Veeva Systems Inc. · NYSE:VEEV
Veeva Systems — Q3 FY2021 Earnings Presentation
25 slides from Veeva Systems's earnings presentation, Dec 1, 2020
Slide 1: Q3'21 Quarterly Results
Q3’21 Quarterly Results December 1, 2020
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 $1,600 Subscription Revenue Services Revenue 1,446-1,448 $1,400 274-276 $1,200 1,104 $1,000 862 208 $800 690 168 $600 551 131 ~1,172 110 896 $400 694 559 $200 441 $0 FY 2017 FY 2018 FY 2019 FY 20201 FY 2021 Guidance2 Y/Y Growth Total 35% 25% 25% 28%1 ~31%2 % Mix Comme
Slide 5: Total Revenue – Quarterly
Total Revenue – Quarterly $million $400 Subscription Revenue Services Revenue 378-380 378 354 $350 337 75 63-65 312 70 $300 281 67 57 $250 54 $200 $150 303 ~315 270 284 254 $100 227 $50 $0 1 2 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Guidance Y/Y Growth Total 25% 34%1 38% 33% 34% ~22%2 % Mix Commercial C
Slide 6: Subscription Revenue – Annual
Subscription Revenue – Annual $million $1,400 Vault Commercial Cloud $1,200 ~1,172 $1,000 896 ~595 $800 694 559 469 $600 441 395 $400 357 308 ~577 $200 428 299 133 203 $0 FY 2017 FY 2018 FY 2019 FY 20201 FY 2021 Guidance2 Y/Y Growth Total Subscription 39% 27% 24% 29%1 ~31%2 Commercial Cloud 19% 16%
Slide 7: Subscription Revenue – Quarterly
$million Subscription Revenue – Quarterly Vault Commercial Cloud 303 $300 284 270 254 $250 227 152 145 $200 143 135 115 $150 ~ 315 $100 139 151 112 119 128 $50 $0 Q3'20 Q4'201 Q1'21 Q2'21 Q3'21 Q4'21 Guidance 2 Y/Y Growth Total Subscription 27% 33%1 36% 30% 34% ~24%2 Commercial Cloud 15% 30%1 35% 29
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% 70.5% 71.4% 83.8% 85.5% 79.8% 81.2% 33.2% 29.8% 29.5% 28.1% 1 FY 2017 FY 2018 FY 2019 FY 2020 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 76.1% 74.2% 75.4% 75.3% 72.4% 86.5% 84.4% 85.0% 85.6% 85.7% 32.5% 30.5% 34.0% 33.7% 19.1% 1 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 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 $600 $500 $400 $300 566-568 $200 412 307 $100 220 173 $0 FY 2017 FY 2018 FY 2019 FY 2020 1 FY 2021 Guidance 2 Non-GAAP 31.3% 31.9% 35.6% 37.3%1 ~39%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 $80 156 144 136-138 $60 130 112 103 $40 $20 $0 1 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Guidance2 Non-GAAP 39.7% 33.2%1 38.5% 40.8% 41.2% ~36%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) $600 $500 437 $400 50 311 $300 46 233 ~500 $200 46 387 265 $100 187 $0 FY 2018 FY 2019 FY 2020 FY 2021 Non-GAAP Guidance1 OCF Margin 27% 31% 35% ~35%1 (excl ETB) Fiscal Year Ending January 31 1 Guidance issue
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 $150 262 222 101 105 $100 95 17 22 17 62 $50 9 39 32 84 83 78 11 15 53 17 28 $0 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Fiscal Year Ending January 31 Excess tax benefit
Slide 14: Calculated Billings – Annual
Calculated Billings – Annual $million $1,800 $1,600 $1,400 $1,200 $1,000 $800 ~1,550 $600 1,193 947 $400 745 599 $200 $0 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 Guidance1 Y/Y Growth 32% 24% 27% 26% ~30%1 Fiscal Year Ending January 31 Calculated billings is defined in the Appendix. 1 Guidance issued
Slide 15: Calculated Billings – Quarterly
Calculated Billings – Quarterly $million $700 $600 $500 $400 ~640 $300 519 $200 394 334 305 247 271 $100 234 193 $0 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Guidance1 Fiscal Year Ending January 31 Calculated billings is defined in the Appendix. There are numerous factors that make year-
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 1,495 1,495 1,381 $600 1,087 $400 $200 $0 Q3'20 Q4'20 1 Q1'21 Q2'21 Q3'21 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 4,500 4,000 3,500 3,000 4,304 2,500 4,024 3,501 3,667 2,000 3,012 1,500 1,000 1 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Quarterly Net 185 4891 166 357 280 Additions Y/Y Growth 21% 37%1 39% 42% 43% Fiscal Year Ending January 31 1 Reflects 384 employees added from the Crossix and
Slide 18: FY 2021 Guidance
Guidance Total Revenue $1,446-$1,448 million Crossix and Physicians World Total Revenue $97-100 million Subscription Revenue ~$1,172 million Commercial Cloud Subscription Revenue ~$595 million Vault Subscription Revenue ~$577 million FY 2021 Guidance Crossix Subscription Revenue $78-80 million Non-G
Slide 19: Q4'21 Guidance
Guidance Total Revenue $378-380 million Subscription Revenue ~$315 million Q4’21 Guidance Services Revenue Non-GAAP Operating Income $63-65 million $136-138 million Non-GAAP Fully Diluted Net Income per Share $0.67-0.68 Calculated Billings ~$640 million Guidance issued on December 1, 2020. We are no
Slide 20: FY 2022 Initial Guidance
Guidance FY 2022 Total Revenue $1,700-$1,720 million Initial Guidance Subscription Revenue $1,390-$1,400 million Non-GAAP Operating Margin ~37% Guidance issued on December 1, 2020. We are not able, at this time, to provide GAAP targets for operating income for the fiscal year ending January 31, 2022
Slide 21: Appendix
V Appendix
Slide 22: 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 23: Reconciliation of GAAP to non-GAAP Measures
Reconciliation of GAAP to non-GAAP Measures FY'17 FY'18 FY'19 FY'20 Gross margin on total revenues on a GAAP basis 68.5% 69.4% 71.6% 72.5% Stock-based compensation expense 1.3 1.4 1.4 1.8 Amortization of purchased intangibles 0.8 0.6 0.3 0.4 Deferred compensation associated with Zinc Ahead acquisiti
Slide 24: Reconciliation of GAAP to non-GAAP Measures
Reconciliation of GAAP to non-GAAP Measures FY'17 FY'18 FY'19 FY'20 Operating income on a GAAP basis $ 120.7 $ 157.9 $ 222.9 $ 286.2 Stock-based compensation expense 40.8 54.0 76.4 115.9 Amortization of purchased intangibles 8.2 7.8 7.0 10.1 Deferred compensation associated with Zinc Ahead acquisiti
Slide 25: Reconciliation of GAAP to non-GAAP Measures
Reconciliation of GAAP to non-GAAP Measures Q3 FY'20 Q4 FY'20 Q1 FY'21 Q2 FY'21 Q3 FY'21 Gross margin on total revenues on a GAAP basis 73.9 % 69.7 % 71.9 % 72.5 % 72.7 % Stock-based compensation expense 1.9 % 2.0 % 1.8 % 2.5 % 2.3 % Amortization of purchased intangibles 0.3 % 0.7 % 0.5 % 0.4 % 0.3