Cloud Stocks: Veeva’s Migration To Own Platform Picks Pace

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The global healthcare cloud computing market is expected to grow at 18% CAGR from $39.4 billion in 2022 to reach $89.4 billion by 2027. Veeva (NYSE: VEEV) recently announced its fiscal 2024 results that continued to impress the market.

Veeva’s Financials

Veeva’s Q4 revenues grew 12% to $630.6 million, ahead of the Street’s forecast of $620.7 million. Non-GAAP EPS was $1.38 compared with the Street’s estimates of $1.30.

By segment, revenues from subscription services grew 13% to $521.5 million. Professional services revenues grew 6% to $109.1 million.

Veeva’s annual revenue grew 10% to $2.36 billion. Subscription revenues also grew 10% to $1.73 billion. Earnings per share grew from $4.28 to $4.84.

For the first quarter, Veeva forecast revenues of $640-$643 million and an adjusted EPS of $1.42-$1.43. The market was looking for revenues of $644.5 million and an EPS of $1.26.

Veeva expects to end the current fiscal year with revenues of $2.725-$2.740 billion and an EPS of $6.16. The market was looking for revenues of $2.75 billion and an adjusted EPS of $5.54.

Veeva’s Increasing Adoption

Last quarter, Veeva announced the availability of the full Veeva Compass Suite of commercial data products that will provide customers with a complete view into patient populations and HCP-level insight. Veeva Compass Prescriber and Veeva Compass National are pioneers in the market with the ability to deliver projections for both retail prescriptions and complex procedures, including in-office administered therapies, injections, and infusions.

Veeva Compass data products include Veeva Compass Patient that provides granular, anonymous patient data, including prescriptions, procedures, and diagnoses; Compass Prescriber that includes projected prescriptions and procedures data at a more local level; Compass National that is projected prescriptions and procedures data at the state and national levels helpful for forecasting, market share tracking, and commercial strategy. This is a pioneering offering in the industry as it can deliver innovations in commercial data for life sciences and can handle both retail and complex therapies for more than 4,000 brands.

Recently, Veeva also announced the launch of Veeva Vault Submissions Publishing eLearning, a new regulatory information management (RIM) application that provides users with access to key publishing processes to drive awareness and compliance. The eLearning tool has on-demand, self-paced training resources that help users remain qualified and current with the latest features and techniques for efficient continuous publishing. The tool will help organizations streamline employee education and eliminate the need to develop custom in-person training programs.

Veeva’s Transition to Its Own Platform

Meanwhile, Veeva’s transition to its own platform continues to see strong adoption. Last quarter, GSK became one of the first top biopharma companies to migrate to Veeva Vault CRM. Bayer also joined the league by becoming among the first top 20 biopharmas to move to Veeva Vault CRM worldwide. Veeva believes that the migration to Vault CRM will help better leverage customer reference data for greater efficiency and continued innovation. Vault CRM is expected to be released for general availability in April 2024 and will then become the go-forward product for all new customers. The current Veeva CRM solution built on the Salesforce platform will be supported until September 2030.

Veeva’s stock is currently trading at $232.47 with a market capitalization of $37.4 billion. It hit a 52-week high of $236.9 earlier this week. It had fallen to a 52-week low of $160.21 in May last year.

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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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