Veeva Announces Fourth Quarter and Fiscal Year 2025 Results
Veeva Systems (NYSE: VEEV) reported strong financial results for Q4 and fiscal year 2025. Total revenues reached $2,746.6M for FY2025, up 16% YoY, with Q4 revenues at $720.9M, up 14% YoY. Subscription services revenues grew 20% YoY to $2,284.7M for FY2025.
The company demonstrated significant profitability improvements with FY2025 operating income increasing 61% YoY to $691.4M. Net income rose 36% YoY to $714.1M, with diluted EPS of $4.32.
Veeva expanded its customer base to 1,477 total customers, with 1,125 in R&D Solutions and 730 in Commercial Solutions. The company's Vault CRM Suite saw notable adoption with over 50 customers live. Looking ahead, Veeva projects Q1 FY2026 revenues between $726-729M and FY2026 total revenues of $3,040-3,055M.
Veeva Systems (NYSE: VEEV) ha riportato risultati finanziari solidi per il Q4 e l'anno fiscale 2025. I ricavi totali hanno raggiunto $2,746.6M per l'anno fiscale 2025, in aumento del 16% rispetto all'anno precedente, con ricavi del Q4 pari a $720.9M, in crescita del 14% anno su anno. I ricavi dei servizi in abbonamento sono aumentati del 20% rispetto all'anno scorso, raggiungendo $2,284.7M per l'anno fiscale 2025.
La società ha dimostrato un significativo miglioramento della redditività con un reddito operativo FY2025 aumentato del 61% rispetto all'anno precedente, raggiungendo $691.4M. Il reddito netto è aumentato del 36% anno su anno a $714.1M, con un EPS diluito di $4.32.
Veeva ha ampliato la sua base clienti a un totale di 1,477 clienti, con 1,125 in Soluzioni R&D e 730 in Soluzioni Commerciali. La suite Vault CRM della società ha visto un'adozione notevole con oltre 50 clienti attivi. Guardando al futuro, Veeva prevede ricavi per il Q1 FY2026 tra $726-729M e ricavi totali per FY2026 di $3,040-3,055M.
Veeva Systems (NYSE: VEEV) reportó resultados financieros sólidos para el Q4 y el año fiscal 2025. Los ingresos totales alcanzaron $2,746.6M para el año fiscal 2025, un aumento del 16% interanual, con ingresos del Q4 de $720.9M, un crecimiento del 14% interanual. Los ingresos por servicios de suscripción crecieron un 20% interanual, alcanzando $2,284.7M para el año fiscal 2025.
La compañía demostró mejoras significativas en la rentabilidad, con un ingreso operativo FY2025 que aumentó un 61% interanual a $691.4M. El ingreso neto aumentó un 36% interanual a $714.1M, con un EPS diluido de $4.32.
Veeva amplió su base de clientes a un total de 1,477 clientes, con 1,125 en Soluciones de I+D y 730 en Soluciones Comerciales. La suite Vault CRM de la empresa vio una adopción notable con más de 50 clientes activos. Mirando hacia adelante, Veeva proyecta ingresos para el Q1 FY2026 entre $726-729M y ingresos totales para FY2026 de $3,040-3,055M.
Veeva Systems (NYSE: VEEV)는 2025 회계연도 4분기 및 전체 회계연도에 대한 강력한 재무 결과를 보고했습니다. 총 수익은 2025 회계연도에 $2,746.6M에 달해, 전년 대비 16% 증가했으며, 4분기 수익은 $720.9M으로, 전년 대비 14% 증가했습니다. 구독 서비스 수익은 전년 대비 20% 증가하여 2025 회계연도에 $2,284.7M에 도달했습니다.
회사는 2025 회계연도 운영 소득이 전년 대비 61% 증가하여 $691.4M에 달하는 등 상당한 수익성 개선을 보여주었습니다. 순이익은 전년 대비 36% 증가하여 $714.1M에 이르렀으며, 희석 EPS는 $4.32입니다.
Veeva는 총 1,477명의 고객으로 고객 기반을 확장했으며, R&D 솔루션에 1,125명, 상업 솔루션에 730명이 포함됩니다. 회사의 Vault CRM Suite는 50명이 넘는 고객이 활성화되면서 주목할 만한 채택을 보였습니다. 앞으로 Veeva는 2026 회계연도 1분기 수익을 $726-729M으로, 2026 회계연도 총 수익을 $3,040-3,055M으로 예상하고 있습니다.
Veeva Systems (NYSE: VEEV) a annoncé des résultats financiers solides pour le 4ème trimestre et l'exercice fiscal 2025. Les revenus totaux ont atteint 2,746.6M $ pour l'exercice fiscal 2025, en hausse de 16 % par rapport à l'année précédente, avec des revenus du 4ème trimestre à 720.9M $, en hausse de 14 % par rapport à l'année précédente. Les revenus des services d'abonnement ont augmenté de 20 % par rapport à l'année précédente, atteignant 2,284.7M $ pour l'exercice fiscal 2025.
L'entreprise a démontré des améliorations significatives de la rentabilité, avec un résultat opérationnel FY2025 en hausse de 61 % par rapport à l'année précédente, atteignant 691.4M $. Le résultat net a augmenté de 36 % par rapport à l'année précédente, atteignant 714.1M $, avec un BPA dilué de 4.32 $.
Veeva a élargi sa base de clients à un total de 1,477 clients, dont 1,125 dans les Solutions R&D et 730 dans les Solutions Commerciales. La suite Vault CRM de l'entreprise a connu une adoption notable avec plus de 50 clients actifs. En regardant vers l'avenir, Veeva prévoit des revenus pour le 1er trimestre FY2026 entre 726-729M $ et des revenus totaux pour FY2026 de 3,040-3,055M $.
Veeva Systems (NYSE: VEEV) hat starke finanzielle Ergebnisse für das 4. Quartal und das Geschäftsjahr 2025 berichtet. Die Gesamteinnahmen betrugen $2,746.6M für das Geschäftsjahr 2025, was einem Anstieg von 16% im Vergleich zum Vorjahr entspricht, während die Einnahmen im 4. Quartal bei $720.9M lagen, was einem Anstieg von 14% im Jahresvergleich entspricht. Die Einnahmen aus Abonnementsdiensten wuchsen um 20% im Jahresvergleich auf $2,284.7M für das Geschäftsjahr 2025.
Das Unternehmen zeigte signifikante Verbesserungen bei der Rentabilität, wobei das betriebliche Ergebnis FY2025 um 61% im Jahresvergleich auf $691.4M anstieg. Der Nettogewinn stieg um 36% im Jahresvergleich auf $714.1M, mit einem verwässerten EPS von $4.32.
Veeva hat seine Kundenbasis auf insgesamt 1,477 Kunden erweitert, darunter 1,125 im Bereich F&E-Lösungen und 730 in kommerziellen Lösungen. Die Vault CRM Suite des Unternehmens verzeichnete eine bemerkenswerte Akzeptanz mit über 50 aktiven Kunden. Ausblickend erwartet Veeva für das 1. Quartal FY2026 Einnahmen zwischen $726-729M und für das gesamte Geschäftsjahr 2026 Gesamteinnahmen von $3,040-3,055M.
- Revenue growth of 16% YoY to $2.746B in FY2025
- Operating income surge of 61% YoY to $691.4M
- Net income increase of 36% YoY to $714.1M
- Strong subscription revenue growth of 20% YoY
- Customer base expansion to 1,477 total customers
- Positive FY2026 guidance projecting continued growth
- Revenue growth deceleration in Q4 (14% YoY) compared to full year (16% YoY)
Insights
Veeva's Q4 and FY2025 results demonstrate exceptional financial performance across all key metrics. The company reported
Profitability metrics reveal even more impressive execution. Q4 operating income increased
The forward guidance signals continued momentum, with FY2026 revenue projected between
Strategic customer growth remains robust with 1,477 total customers across the portfolio. The successful launch of Vault CRM with over 50 customers now live demonstrates product innovation driving new adoption while the expansion in quality, safety, and clinical offerings shows cross-selling success. The mention of "one of Veeva's largest subscription orders ever" from a top 20 biopharma signals the company continues to penetrate deeper into enterprise accounts.
Veeva's results showcase a model SaaS execution strategy with an impressive balance of new customer acquisition and expansion within existing accounts. The
The company's product strategy shows disciplined evolution across three vectors: platform depth (expanding functionality within existing offerings), platform breadth (launching complementary products like Campaign Manager and Service Center), and vertical integration (controlling more of the life sciences value chain). This multi-pronged approach creates a powerful competitive moat as customers become increasingly embedded in Veeva's ecosystem.
Customer metrics reveal strong adoption patterns with 1,125 customers in R&D Solutions and 730 in Commercial Solutions, with obvious overlap showing cross-selling success. The migration of eight customers from Veeva CRM to Vault CRM demonstrates the company's ability to manage product transitions without disrupting the customer base or revenue stream - a notoriously difficult challenge in enterprise software.
The significant operating margin expansion (
Fiscal Year 2025 Total Revenues of
Q4 Total Revenues of
Fiscal Year 2025 Subscription Services Revenues of
Q4 Subscription Services Revenues of
"It was an outstanding quarter and year of execution and innovation in software, data, and business consulting," said CEO Peter Gassner. "These advances set us up for the significant opportunity ahead to help life sciences bring better treatments to more patients, with greater speed and efficiency. I am excited to see what we can accomplish with our customers and the Veeva team in the coming years."
Fiscal 2025 Fourth Quarter Results:
- Revenues(1): Total revenues for the fourth quarter were
$720.9 million $630.6 million 14% year over year. Subscription services revenues for the fourth quarter were$608.6 million $521.5 million 17% year over year. - Operating Income and Non-GAAP Operating Income(1)(2): Fourth quarter operating income was
$188.4 million $135.3 million 39% year over year. Non-GAAP operating income for the fourth quarter was$307.7 million $239.1 million 29% year over year. - Net Income and Non-GAAP Net Income(1)(2): Fourth quarter net income was
$195.6 million $147.4 million 33% year over year. Non-GAAP net income for the fourth quarter was$287.9 million $226.3 million 27% year over year. - Net Income per Share and Non-GAAP Net Income per Share(1)(2): For the fourth quarter, fully diluted net income per share was
$1.18 $0.90 $1.74 $1.38
Fiscal Year 2025 Results:
- Revenues(1): Total revenues for the fiscal year ended January 31, 2025 were
$2,746.6 million $2,363.7 million 16% year over year. Subscription services revenues were$2,284.7 million $1,901.6 million 20% year over year. - Operating Income and Non-GAAP Operating Income(1)(2): Fiscal year 2025 operating income was
$691.4 million $429.3 million 61% year over year. Non-GAAP operating income for fiscal year 2025 was$1,152.3 million $842.5 million 37% year over year. - Net Income and Non-GAAP Net Income(1)(2): Fiscal year 2025 net income was
$714.1 million $525.7 million 36% year over year. Non-GAAP net income for fiscal year 2025 was$1,090.4 million $791.0 million 38% year over year. - Net Income per Share and Non-GAAP Net Income per Share(1)(2): For fiscal year 2025, fully diluted net income per share was
$4.32 $3.22 $6.60 $4.84
"We closed the year with results ahead of guidance for all metrics," said CFO Brian Van Wagener. "Our execution continues to be strong and we see momentum across our product areas, positioning us well to consistently deliver on our goals."
Recent Highlights:
- Strong Finish to an Important Year Building the Industry Cloud for Life Sciences – Through customer success and product excellence, Veeva deepened its strategic partnerships across all customer segments – from top 20 biopharmas to emerging biotechs. Expanding with both new and existing customers, Veeva finished the year with a total of 1,477 customers, including 1,125 in Veeva R&D Solutions and 730 in Veeva Commercial Solutions.(3)(4)
- Vault CRM Suite Delivers on Innovation Roadmap – The December release of Vault CRM represents the most advanced CRM for life sciences, which includes the full functionality of Veeva CRM, additional new capabilities, and a strong innovation roadmap ahead with AI coming to Vault CRM this year. The company also expanded the Vault CRM Suite in the quarter with the release of Campaign Manager, following the August availability of Service Center. More than 50 customers are now live on Vault CRM, and eight customers have migrated from Veeva CRM to Vault CRM with more underway.
- Veeva Becoming the Standard for Drug Development and Quality – There were a number of notable wins, expansions, and go-lives in Q4 in clinical, regulatory, safety, and quality. Quality Cloud added 41 new customers and more than 20 existing customers expanded their use of Veeva Quality Cloud products. The fourth top 20 biopharma selected Veeva Safety. In February, the second top 20 biopharma went live with Veeva Safety and is now rolling out the full Safety Suite. Expansion across clinical continued in Q4 as well, including a top 20 biopharma taking a full Clinical Platform approach – adding six major clinical applications all at once – representing one of Veeva's largest subscription orders ever.
Financial Outlook:
Veeva is providing guidance for its fiscal first quarter ending April 30, 2025 as follows:
- Total revenues between
$726 $729 million - Non-GAAP operating income between
$307 $309 million - Non-GAAP fully diluted net income per share between
$1.74 $1.75
Veeva is providing guidance for its fiscal year ending January 31, 2026 as follows:
- Total revenues between
$3,040 $3,055 million - Non-GAAP operating income of about
$1,300 million - Non-GAAP fully diluted net income per share of approximately
$7.32
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, March 5, 2025, and a replay of the call will be available on Veeva's investor relations website.
What: | Veeva Systems Fourth Quarter and Fiscal Year 2025 Results Conference Call |
When: | Wednesday, March 5, 2025 |
Time: | 2:00 p.m. PT (5:00 p.m. ET) |
Online Registration: | |
Webcast: |
(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 fourth quarter and fiscal year ended January 31, 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) | The combined customer counts for Commercial Solutions and R&D Solutions exceed the total customer count in each year because some customers subscribe to products in both areas. Commercial Solutions consist of our Veeva Commercial Cloud, Veeva Data Cloud, and Veeva Claims solutions. R&D Solutions consist of our Veeva Development Cloud, Veeva RegulatoryOne, and Veeva QualityOne solutions. | |||||||
(4) | Customer count totals are presented net of customer attrition during the period. | |||||||
(5) | Veeva is not able, at this time, to provide GAAP targets for operating income and fully diluted net income per share for the first fiscal quarter ending April 30, 2025 or the fiscal year ending January 31, 2026 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 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 March 5, 2025, 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, availability, security, or privacy of our products, competitive factors, customer decisions and priorities, developments that impact the life sciences industry (including regulatory, funding, or policy changes), general macroeconomic and geopolitical events (including inflationary pressures, changes in interest rates, changes in trade policy or practices, currency exchange fluctuations, and geopolitical conflicts), 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 36 and 37 in our filing on Form 10-Q for the period ended October 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-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: | Media Contact: | |
Gunnar Hansen | Maria Scurry | |
Veeva Systems Inc. | Veeva Systems Inc. | |
267-460-5839 | 781-366-7617 | |
VEEVA SYSTEMS INC. | |||
January 31, | January 31, | ||
Assets | |||
Current assets: | |||
Cash and cash equivalents | $ 1,118,785 | $ 703,487 | |
Short-term investments | 4,031,442 | 3,324,269 | |
Accounts receivable, net | 1,016,356 | 852,172 | |
Unbilled accounts receivable | 40,761 | 36,365 | |
Prepaid expenses and other current assets | 101,458 | 86,918 | |
Total current assets | 6,308,802 | 5,003,211 | |
Property and equipment, net | 55,912 | 58,532 | |
Deferred costs, net | 26,383 | 23,916 | |
Lease right-of-use assets | 63,863 | 45,602 | |
Goodwill | 439,877 | 439,877 | |
Intangible assets, net | 44,460 | 63,017 | |
Deferred income taxes | 343,919 | 233,463 | |
Other long-term assets | 56,540 | 43,302 | |
Total assets | $ 7,339,756 | $ 5,910,920 | |
Liabilities and stockholders' equity | |||
Current liabilities: | |||
Accounts payable | $ 30,447 | $ 31,513 | |
Accrued compensation and benefits | 39,429 | 43,433 | |
Accrued expenses and other current liabilities | 35,557 | 32,980 | |
Income tax payable | 9,024 | 11,862 | |
Deferred revenue | 1,273,978 | 1,049,761 | |
Lease liabilities | 9,969 | 9,334 | |
Total current liabilities | 1,398,404 | 1,178,883 | |
Deferred income taxes | 587 | 2,052 | |
Long-term lease liabilities | 65,806 | 46,441 | |
Other long-term liabilities | 42,586 | 38,720 | |
Total liabilities | 1,507,383 | 1,266,096 | |
Stockholders' equity: | |||
Common stock | 2 | 2 | |
Additional paid-in capital | 2,386,192 | 1,915,002 | |
Accumulated other comprehensive loss | (8,416) | (10,637) | |
Retained earnings | 3,454,595 | 2,740,457 | |
Total stockholders' equity | 5,832,373 | 4,644,824 | |
Total liabilities and stockholders' equity | $ 7,339,756 | $ 5,910,920 | |
VEEVA SYSTEMS INC. | |||||||
Three months ended | Fiscal year ended | ||||||
2025 | 2024 | 2025 | 2024 | ||||
Revenues: | |||||||
Subscription services(6) | $ 608,577 | $ 521,498 | $ 2,284,659 | $ 1,901,593 | |||
Professional services and other(7) | 112,309 | 109,120 | 461,960 | 462,080 | |||
Total revenues | 720,886 | 630,618 | 2,746,619 | 2,363,673 | |||
Cost of revenues(8): | |||||||
Cost of subscription services | 83,493 | 77,398 | 323,070 | 290,577 | |||
Cost of professional services and other | 97,498 | 96,530 | 376,566 | 386,714 | |||
Total cost of revenues | 180,991 | 173,928 | 699,636 | 677,291 | |||
Gross profit | 539,895 | 456,690 | 2,046,983 | 1,686,382 | |||
Operating expenses(8): | |||||||
Research and development | 181,527 | 163,565 | 693,078 | 629,031 | |||
Sales and marketing | 99,202 | 99,203 | 396,726 | 381,472 | |||
General and administrative | 70,743 | 58,658 | 265,744 | 246,545 | |||
Total operating expenses | 351,472 | 321,426 | 1,355,548 | 1,257,048 | |||
Operating income | 188,423 | 135,264 | 691,435 | 429,334 | |||
Other income, net | 56,707 | 47,429 | 227,946 | 158,689 | |||
Income before income taxes | 245,130 | 182,693 | 919,381 | 588,023 | |||
Income tax provision | 49,505 | 35,295 | 205,243 | 62,318 | |||
Net income | $ 195,625 | $ 147,398 | $ 714,138 | $ 525,705 | |||
Net income per share: | |||||||
Basic | $ 1.20 | $ 0.92 | $ 4.41 | $ 3.27 | |||
Diluted | $ 1.18 | $ 0.90 | $ 4.32 | $ 3.22 | |||
Weighted-average shares used to compute net income per share: | |||||||
Basic | 162,391 | 161,088 | 161,879 | 160,532 | |||
Diluted | 165,674 | 164,071 | 165,232 | 163,486 | |||
Other comprehensive income: | |||||||
Net change in unrealized gain (loss) on available-for-sale investments | $ (1,482) | $ 28,135 | $ 4,094 | $ 22,038 | |||
Net change in cumulative foreign currency translation loss | (475) | (1,234) | (1,873) | (1,546) | |||
Comprehensive income | $ 193,668 | $ 174,299 | $ 716,359 | $ 546,197 | |||
(6) Includes subscription services revenues from the following product areas: | |||||||
Veeva Commercial Solutions | $ 293,385 | $ 261,882 | $ 1,104,888 | $ 995,803 | |||
Veeva R&D Solutions | 315,192 | 259,616 | 1,179,771 | 905,790 | |||
Total subscription services | $ 608,577 | $ 521,498 | $ 2,284,659 | $ 1,901,593 | |||
(7) Includes professional services and other revenues from the following product areas: | |||||||
Veeva Commercial Solutions | $ 45,607 | $ 45,899 | $ 185,302 | $ 185,981 | |||
Veeva R&D Solutions | 66,702 | 63,221 | 276,658 | 276,099 | |||
Total professional services and other | $ 112,309 | $ 109,120 | $ 461,960 | $ 462,080 | |||
(8) Includes stock-based compensation as follows: | |||||||
Cost of revenues: | |||||||
Cost of subscription services | $ 1,699 | $ 1,626 | $ 6,591 | $ 6,483 | |||
Cost of professional services and other | 12,737 | 13,356 | 51,377 | 53,237 | |||
Research and development | 47,160 | 42,967 | 185,901 | 172,876 | |||
Sales and marketing | 22,250 | 23,781 | 90,178 | 90,865 | |||
General and administrative | 31,358 | 17,163 | 103,303 | 70,272 | |||
Total stock-based compensation | $ 115,204 | $ 98,893 | $ 437,350 | $ 393,733 | |||
VEEVA SYSTEMS INC. | |||
Fiscal year ended | |||
2025 | 2024 | ||
Cash flows from operating activities | |||
Net income | $ 714,138 | $ 525,705 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 39,383 | 32,628 | |
Reduction of operating lease right-of-use assets | 11,547 | 11,691 | |
Accretion of discount on short-term investments | (24,443) | (26,515) | |
Stock-based compensation | 437,350 | 393,733 | |
Amortization of deferred costs | 15,528 | 18,177 | |
Deferred income taxes | (112,273) | (105,374) | |
Other, net | 1,201 | 471 | |
Changes in operating assets and liabilities: | |||
Accounts receivable | (164,572) | (149,810) | |
Unbilled accounts receivable | (4,396) | 45,809 | |
Deferred costs | (17,995) | (10,268) | |
Prepaid expenses and other current and long-term assets | (17,453) | 414 | |
Accounts payable | (1,961) | (10,230) | |
Accrued expenses and other current liabilities | (1,414) | (4,249) | |
Income tax payable | (2,838) | 6,916 | |
Deferred revenue | 227,838 | 188,164 | |
Lease liabilities | (9,835) | (6,879) | |
Other long-term liabilities | 246 | 956 | |
Net cash provided by operating activities | 1,090,051 | 911,339 | |
Cash flows from investing activities | |||
Purchases of short-term investments | (2,581,968) | (2,697,968) | |
Maturities and sales of short-term investments | 1,902,349 | 1,647,813 | |
Long-term assets | (20,519) | (26,196) | |
Net cash used in investing activities | (700,138) | (1,076,351) | |
Cash flows from financing activities | |||
Proceeds from exercise of common stock options | 105,538 | 62,687 | |
Taxes paid related to net share settlement of equity awards | (79,423) | (78,875) | |
Net cash provided by (used in) financing activities | 26,115 | (16,188) | |
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | (1,735) | (1,780) | |
Net change in cash, cash equivalents, and restricted cash | 414,293 | (182,980) | |
Cash, cash equivalents, and restricted cash at beginning of period | 706,670 | 889,650 | |
Cash, cash equivalents, and restricted cash at end of period | $ 1,120,963 | $ 706,670 | |
Supplemental disclosures of other cash flow information: | |||
Excess tax benefits from employee stock plans | $ 8,932 | $ 71,049 | |
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
- 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.
- 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.
- Litigation settlement. We exclude costs related to the settlement of certain litigation matters because they are non-recurring and outside the ordinary course of business. Because these costs are unrelated to our day-to-day business operations, we believe excluding them enables more consistent evaluation of our operating results.
- 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. | |||||||
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 | Fiscal year ended | |||||
2025 | 2024 | 2025 | 2024 | ||||
Net cash provided by operating activities on a GAAP basis | $ 69,544 | $ 57,769 | $ 1,090,051 | $ 911,339 | |||
Excess tax benefits from employee stock plans | (3,772) | (2,474) | (8,932) | (71,049) | |||
Net cash provided by operating activities on a non-GAAP basis | $ 65,772 | $ 55,295 | $ 1,081,119 | $ 840,290 | |||
Net cash used in investing activities on a GAAP basis | $ (15,692) | $ (86,703) | $ (700,138) | ||||
Net cash provided by (used in) financing activities on a GAAP basis | $ 20,811 | $ (10,484) | $ 26,115 | $ (16,188) | |||
Reconciliation of Financial Measures (GAAP basis to non-GAAP basis) | Three months ended | Fiscal year ended | |||||
2025 | 2024 | 2025 | 2024 | ||||
Cost of subscription services revenues on a GAAP basis | $ 83,493 | $ 77,398 | $ 323,070 | $ 290,577 | |||
Stock-based compensation expense | (1,699) | (1,626) | (6,591) | (6,483) | |||
Amortization of purchased intangibles | (1,045) | (1,125) | (4,310) | (4,468) | |||
Cost of subscription services revenues on a non-GAAP basis | $ 80,749 | $ 74,647 | $ 312,169 | $ 279,626 | |||
Gross margin on subscription services revenues on a GAAP basis | 86.3 % | 85.2 % | 85.9 % | 84.7 % | |||
Stock-based compensation expense | 0.3 | 0.3 | 0.3 | 0.4 | |||
Amortization of purchased intangibles | 0.1 | 0.2 | 0.1 | 0.2 | |||
Gross margin on subscription services revenues on a non-GAAP basis | 86.7 % | 85.7 % | 86.3 % | 85.3 % | |||
Cost of professional services and other revenues on a GAAP basis | $ 97,498 | $ 96,530 | $ 376,566 | $ 386,714 | |||
Stock-based compensation expense | (12,737) | (13,356) | (51,377) | (53,237) | |||
Amortization of purchased intangibles | (138) | (139) | (550) | (550) | |||
Cost of professional services and other revenues on a non-GAAP basis | $ 84,623 | $ 83,035 | $ 324,639 | $ 332,927 | |||
Gross margin on professional services and other revenues on a GAAP basis | 13.2 % | 11.5 % | 18.5 % | 16.3 % | |||
Stock-based compensation expense | 11.3 | 12.3 | 11.1 | 11.6 | |||
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 | 24.7 % | 23.9 % | 29.7 % | 28.0 % | |||
Gross profit on a GAAP basis | $ 539,895 | $ 456,690 | $ 2,046,983 | $ 1,686,382 | |||
Stock-based compensation expense | 14,436 | 14,982 | 57,968 | 59,720 | |||
Amortization of purchased intangibles | 1,183 | 1,264 | 4,860 | 5,018 | |||
Gross profit on a non-GAAP basis | $ 555,514 | $ 472,936 | $ 2,109,811 | $ 1,751,120 | |||
Gross margin on total revenues on a GAAP basis | 74.9 % | 72.4 % | 74.5 % | 71.3 % | |||
Stock-based compensation expense | 2.0 | 2.4 | 2.1 | 2.6 | |||
Amortization of purchased intangibles | 0.2 | 0.2 | 0.2 | 0.2 | |||
Gross margin on total revenues on a non-GAAP basis | 77.1 % | 75.0 % | 76.8 % | 74.1 % | |||
Research and development expense on a GAAP basis | $ 181,527 | $ 163,565 | $ 693,078 | $ 629,031 | |||
Stock-based compensation expense | (47,160) | (42,967) | (185,901) | (172,876) | |||
Amortization of purchased intangibles | — | (29) | (85) | (114) | |||
Research and development expense on a non-GAAP basis | $ 134,367 | $ 120,569 | $ 507,092 | $ 456,041 | |||
Three months ended | Fiscal year ended | ||||||
2025 | 2024 | 2025 | 2024 | ||||
Sales and marketing expense on a GAAP basis | $ 99,202 | $ 99,203 | $ 396,726 | $ 381,472 | |||
Stock-based compensation expense | (22,250) | (23,781) | (90,178) | (90,865) | |||
Amortization of purchased intangibles | (2,885) | (3,552) | (13,443) | (14,102) | |||
Sales and marketing expense on a non-GAAP basis | $ 74,067 | $ 71,870 | $ 293,105 | $ 276,505 | |||
General and administrative expense on a GAAP basis | $ 70,743 | $ 58,658 | $ 265,744 | $ 246,545 | |||
Stock-based compensation expense | (31,358) | (17,163) | (103,303) | (70,272) | |||
Amortization of purchased intangibles | — | (56) | (170) | (225) | |||
Litigation settlement | — | — | (5,000) | — | |||
General and administrative expense on a non-GAAP basis | $ 39,385 | $ 41,439 | $ 157,271 | $ 176,048 | |||
Operating expense on a GAAP basis | $ 351,472 | $ 321,426 | $ 1,355,548 | $ 1,257,048 | |||
Stock-based compensation expense | (100,768) | (83,911) | (379,382) | (334,013) | |||
Amortization of purchased intangibles | (2,885) | (3,637) | (13,698) | (14,441) | |||
Litigation settlement | — | — | (5,000) | — | |||
Operating expense on a non-GAAP basis | $ 247,819 | $ 233,878 | $ 957,468 | $ 908,594 | |||
Operating income on a GAAP basis | $ 188,423 | $ 135,264 | $ 691,435 | $ 429,334 | |||
Stock-based compensation expense | 115,204 | 98,893 | 437,350 | 393,733 | |||
Amortization of purchased intangibles | 4,068 | 4,901 | 18,558 | 19,459 | |||
Litigation settlement | — | — | 5,000 | — | |||
Operating income on a non-GAAP basis | $ 307,695 | $ 239,058 | $ 1,152,343 | $ 842,526 | |||
Operating margin on a GAAP basis | 26.1 % | 21.4 % | 25.2 % | 18.2 % | |||
Stock-based compensation expense | 16.0 | 15.7 | 15.9 | 16.6 | |||
Amortization of purchased intangibles | 0.6 | 0.8 | 0.7 | 0.8 | |||
Litigation settlement | — | — | 0.2 | — | |||
Operating margin on a non-GAAP basis | 42.7 % | 37.9 % | 42.0 % | 35.6 % | |||
Net income on a GAAP basis | $ 195,625 | $ 147,398 | $ 714,138 | $ 525,705 | |||
Stock-based compensation expense | 115,204 | 98,893 | 437,350 | 393,733 | |||
Amortization of purchased intangibles | 4,068 | 4,901 | 18,558 | 19,459 | |||
Litigation settlement | — | — | 5,000 | — | |||
Income tax effect on non-GAAP adjustments(9) | (27,020) | (24,867) | (84,618) | (147,937) | |||
Net income on a non-GAAP basis | $ 287,877 | $ 226,325 | $ 1,090,428 | $ 790,960 | |||
Diluted net income per share on a GAAP basis | $ 1.18 | $ 0.90 | $ 4.32 | $ 3.22 | |||
Stock-based compensation expense | 0.70 | 0.60 | 2.65 | 2.41 | |||
Amortization of purchased intangibles | 0.02 | 0.03 | 0.11 | 0.12 | |||
Litigation settlement | — | — | 0.03 | — | |||
Income tax effect on non-GAAP adjustments(9) | (0.16) | (0.15) | (0.51) | (0.91) | |||
Diluted net income per share on a non-GAAP basis | $ 1.74 | $ 1.38 | $ 6.60 | $ 4.84 | |||
(9) | For the three months and fiscal years ended January 31, 2025 and 2024, management used an estimated annual effective non-GAAP tax rate of | |||||||
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SOURCE Veeva Systems
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