08/28/2024 | Press release | Distributed by Public on 08/28/2024 14:05
© 2024 Veeva Systems Inc. All rights reserved. Veeva, V, Vault and Crossix are registered trademarks of Veeva Systems Inc.
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What: | Veeva Systems Fiscal 2025 Second Quarter Results Conference Call |
When: | Wednesday, August 28, 2024 |
Time: | 2:00 p.m. PT (5:00 p.m. ET) |
Online Registration: | https://registrations.events/direct/Q4I255069 |
Webcast: | ir.veeva.com |
© 2024 Veeva Systems Inc. All rights reserved. Veeva, V, Vault and Crossix are registered trademarks of Veeva Systems Inc.
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Investor Relations Contact:
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Media Contact:
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Gunnar Hansen
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Maria Scurry
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Veeva Systems Inc.
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Veeva Systems Inc.
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267-460-5839
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781-366-7617
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© 2024 Veeva Systems Inc. All rights reserved. Veeva, V, Vault and Crossix are registered trademarks of Veeva Systems Inc.
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July 31, 2024 |
January 31, 2024 |
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Assets | ||||
Current assets: | ||||
Cash and cash equivalents | $ | 1,165,754 | $ | 703,487 |
Short-term investments | 3,719,324 | 3,324,269 | ||
Accounts receivable, net | 364,719 | 852,172 | ||
Unbilled accounts receivable | 39,432 | 36,365 | ||
Prepaid expenses and other current assets | 78,614 | 86,918 | ||
Total current assets | 5,367,843 | 5,003,211 | ||
Property and equipment, net | 56,685 | 58,532 | ||
Deferred costs, net | 23,439 | 23,916 | ||
Lease right-of-use assets | 43,146 | 45,602 | ||
Goodwill | 439,877 | 439,877 | ||
Intangible assets, net | 53,339 | 63,017 | ||
Deferred income taxes | 291,044 | 233,463 | ||
Other long-term assets | 55,464 | 43,302 | ||
Total assets | $ | 6,330,837 | $ | 5,910,920 |
Liabilities and stockholders' equity
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Current liabilities: | ||||
Accounts payable | $ | 28,307 | $ | 31,513 |
Accrued compensation and benefits | 37,151 | 43,433 | ||
Accrued expenses and other current liabilities | 32,801 | 32,980 | ||
Income tax payable | 5,616 | 11,862 | ||
Deferred revenue | 956,381 | 1,049,761 | ||
Lease liabilities
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10,182 | 9,334 | ||
Total current liabilities | 1,070,438 | 1,178,883 | ||
Deferred income taxes | 591 | 2,052 | ||
Lease liabilities, noncurrent | 43,912 | 46,441 | ||
Other long-term liabilities | 31,198 | 38,720 | ||
Total liabilities | 1,146,139 | 1,266,096 | ||
Stockholders' equity: | ||||
Class A common stock | 2 | 2 | ||
Additional paid-in capital | 2,117,109 | 1,915,002 | ||
Accumulated other comprehensive loss | (5,575) | (10,637) | ||
Retained earnings | 3,073,162 | 2,740,457 | ||
Total stockholders' equity | 5,184,698 | 4,644,824 | ||
Total liabilities and stockholders' equity
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$ | 6,330,837 | $ | 5,910,920 |
© 2024 Veeva Systems Inc. All rights reserved. Veeva, V, Vault and Crossix are registered trademarks of Veeva Systems Inc.
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Three months ended July 31, | Six months ended July 31, | |||||||
2024 | 2023 | 2024 | 2023 | |||||
Revenues: | ||||||||
Subscription services(4)
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$ | 561,277 | $ | 470,637 | $ | 1,095,232 | $ | 885,183 |
Professional services and other(5)
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114,904 | 119,588 | 231,294 | 231,367 | ||||
Total revenues | 676,181 | 590,225 | 1,326,526 | 1,116,550 | ||||
Cost of revenues(6):
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Cost of subscription services | 78,791 | 71,169 | 156,939 | 138,744 | ||||
Cost of professional services and other | 91,581 | 97,849 | 187,317 | 196,937 | ||||
Total cost of revenues | 170,372 | 169,018 | 344,256 | 335,681 | ||||
Gross profit | 505,809 | 421,207 | 982,270 | 780,869 | ||||
Operating expenses(6):
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Research and development | 176,429 | 157,228 | 339,140 | 304,188 | ||||
Sales and marketing | 101,528 | 96,995 | 198,829 | 185,498 | ||||
General and administrative | 61,365 | 62,935 | 122,642 | 125,604 | ||||
Total operating expenses | 339,322 | 317,158 | 660,611 | 615,290 | ||||
Operating income | 166,487 | 104,049 | 321,659 | 165,579 | ||||
Other income, net | 58,573 | 38,826 | 110,302 | 69,074 | ||||
Income before income taxes | 225,060 | 142,875 | 431,961 | 234,653 | ||||
Income tax provision
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54,019 | 31,247 | 99,256 | (8,496) | ||||
Net income | $ | 171,041 | $ | 111,628 | $ | 332,705 | $ | 243,149 |
Net income per share: | ||||||||
Basic | $ | 1.06 | $ | 0.70 | $ | 2.06 | $ | 1.52 |
Diluted | $ | 1.04 | $ | 0.68 | $ | 2.02 | $ | 1.49 |
Weighted-average shares used to compute net income per share:
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Basic | 161,708 | 160,396 | 161,566 | 160,129 | ||||
Diluted | 164,564 | 163,284 | 164,497 | 162,989 | ||||
Other comprehensive income: | ||||||||
Net change in unrealized gain (loss) on available-for-sale investments | $ | 25,175 | $ | (8,891) | $ | 6,314 | $ | (3,463) |
Net change in cumulative foreign currency translation (loss) gain | (104) | 267 | (1,252) | 209 | ||||
Comprehensive income | $ | 196,112 | $ | 103,004 | $ | 337,767 | $ | 239,895 |
(4) Includes subscription services revenues from the following product areas:
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Veeva Commercial Solutions | $ | 271,810 | $ | 243,430 | $ | 533,126 | $ | 482,754 |
Veeva R&D Solutions | 289,467 | 227,207 | 562,106 | 402,429 | ||||
Total subscription services | $ | 561,277 | $ | 470,637 | $ | 1,095,232 | $ | 885,183 |
(5) Includes professional services and other revenues from the following product areas:
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Veeva Commercial Solutions | $ | 45,068 | $ | 47,319 | $ | 93,840 | $ | 92,183 |
Veeva R&D Solutions | 69,836 | 72,269 | 137,454 | 139,184 | ||||
Total professional services and other | $ | 114,904 | $ | 119,588 | $ | 231,294 | $ | 231,367 |
(6) Includes stock-based compensation as follows:
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Cost of revenues: | ||||||||
Cost of subscription services | $ | 1,642 | $ | 1,748 | $ | 3,196 | $ | 3,253 |
Cost of professional services and other | 13,176 | 14,216 | 25,711 | 26,938 | ||||
Research and development | 48,984 | 45,292 | 90,727 | 84,198 | ||||
Sales and marketing | 23,671 | 23,489 | 46,714 | 43,624 | ||||
General and administrative | 20,903 | 18,150 | 37,939 | 35,601 | ||||
Total stock-based compensation | $ | 108,376 | $ | 102,895 | $ | 204,287 | $ | 193,614 |
© 2024 Veeva Systems Inc. All rights reserved. Veeva, V, Vault and Crossix are registered trademarks of Veeva Systems Inc.
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Six months ended July 31, | ||||
2024 | 2023 | |||
Cash flows from operating activities | ||||
Net income | $ | 332,705 | $ | 243,149 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Depreciation and amortization | 19,519 | 15,636 | ||
Reduction of operating lease right-of-use assets | 5,508 | 6,025 | ||
Accretion of discount on short-term investments
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(14,254) | (10,783) | ||
Stock-based compensation | 204,287 | 193,614 | ||
Amortization of deferred cost | 7,651 | 9,301 | ||
Deferred income taxes | (59,801) | (46,727) | ||
Gain on foreign currency from mark-to-market derivative | (107) | (547) | ||
Bad debt expense | 234 | 496 | ||
Changes in operating assets and liabilities: | ||||
Accounts receivable | 487,219 | 323,493 | ||
Unbilled accounts receivable | (3,067) | 44,633 | ||
Deferred costs | (7,174) | 61 | ||
Other current and long-term assets | 4,344 | 9,245 | ||
Accounts payable | (3,343) | 8,054 | ||
Accrued expenses and other current liabilities | (5,517) | (1,129) | ||
Income taxes payable | (6,246) | 19,197 | ||
Deferred revenue | (103,652) | (36,083) | ||
Operating lease liabilities | (4,666) | (4,290) | ||
Other long-term liabilities | 2,750 | (2,373) | ||
Net cash provided by operating activities | 856,390 | 770,972 | ||
Cash flows from investing activities | ||||
Purchases of short-term investments | (1,392,297) | (1,600,566) | ||
Maturities and sales of short-term investments | 1,017,605 | 696,793 | ||
Long-term assets | (11,528) | (12,551) | ||
Net cash used in investing activities | (386,220) | (916,324) | ||
Cash flows from financing activities | ||||
Proceeds from exercise of common stock options | 34,834 | 38,228 | ||
Taxes paid related to net share settlement of equity awards | (42,490) | (37,043) | ||
Net cash (used in) provided by financing activities | (7,656) | 1,185 | ||
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | (1,252) | 309 | ||
Net change in cash, cash equivalents, and restricted cash | 461,262 | (143,858) | ||
Cash, cash equivalents, and restricted cash at beginning of period | 706,670 | 889,650 | ||
Cash, cash equivalents, and restricted cash at end of period | $ | 1,167,932 | $ | 745,792 |
Supplemental disclosures of other cash flow information: | ||||
Excess tax benefits from employee stock plans | $ | 4,262 | $ | 65,300 |
© 2024 Veeva Systems Inc. All rights reserved. Veeva, V, Vault and Crossix are registered trademarks of Veeva Systems Inc.
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© 2024 Veeva Systems Inc. All rights reserved. Veeva, V, Vault and Crossix are registered trademarks of Veeva Systems Inc.
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© 2024 Veeva Systems Inc. All rights reserved. Veeva, V, Vault and Crossix are registered trademarks of Veeva Systems Inc.
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Reconciliation of Net Cash Provided by Operating Activities (GAAP basis to non-GAAP basis) | Three months ended July 31, | Six months ended July 31, | ||||||
2024 | 2023 | 2024 | 2023 | |||||
Net cash provided by operating activities on a GAAP basis | $ | 92,874 | $ | 265,036 | $ | 856,390 | $ | 770,972 |
Excess tax benefits from employee stock plans | (1,141) | (3,211) | (4,262) | (65,300) | ||||
Net cash provided by operating activities on a non-GAAP basis | $ | 91,733 | $ | 261,825 | $ | 852,128 | $ | 705,672 |
Net cash used in investing activities on a GAAP basis | $ | (113,842) | $ | (618,930) | $ | (386,220) | $ | (916,324) |
Net cash (used in) provided by financing activities on a GAAP basis | $ | (11,484) | $ | 2,577 | $ | (7,656) | $ | 1,185 |
Reconciliation of Financial Measures (GAAP basis to non-GAAP basis) | Three months ended July 31, | Six months ended July 31, | ||||||
2024 | 2023 | 2024 | 2023 | |||||
Cost of subscription services revenues on a GAAP basis | $ | 78,791 | $ | 71,169 | $ | 156,939 | $ | 138,744 |
Stock-based compensation expense | (1,642) | (1,748) | (3,196) | (3,253) | ||||
Amortization of purchased intangibles | (1,123) | (1,126) | (2,222) | (2,216) | ||||
Cost of subscription services revenues on a non-GAAP basis | $ | 76,026 | $ | 68,295 | $ | 151,521 | $ | 133,275 |
Gross margin on subscription services revenues on a GAAP basis | 86.0 | % | 84.9 | % | 85.7 | % | 84.3 | % |
Stock-based compensation expense | 0.3 | 0.4 | 0.3 | 0.3 | ||||
Amortization of purchased intangibles | 0.2 | 0.2 | 0.2 | 0.3 | ||||
Gross margin on subscription services revenues on a non-GAAP basis | 86.5 | % | 85.5 | % | 86.2 | % | 84.9 | % |
Cost of professional services and other revenues on a GAAP basis | $ | 91,581 | $ | 97,849 | $ | 187,317 | $ | 196,937 |
Stock-based compensation expense | (13,176) | (14,216) | (25,711) | (26,938) | ||||
Amortization of purchased intangibles | (138) | (139) | (273) | (273) | ||||
Cost of professional services and other revenues on a non-GAAP basis | $ | 78,267 | $ | 83,494 | $ | 161,333 | $ | 169,726 |
Gross margin on professional services and other revenues on a GAAP basis | 20.3 | % | 18.2 | % | 19.0 | % | 14.9 | % |
Stock-based compensation expense | 11.5 | 11.9 | 11.1 | 11.6 | ||||
Amortization of purchased intangibles | 0.1 | 0.1 | 0.1 | 0.1 | ||||
Gross margin on professional services and other revenues on a non-GAAP basis | 31.9 | % | 30.2 | % | 30.2 | % | 26.6 | % |
Gross profit on a GAAP basis | $ | 505,809 | $ | 421,207 | $ | 982,270 | $ | 780,869 |
Stock-based compensation expense | 14,818 | 15,964 | 28,907 | 30,191 | ||||
Amortization of purchased intangibles | 1,261 | 1,265 | 2,495 | 2,489 | ||||
Gross profit on a non-GAAP basis | $ | 521,888 | $ | 438,436 | $ | 1,013,672 | $ | 813,549 |
Gross margin on total revenues on a GAAP basis | 74.8 | % | 71.4 | % | 74.0 | % | 69.9 | % |
Stock-based compensation expense | 2.2 | 2.7 | 2.2 | 2.7 | ||||
Amortization of purchased intangibles | 0.2 | 0.2 | 0.2 | 0.3 | ||||
Gross margin on total revenues on a non-GAAP basis | 77.2 | % | 74.3 | % | 76.4 | % | 72.9 | % |
Research and development expense on a GAAP basis | $ | 176,429 | $ | 157,228 | $ | 339,140 | $ | 304,188 |
Stock-based compensation expense | (48,984) | (45,292) | (90,727) | (84,198) | ||||
Amortization of purchased intangibles | (28) | (29) | (56) | (56) | ||||
Research and development expense on a non-GAAP basis | $ | 127,417 | $ | 111,907 | $ | 248,357 | $ | 219,934 |
© 2024 Veeva Systems Inc. All rights reserved. Veeva, V, Vault and Crossix are registered trademarks of Veeva Systems Inc.
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Three months ended July 31, | Six months ended July 31, | |||||||
2024 | 2023 | 2024 | 2023 | |||||
Sales and marketing expense on a GAAP basis | $ | 101,528 | $ | 96,995 | $ | 198,829 | $ | 185,498 |
Stock-based compensation expense | (23,671) | (23,489) | (46,714) | (43,624) | ||||
Amortization of purchased intangibles | (3,546) | (3,555) | (7,014) | (6,995) | ||||
Sales and marketing expense on a non-GAAP basis | $ | 74,311 | $ | 69,951 | $ | 145,101 | $ | 134,879 |
General and administrative expense on a GAAP basis | $ | 61,365 | $ | 62,935 | $ | 122,642 | $ | 125,604 |
Stock-based compensation expense | (20,903) | (18,150) | (37,939) | (35,601) | ||||
Amortization of purchased intangibles | (57) | (57) | (113) | (112) | ||||
Litigation settlement
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- | - | (5,000) | - | ||||
General and administrative expense on a non-GAAP basis | $ | 40,405 | $ | 44,728 | $ | 79,590 | $ | 89,891 |
Operating expense on a GAAP basis | $ | 339,322 | $ | 317,158 | $ | 660,611 | $ | 615,290 |
Stock-based compensation expense | (93,558) | (86,931) | (175,380) | (163,423) | ||||
Amortization of purchased intangibles | (3,631) | (3,641) | (7,183) | (7,163) | ||||
Litigation settlement
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- | - | (5,000) | - | ||||
Operating expense on a non-GAAP basis | $ | 242,133 | $ | 226,586 | $ | 473,048 | $ | 444,704 |
Operating income on a GAAP basis | $ | 166,487 | $ | 104,049 | $ | 321,659 | $ | 165,579 |
Stock-based compensation expense | 108,376 | 102,895 | 204,287 | 193,614 | ||||
Amortization of purchased intangibles | 4,892 | 4,906 | 9,678 | 9,652 | ||||
Litigation settlement
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- | - | 5,000 | - | ||||
Operating income on a non-GAAP basis | $ | 279,755 | $ | 211,850 | $ | 540,624 | $ | 368,845 |
Operating margin on a GAAP basis | 24.6 | % | 17.6 | % | 24.2 | % | 14.8 | % |
Stock-based compensation expense | 16.0 | 17.4 | 15.4 | 17.3 | ||||
Amortization of purchased intangibles | 0.8 | 0.9 | 0.8 | 0.9 | ||||
Litigation settlement
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- | - | 0.4 | - | ||||
Operating margin on a non-GAAP basis | 41.4 | % | 35.9 | % | 40.8 | % | 33.0 | % |
Net income on a GAAP basis | $ | 171,041 | $ | 111,628 | $ | 332,705 | $ | 243,149 |
Stock-based compensation expense | 108,376 | 102,895 | 204,287 | 193,614 | ||||
Amortization of purchased intangibles | 4,892 | 4,906 | 9,678 | 9,652 | ||||
Litigation settlement
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- | - | 5,000 | - | ||||
Income tax effect on non-GAAP adjustments(7)
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(17,030) | (21,395) | (37,438) | (100,459) | ||||
Net income on a non-GAAP basis | $ | 267,279 | $ | 198,034 | $ | 514,232 | $ | 345,956 |
Diluted net income per share on a GAAP basis | $ | 1.04 | $ | 0.68 | $ | 2.02 | $ | 1.49 |
Stock-based compensation expense | 0.66 | 0.63 | 1.24 | 1.19 | ||||
Amortization of purchased intangibles | 0.03 | 0.03 | 0.06 | 0.06 | ||||
Litigation settlement
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- | - | 0.03 | - | ||||
Income tax effect on non-GAAP adjustments(7)
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(0.11) | (0.13) | (0.22) | (0.62) | ||||
Diluted net income per share on a non-GAAP basis | $ | 1.62 | $ | 1.21 | $ | 3.13 | $ | 2.12 |
© 2024 Veeva Systems Inc. All rights reserved. Veeva, V, Vault and Crossix are registered trademarks of Veeva Systems Inc.
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