Veeva Systems Inc. · NYSE:VEEV
Veeva Systems — 42nd Annual J.P. Morgan Healthcare Conference (January 2024)
25 slides from Veeva Systems's conference presentation, Jan 10, 2024
Slide 1: J.P. Morgan Healthcare Conference
Peter Gassner Founder & CEO J.P. Morgan Healthcare Conference January 10, 2024
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, market size and opportunity, and financial outlook, including, in particular, guidance provided as of December 6, 2023 about Veeva’s expecte
Slide 3: 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 Copyright © Veeva Systems 2024
Slide 4: A Public Benefit Corporation
A Public Benefit Corporation Building a Lasting Company Customers | Employees | Society | Shareholders Attracting the Deepening customer Right Talent Relationships Copyright © Veeva Systems 2024
Slide 5: A Few Facts About Veeva
A Few Facts About Veeva • Industry Cloud Innovator • Founded in 2007 • 7,000+ Employees • 1,400+ Customers • $2.4B+ Revenue Run Rate • 14% y/y Revenue Growth • 39% non-GAAP Operating Margin Based on Q3’24 results. A reconciliation of GAAP to non-GAAP measures is set forth in the Appendix. Revenue gr
Slide 6: Highlights
Highlights Large Market Opportunity Product Excellence Proven Operating Model Long Runway of Growth Copyright © Veeva Systems 2023 Copyright © Veeva Systems 2024
Slide 7: Industry Cloud for Life Sciences
Industry Cloud for Life Sciences SOFTWARE • DATA • SERVICES Veeva Veeva Veeva Development Commercial Data Cloud Cloud Cloud Business Consulting Copyright © Veeva Systems 2023 Copyright © Veeva Systems 2024
Slide 8: Technology Foundation for Product Development
Technology Foundation for Product Development Clinical Clinical Regulatory Drug Quality Operations Data Safety eTMF EDC Registrations Safety QualityDocs CTMS CDB Submissions SafetyDocs QMS Study Startup RTSM Archive Workbench Training Payments ePRO Publishing Signal Validation Site Connect eClinRO L
Slide 9: Technology Foundation for Commercial Innovation
Technology Foundation for Commercial Innovation CRM Suite Medical Marketing Crossix Patient CRM MedComms PromoMats Consumer Patient CRM Email MedInquiry Marketing HCP Engage Automation Audiences Events Service Align VAULT PLATFORM VAULT PLATFORM VAULT PLATFORM Service Center, Marketing Automation, a
Slide 10: The Modern Data Platform for Life Sciences
The Modern Data Platform for Life Sciences OpenData Link Compass Pulse Reference Data Deep Data Transaction Data Pulse Data Commercial Key People Patient Commercial Clinical Key Accounts Prescriber Clinical Medical Insights National Scientific Awareness Workflow Clinical Common Data Architecture Ope
Slide 11: Long Runway Ahead in Life Sciences
Long Runway Ahead in Life Sciences Product Suite Maturity and Market Share Veeva Product Quadrant High Regulatory Product Maturity Market Share High Copyright © Veeva Systems 2023 Copyright © Veeva Systems 2024
Slide 12: Industry-Specific Software and Data
Industry-Specific Software and Data Legacy Today Vision Connected Software Disconnected Software & Data Disconnected Data Connected Software & Data SOFTWARE SOFTWARE SOFTWARE CO NNECTED S O FT WARE CO NNECTED S O FT WARE SOFTWARE DATA DATA DATA DATA DATA DATA CONNECTED D A TA Copyright © Veeva Syste
Slide 13: Becoming Essential to a Large & Growing Industry
Becoming Essential to a Large & Growing Industry $2T+ Growing at 6% CAGR Biopharma • MedTech Source: Evaluate Copyright © Veeva Systems 2023 Copyright © Veeva Systems 2024
Slide 14: Our Life Sciences Opportunity
Our Life Sciences Opportunity ~12% Penetrated FY24E Revenue $2T+ 1% Veeva Technology Solutions $20B+ TAM 6% CAGR Biopharma • MedTech Source: Evaluate and Veeva estimates TAM: Industry specific software, data, and high value services Fiscal year ending January 31, 2024. FY24 revenue based on the high
Slide 15: Our Life Sciences Opportunity
Our Life Sciences Opportunity Regulatory & Safety 10% Quality 20% Clinical 35% $20B+ Life Sciences TAM Commercial 35% FY24E Revenue ~12% Penetrated Source: Evaluate and Veeva estimates TAM: Industry specific software, data, and high value services Fiscal year ending January 31, 2024. FY24 revenue ba
Slide 16: Focused Execution in the Veeva Way
Focused Execution in the Veeva Way Innovation & Customer Product Excellence Success Values Product Operating Model Strong Growth Strategy Trust & Profitability Copyright © Veeva Systems 2023 Copyright © Veeva Systems 2024
Slide 17: Industry Cloud Operating Model
Industry Cloud Operating Model Focused Investments and Reference Selling Q3’24 Mix of Total Subscription Expenses Sales & Marketing 24% Product 64% G&A 12% Total Subscription Expense = Product expense + Sales & Marketing expense + G&A expense. Product expense = non-GAAP cost of subscription + non-GA
Slide 18: Consistent History of Strong Growth and Profitability
Consistent History of Strong Growth and Profitability $2.75B+ Revenue $2.36B Non-GAAP Operating Income1 $2.16B $1.85B Includes -$90M estimated TFC $1.47B impact $1.10B $1.0B+ $862M $830M $830M $759M $583M $412M $307M FY19 FY202 FY212 FY22 FY23 FY24E3 FY25E3 Fiscal Year Ending January 31 ¹ A reconcil
Slide 19: Consistent Execution with a Long-term View
Consistent Execution with a Long-term View Looking ahead to 2030 2019 Goal 2015 Goal $3B in 2025 $1B in 2020 $1B in Tracking about 2019 one year ahead Copyright © Veeva Systems 2023 Copyright © Veeva Systems 2024
Slide 20: Highlights
Highlights Large Market Opportunity Product Excellence Proven Operating Model Long Runway of Growth Copyright © Veeva Systems 2023 Copyright © Veeva Systems 2024
Slide 21: Appendix
Appendix
Slide 22: 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 23: Reconciliation of GAAP to Non-GAAP Measures
Reconciliation of GAAP to Non-GAAP Measures in millions Q3'24 Operating income on a GAAP basis $ 128.5 Stock-based compensation expense 101.2 Amortization of purchased intangibles 4.9 Operating income on a non-GAAP basis $ 234.6 Q3'24 Operating margin on a GAAP basis 20.8% Stock-based compensation e
Slide 24: Reconciliation of GAAP to Non-GAAP Measures
Reconciliation of GAAP to Non-GAAP Measures in millions Q3'24 Cost of subscription services revenue on a GAAP basis $ 74.4 Stock-based compensation expense (1.6) Amortization of purchased intangibles (1.1) Cost of subscription services revenue on a non-GAAP basis $ 71.7 Q3'24 Research and developmen
Slide 25: Reconciliation of GAAP to Non-GAAP Measures
Reconciliation of GAAP to Non-GAAP Measures in millions FY'19 FY'20 FY'21 FY'22 FY'23 Operating income on a GAAP basis $ 222.9 $ 286.2 $ 377.8 $ 505.5 $ 459.1 Stock-based compensation expense 76.4 115.9 185.0 234.6 351.9 Amortization of purchased intangibles 7.0 10.1 20.0 18.5 19.5 Deferred compensa
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