Veeva : Press Release ( PDF 617 KB )

FOR IMMEDIATE RELEASE

Veeva Announces Fiscal 2023 Second Quarter Results

Total Revenues of $534.2M, up 17% Year Over Year;

Subscription Services Revenues of $428.6M, up 17% Year Over Year

PLEASANTON, CA - August 31, 2022 - Veeva Systems Inc. (NYSE: VEEV), a leading provider of industry cloud solutions for the global life sciences industry, today announced results for its second quarter ended July 31, 2022.

"Our innovation engine is delivering more value to our customers than ever as we continue making progress with established and newly launched products in commercial and R&D," said CEO Peter Gassner. "We are early in a large and growing opportunity and look forward to expanding our position as the strategic technology partner to the life sciences industry across their most critical functions."

Fiscal 2023 Second Quarter Results:

• Revenues: Total revenues for the second quarter were $534.2 million, up from $455.6
  million one year ago, an increase of 17% year over year. Subscription services revenues for the second quarter were $428.6 million, up from $366.4 million one year ago, an increase of 17% year over year.
• Operating Income and Non-GAAPOperating Income(1): Second quarter operating income was $101.1 million, compared to $124.6 million one year ago, a decrease of 19% year over year. Non-GAAP operating income for the second quarter was $202.0 million, compared to $191.6 million one year ago, an increase of 5% year over year.
• Net Income and Non-GAAPNet Income(1): Second quarter net income was $90.6 million, compared to $108.9 million one year ago, a decrease of 17% year over year. Non-GAAP net income for the second quarter was $166.2 million, compared to $152.7 million one year ago, an increase of 9% year over year.
• Net Income per Share and Non-GAAPNet Income per Share(1): For the second quarter, fully diluted net income per share was $0.56, compared to $0.67 one year ago, while non-GAAP fully diluted net income per share was $1.03, compared to $0.94 one year ago.

"Veeva's durable business model delivered another quarter of solid revenue growth and strong profitability," said CFO Brent Bowman. "We are very confident in our competitive position and we are performing well financially as we track ahead of our 2025 targets."

Recent Highlights:

• Leading Through Innovation in Commercial - Veeva continues to expand its leadership through product excellence and customer success in core and new product areas. This quarter saw a significant Veeva CRM release with major innovations to optimize content use across channels to enable efficient and compliant hybrid engagement models.

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

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• A Record Number of Customers for Veeva Quality - This quarter saw a major milestone with Veeva Vault Quality, as more than 500 customers are now using at least one Vault Quality Suite product, including more than 200 Vault Training customers. Strong momentum in the second quarter included a record 52 Vault Quality customer wins and significant progress on Vault QMS projects with enterprise customers. New product innovations in Vault LIMS and Vault Validation Management are progressing well and will start working with early-adoptercustomers later this year.
• Groundbreaking Insights from Veeva Business Consulting - Veeva Business Consulting published the Veeva Pulse Field Trends Report, a first-ever industrywide view of global customer engagement based upon more than 130 million quarterly HCP interactions. With a unique foundation of data-driven insights and a deep knowledge of Veeva products, Veeva Business Consulting had a record revenue quarter and is quickly becoming a strategic resource to help customers realize their digital transformation.
• Victory for Employee Rights and the Industry - In a major win for employee rights and the life sciences industry, a federal court dismissed the baseless trade secret lawsuit Medidata filed against Veeva in 2017, blocking Medidata's attempt to stifle innovation and free flow of talent. Finding that Medidata was unable to substantiate its claims against Veeva, the judge ended the proceedings and rejected the suit midway through the jury trial. Veeva has been a long-standing supporter of employee rights and the movement to ban the use of non-competeagreements. Medidata's abusive lawsuit further underscores the need for greater protection of worker rights to freely change employers, which promotes fair competition and economic growth.

Financial Outlook:

Veeva is providing guidance for its fiscal third quarter ending October 31, 2022 as follows:

• Total revenues between $545 and $547 million.
• Non-GAAPoperating income between $209 and $211 million(2).
• Non-GAAPfully diluted net income per share between $1.07 and $1.08(2).

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

• Total revenues between $2,140 and $2,145 million.
• Non-GAAPoperating income of about $820 million(2).
• Non-GAAPfully diluted net income per share of approximately $4.17(2).

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

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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, August 31, 2022, and a replay of the call will be available on Veeva's investor relations website.

What:	Veeva Systems Fiscal 2023 Second Quarter Results Conference Call
When:	Wednesday, August 31, 2022
Time:	2:00 p.m. PT (5:00 p.m. ET)
Online Registration:	https://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. Veeva is not able, at this time, to provide GAAP targets for operating income and fully diluted net income per share for the third fiscal quarter ending October 31, 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 and amortization of purchased intangibles. The effect of these excluded items may be significant.

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

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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 quotes from management and 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 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, 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.

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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]

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

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VEEVA SYSTEMS INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)

(Unaudited)

			July 31,			January 31,
			2022			2022
Assets
Current assets:
Cash and cash equivalents	$	1,140,246	$	1,138,040
Short-term investments		1,778,861			1,238,064
Accounts receivable, net		313,219			631,134
Unbilled accounts receivable		77,778			63,266
Prepaid expenses and other current assets		46,038			36,679
Total current assets		3,356,142			3,107,183
Property and equipment, net		52,409			54,495
Deferred costs, net		27,877			33,106
Lease right-of-use assets		58,539			49,640
Goodwill		439,877			439,877
Intangible assets, net		92,288			101,940
Deferred income taxes		62,059			5,097
Other long-term assets		27,392			25,127
Total assets	$	4,116,583	$	3,816,465
Liabilities and stockholders' equity
Current liabilities:
Accounts payable	$	30,915	$	20,348
Accrued compensation and benefits		36,609			33,834
Accrued expenses and other current liabilities		30,714			36,109
Income tax payable		5,143			7,761
Deferred revenue		684,642			731,746
Lease liabilities		11,366			10,981
Total current liabilities		799,389			840,779
Deferred income taxes		1,657			2,216
Lease liabilities, noncurrent		52,106			43,607
Other long-term liabilities		19,500			18,226
Total liabilities		872,652			904,828
Stockholders' equity:
Class A common stock		2			2
Class B common stock		-			-
Additional paid-in capital		1,353,502			1,196,547
Accumulated other comprehensive loss		(27,335)			(11,958)
Retained earnings		1,917,762			1,727,046
Total stockholders' equity		3,243,931			2,911,637
Total liabilities and stockholders' equity	$	4,116,583	$	3,816,465

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

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