Veeva : Press Release ( PDF 326 KB )

FOR IMMEDIATE RELEASE

Veeva Announces Fiscal 2023 First Quarter Results

Total Revenues of $505.1M, up 16% Year Over Year;

Subscription Services Revenues of $402.6M, up 18% Year Over Year

PLEASANTON, CA - June 1, 2022 - Veeva Systems Inc. (NYSE: VEEV), a leading provider of industry cloud solutions for the global life sciences industry, today announced results for its first quarter ended April 30, 2022.

"It was a great quarter of innovation and deepening our strategic partnership with the industry," said CEO Peter Gassner. "We announced major new innovations, advanced in key areas that will have very positive impacts over the long term, and got the industry back together in person at Veeva Summit. Thanks to our customers for the energy and ideas as we challenge each other in our work to improve the lives of patients."

Fiscal 2023 First Quarter Results:

• Revenues: Total revenues for the first quarter were $505.1 million, up from $433.6 million one year ago, an increase of 16% year over year. Subscription services revenues for the first quarter were $402.6 million, up from $341.1 million one year ago, an increase of 18% year over year.
• Operating Income and Non-GAAPOperating Income(1): First quarter operating income was $127.7 million, compared to $128.4 million one year ago, a decrease of 1% year over year. Non- GAAP operating income for the first quarter was $199.6 million, compared to $181.4 million one year ago, an increase of 10% year over year.
• Net Income and Non-GAAPNet Income(1): First quarter net income was $100.1 million, compared to $115.6 million one year ago, a decrease of 13% year over year. Non-GAAP net income for the first quarter was $159.8 million, compared to $146.9 million one year ago, an increase of 9% year over year.
• Net Income per Share and Non-GAAPNet Income per Share(1): For the first quarter, fully diluted net income per share was $0.62, compared to $0.71 one year ago, while non-GAAP fully diluted net income per share was $0.99, compared to $0.91 one year ago.

"We are starting the year with a strong first quarter and have crossed the $2 billion revenue run rate mark," said CFO Brent Bowman. "Our multiple engines of long-term growth and innovation will continue to fuel strong expansion and customer success well into the future."

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

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Recent Highlights:

• Continued Strength and Growing Opportunity in Veeva Development Cloud - Progress to establish Veeva Development Cloud as the operating system for the product life cycle continued in the quarter. Partnering on this vision, in Q1 a top 20 pharma selected twelve Development Cloud products across clinical, quality, and regulatory as their enterprise standard. Product excellence and customer success are fueling expansion across the customer base and as of Q1, now more than 350 customers have at least two Development Cloud applications. With a long tail of growth ahead, the company is just 15% penetrated in the current $7 billion total addressable market opportunity on the R&D side.
• Veeva Link Expands with New Applications for Real-timeIntelligence - Veeva Link expands with four new data applications for commercial and medical teams. This expansion reflects the growing impact and potential of Veeva Link as the platform matures into a powerful foundation to build high-value data applications with speed and quality. Veeva Link also continued its strong growth with new customer wins as well as major enterprise expansions in the quarter.
• Innovating in Data with a Common Architecture for the Industry - With a long-term commitment to bringing better data to the industry, all on a common data architecture, the company announced Veeva Data Cloud, as the overall brand for its growing family of data applications. This includes Veeva OpenData for customer reference data, Veeva Link for real- time intelligence, and Veeva Compass patient, prescriber, and sales data for the U.S. market. With better data on common data architecture sales, medical, and marketing teams can work together in a more coordinated, customer-centric, and compliant way.
• Advancing the Industry to Commercial Excellence - Its first in-person summit of the year, the company brought together more than 1,400 attendees for Veeva Commercial Summit in Boston in early May. One of the largest commercial life sciences gatherings in the world, the event was an important forum for innovation and connection and key to advancing the industry toward commercial excellence. Veeva Summits are fundamental to Veeva's role as a strategic partner in bringing the industry together, fuel Veeva product excellence, and drive customer success.

Financial Outlook:

Veeva is providing guidance for its fiscal second quarter ending July 31, 2022 as follows:

• Total revenues between $529 and $531 million.
• Non-GAAPoperating income between $201 and $203 million(2).
• Non-GAAPfully diluted net income per share between $1.00 and $1.01(2).

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

• Total revenues between $2,165 and $2,175 million.
• Non-GAAPoperating income of about $835 million(2).
• Non-GAAPfully diluted net income per share of approximately $4.16(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, June 1, 2022, and a replay of the call will be available on Veeva's investor relations website.

What:	Veeva Systems Fiscal 2023 First Quarter Results Conference Call
When:	Wednesday, June 1, 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 second fiscal quarter ending July 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 June 1, 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 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 13 and 14 in our filing on Form 10-K for the fiscal year ended January 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-K 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)

			April 30,			January 31,
			2022			2022
Assets
Current assets:
Cash and cash equivalents	$	1,239,998	$	1,138,040
Short-term investments		1,598,555			1,238,064
Accounts receivable, net		329,677			631,134
Unbilled accounts receivable		61,971			63,266
Prepaid expenses and other current assets		45,094			36,679
Total current assets		3,275,295			3,107,183
Property and equipment, net		53,816			54,495
Deferred costs, net		30,192			33,106
Lease right-of-use assets		48,887			49,640
Goodwill		439,877			439,877
Intangible assets, net		97,194			101,940
Deferred income taxes		40,674			5,097
Other long-term assets		25,287			25,127
Total assets	$	4,011,222	$	3,816,465
Liabilities and stockholders' equity
Current liabilities:
Accounts payable	$	25,404	$	20,348
Accrued compensation and benefits		33,214			33,834
Accrued expenses and other current liabilities		33,931			36,109
Income tax payable		50,984			7,761
Deferred revenue		723,721			731,746
Lease liabilities		11,606			10,981
Total current liabilities		878,860			840,779
Deferred income taxes		1,725			2,216
Lease liabilities, noncurrent		42,462			43,607
Other long-term liabilities		19,900			18,226
Total liabilities		942,947			904,828
Stockholders' equity:
Class A common stock		2			2
Class B common stock		-			-
Additional paid-in capital		1,265,323			1,196,547
Accumulated other comprehensive loss		(24,211)			(11,958)
Retained earnings		1,827,161			1,727,046
Total stockholders' equity		3,068,275			2,911,637
Total liabilities and stockholders' equity	$	4,011,222	$	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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