The global Healthcare Cloud Computing Market is expected to grow at 13% CAGR from $29 billion in 2020 to $79.3 billion by 2027. Veeva (NYSE: VEEV) continues to show growth in this market through acquisitions and product upgrades.

Veeva’s Financials

Veeva’s Q2 revenues grew 29% to $455.6 million, ahead of the Street’s forecast of $450.93. Non GAAP EPS was $0.94, surpassing the Street’s estimates of $0.86

By segment, revenues from subscription services grew 29% to $366.4 million. Professional services revenues grew 27.04% to $89.16 million.

For the third quarter, Veeva forecast revenues of $464-$466 million and an adjusted EPS of $0.87-$0.88. The market was looking for Q3 revenues of $469.7 million and an EPS of $0.88. Veeva expects to end the FY2022 with revenues of $1.83-$1.835 billion and an EPS of $3.57. The market was looking for revenues of $1.83 billion and an adjusted EPS of $3.58 for the year.

Veeva’s Acquisition

Recently, Veeva announced the acquisition of Learnaboutgmp for an undisclosed amount. Founded in 2015, Ireland-based Learnaboutgmp is an online training platform that provides organizations with training courses for GxP compliance. It boasts of an e-library of over 170 course titles and 450 microlearning assets aimed at helping organizations develop high-impact learning programs that reduce cost and improve training outcomes. Its customers include a slew of pharma companies, leading MedTech companies, and emerging BioTechs. Veeva plans to combine its content with Veeva Vault Training to provide companies with an efficient, end-to-end training solution to achieve total GxP compliance.

Meanwhile, Veeva continues to build its product portfolio. Earlier this month, it announced Veeva Vault Validation Management, a new application that will enable a more efficient, cost-effective validation lifecycle management. The service will allow life sciences companies to create and organize validation activities, manage a library of test scripts, execute and record validation data electronically for faster test execution and greater compliance. The automated validation process will reduce the time spent by the companies in manual validation and also ensure higher quality deliverables.

The stock market is having a turbulent week so far. The S&P 500 dropped 1.7% Monday, and the index was down 3.9% from its all-time high. The expected default by China’s Evergrande is causing concern across the global markets. Yesterday was a better day with the US markets recovering some of those losses in anticipation of the Fed’s monetary policies. Veeva’s stock is currently trading at $297.45 with a market capitalization of $45.6 billion. It had peaked to a 52-week high of $343.96 in August. It hit a 52-week low of $235.74 in May. Current turbulence aside, I still believe in the strength of this stock.