Market Overview

Veeva Announces Fiscal 2020 First Quarter Results

Share:

Total Revenues of $244.8M, up 25% Year-over-year;
Subscription
Services Revenues of $198.1M, up 27% 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 fiscal first quarter ended April 30, 2019.

"It was a great start to the year. The team's focus on customer success
and product excellence continues to drive Veeva's outstanding results,"
said CEO Peter Gassner. "We are expanding our position as one of the
most trusted partners to the industry by consistently bringing new
innovations to market that have the greatest customer impact."

Fiscal 2020 First Quarter Results:

  • Revenues: Total revenues for the first quarter were $244.8
    million, up from $195.5 million one year ago, an increase of 25%
    year-over-year. Subscription services revenues for the first quarter
    were $198.1 million, up from $156.0 million one year ago, an increase
    of 27% year-over-year.
  • Operating Income and Non-GAAP Operating Income(1):
    First quarter operating income was $71.2 million, compared to
    $44.0 million one year ago, an increase of 62% year-over-year.
    Non-GAAP operating income for the first quarter was $93.5 million,
    compared to $62.9 million one year ago, an increase of 49%
    year-over-year.
  • Net Income and Non-GAAP Net Income(1): First quarter
    net income was $73.4 million, compared to $44.3 million one year ago,
    an increase of 66% year-over-year. Non-GAAP net income for the first
    quarter was $78.7 million, compared to $51.4 million one year ago, an
    increase of 53% year-over-year.
  • Net Income per Share and Non-GAAP Net Income per Share(1):
    For the first quarter, fully diluted net income per share was
    $0.47, compared to $0.29 one year ago, while non-GAAP fully diluted
    net income per share was $0.50, compared to $0.33 one year ago.

"Our outperformance in Veeva Commercial Cloud and Veeva Vault allowed us
to post another strong quarter of growth and profitability," said CFO
Tim Cabral. "These results enabled us to meaningfully raise fiscal 2020
guidance across all metrics."

Recent Highlights:

  • Commercial Innovation Continues with New AI-driven Applications
    — Veeva released its new AI application, Veeva
    Andi
    , that delivers insights and next best action suggestions
    right in Veeva CRM. The company also
    announced
    it is embedding AI in Veeva CRM with Approved Notes and
    in Veeva Vault PromoMats with Auto Claims Linking.
  • Top 20 Pharma Selects Veeva Vault CDMS — The company won
    its first enterprise-wide deal
    with a top 20 pharma. The customer
    chose Vault CDMS as its global standard for EDC, coding, data
    cleaning, and reporting.
  • Industry is Moving to Veeva Vault — Veeva added 47 new Vault
    customers in Q1, a quarterly record. There were also a number of
    significant expansions with existing customers, including a top 20
    pharma that standardized on Vault eTMF, Vault Submissions, and Vault
    Submissions Archive based upon the success of their Vault QualityDocs
    implementation for more than 50,000 users.

Financial Outlook:

Veeva is providing guidance for its fiscal second quarter ending July
31, 2019 as follows:

  • Total revenues between $259 and $260 million.
  • Non-GAAP operating income between $94 and $95 million(2).
  • Non-GAAP fully diluted net income per share between $0.48 and $0.49(2).

Veeva is providing guidance for its fiscal year ending January 31, 2020
as follows:

  • Total revenues between $1,045 and $1,050 million.
  • Non-GAAP operating income between $385 and $390 million(2).
  • Non-GAAP fully diluted net income per share between $2.01 and $2.03(2).

Conference Call Information:

What:     Veeva's Fiscal 2020 First Quarter Results Conference Call

When:

Wednesday, May 29, 2019

Time:

1:30 p.m. PT (4:30 p.m. ET)

Live Call:

1-833-235-5654, domestic

1-647-689-4160, international
Conference ID 399 8705
Webcast:

ir.veeva.com

__________

(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.

(2) 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, 2019 or fiscal year ending January
31, 2020 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 Systems

Veeva Systems Inc. is the leader in cloud-based software for the global
life sciences industry. Committed to innovation, product excellence, and
customer success, Veeva serves more than 750 customers, ranging from the
world's largest pharmaceutical companies to emerging biotechs. Veeva is
headquartered in the San Francisco Bay Area, with offices throughout
North America, Europe, Asia, and Latin America. For more information,
visit veeva.com.

Forward-looking Statements

This release contains forward-looking statements, including the
quotations from management, the statements in "Financial Outlook," and
other statements regarding Veeva's future performance, market growth,
the benefits from the use of Veeva's solutions, our strategies, and
general business conditions. Any forward-looking statements contained in
this press release are based upon Veeva's historical performance and its
current plans, estimates and expectations and are not a representation
that such plans, estimates, or expectations will be achieved. These
forward-looking statements represent Veeva's expectations as of the date
of this press announcement. Subsequent events may cause these
expectations to change, and Veeva disclaims any obligation to update the
forward-looking statements in the future. These forward-looking
statements are subject to known and unknown risks and uncertainties that
may cause actual results to differ materially, including (i) breaches in
our security measures or unauthorized access to our customers' data; (ii) our
expectation that the future growth rate of our revenues will decline;
(iii) fluctuation of our results, which may make
period-to-period comparisons less meaningful; (iv) competitive factors,
including but not limited to pricing pressures, consolidation among our
competitors, entry of new competitors, the launch of new products and
marketing initiatives by our existing competitors, and difficulty
securing rights to access, host or integrate with complementary third
party products or data used by our customers; (v) the rate of adoption
of our newer solutions and the results of our efforts to sustain or
expand the use and adoption of our more established applications, like
Veeva CRM; (vi) loss of one or more customers, particularly any of our
large customers; (vii) system unavailability, system performance
problems, or loss of data due to disruptions or other problems with our
computing infrastructure; (viii) our ability to attract and retain
highly skilled employees and manage our growth effectively; (ix) failure
to sustain the level of profitability we have achieved in the past as
our costs increase; (x) adverse changes in economic, regulatory, or
market conditions, particularly in the life sciences industry, including
as a result of customer mergers; (xi) a decline in new subscriptions
that may not be immediately reflected in our operating results due to
the ratable recognition of our subscription revenue; and (xii) pending,
threatened, or future legal proceedings and related expenses.

Additional risks and uncertainties that could affect Veeva's financial
results are included under the captions, "Risk Factors" and
"Management's Discussion and Analysis of Financial Condition and Results
of Operations" in the company's filing on Form 10-K for the period ended
January 31, 2019. This is available on the company's website at veeva.com
under the Investors section and on the SEC's website at sec.gov.
Further information on potential risks that could affect actual results
will be included in other filings Veeva makes with the SEC from time to
time.

 

VEEVA SYSTEMS INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)

(Unaudited)

 
  April 30,     January 31,
2019 2019
Assets
Current assets:
Cash and cash equivalents $ 748,158 $ 550,971
Short-term investments 581,490 539,190
Accounts receivable, net 164,108 303,465
Unbilled accounts receivable 23,366 18,122
Prepaid expenses and other current assets   20,729   21,666
Total current assets 1,537,851 1,433,414
Property and equipment, net(3) 55,266 54,966
Deferred costs, net 30,621 30,869
Lease right-of-use assets(3) 15,495
Goodwill
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