Veeva Systems Inc. · NYSE:VEEV

Veeva Systems — Investor Day (October 2019)

114 slides from Veeva Systems's investor day presentation, Oct 2, 2019

Slide 1: Veeva
Veeva
Slide 2: Veeva Analyst & Investor Day
Veeva Analyst & Investor Day October 2, 2019
Slide 3: 2019 Veeva Analyst & Investor Day
2019 Veeva Analyst & Investor Day WEDNESDAY, OCTOBER 2 Veeva Vision Peter Gassner, Founder & CEO Financial Update Tim Cabral, CFO Veeva Commercial Cloud Paul Shawah, SVP Commercial Cloud Veeva Development Cloud Avril England, GM Vault Customer Success Jeff Ketelhut, Atara Biotherapeutics Q&A All Cop
Slide 4: Safe Harbor
Safe Harbor Forward-looking Statements This presentation and associated commentary made by our management contain forward-looking statements, including statements regarding Veeva’s future financial outlook and financial performance, market growth, the release dates for and benefits from the use of V
Slide 5: Veeva Vision
Veeva Vision Peter Gassner, Founder & CEO
Slide 9: Our Greatest Asset: 3,000 People
Our Greatest Asset ‣ Shared Vision ‣ Shared Values 3,000 People ‣ Shared Ways of Working ‣ The Right Skills ‣ Generation Veeva Copyright © Veeva Systems 2019 9
Slide 10: Veeva in 2025
Veeva in 2025 Building a Multi-Billion Dollar Company Metric CY 2019E CY 2025 Targets Total Revenue Run Rate $1B+ $3B Commercial Cloud $500M+ ~$1B Vault $550M+ ~$2B Non-GAAP Op Margin1 ~38% 35%+ ¹A reconciliation of GAAP to non-GAAP measures is set forth at Appendix 1 Copyright © Veeva Systems 2019
Slide 12: Growing the Right Way
Growing the Right Way Team Autonomy Innovation Talent attraction For our start-ups Technology Big goals Creates energy & innovation Operating model Keep our speed Okay with some inefficiency New people & ideas Copyright © Veeva Systems 2019 13
Slide 13: Strategic Partner to the Industry
Strategic Partner to the Industry
Slide 16: Large and Growing Industry
Large and Growing Industry $2.0 Trillion 5% growth Sources: MarketLine Industry Profile Global Health Care Equipment & Supplies, July 2018, Reference Code: 0199-2067 was published July 2018 (Table 4). MarketLine Industry Profile Global Pharmaceuticals, March 2019, Reference Code: 0199-0372 was publi
Slide 18: Strategic Partner to The Industry
Strategic Partner to The Industry Innovation Product Excellence Services Excellence Long-term view Trust Benefit to Society Copyright © Veeva Systems 2019 19
Slide 19: Commercial Update
V Commercial Update
Slide 20: Intelligent Engagement, Content, Data
HCP HCO KOL Payer Pharmacy Intelligent Engagement CRM Align Nitro Andi Content Data PromoMats MedComms OpenData Network Copyright © Veeva Systems 2019 21
Slide 21: IQVIA Monopoly Harming the Industry
IQVIA Monopoly Harming the Industry • IQVIA is attempting to extend its data monopoly to software − Bad for life sciences − Bad for patients − Bad for healthcare • History − 2014: IQVIA restrictions started − 2017: Veeva filed antitrust claim for Veeva Network − 2019: Veeva files antitrust claim for
Slide 22: Crossix
V Crossix
Slide 23: Leader in Privacy-Safe Patient Data and Analytics
Founded in 2005 Leader in Privacy-Safe DIFA Platform Data on Patient Data and Analytics 300M U.S. Patients Pioneer in Privacy For Measuring & Optimizing 90% of People & Data Science Marketing Campaigns 70% of Prescriptions NYC 200+ Employees ~$70M Revenue ~20% Margin ~40% Growth New York City HQ Non
Slide 25: Why Crossix?
Why Crossix? Data Science Deep domain expertise in analytics & data science Patients & Privacy Leader in privacy-safe patient data Brands Trusted partner to more than 200 pharma brands Culture Share culture of customer success and innovation Copyright © Veeva Systems 2019 26
Slide 26: Crossix: Looking Forward
Crossix: Looking Forward • Today − 200 Brands − DIFA is the Flagship Product − Patient Optimization and Targeting • Growth Opportunity − More Brands − More Products Copyright © Veeva Systems 2019 27
Slide 27: R&D Update
V R&D Update
Slide 28: Vault Development Cloud Applications
Coder eTMF QualityDocs Submissions Safety EDC CTMS QMS Submissions Archive SafetyDocs Data Workbench Study Startup Training Registrations Safety.AI Payments Station Manager Publishing Copyright © Veeva Systems 2019 29
Slide 30: Innovation
V Innovation
Slide 37: SAS vs CQL
Overdue Visits for Active Patients SAS CQL SQL & Traditional Programming Clinical Query Language 280 Lines of Code 6 Lines of Code /**************************************Follow-Up WITH STUDY VEXR_2289 Visit*********************************************** **************************/ SELECT @HDR, DS.DS
Slide 38: Vision for the Vault Platform
Vision for the Vault Platform Content • Enterprise Cloud Platform • Rapid Application Development • Integrated Reporting & Dashboards Data Copyright © Veeva Systems 2019 39
Slide 39: Vault Platform is a Unique Asset
Vault Platform is a Unique Asset Content & Data Robust Workflow Validated Low Code & Search Everything Enables The Last Mile Copyright © Veeva Systems 2019 40
Slide 40: Outside Life Sciences
V Outside Life Sciences
Slide 43: Case Study: Top 5 CPG Company
Case Study: Top 5 CPG Company Products Benefits Consolidated multiple legacy systems Reduced compliance risk Increased responsiveness & speed Key to enterprise-wide digital transformation Copyright © Veeva Systems 2019 44
Slide 44: Case Study: Top 30 Chemicals Company
Case Study: Top 30 Chemicals Company Products Benefits Retired 7 legacy systems Cost savings Paperless management of 1.5 million documents Business agility Copyright © Veeva Systems 2019 45
Slide 46: Financial Update
Financial Update Tim Cabral, CFO
Slide 47: Highlights
Highlights • Unique Combination of Growth and Profitability • 2025 Target: $3 Billion in Revenue • Early Stage in Large Market Opportunities • Innovation Powering Sustainable Growth Copyright © Veeva Systems 2019 48
Slide 48: Consistent Growth and Profitability
Consistent Growth and Profitability $1.063B $862M Revenue Non-GAAP Operating Income1 $691M $551M $409M $402M $313M $307M $210M $219M $173M $130M $109M $86M $61M $47M $29M $30M $5M $7M FY11 FY12 FY13 FY14 FY15 FY16 FY17² FY18² FY19 FY20E3 Fiscal Year Ending January 31 ¹ A reconciliation of GAAP to no
Slide 49: Operating Model
Operating Model FY2016 FY2017 2 FY2018 2 FY2019 FY2020E Non-GAAP 67% 71% 71% 73% ~75% Gross Margin1 S&M % of Revenue 18% 17% 16% 15% 14%-15% (Non-GAAP) 1 R&D % of Revenue 14% 15% 17% 16% ~16% (Non-GAAP) 1 G&A % of Revenue 9% 7% 7% 7% ~7% (Non-GAAP) 1 Non-GAAP 27% 31% 32% 36% ~38%3 Operating Margin1
Slide 50: Achieving 2020 Targets Ahead of Schedule
Achieving 2020 Targets Ahead of Schedule CY2020 CY2015 CY19E Targets Total Revenue ~$400M ~$1B+ $1.06B+ Run Rate Non-CRM as a % of Total 20%+ 50%+ ~55% Revenue Eight-figure 9 20 21 Customers Customers 350 500+ 750+ Note: Eight-figure customers are defined as those whose, at the parent company level,
Slide 51: Veeva in 2025
Veeva in 2025 Building a Multi-Billion Dollar Company Metric CY 2019E CY 2025 Targets Total Revenue Run Rate $1B+ $3B Commercial Cloud $500M+ ~$1B Vault $550M+ ~$2B Non-GAAP Op Margin1 ~38% 35%+ ¹A reconciliation of GAAP to non-GAAP measures is set forth at Appendix 1 Copyright © Veeva Systems 2019
Slide 52: Veeva's Growing Market Opportunity
Veeva’s Growing Market Opportunity $10B+ Vault Outside Life Sciences* $1B+ Patient Data & Analytics $1B Commercial Cloud $3B Vault for Life Sciences $5B * Vault Outside of Life Sciences includes Vault QualityOne, Vault RegulatoryOne, and Vault Claims for CPG, Cosmetics, and Chemicals Copyright © Vee
Slide 53: 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 Promomats eTMF QualityDocs Medcomms Align Registrations Events Submissions CDMS Network Subs Archive CTMS OpenData Engage QMS Andi Publishing Study Startup Claims Safety Nitro T
Slide 54: Proven Go-to-Market Approach
Proven Go-to-Market Approach Disciplined approach ensures success in new markets Product Partner with Early Focus on Early Reference Innovation Adopters Customer Success Selling Copyright © Veeva Systems 2019 55
Slide 55: Vault Customer Count Up Across All Areas
Vault Customer Count Up Across All Areas 27% 330 26% 278 37% 259 31% 238 37% 221 41% 197 51% 189 181 161 28% 140 120 109 Regulatory Quality Clinical Commercial Q2'18 Q2'19 Q2'20 Copyright © Veeva Systems 2019 56
Slide 56: Vault Adoption Accelerating
Vault Adoption Accelerating Average Vault products per Vault customer Total Number of Vaults 100+ 200+ 300+ 600+ 900+ 1,300+ 1,500+ 2.38 2.30 2.10 1.82 1.48 1.52 1.53 FY14 FY14 FY15 FY15 FY16 FY16 FY17 FY18 FY17 FY19 2Q18 2Q20 69 CUSTOMERS 135 CUSTOMERS 219 CUSTOMERS 334 CUSTOMERS 449 CUSTOMERS 574
Slide 57: Vault Customers Expand Over Time
Vault Customers Expand Over Time Annualized Vault subscription revenue by annual cohort Average Vault products per customer 1.3x 1.9 2.8x 2.4 3.2x 2.8 4.9x 3.2 6.1x 2.9 20.0x 3.8 First year Q2'20 2013-2014 2015 2016 2017 2018 2019 Copyright © Veeva Systems 2019 58
Slide 58: Customers Adopting More Commercial Cloud
Customers Adopting More Commercial Cloud Average Commercial Cloud products per customer 3.43 3.26 2.84 2.91 2.47 2.22 1.90 FY14 FY14 FY15 FY15 FY16 FY16 FY17 FY18 FY17 FY19 2Q18 2Q20 147 CUSTOMERS 190 CUSTOMERS 212 CUSTOMERS 259 CUSTOMERS 294 CUSTOMERS 319 CUSTOMERS 341 CUSTOMERS Copyright © Veeva S
Slide 59: Highlights
Highlights • Unique Combination of Growth and Profitability • 2025 Target: $3 Billion in Revenue • Early Stage in Large Market Opportunities • Innovation Powering Sustainable Growth Copyright © Veeva Systems 2019 60
Slide 60: Veeva Commercial Cloud
Veeva Commercial Cloud Paul Shawah, SVP, Commercial Cloud
Slide 61: Shift to Specialized Medicines
Shift to Specialized Medicines 9,500 Drugs in Pipeline1 74% First-in-Class1 42% New Drug Approvals2 Accelerating Innovation 1 Source: The Biopharmaceutical Pipeline: Innovative Therapies in Clinical Development, Analysis Group, Inc. (July 2017) 2 Source: Personalized Medicine at FDA: 2018 Progress R
Slide 62: Impact on Commercial Model
Impact on Commercial Model Stakeholders Multiple stakeholders aligned to disease Multiple stakeholders aligned to patient Payers Value and health economics focus Outcomes and real-world evidence focus Go-to-market Focus on stakeholder journey Focus on patient journey Copyright © Veeva Systems 2019 6
Slide 63: Impact on Commercial Model
Impact on Commercial Model Multiple stakeholders aligned to disease Multiple stakeholders aligned to patient Expanded need for data Value and health economics focus Outcomes and real-world evidence focus Greater speed and agility Focus on stakeholder journey Disrupting traditional compliance Focus o
Slide 64: Intelligent Engagement, Content, Data
HCP HCO KOL Payer Pharmacy Intelligent Engagement CRM Align Nitro Andi Content Data PromoMats MedComms OpenData Network Copyright © Veeva Systems 2019 65
Slide 66: Global Expansions, SMBs Going All-in, Add-on Momentum
Global Expansions SMBs Going All-in Add-on Momentum Strength in Emerging Driving Launch Shift from Markets Excellence Regional to Global Copyright © Veeva Systems 2019 67
Slide 71: Content Efficiency, Digital Foundation, Expanding Leadership
Content Efficiency Digital Foundation Expanding Leadership DAM and Brand Portal Speeding Time to Global Enabling Reuse Market Standardization Copyright © Veeva Systems 2019 72
Slide 76: Global Top 20 Life Sciences Customer
Global Top 20 Life Sciences Customer Operating in 80 Five Primary Customer Since Countries Therapeutic Areas, 2013 20+ Products Copyright © Veeva Systems 2019 77
Slide 77: Transforming Customer Engagement
Transforming Customer Engagement Harmonization Account Engagement Harmonization Move to Digital Data-Driven Engagement Key Account Management 2013 2014 2015 2016 2017 2018 2019 2020 CRM Approved Email (US) Suggestions (US) Engage Align (EU) CLM OpenData (US) PromoMats MedComms Events Management (EU)
Slide 78: Emerging Growth Oncology Customer
Emerging Growth Oncology Customer 2019 Launched First US Market Launch, Customer Since Cancer Treatment Plans to Expand Globally 2015 Copyright © Veeva Systems 2019 79
Slide 79: Launch Excellence
Launch Excellence Harmonization Account Engagement Medical Engagement Launch Readiness Intelligent Engagement 2018 2019 2020 Launch Medical CRM Nitro Suggestions Approved Email PromoMats CRM MedComms Align OpenData Copyright © Veeva Systems 2019 80
Slide 81: Veeva Development Cloud
Veeva Development Cloud Avril England, GM Vault
Slide 82: Key R&D Challenges Today
Key R&D Challenges Today Increasing Changing global cross-company Move to compliance landscape partnerships precision medicine Greater complexity and risk in product Increased collaboration Flexible organizations, development requirements processes and technology Copyright © Veeva Systems 2019 83
Slide 83: Customer Maturity
Customer Maturity Business Transformation Agility Efficiency Compliance SINGLE APPLICATION MULTIPLE APPS DEPARTMENT-WIDE DEVELOPMENT LIFECYCLE Copyright © Veeva Systems 2019 84
Slide 84: Vault Maturity
Vault Maturity Integrated Development Cloud Suites of Applications Content & Data Content Management SINGLE APPLICATION MULTIPLE APPS DEPARTMENT-WIDE DEVELOPMENT LIFECYCLE Copyright © Veeva Systems 2019 85
Slide 85: Vault Development Cloud Applications
Coder eTMF QualityDocs Submissions Safety EDC CTMS QMS Submissions Archive SafetyDocs Data Workbench Study Startup Training Registrations Safety.AI Payments Station Manager Publishing Copyright © Veeva Systems 2019 86
Slide 88: Single Global Solution, Unified RIM, Completing the Suite
Single Global Solution Unified RIM Completing the Suite 400+ Regulatory Strong Adoption Submissions Transformation Across Apps Published to FDA Copyright © Veeva Systems 2019 89
Slide 89: Modernizing Quality, Strong Momentum, Innovation
Modernizing Quality Strong Momentum Innovation 100 + Unified Compliance QMS Customers Station Manager & Solution Vault Training Copyright © Veeva Systems 2019 90
Slide 90: Trial Execution, New App Traction, Growing eTMF Base
Trial Execution New App Traction Growing eTMF Base 12 Top 20 Pharma Streamlining Systems & Processes CTMS & Study Startup 4 Top 7 CRO Copyright © Veeva Systems 2019 91
Slide 94: Veeva Vault CDMS Demo
Veeva Vault CDMS Demo Sharmin Nasrullah, Solution Consultant
Slide 95: Tackling Two Major Challenges with Traditional EDC
Tackling Two Major Challenges with Traditional EDC Lengthy Study Builds Downtime and Risk of 12-16 weeks Data Migrations Copyright © Veeva Systems 2019 96
Slide 96: Study Design
Study Design 6 WEEKS 16 WEEKS Study Team Creates Specification EDC Programmers Build Study Traditional EDC Design Review Design Review Spec Build Review Modify Review Modify Study & Test Study & Test Study Copyright © Veeva Systems 2019 97
Slide 97: Study Design
Study Design 6 WEEKS 16 WEEKS Study Team Creates Specification EDC Programmers Build Study Traditional EDC Design Review Design Review Spec Build Review Modify Review Modify Study & Test Study & Test Study Study Team Builds Study Review & Test Design Design Copyright © Veeva Systems 2019 98
Slide 100: Study Amendments Requiring Data Migrations
Traditional EDC Challenge #2: Study Amendments Requiring Data Migrations Science evolves Why? Most studies have to go We learn from the data through amendments Copyright © Veeva Systems 2019 101
Slide 107: Customer Success
Customer Success Jeff Ketelhut, VP & Head of IT, Atara Biotherapeutics
Slide 108: Key Highlights
Key Highlights • Strategic Partner to the Industry • Business Model Advantage – The Veeva Way • Market Expansion and Leadership • Innovation Copyright © Veeva Systems 2019 109
Slide 109: Thank you
Thank You Thank you
Slide 110: Appendix
V Appendix
Slide 111: Reconciliation of GAAP to non-GAAP Measures
Reconciliation of GAAP to non-GAAP Measures in millions FY'11 FY'12 FY'13 FY'14 FY'15 FY'16 FY'17 FY'18 FY'19 Operating income on a GAAP basis $ 5 $ 7 $ 30 $ 39 $ 70 $ 79 $ 121 $ 158 $ 223 Stock-based compensation expense — — — 7 14 24 41 54 76 Amortization of purchased intangibles — — — 1 2 5 8 8 7
Slide 112: Reconciliation of GAAP to non-GAAP Measures
Reconciliation of GAAP to non-GAAP Measures Q2 FY'20 Gross margin on total revenues on a GAAP basis 73.7% Stock-based compensation expense 1.9 Amortization of purchased intangibles 0.3 Gross margin on total revenues on a non-GAAP basis 75.9% in millions Q2 FY'20 Operating income on a GAAP basis $ 73
Slide 113: Reconciliation of GAAP to non-GAAP Measures
Reconciliation of GAAP to non-GAAP Measures FY'16 FY'17 FY'18 FY'19 Gross margin on total revenues on a GAAP basis 65% 68.5% 69.4% 71.6% Stock-based compensation expense 1 1 1 1 Amortization of purchased intangibles 1 1 1 — Deferred compensation associated with Zinc Ahead acquisition — — — — Gross m
Slide 114: Veeva Product Area Definitions
Veeva Product Area Definitions Veeva Andi Veeva CRM Vault CDMS Vault QualityOne Veeva CLM Vault Claims Vault Registrations Veeva CRM Approved Email Vault CTMS Vault Safety Veeva CRM Events Management Vault eTMF Vault Safety.AI Veeva CRM Align Vault MedComms Vault SiteVault Veeva CRM Engage Meeting V

Veeva Systems — Investor Day (October 2019) on 6ix

Veeva Systems — Investor Day (October 2019)

Slide 1: Veeva

Slide 2: Veeva Analyst & Investor Day

Slide 3: 2019 Veeva Analyst & Investor Day

Slide 4: Safe Harbor

Slide 5: Veeva Vision

Slide 6: Key Highlights

Slide 7: Vision and Values

Slide 8: The Veeva Way

Slide 9: Our Greatest Asset: 3,000 People

Slide 10: Veeva in 2025

Slide 11: Veeva 2025: $3 Billion, Room to Grow, Still Veeva

Slide 12: Growing the Right Way

Slide 13: Strategic Partner to the Industry

Slide 14: Evolution of Software

Slide 15: Evolution of Medicine

Slide 16: Large and Growing Industry

Slide 17: Veeva: The Industry Cloud for Life Sciences

Slide 18: Strategic Partner to The Industry

Slide 19: Commercial Update

Slide 20: Intelligent Engagement, Content, Data

Slide 21: IQVIA Monopoly Harming the Industry

Slide 22: Crossix

Slide 23: Leader in Privacy-Safe Patient Data and Analytics

Slide 24: Crossix Customers

Slide 25: Why Crossix?

Slide 26: Crossix: Looking Forward

Slide 27: R&D Update

Slide 28: Vault Development Cloud Applications

Slide 29: It's All About Execution

Slide 30: Innovation

Slide 31: New Applications and Embedded AI

Slide 32: Industry Networks

Slide 33: Sponsors, Sites, CROs

Slide 34: Clinical Data Management

Slide 35: Coder, EDC, Data Workbench

Slide 36: Breakthrough Innovation

Slide 37: SAS vs CQL

Slide 38: Vision for the Vault Platform

Slide 39: Vault Platform is a Unique Asset

Slide 40: Outside Life Sciences

Slide 41: The Basics

Slide 42: Progress

Slide 43: Case Study: Top 5 CPG Company

Slide 44: Case Study: Top 30 Chemicals Company

Slide 45: Looking Ahead

Slide 46: Financial Update

Slide 47: Highlights

Slide 48: Consistent Growth and Profitability

Slide 49: Operating Model

Slide 50: Achieving 2020 Targets Ahead of Schedule

Slide 51: Veeva in 2025

Slide 52: Veeva's Growing Market Opportunity

Slide 53: Innovation Engine Fuels Long Term Growth

Slide 54: Proven Go-to-Market Approach

Slide 55: Vault Customer Count Up Across All Areas

Slide 56: Vault Adoption Accelerating

Slide 57: Vault Customers Expand Over Time

Slide 58: Customers Adopting More Commercial Cloud

Slide 59: Highlights

Slide 60: Veeva Commercial Cloud

Slide 61: Shift to Specialized Medicines

Slide 62: Impact on Commercial Model

Slide 63: Impact on Commercial Model

Slide 64: Intelligent Engagement, Content, Data

Slide 65: Leading Through Innovation

Slide 66: Global Expansions, SMBs Going All-in, Add-on Momentum

Slide 67: Approved Notes

Slide 68: Dynamic Attributes

Slide 69: MyInsights Designer

Slide 70: Leading Through Innovation

Slide 71: Content Efficiency, Digital Foundation, Expanding Leadership

Slide 72: Auto Claims Linking

Slide 73: New Product Progress

Slide 74: Nitro Update

Slide 75: Andi Update

Slide 76: Global Top 20 Life Sciences Customer

Slide 77: Transforming Customer Engagement

Slide 78: Emerging Growth Oncology Customer

Slide 79: Launch Excellence