Veeva Systems Inc. · NYSE:VEEV

Veeva Systems — Investor Day (October 2020)

75 slides from Veeva Systems's investor day presentation, Oct 29, 2020

Slide 1: Analyst & Investor Day
Analyst & Investor Day October 29, 2020
Slide 2: Safe Harbor
Safe Harbor Forward-looking Statements This presentation and associated commentary made by our management contain forward-looking statements, including statements regarding Veeva’s future financial outlook, guidance, and financial performance and the assumptions underlying those statements, market g
Slide 3: Peter Gassner, CEO & Co-Founder
Peter Gassner CEO & Co-Founder
Slide 4: Vision and Values
Vision Building the Industry Cloud for Life Sciences Values Do the Right Thing Customer Success Employee Success Speed
Slide 6: Year of Innovation
Year of Innovation
Slide 12: Strategic Partner to the Industry
Strategic Partner to the Industry
Slide 14: Helping Customers Define and Execute their Strategy
Helping Customers Define and Execute their Strategy BUSINESS CONSULTING Powered by Data Digital Launch Digital Field Force Commercial Content Pulse Data Data Cloud Copyright © Veeva Systems 2020
Slide 16: Veeva as a Public Benefit Corporation
Veeva as a Public Benefit Corporation Aligns to our Values Industry Partner Talent Attraction Better long-term financial results Copyright © Veeva Systems 2020
Slide 19: Progress in CPG, Cosmetics, Chemicals
Progress in CPG, Cosmetics, Chemicals 60+ 150+ $30M+ total customers employees revenue in FY21E Enterprise focus Quality & Cosmetics impacted regulatory by COVID-19 Copyright © Veeva Systems 2020
Slide 20: Jim Reilly, VP, Vault R&D
Jim Reilly VP, Vault R&D
Slide 24: Early Days for Development Cloud
Early Days for Development Cloud Deep pipeline of products in the early stages of market adoption eTMF QualityDocs Submissions Registrations Subs Archive CTMS Study Startup CDMS QMS Payments Publishing eConsent Training Site Connect Safety Market Share Innovators Early Adopters Early Majority Middle
Slide 25: Vault CDMS Progress
Vault CDMS Progress EDC Coder CDB • Delivering real innovation • 100+ trials in process for Data Capture and Clinical Cleaning and Verification Coding Formatting 40+ customers, 2 Top 20s Copyright © Veeva Systems 2020
Slide 26: Statistical programming environment for clinical data management
Statistical programming environment for clinical data management Efficient Programming Coming Late 2021 Highly Configurable Built for Programmers
Slide 27: Solving The Hard Problems, Delivering a Complete Solution
Solving The Hard Problems Other Data Sources Cleaning Labs, eCOA, Collecting Formatting Analysis Submission ePRO, etc. Delivering a Complete Solution Copyright © Veeva Systems 2020
Slide 29: Connecting the Industry
Connecting the Industry
Slide 36: Paul Shawah, SVP, Commercial Cloud
Paul Shawah SVP, Commercial Cloud
Slide 37: COVID-19 Impacting Healthcare
COVID-19 Impacting Healthcare February September Patients Using Telemedicine <1% 10% Doctors Using Telemedicine 3% 42% Source: Crossix Patient Data Copyright © Veeva Systems 2020
Slide 38: COVID-19 Impacting Life Sciences
COVID-19 Impacting Life Sciences Shifting Stressing Existing Evolving Go-to-Market Promotional Mix Processes Models Accelerating Move to Digital Copyright © Veeva Systems 2020
Slide 39: Veeva Moving the Industry to Digital
Veeva Moving the Industry to Digital +600% +891% Approved Emails Sent Engage Meetings Started March April May June July Aug. Sept. March April May June July Aug. Sept. Source: Veeva Pulse Data Copyright © Veeva Systems 2020
Slide 41: The Reality of Digital
The Reality of Digital Customer Planning Insights and Analytics Field Interaction Consent Digital Preferences Targets Compliance Call Plan Digital Interaction Field Multi-format Content Interaction Capture Next Best Action Copyright © Veeva Systems 2020
Slide 44: Innovating in Digital
o-O —OO, Innovating in Digital
Slide 46: Doctor's View of Pharma
Doctor’s View of Pharma Pharma 12 Pharma 1 Pharma 8 Pharma 9 Pharma 5 Pharma 13 Pharma 2 Pharma 10 Pharma 14 Pharma 6 HCP Pharma 3 Pharma 7 Pharma 11 Pharma 15 Pharma 4 Copyright © Veeva Systems 2020
Slide 48: Connect, Search for, Content and Service
Connect • Ping a rep • Secure messaging • Schedule a meeting Search for • Reps and MSLs • Brands • Companies Content and Service • Digital leave-behinds • Patient resources • Orders and samples Copyright © Veeva Systems 2020
Slide 49: Demo
DEMO
Slide 51: Brent Bowman, CFO
Brent Bowman CFO
Slide 53: Consistent History of Strong Growth and Profitability
Consistent History of Strong Growth and Profitability $1.42B Revenue Non-GAAP Operating Income1 $1.1B $862M $691M $551M $545M $409M $412M $313M $307M $219M $173M $86M $109M FY15 FY16 FY172 FY182 FY19 FY20 FY21E3 Fiscal Year Ending January 31 ¹ A reconciliation of GAAP to non-GAAP measures is set for
Slide 54: Exceeded Long-Term Targets
Exceeded Long-Term Targets Five-Year Targets Set in 2015 FY 2021 FY 2020 Target Actual Total Revenue $1B $1.1B Revenue Run Rate Reported Revenue Non-GAAP Op Margin 28-32% 37% Note: Veeva’s original CY2020 financial targets of $1B total revenue run-rate and 28-32% non-GAAP operating margin were set o
Slide 59: Veeva's Growing Market Opportunity (Today)
Veeva’s Growing Market Opportunity TAM in Today $2B+ Data Cloud $1B Patient Data and Analytics Commercial Cloud $3B Original Commercial Cloud $12B+ $1B+ Vault Outside Life Sciences Vault $5B Vault for Life Sciences c * Vault Outside of Life Sciences includes Vault QualityOne, Vault RegulatoryOne, an
Slide 60: Lots of White Space Remaining
Lots of White Space Remaining $6B Commercial Cloud $6B Vault $1.4B z FY21E Revenue1 Fiscal Year Ending January 31 1 Based on guidance issued 8/27/2020 Copyright © Veeva Systems 2020
Slide 61: Innovation Engine Fuels Long-term Growth
Innovation Engine Fuels Long-term Growth Deep pipeline of products on the path to market leadership Approved Email CRM CLM Medcomms Promomats eTMF Align Crossix QualityDocs CTMS Registrations Submissions Engage Study Startup CDMS Events Subs Archive Claims Payments Network Data Cloud Publishing Open
Slide 62: Vault Adoption Continues
Vault Adoption Continues Average Vault products per Vault customer Total Number 100+ 200+ 300+ 600+ 900+ 1,300+ 1,700+ 1,900+ of Vaults 2.52 2.41 2.30 2.10 1.82 1.53 1.52 1.48 FY14 FY15 FY16 FY17 FY18 FY19 FY20 2Q21 69 FY14 135 FY15 219 FY16 334 FY17 449 FY18 574 FY19 715 FY20 769 2Q21 Customers Cus
Slide 63: Vault Customers Expand Over Time
Vault Customers Expand Over Time Annualized Vault subscription Average Vault revenue by annual cohort products per customer 1.4x 1.9 2.2x 2.4 4.2x 2.7 3.8x 3.1 5.3x 3.5 9.5x 3.1 26.8x 4.4 First Year Q2 '21 2013/2014 2015 2016 2017 2018 2019 2020 Copyright © Veeva Systems 2020
Slide 64: Customers Adopting More Commercial Cloud
Customers Adopting More Commercial Cloud Average Commercial Cloud products per customer 3.55 3.72 3.26 2.91 2.84 2.47 2.22 1.90 FY14 FY14 FY15 FY16 FY17 2Q18 FY14 FY15 FY16 FY17 FY18 FY19 FY20 2Q21 170 FY14 210 FY15 234 FY16 270 FY17 311 FY18 335 FY19 390 FY20 407 2Q21 Customers Customers Customers
Slide 65: # of Products - Commercial Cloud Customers
# of Products - Commercial Cloud Customers 450 400 350 300 197 250 217 215 200 210 150 180 110 180 100 92 83 73 50 56 34 2 6 14 28 48 79 0 Q2 FY16 Q2 FY17 Q2 FY18 Q2 FY19 Q2 FY20 Q2 FY21 6 or More Products 4-5 Products 3 Products or Fewer or Less Products Note: Q2 FY21 numbers exclude Crossix custom
Slide 66: Durable Operating Model
Durable Operating Model FY172 FY182 FY19 FY20 FY21E3 Non-GAAP 71% 71% 73% 75% 74-75% Gross Margin1 S&M % of Revenue 17% 16% 15% 14% ~13% (Non-GAAP) 1 R&D % of Revenue 15% 17% 16% 16% ~16% (Non-GAAP) 1 G&A % of Revenue 7% 7% 7% 8% 7-8% (Non-GAAP) 1 Non-GAAP 31% 32% 36% 37% ~38%3 Operating Margin1 Fis
Slide 67: Operating Model Enables Investment For Durable Growth
Operating Model Enables Investment For Durable Growth CY2020E1 Margin Drivers CY2025 Targets GROSS MARGIN Subs product mix and growth Data supplier investments 38% Additional Services OP MARGIN 35%+ Non-GAAP Op Margin Non-GAAP Op Margin Leverage in R&D S&M and G&A grow for scale Investment in new pr
Slide 70: Highlights
Highlights Consistent Execution Year of Innovation Strategic Partner to the Industry Early Days of Industry Cloud Well Positioned for 2025 and Beyond Copyright © Veeva Systems 2020
Slide 71: Appendix
Appendix
Slide 72: Reconciliation of GAAP to Non-GAAP Measures
Reconciliation of GAAP to Non-GAAP Measures in millions FY'13 FY'14 FY'15 FY'16 FY'17 FY'18 FY'19 FY'20 Operating income on a GAAP basis $ 30 $ 39 $ 70 $ 79 $ 121 $ 158 $ 223 $ 286 Stock-based compensation expense — 7 14 24 41 54 76 116 Amortization of purchased intangibles — 1 2 4 8 8 7 10 Deferred
Slide 73: Reconciliation of GAAP to Non-GAAP Measures
Reconciliation of GAAP to Non-GAAP Measures Q2 FY'21 Gross margin on total revenues on a GAAP basis 72.5% Stock-based compensation expense 2.5 Amortization of purchased intangibles 0.4 Gross margin on total revenues on a non-GAAP basis 75.4% in millions Q2 FY'21 Operating income on a GAAP basis $ 90
Slide 74: Reconciliation of GAAP to Non-GAAP Measures
Reconciliation of GAAP to Non-GAAP Measures FY'19 FY'20 Gross margin on total revenues on a GAAP basis 71.6% 72.5% Stock-based compensation expense 1.4 1.8 Amortization of purchased intangibles 0.3 0.4 Gross margin on total revenues on a non-GAAP basis 73.3% 74.7% FY'19 % of Revenue FY'20 % of Reven
Slide 75: Veeva Product Area Definitions
Veeva Product Area Definitions Veeva CRM Suite Vault Clinical Suite Vault RIM Suite • Veeva CRM • Vault CDMS • Vault Registrations • Veeva CLM • Vault CTMS • Vault Submissions • Veeva CRM Approved Email • Vault eTMF • Vault Submissions Archive • Veeva CRM Events Management • Vault Payments • Vault P

Veeva Systems — Investor Day (October 2020) on 6ix

Veeva Systems — Investor Day (October 2020)

Slide 1: Analyst & Investor Day

Slide 2: Safe Harbor

Slide 3: Peter Gassner, CEO & Co-Founder

Slide 4: Vision and Values

Slide 5: Highlights

Slide 6: Year of Innovation

Slide 7: First 'Consumer' Applications

Slide 8: Clinical Vision

Slide 9: Accelerating Clinical Research

Slide 10: Innovating in Data

Slide 11: Work Anywhere

Slide 12: Strategic Partner to the Industry

Slide 13: Veeva: The Industry Cloud for Life Sciences

Slide 14: Helping Customers Define and Execute their Strategy

Slide 15: Strategic Partner

Slide 16: Veeva as a Public Benefit Corporation

Slide 17: Veeva 2025: $3 Billion, Room to Grow

Slide 18: Business Update

Slide 19: Progress in CPG, Cosmetics, Chemicals

Slide 20: Jim Reilly, VP, Vault R&D

Slide 21: Precision Medicine & Clinical Trials

Slide 22: Clinical Data Management

Slide 23: Bold Vision, Right Product Strategy, Early Days of Big Mission

Slide 24: Early Days for Development Cloud

Slide 25: Vault CDMS Progress

Slide 26: Statistical programming environment for clinical data management

Slide 27: Solving The Hard Problems, Delivering a Complete Solution

Slide 28: Vault Safety Progress

Slide 29: Connecting the Industry

Slide 30: Patients, Sites, Sponsors

Slide 31: Sites Sponsors

Slide 32: Sites Sponsors

Slide 33: Patients, Sites, Sponsors

Slide 34: Patients

Slide 35: Continued Innovation, Delivering Value, Significant Runway for Growth

Slide 36: Paul Shawah, SVP, Commercial Cloud

Slide 37: COVID-19 Impacting Healthcare

Slide 38: COVID-19 Impacting Life Sciences

Slide 39: Veeva Moving the Industry to Digital

Slide 40: The Perception of Digital

Slide 41: The Reality of Digital

Slide 42: Veeva CRM is the Foundation for Digital

Slide 43: Veeva Commercial Cloud

Slide 44: Innovating in Digital

Slide 45: Pharma View of a Doctor

Slide 46: Doctor's View of Pharma

Slide 47: MyVeeva for Doctors

Slide 48: Connect, Search for, Content and Service

Slide 49: Demo

Slide 50: Long Runway for Steady Growth

Slide 51: Brent Bowman, CFO

Slide 52: Highlights

Slide 53: Consistent History of Strong Growth and Profitability

Slide 54: Exceeded Long-Term Targets

Slide 55: Confident in 2025 Targets

Slide 56: Growth Drivers

Slide 57: Veeva's Growing Market Opportunity (2007)

Slide 58: Veeva's Growing Market Opportunity (2013)

Slide 59: Veeva's Growing Market Opportunity (Today)

Slide 60: Lots of White Space Remaining

Slide 61: Innovation Engine Fuels Long-term Growth

Slide 62: Vault Adoption Continues

Slide 63: Vault Customers Expand Over Time

Slide 64: Customers Adopting More Commercial Cloud

Slide 65: # of Products - Commercial Cloud Customers

Slide 66: Durable Operating Model

Slide 67: Operating Model Enables Investment For Durable Growth

Slide 68: Key Takeaways

Slide 69: Fireside Chat: Tom Harvey

Slide 70: Highlights

Slide 71: Appendix

Slide 72: Reconciliation of GAAP to Non-GAAP Measures

Slide 73: Reconciliation of GAAP to Non-GAAP Measures

Slide 74: Reconciliation of GAAP to Non-GAAP Measures

Slide 75: Veeva Product Area Definitions