Veeva Continues To Soar To New Highs

Cloud-based life sciences solution provider Veeva (NYSE: VEEV) recently announced its second-quarter results that outpaced market expectations. The company’s robust performance has helped its stock nearly double since the start of the year.

Veeva’s Financials

Veeva’s revenues grew 25% to $209.6 million, ahead of the Street’s forecast of $203.7 million. Adjusted EPS of $0.39 was also ahead of the market’s forecast of $0.34 for the quarter.

By segment, revenues from subscription services grew 25% to $169.6 million. Subscription gross margin improved 220 bps to 83.6%. It continued to see strong momentum in bookings across all areas of Vault, which accounted for 42% of subscription revenues compared with 36% a year ago. Revenues from professional services grew 24% over the year to $40 million.

For the current quarter, Veeva forecast revenues of $215-$216 million with an adjusted EPS of $0.38. Veeva expects to end the current year with revenues of $840-$843 million with an EPS of $1.47-$1.48. The market was looking for revenues of $210.8 million for the quarter with an adjusted EPS of $0.35. For the year, the Street had forecast revenues of $829.4 million with an EPS of $1.37.

Veeva’s Product Expansion

Veeva continued to see strong adoption of its new product offerings. During the quarter, it signed its first early adopter customer for Veeva Nitro. Veeva Nitro is a next-generation commercial data warehouse built specifically for the life sciences industry. It also added its first top 20 biopharmaceutical client in Europe for Veeva Vault Quality Docs.

Veeva continued to expand its market with the release of several new offerings. Last month, it released a major user interface refresh of its CRM product Sunrise. Sunrise is an adaptive, multi-device design that provides the users with a consistent experience across devices. It is also improving its adoption of the Commercial Cloud usage for CRM customers by adding additional products such as Veeva Events Management, Veeva Align, and Veeva OpenData.

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