Veeva Announces Fiscal 2019 Third Quarter Results: Total Revenues of $224.7M, up 27% Year-over-year

Veeva Announces Fiscal 2019 Third Quarter Results
Total Revenues of $224.7M, up 27% Year-over-year

Subscription Services Revenues of $178.2M, up 25% Year-over-year

November 28, 2018 04:05 PM Eastern Standard Time
PLEASANTON, Calif.--(BUSINESS WIRE)--Veeva Systems Inc. (NYSE: VEEV), a leading provider of industry cloud solutions for the global life sciences industry, today announced results for its fiscal third quarter ended October 31, 2018. All results, including prior periods, and guidance reflect the new revenue recognition standard ASC 606.

“Our focus on innovation and customer success coupled with our consistent execution sets us up for a great finish to the year and establishes a strong foundation for next year and beyond.”
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“We executed well across all areas of the business, expanding our leadership with Veeva Commercial Cloud and Veeva Vault,” said CEO Peter Gassner. “Our focus on innovation and customer success coupled with our consistent execution sets us up for a great finish to the year and establishes a strong foundation for next year and beyond.”

Fiscal 2019 Third Quarter Results:

Revenues: Total revenues for the third quarter were $224.7 million, up from $177.0 million one year ago, an increase of 27% year-over-year. Subscription services revenues for the third quarter were $178.2 million, up from $142.8 million one year ago, an increase of 25% year-over-year.
Operating Income and Non-GAAP Operating Income(1): Third quarter operating income was $63.1 million, compared to $42.5 million one year ago, an increase of 48% year-over-year. Non-GAAP operating income for the third quarter was $84.4 million, compared to $58.4 million one year ago, an increase of 45% year-over-year.
Net Income and Non-GAAP Net Income(1): Third quarter net income was $64.1 million, compared to $34.9 million one year ago, an increase of 83% year-over-year. Non-GAAP net income for the third quarter was $70.3 million, compared to $38.9 million one year ago, an increase of 81% year-over-year.
Net Income per Share and Non-GAAP Net Income per Share(1): For the third quarter, fully diluted net income per share was $0.41, compared to $0.23 one year ago, while non-GAAP fully diluted net income per share was $0.45, compared to $0.25 one year ago.
“We are pleased to report our results came in well above guidance for the quarter, as we continued to deliver a unique combination of growth and profitability,” said CFO Tim Cabral. “Looking to next year, we expect to hit $1 billion in total revenue, significantly ahead of our original plan.”

Recent Highlights:

Strategic Wins for Vault Clinical — The company had its first Veeva Vault CTMS win with a top 20 pharmaceutical company, who will deploy globally. Another leading CRO chose Veeva Vault eTMF, the third top 7 CRO to standardize on the product.
Veeva Extends Leadership in CRM Across All Segments — A top 10 pharmaceutical company added more than 5,000 Veeva CRM users across multiple regions as part of its global expansion. Additionally, a major consumer health company selected multichannel Veeva CRM for 40 markets. Momentum also continued in SMB, with Veeva adding 31 new customers since the start of the fiscal year.
Top 50 Pharma Goes Global with Veeva OpenData — Veeva signed a top 50 pharmaceutical company to implement Veeva OpenData globally. In addition, a top 20 selected Veeva OpenData for the U.S.
Continued Enterprise Progress in Vault RIM — In the quarter, a top 20 pharmaceutical company chose Vault RIM for its global regulatory operations, the sixth top 20 to select Veeva regulatory solutions.
Financial Outlook:

Veeva is providing guidance for its fiscal fourth quarter ending January 31, 2019 as follows:

Total revenues between $226 and $227 million.
Non-GAAP operating income between $77 and $78 million(2).
Non-GAAP fully diluted net income per share of $0.40(2).
Veeva is providing guidance for its fiscal year ending January 31, 2019 as follows:

Total revenues between $855.8 and $856.8 million.
Non-GAAP operating income between $298.6 and $299.6 million(2).
Non-GAAP fully diluted net income per share of $1.58(2).