Veeva Systems Inc., a leading provider of industry cloud solutions for the global life sciences industry, announced results for its third quarter ended October 31, 2022.
Total Revenues of $552.4M, up 16% Year Over Year; Subscription Services Revenues of $441.6M, up 16% Year Over Year
PLEASANTON, Calif., Dec. 1, 2022 /PRNewswire/ -- Veeva Systems Inc. (NYSE: VEEV), a leading provider of industry cloud solutions for the global life sciences industry, today announced results for its third quarter ended October 31, 2022.
"Consistent execution and strong innovation have us tracking a year ahead of our 2025 targets and set up for significant growth toward 2030 and beyond," said CEO Peter Gassner. "Thanks to the team's focus on customer success and product excellence, our impact and strategic partnership with the industry is increasing."
Fiscal 2023 Third Quarter Results:
- Revenues: Total revenues for the third quarter were $552.4 million, up from $476.1 million one year ago, an increase of 16% year over year. Subscription services revenues for the third quarter were $441.6 million, up from $380.7 million one year ago, an increase of 16% year over year.
- Operating Income and Non-GAAP Operating Income(1): Third quarter operating income was $121.4 million, compared to $132.7 million one year ago, a decrease of 9% year over year. Non-GAAP operating income for the third quarter was $219.5 million, compared to $199.4 million one year ago, an increase of 10% year over year.
- Net Income and Non-GAAP Net Income(1): Third quarter net income was $108.5 million, compared to $105.9 million one year ago, an increase of 2% year over year. Non-GAAP net income for the third quarter was $183.2 million, compared to $158.2 million one year ago, an increase of 16% year over year.
- Net Income per Share and Non-GAAP Net Income per Share(1): For the third quarter, fully diluted net income per share was $0.67, compared to $0.65 one year ago, while non-GAAP fully diluted net income per share was $1.13, compared to $0.97 one year ago.
"In the third quarter, we delivered strong financial performance across the board including results above our guidance," said CFO Brent Bowman. "We are well positioned for durable and profitable growth as we execute on the large opportunities in commercial and R&D."
Recent Highlights:
- Groundbreaking Strategic Partnership — Veeva established a 10-year strategic partnership agreement with Merck, known as MSD outside of the United States and Canada, which builds on an existing 12-year partnership. Merck will take a Veeva-first approach to new industry-specific software and data, selecting Veeva products when they are fit for purpose. The partnership helps accelerate Merck's digital strategy and makes it more efficient to evaluate, purchase, operate, and create value from Veeva products. This agreement is the first of its kind for Veeva, supporting its vision to become the most strategic partner to the life sciences industry.
- Expanding Clinical Leadership — The Veeva Vault Platform is delivering a unified suite of products that help customers manage their clinical operations more efficiently and speed drug development. These products are becoming the preferred choice among life sciences companies with more than 450 customers using Veeva Vault eTMF and more than 175 customers using Veeva Vault CTMS.
- Veeva Vault Safety Reaches Critical Milestone — The first top 20 pharma customer went live with Vault Safety across their main divisions and most countries. Drug safety and pharmacovigilance is one of the most complex and critical areas for pharmaceutical companies. The successful go-live demonstrates Vault Safety's product readiness for the enterprise and Veeva's commitment to customer success and product excellence.
Financial Outlook:
Veeva is providing guidance for its fiscal fourth quarter ending January 31, 2023 as follows:
- Total revenues between $551 and $553 million.
- Non-GAAP operating income of about $199 million(2).
- Non-GAAP fully diluted net income per share of approximately $1.05(2).
Veeva is providing updated guidance for its fiscal year ending January 31, 2023 as follows:
- Total revenues between $2,143 and $2,145 million.
- Non-GAAP operating income of about $820 million(2).
- Non-GAAP fully diluted net income per share of approximately $4.19(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 ir.veeva.com. Veeva will host a Q&A conference call at 2:00 p.m. PT today, December 1, 2022, and a replay of the call will be available on Veeva's investor relations website.
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What: |
Veeva Systems Fiscal 2023 Third Quarter Results Conference Call |
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When: |
Thursday, December 1, 2022 |
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Time: |
2:00 p.m. PT (5:00 p.m. ET) |
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Online Registration: |
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Webcast: |
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(1) This press release uses non-GAAP financial metrics that are adjusted for the impact of various GAAP items. See the section titled "Non-GAAP Financial Measures" and the tables entitled "Reconciliation of GAAP to Non-GAAP Financial Measures" below for details. |
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(2) Veeva is not able, at this time, to provide GAAP targets for operating income and fully diluted net income per share for the fourth fiscal quarter ending January 31, 2023 or fiscal year ending January 31, 2023 because of the difficulty of estimating certain items excluded from non-GAAP operating income and non-GAAP fully diluted net income per share that cannot be reasonably predicted, such as charges related to stock-based compensation expense and employer payroll taxes on CEO stock transactions. The effect of these excluded items may be significant. |
About Veeva Systems
Veeva is the global leader in cloud software for the life sciences industry. Committed to innovation, product excellence, and customer success, Veeva serves more than 1,000 customers, ranging from the world's largest pharmaceutical companies to emerging biotechs. As a Public Benefit Corporation, Veeva is committed to balancing the interests of all stakeholders, including customers, employees, shareholders and the industries it serves. For more information, visit veeva.com.
Veeva uses its ir.veeva.com website as a means of disclosing material non-public information, announcing upcoming investor conferences, and for complying with its disclosure obligations under Regulation FD. Accordingly, you should monitor our investor relations website in addition to following our press releases, SEC filings, and public conference calls and webcasts.
Forward-looking Statements
This release contains forward-looking statements regarding Veeva's expected future performance and, in particular, includes quotes from management and guidance provided as of December 1, 2022 about Veeva's expected future financial results. Estimating guidance accurately for future periods is difficult. It involves assumptions and internal estimates that may prove to be incorrect and is based on plans that may change. Hence, there is a significant risk that actual results could differ materially from the guidance we have provided in this release and we have no obligation to update such guidance. There are also numerous risks that have the potential to negatively impact our financial performance, including as a result of competitive factors, customer decisions and priorities, events that impact the life sciences industry, issues related to the security or performance of our products, issues that impact our ability to hire, retain and adequately compensate talented employees, the pandemic, fluctuations in foreign currency exchange rates, and general macroeconomic and geopolitical events (including inflationary pressures and impacts related to Russia's invasion of Ukraine). We have summarized what we believe are the principal risks to our business in a section titled "Summary of Risk Factors" on pages 39 and 40 in our filing on Form 10-Q for the period ended July 31, 2022 which you can find here. Additional details on the risks and uncertainties that may impact our business can be found in the same filing on Form 10-Q and in our subsequent SEC filings, which you can access at sec.gov. We recommend that you familiarize yourself with these risks and uncertainties before making an investment decision.
Investor Relations Contact:
Ato Garrett
Veeva Systems Inc.
925-271-4204
ir@veeva.com
Media Contact:
Maria Scurry
Veeva Systems Inc.
781-366-7617
pr@veeva.com
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SOURCE Veeva Systems
Company Codes: NYSE:VEEV
