The global healthcare cloud computing market is expected to grow 18% annually to reach $320.9 billion by 2034 from $41.1 billion in 2024. The growth in the market is estimated to be driven by the increasing adoption of AI and data analytics in the industry along with the expansion of telehealth and remote monitoring capabilities. Veeva (NYSE: VEEV) recently announced its quarterly results that continued to impress the market, but the weak outlook dimmed market expectations

Veeva’s Financials

Veeva’s Q1 revenues grew 24% to $650.3 million, ahead of the Street’s forecast of $642 million. Non-GAAP EPS was $1.50 versus Street’s estimates of $1.42.

By segment, revenues from subscription services grew 29% to $533.96 million, beating analyst estimates of $528.26 million. Professional services revenues grew 4% to $116.4 million, ahead of the market’s estimated $113.08 million.

Overall, Veeva continues to see strong adoption of its offerings. Last quarter, it announced the full availability of Vault CRM for all new customers. Multiple customers are already live and there were 13 CRM wins in the quarter. Veeva added a record 21 new brands for Compass Patient, including its first enterprise-wide win with a top 50 biopharma. Veeva Link also continued to progress well and crossed the 100-customer mark for the first time.

For the second quarter, Veeva forecast revenues of $666-$669 million and an adjusted EPS of $1.53-$1.54. The market was looking for revenues of $675.3 million and an EPS of $1.52.

Veeva expects to end the current fiscal year with revenues of $2.7-$2.71 billion and an EPS of $6.16. A quarter ago, Veeva had forecast the year’s revenues at $2.73 billion. The market was looking for revenues of $2.73 billion and an adjusted EPS of $6.15.

Veeva’s Expanding Offerings

Last quarter, Veeva announced the availability of several new product features. It introduced Veeva Vault Basics, a solution that includes technology, training, and support to help biotech companies deploy Veeva Vault applications with minimal implementation and maintenance costs. Veeva Vault Basics will allow Biotech players to quickly adopt applications while scaling up and managing growth.

Veeva claims this is the only solution that has been purpose-built with the aim of helping biotechs scale for growth. Vault Basics is available for North America and includes Vault eTMF Basics to ensure quality, timeliness, and completeness of a clinical trial master file, Vault QualityDocs and Training Basics to drive secure GxP document management and centralize employee training and content, Vault Submissions and Submissions Archive Basics to plan, author, review, and approve regulatory submissions. Ten biotechs are already live with Vault Basics.

Veeva also recently announced a Veeva AI Partner Program that will provide partners with the technology and support needed to integrate GenAI solutions seamlessly with Veeva Vault applications. Veeva realizes that its customers are exploring GenAI solutions across many use cases, and the program will help them adopt these solutions seamlessly. The partner program includes Vault Direct Data API training and support that will help build expertise in leveraging Veeva Vault Platform and Vault Application Sandbox to develop, test, and support partner applications integrated with Veeva Vault applications.

Veeva’s stock is currently trading at $183.8 with a market capitalization of $29.7 billion. It hit a 52-week high of $236.9 in March and has recovered from the 52-week low of $162.72 in November last year..

More By This Author: