Veeva Systems Inc. · NYSE:VEEV

Veeva Systems — Investor Day (October 2021)

76 slides from Veeva Systems's investor day presentation, Oct 28, 2021

Slide 1: Analyst and Investor Day
Analyst and Investor Day October 28, 2021
Slide 2: 2021 Veeva Analyst & Investor Day
2021 Veeva Analyst & Investor Day THURSDAY OCTOBER 28 Veeva Vision Peter Gassner, Founder & CEO Veeva Commercial Cloud Paul Shawah, EVP – Commercial Cloud Strategy Veeva Development Cloud Jim Reilly, VP – Development Cloud Strategy Customer Success Alessandro De Luca, Merck Financial Update Brent Bo
Slide 3: Safe Harbor and Other Information
Safe Harbor and Other Information This presentation and associated commentary contain forward-looking statements, including statements regarding Veeva’s future performance, financial outlook, and guidance and the assumptions underlying those statements, market growth, market size and opportunity, th
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
Slide 7: Consistent Execution with a Long-term View
Consistent Execution with a Long-term View 2015 Goal: $1B 2019 Goal: $3B in 2020 in 2025 Looking Ahead to 2030 $1B Tracking Ahead in 2019 of Plan Copyright © Veeva Systems 2021
Slide 17: Paul Shawah
Paul Shawah EVP, Commercial Cloud Strategy
Slide 20: Software, Data, People
Software Data People DATA ANALYTICS CONTENT ENGAGEMENT OpenData Nitro PromoMats CRM Suite Customer Reference Data Science Platform Commercial Content Multichannel Engagement Data Cloud Crossix MedComms Digital Events Patient • Prescriber • Sales Marketing Optimization Medical Content Events Services
Slide 22: Moving to Digital with Speed
Moving to Digital with Speed MILLION MILLION MILLION OPENED EMAILS ENGAGE MEETINGS MINUTES Figures reflect aggregate data from January 1, 2020 – September 30, 2021 Copyright © Veeva Systems 2021
Slide 25: Faster Content at Scale
Faster Content at Scale Vision to Increase Speed to Market by 75% Strategize Create and and Plan Collaborate Speed Modular Content Scale Insights and Optimization Review and Approve Operating Model Intelligence Data-Driven Content Publish Store and Manage Copyright © Veeva Systems 2021
Slide 26: Modern Approach to Data and Analytics
Modern Approach to Data and Analytics
Slide 29: DEMO
DEMO
Slide 30: Veeva Data Cloud
Veeva Data Cloud Patient Data Available today Prescriber Data January 2022 Sales Data January 2022 Big Market Opportunity • In Need of Innovation • Taking a Modern Approach Copyright © Veeva Systems 2021
Slide 32: Jim Reilly
Jim Reilly Vice President, Development Cloud Strategy
Slide 34: Operating System for the Full Lifecycle of Product Operations
Operating System for the Full Lifecycle of Product Operations Clinical Data Clinical Regulatory Quality Drug Safety Management Operations Copyright © Veeva Systems 2021
Slide 35: Clinical
Clinical
Slide 36: Clinical Suite: SSU, eTMF, CTMS, Payments, EDC
SSU eTMF CTMS Payments EDC Coder CDB Start up & Content & Trial & Site Site Budgets & Data Capture Clinical Cleaning and Feasibility Inspections Management Payments & Verification Coding Formatting Copyright © Veeva Systems 2021
Slide 37: 350+ Customers, 16 Top 20 eTMF
SPEEDING EXECUTION INNOVATION GROWING ADOPTION 350+ Customers 16 Top 20 eTMF Streamlining Systems & Processes TMF Bot 110 CTMS Customers All customer counts as of July 31, 2021 unless otherwise noted Copyright © Veeva Systems 2021
Slide 38: Clinical Trials Momentum
SPEEDING TRIALS INNOVATION MOMENTUM Clinical Trials 50% faster study builds Clinical Database 5 of 6 Top CROs as Partners No migration amendments Copyright © Veeva Systems 2021
Slide 39: Regulatory
Regulatory
Slide 40: Providing a Single Source for Regulatory Content and Data
Providing a Single Source for Regulatory Content and Data Registrations Submissions Submissions Publishing Submissions Archive Copyright © Veeva Systems 2021
Slide 41: 250+ Customers, 13 Top 20
SINGLE GLOBAL SOLUTION INNOVATION ACCELERATING ADOPTION 250+ Customers 13 Top 20 Publishing 25 Regulatory Transformation Publishing Collaborative Authoring Customers Copyright © Veeva Systems 2021
Slide 42: Quality
Quality
Slide 43: Unified Quality Management
Unified Quality Management Process Content Training Lab QualityDocs QMS Training Station Manager LIMS Product Surveillance LearnGxP Validation Management Copyright © Veeva Systems 2021
Slide 44: Quality Momentum: 15 Top 20 Customers
MODERNIZING QUALITY INNOVATION STRONG MOMENTUM 15 Top 20 100+ Training Customers Unified Compliance with Process Navigator 175+ QC LIMS and Validation QMS Management Quality Recurrence Check Customers Copyright © Veeva Systems 2021
Slide 45: Safety
Safety
Slide 48: Digital Trials
Digital Trials
Slide 49: Clinical Trials in Need of Innovation
Clinical Trials in Need of Innovation SPONSORS SITES PATIENTS Want to be more Overburdened—need to Need better ways to efficient simplify collaboration participate and engage Back Office Front Office Copyright © Veeva Systems 2021
Slide 55: Alessandro De Luca
Alessandro De Luca Group CIO, Head of Information Technology
Slide 56: Brent Bowman
Brent Bowman CFO
Slide 58: Consistent History of Strong Growth and Profitability
Consistent History of Strong Growth and Profitability $1.835B Revenue Non-GAAP Operating Income1 $1.47B $1.10B $862M $691M $730M $551M $583M $409M $412M $307M $220M $173M $108M FY16 FY172 FY182 FY19 FY20 FY21 FY22E3 Fiscal Year Ending January 31 ¹ A reconciliation of GAAP to non-GAAP measures is set
Slide 59: Revenue Realignment
Revenue Realignment PREVIOUS CURRENT Vault Commercial R&D Commercial • Clinical • CRM Suite • Clinical • CRM Suite • Regulatory • Data & Analytics • Regulatory • Data & Analytics • Quality • Quality • Vault Commercial • Safety • Safety • CP&C • CP&C • Vault Commercial Copyright © Veeva Systems 2021
Slide 60: Subscription Revenue Realignment
Subscription Revenue Realignment FY 2022 Subscription Revenue Guidance $1.475B PREVIOUS CURRENT Vault Commercial R&D Commercial $865M $775M $165M $700M $165M $610M FY22E Vault Commercial Revenue $165M Copyright © Veeva Systems 2021
Slide 61: Tracking Ahead of 2025 Targets
Tracking Ahead of 2025 Targets Metric CY 2025 Targets Total Revenue Run Rate $3B+ Commercial ~$1.2B R&D ~$1.8B Non-GAAP Op Margin 35%+ 1 We are not able, at this time, to provide GAAP targets for operating margin 2025 because of the difficulty of estimating certain items excluded from non-GAAP opera
Slide 62: Veeva's Large and Growing Market Opportunity
Veeva’s Large and Growing Market Opportunity $13B+ TAM $3B Data & Analytics Commercial $6B+ $3B Commercial Software $1B CP&C $3B Clinical R&D $7B+ $3B Quality, Regulatory & Safety *CP&C includes Veeva’s CPG, Cosmetics, and Chemicals businesses Copyright © Veeva Systems 2021
Slide 63: Significant Room to Grow
Significant Room to Grow $13B+ TAM $1.8B z FY22E Revenue1 Fiscal Year Ending January 31 1 Based on the high end of our guidance issued September 1, 2021 Copyright © Veeva Systems 2021
Slide 64: Innovation Engine Fuels Long-term Growth
Innovation Engine Fuels Long-term Growth Deep pipeline of products on the path to market leadership Approved Email CRM CLM MedComms PromoMats Engage CDMS eTMF Digital Trials QualityDocs LearnGxP Submissions Align Crossix Link Registrations CTMS Nitro Study Startup Events Publishing Subs Archive Netw
Slide 65: Consistent Momentum in R&D
Consistent Momentum in R&D Avg. Products 1.71 2.07 2.25 2.35 2.61 2.71 Per Customer: 758 664 538 431 423 389 346 317 281 238 194 223 168 190 125 95 76 107 133 45 47 67 3 18 FY17 FY18 FY19 FY20 FY21 Q2FY22 Customers with: 5 or More Products 3-4 Products 2 Products or Fewer Copyright © Veeva Systems 2
Slide 66: Expanding Our Commercial Leadership
Expanding Our Commercial Leadership Avg. Products 2.78 2.93 3.25 3.51 3.95 4.02 Per Customer: 617 572 523 454 417 316 363 297 306 277 284 260 208 194 167 150 97 122 81 93 6 27 50 11 FY17 FY18 FY19 FY20 FY21 Q2FY22 Customers with: 8 or More Products 4-7 Products 3 Products or Fewer Copyright © Veeva
Slide 67: Durable Operating Model
Durable Operating Model FY182 FY19 FY20 FY21 FY223 Non-GAAP Gross Margin1 71% 73% 75% 75% ~75% S&M % of Revenue (Non-GAAP) 1 16% 15% 14% 12% ~12% R&D % of Revenue (Non-GAAP) 1 17% 16% 16% 16% ~16% G&A % of Revenue (Non-GAAP) 1 7% 7% 8% 7% 7% Non-GAAP Operating Margin1 32% 36% 37% 40% ~40%3 Fiscal Ye
Slide 68: Investing for Growth
Investing for Growth CY2021E1 Margin Drivers CY2025 Targets1 GROSS MARGIN Revenue mix and growth Data investments 40% Additional services OP MARGIN 35%+ Non-GAAP Op Margin Non-GAAP Op Margin Operating leverage/scale Travel and entertainment Growth investments We are not able, at this time, to provid
Slide 70: Appendix
Appendix
Slide 71: 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 72: Reconciliation of GAAP to Non-GAAP Measures
Reconciliation of GAAP to Non-GAAP Measures in millions FY'16 FY'171 FY'181 FY'19 FY'20 FY'21 Operating income on a GAAP basis $ 78.6 $ 120.7 $ 157.9 $ 222.9 $ 286.2 $ 377.8 Stock-based compensation expense 24.3 40.8 54.0 76.4 115.9 185.0 Amortization of purchased intangibles 4.3 8.2 7.8 7.0 10.1 20
Slide 73: Reconciliation of GAAP to Non-GAAP Measures
Reconciliation of GAAP to Non-GAAP Measures FY'181 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 Gross margin on total revenues on a non-GAAP basis 71.4%
Slide 74: FY 2022 Guidance
FY 2022 Guidance Guidance Total Revenue $1,830-1,835 million Subscription Revenue ~$1,475 million Commercial Subscription Revenue1 ~$865 million R&D Subscription Revenue1 ~$610 million Services Revenue $355-360 million Non-GAAP Operating Income ~$730 million Non-GAAP Fully Diluted Net Income per Sha
Slide 75: Realigned Historical Revenue
Realigned Historical Revenue FY20201 Q1'FY21 Q2'FY21 Q3'FY21 Q4'FY21 FY20211 Q1'FY22 Q2'FY22 Commercial Solutions 593.6 176.6 180.9 189.9 197.5 744.9 207.8 218.1 R&D Solutions 302.7 93.7 102.6 113.1 125.3 434.6 133.3 148.3 Total Subscription Services 896.3 270.2 283.5 302.9 322.8 1,179.5 341.1 366.4
Slide 76: Veeva Product Area Definitions
Veeva CRM Suite Vault Clinical Suite Vault Quality Suite • Veeva CRM CDMS • Vault QualityDocs • Veeva CLM • Vault EDC • Vault QMS • Veeva CRM Approved Email • Veeva CDB • Vault Station Manager Veeva • Veeva CRM Events Management Clinical Operations • Vault Training • Veeva CRM Align • Vault CTMS • V

Veeva Systems — Investor Day (October 2021) on 6ix

Veeva Systems — Investor Day (October 2021)

Slide 1: Analyst and Investor Day

Slide 2: 2021 Veeva Analyst & Investor Day

Slide 3: Safe Harbor and Other Information

Slide 4: Peter Gassner

Slide 5: Vision and Values

Slide 6: Veeva as a Public Benefit Corporation

Slide 7: Consistent Execution with a Long-term View

Slide 8: Veeva 2025: $3 Billion Room to Grow

Slide 9: Customer Segments

Slide 10: Industry Cloud for Life Sciences

Slide 11: Big New Markets

Slide 12: Essential, Appreciated

Slide 13: Life Sciences Industry is Large and Growing

Slide 14: Strong Innovation Engine Fuels Growth

Slide 15: Proven Operating Model

Slide 16: Multiple Drivers of Long-Term Growth

Slide 17: Paul Shawah

Slide 18: Industry Context

Slide 19: Our Focus

Slide 20: Software, Data, People

Slide 21: Veeva CRM is the Foundation

Slide 22: Moving to Digital with Speed

Slide 23: 3X More Engagement with Strong Relationships

Slide 24: 3X and 2X Engagement Impact

Slide 25: Faster Content at Scale

Slide 26: Modern Approach to Data and Analytics

Slide 27: Modern Approach to Data and Analytics

Slide 28: Unique and Connected Data

Slide 29: DEMO

Slide 30: Veeva Data Cloud

Slide 31: Durable Revenue, Steady Growth

Slide 32: Jim Reilly

Slide 33: Veeva Development Cloud Vision

Slide 34: Operating System for the Full Lifecycle of Product Operations

Slide 35: Clinical

Slide 36: Clinical Suite: SSU, eTMF, CTMS, Payments, EDC

Slide 37: 350+ Customers, 16 Top 20 eTMF

Slide 38: Clinical Trials Momentum

Slide 39: Regulatory

Slide 40: Providing a Single Source for Regulatory Content and Data

Slide 41: 250+ Customers, 13 Top 20

Slide 42: Quality

Slide 43: Unified Quality Management

Slide 44: Quality Momentum: 15 Top 20 Customers

Slide 45: Safety

Slide 46: Comprehensive Safety Management

Slide 47: 50+ Safety Suite Customers

Slide 48: Digital Trials

Slide 49: Clinical Trials in Need of Innovation

Slide 50: Fragmented Ecosystem

Slide 51: Veeva's Vision for Digital Trials

Slide 52: Better Trials for All Through a Connected Ecosystem

Slide 53: Better Trials for All Through a Connected Ecosystem

Slide 54: Strategic Partner Innovation Engine

Slide 55: Alessandro De Luca

Slide 56: Brent Bowman

Slide 57: Highlights

Slide 58: Consistent History of Strong Growth and Profitability

Slide 59: Revenue Realignment

Slide 60: Subscription Revenue Realignment

Slide 61: Tracking Ahead of 2025 Targets

Slide 62: Veeva's Large and Growing Market Opportunity

Slide 63: Significant Room to Grow

Slide 64: Innovation Engine Fuels Long-term Growth

Slide 65: Consistent Momentum in R&D

Slide 66: Expanding Our Commercial Leadership

Slide 67: Durable Operating Model

Slide 68: Investing for Growth

Slide 69: Key Takeaways

Slide 70: Appendix

Slide 71: Statement Regarding Use of Non-GAAP Financial Measures

Slide 72: Reconciliation of GAAP to Non-GAAP Measures

Slide 73: Reconciliation of GAAP to Non-GAAP Measures

Slide 74: FY 2022 Guidance

Slide 75: Realigned Historical Revenue

Slide 76: Veeva Product Area Definitions