Veeva Systems Inc. · NYSE:VEEV

Veeva Systems — Investor Day (September 2016)

140 slides from Veeva Systems's investor day presentation, Sep 29, 2016

Slide 2: Safe Harbor
Safe Harbor Forward-looking Statements This presentation contains forward-looking statements, including statements regarding Veeva's future financial outlook and financial performance, market growth, the release dates for and benefits from the use of Veeva's solutions, our partnership plans, our str
Slide 3: Agenda
Agenda 1 LONG-TERM GROWTH PETER GASSNER Founder & CEO 2 INDUSTRY CLOUD MATT WALLACH Co-founder & President 3 CUSTOMER SUCCESS JAZZ TOBACCOWALLA VP & CIO, Regeneron BREAK 4 COMMERCIAL CLOUD PAUL SHAWAH VP, Veeva Commercial Cloud 5 VAULT JEN GOLDSMITH SVP, Veeva Vault 6 FINANCIAL UPDATE TIM CABRAL CFO
Slide 5: Building the Industry Cloud for Life Sciences
Building the Industry Cloud for Life Sciences Customer Success Employee Success Speed © Copyright 2016 Veeva Systems Inc., all rights reserved veeva.com | 5
Slide 6: Key Highlights
Key Highlights  Well positioned for long-term growth  Large commercial cloud opportunity  Vault as second growth engine  Strategic partner to life sciences  Veeva Way  Strategic markets, product excellence, customer success  Growth and profitability © Copyright 2016 Veeva Systems Inc., all ri
Slide 7: Seven Years of Growth and Profitability
Seven Years of Growth and Profitability $525-528M Revenue Non-GAAP Operating Income1 $409M $313M $210M $130M $138-140M $109M $86M $61M $47M $29M $30M $5M $7M FY’11 FY’12 FY’13 FY’14 FY’15 FY’16 FY’17² Fiscal Year Ending January 31 ¹A reconciliation of non-GAAP to GAAP measures is set forth in Append
Slide 8: Progress Since IPO
Progress Since IPO  Continued strong customer success  Consistent execution against financial targets  Rapid uptake of Vault  Expanding TAM through rapid innovation  Successful Zinc acquisition © Copyright 2016 Veeva Systems Inc., all rights reserved veeva.com | 8
Slide 11: Veeva Way: Product Excellence
Veeva Way: Product Excellence  Pick the right markets  Strategic areas  Aim for leadership  Build the best cloud products  Assemble the ‘A’ team  Leverage platforms  Run to complexity  Unified suites  Be persistent  Stay close to customers  Product leadership takes 5 to 10 years © Copyrig
Slide 12: Veeva Way: Field Model
Veeva Way: Field Model  Reference selling  Successful early adopters  Spread the word of success  Sales structure  Selling with a long-term view  Don’t over cover  Specialized sales teams where needed  Services, it’s about the people  Deep domain experts  Strategy  Implementation  Manage
Slide 13: Veeva Way: Financial Model
Veeva Way: Financial Model  Growth and profit  Efficient sales and marketing  Disciplined product planning  Profitable professional services  Taking the long view  Bias toward organic growth  Grow through the addition of great people  Spend it like it is your own © Copyright 2016 Veeva Syste
Slide 18: Vault Tracking Ahead vs. Early Days of CRM
Vault Tracking Ahead vs. Early Days of CRM Total revenue through first ~5 years of sales by product line Vault CRM Year 1 Year 2 Year 3 Year 4 Year 5 Quarters after product line launch First quarter of sales was Q2 FY’08 for CRM and Q2 FY’12 for Vault © Copyright 2016 Veeva Systems Inc., all rights
Slide 19: Investing in innovation
Investing in innovation Veeva’s non-GAAP R&D expense ($M) $20.7 $19.7 $18.0 $15.6 $13.9 $11.6 $10.7 $9.8 $8.9 $8.3 $7.5 $6.8 Q3'14 Q4'14 Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Vault Registrations CRM Events Management Vault CTMS Network Product Master Vault SubmissionsArchive Al
Slide 21: Cloud Platform Types
Cloud Platform Types APPLICATION PLATFORMS SALESFORCE SERVICENOW WORKDAY VEEVA VAULT SYSTEM SOFTWARE AMAZON S3 GOOGLE DATASTORE AMAZON REDSHIFT INFRASTRUCTURE AMAZON EC2 MICROSOFT AZURE VM GOOGLE COMPUTE ENGINE © Copyright 2016 Veeva Systems Inc., all rights reserved veeva.com | 21
Slide 22: Application Platforms
Application Platforms SECURITY REPORTING SCALABILITY ADMINISTRATION INTEGRATION WORKFLOW BUSINESS CUSTOMIZATION LOGIC © Copyright 2016 Veeva Systems Inc., all rights reserved veeva.com | 22
Slide 23: Application Platforms
Application Platforms APPLICATION PLATFORMS PRIMARY PURPOSE Salesforce Front office apps Workday Back office apps ServiceNow IT/service apps Content apps Veeva Vault Industry-specific apps FILE SHARING PLATFORMS • FILE Box: File sharing, SHARING light workflow PLATFORMS • OneDrive & SharePoint: File
Slide 24: Content Applications are the Future
Content Applications are the Future  Historical approach  Filenet, OpenText, Documentum  On-premise, build your own applications  The way forward  Targeted cloud applications  Customers prefer to buy versus build  Rich content  Content + data © Copyright 2016 Veeva Systems Inc., all rights r
Slide 25: Vault Strategy
Vault Strategy Content Industry-specific Application Efficiency & applications applications platform scale © Copyright 2016 Veeva Systems Inc., all rights reserved veeva.com | 25
Slide 27: $1B Revenue Run Rate Target in CY'20
$1B Revenue Run Rate Target in CY’20 FYQ2’16 FYQ2’17 CY’20e Total Revenue ~$400M ~$525M $1B+ Revenue Run Rate Revenue Run Rate Revenue Run Rate Non-CRM as a % 20%+ ~35% 50%+ of Total Revenue Eight-figure 9 13 20 Customers Customers 350 450+ 500+ Note: The Q2’16 customer count is adjusted to include
Slide 30: Life Sciences Industry is Large and Growing
Life Sciences Industry is Large and Growing $1.7T 6% CAGR Sources: MarketLine Industry Profile Global Health Care Equipment & Supplies, February 2016, Reference Code: 0199-2067 was published February 2016(Table 4). MarketLine Industry Profile Global Pharmaceuticals, December 2015, Reference Code: 01
Slide 32: Investment Inflection Points
Investment Inflection Points SALES & R&D LAUNCHES MARKETING $166B Sources: Industrial Research Institute/R&D Magazine, 2016 Global R&D Funding Forecast, Winter 2016. Forbes: 2015 New Drug Approvals Hit 66-Year High. Jan 4, 2016. Factset data and Veeva estimates. © Copyright 2016 Veeva Systems Inc.,
Slide 33: Investment Inflection Points
Investment Inflection Points SALES & R&D LAUNCHES MARKETING $166B 51 Sources: Industrial Research Institute/R&D Magazine, 2016 Global R&D Funding Forecast, Winter 2016. Forbes: 2015 New Drug Approvals Hit 66-Year High. Jan 4, 2016. Factset data and Veeva estimates. © Copyright 2016 Veeva Systems Inc
Slide 34: Investment Inflection Points
Investment Inflection Points SALES & R&D LAUNCHES MARKETING $166B 51 $129B Sources: Industrial Research Institute/R&D Magazine, 2016 Global R&D Funding Forecast, Winter 2016. Forbes: 2015 New Drug Approvals Hit 66-Year High. Jan 4, 2016. Factset data and Veeva estimates. © Copyright 2016 Veeva Syste
Slide 35: $50B in Venture Capital Investment
$50B in Venture Capital Investment Venture investment in biotech and medical device companies since 2009 $50B $10.5 $9.2 $7.6 $6.6 $6.8 $6.8 $6.5 2009 2010 2011 2012 2013 2014 2015 Source: PwC / NVCA MoneyTree Report © Copyright 2016 Veeva Systems Inc., all rights reserved veeva.com | 35
Slide 36: $55B Total IT Spend in Life Sciences
$55B Total IT Spend in Life Sciences $20B $35B Infrastructure Software & Services Sources: IDC, IDC, Worldwide IT Spending Guide – Life Science, April 2016 © Copyright 2016 Veeva Systems Inc., all rights reserved veeva.com | 36
Slide 38: Market Definitions
Market Definitions Veeva CRM Vault Regulatory CRM Add-ons Vault Clinical Veeva Network Vault Quality Veeva OpenData Vault Medical Veeva KOL Data Vault Commercial Vault Platform © Copyright 2016 Veeva Systems Inc., all rights reserved veeva.com | 38
Slide 41: Innovation Expands TAM
Innovation Expands TAM 50% INCREASE IN VAULT TAM $6B  Vault Registrations VAULT EXPANSION  Vault Submissions (Sept ‘16) Archive  Vault QMS  Vault CTMS VAULT $3B (Sept ‘15)  Vault Study Startup  Vault PromoMats DAM COMMERCIAL COMMERCIAL CLOUD CLOUD © Copyright 2016 Veeva Systems Inc., all right
Slide 42: Innovation Expands TAM
Innovation Expands TAM $6B NEW PRODUCTS VAULT EXPANSION (Sept ‘16) VAULT VAULT $3B (Sept ‘15) COMMERCIAL COMMERCIAL COMMERCIAL CLOUD CLOUD CLOUD © Copyright 2016 Veeva Systems Inc., all rights reserved veeva.com | 42
Slide 43: Innovation Expands TAM
Innovation Expands TAM VAULT OUTSIDE LIFE SCIENCES $6B NEW PRODUCTS VAULT EXPANSION (Sept ‘16) VAULT VAULT $3B (Sept ’15) COMMERCIAL COMMERCIAL COMMERCIAL CLOUD CLOUD CLOUD © Copyright 2016 Veeva Systems Inc., all rights reserved veeva.com | 43
Slide 44: Innovation Expands TAM
Innovation Expands TAM VAULT OUTSIDE LIFE SCIENCES $6B NEW PRODUCTS VAULT EXPANSION (Sept ‘16) VAULT VAULT $3B (Sept ‘15) COMMERCIAL COMMERCIAL COMMERCIAL CLOUD CLOUD CLOUD $525M* VEEVA TODAY *2Q revenues annualized © Copyright 2016 Veeva Systems Inc., all rights reserved veeva.com | 44
Slide 46: Veeva Spans an Entire Life Sciences Company
Veeva Spans an Entire Life Sciences Company QUALITY & REGULATORY CLINICAL MEDICAL COMMERCIAL MANUFACTURING Registrations CMTS Submissions Study Startup QMS MedComms PromoMats DAM SubmissionsArchive eTMF QualityDocs Align Approved Email CLM Events Management Engage Customer Master Product Master KOL
Slide 47: Unified Suite Approach is Resonating
Unified Suite Approach is Resonating Average Commercial Cloud products per CRM customer 2.47 2.63 2.22 1.90 FY14 FY15 FY16 2Q17 147 190 212 228 CUSTOMERS CUSTOMERS CUSTOMERS CUSTOMERS © Copyright 2016 Veeva Systems Inc., all rights reserved veeva.com | 47
Slide 48: Unified Suite Approach is Resonating
Unified Suite Approach is Resonating Percentage of CRM customers with multiple products is growing 5+ PRODUCTS 5+ PRODUCTS 4 PRODUCTS 4 PRODUCTS 3 PRODUCTS 8% 14% 13% 14% 13% 77% 15% 59% 3 PRODUCTS 1-2 PRODUCTS 1-2 PRODUCTS Q2‘15 Q2‘17 © Copyright 2016 Veeva Systems Inc., all rights reserved veeva.c
Slide 49: Unified Suite Approach is Resonating
Unified Suite Approach is Resonating Average Vault products per Vault customer 1.52 1.53 1.77 1.48 FY14 FY15 FY16 2Q17 69 135 219 278 CUSTOMERS CUSTOMERS CUSTOMERS CUSTOMERS © Copyright 2016 Veeva Systems Inc., all rights reserved veeva.com | 49
Slide 50: Unified Suite Approach is Resonating
Unified Suite Approach is Resonating Percentage of Vault customers with multiple products is growing 3 PRODUCTS 4+ PRODUCTS 4+ PRODUCTS 3 PRODUCTS 2 PRODUCTS 4% 9% 11% 25% 17% 63% 70% 2 PRODUCTS 1 PRODUCT 1 PRODUCT Q2’15 Q2’17 © Copyright 2016 Veeva Systems Inc., all rights reserved veeva.com | 50
Slide 51: Vault Customers Expand Over Time
Vault Customers Expand Over Time Annualized Vault subscription revenue by annual cohort Average Vault products per customer 1.4x 1.6 2.0x 1.8 5.2x 2.4 15.3x 2.5 First year Q2'17 2013 2014 2015 2016 © Copyright 2016 Veeva Systems Inc., all rights reserved veeva.com | 51
Slide 56: Continued Cloud Innovation
Continued Cloud Innovation Major Veeva product releases 2007 2016 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 Major product releases © Copyright 2016 Veeva Systems Inc., all rights reserved veeva.com | 56
Slide 62: Evolving Commercial Landscape
Evolving Commercial Landscape SHIFT TO CUSTOMER NEW WAYS RISING SPECIALIZED STRUCTURES & TO PROVIDE CUSTOMER MEDICINES STAKEHOLDERS VALUE EXPECTATIONS DIGITAL DISRUPTION © Copyright 2016 Veeva Systems Inc., all rights reserved veeva.com | 62
Slide 63: Pressure to Deliver Value
Pressure to Deliver Value Prescribers Thought Leaders Payers Caregivers Patients Regulators Pharmacies © Copyright 2016 Veeva Systems Inc., all rights reserved veeva.com | 63
Slide 64: Complex Commercial Environment
Complex Commercial Environment Multiple Multiple Multiple Customer Facing Roles Channels Decision Makers © Copyright 2016 Veeva Systems Inc., all rights reserved veeva.com |
Slide 67: Why it Matters?
Why it Matters? Eliminate Get Servers and infrastructure Single, accountable vendor Managing multiple vendors Regulatory compliance Building and maintaining Better user experience and integrations adoption Compatibility issues Extensive partner network Users navigating multiple Streamlined and innov
Slide 72: Events Management in Life Sciences
Events Management in Life Sciences $7.8B 1M annually events Marketing Source: IMS Health Strategic Promotion Database, 2014 © Copyright 2016 Veeva Systems Inc., all rights reserved veeva.com | 72
Slide 73: Fragmented and Complex
Fragmented and Complex Capabilities and Integrations 1. Events management application 2. Compliance controls 3. Approval workflows 4. Embedded in CRM 5. Expense planning and reconciliation 6. Budgeting 7. Integrated customer list 8. Email integration 9. Content storage 10. Content distribution and w
Slide 77: Demo
Demo Data LEARN HCP HAS Sales PREPARE FOR CALL Operations MOVED ONLINE MEETING VERIFY NEW ADDRESS Sales REALIGN TO NEW HCP Operations TERRITORY MEET ON HIS TERMS SEND TO CRM © Copyright 2016 Veeva Systems Inc., all rights reserved veeva.com | 77
Slide 78: Demo
Demo Data LEARN HCP HAS Sales PREPARE FOR CALL Operations MOVED ONLINE MEETING VERIFY NEW ADDRESS Sales REALIGN TO NEW HCP Operations TERRITORY MEET ON HIS TERMS SEND TO CRM © Copyright 2016 Veeva Systems Inc., all rights reserved veeva.com | 78
Slide 79: Demo
Demo Data LEARN HCP HAS Sales PREPARE FOR CALL Operations MOVED ONLINE MEETING VERIFY NEW ADDRESS Sales REALIGN TO NEW HCP Operations TERRITORY MEET ON HIS TERMS SEND TO CRM © Copyright 2016 Veeva Systems Inc., all rights reserved veeva.com | 79
Slide 81: Veeva OpenData and Veeva Network
Veeva OpenData and Veeva Network ACCURATE EASILY BETTER DATA ACCESSIBLE Compliant CONVERSATIONS © Copyright 2016 Veeva Systems Inc., all rights reserved veeva.com | 81
Slide 82: Top 20 Pharma
Top 20 Pharma Customer data foundation enables business transformation PROBLEM SOLUTION BENEFIT Connect with Veeva OpenData Single view of new decision and Network customer for makers: IDNs multichannel and ACOs Proactive data updates by Veeva Thousands of Engage data stewards reps spend more effect
Slide 85: Top 20 Pharma
Top 20 Pharma Align enables process standardization and better, faster alignments PROBLEM SOLUTION BENEFIT Alignments Deployed Veeva Reduced lead require long lead Align across 7 time from 4 times and IT countries weeks to 3 days support Allowed for more More accurate Spreadsheets sophisticated alig
Slide 87: Interact at Customer's Convenience
Interact at Customer’s Convenience CLM www Engage for Portals Approved Email Engage Meeting Events Management Engage Webinar © Copyright 2016 Veeva Systems Inc., all rights reserved veeva.com | 87
Slide 89: Veeva CRM Engage Webinar
Veeva CRM Engage Webinar Virtual events, compliant and easy EASY COMPLIANT INTEGRATED Easy Compliant Accessible © Copyright 2016 Veeva Systems Inc., all rights reserved veeva.com | 89
Slide 91: Top 20 Pharma
Top 20 Pharma Transforming customer engagement with Veeva Commercial Cloud PROBLEM SOLUTION BENEFIT Getting right Global Speed move to information to deployment to multichannel HCPs in preferred 90+ markets channel  CRM Streamlines global content  CLM Mandate to change management engagement model
Slide 92: Commercial Evolution
Commercial Evolution Coordinated Multichannel Multichannel Execution Digitally Enabled Rep Field Rep Face-to-face © Copyright 2016 Veeva Systems Inc., all rights reserved veeva.com | 92
Slide 95: Content and Data in Life Sciences
Content and Data in Life Sciences 70K 300M 200K New Pages of Clinical FDA Submissions Investigator Information Sites Source: clinicaltrials.gov and fda.gov. © Copyright 2016 Veeva Systems Inc., all rights reserved veeva.com | 95
Slide 96: The Life Sciences Industry Today
The Life Sciences Industry Today Real-time External Partners Global Compliance & Vendors Markets © Copyright 2016 Veeva Systems Inc., all rights reserved veeva.com | 96
Slide 97: Life Sciences Industry Lagging
Life Sciences Industry Lagging Performance Cloud Computing Infrastructure Advances Mobility Consumer Web Life Sciences © Copyright 2016 Veeva Systems Inc., all rights reserved veeva.com | 97
Slide 98: Technology is Fragmented
Technology is Fragmented Regulatory Non-clinical Planning Tracking Global Health Authorities Clinical CMC Document Repositories Registrations CSOs CROs Correspondence Collaboration Partners / Vendors Portals Publishing Local Affiliate Email Systems Co-development Archiving CMOs eTMF CTMS EDC Local A
Slide 103: Vault Platform Accelerates Innovation
Vault Platform Accelerates Innovation Vault QMS Vault PromoMats DAM Expected Documents List Vault CTMS Dynamic Access Control Vault RIM Vault Study Start Up 16 Vault Objects 15 Attachments 14 Vault Investigator Portal 13 12 Vault Submissions 11 Vault eTMF 10 9 Vault QualityDocs 8 7 Vault MedComms 6
Slide 104: Content and Data
Content and Data Unified Business Process Content Reduces Complexity & Integration Data Real-time Insight © Copyright 2016 Veeva Systems Inc., all rights reserved veeva.com | 104
Slide 107: Unifying clinical operations to accelerate trial execution and deliver real-time insight
Unifying clinical operations to accelerate trial execution and deliver real-time insight © Copyright 2016 Veeva Systems Inc., all rights reserved veeva.com | 107
Slide 112: Current State: An Example
Current State: An Example CHECK HQ INFORMATION 1. Create new tracking sheet to manage request 2. Review in HQ tracking system 3. Check spreadsheets on local and share drives 4. Look through emails 5. Update request tracking sheet CONFIRM WITH LOCAL AFFILIATES 6. Email local affiliates for informatio
Slide 113: Current State: An Example
Current State: An Example CORROBORATE DATA AGAINST CHANGE CONTROLS 11.Contact CMC for change control information 12.Contact CMOs as required 13.Contact local affiliates as required for ‘missing’ registrations 14.Update tracking sheet CORROBORATE DATA AGAINST LABELING INFORMATION 15.Contact Labeling
Slide 114: What Happens in Vault RIM?
What Happens in Vault RIM? Check Where and How Products are Sold 1. Log into Vault RIM 2. Run ‘Where is My Product Sold’ report © Copyright 2016 Veeva Systems Inc., all rights reserved veeva.com | 114
Slide 115: The Result?
The Result? From 18+ Steps to 2 Steps From Weeks and Months to Less than a Minute From High Compliance Risk to Low Compliance Risk From High Cost to Low Cost From Low Visibility and Control to Full Visibility and Control © Copyright 2016 Veeva Systems Inc., all rights reserved veeva.com |
Slide 116: Answering the Important Questions
Answering the Important Questions ? Where and how is my product sold? ? How do I implement a new supplier? ? How can I activate a new clinical site? veeva.com | ‹#› © © Copyright Copyright 2016 2016 Veeva Veeva Systems Systems Inc., Inc., all all rights rights reserved reserved veeva.com |
Slide 118: Large Mid-Tier Biotech Company
Large Mid-Tier Biotech Company Unifying operations across R&D CHALLENGE Collaboration with external partners Usability and end user adoption Global performance and scalability © Copyright 2016 Veeva Systems Inc., all rights reserved veeva.com | 118
Slide 119: Large Mid-Tier Biotech Company
Large Mid-Tier Biotech Company Unifying operations across R&D CHALLENGE WHY VAULT? Collaboration Global with external accessibility partners Intuitive and Usability and easy to use end user adoption Single source for Clinical and Global Regulatory performance content and scalability © Copyright 2016
Slide 120: Large Mid-Tier Biotech Company
Large Mid-Tier Biotech Company Unifying operations across R&D CHALLENGE WHY VAULT? BENEFITS Collaboration Global Increased with external accessibility submissions partners throughput Intuitive and Usability and easy to use Decreased end user submission time adoption Single source for Clinical and In
Slide 121: Top 10 Pharma
Top 10 Pharma Adopting Vault across the enterprise CHALLENGE Multiple legacy content systems Better ability to share information across areas Support for global processes and access © Copyright 2016 Veeva Systems Inc., all rights reserved veeva.com | 121
Slide 122: Top 10 Pharma
Top 10 Pharma Adopting Vault across the enterprise CHALLENGE WHY VAULT? Multiple legacy Simple, user content systems friendly apps in all major areas Better ability to share Single source information for content & across areas data Support for Configuration vs global customization processes and Spee
Slide 123: Top 10 Pharma
Top 10 Pharma Adopting Vault across the enterprise CHALLENGE WHY VAULT? BENEFITS Multiple legacy Simple, user Simplified content systems friendly apps in technology all major areas landscape Better ability to share Single source Better visibility information for content & across across areas data pr
Slide 124: Vault Value Increases with Adoption
Vault Value Increases with Adoption Platform & Applications Single Source of Truth Content & Data Unified Suites of Applications © Copyright 2016 Veeva Systems Inc., all rights reserved veeva.com | 124
Slide 126: History of Growth and Profitability
History of Growth and Profitability $525-528M $409M $313M $210M $130M $138-140M $109M $86M $61M $47M $29M $30M $5M $7M FY’11 FY’12 FY’13 FY’14 FY’15 FY’16 FY’17² Revenue Non-GAAP Operating Income1 Fiscal Year Ending January 31 ¹A reconciliation of non-GAAP to GAAP measures is set forth at Appendix 1
Slide 127: Our Industry Cloud Business Model
Our Industry Cloud Business Model Higher Strategic Focused Customer Reference Partner R&D Spend Lifetime Selling Value © Copyright 2016 Veeva Systems Inc., all rights reserved veeva.com | 127
Slide 128: Q2'17 Snapshot
Q2’17 Snapshot Y-to-Y Growth 34% 40% 243 bp $131.3m $105.2m 70.2% Total Revenue Total Subscription Gross Margin Revenue (Non-GAAP) 28% 23% 60.7% $36.7m $22.3m $144.3m Operating Income Net Income LTM Cash Flow From (Non-GAAP) (Non-GAAP) Operations Note: A reconciliation of non-GAAP to GAAP measures i
Slide 129: Market Definitions
Market Definitions Veeva CRM Vault Regulatory CRM Add-ons Vault Clinical Veeva Network Vault Quality Veeva OpenData Vault Medical Veeva KOL Data Vault Commercial Vault Platform © Copyright 2016 Veeva Systems Inc., all rights reserved veeva.com | 129
Slide 130: Historical total revenue by product area
Historical total revenue by product area Old product breakdown: CRM and non-CRM $525-528M¹ $409 ~65% $313 74% $210 64% 84% $130M 93% ~35% 97% 31% 26% 16% FY'13 FY'14 FY'15 FY'16 FY'17 Fiscal Year Ending January 31 ¹ Guidance provided as of August 30, 2016. CRM Non-CRM © Copyright 2016 Veeva Systems
Slide 131: Historical total revenue by product area
Historical total revenue by product area New product breakdown: Commercial Cloud and Vault $525-528M¹ $409 ~70% $313 78% $210 64% 88% $130M 95% ~30% 97% 31% 22% 12% FY'13 FY'14 FY'15 FY'16 FY'17 Fiscal Year Ending January 31 ¹ Guidance provided as of August 30, 2016. Commercial Cloud Vault © Copyrig
Slide 132: FY'17 Subscription Revenue Growth Guidance
FY’17 Subscription Revenue Growth Guidance ~15% ~17% CRM Commercial Cloud 100%+ 100%+ Non-CRM Vault © Copyright 2016 Veeva Systems Inc., all rights reserved veeva.com | 132
Slide 133: Updated $1B Revenue Run Rate Target in CY'20
Updated $1B Revenue Run Rate Target in CY’20 FYQ2’16 FYQ2’17 CY’20e Total Revenue ~$400M ~$525M $1B+ Revenue Run Rate Revenue Run Rate Revenue Run Rate Non-CRM as a % 20%+ ~35% 50%+ of Total Revenue Eight-figure 9 13 20 Customers Customers 350 450+ 500+ Note: Eight-figure customers are defined as th
Slide 134: Veeva in CY'20
Veeva in CY’20 2015 2016 2020 (FY’16) (FY’17) (FY’21) Non-GAAP Improved revenue mix 72-73% 67% 67-68% ~70% Greater Vault contribution to revenue Gross margin S&M % of revenue Continued scaling of sales team & support 17-18% 18% ~19% Building the outside-life-sciences team (Non-GAAP) R&D % of revenue
Slide 135: Key Highlights
Key Highlights  Well positioned for long-term growth  Large commercial cloud opportunity  Vault as second growth engine  Strategic partner to life sciences  Veeva Way  Strategic markets, product excellence, customer success  Growth and profitability © Copyright 2016 Veeva Systems Inc., all ri
Slide 138: Reconciliation of GAAP to non-GAAP Measures
Reconciliation of GAAP to non-GAAP Measures in millions FY'11 FY'12 FY'13 FY'14 FY'15 FY'16 Operating income on a GAAP basis $ 5 $ 7 $ 30 $ 39 $ 70 $ 79 Stock-based compensation expense — — — 7 14 24 Amortization of purchased intangibles — — — 1 2 5 Capitalization of internal-use software — — — (1)
Slide 139: Reconciliation of GAAP to non-GAAP Measures
Reconciliation of GAAP to non-GAAP Measures Q2 FY'17 Gross margin on total revenues on a GAAP basis 67.9% Stock-based compensation expense 1.4 Amortization of purchased intangibles 0.8 Amortization of internal-use software 0.1 Deferred compensation associated with Zinc Ahead acquisition — Gross marg
Slide 140: Reconciliation of GAAP to non-GAAP Measures
Reconciliation of GAAP to non-GAAP Measures FY'16 Gross margin on total revenues on a GAAP basis 65% Stock-based compensation expense 1 Amortization of purchased intangibles 1 Amortization of internal-use software — Deferred compensation associated with Zinc Ahead acquisition — Gross margin on total

Veeva Systems — Investor Day (September 2016) on 6ix

Veeva Systems — Investor Day (September 2016)

Slide 1: Analyst & Investor Day

Slide 2: Safe Harbor

Slide 3: Agenda

Slide 4: Cloud Innovation

Slide 5: Building the Industry Cloud for Life Sciences

Slide 6: Key Highlights

Slide 7: Seven Years of Growth and Profitability

Slide 8: Progress Since IPO

Slide 9: The Veeva Way

Slide 10: Veeva Way

Slide 11: Veeva Way: Product Excellence

Slide 12: Veeva Way: Field Model

Slide 13: Veeva Way: Financial Model

Slide 14: Product Update

Slide 15: Two Engines of Growth

Slide 16: Veeva Commercial Cloud

Slide 17: Veeva Vault

Slide 18: Vault Tracking Ahead vs. Early Days of CRM

Slide 19: Investing in innovation

Slide 20: Vault Platform

Slide 21: Cloud Platform Types

Slide 22: Application Platforms

Slide 23: Application Platforms

Slide 24: Content Applications are the Future

Slide 25: Vault Strategy

Slide 26: 2020 and Beyond

Slide 27: $1B Revenue Run Rate Target in CY'20

Slide 28: 2020 and Beyond

Slide 29: Industry Cloud Market Opportunity

Slide 30: Life Sciences Industry is Large and Growing

Slide 31: Investment Inflection Points

Slide 32: Investment Inflection Points

Slide 33: Investment Inflection Points

Slide 34: Investment Inflection Points

Slide 35: $50B in Venture Capital Investment

Slide 36: $55B Total IT Spend in Life Sciences

Slide 37: Veeva's Total Addressable Market

Slide 38: Market Definitions

Slide 39: Innovation Expands TAM

Slide 40: Innovation Expands TAM

Slide 41: Innovation Expands TAM

Slide 42: Innovation Expands TAM

Slide 43: Innovation Expands TAM

Slide 44: Innovation Expands TAM

Slide 45: Customer Analysis

Slide 46: Veeva Spans an Entire Life Sciences Company

Slide 47: Unified Suite Approach is Resonating

Slide 48: Unified Suite Approach is Resonating

Slide 49: Unified Suite Approach is Resonating

Slide 50: Unified Suite Approach is Resonating

Slide 51: Vault Customers Expand Over Time

Slide 52: Strategic Partner to Life Sciences

Slide 53: Focus on Customer Success

Slide 54: Reference Selling

Slide 55: Unified & Best-of-breed

Slide 56: Continued Cloud Innovation

Slide 57: Veeva Ecosystem

Slide 58: Strategic Partner to the Industry

Slide 59: Industry Cloud for Life Sciences

Slide 60: Jazz Tobaccowalla

Slide 61: Veeva Commercial Cloud

Slide 62: Evolving Commercial Landscape

Slide 63: Pressure to Deliver Value

Slide 64: Complex Commercial Environment

Slide 65: Complex Systems

Slide 66: Unified & Best-of-breed

Slide 67: Why it Matters?

Slide 68: Veeva Commercial Cloud

Slide 69: Veeva CRM

Slide 70: Veeva is the Global CRM Leader

Slide 71: Commercial Cloud Example: Events Management

Slide 72: Events Management in Life Sciences

Slide 73: Fragmented and Complex

Slide 74: Top 20 Global Pharma

Slide 75: Dramatically Simplified

Slide 76: Demo

Slide 77: Demo

Slide 78: Demo

Slide 79: Demo