Slide 1: Q4'22 Quarterly Results
Q4’22 Quarterly Results March 2, 2022
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 March 2, 2022 about Veeva’s expected future financial results. Estimating guidance accur
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 $2,500 Subscription Revenue Services Revenue 2,160-2,170 $2,000 1,851 415-425 1,465 367 $1,500 1,104 286 $1,000 862 208 ~ 1,745 168 1,484 $500 1,179 896 694 $0 FY 2019 FY 2020 1 FY 2021 1 FY 2022 FY 2023 Guidance 2 Y/Y Growth Total 25% 28%1 33%1 26% ~17%2 % Mix Commer
Slide 5: Total Revenue – Quarterly
Total Revenue – Quarterly $million Subscription Revenue Services Revenue 476 485 494-496 $500 456 434 397 90 96-98 89 95 $400 92 74 $300 $200 381 396 ~ 398 341 366 323 $100 $0 1 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Guidance Y/Y Growth Total 27% 29% 29% 26% 22% ~14%1 % Mix Commercial Solutions 59% 58%
Slide 6: Subscription Revenue – Annual
Subscription Revenue – Annual $million $2,000 R&D Solutions Commercial Solutions $1,800 ~ 1,745 $1,600 1,484 $1,400 1,179 ~ 955 $1,200 $1,000 896 876 $800 694 745 $600 594 $400 494 ~ 790 608 $200 435 200 303 $0 FY 2019 FY 2020 1 FY 2021 1 FY 2022 FY 2023 Guidance2 Y/Y Growth Total Subscription 24% 2
Slide 7: Subscription Revenue – Quarterly
$million Subscription Revenue – Quarterly R&D Solutions Commercial Solutions 396 $400 381 366 341 $350 323 $300 227 223 $250 218 208 198 $200 ~ 398 $150 $100 148 158 168 125 133 $50 $0 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Guidance 1 Y/Y Growth Total Subscription 27% 26% 29% 26% 23% ~17%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% 75.2% 83.8% 85.5% 85.2% 85.4% 29.8% 31.3% 34.0% 28.1% 1 FY 2019 FY 2020 FY 2021 FY 2022 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 73.9% 75.4% 75.8% 75.3% 74.5% 84.6% 85.5% 85.9% 84.9% 85.4% 38.0% 34.4% 36.9% 27.2% 26.6% Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 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 $900 $800 $700 $600 $500 $400 825 759 $300 583 $200 412 307 $100 $0 1 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 Guidance 2 Non-GAAP 35.6% 37.3%1 39.8% 41.0% ~38%2 Operating Margin Fiscal Year Ending January 31 A reconciliation of GAAP to non-GAAP measures is
Slide 11: Non-GAAP Operating Income – Quarterly
Non-GAAP Operating Income – Quarterly $million $250 $200 $150 $100 199 181 192 186 187-189 153 $50 $0 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Guidance1 Non-GAAP 38.6% 41.8% 42.1% 41.9% 38.4% ~38%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) $800 764 56 $700 $600 551 $500 81 437 $400 50 311 708 ~ 740 $300 46 471 $200 387 265 $100 $0 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 Non-GAAP Guidance 1 OCF Margin 31% 35% 32% 38% ~34%1 (ex ETB and RDT) Fisca
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 54 $50 22 101 103 11 83 78 47 43 $0 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Fiscal Year Ending Janua
Slide 14: Calculated Billings – Annual
Calculated Billings – Annual $million $2,000 $1,500 ~ 2,320 $1,000 1,950 1,599 1,193 $500 947 $0 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 Guidance1 Y/Y Growth 27% 26% 34% 22% ~19%1 Fiscal Year Ending January 31 Calculated billings is defined in the Appendix 1 Guidance issued on March 2, 2022 Copyrigh
Slide 15: Calculated Billings – Quarterly
Calculated Billings – Quarterly $million $900 $800 $700 $600 $500 $400 804 688 $300 ~ 486 $200 421 406 334 305 319 271 $100 $0 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 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 2,351 2,376 2,264 2,150 $1,000 1,664 $500 $0 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Fiscal Year Ending January 31 Copyright © Veeva Systems 2022 16
Slide 17: Employee Headcount – Quarterly
Employee Headcount – Quarterly 6,000 5,500 5,000 4,500 4,000 3,500 5,482 3,000 4,926 5,182 4,506 4,690 2,500 2,000 1,500 1,000 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Quarterly Net 202 184 236 256 300 Additions Y/Y Growth 29% 28% 22% 20% 22% Fiscal Year Ending January 31 Copyright © Veeva Systems 2022 17
Slide 18: FY 2023 Guidance
Guidance Total Revenue $2,160-2,170 million Subscription Revenue ~$1,745 million Commercial Solutions Subscription Revenue ~$955 million R&D Solutions Subscription Revenue ~$790 million Services Revenue $415-425 million FY 2023 Guidance Non-GAAP Operating Income ~$825 million Non-GAAP Fully Diluted
Slide 19: Q1'23 Guidance
Guidance Total Revenue $494-496 million Subscription Revenue ~$398 million Q1’23 Guidance Services Revenue Non-GAAP Operating Income $96-98 million $187-189 million Non-GAAP Fully Diluted Net Income per Share $0.91-0.92 Calculated Billings ~$486 million Guidance issued on March 2, 2022. We are not a
Slide 20: Appendix
V Appendix
Slide 21: 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 Q4'FY22 FY2022 Commercial Solutions 366.2 431.7 494.3 593.6 176.6 180.9 189.9 197.5 744.9 207.8 218.1 223.2 227.3 876.5 R&D Solutions 74.6 127.7 200.1 302.7 93.7 102.6 113.1 125.3 4
Slide 22: Prior Revenue Alignment
Prior Revenue Alignment FY20201 Q1'FY21 Q2'FY21 Q3'FY21 Q4'FY21 FY20211 Q1'FY22 Q2'FY22 Q3'FY22 Q4'FY22 FY2022 Commercial Cloud 468.6 142.6 144.8 152.5 159.4 599.2 168.5 176.1 179.8 182.6 707.0 Vault 427.7 127.7 138.7 150.5 163.4 580.3 172.7 190.4 200.9 213.1 777.0 Total Subscription Services 896.3
Slide 23: 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. • R&D Tax (RDT) – Newly effective tax legislation that requires the capitalization of certain R&D e
Slide 24: Reconciliation of GAAP to non-GAAP Measures
Reconciliation of GAAP to non-GAAP Measures FY'19 FY'20 FY'21 FY'22 Gross margin on total revenues on a GAAP basis 71.6 % 72.5 % 72.1 % 72.8 % Stock-based compensation expense 1.4 % 1.8 % 2.2 % 2.2 % Amortization of purchased intangibles 0.3 % 0.4 % 0.4 % 0.2 % Deferred compensation associated with
Slide 25: Reconciliation of GAAP to non-GAAP Measures
Reconciliation of GAAP to non-GAAP Measures FY'19 FY'20 FY'21 FY'22 Operating income on a GAAP basis $ 222.9 $ 286.2 $ 377.8 $ 505.5 Stock-based compensation expense 76.4 115.9 185.0 234.6 Amortization of purchased intangibles 7.0 10.1 20.0 18.5 Deferred compensation associated with Zinc Ahead acqui
Slide 26: Reconciliation of GAAP to non-GAAP Measures
Reconciliation of GAAP to non-GAAP Measures Q4 FY'21 Q1 FY'22 Q2 FY'22 Q3 FY'22 Q4 FY'22 Gross margin on total revenues on a GAAP basis 71.3 % 73.2 % 73.2 % 72.8 % 72.0 % Stock-based compensation expense 2.3 % 1.9 % 2.4 % 2.3 % 2.2 % Amortization of purchased intangibles 0.3 % 0.3 % 0.2 % 0.2 % 0.3