Total Revenues of $650.3M, up 24% Year Over
Year;
Subscription Services Revenues of $534.0M, up 29% Year Over Year
PLEASANTON, Calif., May 30, 2024
/PRNewswire/ -- 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, 2024.
"Thanks to our customers and the Veeva team we had an excellent
start to the year," said CEO Peter
Gassner. "We made major progress in Development Cloud,
Commercial Cloud, and Data Cloud."
Fiscal 2025 First Quarter Results:
- Revenues(1): Total revenues for the first
quarter were $650.3 million, up from
$526.3 million one year ago, an
increase of 24% year over year. Subscription services revenues for
the first quarter were $534.0
million, up from $414.5
million one year ago, an increase of 29% year over
year.
- Operating Income and Non-GAAP Operating
Income(1)(2): First quarter operating income was
$155.2 million, compared to
$61.5 million one year ago, an
increase of 152% year over year. Non-GAAP operating income for the
first quarter was $260.9 million,
compared to $157.0 million one year
ago, an increase of 66% year over year.
- Net Income and Non-GAAP Net Income(1)(2):
First quarter net income was $161.7
million, compared to $131.5
million one year ago, an increase of 23% year over year.
Non-GAAP net income for the first quarter was $247.0 million, compared to $147.9 million one year ago, an increase of 67%
year over year.
- Net Income per Share and Non-GAAP Net Income per
Share(1)(2): For the first quarter, fully diluted
net income per share was $0.98,
compared to $0.81 one year ago, while
non-GAAP fully diluted net income per share was $1.50, compared to $0.91 one year ago.
"Our results in the first quarter exceeded our guidance on all
metrics," said interim CFO and Board Director Tim Cabral. "We are investing for durable
growth, and I am confident our commitment to customer success and
product excellence will enable us to execute on the significant
life sciences opportunity ahead."
Recent Highlights:
- Three Top 20 Biopharmas Select Multiple Veeva Development
Cloud Applications – Momentum continued in the quarter,
with significant wins in clinical, quality, regulatory, and safety
including three top 20 biopharma wins for multiple Development
Cloud applications. All three wins included clinical, a critical
area for the industry with a lot of potential and where the
majority of Veeva's 11 clinical products are in the early stages of
adoption.
- Veeva Vault Basics Now Available – Vault Basics
applications are preconfigured with industry standard processes and
managed by Veeva with no implementation cost. This allows emerging
biotechs to start with Development Cloud earlier in their lifecycle
then graduate easily to full Development Cloud as they grow.
- Vault CRM Suite Progress Continues – With a unique
ability to bring together sales, marketing, and medical in a single
Vault for connected customer data, content, and processes, the
Vault CRM Suite can help the industry realize the vision of true
customer centricity. Major progress toward this goal continued with
the full availability of Vault CRM for all new customers in April.
Multiple customers are already live and there were 13 CRM wins in
the quarter. Veeva also announced planned availability dates for
new applications in the Vault CRM Suite with Service Center coming
in August and Campaign Manager in December.
- Better Commercial Data for the Industry with Veeva Data
Cloud – Veeva added a record 21 new brands for Compass Patient
in the first quarter, including its first seven-figure
enterprise-wide win with a top 50 biopharma. It also signed the
first Compass Prescriber and Compass National customers, following
the products' release in January. Compass is gaining traction
because it delivers data for in-office therapies and retail
prescriptions, giving customers more complete and more accurate
data than legacy alternatives. Veeva Link also continued to
progress well, crossing the 100-customer mark, as the industry
enhances engagement through real-time intelligence.
Financial Outlook:
Veeva is providing guidance for its fiscal second quarter ending
July 31, 2024 as follows:
- Total revenues between $666 and
$669 million.
- Non-GAAP operating income between $265 and $267
million(3).
- Non-GAAP fully diluted net income per share between
$1.53 and $1.54(3).
Veeva is providing updated guidance for its fiscal year ending
January 31, 2025 as follows:
- Total revenues between $2,700 and
$2,710 million.
- Non-GAAP operating income of about $1,070 million(3).
- Non-GAAP fully diluted net income per share of approximately
$6.16(3).
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,
May 30, 2024, and a replay of the call will be available on
Veeva's investor relations website.
What:
|
Veeva Systems Fiscal
2025 First Quarter Results Conference Call
|
When:
|
Thursday, May 30,
2024
|
Time:
|
2:00 p.m. PT (5:00 p.m.
ET)
|
Online
Registration:
|
https://registrations.events/direct/Q4I8741326
|
|
|
Webcast:
|
ir.veeva.com
|
|
|
|
|
|
|
|
|
|
|
(1)
|
The customer
contracting change that standardized termination for convenience
(TFC) rights in our master subscription agreements resulted in a
change in the timing of revenue for certain customer contracts and
reduced revenues, operating income and non-GAAP operating income,
and net income and non-GAAP net income in the first quarter of
fiscal 2024.
|
(2)
|
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.
|
(3)
|
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, 2024 or the 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.
|
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.com website 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 May 30, 2024, 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 issues related to the
performance, security, or privacy of our products, competitive
factors, customer decisions and priorities, events that impact the
life sciences industry, general macroeconomic and geopolitical
events (including inflationary pressures, changes in interest
rates, currency exchange fluctuations and impacts related to
Russia's invasion of Ukraine and the Israel-Hamas conflict), and
issues that impact our ability to hire, retain and adequately
compensate talented employees. We have summarized what we believe
are the principal risks to our business in a section titled
"Summary of Risk Factors" on pages 9 and 10 in our filing on Form
10-K for the period ended January 31, 2024 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.
Investor Relations Contact:
Gunnar Hansen
Veeva Systems Inc.
267-460-5839
ir@veeva.com
Media Contact:
Maria
Scurry
Veeva Systems Inc.
781-366-7617
pr@veeva.com
VEEVA SYSTEMS
INC.
CONDENSED
CONSOLIDATED BALANCE SHEETS
(In
thousands)
(Unaudited)
|
|
|
April 30,
2024
|
|
January 31,
2024
|
Assets
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$ 1,197,196
|
|
$
703,487
|
Short-term
investments
|
3,567,841
|
|
3,324,269
|
Accounts receivable,
net
|
362,320
|
|
852,172
|
Unbilled accounts
receivable
|
38,771
|
|
36,365
|
Prepaid expenses and
other current assets
|
78,820
|
|
86,918
|
Total current
assets
|
5,244,948
|
|
5,003,211
|
Property and equipment,
net
|
58,042
|
|
58,532
|
Deferred costs,
net
|
23,967
|
|
23,916
|
Lease right-of-use
assets
|
44,583
|
|
45,602
|
Goodwill
|
439,877
|
|
439,877
|
Intangible assets,
net
|
58,231
|
|
63,017
|
Deferred income
taxes
|
266,060
|
|
233,463
|
Other long-term
assets
|
51,850
|
|
43,302
|
Total
assets
|
$ 6,187,558
|
|
$ 5,910,920
|
|
|
|
|
Liabilities and
stockholders' equity
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$
31,930
|
|
$
31,513
|
Accrued compensation
and benefits
|
38,755
|
|
43,433
|
Accrued expenses and
other current liabilities
|
41,187
|
|
32,980
|
Income tax
payable
|
71,567
|
|
11,862
|
Deferred
revenue
|
1,029,455
|
|
1,049,761
|
Lease
liabilities
|
10,392
|
|
9,334
|
Total current
liabilities
|
1,223,286
|
|
1,178,883
|
Deferred income
taxes
|
705
|
|
2,052
|
Lease liabilities,
noncurrent
|
45,351
|
|
46,441
|
Other long-term
liabilities
|
28,835
|
|
38,720
|
Total
liabilities
|
1,298,177
|
|
1,266,096
|
Stockholders'
equity:
|
|
|
|
Class A common
stock
|
2
|
|
2
|
Additional paid-in
capital
|
2,017,904
|
|
1,915,002
|
Accumulated other
comprehensive loss
|
(30,646)
|
|
(10,637)
|
Retained
earnings
|
2,902,121
|
|
2,740,457
|
Total stockholders'
equity
|
4,889,381
|
|
4,644,824
|
Total liabilities
and stockholders' equity
|
$ 6,187,558
|
|
$ 5,910,920
|
VEEVA SYSTEMS
INC.
CONDENSED
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(In thousands,
except per share data)
(Unaudited)
|
|
|
Three months
ended
April 30,
|
|
2024
|
|
2023
|
Revenues:
|
|
|
|
Subscription
services(4)
|
$ 533,955
|
|
$ 414,546
|
Professional services
and other(5)
|
116,390
|
|
111,779
|
Total
revenues
|
650,345
|
|
526,325
|
Cost of
revenues(6):
|
|
|
|
Cost of subscription
services
|
78,148
|
|
67,575
|
Cost of professional
services and other
|
95,736
|
|
99,088
|
Total cost of
revenues
|
173,884
|
|
166,663
|
Gross profit
|
476,461
|
|
359,662
|
Operating
expenses(6):
|
|
|
|
Research and
development
|
162,711
|
|
146,960
|
Sales and
marketing
|
97,301
|
|
88,503
|
General and
administrative
|
61,277
|
|
62,669
|
Total operating
expenses
|
321,289
|
|
298,132
|
Operating
income
|
155,172
|
|
61,530
|
Other income,
net
|
51,729
|
|
30,248
|
Income before income
taxes
|
206,901
|
|
91,778
|
Income tax provision
(benefit)
|
45,237
|
|
(39,743)
|
Net
income
|
$ 161,664
|
|
$ 131,521
|
Net income per
share:
|
|
|
|
Basic
|
$
1.00
|
|
$
0.82
|
Diluted
|
$
0.98
|
|
$
0.81
|
Weighted-average
shares used to compute net income per share:
|
|
|
|
Basic
|
161,421
|
|
159,852
|
Diluted
|
164,394
|
|
162,521
|
Other comprehensive
income:
|
|
|
|
Net change in
unrealized loss on available-for-sale investments
|
$ (18,861)
|
|
$
5,428
|
Net change in
cumulative foreign currency translation loss
|
(1,148)
|
|
(58)
|
Comprehensive
income
|
$ 141,655
|
|
$ 136,891
|
|
|
|
|
(4)
Includes subscription services revenues
from the following product areas:
|
|
|
|
Veeva Commercial
Solutions
|
$ 261,316
|
|
$ 239,324
|
Veeva R&D
Solutions
|
272,639
|
|
175,222
|
Total subscription
services
|
$ 533,955
|
|
$ 414,546
|
|
|
|
|
(5)
Includes professional services and other
revenues from the following product areas:
|
|
|
|
Veeva Commercial
Solutions
|
$
48,772
|
|
$
44,864
|
Veeva R&D
Solutions
|
67,618
|
|
66,915
|
Total professional
services and other
|
$ 116,390
|
|
$ 111,779
|
|
|
|
|
(6)
Includes stock-based compensation as
follows:
|
|
|
|
Cost of
revenues:
|
|
|
|
Cost of subscription
services
|
$
1,554
|
|
$
1,505
|
Cost of professional
services and other
|
12,535
|
|
12,722
|
Research and
development
|
41,743
|
|
38,906
|
Sales and
marketing
|
23,043
|
|
20,135
|
General and
administrative
|
17,036
|
|
17,451
|
Total stock-based
compensation
|
$
95,911
|
|
$
90,719
|
VEEVA SYSTEMS
INC.
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In
thousands)
(Unaudited)
|
|
|
Three months
ended
April 30,
|
|
2024
|
|
2023
|
Cash flows from
operating activities
|
|
|
|
Net income
|
$ 161,664
|
|
$ 131,521
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
Depreciation and
amortization
|
8,499
|
|
7,549
|
Reduction of operating
lease right-of-use assets
|
2,783
|
|
3,060
|
Accretion of discount
on short-term investments
|
(6,187)
|
|
(3,407)
|
Stock-based
compensation
|
95,911
|
|
90,719
|
Amortization of
deferred costs
|
3,803
|
|
5,052
|
Deferred income
taxes
|
(26,539)
|
|
(21,514)
|
Loss on foreign
currency from mark-to-market derivative
|
1,082
|
|
180
|
Bad debt (recovery)
expense
|
(152)
|
|
155
|
Changes in operating
assets and liabilities:
|
|
|
|
Accounts
receivable
|
490,004
|
|
289,960
|
Unbilled accounts
receivable
|
(2,406)
|
|
44,104
|
Deferred
costs
|
(3,854)
|
|
3,607
|
Other current and
long-term assets
|
8,160
|
|
(36,298)
|
Accounts
payable
|
280
|
|
1,955
|
Accrued expenses and
other current liabilities
|
2,597
|
|
(3,344)
|
Income taxes
payable
|
59,705
|
|
(329)
|
Deferred
revenue
|
(31,292)
|
|
(1,221)
|
Operating lease
liabilities
|
(1,643)
|
|
(2,693)
|
Other long-term
liabilities
|
1,101
|
|
(3,120)
|
Net cash provided
by operating activities
|
763,516
|
|
505,936
|
Cash flows from
investing activities
|
|
|
|
Purchases of
short-term investments
|
(777,831)
|
|
(612,492)
|
Maturities and sales
of short-term investments
|
513,929
|
|
318,056
|
Long-term
assets
|
(8,476)
|
|
(2,958)
|
Net cash used in
investing activities
|
(272,378)
|
|
(297,394)
|
Cash flows from
financing activities
|
|
|
|
Proceeds from exercise
of common stock options
|
28,434
|
|
15,233
|
Taxes paid related to
net share settlement of equity awards
|
(24,606)
|
|
(16,625)
|
Net cash provided
by (used in) financing activities
|
3,828
|
|
(1,392)
|
Effect of exchange rate
changes on cash, cash equivalents, and restricted cash
|
(1,257)
|
|
19
|
Net change in cash,
cash equivalents, and restricted cash
|
493,709
|
|
207,169
|
Cash, cash equivalents,
and restricted cash at beginning of period
|
706,670
|
|
889,650
|
Cash, cash
equivalents, and restricted cash at end of period
|
$
1,200,379
|
|
$
1,096,819
|
|
|
|
|
Supplemental
disclosures of other cash flow information:
|
|
|
|
Excess tax benefits
from employee stock plans
|
$
3,121
|
|
$
62,089
|
Non-GAAP Financial Measures
In Veeva's public
disclosures, Veeva has provided non-GAAP measures, which it defines
as financial information that has not been prepared in accordance
with generally accepted accounting principles in the United States, or GAAP. In addition to its
GAAP measures, Veeva uses these non-GAAP financial measures
internally for budgeting and resource allocation purposes and in
analyzing its financial results. For the reasons set forth below,
Veeva believes that excluding the following items provides
information that is helpful in understanding its operating results,
evaluating its future prospects, comparing its financial results
across accounting periods, and comparing its financial results to
its peers, many of which provide similar non-GAAP financial
measures.
- Excess tax benefits. Excess tax benefits from employee stock
plans are dependent on previously agreed-upon equity grants to our
employees, vesting of those grants, stock price, and exercise
behavior of our employees, which can fluctuate from quarter to
quarter. Because these fluctuations are not directly related to our
business operations, Veeva excludes excess tax benefits for its
internal management reporting processes. Veeva management also
finds it useful to exclude excess tax benefits when assessing the
level of cash provided by operating activities. Given the nature of
the excess tax benefits, Veeva believes excluding it allows
investors to make meaningful comparisons between our operating cash
flows from quarter to quarter and those of other companies.
- Stock-based compensation expenses. Veeva excludes stock-based
compensation expenses primarily because they are non-cash expenses
that Veeva excludes from its internal management reporting
processes. Veeva's management also finds it useful to exclude these
expenses when they assess the appropriate level of various
operating expenses and resource allocations when budgeting,
planning and forecasting future periods. Moreover, because of
varying available valuation methodologies, subjective assumptions
and the variety of award types that companies can use, Veeva
believes excluding stock-based compensation expenses allows
investors to make meaningful comparisons between our recurring core
business operating results and those of other companies.
- Amortization of purchased intangibles. Veeva incurs
amortization expense for purchased intangible assets in connection
with acquisitions of certain businesses and technologies.
Amortization of intangible assets is a non-cash expense and is
inconsistent in amount and frequency because it is significantly
affected by the timing, size of acquisitions and the inherent
subjective nature of purchase price allocations. Because these
costs have already been incurred and cannot be recovered, and are
non-cash expenses, Veeva excludes these expenses for its internal
management reporting processes. Veeva's management also finds it
useful to exclude these charges when assessing the appropriate
level of various operating expenses and resource allocations when
budgeting, planning and forecasting future periods. Investors
should note that the use of intangible assets contributed to
Veeva's revenues earned during the periods presented and will
contribute to Veeva's future period revenues as well.
- Litigation settlement. We exclude costs related to the
settlement of certain litigation matters because they are
non-recurring and outside the ordinary course of business. Because
these costs are unrelated to our day-to-day business operations, we
believe excluding them enables more consistent evaluation of our
operating results.
- Income tax effects on the difference between GAAP and non-GAAP
costs and expenses. The income tax effects that are excluded relate
to the imputed tax impact on the difference between GAAP and
non-GAAP costs and expenses due to stock-based compensation and
purchased intangibles for GAAP and non-GAAP measures.
There are limitations to using non-GAAP financial measures
because non-GAAP financial measures are not prepared in accordance
with GAAP and may be different from non-GAAP financial measures
provided by other companies. The non-GAAP financial measures are
limited in value because they exclude certain items that may have a
material impact upon our reported financial results. In addition,
they are subject to inherent limitations as they reflect the
exercise of judgments by Veeva's management about which items are
adjusted to calculate its non-GAAP financial measures. Veeva
compensates for these limitations by analyzing current and future
results on a GAAP basis as well as a non-GAAP basis and also by
providing GAAP measures in its public disclosures.
Non-GAAP financial measures should not be considered in
isolation from, or as a substitute for, financial information
prepared in accordance with GAAP. Veeva encourages its investors
and others to review its financial information in its entirety, not
to rely on any single financial measure to evaluate its business,
and to view its non-GAAP financial measures in conjunction with the
most directly comparable GAAP financial measures. A reconciliation
of GAAP to the non-GAAP financial measures has been provided in the
tables below.
The following tables reconcile the specific items excluded from
GAAP metrics in the calculation of non-GAAP metrics for the periods
shown below:
VEEVA SYSTEMS INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL
MEASURES
(Dollars in thousands)
(Unaudited)
|
|
The following tables
reconcile the specific items excluded from GAAP metrics in the
calculation of non-GAAP metrics for the periods shown
below:
|
|
Reconciliation of
Net Cash Provided by Operating Activities (GAAP basis to non-GAAP
basis)
|
Three months
ended
April 30,
|
|
|
2024
|
|
2023
|
|
Net cash provided by
operating activities on a GAAP basis
|
$
763,516
|
|
$
505,936
|
|
Excess tax benefits
from employee stock plans
|
(3,121)
|
|
(62,089)
|
|
Net cash provided by
operating activities on a non-GAAP basis
|
$
760,395
|
|
$
443,847
|
|
Net cash used in
investing activities on a GAAP basis
|
$
(272,378)
|
|
$
(297,394)
|
|
Net cash provided by
(used in) financing activities on a GAAP basis
|
$
3,828
|
|
$
(1,392)
|
|
|
|
|
|
|
Reconciliation of
Financial Measures (GAAP basis to non-GAAP basis)
|
Three months
ended
April 30,
|
|
|
2024
|
|
2023
|
|
Cost of subscription
services revenues on a GAAP basis
|
$
78,148
|
|
$
67,575
|
|
Stock-based
compensation expense
|
(1,554)
|
|
(1,505)
|
|
Amortization of
purchased intangibles
|
(1,099)
|
|
(1,090)
|
|
Cost of subscription
services revenues on a non-GAAP basis
|
$
75,495
|
|
$
64,980
|
|
|
|
|
|
|
Gross margin on
subscription services revenues on a GAAP basis
|
85.4 %
|
|
83.7 %
|
|
Stock-based
compensation expense
|
0.3
|
|
0.4
|
|
Amortization of
purchased intangibles
|
0.2
|
|
0.2
|
|
Gross margin on
subscription services revenues on a non-GAAP basis
|
85.9 %
|
|
84.3 %
|
|
|
|
|
|
|
Cost of professional
services and other revenues on a GAAP basis
|
$
95,736
|
|
$
99,088
|
|
Stock-based
compensation expense
|
(12,535)
|
|
(12,722)
|
|
Amortization of
purchased intangibles
|
(134)
|
|
(134)
|
|
Cost of professional
services and other revenues on a non-GAAP basis
|
$
83,067
|
|
$
86,232
|
|
|
|
|
|
|
Gross margin on
professional services and other revenues on a GAAP basis
|
17.7 %
|
|
11.4 %
|
|
Stock-based
compensation expense
|
10.8
|
|
11.4
|
|
Amortization of
purchased intangibles
|
0.1
|
|
0.2
|
|
Gross margin on
professional services and other revenues on a non-GAAP
basis
|
28.6 %
|
|
23.0 %
|
|
|
|
|
|
|
Gross profit on a GAAP
basis
|
$
476,461
|
|
$
359,662
|
|
Stock-based
compensation expense
|
14,089
|
|
14,227
|
|
Amortization of
purchased intangibles
|
1,233
|
|
1,224
|
|
Gross profit on a
non-GAAP basis
|
$
491,783
|
|
$
375,113
|
|
|
|
|
|
|
Gross margin on total
revenues on a GAAP basis
|
73.3 %
|
|
68.3 %
|
|
Stock-based
compensation expense
|
2.2
|
|
2.7
|
|
Amortization of
purchased intangibles
|
0.1
|
|
0.3
|
|
Gross margin on total
revenues on a non-GAAP basis
|
75.6 %
|
|
71.3 %
|
|
|
|
|
|
|
Research and
development expense on a GAAP basis
|
$
162,711
|
|
$
146,960
|
|
Stock-based
compensation expense
|
(41,743)
|
|
(38,906)
|
|
Amortization of
purchased intangibles
|
(28)
|
|
(28)
|
|
Research and
development expense on a non-GAAP basis
|
$
120,940
|
|
$
108,026
|
|
|
|
|
|
|
|
Three months
ended
April 30,
|
|
|
2024
|
|
2023
|
|
|
|
|
|
|
Sales and marketing
expense on a GAAP basis
|
$
97,301
|
|
$
88,503
|
|
Stock-based
compensation expense
|
(23,043)
|
|
(20,135)
|
|
Amortization of
purchased intangibles
|
(3,469)
|
|
(3,439)
|
|
Sales and marketing
expense on a non-GAAP basis
|
$
70,789
|
|
$
64,929
|
|
|
|
|
|
|
General and
administrative expense on a GAAP basis
|
$
61,277
|
|
$
62,669
|
|
Stock-based
compensation expense
|
(17,036)
|
|
(17,451)
|
|
Amortization of
purchased intangibles
|
(55)
|
|
(55)
|
|
Litigation
settlement
|
(5,000)
|
|
—
|
|
General and
administrative expense on a non-GAAP basis
|
$
39,186
|
|
$
45,163
|
|
|
|
|
|
|
Operating expense on a
GAAP basis
|
$
321,289
|
|
$
298,132
|
|
Stock-based
compensation expense
|
(81,822)
|
|
(76,492)
|
|
Amortization of
purchased intangibles
|
(3,552)
|
|
(3,522)
|
|
Litigation
settlement
|
(5,000)
|
|
—
|
|
Operating expense on a
non-GAAP basis
|
$
230,915
|
|
$
218,118
|
|
|
|
|
|
|
Operating income on a
GAAP basis
|
$
155,172
|
|
$
61,530
|
|
Stock-based
compensation expense
|
95,911
|
|
90,719
|
|
Amortization of
purchased intangibles
|
4,785
|
|
4,746
|
|
Litigation
settlement
|
5,000
|
|
—
|
|
Operating income on a
non-GAAP basis
|
$
260,868
|
|
$
156,995
|
|
|
|
|
|
|
Operating margin on a
GAAP basis
|
23.9 %
|
|
11.7 %
|
|
Stock-based
compensation expense
|
14.7
|
|
17.2
|
|
Amortization of
purchased intangibles
|
0.7
|
|
0.9
|
|
Litigation
settlement
|
0.8
|
|
—
|
|
Operating margin on a
non-GAAP basis
|
40.1 %
|
|
29.8 %
|
|
|
|
|
|
|
Net income on a GAAP
basis
|
$
161,664
|
|
$
131,521
|
|
Stock-based
compensation expense
|
95,911
|
|
90,719
|
|
Amortization of
purchased intangibles
|
4,785
|
|
4,746
|
|
Litigation
settlement
|
5,000
|
|
—
|
|
Income tax effect on
non-GAAP adjustments(7)
|
(20,408)
|
|
(79,064)
|
|
Net income on a
non-GAAP basis
|
$
246,952
|
|
$
147,922
|
|
|
|
|
|
|
Diluted net income per
share on a GAAP basis
|
$
0.98
|
|
$
0.81
|
|
Stock-based
compensation expense
|
0.58
|
|
0.56
|
|
Amortization of
purchased intangibles
|
0.03
|
|
0.03
|
|
Litigation
settlement
|
0.03
|
|
—
|
|
Income tax effect on
non-GAAP adjustments(7)
|
(0.12)
|
|
(0.49)
|
|
Diluted net income per
share on a non-GAAP basis
|
$
1.50
|
|
$
0.91
|
|
|
|
|
|
|
|
|
|
|
|
(7)
|
For the three months
ended April 30, 2024 and 2023, management used an estimated annual
effective non-GAAP tax rate of 21.0%.
|
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SOURCE Veeva Systems