Delaware |
001-36121 |
20-8235463 |
||||||||||||
(State or other jurisdiction of incorporation of organization) |
(Commission File Number) |
(IRS Employer Identification No.) |
☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | ||||
☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | ||||
☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | ||||
☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Title of each class | Trading Symbol | Name of each exchange on which registered | ||||||||||||
Class A Common Stock, par value $0.00001 per share |
VEEV | New York Stock Exchange |
Emerging growth company | ☐ | |||||||
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. | ☐ |
Exhibit No. | Description | |||||||
99.1 | ||||||||
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
Veeva Systems Inc. | |||||||||||
By: | /s/ Tim Cabral | ||||||||||
Tim Cabral | |||||||||||
Interim Chief Financial Officer | |||||||||||
Dated: | August 28, 2024 |
© 2024 Veeva Systems Inc. All rights reserved. Veeva, V, Vault and Crossix are registered trademarks of Veeva Systems Inc. |
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1 |
||||||
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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2 |
Investor Relations Contact: |
Media Contact: |
|||||||
Gunnar Hansen |
Maria Scurry |
|||||||
Veeva Systems Inc. |
Veeva Systems Inc. |
|||||||
267-460-5839 |
781-366-7617 |
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ir@veeva.com |
pr@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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3 |
July 31, 2024 |
January 31, 2024 |
||||||||||
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 |
|||||||||||
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 |
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 |
$ | 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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4 |
Three months ended July 31, | Six months ended July 31, | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
Revenues: | |||||||||||||||||||||||
Subscription services(4) |
$ | 561,277 | $ | 470,637 | $ | 1,095,232 | $ | 885,183 | |||||||||||||||
Professional services and other(5) |
114,904 | 119,588 | 231,294 | 231,367 | |||||||||||||||||||
Total revenues | 676,181 | 590,225 | 1,326,526 | 1,116,550 | |||||||||||||||||||
Cost of revenues(6): |
|||||||||||||||||||||||
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): |
|||||||||||||||||||||||
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 |
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: |
|||||||||||||||||||||||
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: |
|||||||||||||||||||||||
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: |
|||||||||||||||||||||||
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: |
|||||||||||||||||||||||
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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5 |
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 |
(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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6 |
© 2024 Veeva Systems Inc. All rights reserved. Veeva, V, Vault and Crossix are registered trademarks of Veeva Systems Inc. |
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7 |
© 2024 Veeva Systems Inc. All rights reserved. Veeva, V, Vault and Crossix are registered trademarks of Veeva Systems Inc. |
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8 |
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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9 |
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 |
— | — | (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 |
— | — | (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 |
— | — | 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 |
— | — | 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 |
— | — | 5,000 | — | |||||||||||||||||||
Income tax effect on non-GAAP adjustments(7) |
(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 |
— | — | 0.03 | — | |||||||||||||||||||
Income tax effect on non-GAAP adjustments(7) |
(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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10 |