Slide 1: Q3’22 Quarterly Results
Q3’22 Quarterly Results December 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 1,843-1,845 $1,800 $1,600 1,465 361-363 $1,400 286 $1,200 1,104 $1,000 862 208 $800 691 168 ~ 1,482 $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 Subscription Revenue Services Revenue 476 478-480 $500 456 434 397 95 84-86 $400 378 89 92 74 75 $300 $200 381 ~ 394 341 366 303 323 $100 $0 1 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Guidance Y/Y Growth Total 34% 27% 29% 29% 26% ~21%1 % Mix Commercial Solutions 60% 59%
Slide 6: Subscription Revenue – Annual
Subscription Revenue – Annual $million $1,600 R&D Solutions Commercial Solutions ~ 1,482 $1,400 1,179 $1,200 $1,000 896 ~ 872 $800 694 745 559 $600 594 $400 494 432 ~ 610 $200 435 303 128 200 $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 ~26
Slide 7: Subscription Revenue – Quarterly
$million Subscription Revenue – Quarterly R&D Solutions Commercial Solutions $400 381 366 341 $350 323 303 $300 223 $250 218 208 198 $200 190 ~ 394 $150 $100 148 158 113 125 133 $50 $0 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Guidance 1 Y/Y Growth Total Subscription 34% 27% 26% 29% 26% ~22%1 Commercial S
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 75.3% 73.9% 75.4% 75.8% 75.3% 85.7% 84.6% 85.5% 85.9% 84.9% 38.0% 34.4% 36.9% 33.7% 27.2% Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 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 $400 753 $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% ~41%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 $100 199 181 192 ~181 156 153 $50 $0 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Guidance1 Non-GAAP 41.2% 38.6% 41.8% 42.1% 41.9% ~38%1 Operating Margin Fiscal Year Ending January 31 A reconciliation of GAAP to non-GAAP measures is set forth in t
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 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Non-GAAP Guidance 1 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 $150 119 263 105 113 95 18 10 $100 22 68 17 39 22 $50 101 103 11 83 78 28 47 $0 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Fiscal Year Ending Janua
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 $900 $800 $700 $600 $500 $400 ~ 794 688 $300 519 $200 421 406 334 305 319 271 $100 $0 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Guidance 1 Fiscal Year Ending January 31 Calculated billings is defined in the Appendix. There are numerous factors tha
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 2,351 2,150 $1,000 1,590 1,664 $500 $0 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 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 5,182 4,690 4,926 4,304 4,506 2,500 2,000 1,500 1,000 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Quarterly Net 280 202 184 236 256 Additions Y/Y Growth 43% 29% 28% 22% 20% Fiscal Year Ending January 31 Copyright © Veeva Systems 2021 17
Slide 18: FY 2022 Guidance
Guidance Total Revenue $1,843-1,845 million Subscription Revenue ~$1,482 million Commercial Solutions Subscription Revenue ~$872 million R&D Solutions Subscription Revenue ~$610 million Services Revenue $361-363 million FY 2022 Guidance Non-GAAP Operating Income ~$753 million Non-GAAP Fully Diluted
Slide 19: Q4’22 Guidance
Guidance Total Revenue $478-480 million Subscription Revenue ~$394 million Q4’22 Guidance Services Revenue Non-GAAP Operating Income $84-86 million $181 million Non-GAAP Fully Diluted Net Income per Share $0.88 Calculated Billings ~$794 million Guidance issued on December 1, 2021. We are not able, a
Slide 20: FY 2023 Initial Guidance
Guidance Total Revenue $2,150-2,170 million Subscription Revenue $1,735-1,745 million FY 2023 Non-GAAP Operating Margin ~38% Initial Guidance Guidance issued on December 1, 2021. We are not able, at this time, to provide GAAP targets for operating income for the fiscal year ending January 31, 2023 b
Slide 21: Appendix
V Appendix
Slide 22: Current Revenue Alignment
Current Revenue Alignment FY2017 FY2018 FY2019 FY20201 Q1'FY21 Q2'FY21 Q3'FY21 Q4'FY21 FY20211 Q1'FY22 Q2'FY22 Q3'FY22 Commercial Solutions 366.2 431.7 494.3 593.6 176.6 180.9 189.9 197.5 744.9 207.8 218.1 223.2 R&D Solutions 74.6 127.7 200.1 302.7 93.7 102.6 113.1 125.3 434.6 133.3 148.3 157.6 Tota
Slide 23: Prior Revenue Alignment
Prior Revenue Alignment FY20201 Q1'FY21 Q2'FY21 Q3'FY21 Q4'FY21 FY20211 Q1'FY22 Q2'FY22 Q3'FY22 Commercial Cloud 468.6 142.6 144.8 152.5 159.4 599.2 168.5 176.1 179.8 Vault 427.7 127.7 138.7 150.5 163.4 580.3 172.7 190.4 200.9 Total Subscription Services 896.3 270.2 283.5 302.9 322.8 1,179.5 341.1 3
Slide 24: 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 25: 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 % Gross margin on total revenues on a no
Slide 26: 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 27: Reconciliation of GAAP to non-GAAP Measures
Reconciliation of GAAP to non-GAAP Measures Q3 FY'21 Q4 FY'21 Q1 FY22 Q2 FY22 Q3 FY22 Gross margin on total revenues on a GAAP basis 72.7 % 71.3 % 73.2 % 73.2 % 72.8 % Stock-based compensation expense 2.3 % 2.3 % 1.9 % 2.4 % 2.3 % Amortization of purchased intangibles 0.3 % 0.3 % 0.3 % 0.2 % 0.2 % G