Veeva Systems (VEEV) recently announced its quarterly results that continued to impress the market. Vault CRM continues to remain the buzz word for Veeva as Salesforce gears up for more direct competition with it.

Veeva’s Financials

Veeva’s second quarter revenues grew 15% to $676.2 million, ahead of the Street’s forecast by 1.3%. Non-GAAP EPS was $1.62 was also better than the Street’s estimates of $1.53.

By segment, Subscription services revenues grew 19% to $561.3 million. Professional and other services revenues were reduced by 4% to $114.9 million.

For the Commercial Solutions segment, Subscription revenue grew 12% to $271.8 million and Service revenues dropped 5% to $45.1 million. R&D solutions revenue, meanwhile, increased 27% to $289.5 million and service revenues for the segment fell 3% to $69.8 million.

For the third quarter, Veeva forecast revenues of $682-$685 million and an adjusted EPS of $1.57-$1.58. The market was looking for revenues of $681.3 million and an EPS of $1.54. It expects to end the current fiscal year with revenues of $2.7-$2.71 billion and an EPS of $6.22. The market was looking for revenues of $2.71 billion and an adjusted EPS of $6.15.

Veeva’s CRM Growth

Veeva announced enhanced capabilities for its Vault CRM with the addition of Service Center for inside sales, contact center, and hybrid reps. The service will support inbound and outbound engagement across channels and provide added visibility to the employees by including information on case management, telephony integration, and industry-specific capabilities including consent, sampling, and call reporting. It also features an integration with Microsoft 365 that will help improve productivity, including case collaboration in Microsoft Teams and OneNote.

Since the Service Center has been built on the Vault Platform, it will help ensure streamlined flow of information across customer-facing teams as they will leverage the same customer data, content, and key processes. Later this year, Veeva plans to launch a Campaign Manager capability on the platform as well that will help marketers execute omnichannel campaigns that are built on connected content.

Veeva continues to see strong adoption of the Vault platform. More than 15 companies are already live on Vault CRM since its release in April this year. Veeva will see more CRM migrations for smaller customers later this year, and larger customers plan to start their migration programs in early 2025.

However, Salesforce is gearing up to compete with Veeva. Earlier this year, Salesforce announced an expanded partnership with IQVIA, a leading global provider of data, analytics, technology, and services to the life sciences industry. As part of the agreement, IQVIA’s Orchestrated Customer Engagement (OCE) platform will integrate its data, analytics, and domain expertise with Salesforce’s CRM solution to create an intelligent and integrated digital healthcare offering.

IQVIA already has over 400 global OCE customers in more than 130 countries. The partnership could help Salesforce make big inroads into the healthcare industry and compete more directly with Veeva.

Veeva’s stock closed Friday's trading at $217.95 with a market capitalization of $35.2 billion. It hit a 52-week high of $236.9 in March, and it has since recovered from the 52-week low of $162.72 seen in November last year.

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