Veeva Continues To Soar

According to a Market Watch report published recently, the global cloud-based healthcare computing market is estimated to grow 20% annually over the next few years to $11 billion by 2022. Veeva (NYSE: VEEV) continues to ride high on this growth.

Veeva’s Financials

For the third quarter, Veeva’s revenues grew 27% over the year to $224.7 million, significantly ahead of the Street’s forecast of $216.2 million. Net income was $64.1 million. Adjusted EPS of $0.45 grew from $0.20 a year ago, and was ahead of the market’s forecast of $0.38 for the quarter. This was the fourth consecutive quarter that Veeva surpassed market expectations.

By segment, revenues from subscription services grew 25% to $178.2 million. On an adjusted basis, its subscription gross margin grew 320 basis points to 84.8%. Revenues from professional services grew 36% over the year to $46.5 million. The growth in revenue was attributed to continued strong demand within Veeva Vault R&D.

For the current quarter, Veeva forecast revenues of $226-$227 million with an adjusted EPS of $0.40. It expects to end the current year with revenues of $855.8-$856.8 million with an EPS of $1.58. The market was looking for revenues of $222.11 million for the quarter with an adjusted EPS of $0.37. For the year, the Street had forecast revenues of $843.3 million with an EPS of $1.48.

Veeva’s Vault Growth

Veeva continues to invest and develop its Vault offering. Vault is Veeva’s cloud enterprise content management platform and suite of applications built for the life sciences industry. Veeva continues to see strong momentum in bookings across all areas of Vault. Vault accounted for 44% of subscription revenues compared with 36% a year ago.

Veeva recently introduced its Vault Digital Publishing, a new digital asset management (DAM) capability in Vault PromoMats and Vault MedComms. The new service will allow brand marketing teams to publish and withdraw approved assets from a central location to any digital channel for faster publishing. Organizations will have access to a single view of content performance across digital channels with a single click from Vault PromoMats or Vault MedComms. Additionally, it will leverage the Amazon CloudFront to deliver high availability and optimal performance.

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Disclaimer: More investigation and analysis of Unicorn companies can be found in my latest Entrepreneur Journeys book, Billion ...

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