Veeva shares dive 21% today after strong earnings report

Tom Paine

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Despite beating earnings estimates for its Q4 FY 2015, Veeva Systems (NYSE: VEEV), based in California, but having considerable operations in Radnor, plunged 21% in trading today.

For the Fiscal Year 2015 ending January 31, the SaaS life sciences firm reported yesterday afternoon that its earnings rose 68% to 37 cents a share, with revenue up 49% to $313 million.

Guidance for FY 2016, however, just meet expectations, which may have spooked some investors, who might have been expecting more. Revenue was guided at $390 million-$395 million, with EPS of 43 to 45 cents.

Veeva also announced it had acquired Qforma CrowdLink, a key opinion leader (KOL) information source for the pharma industry. Terms weren't disclosed. Although Qforma had an ownership structure I haven't quite figured out yet, with connections in Europe, its headquarters appear to be located in Morris Plains, New Jersey.

CEO Peter Gassner said that Veeva's more recently introduced offerings, content management system Vault and database service Network, are growing rapidly and are now contributing about 20% of revenue, up from 10% a year ago. Analysts have been watching to see how successful Veeva would be in growing beyond its core CRM business.

High-growth companies such as Veeva are often subject to rapid price swings due to slight variations in perceived outlook.