Cloud Stocks: Veeva Sets An Example, Transitions To A Public Benefit Corporation

According to a Technavio report, the global healthcare cloud computing market is estimated to grow by $25.5 billion or 23% CAGR over the period 2020-2024. Veeva (NYSE: VEEV) recently reported its fourth-quarter results that continued to surpass all market expectations. The company recently transformed into a Public Benefit Corporation, becoming the first public company ever to do so.

Veeva’s Financials

Veeva’s Q4 revenues grew 34% over the year to $396.8 million, ahead of the Street’s forecast by 4.4%. On an adjusted basis, EPS was $0.78, surpassing the Street’s estimates of $0.18

For the year, Veeva reported revenues of $1.47 billion and EPS of $2.94.

By segment, revenues from subscription services grew 27% to $322.8 million. Professional services revenues grew 28.7% to $73.9 million.

For the first quarter, Veeva forecast revenues of $408-$410 million with an adjusted EPS of $0.77-$0.78. The market was looking for revenues of $400.4 million with an EPS of $0.74.

Veeva expects to end the current year with revenues of $1.76-$1.77 billion and an EPS of $3.20. The market was looking for revenues of $1.72 billion with an adjusted EPS of $3.11 for the year.

Veeva’s Growth Focus

Meanwhile, Veeva continued to see strong growth. Billings for the quarter grew 30% over the year to $688 million, ahead of the Street’s estimated $640 million. Vault’s subscription revenue growth accelerated to 37% from 35% a quarter ago. On the Commercial Cloud front, the company added 17 new CRM logos in the quarter. It is also seeing a stronger pro services utilization with a $4 million increase in revenues driven by the transition of customers from quarterly to annual billings. Veeva’s Engage platform is seeing a strong adoption rate primarily because the entire pharma industry migrated to a remote selling model on account of the pandemic.

Veeva Data Cloud has also made significant progress. Earlier last year, Veeva Data Cloud had begun including longitudinal patient and prescriber data offerings that covered retail and specialty distribution channels, initially tailored for commercial use cases such as launch planning, patient segmentation, commercial analytics, AI, territory design, targeting, and incentive compensation. Last quarter, it released this patient data for the US and already has five early adopter customers. It is also previewing its data with other customers and is getting positive feedback.

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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 ...

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