Veeva : Q4 2023 Financial Results

FOR IMMEDIATE RELEASE

Veeva Announces Fourth Quarter and Fiscal Year 2023 Results

Fiscal Year 2023 Total Revenues of $2,155.1M, up 16% Year Over Year;

Q4 Total Revenues of $563.4M, up 16% Year Over Year

Fiscal Year 2023 Subscription Services Revenues of $1,733.0M, up 17% Year Over Year;

Q4 Subscription Services Revenues of $460.2M, up 16% Year Over Year

PLEASANTON, CA - March 1, 2023 - 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, 2023.

"Our partnership with the industry strengthened in all customer segments and geographies this year as we build a durable, growth business for the long term," said CEO Peter Gassner. "We are early in our very large industry cloud opportunity with an exceptional product innovation and execution engine. It's this combination of opportunity and execution that positions us well for the future."

Fiscal 2023 Fourth Quarter Results:

• Revenues: Total revenues for the fourth quarter were $563.4 million, up from $485.5 million one year ago, an increase of 16% year over year. Subscription services revenues for the fourth quarter were $460.2 million, up from $395.7 million one year ago, an increase of 16% year over year.
• Operating Income and Non-GAAPOperating Income(1): Fourth quarter operating income was $108.9 million, compared to $119.7 million one year ago, a decrease of 9% year over year. Non- GAAP operating income for the fourth quarter was $209.4 million, compared to $186.3 million one year ago, an increase of 12% year over year.
• Net Income and Non-GAAPNet Income(1): Fourth quarter net income was $188.5 million, compared to $97.1 million one year ago, an increase of 94% year over year. Non-GAAP net income for the fourth quarter was $186.3 million, compared to $147.0 million one year ago, an increase of 27% 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 $1.16, compared to $0.60 one year ago, while non-GAAP fully diluted net income per share was $1.15, compared to $0.90 one year ago.

Fiscal Year 2023 Results:

• Revenues: Total revenues for the fiscal year ended January 31, 2023 were $2,155.1 million, up from $1,850.8 million one year ago, an increase of 16% year over year. Subscription services revenues were $1,733.0 million, up from $1,484.0 million one year ago, an increase of 17% year over year.
• Operating Income and Non-GAAPOperating Income(1): Fiscal year 2023 operating income was $459.1 million, compared to $505.5 million one year ago, a decrease of 9% year over year. Non-GAAP operating income for fiscal year 2023 was $830.5 million, compared to $758.7 million one year ago, an increase of 9% year over year.

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© 2023 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 2023 net income was $487.7 million, compared to $427.4 million one year ago, an increase of 14% year over year. Non-GAAP net income for fiscal year 2023 was $695.6 million, compared to $604.7 million one year ago, an increase of 15% year over year.
• Net Income per Share and Non-GAAPNet Income per Share(1): For fiscal year 2023, fully diluted net income per share was $3.00, compared to $2.63 one year ago, while non-GAAP fully diluted net income per share was $4.28, compared to $3.73 one year ago.

"Veeva ended the fiscal year with another quarter of broad-based growth and profitability," said CFO Brent Bowman. "We are taking a disciplined, long-term approach, and investing in the right people and the right markets as we progress toward achieving our 2025 targets a year early."

Recent Highlights:

• Expanding Partnership with the Life Sciences Industry - Progressing on its vision to become the most strategic partner to the industry, Veeva finished the year with 1,388 customers, up 174 from the year prior. Veeva Commercial Solutions ended the year with a total of 684 customers and Veeva R&D Solutions ended the year with a total of 1,025 customers.(2)(3)
• Veeva Vault EDC for Six Top 20 Pharmas - Veeva Vault EDC signed three additional top 20 pharmas in the fourth quarter for a total of six top 20 pharmas now committed to using Vault
  EDC for all new clinical trials. Vault EDC is part of Veeva's overall clinical data management suite, which also includes solutions for data cleansing and aggregation, ePro, and RTSM.
• Surpassing $2 Billion in Revenue with a Long Runway Ahead - This milestone reflects growing revenue across Commercial and R&D Solutions. Early in its industry cloud opportunity and with a focus on customer success and product excellence, Veeva continues to innovate to support the most critical functions for a life sciences company and now delivers more than 30 major software and data products designed to advance the industry.

Financial Outlook:

Veeva is providing guidance for its fiscal first quarter ending April 30, 2023 as follows:

• Total revenues between $514 and $516 million.
• Non-GAAPoperating income between $141 and $143 million(4).
• Non-GAAPfully diluted net income per share between $0.79 and $0.80(4).

Veeva is providing guidance for its fiscal year ending January 31, 2024 as follows:

• Total revenues between $2,350 and $2,360 million.
• Non-GAAPoperating income of about $800 million(4).
• Non-GAAPfully diluted net income per share of approximately $4.33(4).

Veeva is providing guidance for its fiscal year ending January 31, 2025 for the following metrics:

• Total revenues of at least $2,800 million.
• Non-GAAPoperating income of at least $1,000 million(4).

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© 2023 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 1, 2023, and a replay of the call will be available on Veeva's investor relations website.

What:	Veeva Systems Fourth Quarter and Fiscal Year 2023 Results Conference Call
When:	Wednesday, March 1, 2023
Time:	2:00 p.m. PT (5:00 p.m. ET)
Online Registration:	https://conferencingportals.com/event/badXudFz
Webcast:	ir.veeva.com
___________

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. Commercial Solutions consist of our Veeva Commercial Cloud, Veeva Data Cloud, and Veeva Claims solutions. R&D Solutions consist of our Veeva Development Cloud, Veeva RegulatoryOne, and Veeva QualityOne solutions.
3. Customer count totals are presented net of customer attrition during the period.
4. 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, 2023, fiscal year ending January 31, 2024, or fiscal year ending January 31, 2025 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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© 2023 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 quotes from management and guidance provided as of March 1, 2023 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, issues that impact our ability to hire, retain and adequately compensate talented employees, and general macroeconomic and geopolitical events (including inflationary pressures, rising interest rates, currency exchange fluctuations, impacts related to Russia's invasion of Ukraine, and the pandemic). We have summarized what we believe are the principal risks to our business in a section titled "Summary of Risk Factors" on pages 39 and 40 in our filing on Form 10-Q for the period ended October 31, 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]

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© 2023 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,
			2023			2022
Assets
Current assets:
Cash and cash equivalents	$	886,465	$	1,138,040
Short-term investments		2,216,163			1,238,064
Accounts receivable, net		703,055			631,134
Unbilled accounts receivable		82,174			63,266
Prepaid expenses and other current assets		81,456			36,679
Total current assets		3,969,313			3,107,183
Property and equipment, net		49,817			54,495
Deferred costs, net		31,825			33,106
Lease right-of-use assets		55,336			49,640
Goodwill		439,877			439,877
Intangible assets, net		82,476			101,940
Deferred income taxes		136,697			5,097
Other long-term assets		38,955			25,127
Total assets	$	4,804,296	$	3,816,465
Liabilities and stockholders' equity
Current liabilities:
Accounts payable	$	41,678	$	20,348
Accrued compensation and benefits		44,282			33,834
Accrued expenses and other current liabilities		35,306			36,109
Income tax payable		4,946			7,761
Deferred revenue		869,285			731,746
Lease liabilities		11,306			10,981
Total current liabilities		1,006,803			840,779
Deferred income taxes		1,492			2,216
Lease liabilities, noncurrent		49,670			43,607
Other long-term liabilities		30,079			18,226
Total liabilities		1,088,044			904,828
Stockholders' equity:
Class A common stock		2			2
Class B common stock		-			-
Additional paid-in capital		1,532,627			1,196,547
Accumulated other comprehensive loss		(31,129)			(11,958)
Retained earnings		2,214,752			1,727,046
Total stockholders' equity		3,716,252			2,911,637
Total liabilities and stockholders' equity	$	4,804,296	$	3,816,465

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© 2023 Veeva Systems Inc. All rights reserved. Veeva, V, Vault and Crossix are registered trademarks of Veeva Systems Inc.