Slide 1: ASC 606 Investor Presentation
ASC 606 Investor Presentation
Slide 2: Primary impacts from 606 transition
Primary impacts from 606 transition FY17 & FY18 will be restated under the full retrospective method • Multi-year contracts with ramping fees: In multi-year arrangements with ramping fees (e.g., Year 1 fees of $1M, Year 2 fees of $2M, and Year 3 fees of $3M), 606 dictates that revenue be recognized
Slide 3: Total revenue ($M)
Total revenue ($M) All 606 impacts are in subscription revenue; services revenue unchanged 686 691 544 551 FY2017 FY2018 605 606 Copyright © Veeva Systems 2018 3
Slide 4: GAAP operating expenses & margin
GAAP operating expenses & margin Operating expenses ($M) Operating margin (%) 323 321 23% 22% 22% 20% 262 256 FY2017 FY2018 FY2017 FY2018 605 606 605 606 Copyright © Veeva Systems 2018 4
Slide 5: Non-GAAP operating expenses & margin
Non-GAAP operating expenses & margin Non-GAAP operating Non-GAAP operating expenses ($M) margin (%) 277 275 32% 31% 31% 29% 223 217 FY2017 FY2018 FY2017 FY2018 605 606 605 606 Note: GAAP to Non-GAAP reconciliation tables available in the Appendix. Copyright © Veeva Systems 2018 5
Slide 6: Quarterly detail – GAAP
Quarterly detail – GAAP ($M) FY'17 Q1'18 Q2'18 Q3'18 Q4'18 FY'18 ASC 605 reported Total revenue $ 544 $ 158 $ 167 $ 176 $ 185 $ 686 GAAP cost of revenue 174 49 51 53 59 212 GAAP opex 262 72 79 81 91 323 GAAP operating profit $ 108 $ 37 $ 37 $ 42 $ 35 $ 151 % operating margin 20% 24% 22% 24% 19% 22%
Slide 7: Quarterly detail – non-GAAP
Quarterly detail – non-GAAP ($M) FY'17 Q1'18 Q2'18 Q3'18 Q4'18 FY'18 ASC 605 reported Total revenue $ 544 $ 158 $ 167 $ 176 $ 185 $ 686 Non-GAAP cost of revenue 162 45 47 49 55 197 Non-GAAP opex 223 62 68 69 78 277 Non-GAAP operating profit $ 159 $ 51 $ 52 $ 58 $ 52 $ 212 % operating margin 29% 32%
Slide 8: Selected balance sheet items
Selected balance sheet items FY17 FY18 ASC 605 ASC 606 ASC 605 ASC 606 ($M) reported restated reported restated Assets Unbilled accounts receivable* $ 6 $ 9 $ 9 $ 13 Deferred costs, net, noncurrent — 28 — 30 Deferred income taxes, non-current 16 6 6 — Liabilities Deferred revenue $ 214 $ 209 $ 275 $
Slide 9: Appendix
V Appendix
Slide 10: Quarterly detail – GAAP to non-GAAP reconciliation
Quarterly detail – GAAP to non-GAAP reconciliation Three Months Ended Three Months Ended Three Months Ended Three Months Ended April 30, 2017 July 31, 2017 October 31, 2017 January 31, 2018 ASC606 ASC606 ASC606 ASC606 ($M) As reported restated As reported restated As reported restated As reported re
Slide 11: Fiscal year detail – GAAP to non-GAAP reconciliation
Fiscal year detail – GAAP to non-GAAP reconciliation Fiscal Year Ended Fiscal Year Ended January 31, 2017 January 31, 2018 ASC606 ASC606 ($M) As reported restated As reported restated GAAP cost of revenue $ 174 $ 174 $ 212 $ 212 Stock-based compensation expense (7) (7) (10) (10) Amortization of purc