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According to a recent report, 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 (VEEV) recently announced its quarterly results that continued to impress the market. The company is focusing on driving adoption of its products as it migrates away from the Salesforce CRM to its own solution.

Veeva’s Financials

Veeva’s Q2 revenues grew 10% to $590.2 million, ahead of the Street’s forecast of $577.7. On an adjusted basis, it reported an EPS of $1.21, surpassing the Street’s estimates of $1.05.

By segment, revenues from subscription services grew 10% to $470.6 million. Professional services revenues grew 13.3% to $119.6 million.

For the third quarter, Veeva forecast revenues of $614-$616 million and an adjusted EPS of $1.26-$1.27. The market was looking for revenues of $616.07 million and an EPS of $1.26. Veeva expects to end the current year with revenues of $2.365-$2.370 billion and an EPS of $4.68. The market was looking for revenues of $2.37 billion and an adjusted EPS of $4.68 for the year.

Veeva’s Increasing Adoption

This was a milestone quarter for Veeva. Its Clinical Database (CDB) solution has seen strong adoption. It helps bring together various data sources and delivers clean data faster than ever so study teams can make data-driven decisions with confidence. Using Veeva CDB Auto Checks, customers can automatically identify discrepancies upon data ingestion and create queries or close them when issues are corrected. The application also automates change detection so data managers can focus efforts on new or updated data, saving time and lowering costs. Since its launch, it has cleaned more than 200,000 subjects to quickly provide quality data across more than 200 studies. By building processes around Veeva CDB, Veeva is laying a foundation for clinical data transformation.

It also saw a major milestone for Vault CRM, the life sciences focused CRM solution. Veeva announced plans for the general release of Vault CRM in April 2024, and announced that it already had its first customer win with an innovative oncology biotech. The customer plans to go live starting with their field medical team in Q4 of the current year. Built on the Veeva Vault Platform for the unique needs of life sciences, Vault CRM includes all the functionality of Veeva CRM and new omnichannel capabilities. Vault CRM Service Center – included with Vault CRM – provides new call center capabilities so that sales and hybrid reps can use the solution to support the service-centric engagement. The current Veeva CRM solution built on the Salesforce platform will enter stability mode after its final functional release in December 2023. During stability mode, Veeva CRM releases will include fixes for significant defects, compliance, platform compatibility, and security updates.

Veeva’s stock is currently trading at $224.9 with a market capitalization of $36.1 billion. It hit a 52-week high of $225.48 earlier this month and a 52-week low of $152.02 in October last year.

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