Cloud Stocks: Veeva CRM Will Move To Vault Platform
According to a recent report, the Global healthcare cloud computing market is expected to grow at 19% CAGR to reach $128.19 billion by 2028 from $32.44 Billion in 2020. Healthcare Cloud Computing Market player Veeva (NYSE: VEEV) recently announced its quarterly results that continued to surpass market expectations.
Veeva’s Financials
Veeva’s Q3 revenues grew 16% to $552.4 million, ahead of the Street’s forecast of $545.78. On an adjusted basis, EPS was $1.13, surpassing the Street’s estimates of $1.07.
By segment, revenues from subscription services grew 16% to $441.57 million. Professional services revenues grew 16.15% to $110.78 million.
For the fourth quarter, Veeva forecast revenues of $551-$553 million and an adjusted EPS of $1.05. The market was looking for revenues of $557.1 million and an EPS of $1.08. Veeva expects to end the current year with revenues of $2.143-$2.145 billion and an EPS of $4.19. The market was looking for revenues of $2.14.83 billion and an adjusted EPS of $4.16 for the year.
Veeva’s Partner Expansion
Recently, Veeva announced its partnership with Merck. The partnership will allow Merck to take a Veeva-first approach to new industry-specific software and data and select Veeva products to maximize the value of Veeva’s platform and products. The partnership will provide Merck with a strategic pricing approach and will give it inputs into Veeva’s product roadmap. It will help accelerate Merck’s digital strategy and make it more efficient for Merck to evaluate, purchase, operate, and create value from Veeva products and services.
Veeva announced the availability of an ePRO solution, a key advancement in patient-centric digital trials. The application simplifies the ability for patients to complete assessments on a mobile device or web browser and enables real-time data access for sponsors and clinical research sites. As part of a connected platform for clinical trials, study teams can use ePRO to exchange high-quality data across the clinical ecosystem for improved transparency and collaboration. Veeva ePRO is part of it’s Clinical Suite, the cloud platform that unifies clinical data management and operations.
Veeva CRM Strategy
Veeva recently announced that it will move its Veeva CRM from Salesforce to the Vault platform and emphasized the need to consolidate offerings under one cloud service. Salesforce has been the platform for Veeva’s core CRM since the foundation of the company and is contracted to a non-compete in life sciences that is set to expire in 2025. Existing customers can continue with Veeva CRM on the Salesforce platform through September 2030.
Veeva will be focusing on Vault CRM for pharma and biotech, where it has the broadest portfolio. It will focus on MedTech CRM opportunities after it has built its base for pharma CRM. MedTech CRM was expected to be a new growth opportunity for Veeva and is a strong suit for Salesforce.
Veeva’s stock is currently trading at $173.03 with a market capitalization of $26.9 billion. It had peaked to a 52-week high of $274.29 in December last year. It hit a 52-week low of $151.02 in October.
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Disclosure: All investors should make their own assessments based on their own research, informed interpretations, and risk appetite. This article expresses my own opinions based on my own research ...
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