Veeva : Investor Presentation ( PDF 379 KB )

Q2'23 Quarterly Results

August 31, 2022

Safe Harbor and Other Information

This presentation and associated commentary contain forward-looking statements regarding Veeva's expected future performance and, in particular, includes guidance provided as of August 31, 2022 about Veeva's expected future financial results. Estimating guidance accurately for future periods is difficult. It involves assumptions and internal estimates that may prove to be incorrect and is based on plans that may change. Hence, there is a significant risk that actual results could differ materially from the guidance we have provided in this presentation and associated commentary and we have no obligation to update such guidance. There are also numerous risks that have the potential to negatively impact our financial performance, including as a result of competitive factors, customer decisions and priorities, events that impact the life sciences industry, issues related to the security or performance of our products, the pandemic, issues that impact our ability to hire, retain and adequately compensate talented employees, fluctuations in foreign currency exchange rates, and general macroeconomic and geopolitical events (including inflationary pressures and impacts related to Russia's invasion of Ukraine). We have summarized what we believe are the principal risks to our business in a section titled "Summary of Risk Factors" on pages 37 and 38 in our filing on Form 10-Q for the period ended April 30, 2022 which you can find here. Additional details on the risks and uncertainties that may impact our business can be found in the same filing on Form 10-Q and in our subsequent SEC filings, which you can access at sec.gov. We recommend that you familiarize yourself with these risks and uncertainties before making an investment decision.

Terms such as "Excess Tax Benefit," "Calculated Billings," and "R&D Tax" have the meanings set forth in the Appendix.

Copyright © Veeva Systems 2022

2

Statement Regarding Use of

Non-GAAP Financial Measures

We provide the following non-GAAP measures, which we define as financial information that has not been prepared in accordance with generally accepted accounting principles in the United States, or GAAP: Non-GAAP gross margin, non-GAAP operating income and margin, non-GAAP net income, non-GAAP net income per share, and non-GAAP operating cash flow. In addition to our GAAP measures, we use these non-GAAP financial measures internally for budgeting and resource allocation purposes and in analyzing our financial results. We believe that excluding stock-based compensation expense, amortization of purchased intangibles, deferred compensation associated with our acquisition of the Zinc Ahead business, income tax effects of the same, Excess Tax Benefit, and R&D Tax provides information that is helpful in understanding our operating results, evaluating our future prospects, comparing our financial results across accounting periods, and comparing our financial results to our peers, many of which provide similar non-GAAP financial measures.

Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. We encourage our investors and others to review our financial information in its entirety, not to rely on any single financial measure to evaluate our business, and to view our non-GAAP financial measures in conjunction with the most directly comparable GAAP financial measures. A reconciliation of GAAP to non-GAAP financial measures has been provided in the Appendix.

Copyright © Veeva Systems 2022

3

Total Revenue - Annual

$million

$2,500

Subscription Revenue		Services Revenue

2,140-2,145

$2,000

$1,500

$1,000

1,851

1,465367

1,104286

862208

415-420

168	~ 1,725
1,484

$500

$0

694

1,179

896

FY 2019

FY 2020 1

FY 2021 1

FY 2022

FY 2023 Guidance2

Y/Y Growth
Total	25%	28%1	33%1	26%	~16%2
% Mix
Commercial Solutions	68%	63%1	61%1	56%	-
R&D Solutions	32%	37%	39%	44%	-

Fiscal Year Ending January 31

Components of total revenue may not sum to total revenue due to rounding

1. The Crossix and Physicians World acquisitions closed in the quarter ended January 31, 2020 and contributed an aggregate of $20M in total revenue for the year ended January 31, 2020 and $103M for the year ended January 31, 2021
2. Guidance issued on August 31, 2022. Our FY 2023 total revenue guidance assumes foreign currency exchange rates will remain constant, which reflects a roughly $35 million FX headwind compared to FY 2022.

Copyright © Veeva Systems 2022

4

Total Revenue - Quarterly

$million

$500

$400

$300

$200

$100

$0

			Subscription Revenue		Services Revenue	534	545-547
				505
	476	485
456				106-108
				106

	95	90	102
89

366	381	396	403	429	~ 439

Q2'22

Q3'22

Q4'22

Q1'23

Q2'23

Q3'23 Guidance 1

Y/Y Growth
Total	29%	26%	22%	16%	17%	~15%1
% Mix
Commercial Solutions	56%	56%	55%	54%	53%	-
R&D Solutions	44%	44%	45%	46%	47%	-

Fiscal Year Ending January 31

Components of total revenue may not sum to total revenue due to rounding

1 Guidance issued on August 31, 2022. Our Q3'23 total revenue guidance assumes foreign currency rates exchange rates will remain constant, which reflects a roughly $11 million FX headwind as compared to Q3'22.

Copyright © Veeva Systems 2022

5