Slide 1: Q2'21 Quarterly Results
Q2’21 Quarterly Results August 27, 2020
Slide 2: Safe Harbor and Other Information
Safe Harbor and Other Information This presentation and associated commentary contains forward-looking statements, including statements regarding Veeva’s future financial outlook, guidance, and performance and the assumptions underlying those statements, market growth, the benefits from the use of V
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 $1,600 Subscription Revenue Services Revenue 1,415-1,420 $1,400 260-265 $1,200 1,104 $1,000 862 208 $800 690 168 $600 551 131 ~1,155 110 896 $400 695 559 $200 441 $0 FY 2017 FY 2018 FY 2019 FY 20201 FY 2021 Guidance2 Y/Y Growth Total 35% 25% 25% 28%1 ~28%2 % Mix Comme
Slide 5: Total Revenue – Quarterly
Total Revenue – Quarterly $million $400 Subscription Revenue Services Revenue 354 360-362 $350 337 312 65-67 70 $300 281 67 267 57 $250 50 54 $200 $150 284 ~295 254 270 $100 217 227 $50 $0 1 2 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Guidance Y/Y Growth Total 27% 25% 34%1 38% 33% ~28%2 % Mix Commercial C
Slide 6: Subscription Revenue – Annual
Subscription Revenue – Annual $million $1,400 Vault Commercial Cloud $1,200 ~1,155 $1,000 897 ~585 $800 694 560 469 $600 441 395 $400 357 308 ~570 $200 428 299 133 203 $0 FY 2017 FY 2018 FY 2019 FY 20201 FY 2021 Guidance2 Y/Y Growth Total Subscription 39% 27% 24% 29%1 ~29%2 Commercial Cloud 19% 16%
Slide 7: Subscription Revenue – Quarterly
$million Subscription Revenue – Quarterly Vault Commercial Cloud $300 284 270 254 $250 227 217 145 $200 142 135 112 115 $150 ~ 295 $100 128 139 $50 105 112 119 $0 1 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Guidance 2 Y/Y Growth Total Subscription 28% 27% 33%1 36% 30% ~30%2 Commercial Cloud 15% 15% 30%1 3
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% 70.5% 71.4% 83.8% 85.5% 79.8% 81.2% 33.2% 29.8% 29.5% 28.1% 1 FY 2017 FY 2018 FY 2019 FY 2020 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 75.8% 76.1% 75.4% 72.4% 74.2% 86.1% 86.5% 84.4% 85.0% 85.6% 30.9% 32.5% 30.5% 34.0% 19.1% 1 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Fiscal Year Ending January 31 A reconciliation of GAAP to non-GAAP measures i
Slide 10: Non-GAAP Operating Income – Annual
Non-GAAP Operating Income – Annual $million $600 $500 $400 $300 540-545 $200 412 307 $100 220 173 $0 FY 2017 FY 2018 FY 2019 FY 2020 1 FY 2021 Guidance 2 Non-GAAP 31.3% 31.9% 35.6% 37.3%1 38.0-38.5%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 $160 $140 $120 $100 $80 144 138-140 130 $60 104 112 103 $40 $20 $0 1 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Guidance2 Non-GAAP 38.9% 39.7% 33.2%1 38.5% 40.8% 38.1-38.9%2 Operating Margin Fiscal Year Ending January 31 A reconciliation of GAAP to non-GAAP me
Slide 12: Operating Cash Flow – Annual
Operating Cash Flow – Annual $million Operating Cash Flow excl ETB Excess Tax Benefit (ETB) $500 $450 437 $400 50 $350 311 $300 46 $250 233 ~475 $200 46 387 $150 265 $100 187 $50 $0 FY 2018 FY 2019 FY 2020 FY 2021 Non-GAAP Guidance1 OCF Margin 27% 31% 35% ~33%1 (excl ETB) Fiscal Year Ending January
Slide 13: Operating Cash Flow – Quarterly
Operating Cash Flow – Quarterly $million Operating Cash Flow excl ETB Excess Tax Benefit (ETB) $300 282 20 $250 236 14 $200 $150 262 222 101 105 $100 17 22 62 $50 42 9 39 32 84 83 12 11 15 53 30 17 28 $0 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Fiscal Year Ending January 31 Excess tax benefit
Slide 14: Calculated Billings – Annual
Calculated Billings – Annual $million $1,600 $1,400 $1,200 $1,000 $800 ~1,500 $600 1,193 947 $400 745 599 $200 $0 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 Guidance1 Y/Y Growth 32% 24% 27% 26% ~26%1 Fiscal Year Ending January 31 Calculated billings is defined in the Appendix. 1 Guidance issued on Augu
Slide 15: Calculated Billings – Quarterly
Calculated Billings – Quarterly $million $600 $500 $400 $300 519 $200 394 334 305 247 234 ~245 $100 193 157 $0 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Guidance1 Fiscal Year Ending January 31 Calculated billings is defined in the Appendix. There are numerous factors that make year-over-
Slide 16: Cash, Cash Equivalents, and ST Investments – Quarterly
Cash, Cash Equivalents, and ST Investments – Quarterly $million $1,600 $1,400 $1,200 $1,000 $800 1,432 1,495 1,495 1,381 $600 1,087 $400 $200 $0 Q2'20 Q3'20 Q4'20 1 Q1'21 Q2'21 Fiscal Year Ending January 31 1 We acquired Crossix and Physicians World for $427.2M in cash and $41.4M in cash, respective
Slide 17: Employee Headcount – Quarterly
Employee Headcount – Quarterly 4,500 4,000 3,500 3,000 2,500 4,024 3,501 3,667 2,000 2,827 3,012 1,500 1,000 1 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Quarterly Net 182 185 4891 166 357 Additions Y/Y Growth 19% 21% 37%1 39% 42% Fiscal Year Ending January 31 1 Reflects 384 employees added from the Crossix and
Slide 18: FY 2021 Guidance
Guidance Total Revenue $1,415-$1,420 million Crossix and Physicians World Total Revenue $90-95 million Subscription Revenue ~$1,155 million FY 2021 Guidance Commercial Cloud Subscription Revenue Vault Subscription Revenue ~$585 million ~$570 million Non-GAAP Operating Income $540-545 million Non-GAA
Slide 19: Q3'21 Guidance
Guidance Total Revenue $360-362 million Subscription Revenue ~$295 million Q3’21 Guidance Services Revenue Non-GAAP Operating Income $65-67 million $138-140 million Non-GAAP Fully Diluted Net Income per Share $0.66-0.68 Calculated Billings ~$245 million Guidance issued on August 27, 2020. We are not
Slide 20: Appendix
V Appendix
Slide 21: 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 22: Reconciliation of GAAP to non-GAAP Measures
Reconciliation of GAAP to non-GAAP Measures FY'17 FY'18 FY'19 FY'20 Gross margin on total revenues on a GAAP basis 68.5% 69.4% 71.6% 72.5% Stock-based compensation expense 1.3 1.4 1.4 1.8 Amortization of purchased intangibles 0.8 0.6 0.3 0.4 Deferred compensation associated with Zinc Ahead acquisiti
Slide 23: Reconciliation of GAAP to non-GAAP Measures
Reconciliation of GAAP to non-GAAP Measures FY'17 FY'18 FY'19 FY'20 Operating income on a GAAP basis $ 120.7 $ 157.9 $ 222.9 $ 286.2 Stock-based compensation expense 40.8 54.0 76.4 115.9 Amortization of purchased intangibles 8.2 7.8 7.0 10.1 Deferred compensation associated with Zinc Ahead acquisiti
Slide 24: Reconciliation of GAAP to non-GAAP Measures
Reconciliation of GAAP to non-GAAP Measures Q2 FY'20 Q3 FY'20 Q4 FY'20 Q1 FY'21 Q2 FY'21 Gross margin on total revenues on a GAAP basis 73.7% 73.9% 69.7% 71.9% 72.5% Stock-based compensation expense 1.9 1.9 2.0 1.8 2.5 Amortization of purchased intangibles 0.3 0.3 0.7 0.5 0.4 Gross margin on total r