Slide 1: Q3'25 Quarterly Results
Q3’25 Quarterly Results December 5, 2024
Slide 2: Safe Harbor and Other Information
Safe Harbor and Other Information This presentation and associated commentary contain forward-looking statements regarding Veeva’s expected future performance and, in particular, includes guidance, provided as of December 5, 2024, about Veeva’s expected future financial results. Estimating guidance
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, non-GAAP operating
Slide 4: Total Revenue – Annual
Total Revenue – Annual $million $3,000 Subscription Revenue Services Revenue 2,722-2,725 $2,500 2,364 450-453 2,155 1,851 462 $2,000 422 1,465 367 $1,500 1,104 286 ~ 2,272 $1,000 208 1,902 1,733 1,484 $500 1,179 896 $- 1 FY 2020 1 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 Guidance 3 Y/Y Growth 2 Subs
Slide 5: Total Revenue – Quarterly
Total Revenue – Quarterly $million $800 Subscription Revenue Services Revenue 676 699 696-699 631 650 617 118 100-103 $600 115 109 116 122 $400 561 581 ~ 596 495 521 534 $200 $- 2 Q3'24 Q4'24 Q1'25 Q2'25 Q3'25 Q4'25 Guidance Y/Y Growth 1 Subscription 12% 13% 29% 19% 17% ~ 14% Services 10% 6% 4% (4%)
Slide 6: Non-GAAP Operating Income – Annual
Non-GAAP Operating Income – Annual $million $1,200 $1,000 $800 $600 ~ 1,120 $400 830 843 759 583 $200 412 $- 2 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 Guidance Non-GAAP 37.3% 39.8% 41.0% 38.5% 35.6% ~ 41% Operating Margin 1 Fiscal Year Ending January 31 A reconciliation of GAAP to non-GAAP m
Slide 7: Non-GAAP Operating Income – Quarterly
Non-GAAP Operating Income – Quarterly $million $350 $300 $250 $200 $150 304 261 280 ~ 275 235 239 $100 $50 $- 2 Q3'24 Q4'24 Q1'25 Q2'25 Q3'25 Q4'25 Guidance Non-GAAP 38.1% 37.9% 40.1% 41.4% 43.5% ~ 39% Operating Margin 1 Fiscal Year Ending January 31 A reconciliation of GAAP to non-GAAP measures is
Slide 8: Normalized Billings – Annual
Normalized Billings – Annual $million $3,000 $2,500 $2,000 $1,500 ~ 2,900 2,595 2,269 $1,000 1,972 $500 $- 1 FY 2022 FY 2023 FY 2024 FY 2025 Guidance Y/Y Growth 2 23% 16% 14% ~ 12% Fiscal Year Ending January 31 Normalized Billings is defined in the Appendix 1 Guidance issued on December 5, 2024. Our
Slide 9: Operating Cash Flow – Annual
Operating Cash Flow – Annual $million $1,200 Non-GAAP Operating Cash Flow (excl ETB) Excess Tax Benefit (ETB) $1,000 911 780 71 $800 764 56 82 $600 551 437 81 ~ 1,060 $400 50 840 708 698 $200 471 387 $- 1 2 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 Guidance Non-GAAP 35% 32% 38% 32% 36% ~ 39% O
Slide 10: FY 2025 Guidance
Guidance Total Revenue $2,722-2,725 million Subscription Revenue ~$2,272 million Commercial Solutions Subscription Revenue ~$1,095 million R&D Solutions Subscription Revenue ~$1,177 million Services Revenue $450-453 million FY 2025 Guidance Non-GAAP Operating Income ~$1,120 million Non-GAAP Fully Di
Slide 11: Q4'25 Guidance
Guidance Total Revenue $696-699 million Subscription Revenue ~$596 million Q4’25 Guidance Services Revenue Non-GAAP Operating Income $100-103 million $275 million Non-GAAP Fully Diluted Net Income per Share ~$1.57 Normalized Billings ~$1,184 million Guidance issued on December 5, 2024. Our Q4’25 gui
Slide 12: Appendix
V Appendix
Slide 13: Definitions
Definitions • Excess Tax Benefit (ETB) – The realized tax benefit related to employee equity compensation, including the vesting of restricted stock units and the exercising and selling of stock options. • Calculated Billings – Revenue for the period plus the change in deferred revenue from the imme
Slide 14: Quarterly Information
Quarterly Information Y/Y Growth Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Q2'25 Q3'25 Q3'24 Q4'24 Q1'25 Q2'25 Q3'25 Revenue Commercial Solutions - Subscription 242.9 239.3 243.4 251.2 261.9 261.3 271.8 278.4 5% 8% 9% 12% 11% R&D Solutions - Subscription 217.3 175.2 227.2 243.7 259.6 272.6 289.5 302.5 20%
Slide 15: Annual Information
Annual Information Y/Y Growth FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 Revenue Commercial Solutions - Subscription 594 745 876 946 996 20% 25% 18% 8% 5% R&D Solutions - Subscription 303 435 608 787 906 51% 44% 40% 30% 15% Total Subscription Revenue ($M) 896 1,1
Slide 16: Reconciliation of GAAP to non-GAAP Measures
Reconciliation of GAAP to non-GAAP Measures Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Q2'25 Q3'25 Gross margin on total revenues on a GAAP basis 70.8 % 68.3 % 71.4 % 72.8 % 72.4 % 73.3 % 74.8 % 75.1 % Stock-based compensation expense 2.7 % 2.7 % 2.7 % 2.4 % 2.4 % 2.2 % 2.2 % 2.1 % Amortization of purchase
Slide 17: Reconciliation of GAAP to non-GAAP Measures
Reconciliation of GAAP to non-GAAP Measures FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 Gross margin on total revenues on a GAAP basis 72.5 % 72.1 % 72.8 % 71.7 % 71.3 % Stock-based compensation expense 1.8 % 2.2 % 2.2 % 2.7 % 2.6 % Amortization of purchased intangibles 0.4 % 0.4 % 0.2 % 0.2 % 0.2 % Gro
Slide 18: Customer Contracting Change
Customer Contracting Change Standardizing Termination for Convenience (TFC) Rights Historically As of February 1, 2023 • Most customer orders had a • More orders are multi-year one-year term, thus TFC rights in duration were not meaningful • TFC rights standardized for • TFC rights differed customer
Slide 19: Impact of TFC on Subscription Revenue Timing
Impact of TFC on Subscription Revenue Timing EXAMPLE 1: Multi-Year Ramping Deal without TFC Invoice/Billings Subscription Revenue 6 6 6 Revenue is recognized ratably over the duration of 4 4 4 4 the committed term 2 Year 1 Year 2 Year 3 Renewal EXAMPLE 2: Multi-Year Ramping Deal with TFC Invoice/Bil
Slide 20: Key Takeaways - TFC Change
Key Takeaways - TFC Change • Consistent TFC treatment of customers with multi-year ramping deals • With continued execution, we do not expect an impact to: − Cash flows − Billings − Expected total revenue on multi-year ramping deals Copyright © Veeva Systems 2024 20
Slide 21: Results and Guidance Normalized for Estimated TFC Impacts
Results and Guidance Normalized for Estimated TFC Impacts Reported Q4'25 FY 2025 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Q2'25 Q3'25 Guidance FY 2024 Guidance Y/Y Growth Subscription Revenue Growth 3% 10% 12% 13% 29% 19% 17% ~14% 10% ~19% Services Revenue Growth 9% 13% 10% 6% 4% (4%) (3%) ~(6%) 9% (2%) Total