Veeva Systems Inc. · NYSE:VEEV

Veeva Systems — Q1 2026 Earnings Presentation

21 slides from Veeva Systems's earnings presentation, May 28, 2025

  1. Slide 1: Q1’26 Quarterly Results

    Q1’26 Quarterly Results May 28, 2025

  2. 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 May 28, 2025, about Veeva’s expected future financial results. Estimating guidance accu

  3. 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

  4. Slide 4: Total Revenue – Annual

    Total Revenue – Annual $million $3,500 Subscription Revenue Services Revenue ​3,090-3,100 $3,000 2,747 465-475 $2,500 2,364 462 2,155 1,851 462 $2,000 422 1,465 367 $1,500 286 ~ 2,625 2,285 $1,000 1,902 1,733 1,484 $500 1,179 $- FY 2021 1 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 Guidance 3 Y/Y Growth

  5. Slide 5: Total Revenue – Quarterly

    Total Revenue – Quarterly $million $1,000 Subscription Revenue Services Revenue 759 766-769 $800 721 676 699 650 124 117-120 118 112 $600 116 115 $400 609 635 ~ 649 534 561 581 $200 $- 2 Q1'25 Q2'25 Q3'25 Q4'25 Q1'26 Q2'26 Guidance Y/Y Growth 1 Subscription 29% 19% 17% 17% 19% ~ 16% Services 4% (4%)

  6. Slide 6: Non-GAAP Operating Income – Annual

    Non-GAAP Operating Income – Annual $million $1,400 $1,200 $1,000 $800 ~ 1,360 $600 1,152 $400 830 843 759 583 $200 $- 2 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 Guidance Non-GAAP 39.8% 41.0% 38.5% 35.6% 42.0% ~ 44% Operating Margin 1 Fiscal Year Ending January 31 A reconciliation of GAAP to n

  7. Slide 7: Non-GAAP Operating Income – Quarterly

    Non-GAAP Operating Income – Quarterly $million $400 $350 $300 $250 $200 350 335-337 $150 304 308 261 280 $100 $50 $- Q1'25 Q2'25 Q3'25 Q4'25 Q1'26 Q2'26 Guidance 1 Non-GAAP 40.1% 41.4% 43.5% 42.7% 46.1% ~ 44% Operating Margin Fiscal Year Ending January 31 A reconciliation of GAAP to non-GAAP measure

  8. Slide 8: Normalized Billings – Annual

    Normalized Billings – Annual $million $3,500 $3,000 $2,500 $2,000 ~ 3,320 3,265 $1,500 2,951 2,595 2,269 $1,000 1,972 $500 $- 1 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 Guidance Y/Y Growth 2 23% 16% 14% 14% ~ 12% Fiscal Year Ending January 31 Normalized Billings is defined in the Appendix 1 Guidance

  9. Slide 9: Operating Cash Flow – Annual

    Operating Cash Flow – Annual $million $1,400 Non-GAAP Operating Cash Flow (excl ETB) Excess Tax Benefit (ETB) $1,200 1,090 $1,000 9 911 764 780 71 $800 56 82 $600 551 ~ 1,210 81 1,081 $400 840 708 698 $200 471 $- 1 2 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 Guidance Non-GAAP 32% 38% 32% 36% 3

  10. Slide 10: FY 2026 Guidance

    Guidance Total Revenue $3,090-3,100 million Subscription Revenue ~$2,625 million Commercial Solutions Subscription Revenue ~$1,225 million R&D Solutions Subscription Revenue ~$1,400 million Services Revenue $465-475 million FY 2026 Guidance Non-GAAP Operating Income ~$1,360 million Non-GAAP Fully Di

  11. Slide 11: Q2’26 Guidance

    Guidance Total Revenue $766-769 million Subscription Revenue ~$649 million Q2’26 Guidance Services Revenue Non-GAAP Operating Income $117-120 million $335-337 million Non-GAAP Fully Diluted Net Income per Share $1.89-1.90 Normalized Billings ~$663 million Guidance issued on May 28, 2025. Our Q2’26 g

  12. Slide 12: Appendix

    V Appendix

  13. Slide 13: Definitions

    Definitions • 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 imme

  14. Slide 14: Quarterly Information

    Quarterly Information Y/Y Growth Q2'24 Q3'24 Q4'24 Q1'25 Q2'25 Q3'25 Q4'25 Q1'26 Q1'25 Q2'25 Q3'25 Q4'25 Q1'26 Revenue Commercial Solutions - Subscription 243.4 251.2 261.9 261.3 271.8 278.4 293.4 305.4 9% 12% 11% 12% 17% R&D Solutions - Subscription 227.2 243.7 259.6 272.6 289.5 302.5 315.2 329.4 5

  15. Slide 15: Annual Information

    Annual Information Y/Y Growth FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 Revenue Commercial Solutions - Subscription 745 876 946 996 1,105 25% 18% 8% 5% 11% R&D Solutions - Subscription 435 608 787 906 1,180 44% 40% 30% 15% 30% Total Subscription Revenue ($M) 1,1

  16. Slide 16: Reconciliation of GAAP to Non-GAAP Measures

    Reconciliation of GAAP to non-GAAP Measures Q2'24 Q3'24 Q4'24 Q1'25 Q2'25 Q3'25 Q4'25 Q1'26 Gross margin on total revenues on a GAAP basis 71.4 % 72.8 % 72.4 % 73.3 % 74.8 % 75.1 % 74.9 % 77.1 % Stock-based compensation expense 2.7 % 2.4 % 2.4 % 2.2 % 2.2 % 2.1 % 2.0 % 1.9 % Amortization of purchase

  17. Slide 17: Reconciliation of GAAP to Non-GAAP Measures

    Reconciliation of GAAP to non-GAAP Measures FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 Gross margin on total revenues on a GAAP basis 72.1 % 72.8 % 71.7 % 71.3 % 74.5 % Stock-based compensation expense 2.2 % 2.2 % 2.7 % 2.6 % 2.1 % Amortization of purchased intangibles 0.4 % 0.2 % 0.2 % 0.2 % 0.2 % Gro

  18. Slide 18: Customer Contracting Change

    Customer Contracting Change Standardizing Termination for Convenience (TFC) Rights Historically As of February 1, 2023 • Most customer orders had a • More orders are multi-year one-year term, thus TFC rights in duration were not meaningful • TFC rights standardized for • TFC rights differed customer

  19. Slide 19: Impact of TFC on Subscription Revenue Timing

    Impact of TFC on Subscription Revenue Timing EXAMPLE 1: Multi-Year Ramping Deal without TFC Invoice/Billings Subscription Revenue 6 6 6 Revenue is recognized ratably over the duration of 4 4 4 4 the committed term 2 Year 1 Year 2 Year 3 Renewal EXAMPLE 2: Multi-Year Ramping Deal with TFC Invoice/Bil

  20. Slide 20: Key Takeaways - TFC Change

    Key Takeaways - TFC Change • Consistent TFC treatment of customers with multi-year ramping deals • With continued execution, we do not expect an impact to: − Cash flows − Billings − Expected total revenue on multi-year ramping deals Copyright © Veeva Systems 2025 20

  21. Slide 21: FY 2024 and FY 2025 Results Normalized for Estimated TFC Impacts

    FY 2024 and FY 2025 Results Normalized for Estimated TFC Impacts Reported Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Q2'25 Q3'25 Q4'25 FY 2024 FY 2025 Y/Y Growth Subscription Revenue Growth 3% 10% 12% 13% 29% 19% 17% 17% 10% 20% Services Revenue Growth 9% 13% 10% 6% 4% (4%) (3%) 3% 9% (0%) Total Revenue Growth 4

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