Veeva Systems Inc. (VEEV) Bundle
A Brief History of Veeva Systems Inc.
Veeva Systems Inc. (VEEV), established in 2007, specializes in cloud-based software solutions for the life sciences industry. The company went public in 2013, trading on the New York Stock Exchange (NYSE) under the symbol VEEV.
Recent Financial Performance
As of July 31, 2024, Veeva reported total revenues of $1,050 million for the three months ended, reflecting a year-over-year increase from $1,021 million in the same period of 2023. For the six months ended July 31, 2024, total revenues reached $2,364 million, up from $2,155 million in 2023, marking a 10% year-over-year growth.
Revenue Breakdown
For the fiscal year ending January 31, 2024, Veeva's subscription services revenues were $1,902 million, a 10% increase from $1,733 million in the previous year. The following table summarizes the revenue distribution:
| Revenue Source | FY 2024 (in millions) | FY 2023 (in millions) | % Change |
|---|---|---|---|
| Subscription Services | $1,902 | $1,733 | 10% |
| Professional Services | $462 | $422 | 9% |
Net Income and Earnings Per Share
For the three months ended July 31, 2024, Veeva reported a net income of $171 million, or $1.04 per diluted share, compared to a net income of $111 million, or $0.68 per diluted share for the same period in 2023. The six-month results showed a net income of $332 million, translating to $2.02 per diluted share, up from $243 million, or $1.49 per diluted share in the prior year.
Operating Expenses
Operating expenses for the three months ended July 31, 2024, were as follows:
| Expense Type | Q2 FY 2024 (in millions) | Q2 FY 2023 (in millions) |
|---|---|---|
| Research and Development | $176 | $157 |
| Sales and Marketing | $101 | $97 |
| General and Administrative | $61 | $63 |
Cash Flow and Liquidity
Veeva reported net cash provided by operating activities of $93 million for the three months ended July 31, 2024, down from $265 million in the same period of 2023. For the six months ended July 31, 2024, net cash provided was $856 million, compared to $771 million in 2023.
The company's cash, cash equivalents, and short-term investments totaled $4.9 billion as of July 31, 2024, with $67 million held outside of the United States.
Stock Performance
As of July 31, 2024, Veeva had 161,830,287 shares of common stock outstanding. The diluted earnings per share were $1.04 for Q2 FY 2024, compared to $0.68 in Q2 FY 2023.
Market Position and Future Outlook
Veeva continues to innovate within the life sciences sector, focusing on enhancing its cloud-based solutions. The company anticipates growth in its R&D Solutions segment and remains committed to expanding its customer base, which stood at 1,432 as of January 31, 2024.
Overall, Veeva's financial health, along with its strategic focus on the life sciences industry, positions it favorably for continued growth in the coming years.
A Who Owns Veeva Systems Inc. (VEEV)
Major Shareholders
As of 2024, Veeva Systems Inc. (VEEV) has a diverse ownership structure comprising institutional and individual shareholders. The largest shareholders include:
| Shareholder | Ownership Percentage | Type |
|---|---|---|
| Veeva Systems Inc. (Executive Officers & Directors) | ~3.2% | Insider Ownership |
| The Vanguard Group, Inc. | ~9.5% | Institutional Investor |
| BlackRock, Inc. | ~8.7% | Institutional Investor |
| Fidelity Investments | ~7.1% | Institutional Investor |
| State Street Corporation | ~4.9% | Institutional Investor |
| Other Institutional Investors | ~66.6% | Various |
Insider Ownership
Insider ownership includes executives and board members who maintain a significant stake in the company. The ownership dynamics changed following the conversion of Class B shares to Class A shares in October 2023.
| Insider Name | Position | Shares Owned |
|---|---|---|
| Peter Gassner | CEO | ~1,500,000 |
| Other Executives | Various | ~2,700,000 |
Stock Performance and Market Capitalization
As of July 31, 2024, Veeva Systems Inc. had a market capitalization of approximately $34.2 billion. The stock price ranged between $172.00 and $236.90 over the past year.
| Metric | Value |
|---|---|
| Current Stock Price | $212.00 |
| 52-Week High | $236.90 |
| 52-Week Low | $172.00 |
| Market Capitalization | $34.2 billion |
Institutional Ownership Trends
Institutional ownership has seen a steady increase, with major players holding significant stakes. This trend indicates strong institutional conviction in Veeva's growth potential.
| Year | Institutional Ownership Percentage |
|---|---|
| 2022 | ~65% |
| 2023 | ~67% |
| 2024 | ~66.6% |
Recent Developments
Veeva's strategic initiatives and partnerships have attracted attention from institutional investors, contributing to increased shareholding in the company. The focus on expanding its cloud-based solutions in the life sciences industry has bolstered investor confidence.
| Development | Impact |
|---|---|
| Acquisition of companies in R&D | Enhanced product offerings |
| Partnerships with major pharma | Increased market share |
Veeva Systems Inc. (VEEV) Mission Statement
Overview
Veeva Systems Inc. is dedicated to providing cloud-based solutions for the life sciences industry. The company's mission is to help customers bring products to market faster, while ensuring compliance and improving operational efficiency.
Mission Statement
Veeva's mission is to “transform the life sciences industry through the power of cloud technology.” The company aims to provide innovative solutions that meet the unique needs of its customers, helping them to streamline their processes and achieve regulatory compliance.
Financial Performance
As of July 31, 2024, Veeva Systems reported significant financial metrics, showcasing its growth and operational efficiency. The following table summarizes key financial data:
| Metric | Q2 2024 (3 months) | Q2 2023 (3 months) | Change (%) |
|---|---|---|---|
| Total Revenues | $676,181,000 | $590,225,000 | 14.6% |
| Subscription Services Revenue | $561,277,000 | $470,637,000 | 19.2% |
| Net Income | $171,041,000 | $111,628,000 | 53.3% |
| Operating Income | $166,487,000 | $104,049,000 | 60.0% |
| Gross Profit | $505,809,000 | $421,207,000 | 20.0% |
Market Position
Veeva Systems has established a strong presence in the life sciences industry. As of January 31, 2024, the company served approximately 1,432 customers, including 693 in Commercial Solutions and 1,078 in R&D Solutions. This customer base is indicative of Veeva's commitment to providing tailored solutions that meet the evolving needs of the industry.
Investment in R&D
The company continues to invest heavily in research and development to enhance its product offerings. For the six months ended July 31, 2024, Veeva reported R&D expenses of $339,140,000, a 11.5% increase from the previous year. This investment is crucial for maintaining a competitive edge in the rapidly evolving technology landscape.
Geographic Revenue Breakdown
The geographic distribution of Veeva's revenues provides insight into its operational reach:
| Region | Q2 2024 Revenue (% of Total) |
|---|---|
| North America | 59% |
| Europe | 28% |
| Other Locations | 13% |
Stock Performance
As of July 31, 2024, Veeva's stock performance reflects its strong financial results. The diluted net income per share was reported at $1.04, up from $0.68 in the prior year quarter, representing a significant growth of 52.9%.
Future Outlook
Looking ahead, Veeva Systems Inc. plans to continue its strategic investments in technology and service offerings, aiming to enhance customer satisfaction and expand its market share within the life sciences sector. The company’s focus on cloud technology positions it well for sustained growth in the coming years.
How Veeva Systems Inc. (VEEV) Works
Business Model
Veeva Systems Inc. operates primarily in the life sciences industry, providing cloud-based software solutions designed for the pharmaceutical and biotechnology sectors. The company generates revenues from two main segments: subscription services and professional services.
- Subscription Services: These account for approximately 83% of total revenues as of July 31, 2024, totaling $561.3 million for the three months ended July 31, 2024.
- Professional Services: Comprising around 17% of total revenues, this segment generated $114.9 million in the same period.
| Revenue Type | Q2 2024 Revenue (in millions) | Q2 2023 Revenue (in millions) | Percentage Change |
|---|---|---|---|
| Subscription Services | $561.3 | $470.6 | 19% |
| Professional Services | $114.9 | $119.6 | -4% |
| Total Revenues | $676.2 | $590.2 | 15% |
Financial Performance
For the six months ended July 31, 2024, Veeva reported total revenues of $1.33 billion, an increase of 19% year-over-year. The growth in subscription services revenues was driven by increased customer adoption of their cloud solutions and a price adjustment reflective of inflation.
- Net income for Q2 2024 was $171.0 million, compared to $111.6 million in Q2 2023, marking a growth of 53%.
- Net income for the six months ended July 31, 2024, stood at $332.7 million, compared to $243.1 million in the previous year.
| Metric | Q2 2024 | Q2 2023 | Six Months 2024 | Six Months 2023 |
|---|---|---|---|---|
| Net Income | $171.0 million | $111.6 million | $332.7 million | $243.1 million |
| Net Income per Share (Diluted) | $1.04 | $0.68 | $2.02 | $1.49 |
Operating Expenses
Operating expenses for Q2 2024 totaled $339.3 million, reflecting an increase from $317.2 million in Q2 2023. The main components are:
- Research and Development: $176.4 million (up 12% year-over-year)
- Sales and Marketing: $101.5 million (up 5%)
- General and Administrative: $61.4 million (down 2%)
| Expense Type | Q2 2024 (in millions) | Q2 2023 (in millions) | Percentage Change |
|---|---|---|---|
| Research and Development | $176.4 | $157.2 | 12% |
| Sales and Marketing | $101.5 | $97.0 | 5% |
| General and Administrative | $61.4 | $62.9 | -2% |
| Total Operating Expenses | $339.3 | $317.2 | 7% |
Cash Flow and Liquidity
As of July 31, 2024, Veeva reported cash, cash equivalents, and short-term investments totaling $4.9 billion. The cash flows from operating activities for the six months ended July 31, 2024, were $856.4 million, compared to $771.0 million in the same period last year.
- Net cash used in investing activities for Q2 2024 was $114.0 million, a significant decrease from $619.0 million in Q2 2023.
- Net cash used in financing activities was $11.5 million for Q2 2024, compared to a cash inflow of $2.6 million in Q2 2023.
| Cash Flow Item | Q2 2024 (in millions) | Q2 2023 (in millions) |
|---|---|---|
| Net Cash Provided by Operating Activities | $92.9 | $265.0 |
| Net Cash Used in Investing Activities | ($114.0) | ($619.0) |
| Net Cash (Used in) Provided by Financing Activities | ($11.5) | $2.6 |
Customer Base and Market Position
As of January 31, 2024, Veeva Systems served 1,432 customers, with a notable growth in their customer base year-over-year. This included 693 customers for Commercial Solutions and 1,078 customers for R&D Solutions.
- Subscription services revenues for R&D Solutions increased by $160 million due to expanded cloud product usage.
- Commercial Solutions contributed an additional $50 million in subscription services revenue.
| Customer Segment | Q2 2024 Customer Count | Q2 2023 Customer Count |
|---|---|---|
| Commercial Solutions | 693 | 684 |
| R&D Solutions | 1,078 | 1,025 |
| Total Customers | 1,432 | 1,388 |
How Veeva Systems Inc. (VEEV) Makes Money
Revenue Streams
Veeva Systems Inc. generates revenue primarily through two main streams: subscription services and professional services.
| Revenue Type | Q2 FY2024 Revenue (in thousands) | Q2 FY2023 Revenue (in thousands) | % Change |
|---|---|---|---|
| Subscription Services | $561,277 | $470,637 | 19% |
| Professional Services | $114,904 | $119,588 | (4%) |
| Total Revenue | $676,181 | $590,225 | 15% |
Subscription Services
For the six months ended July 31, 2024, subscription services made up 83% of total revenues, amounting to $1,095,232,000, compared to 79% for the same period in the previous year.
Subscription revenues are further categorized into:
- Commercial Solutions: $533,126,000 for the six months ended July 31, 2024.
- R&D Solutions: $562,106,000 for the six months ended July 31, 2024.
Professional Services
Professional services contributed 17% of total revenues for the six months ended July 31, 2024, with revenues remaining stable at $231,294,000 compared to the previous year.
The revenue mix for professional services includes:
- Commercial Solutions: $93,840,000 for the six months ended July 31, 2024.
- R&D Solutions: $137,454,000 for the six months ended July 31, 2024.
Geographic Revenue Distribution
For the three months ended July 31, 2024, the geographical breakdown of revenues is as follows:
| Geographic Area | Q2 FY2024 Revenue (in thousands) | Q2 FY2023 Revenue (in thousands) |
|---|---|---|
| North America | $395,971 | $346,335 |
| Europe | $198,315 | $164,527 |
| Asia Pacific | $64,879 | $63,963 |
| Other Regions | $17,016 | $15,400 |
Operating Expenses
For the three months ended July 31, 2024, operating expenses were divided as follows:
| Expense Type | Q2 FY2024 Amount (in thousands) | Q2 FY2023 Amount (in thousands) | % Change |
|---|---|---|---|
| Research and Development | $176,429 | $157,228 | 12% |
| Sales and Marketing | $101,528 | $96,995 | 5% |
| General and Administrative | $61,365 | $62,935 | (2%) |
Net Income
For the three months ended July 31, 2024, Veeva reported a net income of $171,041,000, compared to $111,628,000 for the same period in 2023, marking a growth of 53%.
Cash Flow from Operating Activities
Net cash provided by operating activities for the six months ended July 31, 2024, was $856,390,000, up from $770,972,000 in the previous year.
Future Expectations
Veeva anticipates continued growth in its subscription services, particularly within its R&D Solutions, which are projected to increase as a percentage of total revenues in the coming years.
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