Veeva Systems Inc. · NYSE:VEEV
Veeva Systems — Q1 FY2021 Earnings Presentation
24 slides from Veeva Systems's earnings presentation, May 28, 2020
Slide 1: Q1'21 Quarterly Results
Q1’21 Quarterly Results May 28, 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 1,380-1,395 $1,400 245-260 $1,200 1,104 $1,000 862 208 $800 690 168 $600 551 131 ~1,135 110 896 $400 695 559 $200 441 $0 FY 2017 FY 2018 FY 2019 FY 20201 FY 2021 Guidance2 Y/Y Growth Total 35% 25% 25% 28%1 25-26%2 % Mix Com
Slide 5: Total Revenue – Quarterly
Total Revenue – Quarterly $million $400 Subscription Revenue Services Revenue $350 337 339-341 312 $300 281 67 63-64 267 57 245 $250 50 54 47 $200 $150 254 270 276-277 $100 217 227 198 $50 $0 1 2 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Guidance Y/Y Growth Total 25% 27% 25% 34%1 38% 27-28%2 % Mix Commerc
Slide 6: Subscription Revenue – Annual
Subscription Revenue – Annual $million $1,200 Vault Commercial Cloud ~1,135 $1,000 897 ~580 $800 694 469 $600 560 441 395 $400 357 308 ~555 $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 ~27%2 Commercial Cloud 19% 16% 11% 19%
Slide 7: Subscription Revenue – Quarterly
Subscription Revenue – Quarterly $million $300 Vault Commercial Cloud 270 254 $250 227 217 198 $200 142 135 112 115 $150 106 276-277 $100 112 119 128 $50 92 105 $0 1 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Guidance 2 Y/Y Growth Total Subscription 27% 28% 27% 33%1 36% ~27%2 Commercial Cloud 14% 15% 15% 3
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 74.9% 75.8% 76.1% 74.2% 72.4% 85.2% 86.1% 86.5% 84.4% 85.0% 31.1% 30.9% 32.5% 30.5% 19.1% 1 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 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 $300 500-510 $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 35.8-37.0%2 Operating Margin Fiscal Year Ending January 31 A reconciliation of GAAP to non-GAAP measures is set
Slide 11: Non-GAAP Operating Income – Quarterly
Non-GAAP Operating Income – Quarterly $million $140 $120 $100 $80 130 126-128 $60 112 104 103 94 $40 $20 $0 Q1'20 Q2'20 Q3'20 Q4'20 1 Q1'21 Q2'21 Guidance2 Non-GAAP 38.2% 38.9% 39.7% 33.2%1 38.5% 37.0-37.8%2 Operating Margin Fiscal Year Ending January 31 A reconciliation of GAAP to non-GAAP measures
Slide 12: Operating Cash Flow – Annual
Operating Cash Flow – Annual $million Operating Cash Flow excl ETB Excess Tax Benefit (ETB) $500 $450 437 $400 50 $350 311 $300 46 $250 233 ~450 $200 46 387 $150 265 $100 187 $50 $0 FY 2018 FY 2019 FY 2020 FY 2021 Non-GAAP Guidance1 OCF Margin 27% 31% 35% ~32%1 (excl ETB) Fiscal Year Ending January
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 $100 87 17 9 62 $50 42 9 39 78 32 84 12 11 15 53 30 17 28 $0 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Fiscal Year Ending January 31 Excess tax benefit i
Slide 14: Calculated Billings – Annual
Calculated Billings – Annual $million $1,600 $1,400 $1,200 $1,000 $800 1,465-1,480 $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% ~23%1 Fiscal Year Ending January 31 Calculated billings is defined in the Appendix. 1 Guidance issued on
Slide 15: Calculated Billings – Quarterly
Calculated Billings – Quarterly $million $600 $500 $400 $300 519 $200 394 334 ~280 247 234 $100 193 182 157 $0 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Guidance1 Fiscal Year Ending January 31 Calculated billings is defined in the Appendix. There are numerous factors that make year-over-
Slide 16: Cash, Cash Equivalents, and ST Investments – Quarterly
Cash, Cash Equivalents, and ST Investments – Quarterly $million $1,600 $1,400 $1,200 $1,000 $800 1,432 1,495 1,330 1,381 $600 1,087 $400 $200 $0 Q1'20 Q2'20 Q3'20 Q4'201 Q1'21 Fiscal Year Ending January 31 1 We acquired Crossix and Physicians World for $427.2M in cash and $41.4M in cash, respectivel
Slide 17: Employee Headcount – Quarterly
Employee Headcount – Quarterly 4,000 3,500 3,000 2,500 3,667 3,501 2,000 3,012 2,827 2,645 1,500 1,000 1 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Quarterly Net 92 182 185 4891 166 Additions Y/Y Growth 18% 19% 21% 37%1 39% Fiscal Year Ending January 31 1 Reflects 384 employees added from the Crossix and Physici
Slide 18: FY 2021 Guidance
Guidance Total Revenue $1,380-$1,395 million Crossix and Physicians World Total Revenue $90-95 million Subscription Revenue ~$1,135 million FY 2021 Guidance Commercial Cloud Subscription Revenue Vault Subscription Revenue ~$580 million ~$555 million Non-GAAP Operating Income $500-510 million Non-GAA
Slide 19: Q2'21 Guidance
Guidance Total Revenue $339-341 million Subscription Revenue $276-277 million Q2’21 Guidance Services Revenue Non-GAAP Operating Income $63-64 million $126-128 million Non-GAAP Fully Diluted Net Income per Share $0.63-0.64 Calculated Billings ~$280 million Guidance issued on May 28, 2020. We are not
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'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 23: 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 24: Reconciliation of GAAP to non-GAAP Measures
Reconciliation of GAAP to non-GAAP Measures Q1 FY'20 Q2 FY'20 Q3 FY'20 Q4 FY'20 Q1 FY'21 Gross margin on total revenues on a GAAP basis 73.2% 73.7% 73.9% 69.7% 71.9% Stock-based compensation expense 1.4 1.9 1.9 2.0 1.8 Amortization of purchased intangibles 0.3 0.3 0.3 0.7 0.5 Gross margin on total r