Veeva Announces Fourth Quarter and Fiscal Year 2025 Results

Fiscal Year 2025 Total Revenues of $2,746.6M, up 16% Year Over Year

Q4 Total Revenues of $720.9M, up 14% Year Over Year

Fiscal Year 2025 Subscription Services Revenues of $2,284.7M, up 20% Year Over Year

Q4 Subscription Services Revenues of $608.6M, up 17% Year Over Year

PLEASANTON, Calif., March 5, 2025 /PRNewswire/ -- Veeva Systems Inc. (NYSE:VEEV), a leading provider of industry cloud solutions for the global life sciences industry, today announced results for its fourth quarter and fiscal year ended January 31, 2025.

"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, up from $630.6 million one year ago, an increase of 14% year over year. Subscription services revenues for the fourth quarter were $608.6 million, up from $521.5 million one year ago, an increase of 17% year over year.
  
  
  
  
• Operating Income and Non-GAAP Operating Income⁽¹⁾⁽²⁾: Fourth quarter operating income was $188.4 million, compared to $135.3 million one year ago, an increase of 39% year over year. Non-GAAP operating income for the fourth quarter was $307.7 million, compared to $239.1 million one year ago, an increase of 29% year over year.
  
  
  
  
• Net Income and Non-GAAP Net Income⁽¹⁾⁽²⁾: Fourth quarter net income was $195.6 million, compared to $147.4 million one year ago, an increase of 33% year over year. Non-GAAP net income for the fourth quarter was $287.9 million, compared to $226.3 million one year ago, an increase of 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, compared to $0.90 one year ago, while non-GAAP fully diluted net income per share was $1.74, compared to $1.38 one year ago.

Fiscal Year 2025 Results:

• Revenues⁽¹⁾: Total revenues for the fiscal year ended January 31, 2025 were $2,746.6 million, up from $2,363.7 million one year ago, an increase of 16% year over year. Subscription services revenues were $2,284.7 million, up from $1,901.6 million one year ago, an increase of 20% year over year.
  
  
  
  
• Operating Income and Non-GAAP Operating Income⁽¹⁾⁽²⁾: Fiscal year 2025 operating income was $691.4 million, compared to $429.3 million one year ago, an increase of 61% year over year. Non-GAAP operating income for fiscal year 2025 was $1,152.3 million, compared to $842.5 million one year ago, an increase of 37% year over year.
  
  
  
  
• Net Income and Non-GAAP Net Income⁽¹⁾⁽²⁾: Fiscal year 2025 net income was $714.1 million, compared to $525.7 million one year ago, an increase of 36% year over year. Non-GAAP net income for fiscal year 2025 was $1,090.4 million, compared to $791.0 million one year ago, an increase of 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, compared to $3.22 one year ago, while non-GAAP fully diluted net income per share was $6.60, compared to $4.84 one year ago.

"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 and $729 million.
  
  
  
  
• Non-GAAP operating income between $307 and $309 million.⁽⁵⁾
  
  
  
  
• Non-GAAP fully diluted net income per share between $1.74 and $1.75.⁽⁵⁾

Veeva is providing guidance for its fiscal year ending January 31, 2026 as follows:

• Total revenues between $3,040 and $3,055 million.
  
  
  
  
• Non-GAAP operating income of about $1,300 million.⁽⁵⁾
  
  
  
  
• Non-GAAP fully diluted net income per share of approximately $7.32.⁽⁵⁾

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.

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.

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.
  
  
  
  
• 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.

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SOURCE Veeva Systems