Veeva Systems Inc. · NYSE:VEEV

Veeva Systems — Investor Day (November 2024)

62 slides from Veeva Systems's investor day presentation, Nov 7, 2024

Slide 1: Investor Day
Investor Day November 7, 2024
Slide 2: 2024 Veeva Investor Day
2024 Veeva Investor Day Veeva Vision and Strategy Peter Gassner, Founder & CEO Financial Update Brian Van Wagener, CFO Break Life Sciences Industry Perspective Paul Shawah, EVP Strategy Markus Schümmelfeder, CIO, Boehringer Ingelheim Q&A Copyright © Veeva Systems 2023 Copyright © Veeva Systems 2024
Slide 3: Safe Harbor and Other Information
Safe Harbor and Other Information This presentation and associated commentary contain forward-looking statements regarding Veeva’s future plans and expected performance, market size and opportunity, and financial outlook, including guidance provided as of August 28, 2024 about Veeva’s expected futur
Slide 4: Peter Gassner
Peter Gassner Founder & CEO
Slide 5: Vision and Values
Vision Building the Industry Cloud for Life Sciences Values Do the Right Thing Customer Success Employee Success Speed A Public Benefit Corporation Copyright © Veeva Systems 2023
Slide 7: Durable Company
Durable Company
Slide 10: Multi-Product Operating Model
Multi-Product Operating Model Customer Success • Employee Success • Product Excellence • Speed Operating Operating Role Principles Methods Definitions Copyright © Veeva Systems 2023 Copyright © Veeva Systems 2024
Slide 11: Humility
Humility
Slide 12: The Ability to Change
The Ability to Change It’s not the strongest or smartest company that will survive. It’s the one that retains the ability to change. Copyright © Veeva Systems 2023 Copyright © Veeva Systems 2024
Slide 13: Long Runway of Growth
Long Runway of Growth
Slide 14: Life Sciences Industry is Large and Growing
Life Sciences Industry is Large and Growing $2T+ Growing at 6%+ CAGR Biopharma • MedTech Source: Evaluate Copyright © Veeva Systems 2023 Copyright © Veeva Systems 2024
Slide 15: Our Life Sciences Opportunity
Our Life Sciences Opportunity ~14% Penetrated FY25E Revenue $2T+ 1% Veeva Technology Solutions $20B+ TAM 6%+ CAGR Biopharma • MedTech Source: Evaluate and Veeva estimates TAM: Industry specific software, data, and high value services Penetration and FY25 revenue based on the high end of our guidance
Slide 16: Our Life Sciences Opportunity
Our Life Sciences Opportunity Regulatory & Safety 10% Quality 20% Clinical 35% $20B+ Life Sciences TAM Commercial 35% FY25E Revenue ~14% Penetrated Source: Evaluate and Veeva estimates TAM: Industry specific software, data, and high value services Penetration and FY25 revenue based on the high end o
Slide 17: Industry Cloud for Life Sciences
Industry Cloud for Life Sciences SOFTWARE • DATA • BUSINESS CONSULTING Veeva Veeva Veeva Development Commercial Data Cloud Cloud Cloud Business Consulting Copyright © Veeva Systems 2023 Copyright © Veeva Systems 2024
Slide 18: The Technology Foundation for Product Development
The Technology Foundation for Product Development Clinical Clinical Regulatory Drug Quality Operations Data Safety eTMF EDC Registrations Safety QualityDocs CTMS CDB Submissions SafetyDocs QMS Study Startup eCOA Archive Workbench* Training RTSM Publishing Signal* Validation Site Connect LIMS Study T
Slide 19: The Technology Foundation for Commercial Execution
The Technology Foundation for Commercial Execution CRM Suite Content Medical Patient Crossix Core CRM PromoMats MedComms Patient CRM* Consumer Approved Email MedInquiry HCP Engage Audiences Events Management Align Service Center Campaign Manager* VAULT PLATFORM *Products planned for future availabil
Slide 20: Vault CRM Progress and Roadmap
Vault CRM Progress and Roadmap 2022 2023 2024 2025 2026 2030 Q4 Q4 Q2 Q3 Q4 Q3 • Announced Vault CRM • First early adopter • Vault CRM available • Patient CRM available • Most customers have • Veeva CRM customers live a migration plan end of life • Development started • Selling Vault CRM to all new
Slide 21: The Modern Data Platform for Life Sciences
The Modern Data Platform for Life Sciences OpenData Link Compass Pulse Reference Data Deep Data Transaction Data Pulse Data Commercial Key People Patient Commercial* Clinical* Key Accounts Prescriber Clinical* Medical Insights National Workflow COMMON DATA ARCHITECTURE *Products planned for future a
Slide 23: The Platform for Life Sciences Innovation
The Platform for Life Sciences Documents R&D and Innovation and Data Commercial Scalability Efficiency Performance Security Copyright © Veeva Systems 2023 Copyright © Veeva Systems 2024
Slide 24: Veeva's AI Strategy
Veeva’s AI Strategy Application Bots Direct Data API AI Partner Program FOR KEY PROCESSES FOR HIGH-SPEED DATA ENABLES CUSTOMERS & PARTNERS Copyright © Veeva Systems 2023 Copyright © Veeva Systems 2024
Slide 26: Veeva 2030
Veeva 2030
Slide 29: Consistent Execution with a Long-term View
Consistent Execution with a Long-term View Revenue Run Rate Goal Status 2020 Goal set in 2015 $1B Achieved 2025 Goal set in 2019 $3B On Track 2030 Goal set in 2024 $6B New Goal Copyright © Veeva Systems 2023 Copyright © Veeva Systems 2024
Slide 30: New Markets
New Markets
Slide 31: Big Leaps for Veeva
Big Leaps for Veeva Year Market Potential 2007 Pharma CRM $1B+ 2010 Industry Cloud $10B+ 2024 Enterprise Applications $100B+ Copyright © Veeva Systems 2023 Copyright © Veeva Systems 2024
Slide 35: Capital Allocation
Capital Allocation • New Markets priority • Patience to find the right acquisitions for New Markets • Major life sciences acquisition unlikely • Always consider potential for capital return Copyright © Veeva Systems 2023 Copyright © Veeva Systems 2024
Slide 37: Brian Van Wagener
Brian Van Wagener Chief Financial Officer
Slide 39: Q3'25 Guidance
Q3’25 Guidance Guidance Total Revenue $682-685 million Subscription Revenue ~$571 million Services Revenue $111-114 million Non-GAAP Operating Income $273-275 million Non-GAAP Fully Diluted $1.57-1.58 Net Income per Share Normalized Billings ~$449 million Guidance issued on August 28, 2024. Our Q3’2
Slide 40: Consistent History of Strong Growth and Profitability
Consistent History of Strong Growth and Profitability $2.71B Revenue $2.36B Non-GAAP Operating Income1 $2.16B $1.85B $1.47B $1.10B $1.08B $830M $843M $759M $583M $412M FY202 FY212 FY22 FY23 FY243 FY25E4 Fiscal Year Ending January 31 ¹ A reconciliation of GAAP to non-GAAP measures is set forth in the
Slide 41: Subscriptions Drive Our Long-term Results
Subscriptions Drive Our Long-term Results Q2’25 Revenue Non-GAAP Gross Revenue Mix Margin Subscriptions $561M 83% 86% Services $115M 17% 32% Total $676M 100% 77% A reconciliation of GAAP to non-GAAP measures is set forth in the Appendix Copyright © Veeva Systems 2023 Copyright © Veeva Systems 2024
Slide 42: Strong Base Within Primary Biopharma Segment
Strong Base Within Primary Biopharma Segment Biopharma Top Top20 20 Enterprise Enterprise SMB SMB ~50% ~15% ~35% Approximates Q2’25 revenue mix Enterprise includes Top 6 CRO, with the remainder of CRO revenues included in SMB Copyright © Veeva Systems 2023 Copyright © Veeva Systems 2024
Slide 43: Long Runway In Current Products and Beyond
Long Runway In Current Products and Beyond Regulatory & Safety 10% Quality 20% Clinical 35% $20B+ Life Sciences TAM >50% from existing products Commercial 35% FY25E Revenue ~14% Penetrated Source: Evaluate and Veeva estimates TAM: Industry specific software, data, and high value services Penetration
Slide 44: Veeva 2030
Veeva 2030 Today 2030 Goals Total Revenue Run Rate $2.7B $6B Non-GAAP Operating Margin 41% 35%+ Today reflects Q2’25 We are unable to provide CY30 GAAP operating margin targets due to difficulty of estimating certain items excluded from non-GAAP operating income that cannot be reasonably predicted,
Slide 45: Veeva 2030
Veeva 2030 Today 2030 Goals Total Revenue Run Rate $2.7B $6B Largely organic R&D $1.4B ~$4B Existing products Commercial $1.3B ~$2B Growth and profitability Subscription Revenue Mix 83% ~87% Non-GAAP Operating Margin 41% 35%+ Today reflects Q2’25. Existing products include current offerings for biop
Slide 46: Product Adoption Cycle
Product Adoption Cycle Early Reference Leader Adopters Selling and Liked Each product is different Key projects Strategic partner Copyright © Veeva Systems 2023 Copyright © Veeva Systems 2024
Slide 49: Clinical Operations Example
Clinical Operations Example 100% 100% Our Opportunity Subscription Revenue 50% 50% Current Penetration Subscription Revenue 0% 0% eTMF CTMS Site Connect Study Training RTSM Source: Veeva estimates Example reflects five of eight Clinical Operations products Copyright © Veeva Systems 2023 Copyright ©
Slide 50: Long Runway for Growth in Biopharma
Long Runway for Growth in Biopharma 100% 100% Our Opportunity Subscription Revenue 50% 50% Current Penetration Subscription Revenue 0% 0% Leader & Liked Reference Selling Early Adopter Source: Veeva estimates Copyright © Veeva Systems 2023 Copyright © Veeva Systems 2024
Slide 51: Investing in Product Excellence and Innovation
Investing in Product Excellence and Innovation Q2’25 Mix of Total Non-GAAP Subscription Expenses Sales & Marketing 23% Product 64% Supporting Functions 13% Total Non-GAAP Subscription Expense = Product expense + Sales & Marketing expense + Supporting Functions expense. Product expense = non-GAAP cos
Slide 52: Continued Focus on Profitability
Continued Focus on Profitability 25% 25% 25% 25% 24% 26% Consistent history of profitability 37% 35% 34% 36% 36% 38% Lean teams and prudent spending 35% 37% 40% 41% 39% 36% 40% Invest for growth as needed FY20 FY21 FY22 FY23 FY24 1 FY25E 2 Non-GAAP Operating Margin Non-GAAP Operating Expenses Non-GA
Slide 54: Fireside Chat: Markus Schümmelfeder
FIRESIDE CHAT Markus Schümmelfeder CIO, BOEHRINGER INGELHEIM
Slide 55: Q&A
Q&A
Slide 56: Appendix
Appendix
Slide 57: Continued Adoption in R&D
Continued Adoption in R&D Avg. Products 2.35 2.61 2.85 3.02 3.24 3.36 Per Customer: 1,078 1,074 1,025 860 542 505 550 664 480 538 389 255 280 346 239 197 168 125 281 289 236 183 67 107 FY20 FY21 FY22 FY23 FY24 Q2FY25 Customers with: 5 or More Products 3-4 Products 2 Products or Fewer Copyright © Vee
Slide 58: Expanding Our Commercial Leadership
Expanding Our Commercial Leadership Avg. Products 3.51 3.95 4.04 4.02 4.08 4.05 Per Customer: 711 684 693 653 572 523 358 366 384 335 297 306 219 209 203 221 194 167 97 107 118 124 81 50 FY20 FY21 FY22 FY23 FY24 Q2FY25 Customers with: 8 or More Products 4-7 Products 3 Products or Fewer Copyright © V
Slide 59: 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 60: Reconciliation of GAAP to Non-GAAP Measures
Reconciliation of GAAP to Non-GAAP Measures in millions FY'20 FY'21 FY'22 FY'23 FY'24 Operating income on a GAAP basis $ 286.2 $ 377.8 $ 505.5 $ 459.1 $ 429.3 Stock-based compensation expense 115.9 185.0 234.6 351.9 393.7 Amortization of purchased intangibles 10.1 20.0 18.5 19.5 19.5 Operating incom
Slide 61: Reconciliation of GAAP to Non-GAAP Measures
Reconciliation of GAAP to Non-GAAP Measures Q2'25 Cost of subscription services revenues on a GAAP basis $ 78.8 Stock-based compensation expense (1.6) Amortization of purchased intangibles (1.1) Cost of subscription services revenues on a non-GAAP basis $ 76.0 Q2'25 Research and development expense
Slide 62: Reconciliation of GAAP to Non-GAAP Measures
Reconciliation of GAAP to Non-GAAP Measures FY'20 FY'21 FY'22 FY'23 FY'24 Cost of revenues as a percent of revenue on a GAAP basis 27.5% 27.9% 27.2% 28.3% 28.7% Stock-based compensation expense (1.8) (2.2) (2.2) (2.6) (2.6) Amortization of purchased intangibles (0.4) (0.4) (0.2) (0.2) (0.2) Cost of

Veeva Systems — Investor Day (November 2024) on 6ix

Veeva Systems — Investor Day (November 2024)

Slide 1: Investor Day

Slide 2: 2024 Veeva Investor Day

Slide 3: Safe Harbor and Other Information

Slide 4: Peter Gassner

Slide 5: Vision and Values

Slide 6: Highlights

Slide 7: Durable Company

Slide 8: The Right Product Strategy

Slide 9: The Right Team

Slide 10: Multi-Product Operating Model

Slide 11: Humility

Slide 12: The Ability to Change

Slide 13: Long Runway of Growth

Slide 14: Life Sciences Industry is Large and Growing

Slide 15: Our Life Sciences Opportunity

Slide 16: Our Life Sciences Opportunity

Slide 17: Industry Cloud for Life Sciences

Slide 18: The Technology Foundation for Product Development

Slide 19: The Technology Foundation for Commercial Execution

Slide 20: Vault CRM Progress and Roadmap

Slide 21: The Modern Data Platform for Life Sciences

Slide 22: Veeva Product Quadrant

Slide 23: The Platform for Life Sciences Innovation

Slide 24: Veeva's AI Strategy

Slide 25: Long Runway of Growth: Execution Matters Most

Slide 26: Veeva 2030

Slide 27: Veeva 2025: $3 Billion

Slide 28: Veeva 2030: $6 Billion

Slide 29: Consistent Execution with a Long-term View

Slide 30: New Markets

Slide 31: Big Leaps for Veeva

Slide 32: Horizontal Enterprise Applications: Ready Now

Slide 33: New Markets Plan

Slide 34: Executing in New Markets

Slide 35: Capital Allocation

Slide 36: Highlights

Slide 37: Brian Van Wagener

Slide 38: Financial Update

Slide 39: Q3'25 Guidance

Slide 40: Consistent History of Strong Growth and Profitability

Slide 41: Subscriptions Drive Our Long-term Results

Slide 42: Strong Base Within Primary Biopharma Segment

Slide 43: Long Runway In Current Products and Beyond

Slide 44: Veeva 2030

Slide 45: Veeva 2030

Slide 46: Product Adoption Cycle

Slide 47: Veeva Product Quadrant

Slide 48: Veeva Product Quadrant

Slide 49: Clinical Operations Example

Slide 50: Long Runway for Growth in Biopharma

Slide 51: Investing in Product Excellence and Innovation

Slide 52: Continued Focus on Profitability

Slide 53: Financial Update

Slide 54: Fireside Chat: Markus Schümmelfeder

Slide 55: Q&A

Slide 56: Appendix

Slide 57: Continued Adoption in R&D

Slide 58: Expanding Our Commercial Leadership

Slide 59: Statement Regarding Use of Non-GAAP Financial Measures

Slide 60: Reconciliation of GAAP to Non-GAAP Measures

Slide 61: Reconciliation of GAAP to Non-GAAP Measures

Slide 62: Reconciliation of GAAP to Non-GAAP Measures