Veeva Systems Inc. · NYSE:VEEV
Veeva Systems — Q2 FY2022 Earnings Presentation
24 slides from Veeva Systems's earnings presentation, Sep 1, 2021
Slide 1: Q2'22 Quarterly Results
Q2’22 Quarterly Results September 1, 2021
Slide 2: 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, the benefits from the use of Ve
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 $2,000 Subscription Revenue Services Revenue 1,830-1,835 $1,800 $1,600 1,465 355-360 $1,400 286 $1,200 1,104 $1,000 862 208 $800 691 168 ~ 1,475 $600 131 1,179 $400 896 694 559 $200 $0 FY 2018 FY 2019 FY 2020 1 FY 2021 1 FY 2022 Guidance 2 Y/Y Growth Total 25% 25% 28%
Slide 5: Total Revenue – Quarterly
Total Revenue – Quarterly $million $500 Subscription Revenue Services Revenue 464-466 456 434 397 88-90 $400 378 89 354 92 74 75 $300 70 $200 366 ~ 376 323 341 284 303 $100 $0 1 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Guidance Y/Y Growth Total 33% 34% 27% 29% 29% ~23%1 % Mix Commercial Cloud 48% 48% 48%
Slide 6: Subscription Revenue – Annual
Subscription Revenue – Annual $million $1,600 Vault Commercial Cloud ~ 1,475 $1,400 1,179 $1,200 ~ 700 $1,000 896 599 $800 694 559 469 $600 395 $400 356 ~ 775 580 $200 428 299 203 $0 1 FY 2018 FY 2019 FY 2020 1 FY 2021 FY 2022 Guidance2 Y/Y Growth Total Subscription 27% 24% 29%1 32%1 ~25%2 Commercia
Slide 7: Subscription Revenue – Quarterly
$million Subscription Revenue – Quarterly $400 Vault Commercial Cloud 366 341 $350 323 303 $300 284 176 $250 168 159 152 $200 145 ~ 376 $150 $100 190 163 173 139 150 $50 $0 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Guidance 1 Y/Y Growth Total Subscription 30% 34% 27% 26% 29% ~24%1 Commercial Cloud 29% 32%
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% 71.4% 83.8% 85.5% 85.2% 81.2% 29.5% 29.8% 28.1% 31.3% 1 FY 2018 FY 2019 FY 2020 FY 2021 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 75.4% 75.3% 75.4% 75.8% 73.9% 85.6% 85.7% 84.6% 85.5% 85.9% 38.0% 34.4% 34.0% 33.7% 27.2% Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 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 $800 $700 $600 $500 $400 730 $300 583 $200 412 307 $100 220 $0 FY 2018 FY 2019 FY 2020 1 FY 2021 FY 2022 Guidance 2 Non-GAAP 31.9% 35.6% 37.3%1 39.8% ~40%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 $250 $200 $150 $100 181 192 179-181 144 156 153 $50 $0 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Guidance1 Non-GAAP 40.8% 41.2% 38.6% 41.8% 42.1% ~39%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 Operating Cash Flow excl ETB Excess Tax Benefit (ETB) $700 $600 551 $500 81 437 $400 50 311 ~ 710 $300 46 233 471 $200 46 387 265 $100 188 $0 1 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Non-GAAP Guidance OCF Margin 27% 31% 35% 32% ~39%1 (excl ETB) Fiscal Year Endi
Slide 13: Operating Cash Flow – Quarterly
Operating Cash Flow – Quarterly $million Operating Cash Flow excl ETB Excess Tax Benefit (ETB) $500 478 17 $450 $400 $350 $300 282 20 $250 461 $200 $150 119 263 105 95 18 $100 22 68 62 17 9 39 22 $50 83 101 11 78 53 47 28 $0 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Fiscal Year Ending January
Slide 14: Calculated Billings – Annual
Calculated Billings – Annual $million $2,000 $1,800 $1,600 $1,400 $1,200 $1,000 ~ 1,940 $800 1,599 $600 1,193 947 $400 744 $200 $0 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Guidance1 Y/Y Growth 24% 27% 26% 34% ~21%1 Fiscal Year Ending January 31 Calculated billings is defined in the Appendix 1 Guidanc
Slide 15: Calculated Billings – Quarterly
Calculated Billings – Quarterly $million $800 $700 $600 $500 $400 688 $300 519 $200 421 406 334 305 ~ 315 271 $100 193 $0 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Guidance 1 Fiscal Year Ending January 31 Calculated billings is defined in the Appendix. There are numerous factors that mak
Slide 16: Cash, Cash Equivalents, and ST Investments – Quarterly
Cash, Cash Equivalents, and ST Investments – Quarterly $million $2,500 $2,000 $1,500 2,264 2,150 $1,000 1,590 1,664 1,495 $500 $0 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Fiscal Year Ending January 31 Copyright © Veeva Systems 2021 16
Slide 17: Employee Headcount – Quarterly
Employee Headcount – Quarterly 5,500 5,000 4,500 4,000 3,500 3,000 4,926 4,506 4,690 4,304 2,500 4,024 2,000 1,500 1,000 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Quarterly Net 357 280 202 184 236 Additions Y/Y Growth 42% 43% 29% 28% 22% Fiscal Year Ending January 31 Copyright © Veeva Systems 2021 17
Slide 18: FY 2022 Guidance
Guidance Total Revenue $1,830-1,835 million Subscription Revenue ~$1,475 million Commercial Cloud Subscription Revenue ~$700 million Vault Subscription Revenue ~$775 million Services Revenue $355-360 million FY 2022 Guidance Non-GAAP Operating Income ~$730 million Non-GAAP Fully Diluted Net Income p
Slide 19: Q3'22 Guidance
Guidance Total Revenue $464-466 million Subscription Revenue ~$376 million Q3’22 Guidance Services Revenue Non-GAAP Operating Income $88-90 million $179-181 million Non-GAAP Fully Diluted Net Income per Share $0.87-0.88 Calculated Billings ~$315 million Guidance issued on September 1, 2021. We are n
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'18 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 % Deferred compensation associated with
Slide 23: Reconciliation of GAAP to non-GAAP Measures
Reconciliation of GAAP to non-GAAP Measures FY'18 FY'19 FY'20 FY'21 Operating income on a GAAP basis $ 157.9 $ 222.9 $ 286.2 $ 377.8 Stock-based compensation expense 54.0 76.4 115.9 185.0 Amortization of purchased intangibles 7.8 7.0 10.1 20.0 Deferred compensation associated with Zinc Ahead acquisi
Slide 24: Reconciliation of GAAP to non-GAAP Measures
Reconciliation of GAAP to non-GAAP Measures Q2 FY'21 Q3 FY'21 Q4 FY'21 Q1 FY22 Q2 FY22 Gross margin on total revenues on a GAAP basis 72.5 % 72.7 % 71.3 % 73.2 % 73.2 % Stock-based compensation expense 2.5 % 2.3 % 2.3 % 1.9 % 2.4 % Amortization of purchased intangibles 0.4 % 0.3 % 0.3 % 0.3 % 0.2 %