Total Revenues of $650.3M, up 24% Year Over Year;Subscription Services Revenues of $534.0M, up 29% Year Over Year PLEASANTON, Calif., May 30, 2024 /PRNewswire/ -- Veeva Systems Inc. (NYSE:VEEV), a leading provider of industry cloud solutions for the global life sciences industry, today announced results for its first quarter ended April 30, 2024. "Thanks to our customers and the Veeva team we had an excellent start to the year," said CEO Peter Gassner. "We made major progress in Development Cloud, Commercial Cloud, and Data Cloud." Fiscal 2025 First Quarter Results: Revenues(1): Total revenues for the first quarter were $650.3 million, up from $526.3 million one year ago, an increase of 24% year over year. Subscription services revenues for the first quarter were $534.0 million, up from $414.5 million one year ago, an increase of 29% year over year. Operating Income and Non-GAAP Operating Income(1)(2): First quarter operating income was $155.2 million, compared to $61.5 million one year ago, an increase of 152% year over year. Non-GAAP operating income for the first quarter was $260.9 million, compared to $157.0 million one year ago, an increase of 66% year over year. Net Income and Non-GAAP Net Income(1)(2): First quarter net income was $161.7 million, compared to $131.5 million one year ago, an increase of 23% year over year. Non-GAAP net income for the first quarter was $247.0 million, compared to $147.9 million one year ago, an increase of 67% year over year. Net Income per Share and Non-GAAP Net Income per Share(1)(2): For the first quarter, fully diluted net income per share was $0.98, compared to $0.81 one year ago, while non-GAAP fully diluted net income per share was $1.50, compared to $0.91 one year ago. "Our results in the first quarter exceeded our guidance on all metrics," said interim CFO and Board Director Tim Cabral. "We are investing for durable growth, and I am confident our commitment to customer success and product excellence will enable us to execute on the significant life sciences opportunity ahead." Recent Highlights: Three Top 20 Biopharmas Select Multiple Veeva Development Cloud Applications – Momentum continued in the quarter, with significant wins in clinical, quality, regulatory, and safety including three top 20 biopharma wins for multiple Development Cloud applications. All three wins included clinical, a critical area for the industry with a lot of potential and where the majority of Veeva's 11 clinical products are in the early stages of adoption. Veeva Vault Basics Now Available – Vault Basics applications are preconfigured with industry standard processes and managed by Veeva with no implementation cost. This allows emerging biotechs to start with Development Cloud earlier in their lifecycle then graduate easily to full Development Cloud as they grow. Vault CRM Suite Progress Continues – With a unique ability to bring together sales, marketing, and medical in a single Vault for connected customer data, content, and processes, the Vault CRM Suite can help the industry realize the vision of true customer centricity. Major progress toward this goal continued with the full availability of Vault CRM for all new customers in April. Multiple customers are already live and there were 13 CRM wins in the quarter. Veeva also announced planned availability dates for new applications in the Vault CRM Suite with Service Center coming in August and Campaign Manager in December. Better Commercial Data for the Industry with Veeva Data Cloud – Veeva added a record 21 new brands for Compass Patient in the first quarter, including its first seven-figure enterprise-wide win with a top 50 biopharma. It also signed the first Compass Prescriber and Compass National customers, following the products' release in January. Compass is gaining traction because it delivers data for in-office therapies and retail prescriptions, giving customers more complete and more accurate data than legacy alternatives. Veeva Link also continued to progress well, crossing the 100-customer mark, as the industry enhances engagement through real-time intelligence. Financial Outlook: Veeva is providing guidance for its fiscal second quarter ending July 31, 2024 as follows: Total revenues between $666 and $669 million. Non-GAAP operating income between $265 and $267 million(3). Non-GAAP fully diluted net income per share between $1.53 and $1.54(3). Veeva is providing updated guidance for its fiscal year ending January 31, 2025 as follows: Total revenues between $2,700 and $2,710 million. Non-GAAP operating income of about $1,070 million(3). Non-GAAP fully diluted net income per share of approximately $6.16(3). 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, May 30, 2024, and a replay of the call will be available on Veeva's investor relations website. What: Veeva Systems Fiscal 2025 First Quarter Results Conference Call When: Thursday, May 30, 2024 Time: 2:00 p.m. PT (5:00 p.m. ET) Online Registration: https://registrations.events/direct/Q4I8741326 Webcast: ir.veeva.com   (1) The customer contracting change that standardized termination for convenience (TFC) rights in our master subscription agreements resulted in a change in the timing of revenue for certain customer contracts and reduced revenues, operating income and non-GAAP operating income, and net income and non-GAAP net income in the first quarter of fiscal 2024. (2) 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. (3) Veeva is not able, at this time, to provide GAAP targets for operating income and fully diluted net income per share for the second fiscal quarter ending July 31, 2024 or the fiscal year ending January 31, 2025 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. The effect of these excluded items may be significant.   About Veeva SystemsVeeva 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 StatementsThis release contains forward-looking statements regarding Veeva's expected future performance and, in particular, includes quotes from management and guidance, provided as of May 30, 2024, 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 issues related to the performance, security, or privacy of our products, competitive factors, customer decisions and priorities, events that impact the life sciences industry, general macroeconomic and geopolitical events (including inflationary pressures, changes in interest rates, currency exchange fluctuations and impacts related to Russia's invasion of Ukraine and the Israel-Hamas conflict), and issues that impact our ability to hire, retain and adequately compensate talented employees. We have summarized what we believe are the principal risks to our business in a section titled "Summary of Risk Factors" on pages 9 and 10 in our filing on Form 10-K for the period ended January 31, 2024 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-K 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:Gunnar HansenVeeva Systems Media Contact:Maria ScurryVeeva Systems   VEEVA SYSTEMS INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) (Unaudited) April 30,2024 January 31,2024 Assets Current assets: Cash and cash equivalents $      1,197,196 $         703,487 Short-term investments 3,567,841 3,324,269 Accounts receivable, net 362,320 852,172 Unbilled accounts receivable 38,771 36,365 Prepaid expenses and other current assets 78,820 86,918 Total current assets 5,244,948 5,003,211 Property and equipment, net 58,042 58,532 Deferred costs, net 23,967 23,916 Lease right-of-use assets 44,583 45,602 Goodwill 439,877 439,877 Intangible assets, net 58,231 63,017 Deferred income taxes 266,060 233,463 Other long-term assets 51,850 43,302 Total assets $      6,187,558 $      5,910,920 Liabilities and stockholders' equity Current liabilities: Accounts payable $           31,930 $           31,513 Accrued compensation and benefits 38,755 43,433 Accrued expenses and other current liabilities 41,187 32,980 Income tax payable 71,567 11,862 Deferred revenue 1,029,455 1,049,761 Lease liabilities 10,392 9,334 Total current liabilities 1,223,286 1,178,883 Deferred income taxes 705 2,052 Lease liabilities, noncurrent 45,351 46,441 Other long-term liabilities 28,835 38,720 Total liabilities 1,298,177 1,266,096 Stockholders' equity: Class A common stock 2 2 Additional paid-in capital 2,017,904 1,915,002 Accumulated other comprehensive loss (30,646) (10,637) Retained earnings 2,902,121 2,740,457 Total stockholders' equity 4,889,381 4,644,824 Total liabilities and stockholders' equity $      6,187,558 $      5,910,920   VEEVA SYSTEMS INC. CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In thousands, except per share data) (Unaudited) Three months ended April 30, 2024 2023 Revenues: Subscription services(4) $     533,955