Veeva Announces Fiscal 2023 Third Quarter Results

Rhea-AI Summary

Veeva Systems reported total revenues of $552.4 million for Q3 2023, reflecting a 16% year-over-year increase. Subscription services also rose to $441.6 million, marking the same growth rate. Operating income decreased by 9% to $121.4 million, whereas non-GAAP operating income grew 10% to $219.5 million. Net income increased by 2% to $108.5 million and non-GAAP net income surged 16% to $183.2 million. The company also established a 10-year strategic partnership with Merck.

Positive

• Total revenues increased by 16% year-over-year to $552.4 million.
• Subscription services revenues grew by 16% year-over-year to $441.6 million.
• Non-GAAP operating income rose by 10% year-over-year to $219.5 million.
• Non-GAAP net income surged by 16% year-over-year to $183.2 million.
• Successful establishment of a groundbreaking 10-year strategic partnership with Merck.

Negative

• Operating income decreased by 9% year-over-year to $121.4 million.

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.

What:	Veeva Systems Fiscal 2023 Third Quarter Results Conference Call
When:	Thursday, December 1, 2022
Time:	2:00 p.m. PT (5:00 p.m. ET)
Online Registration:	https://conferencingportals.com/event/badXudFz
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 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

 

VEEVA SYSTEMS INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
	October 31, 2022		January 31, 2022
Assets
Current assets:
Cash and cash equivalents	$         865,159		$      1,138,040
Short-term investments	2,157,396		1,238,064
Accounts receivable, net	242,859		631,134
Unbilled accounts receivable	82,085		63,266
Prepaid expenses and other current assets	38,986		36,679
Total current assets	3,386,485		3,107,183
Property and equipment, net	51,135		54,495
Deferred costs, net	27,875		33,106
Lease right-of-use assets	57,249		49,640
Goodwill	439,877		439,877
Intangible assets, net	87,382		101,940
Deferred income taxes	98,573		5,097
Other long-term assets	34,141		25,127
Total assets	$      4,182,717		$      3,816,465
Liabilities and stockholders' equity
Current liabilities:
Accounts payable	$           40,926		$           20,348
Accrued compensation and benefits	40,265		33,834
Accrued expenses and other current liabilities	32,860		36,109
Income tax payable	54,466		7,761
Deferred revenue	510,098		731,746
Lease liabilities	11,665		10,981
Total current liabilities	690,280		840,779
Deferred income taxes	1,546		2,216
Lease liabilities, noncurrent	50,225		43,607
Other long-term liabilities	21,874		18,226
Total liabilities	763,925		904,828
Stockholders' equity:
Class A common stock	2		2
Class B common stock	—		—
Additional paid-in capital	1,438,213		1,196,547
Accumulated other comprehensive loss	(45,642)		(11,958)
Retained earnings	2,026,219		1,727,046
Total stockholders' equity	3,418,792		2,911,637
Total liabilities and stockholders' equity	$      4,182,717		$      3,816,465

 

VEEVA SYSTEMS INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(In thousands, except per share data)
(Unaudited)
	Three months ended October 31,				Nine months ended October 31,
	2022		2021		2022		2021
Revenues:
Subscription services(3)	$ 441,569		$ 380,738		$  1,272,850		$  1,088,293
Professional services and other(4)	110,782		95,373		318,821		276,985
Total revenues	552,351		476,111		1,591,671		1,365,278
Cost of revenues(5):
Cost of subscription services	65,734		59,648		188,722		164,774
Cost of professional services and other	88,173		69,916		256,369		203,023
Total cost of revenues	153,907		129,564		445,091		367,797
Gross profit	398,444		346,547		1,146,580		997,481
Operating expenses(5):
Research and development	130,257		98,635		377,740		276,760
Sales and marketing	93,910		72,423		259,642		208,822
General and administrative	52,873		42,781		159,030		126,121
Total operating expenses	277,040		213,839		796,412		611,703
Operating income	121,404		132,708		350,168		385,778
Other income, net	12,458		824		23,565		7,054
Income before income taxes	133,862		133,532		373,733		392,832
Provision for income taxes	25,405		27,663		74,560		62,538
Net income	$ 108,457		$ 105,869		$ 299,173		$  330,294
Net income per share:
Basic	$       0.70		$       0.69		$       1.93		$       2.16
Diluted	$       0.67		$       0.65		$       1.84		$       2.03
Weighted-average shares used to compute net income per share:
Basic	155,392		153,514		154,958		153,020
Diluted	162,295		163,034		162,189		162,663
Other comprehensive income:
Net change in unrealized loss on available-for-sale investments	$  (17,499)		$    (2,741)		$  (30,722)		$    (4,044)
Net change in cumulative foreign currency translation loss	(808)		(308)		(2,962)		(2,686)
Comprehensive income	$   90,150		$ 102,820		$ 265,489		$  323,564
(3) Includes subscription services revenues from the following product areas:
Veeva Commercial Solutions	$ 239,276		$ 223,183		$ 703,356		$  649,156
Veeva R&D Solutions	202,293		157,555		569,494		439,137
Total subscription services	$ 441,569		$ 380,738		$  1,272,850		$  1,088,293
(4) Includes professional services and other revenues from the following product areas:
Veeva Commercial Solutions	$   45,283		$   41,675		$ 133,027		$  124,241
Veeva R&D Solutions	65,499		53,698		185,794		152,744
Total professional services and other	$ 110,782		$   95,373		$ 318,821		$  276,985
(5) Includes stock-based compensation as follows:
Cost of revenues:
Cost of subscription services	1,636		1,292		$     4,606		3,514
Cost of professional services and other	13,227		9,616		$   37,035		26,579
Research and development	37,415		22,311		102,139		61,463
Sales and marketing	23,576		15,102		64,500		41,772
General and administrative	17,333		13,724		48,083		39,591
Total stock-based compensation	$   93,187		$   62,045		$ 256,363		$  172,919

 

VEEVA SYSTEMS INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
	Three months ended October 31,				Nine months ended October 31,
	2022		2021		2022		2021
Cash flows from operating activities
Net income	$     108,457		$     105,869		$     299,173		$     330,294
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	7,157		6,899		21,443		20,407
Reduction of operating lease right-of-use assets	3,094		2,855		9,062		8,556
(Accretion) amortization of discount on short-term investments	(1,565)		1,574		(1,016)		4,859
Stock-based compensation	93,187		62,045		256,363		172,919
Amortization of deferred costs	5,378		6,597		17,107		19,426
Deferred income taxes	(31,056)		(2,021)		(84,369)		10,174
Loss (gain) on foreign currency from mark-to-market derivative	7		(65)		1,193		368
Bad debt expense	1,089		58		1,210		195
Changes in operating assets and liabilities:
Accounts receivable	69,272		72,147		387,066		352,470
Unbilled accounts receivable	(4,307)		(16,870)		(18,819)		(20,764)
Deferred costs	(5,376)		(3,353)		(11,876)		(11,445)
Other current and long-term assets	7,326		4,407		(3,750)		3,278
Accounts payable	10,002		4,028		20,663		2,265
Accrued expenses and other current liabilities	5,465		(537)		2,654		8,646
Income taxes payable	49,323		12,010		46,705		11,993
Deferred revenue	(174,544)		(141,083)		(222,013)		(199,042)
Operating lease liabilities	(2,624)		(2,941)		(7,736)		(8,602)
Other long-term liabilities	2,375		1,340		4,013		4,412
Net cash provided by operating activities	142,660		112,959		717,073		710,409
Cash flows from investing activities
Purchases of short-term investments	(710,833)		(256,008)		(1,716,250)		(935,626)
Maturities and sales of short-term investments	310,713		248,093		757,434		657,062
Acquisitions, net of cash and restricted cash acquired	—		—		—		(2,133)
Long-term assets	(5,609)		(2,314)		(9,605)		(10,295)
Net cash used in investing activities	(405,729)		(10,229)		(968,421)		(290,992)
Cash flows from financing activities
Changes in lease liabilities - finance leases	—		—		—		(384)
Proceeds from exercise of common stock options	4,575		5,368		30,116		43,310
Taxes paid related to net share settlement of equity awards	(15,118)		(21,414)		(47,251)		(36,510)
Net cash (used in) provided by financing activities	(10,543)		(16,046)		(17,135)		6,416
Effect of exchange rate changes on cash, cash equivalents, and restricted cash	(1,475)		(1,469)		(4,398)		(4,414)
Net change in cash, cash equivalents, and restricted cash	(275,087)		85,215		(272,881)		421,419
Cash, cash equivalents, and restricted cash at beginning of period	1,143,431		1,067,916		1,141,225		731,712
Cash, cash equivalents, and restricted cash at end of period	$     868,344		$  1,153,131		$     868,344		$  1,153,131
Supplemental disclosures of other cash flow information:
Excess tax benefits from employee stock plans	$            888		$       10,404		$         5,981		$       45,464

Non-GAAP Financial Measures
In Veeva's public disclosures, Veeva has provided non-GAAP measures, which it defines as financial information that has not been prepared in accordance with generally accepted accounting principles in the United States, or GAAP. In addition to its GAAP measures, Veeva uses these non-GAAP financial measures internally for budgeting and resource allocation purposes and in analyzing its financial results. For the reasons set forth below, Veeva believes that excluding the following items provides information that is helpful in understanding its operating results, evaluating its future prospects, comparing its financial results across accounting periods, and comparing its financial results to its peers, many of which provide similar non-GAAP financial measures.

• Excess tax benefits. Excess tax benefits from employee stock plans are dependent on previously agreed-upon equity grants to our employees, vesting of those grants, stock price, and exercise behavior of our employees, which can fluctuate from quarter to quarter. Because these fluctuations are not directly related to our business operations, Veeva excludes excess tax benefits for its internal management reporting processes. Veeva management also finds it useful to exclude excess tax benefits when assessing the level of cash provided by operating activities. Given the nature of the excess tax benefits, Veeva believes excluding it allows investors to make meaningful comparisons between our operating cash flows from quarter to quarter and those of other companies.
  
  
• Impact of tax legislation. Veeva excludes the direct cash payments associated with the newly effective tax legislation requiring the capitalization of certain research and development expenses for purposes of calculating non-GAAP operating cash flows. Veeva does not believe the impact resulting from changes in the tax treatment of research and development costs to be indicative of its operating performance, nor does Veeva management consider such impact in assessing the level of cash provided by operating activities. Accordingly, Veeva believes excluding the impact of this change in tax law provides for better evaluation of its current operating performance and comparison to past operating results.
  
  
• Stock-based compensation expenses. Veeva excludes stock-based compensation expenses primarily because they are non-cash expenses that Veeva excludes from its internal management reporting processes. Veeva's management also finds it useful to exclude these expenses when they assess the appropriate level of various operating expenses and resource allocations when budgeting, planning and forecasting future periods. Moreover, because of varying available valuation methodologies, subjective assumptions and the variety of award types that companies can use, Veeva believes excluding stock-based compensation expenses allows investors to make meaningful comparisons between our recurring core business operating results and those of other companies.
  
  
• Amortization of purchased intangibles. Veeva incurs amortization expense for purchased intangible assets in connection with acquisitions of certain businesses and technologies. Amortization of intangible assets is a non-cash expense and is inconsistent in amount and frequency because it is significantly affected by the timing, size of acquisitions and the inherent subjective nature of purchase price allocations. Because these costs have already been incurred and cannot be recovered, and are non-cash expenses, Veeva excludes these expenses for its internal management reporting processes. Veeva's management also finds it useful to exclude these charges when assessing the appropriate level of various operating expenses and resource allocations when budgeting, planning and forecasting future periods. Investors should note that the use of intangible assets contributed to Veeva's revenues earned during the periods presented and will contribute to Veeva's future period revenues as well.
  
  
• Income tax effects on the difference between GAAP and non-GAAP costs and expenses. The income tax effects that are excluded relate to the imputed tax impact on the difference between GAAP and non-GAAP costs and expenses due to stock-based compensation and purchased intangibles for GAAP and non-GAAP measures.

There are limitations to using non-GAAP financial measures because non-GAAP financial measures are not prepared in accordance with GAAP and may be different from non-GAAP financial measures provided by other companies. The non-GAAP financial measures are limited in value because they exclude certain items that may have a material impact upon our reported financial results. In addition, they are subject to inherent limitations as they reflect the exercise of judgments by Veeva's management about which items are adjusted to calculate its non-GAAP financial measures. Veeva compensates for these limitations by analyzing current and future results on a GAAP basis as well as a non-GAAP basis and also by providing GAAP measures in its public disclosures.

Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Veeva encourages its investors and others to review its financial information in its entirety, not to rely on any single financial measure to evaluate its business, and to view its non-GAAP financial measures in conjunction with the most directly comparable GAAP financial measures. A reconciliation of GAAP to the non-GAAP financial measures has been provided in the tables below.

 

VEEVA SYSTEMS INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(Dollars in thousands)
(Unaudited)
The following tables reconcile the specific items excluded from GAAP metrics in the calculation of non-GAAP metrics for the periods shown below:
Reconciliation of Net Cash Provided by Operating Activities (GAAP basis to non-GAAP basis)	Three months ended October 31,				Nine months ended October 31,
	2022		2021		2022		2021
Net cash provided by operating activities	$                 142,660		$  112,959		$                   717,073		$                   710,409
Excess tax benefits from employee stock plans	(888)		(10,404)		(5,981)		(45,464)
Impact of tax legislation	—		—		37,946		—
Net cash provided by operating activities on a non-GAAP basis	$                 141,772		$  102,555		$                   749,038		$                   664,945
Net cash used in investing activities	$                (405,729)		$   (10,229)		$                  (968,421)		$                  (290,992)
Net cash (used in) provided by financing activities	$                  (10,543)		$   (16,046)		$                    (17,135)		$                       6,416
Reconciliation of Financial Measures (GAAP basis to non-GAAP basis)	Three months ended October 31,				Nine months ended October 31,
	2022		2021		2022		2021
Cost of subscription services revenues on a GAAP basis	$                  65,734		$    59,648		$                   188,722		$                 164,774
Stock-based compensation expense	(1,636)		(1,292)		(4,606)		(3,514)
Amortization of purchased intangibles	(1,126)		(1,005)		(3,342)		(2,826)
Cost of subscription services revenues on a non-GAAP basis	$                  62,972		$    57,351		$                   180,774		$                 158,434
Gross margin on subscription services revenues on a GAAP basis	85.1 %		84.3 %		85.2 %		84.9 %
Stock-based compensation expense	0.4		0.3		0.3		0.3
Amortization of purchased intangibles	0.2		0.3		0.3		0.3
Gross margin on subscription services revenues on a non-GAAP basis	85.7 %		84.9 %		85.8 %		85.5 %
Cost of professional services and other revenues on a GAAP basis	$                 88,173		$    69,916		$                  256,369		$                 203,023
Stock-based compensation expense	(13,227)		(9,616)		(37,035)		(26,579)
Amortization of purchased intangibles	(139)		(139)		(411)		(411)
Cost of professional services and other revenues on a non-GAAP basis	$                 74,807		$    60,161		$                  218,923		$                 176,033
Gross margin on professional services and other revenues on a GAAP basis	20.4 %		26.7 %		19.6 %		26.7 %
Stock-based compensation expense	11.9		10.1		11.6		9.6
Amortization of purchased intangibles	0.2		0.1		0.1		0.1
Gross margin on professional services and other revenues on a non-GAAP basis	32.5 %		36.9 %		31.3 %		36.4 %
Gross profit on a GAAP basis	$                 398,444		$  346,547		$               1,146,580		$                 997,481
Stock-based compensation expense	14,863		10,908		41,641		30,093
Amortization of purchased intangibles	1,265		1,144		3,754		3,237
Gross profit on a non-GAAP basis	$                 414,572		$  358,599		$               1,191,975		$              1,030,811
Gross margin on total revenues on a GAAP basis	72.1 %		72.8 %		72.0 %		73.1 %
Stock-based compensation expense	2.7		2.3		2.6		2.2
Amortization of purchased intangibles	0.3		0.2		0.3		0.2
Gross margin on total revenues on a non-GAAP basis	75.1 %		75.3 %		74.9 %		75.5 %
Research and development expense on a GAAP basis	$                 130,257		$    98,635		$                  377,740		$                 276,760
Stock-based compensation expense	(37,415)		(22,311)		(102,139)		(61,463)
Amortization of purchased intangibles	(29)		(29)		(85)		(85)
Research and development expense on a non-GAAP basis	$                   92,813		$    76,295		$                  275,516		$                215,212
VEEVA SYSTEMS INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (continued)
(Dollars in thousands, except per share data)
(Unaudited)
	Three months ended October 31,				Nine months ended October 31,
	2022		2021		2022		2021
Sales and marketing expense on a GAAP basis	$                   93,910		$    72,423		$                 259,642		$                 208,822
Stock-based compensation expense	(23,576)		(15,102)		(64,500)		(41,772)
Amortization of purchased intangibles	(3,555)		(3,464)		(10,550)		(10,210)
Sales and marketing expense on a non-GAAP basis	$                   66,779		$    53,857		$                 184,592		$                 156,840
General and administrative expense on a GAAP basis	$                   52,873		$    42,781		$                 159,030		$                 126,121
Stock-based compensation expense	(17,333)		(13,724)		(48,083)		(39,591)
Amortization of purchased intangibles	(57)		(57)		(169)		(169)
General and administrative expense on a non-GAAP basis	$                   35,483		$    29,000		$                 110,778		$                   86,361
Operating expense on a GAAP basis	$                 277,040		$  213,839		$                 796,412		$                 611,703
Stock-based compensation expense	(78,324)		(51,137)		(214,722)		(142,826)
Amortization of purchased intangibles	(3,641)		(3,550)		(10,804)		(10,464)
Operating expense on a non-GAAP basis	$                 195,075		$  159,152		$                 570,886		$                 458,413
Operating income on a GAAP basis	$                 121,404		$  132,708		$                 350,168		$                 385,778
Stock-based compensation expense	93,187		62,045		256,363		172,919
Amortization of purchased intangibles	4,906		4,694		14,558		13,701
Operating income on a non-GAAP basis	$                 219,497		$  199,447		$                 621,089		$                 572,398
Operating margin on a GAAP basis	22.0 %		27.9 %		22.0 %		28.3 %
Stock-based compensation expense	16.9		13.0		16.1		12.7
Amortization of purchased intangibles	0.8		1.0		0.9		1.0
Operating margin on a non-GAAP basis	39.7 %		41.9 %		39.0 %		42.0 %
Net income on a GAAP basis	$                 108,457		$  105,869		$                 299,173		$                 330,294
Stock-based compensation expense	93,187		62,045		256,363		172,919
Amortization of purchased intangibles	4,906		4,694		14,558		13,701
Income tax effect on non-GAAP adjustments(6)	(23,306)		(14,394)		(60,817)		(59,147)
Net income on a non-GAAP basis	$                 183,244		$  158,214		$                 509,277		$                 457,767
Diluted net income per share on a GAAP basis	$                       0.67		$        0.65		$                       1.84		$                       2.03
Stock-based compensation expense	0.57		0.38		1.58		1.06
Amortization of purchased intangibles	0.03		0.03		0.09		0.08
Income tax effect on non-GAAP adjustments(6)	(0.14)		(0.09)		(0.37)		(0.36)
Diluted net income per share on a non-GAAP basis	$                      1.13		$       0.97		$                      3.14		$                       2.81

 

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(6)	For the three and nine months October 31, 2022 and 2021, management used an estimated annual effective non-GAAP tax rate of 21.0%.

 

View original content:https://www.prnewswire.com/news-releases/veeva-announces-fiscal-2023-third-quarter-results-301691971.html

SOURCE Veeva Systems

FAQ

What were Veeva's total revenues for Q3 2023?

Veeva's total revenues for Q3 2023 were $552.4 million, a 16% increase year-over-year.

How much did Veeva's subscription services revenues increase in Q3 2023?

Veeva's subscription services revenues increased by 16% year-over-year to $441.6 million in Q3 2023.

What is the non-GAAP net income reported by Veeva for Q3 2023?

Veeva reported a non-GAAP net income of $183.2 million for Q3 2023, a 16% increase year-over-year.

What is Veeva's guidance for total revenues for the fiscal year ending January 31, 2023?

Veeva's guidance for total revenues for the fiscal year ending January 31, 2023, is between $2,143 and $2,145 million.