Veeva Systems Inc. Reports Fiscal 2025 Third Quarter Results

Veeva Systems Inc., a leading provider of industry cloud solutions for the global life sciences industry, has released its financial results for the third quarter of fiscal 2025, ending October 31, 2024. The company reported strong performance across various financial metrics, reflecting its continued growth and operational discipline.

Financial Highlights

For the third quarter of fiscal 2025, Veeva Systems reported total revenues of $699.2 million, marking a 13% increase from $616.5 million in the same period last year. Subscription services revenues grew by 17% year-over-year to $580.9 million. The company also saw a significant rise in operating income, which increased by 41% to $181.4 million, and non-GAAP operating income, which rose by 30% to $304.0 million. Net income for the quarter was $185.8 million, up 37% from the previous year, while non-GAAP net income increased by 32% to $288.3 million. Fully diluted net income per share was $1.13, compared to $0.83 one year ago, and non-GAAP fully diluted net income per share was $1.75, up from $1.34.

Business and Operational Highlights

Veeva Systems continued to lead in CRM innovation and execution, with more than 30 customers now live on Vault CRM. The company is on track to complete seven migrations from Veeva CRM to Vault CRM by year-end. Additionally, the fourth top 20 biopharma has committed to using Vault CRM as its commercial foundation. Veeva also announced new AI capabilities, including CRM Bot, a GenAI assistant, and Voice Control, a voice interface leveraging Apple Intelligence, set to be available in late 2025.

Strategic Initiatives and Corporate Developments

Veeva Systems is focused on long-term growth and customer success. The company added more than 25 customers in the quarter, bringing the total to over 600 customers who have selected at least one of the seven Vault Quality Suite applications. This milestone underscores Veeva's commitment to building clear leadership in large markets through product excellence.

Management's Perspective

CEO Peter Gassner highlighted the quarter's innovation and execution, emphasizing the deepening of strategic relationships and the upcoming release of the next generation of CRM with Vault CRM Suite. CFO Brian Van Wagener noted that the results exceeded guidance on all metrics, reflecting operational discipline and the durability of Veeva's model. He expressed confidence in the company's product strategy, focused execution, and large market opportunity for sustained growth and profitability.

Future Outlook

For the fiscal fourth quarter ending January 31, 2025, Veeva Systems expects total revenues between $696 million and $699 million, with non-GAAP operating income of about $275 million and non-GAAP fully diluted net income per share of approximately $1.57. For the fiscal year ending January 31, 2025, the company projects total revenues between $2,722 million and $2,725 million, non-GAAP operating income of about $1,120 million, and non-GAAP fully diluted net income per share of approximately $6.44.

SEC Filing: VEEVA SYSTEMS INC [ VEEV ] - 8-K - Dec. 05, 2024