Veeva Systems Inc. · NYSE:VEEV
Veeva Systems — Q4 FY2021 Earnings Presentation
24 slides from Veeva Systems's earnings presentation, Mar 2, 2021
Slide 1: Q4'21 Quarterly Results
Q4’21 Quarterly Results March 2, 2021
Slide 2: Safe Harbor and Other Information
Safe Harbor and Other Information This presentation and associated commentary contains forward-looking statements, including statements regarding Veeva’s future financial outlook, guidance, and performance and the assumptions underlying those statements, market growth, the benefits from the use of V
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 on subscription serv
Slide 4: Total Revenue – Annual
Total Revenue – Annual $million $2,000 Subscription Revenue Services Revenue 1,755-1,765 $1,800 $1,600 1,465 325-335 $1,400 286 $1,200 1,104 $1,000 862 208 $800 691 168 ~1,430 $600 131 1,179 $400 896 694 559 $200 $0 FY 2018 FY 2019 FY 2020 1 FY 2021 1 FY 2022 Guidance 2 Y/Y Growth Total 25% 25% 28%1
Slide 5: Total Revenue – Quarterly
Total Revenue – Quarterly $million $450 Subscription Revenue Services Revenue 408-410 378 397 $400 354 337 74 78-80 $350 312 75 70 $300 67 57 $250 $200 $150 303 323 ~330 270 284 254 $100 $50 $0 1 2 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Guidance Y/Y Growth Total 34%1 38% 33% 34% 27% ~21%2 % Mix Commerc
Slide 6: Subscription Revenue – Annual
Subscription Revenue – Annual $million $1,600 Vault Commercial Cloud ~1,430 $1,400 1,179 $1,200 896 ~680 $1,000 694 599 $800 559 469 $600 395 $400 356 ~750 580 $200 428 299 203 $0 1 FY 2018 FY 2019 FY 2020 1 FY 2021 FY 2022 Guidance2 Y/Y Growth Total Subscription 27% 24% 29%1 32%1 ~21%2 Commercial C
Slide 7: Subscription Revenue – Quarterly
$million Subscription Revenue – Quarterly Vault Commercial Cloud $350 323 303 $300 284 270 254 $250 159 152 $200 145 143 135 ~330 $150 $100 151 163 119 128 139 $50 $0 Q4'20 1 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Guidance 2 Y/Y Growth Total Subscription 33%1 36% 30% 34% 27% ~22%2 Commercial Cloud 30%1 35% 2
Slide 8: Non-GAAP Gross Margin – Annual
Non-GAAP Gross Margin – Annual Subscription Gross Margin Services Gross Margin Total Gross Margin 73.3% 74.7% 74.7% 71.4% 83.8% 85.5% 85.2% 81.2% 29.5% 29.8% 28.1% 31.3% 1 FY 2018 FY 2019 FY 2020 FY 2021 Fiscal Year Ending January 31 A reconciliation of GAAP to non-GAAP measures is set forth in the
Slide 9: Non-GAAP Gross Margin – Quarterly
Non-GAAP Gross Margin – Quarterly Subscription Gross Margin Services Gross Margin Total Gross Margin 74.2% 75.4% 75.4% 73.8% 72.4% 84.4% 85.0% 85.6% 85.6% 84.5% 30.5% 34.0% 33.6% 27.3% 19.1% 1 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Fiscal Year Ending January 31 A reconciliation of GAAP to non-GAAP measures i
Slide 10: Non-GAAP Operating Income – Annual
Non-GAAP Operating Income – Annual $million $700 $600 $500 $400 655 $300 583 $200 412 307 $100 220 $0 FY 2018 FY 2019 FY 2020 1 FY 2021 FY 2022 Guidance 2 Non-GAAP 31.9% 35.6% 37.3%1 39.8% ~37%2 Operating Margin Fiscal Year Ending January 31 A reconciliation of GAAP to non-GAAP measures is set forth
Slide 11: Non-GAAP Operating Income – Quarterly
Non-GAAP Operating Income – Quarterly $million $180 $160 $140 $120 $100 $80 156 157-159 144 153 $60 130 103 $40 $20 $0 1 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Guidance2 Non-GAAP 33.2%1 38.5% 40.8% 41.2% 38.6% ~39%2 Operating Margin Fiscal Year Ending January 31 A reconciliation of GAAP to non-GAAP mea
Slide 12: Operating Cash Flow – Annual
Operating Cash Flow – Annual $million Operating Cash Flow excl ETB Excess Tax Benefit (ETB) $700 $600 551 $500 81 437 $400 50 311 $300 ~635 46 471 $200 387 265 $100 $0 FY 2019 FY 2020 FY 2021 FY 2022 Non-GAAP Guidance1 OCF Margin 31% 35% 32% ~36%1 (excl ETB) Fiscal Year Ending January 31 1 Guidance
Slide 13: Operating Cash Flow – Quarterly
Operating Cash Flow – Quarterly $million Operating Cash Flow excl ETB Excess Tax Benefit (ETB) $300 282 20 $250 236 14 $200 $150 262 100 105 222 95 $100 17 22 17 62 68 $50 9 39 22 83 83 78 11 53 46 28 $0 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Fiscal Year Ending January 31 Excess tax benefit
Slide 14: Calculated Billings – Annual
Calculated Billings – Annual $million $2,000 $1,800 $1,600 $1,400 $1,200 $1,000 ~1,870 $800 1,599 $600 1,193 947 $400 744 $200 $0 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Guidance1 Y/Y Growth 24% 27% 26% 34% ~17%1 Fiscal Year Ending January 31 Calculated billings is defined in the Appendix. 1 Guidanc
Slide 15: Calculated Billings – Quarterly
Calculated Billings – Quarterly $million $800 $700 $600 $500 $400 688 $300 519 $200 ~392 334 305 247 271 $100 234 193 $0 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Guidance 1 Fiscal Year Ending January 31 Calculated billings is defined in the Appendix. There are numerous factors that make
Slide 16: Cash, Cash Equivalents, and ST Investments – Quarterly
Cash, Cash Equivalents, and ST Investments – Quarterly $million $1,800 $1,600 $1,400 $1,200 $1,000 $800 1,590 1,664 1,495 1,381 $600 1,087 $400 $200 $0 1 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Fiscal Year Ending January 31 1 We acquired Crossix and Physicians World for $427.2M in cash and $41.4M in cash, res
Slide 17: Employee Headcount – Quarterly
Employee Headcount – Quarterly 5,000 4,500 4,000 3,500 3,000 4,304 4,506 2,500 4,024 3,501 3,667 2,000 1,500 1,000 1 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Quarterly Net 4891 166 357 280 202 Additions Y/Y Growth 37%1 39% 42% 43% 29% Fiscal Year Ending January 31 1 Reflects 384 employees added from the Crossi
Slide 18: FY 2022 Guidance
Guidance Total Revenue $1,755-1,765 million Subscription Revenue ~$1,430 million Commercial Cloud Subscription Revenue ~$680 million Vault Subscription Revenue ~$750 million Services Revenue $325-335 million FY 2022 Guidance Non-GAAP Operating Income ~$655 million Non-GAAP Fully Diluted Net Income p
Slide 19: Q1'22 Guidance
Guidance Total Revenue $408-410 million Subscription Revenue ~$330 million Q1’22 Guidance Services Revenue Non-GAAP Operating Income $78-80 million $157-159 million Non-GAAP Fully Diluted Net Income per Share $0.77-0.78 Calculated Billings ~$392 million Guidance issued on March 2, 2021. We are not a
Slide 20: Appendix
V Appendix
Slide 21: Appendix
Appendix • 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 immedia
Slide 22: Reconciliation of GAAP to non-GAAP Measures
Reconciliation of GAAP to non-GAAP Measures FY'18 FY'19 FY'20 FY'21 Gross margin on total revenues on a GAAP basis 69.4 % 71.6 % 72.5 % 72.1 % Stock-based compensation expense 1.4 % 1.4 % 1.8 % 2.2 % Amortization of purchased intangibles 0.6 % 0.3 % 0.4 % 0.4 % Deferred compensation associated with
Slide 23: Reconciliation of GAAP to non-GAAP Measures
Reconciliation of GAAP to non-GAAP Measures FY'18 FY'19 FY'20 FY'21 Operating income on a GAAP basis $ 157.9 $ 222.9 $ 286.2 $ 377.8 Stock-based compensation expense 54.0 76.4 115.9 185.0 Amortization of purchased intangibles 7.8 7.0 10.1 20.0 Deferred compensation associated with Zinc Ahead acquisi
Slide 24: Reconciliation of GAAP to non-GAAP Measures
Reconciliation of GAAP to non-GAAP Measures Q4 FY'20 Q1 FY'21 Q2 FY'21 Q3 FY'21 Q4 FY'21 Gross margin on total revenues on a GAAP basis 69.7 % 71.9 % 72.5 % 72.7 % 71.3 % Stock-based compensation expense 2.0 % 1.8 % 2.5 % 2.3 % 2.3 % Amortization of purchased intangibles 0.7 % 0.5 % 0.4 % 0.3 % 0.3