 2017, blocking Medidata’s attempt to stifle innovation and free flow of talent. Finding that Medidata was unable to substantiate its claims against Veeva, the judge ended the proceedings and rejected the suit midway through the jury trial. Veeva has been a long-standing supporter of employee rights and the movement to ban the use of non-compete agreements. Medidata’s abusive lawsuit further underscores the need for greater protection of worker rights to freely change employers, which promotes fair competition and economic growth.
Financial Outlook:

Veeva is providing guidance for its fiscal third quarter ending October 31, 2022 as follows:

  • Total revenues between $545 and $547 million.
  • Non-GAAP operating income between $209 and $211 million(2).
  • Non-GAAP fully diluted net income per share between $1.07 and $1.08(2).

Veeva is providing updated guidance for its fiscal year ending January 31, 2023 as follows:

  • Total revenues between $2,140 and $2,145 million.
  • Non-GAAP operating income of about $820 million(2).
  • Non-GAAP fully diluted net income per share of approximately $4.17(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 31, 2022, and a replay of the call will be available on Veeva’s investor relations website.

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