Slide 1: Q2'23 Quarterly Results
Q2’23 Quarterly Results August 31, 2022
Slide 2: Safe Harbor and Other Information
Safe Harbor and Other Information This presentation and associated commentary contain forward-looking statements regarding Veeva’s expected future performance and, in particular, includes guidance provided as of August 31, 2022 about Veeva’s expected future financial results. Estimating guidance acc
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, non-GAAP operating
Slide 4: Total Revenue – Annual
Total Revenue – Annual $million $2,500 Subscription Revenue Services Revenue 2,140-2,145 $2,000 1,851 415-420 1,465 367 $1,500 1,104 286 $1,000 862 208 ~ 1,725 168 1,484 $500 1,179 896 694 $0 FY 2019 FY 2020 1 FY 2021 1 FY 2022 FY 2023 Guidance 2 Y/Y Growth Total 25% 28%1 33%1 26% ~16%2 % Mix Commer
Slide 5: Total Revenue – Quarterly
Total Revenue – Quarterly $million Subscription Revenue Services Revenue 534 545-547 505 476 485 $500 456 106-108 106 90 102 89 95 $400 $300 429 ~ 439 $200 381 396 403 366 $100 $0 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Guidance 1 Y/Y Growth Total 29% 26% 22% 16% 17% ~15%1 % Mix Commercial Solutions 56%
Slide 6: Subscription Revenue – Annual
Subscription Revenue – Annual $million $2,000 R&D Solutions Commercial Solutions $1,800 ~ 1,725 $1,600 1,484 $1,400 1,179 ~ 938 $1,200 $1,000 896 876 $800 694 745 $600 594 $400 494 ~ 787 608 $200 435 200 303 $0 FY 2019 FY 2020 1 FY 2021 1 FY 2022 FY 2023 Guidance2 Y/Y Growth Total Subscription 24% 2
Slide 7: Subscription Revenue – Quarterly
$million Subscription Revenue – Quarterly $450 R&D Solutions Commercial Solutions 429 396 403 $400 381 366 $350 $300 236 227 228 218 223 $250 ~ 439 $200 $150 $100 192 158 168 175 148 $50 $0 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Guidance 1 Y/Y Growth Total Subscription 29% 26% 23% 18% 17% ~15%1 Commerc
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% 75.2% 83.8% 85.5% 85.2% 85.4% 29.8% 31.3% 34.0% 28.1% 1 FY 2019 FY 2020 1 FY 2021 FY 2022 Fiscal Year Ending January 31 A reconciliation of GAAP to non-GAAP measures is set forth in th
Slide 9: Non-GAAP Gross Margin – Quarterly
Non-GAAP Gross Margin – Quarterly Subscription Gross Margin Services Gross Margin Total Gross Margin 75.8% 75.3% 74.5% 74.8% 74.7% 85.9% 84.9% 85.4% 86.0% 85.7% 34.4% 36.9% 31.3% 30.2% 26.6% Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Fiscal Year Ending January 31 A reconciliation of GAAP to non-GAAP measures is
Slide 10: Non-GAAP Operating Income – Annual
Non-GAAP Operating Income – Annual $million $900 $800 $700 $600 $500 $400 820 759 $300 583 $200 412 307 $100 $0 1 1 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 Guidance 2 Non-GAAP 35.6% 37.3%1 39.8% 41.0% ~38%2 Operating Margin Fiscal Year Ending January 31 A reconciliation of GAAP to non-GAAP measures
Slide 11: Non-GAAP Operating Income – Quarterly
Non-GAAP Operating Income – Quarterly $million $250 $200 $150 $100 199 200 202 209-211 192 186 $50 $0 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Guidance1 Non-GAAP 42.1% 41.9% 38.4% 39.5% 37.8% ~38%1 Operating Margin Fiscal Year Ending January 31 A reconciliation of GAAP to non-GAAP measures is set forth i
Slide 12: Operating Cash Flow – Annual
Operating Cash Flow – Annual $million Non-GAAP Operating Cash Flow (excl ETB) Excess Tax Benefit (ETB) $800 764 56 $700 $600 551 $500 81 437 $400 50 311 708 ~ 740 $300 46 471 $200 387 265 $100 $0 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 Non-GAAP Guidance 1 Non-GAAP 31% 35% 32% 38% ~34%1 OCF Margin Fi
Slide 13: Operating Cash Flow – Quarterly
Operating Cash Flow – Quarterly $million Non-GAAP Operating Cash Flow (excl ETB & RDT) Excess Tax Benefit (ETB) R&D Tax (RDT) 478 481 17 3 $450 $350 $250 461 478 $150 119 93 113 95 18 2 10 17 68 54 22 129 $50 101 103 11 78 47 43 (38) $(50) Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Fiscal Year
Slide 14: Calculated Billings – Annual
Calculated Billings – Annual $million $2,000 $1,500 ~ 2,270 $1,000 1,950 1,599 1,193 $500 947 $0 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 Guidance1 Y/Y Growth 27% 26% 34% 22% ~16%1 Fiscal Year Ending January 31 Calculated billings is defined in the Appendix 1 Guidance issued on August 31, 2022. Our F
Slide 15: Calculated Billings – Quarterly
Calculated Billings – Quarterly $million $900 $800 $700 $600 $500 $400 804 688 $300 499 478 $200 421 406 ~ 365 319 271 $100 $0 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Guidance 1 Fiscal Year Ending January 31 Calculated billings is defined in the Appendix. There are numerous factors tha
Slide 16: Cash, Cash Equivalents, and ST Investments – Quarterly
Cash, Cash Equivalents, and ST Investments – Quarterly $million $3,500 $3,000 $2,500 $2,000 $1,500 2,919 2,839 2,264 2,351 2,376 $1,000 $500 $0 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Fiscal Year Ending January 31 Copyright © Veeva Systems 2022 16
Slide 17: Employee Headcount – Quarterly
Employee Headcount – Quarterly 7,000 6,000 5,000 4,000 6,020 5,482 5,685 3,000 4,926 5,182 2,000 1,000 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Quarterly Net 236 256 300 203 335 Additions Y/Y Growth 22% 20% 22% 21% 22% Fiscal Year Ending January 31 Copyright © Veeva Systems 2022 17
Slide 18: FY 2023 Guidance
Guidance Total Revenue $2,140-2,145 million Subscription Revenue ~$1,725 million Commercial Solutions Subscription Revenue ~$938 million R&D Solutions Subscription Revenue ~$787 million Services Revenue $415-420 million FY 2023 Guidance Non-GAAP Operating Income ~$820 million Non-GAAP Fully Diluted
Slide 19: Q3'23 Guidance
Guidance Total Revenue $545-547 million Subscription Revenue ~$439 million Q3’23 Guidance Services Revenue Non-GAAP Operating Income $106-108 million $209-211 million Non-GAAP Fully Diluted Net Income per Share $1.07-1.08 Calculated Billings ~$365 million Guidance issued on August 31, 2022. Our Q3’2
Slide 20: Appendix
V Appendix
Slide 21: Current Revenue Alignment
Current Revenue Alignment FY2019 FY20201 Q1'FY21 Q2'FY21 Q3'FY21 Q4'FY21 FY20211 Q1'FY22 Q2'FY22 Q3'FY22 Q4'FY22 FY2022 Q1'FY23 Q2'FY23 Commercial Solutions 494.3 593.6 176.6 180.9 189.9 197.5 744.9 207.8 218.1 223.2 227.3 876.5 227.7 236.4 R&D Solutions 200.1 302.7 93.7 102.6 113.1 125.3 434.6 133.
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. • R&D Tax (RDT) – The direct cash payments associated with tax legislation that requires the capita
Slide 23: Reconciliation of GAAP to non-GAAP Measures
Reconciliation of GAAP to non-GAAP Measures FY'19 FY'20 FY'21 FY'22 Gross margin on total revenues on a GAAP basis 71.6 % 72.5 % 72.1 % 72.8 % Stock-based compensation expense 1.4 % 1.8 % 2.2 % 2.2 % Amortization of purchased intangibles 0.3 % 0.4 % 0.4 % 0.2 % Gross margin on total revenues on a no
Slide 24: Reconciliation of GAAP to non-GAAP Measures
Reconciliation of GAAP to non-GAAP Measures FY'19 FY'20 FY'21 FY'22 Operating income on a GAAP basis $ 222.9 $ 286.2 $ 377.8 $ 505.5 Stock-based compensation expense 76.4 115.9 185.0 234.6 Amortization of purchased intangibles 7.0 10.1 20.0 18.5 Deferred compensation associated with Zinc Ahead acqui
Slide 25: Reconciliation of GAAP to non-GAAP Measures
Reconciliation of GAAP to non-GAAP Measures Q2 FY'22 Q3 FY'22 Q4 FY'22 Q1 FY'23 Q2 FY'23 Gross margin on total revenues on a GAAP basis 73.2 % 72.8 % 72.0 % 72.4 % 71.6 % Stock-based compensation expense 2.4 % 2.3 % 2.2 % 2.2 % 2.9 % Amortization of purchased intangibles 0.2 % 0.2 % 0.3 % 0.2 % 0.2
Slide 26: Reconciliation of GAAP to non-GAAP Measures
Reconciliation of GAAP to non-GAAP Measures FY'19 FY'20 FY'21 FY'22 Operating cash flow on a GAAP basis $ 310.8 $ 437.4 $ 551.2 $ 764.5 Excess Tax Benefit (ETB) (45.8) (50.4) (80.7) (56.2) R&D Tax (RDT) - - - - Operating cash flow on a non-GAAP basis $ 265.0 $ 387.0 $ 470.6 $ 708.3 FY'19 FY'20 FY'21
Slide 27: Reconciliation of GAAP to non-GAAP Measures
Reconciliation of GAAP to non-GAAP Measures Q3 FY'21 Q4 FY'21 Q1 FY'22 Q2 FY'22 Q3 FY'22 Q4 FY'22 Q1 FY'23 Q2 FY'23 Operating cash flow on a GAAP basis $ 95.4 $ 68.4 $ 478.4 $ 119.1 $ 113.0 $ 54.1 $ 481.0 $ 93.4 Excess Tax Benefit (ETB) (17.3) (21.6) (17.5) (17.6) (10.4) (10.7) (3.0) (2.1) R&D Tax (