According to a Mordor Intelligence report, the healthcare cloud computing market is expected to grow at 14% CAGR to reach $71.730 billion by 2027 from $33.4 billion in 2021. Veeva (NYSE: VEEV) recently reported its fourth-quarter results that continued to surpass all market expectations.

Veeva’s Financials

Veeva’s Q4 revenues grew 22% to $485.5 million, ahead of the Street’s forecast of $480.1 million. Non-GAAP EPS was $0.90, surpassing the Street’s estimates of $0.88.

For the year, Veeva reported revenues of $1.851 billion and EPS of $3.73.

By segment, Q4 revenues from subscription services grew 23% to $395.7 million. Professional services revenues grew 21.5% to $89.8 million.

For the first quarter, Veeva forecast revenues of $494-$496 million and non GAAP EPS of $0.91-$0.92. The market was looking for revenues of $506.3 million and an EPS of $0.94. Veeva expects to end the current year with revenues of $2.16-$2.17 billion and an EPS of $4.02. The market was looking for revenues of $2.17 billion with an adjusted EPS of $3.95 for the year.

Veeva’s Veracity Acquisition

Recently, Veeva announced its acquisition of Veracity Logic for Randomization and Trial Supply Management (RTSM). Veracity Logic was set up in 2003 when Steve Zimmerman and Bruce Shankle released a customizable Interactive Response Technology (IRT) system to support clinical trials. Over the next two years, they initiated a dedicated IRT solutions company Veracity Logic. The IRT solution was built as a user-friendly, customizable platform focused on meeting the needs of the clinical trial industry. Veracity’s funding and financial details are not disclosed.

The Veracity acquisition will extend the reach of Veeva’s RTSM. Veeva RTSM provides fast setup timelines and a configurable feature set to meet a variety of randomization and supply needs. It has supported over 175 trials with sites in 60 countries to cover a range of trial designs and complexities across all therapeutic areas in pharma/biotech, medical device, and diagnostics. Terms of the acquisition were not disclosed.

Veeva also announced its partnership with the Lymphoma Academic Research Organizations (LYSARC) to improve operational efficiency across its lymphoma therapy research. The partnership will allow LYSARC to use applications in Vault Clinical, Vault Quality, and Vault Safety suites to create a robust, connected technology foundation to enable faster execution, higher quality data, and better trial oversight. It will allow Veeva Developmental Cloud to combine clinical, quality, and safety operations for end-to-end business processes and execution. LYSARC will be able to use a digital and unified systems landscape to improve the patient trial experience, ensure alignment with SOPs across stakeholders, and reduce the costs and lead times of clinical trials.

Veeva’s stock is currently trading at $187.69 with a market capitalization of $28.9 billion. It had peaked to a record high of $343.96 in August last year. It hit a 52-week low of $185.12 earlier this month. Good buying opportunity!