Veeva Announces Fiscal 2019 Second Quarter Results
PLEASANTON, Calif.--(BUSINESS WIRE)--Aug 23, 2018--Veeva Systems Inc. (NYSE: VEEV), a leading provider of industry cloud solutions for the global life sciences industry, today announced results for its fiscal second quarter ended July 31, 2018. All results, including prior periods, and guidance reflect the new revenue recognition standard ASC 606.
“I am very proud of the Veeva team. We once again delivered an outstanding quarter,” said CEO Peter Gassner. “We are realizing our vision to become the most strategic partner to the life sciences industry by delivering innovative products in the areas of greatest impact. By continuing to focus on customer success, exceptional execution, and product excellence, I’m confident we can achieve our goal of becoming a multi-billion dollar company over time.”
Fiscal 2019 Second Quarter Results:Revenues: Total revenues for the second quarter were $209.6 million, up from $167.8 million one year ago, an increase of 25% year-over-year. Subscription services revenues for the second quarter were $169.6 million, up from $135.6 million one year ago, an increase of 25% year-over-year. Operating Income and Non-GAAP Operating Income(1): Second quarter operating income was $52.8 million, compared to $38.1 million one year ago, an increase of 39% year-over-year. Non-GAAP operating income for the second quarter was $74.3 million, compared to $53.5 million one year ago, an increase of 39% year-over-year. Net Income and Non-GAAP Net Income(1): Second quarter net income was $50.3 million, compared to $38.6 million one year ago, an increase of 30% year-over-year. Non-GAAP net income for the second quarter was $61.4 million, compared to $36.6 million one year ago, an increase of 68% year-over-year. Net Income per Share and Non-GAAP Net Income per Share(1): For the second quarter, fully diluted net income per share was $0.32, compared to $0.25 one year ago, while non-GAAP fully diluted net income per share was $0.39, compared to $0.24 one year ago.
“Ongoing strength across revenue, operating margin, and cash flow enabled us to raise our guidance for the second half of the year,” said CFO Tim Cabral. “We’re excited about the opportunity ahead as we continue to invest for growth and customer success.”
Recent Highlights:Commercial Cloud Innovation and Leadership — The company signed its first early adopter customer for Veeva Nitro, a next-generation commercial data warehouse built for life sciences. The company also extended its product leadership with the new Veeva CRM Sunrise UI, an adaptive, multi-device user interface. In addition, a top 10 biopharmaceutical company selected Veeva as its global CRM standard. Expanding Footprint in Quality — The newest addition to the Veeva Vault Quality Suite, Veeva Vault Training, was announced to simplify role-based training. The company also had its first top 20 biopharmaceutical win in Europe for Veeva Vault QualityDocs. Continued Success in Clinical — Veeva extended its leadership position in clinical and closed the quarter with 28 Veeva Vault CTMS customers and more than 200 Veeva Vault eTMF customers, including a top 50 biopharmaceutical win in the quarter. The company closed its first top 20 pharma for Veeva Vault EDC and ended the quarter with 12 Vault EDC customers.
Veeva is providing guidance for its fiscal third quarter ending October 31, 2018 as follows:Total revenues between $215 and $216 million. Non-GAAP operating income between $74 and $75 million (2). Non-GAAP fully diluted net income per share of $0.38 (2).
Veeva is providing guidance for its fiscal year ending January 31, 2019 as follows:Total revenues between $840 and $843 million. Non-GAAP operating income between $281 and $284 million (2). Non-GAAP fully diluted net income per share between $1.47 and $1.48 (2).
Conference Call Information:
(1) 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.
(2) Veeva is not able, at this time, to provide GAAP targets for operating income and fully diluted net income per share for the third fiscal quarter ending October 31, 2018 or fiscal year ending January 31, 2019 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, capitalization of internal-use software development expenses and the subsequent amortization of the capitalized expenses. The effect of these excluded items may be significant.
About Veeva Systems
Veeva Systems Inc. is a leader in cloud-based software for the global life sciences industry. Committed to innovation, product excellence, and customer success, Veeva has more than 650 customers, ranging from the world’s largest pharmaceutical companies to emerging biotechs. Veeva is headquartered in the San Francisco Bay Area, with offices throughout North America, Europe, Asia, and Latin America. For more information, visit veeva.com.
This release contains forward-looking statements, including the quotations from management, the statements in “Financial Outlook,” and other statements regarding Veeva’s future performance, market growth, the benefits from the use of Veeva’s solutions, our strategies, and general business conditions. Any forward-looking statements contained in this press release are based upon Veeva’s historical performance and its current plans, estimates and expectations and are not a representation that such plans, estimates, or expectations will be achieved. These forward-looking statements represent Veeva’s expectations as of the date of this press announcement. Subsequent events may cause these expectations to change, and Veeva disclaims any obligation to update the forward-looking statements in the future. These forward-looking statements are subject to known and unknown risks and uncertainties that may cause actual results to differ materially, including (i) breaches in our security measures or unauthorized access to our customers’ data; (ii) our expectation that the future growth rate of our revenues will decline; (iii) fluctuation of our results, which may make period-to-period comparisons less meaningful; (iv) competitive factors, including but not limited to pricing pressures, consolidation among our competitors, entry of new competitors, the launch of new products and marketing initiatives by our existing competitors, and difficulty securing rights to access, host or integrate with complementary third party products or data used by our customers; (v) the rate of adoption of our newer solutions and the results of our efforts to sustain or expand the use and adoption of our more established applications, like Veeva CRM; (vi) loss of one or more customers, particularly any of our large customers; (vii) system unavailability, system performance problems, or loss of data due to disruptions or other problems with our computing infrastructure; (viii) failure to sustain the level of profitability we have achieved in the past as our costs increase; (ix) adverse changes in economic, regulatory, or market conditions, particularly in the life sciences industry, including as a result of customer mergers; (x) our ability to attract and retain highly skilled employees and manage our growth effectively; (xi) a decline in new subscriptions that may not be immediately reflected in our operating results due to the ratable recognition of our subscription revenue; and (xii) pending, threatened, or future legal proceedings and related expenses.
Additional risks and uncertainties that could affect Veeva’s financial results are included under the captions, “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the company’s filing on Form 10-Q for the period ended April 30, 2018. This is available on the company’s website at veeva.com under the Investors section and on the SEC’s website at sec.gov. Further information on potential risks that could affect actual results will be included in other filings Veeva makes with the SEC from time to time.
* Prior-period information has been restated for the adoption of ASU 2014-09, “ Revenue from Contracts with Customers” (Topic 606), and ASU 2018-02, “ Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income,” both of which were adopted on February 1, 2018.
This article has been truncated. You can see the rest of this article by visiting http://www.businesswire.com/news/home/20180823005718/en.