In This Article:
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Total Revenue: $759 million for the quarter.
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Non-GAAP Operating Margin: 46%.
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Revenue Run Rate Goal: Achieved $3 billion for calendar 2025.
Release Date: May 28, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Veeva Systems Inc (NYSE:VEEV) reported total revenue of $759 million, surpassing their guidance.
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The company achieved a non-GAAP operating margin of 46%, indicating strong operational efficiency.
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Veeva AI is a major initiative that is off to a good start, with potential positive impacts on the life sciences industry.
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The company has successfully onboarded over 80 customers to Vault CRM, with plans to reach 200 customers within a year.
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Crossix, a part of Veeva's commercial segment, outperformed expectations and is growing at more than 30% year-over-year.
Negative Points
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The macroeconomic environment is uncertain, largely due to dynamics in the US administration, which could impact future performance.
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Some customers prefer custom projects, which may lead to decisions against migrating to Veeva's solutions.
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The company acknowledges potential funding issues in the small biopharma market due to macroeconomic uncertainties.
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Veeva's horizontal CRM initiative is still in the early stages, with many details yet to be determined.
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There is a risk of conservatism in large pharma due to macroeconomic uncertainties, which could delay projects.
Q & A Highlights
Q: Can you provide insights into the migration of 200 customers to Vault CRM and the factors influencing their decisions? A: Paul Shawah, EVP, Strategy: Vault CRM is performing well, with over 80 customers live today and on track to reach 200 in a year. The migrations are driven by Vault CRM's superior features, including our AI strategy and integration of sales, marketing, and medical functions. Some customers prefer custom projects, but we expect to retain the majority.
Q: How is the macro environment affecting Veeva's business, particularly in discretionary revenue areas like services? A: Peter Gassner, CEO: Despite macro uncertainties, we haven't seen a material impact on our results or pipeline. Smaller biopharma might face funding issues, but areas like Crossix, which offer quick ROI, are less likely to be affected.
Q: Can you elaborate on Veeva's strategy for entering the horizontal CRM market? A: Peter Gassner, CEO: We're excited about horizontal CRM, focusing initially on large enterprises. We aim to differentiate through innovation and our public benefit corporation model. We hope to have our first customers by year-end, emphasizing customer success and product excellence.