Veeva Systems Inc. · NYSE:VEEV
Veeva Systems — Q1 FY2022 Earnings Presentation
24 slides from Veeva Systems's earnings presentation, May 27, 2021
Slide 1: Q1'22 Quarterly Results
Q1’22 Quarterly Results May 27, 2021
Slide 2: Safe Harbor and Other Information
Safe Harbor and Other Information This presentation and associated commentary contain forward-looking statements, including statements regarding Veeva’s future performance, financial outlook, and guidance and the assumptions underlying those statements, market growth, the benefits from the use of Ve
Slide 3: Statement Regarding Use of Non-GAAP Financial Measures
Statement Regarding Use of Non-GAAP Financial Measures We provide the following non-GAAP measures, which we define as financial information that has not been prepared in accordance with generally accepted accounting principles in the United States, or GAAP: Non-GAAP gross margin on subscription serv
Slide 4: Total Revenue – Annual
Total Revenue – Annual $million $2,000 Subscription Revenue Services Revenue 1,815-1,825 $1,800 $1,600 1,465 350-360 $1,400 286 $1,200 1,104 $1,000 862 208 $800 691 168 ~1,465 $600 131 1,179 $400 896 694 559 $200 $0 FY 2018 FY 2019 FY 2020 1 FY 2021 1 FY 2022 Guidance 2 Y/Y Growth Total 25% 25% 28%1
Slide 5: Total Revenue – Quarterly
Total Revenue – Quarterly $million $500 Subscription Revenue Services Revenue 450-452 434 $450 397 $400 378 89-91 354 92 337 74 $350 75 $300 67 70 $250 $200 341 ~361 $150 303 323 270 284 $100 $50 $0 1 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Guidance Y/Y Growth Total 38% 33% 34% 27% 29% ~27%1 % Mix Comme
Slide 6: Subscription Revenue – Annual
Subscription Revenue – Annual $million $1,600 Vault Commercial Cloud ~1,465 $1,400 1,180 $1,200 ~695 $1,000 896 599 $800 694 559 469 $600 395 $400 356 ~770 580 $200 428 299 203 $0 1 FY 2018 FY 2019 FY 2020 1 FY 2021 FY 2022 Guidance2 Y/Y Growth Total Subscription 27% 24% 29%1 32%1 ~24%2 Commercial C
Slide 7: Subscription Revenue – Quarterly
$million Subscription Revenue – Quarterly Vault Commercial Cloud 341 $350 323 303 $300 284 271 $250 168 159 152 $200 145 143 ~361 $150 $100 163 173 139 151 128 $50 $0 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Guidance 1 Y/Y Growth Total Subscription 36% 30% 34% 27% 26% ~27%1 Commercial Cloud 35% 29% 32% 1
Slide 8: Non-GAAP Gross Margin – Annual
Non-GAAP Gross Margin – Annual Subscription Gross Margin Services Gross Margin Total Gross Margin 73.3% 74.7% 74.7% 71.4% 83.8% 85.5% 85.2% 81.2% 29.5% 29.8% 28.1% 31.3% 1 FY 2018 FY 2019 FY 2020 FY 2021 Fiscal Year Ending January 31 A reconciliation of GAAP to non-GAAP measures is set forth in the
Slide 9: Non-GAAP Gross Margin – Quarterly
Non-GAAP Gross Margin – Quarterly Subscription Gross Margin Services Gross Margin Total Gross Margin 75.4% 75.4% 75.4% 74.2% 73.8% 85.0% 85.6% 85.6% 84.5% 85.5% 38.0% 30.5% 34.0% 33.6% 27.3% Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Fiscal Year Ending January 31 A reconciliation of GAAP to non-GAAP measures is
Slide 10: Non-GAAP Operating Income – Annual
Non-GAAP Operating Income – Annual $million $800 $700 $600 $500 $400 710 $300 583 $200 412 307 $100 220 $0 FY 2018 FY 2019 FY 2020 1 FY 2021 FY 2022 Guidance 2 Non-GAAP 31.9% 35.6% 37.3%1 39.8% ~39%2 Operating Margin Fiscal Year Ending January 31 A reconciliation of GAAP to non-GAAP measures is set
Slide 11: Non-GAAP Operating Income – Quarterly
Non-GAAP Operating Income – Quarterly $million $200 $180 $160 $140 $120 $100 181 175-177 $80 156 144 153 $60 130 $40 $20 $0 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Guidance1 Non-GAAP 38.5% 40.8% 41.2% 38.6% 41.8% ~39%1 Operating Margin Fiscal Year Ending January 31 A reconciliation of GAAP to non-GAAP m
Slide 12: Operating Cash Flow – Annual
Operating Cash Flow – Annual $million Operating Cash Flow excl ETB Excess Tax Benefit (ETB) $800 $700 $600 551 $500 81 437 $400 50 311 ~700 $300 46 233 471 $200 46 387 265 $100 187 $0 1 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Non-GAAP Guidance OCF Margin 27% 31% 35% 32% ~38%1 (excl ETB) Fiscal Year
Slide 13: Operating Cash Flow – Quarterly
Operating Cash Flow – Quarterly $million Operating Cash Flow excl ETB Excess Tax Benefit (ETB) $500 478 17 $450 $400 $350 $300 282 20 $250 461 $200 $150 100 262 105 95 $100 17 22 68 62 17 9 39 22 $50 83 83 11 78 53 47 28 $0 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Fiscal Year Ending January 3
Slide 14: Calculated Billings – Annual
Calculated Billings – Annual $million $2,000 $1,800 $1,600 $1,400 $1,200 $1,000 ~1,930 $800 1,599 $600 1,193 947 $400 744 $200 $0 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Guidance1 Y/Y Growth 24% 27% 26% 34% ~21%1 Fiscal Year Ending January 31 Calculated billings is defined in the Appendix 1 Guidance
Slide 15: Calculated Billings – Quarterly
Calculated Billings – Quarterly $million $800 $700 $600 $500 $400 688 $300 519 $200 421 ~395 334 305 271 $100 234 193 $0 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Guidance 1 Fiscal Year Ending January 31 Calculated billings is defined in the Appendix. There are numerous factors that make
Slide 16: Cash, Cash Equivalents, and ST Investments – Quarterly
Cash, Cash Equivalents, and ST Investments – Quarterly $million $2,500 $2,000 $1,500 2,150 $1,000 1,590 1,664 1,495 1,381 $500 $0 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Fiscal Year Ending January 31 Copyright © Veeva Systems 2021 16
Slide 17: Employee Headcount – Quarterly
Employee Headcount – Quarterly 5,000 4,500 4,000 3,500 3,000 4,506 4,690 4,304 2,500 4,024 3,667 2,000 1,500 1,000 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Quarterly Net 166 357 280 202 184 Additions Y/Y Growth 39% 42% 43% 29% 28% Fiscal Year Ending January 31 Copyright © Veeva Systems 2021 17
Slide 18: FY 2022 Guidance
Guidance Total Revenue $1,815-1,825 million Subscription Revenue ~$1,465 million Commercial Cloud Subscription Revenue ~$695 million Vault Subscription Revenue ~$770 million Services Revenue $350-360 million FY 2022 Guidance Non-GAAP Operating Income ~$710 million Non-GAAP Fully Diluted Net Income p
Slide 19: Q2'22 Guidance
Guidance Total Revenue $450-452 million Subscription Revenue ~$361 million Q2’22 Guidance Services Revenue Non-GAAP Operating Income $89-91 million $175-177 million Non-GAAP Fully Diluted Net Income per Share $0.85-0.86 Calculated Billings ~$395 million Guidance issued on May 27, 2021. We are not ab
Slide 20: Appendix
V Appendix
Slide 21: Appendix
Appendix • Excess Tax Benefit (ETB) – The realized tax benefit related to employee equity compensation, including the vesting of restricted stock units and the exercising and selling of stock options. • Calculated Billings – Revenue for the period plus the change in deferred revenue from the immedia
Slide 22: Reconciliation of GAAP to non-GAAP Measures
Reconciliation of GAAP to non-GAAP Measures FY'18 FY'19 FY'20 FY'21 Gross margin on total revenues on a GAAP basis 69.4 % 71.6 % 72.5 % 72.1 % Stock-based compensation expense 1.4 % 1.4 % 1.8 % 2.2 % Amortization of purchased intangibles 0.6 % 0.3 % 0.4 % 0.4 % Deferred compensation associated with
Slide 23: Reconciliation of GAAP to non-GAAP Measures
Reconciliation of GAAP to non-GAAP Measures FY'18 FY'19 FY'20 FY'21 Operating income on a GAAP basis $ 157.9 $ 222.9 $ 286.2 $ 377.8 Stock-based compensation expense 54.0 76.4 115.9 185.0 Amortization of purchased intangibles 7.8 7.0 10.1 20.0 Deferred compensation associated with Zinc Ahead acquisi
Slide 24: Reconciliation of GAAP to non-GAAP Measures
Reconciliation of GAAP to non-GAAP Measures Q1 FY'21 Q2 FY'21 Q3 FY'21 Q4 FY'21 Q1 FY'22 Gross margin on total revenues on a GAAP basis 71.9 % 72.5 % 72.7 % 71.3 % 73.2 % Stock-based compensation expense 1.8 % 2.5 % 2.3 % 2.3 % 1.9 % Amortization of purchased intangibles 0.5 % 0.4 % 0.3 % 0.3 % 0.3