Slide 1: Q4'24 Quarterly Results
Q4’24 Quarterly Results February 29, 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 and, in particular, includes guidance, provided as of February 29, 2024, about Veeva’s expected future financial results. Estimating guidance
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
Slide 4: Total Revenue – Annual
Total Revenue – Annual $million $3,000 Subscription Revenue Services Revenue 2,725-2,740 $2,500 2,364 475-490 2,155 1,851 462 $2,000 422 1,465 367 $1,500 1,104 286 ~ 2,250 $1,000 208 1,902 1,733 1,484 $500 1,179 896 $- 1 1 3 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 Guidance Y/Y Growth 2 Subs
Slide 5: Total Revenue – Quarterly
Total Revenue – Quarterly $million Subscription Revenue Services Revenue $700 640-643 617 631 590 $600 563 526 109 111-114 122 103 120 $500 112 $400 $300 495 521 ~ 529 460 471 $200 415 $100 $- 2 Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Guidance Y/Y Growth 1 Subscription 16% 3% 10% 12% 13% ~ 28% Services
Slide 6: Non-GAAP Operating Income – Annual
Non-GAAP Operating Income – Annual $million $1,200 $1,000 $800 $600 ~ 1,070 $400 830 843 759 583 $200 412 $- 1 1 3 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 Guidance Non-GAAP 37.3% 39.8% 41.0% 38.5% 35.6% ~ 39% Operating Margin 2 Fiscal Year Ending January 31 A reconciliation of GAAP to non-GA
Slide 7: Non-GAAP Operating Income – Quarterly
Non-GAAP Operating Income – Quarterly $million $250 $200 $150 235 239 245-247 ~ 247 $100 209 212 157 $50 $- 2 Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Guidance Non-GAAP 37.2% 29.8% 35.9% 38.1% 37.9% ~ 38% Operating Margin 1 Fiscal Year Ending January 31 A reconciliation of GAAP to non-GAAP measures is se
Slide 8: Normalized Billings – Annual
Normalized Billings – Annual $million $3,000 $2,500 $2,000 $1,500 ~ 2,900 2,595 2,269 $1,000 1,972 $500 $- 1 FY 2022 FY 2023 FY 2024 FY 2025 Guidance Y/Y Growth 2 23% 16% 14% ~ 12% Fiscal Year Ending January 31 Normalized Billings is defined in the Appendix 1 Guidance issued on February 29, 2024. Ou
Slide 9: Operating Cash Flow – Annual
Operating Cash Flow – Annual $million $1,200 Non-GAAP Operating Cash Flow (excl ETB) Excess Tax Benefit (ETB) $1,000 911 780 71 $800 764 56 82 $600 551 81 ~ 1,075 437 $400 50 840 708 698 $200 471 387 $- 1 2 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 Guidance Non-GAAP 35% 32% 38% 32% 36% ~ 39% O
Slide 10: FY 2025 Guidance
Guidance Total Revenue $2,725-2,740 million Subscription Revenue ~$2,250 million Commercial Solutions Subscription Revenue ~$1,068 million R&D Solutions Subscription Revenue ~$1,182 million Services Revenue $475-490 million FY 2025 Guidance Non-GAAP Operating Income ~$1,070 million Non-GAAP Fully Di
Slide 11: Q1'25 Guidance
Guidance Total Revenue $640-643 million Subscription Revenue ~$529 million Q1’25 Guidance Services Revenue Non-GAAP Operating Income $111-114 million $245-247 million Non-GAAP Fully Diluted Net Income per Share $1.42-$1.43 Normalized Billings ~$630 million Guidance issued on February 29, 2024. Our Q
Slide 12: Appendix
V Appendix
Slide 13: Definitions
Definitions • Excess Tax Benefit (ETB) – The realized tax benefit related to employee equity compensation, including the vesting of restricted stock units and the exercising and selling of stock options. • Calculated Billings – Revenue for the period plus the change in deferred revenue from the imme
Slide 14: Quarterly Information
Quarterly Information Y/Y Growth Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 Revenue Commercial Solutions - Subscription 227.7 236.4 239.3 242.9 239.3 243.4 251.2 261.9 7% 5% 3% 5% 8% R&D Solutions - Subscription 174.9 192.3 202.3 217.3 175.2 227.2 243.7 259.6 29% 0
Slide 15: Annual Information
Annual Information Y/Y Growth FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 Revenue Commercial Solutions - Subscription 594 745 876 946 996 20% 25% 18% 8% 5% R&D Solutions - Subscription 303 435 608 787 906 51% 44% 40% 30% 15% Total Subscription Revenue ($M) 896 1,1
Slide 16: Reconciliation of GAAP to non-GAAP Measures
Reconciliation of GAAP to non-GAAP Measures Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 Gross margin on total revenues on a GAAP basis 72.4 % 71.6 % 72.1 % 70.8 % 68.3 % 71.4 % 72.8 % 72.4 % Stock-based compensation expense 2.2 % 2.9 % 2.7 % 2.7 % 2.7 % 2.7 % 2.4 % 2.4 % Amortization of purchase
Slide 17: Reconciliation of GAAP to non-GAAP Measures
Reconciliation of GAAP to non-GAAP Measures FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 Gross margin on total revenues on a GAAP basis 72.5 % 72.1 % 72.8 % 71.7 % 71.3 % Stock-based compensation expense 1.8 % 2.2 % 2.2 % 2.6 % 2.6 % Amortization of purchased intangibles 0.4 % 0.4 % 0.2 % 0.2 % 0.2 % Gro
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
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
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 2024 20
Slide 21: Results and Guidance Normalized for Estimated TFC Impacts
Results and Guidance Normalized for Estimated TFC Impacts Reported Q1'25 FY 2025 Q1'24 Q2'24 Q3'24 Q4'24 Guidance FY 2024 Guidance Y/Y Growth Subscription Revenue Growth 3% 10% 12% 13% ~28% 10% ~18% Services Revenue Growth 9% 13% 10% 6% ~2% 9% ~6% Total Revenue Growth 4% 10% 12% 12% ~22% 10% ~16% No