Veeva : Press Release ( PDF 355 KB )

FOR IMMEDIATE RELEASE

Veeva Announces Fourth Quarter and Fiscal Year 2022 Results

Fiscal Year 2022 Total Revenues of $1,850.8M, up 26% Year Over Year;

Q4 Total Revenues of $485.5M, up 22% Year Over Year

Fiscal Year 2022 Subscription Services Revenues of $1,484.0M, up 26% Year Over Year;

Q4 Subscription Services Revenues of $395.7M, up 23% Year Over Year

PLEASANTON, CA - March 2, 2022 - Veeva Systems Inc. (NYSE: VEEV), a leading provider of industry cloud solutions for the global life sciences industry, today announced results for its fourth quarter and fiscal year ended January 31, 2022.

"We founded Veeva 15 years ago with a clear vision of the industry cloud for life sciences," said CEO Peter Gassner. "It's exciting seeing that vision turning into reality as we become the industry's most strategic technology partner. Thanks to our customers and the Veeva team for another outstanding year of customer success and innovation."

Fiscal 2022 Fourth Quarter Results:

• Revenues: Total revenues for the fourth quarter were $485.5 million, up from $396.8 million one year ago, an increase of 22% year over year. Subscription services revenues for the fourth quarter were $395.7 million, up from $322.8 million one year ago, an increase of 23% year over year.
• Operating Income and Non-GAAPOperating Income(1): Fourth quarter operating income was $119.7 million, compared to $98.8 million one year ago, an increase of 21% year over year. Non-GAAP operating income for the fourth quarter was $186.3 million, compared to $153.2 million one year ago, an increase of 22% year over year.
• Net Income and Non-GAAPNet Income(1): Fourth quarter net income was $97.1 million, compared to $102.9 million one year ago, a decrease of 6% year over year. Non-GAAP net income for the fourth quarter was $147.0 million, compared to $126.1 million one year ago, an increase of 17% year over year.
• Net Income per Share and Non-GAAPNet Income per Share(1): For the fourth quarter, fully diluted net income per share was $0.60, compared to $0.64 one year ago, while non-GAAP fully diluted net income per share was $0.90, compared to $0.78 one year ago.

Fiscal Year 2022 Results:

• Revenues: Total revenues for the fiscal year ended January 31, 2022 were $1,850.8 million, up from $1,465.1 million one year ago, an increase of 26% year over year. Subscription services revenues were $1,484.0 million, up from $1,179.5 million one year ago, an increase of 26% year over year.
• Operating Income and Non-GAAPOperating Income(1): Fiscal year 2022 operating income was $505.5 million, compared to $377.8 million one year ago, an increase of 34% year over year. Non-GAAP operating income for fiscal year 2022 was $758.7 million, compared to $582.8 million one year ago, an increase of 30% year over year.

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© 2022 Veeva Systems Inc. All rights reserved. Veeva, V, Vault and Crossix are registered trademarks of Veeva Systems Inc.

• Net Income and Non-GAAPNet Income(1): Fiscal year 2022 net income was $427.4 million, compared to $380.0 million one year ago, an increase of 12% year over year. Non-GAAP net income for fiscal year 2022 was $604.7 million, compared to $473.2 million one year ago, an increase of 28% year over year.
• Net Income per Share and Non-GAAPNet Income per Share(1): For fiscal year 2022, fully diluted net income per share was $2.63, compared to $2.36 one year ago, while non-GAAP fully diluted net income per share was $3.73, compared to $2.94 one year ago.

"Our strong results in the quarter and the year reflect our continued outstanding execution, innovation, and expanding position as a trusted partner to the industry," said CFO Brent Bowman. "We are set up for another year of high growth and strong profitability and are tracking ahead of our 2025 targets."

Recent Highlights:

• Customer Success and Product Excellence Drive Industry Leadership - Veeva finished the year with 1,205 customers, up a record 212 from the year prior. Veeva Commercial Solutions grew a record 81 customers to 653, and Veeva R&D Solutions also added a record 196 customers for a total of 860(2)(3). Subscription revenue retention was 119% for the year(4), reflecting continued growth with existing customers.
• Establishing Clinical Leadership - The life sciences industry is increasingly turning to Veeva for its innovative products and digital trials vision. More than 450 customers now use at least one Veeva Vault Clinical solution, up a record 100 from the year prior(3). A growing number of top 20 pharmas are standardizing on Veeva clinical solutions with 16 using Veeva Vault eTMF, seven using Vault CTMS, and two using Veeva Vault CDMS(3).
• Expanding Opportunity and Product Portfolio in Quality - It was an important year for Veeva Vault Quality as it expands to modernize quality end-to-end, including innovations in the critical area of laboratory information management (LIMS). Strong momentum continued as quality added more than 100 new customers in the year, another record, and more than 200 customers now have both Veeva Vault QualityDocs and Veeva Vault QMS(3).
• Veeva Link Becoming a Powerful Data Platform - Veeva Link expanded its real-time customer intelligence products to more than 20 therapeutic areas in the year. Link customer count nearly doubled in the year and four top 20 pharmas have selected Link enterprise wide across all therapeutic areas to drive more informed, high value interactions with key people(3).

Financial Outlook:

Veeva is providing guidance for its fiscal first quarter ending April 30, 2022 as follows:

• Total revenues between $494 and $496 million.
• Non-GAAPoperating income between $187 and $189 million(5).
• Non-GAAPfully diluted net income per share between $0.91 and $0.92(5).

Veeva is providing guidance for its fiscal year ending January 31, 2023 as follows:

• Total revenues between $2,160 and $2,170 million.
• Non-GAAPoperating income of about $825 million(5).
• Non-GAAPfully diluted net income per share of approximately $4.02(5).

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© 2022 Veeva Systems Inc. All rights reserved. Veeva, V, Vault and Crossix are registered trademarks of Veeva Systems Inc.

Conference Call Information

Prepared remarks and an investor presentation providing additional information and analysis can be found on Veeva's investor relations website at ir.veeva.com. Veeva will host a Q&A conference call at

2:00 p.m. PT today, March 2, 2022, and a replay of the call will be available on Veeva's investor relations website.

What:	Veeva Systems Fourth Quarter and Fiscal Year 2022 Results Conference Call
When:	Wednesday, March 2, 2022
Time:	2:00 p.m. PT (5:00 p.m. ET)
Online Registration:	www.conferencingportals.com/event/badXudFz
Webcast:	ir.veeva.com
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1. This press release uses non-GAAP financial metrics that are adjusted for the impact of various GAAP items. See the section titled "Non-GAAP Financial Measures" and the tables entitled "Reconciliation of GAAP to Non-GAAP Financial Measures" below for details.
2. The combined customer counts for Commercial Solutions and R&D Solutions exceed the total customer count in each year because some customers subscribe to products in both areas. Veeva Commercial Solutions consist of our cloud software, data, and analytics products built specifically to more efficiently and effectively commercialize our customers' products. Veeva R&D Solutions consist of our clinical, quality, regulatory, and safety products.
3. Customer count totals are presented net of customer attrition during the period.
4. We calculate our annual subscription services revenue retention rate for a particular fiscal year by dividing (i) annualized subscription revenue as of the last day of that fiscal year from those customers that were also customers as of the last day of the prior fiscal year by (ii) the annualized subscription revenue from all customers as of the last day of the prior fiscal year. Annualized subscription revenue is calculated by multiplying the daily subscription revenue recognized on the last day of the fiscal year by 365. This calculation includes the impact on our revenues from customer non-renewals, deployments of additional users or decreases in users, deployments of additional solutions or discontinued use of solutions by our customers, and price changes for our solutions.
5. Veeva is not able, at this time, to provide GAAP targets for operating income and fully diluted net income per share for the first fiscal quarter ending April 30, 2022 or fiscal year ending January 31, 2023 because of the difficulty of estimating certain items excluded from non-GAAP operating income and non-GAAP fully diluted net income per share that cannot be reasonably predicted, such as charges related to stock-based compensation expense. The effect of these excluded items may be significant.

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© 2022 Veeva Systems Inc. All rights reserved. Veeva, V, Vault and Crossix are registered trademarks of Veeva Systems Inc.

About Veeva Systems

Veeva is the global leader in cloud software for the life sciences industry. Committed to innovation, product excellence, and customer success, Veeva serves more than 1,000 customers, ranging from the world's largest pharmaceutical companies to emerging biotechs. As a Public Benefit Corporation, Veeva is committed to balancing the interests of all stakeholders, including customers, employees, shareholders and the industries it serves. For more information, visit veeva.com.

Veeva uses its ir.veeva.comwebsite as a means of disclosing material non-public information, announcing upcoming investor conferences, and for complying with its disclosure obligations under Regulation FD. Accordingly, you should monitor our investor relations website in addition to following our press releases, SEC filings, and public conference calls and webcasts.

Forward-looking Statements

This release contains forward-looking statements regarding Veeva's expected future performance and, in particular, includes quotations of management and guidance provided as of March 2, 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 release 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, and general macroeconomic and geo-political events (including impacts related to events in Ukraine). We have summarized on one page what we believe are the principal risks to our business in a section titled "Summary of Risk Factors" on page 39 in our filing on Form 10-Q for the period ended October 31, 2021, 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.

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Investor Relations Contact:

Ato Garrett

Veeva Systems Inc. [e-mail]

Media Contact: Maria Scurry Veeva Systems Inc. 781-366-7617 [e-mail]

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© 2022 Veeva Systems Inc. All rights reserved. Veeva, V, Vault and Crossix are registered trademarks of Veeva Systems Inc.

VEEVA SYSTEMS INC.

CONSOLIDATED BALANCE SHEETS

(In thousands)

(Unaudited)

			January 31,			January 31,
			2022			2021
Assets
Current assets:
Cash and cash equivalents	$	1,138,040	$	730,504
Short-term investments		1,238,064			933,122
Accounts receivable, net		631,134			564,387
Unbilled accounts receivable		63,266			47,206
Prepaid expenses and other current assets		36,679			35,607
Total current assets		3,107,183			2,310,826
Property and equipment, net		54,495			53,650
Deferred costs, net		33,106			42,072
Lease right-of-use assets		49,640			56,917
Goodwill		439,877			436,029
Intangible assets, net		101,940			114,595
Deferred income taxes		5,097			14,100
Other long-term assets		25,127			17,878
Total assets	$	3,816,465	$	3,046,067
Liabilities and stockholders' equity
Current liabilities:
Accounts payable	$	20,348	$	23,253
Accrued compensation and benefits		33,834			30,410
Accrued expenses and other current liabilities		36,109			30,982
Income tax payable		7,761			2,590
Deferred revenue		731,746			616,992
Lease liabilities		10,981			11,725
Total current liabilities		840,779			715,952
Deferred income taxes		2,216			1,835
Lease liabilities, noncurrent		43,607			51,393
Other long-term liabilities		18,226			10,567
Total liabilities		904,828			779,747
Stockholders' equity:
Class A common stock		2			2
Class B common stock		-			-
Additional paid-in capital		1,196,547			965,670
Accumulated other comprehensive (loss) income		(11,958)			992
Retained earnings		1,727,046			1,299,656
Total stockholders' equity		2,911,637			2,266,320
Total liabilities and stockholders' equity	$	3,816,465	$	3,046,067

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© 2022 Veeva Systems Inc. All rights reserved. Veeva, V, Vault and Crossix are registered trademarks of Veeva Systems Inc.