Slide 1: Q1'23 Quarterly Results
Q1’23 Quarterly Results June 1, 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 June 1, 2022 about Veeva’s expected future financial results. Estimating guidance accura
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 2,165-2,175 $2,000 1,851 420-430 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 529-531 505 476 485 $500 456 434 103-105 90 102 89 95 $400 92 $300 $200 396 403 ~ 426 366 381 341 $100 $0 1 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Guidance Y/Y Growth Total 29% 29% 26% 22% 16% ~16%1 % Mix Commercial Solutions 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 $450 R&D Solutions Commercial Solutions 396 403 $400 381 366 341 $350 $300 227 228 218 223 $250 208 $200 ~ 426 $150 $100 158 168 175 133 148 $50 $0 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Guidance 1 Y/Y Growth Total Subscription 26% 29% 26% 23% 18% ~16%1 Commerc
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 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 th
Slide 9: Non-GAAP Gross Margin – Quarterly
Non-GAAP Gross Margin – Quarterly Subscription Gross Margin Services Gross Margin Total Gross Margin 75.4% 75.8% 75.3% 74.5% 74.8% 85.5% 85.9% 84.9% 85.4% 86.0% 38.0% 34.4% 36.9% 31.3% 26.6% Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 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 $400 835 759 $300 583 $200 412 307 $100 $0 1 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
Slide 11: Non-GAAP Operating Income – Quarterly
Non-GAAP Operating Income – Quarterly $million $250 $200 $150 $100 192 199 200 201-203 181 186 $50 $0 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Guidance1 Non-GAAP 41.8% 42.1% 41.9% 38.4% 39.5% ~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 Non-GAAP 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 Non-GAAP 31% 35% 32% 38% ~34%1 OCF Margin Fi
Slide 13: Operating Cash Flow – Quarterly
Operating Cash Flow – Quarterly $million Non-GAAP Operating Cash Flow (excl ETB) Excess Tax Benefit (ETB) $500 478 481 17 5 $450 $400 $350 $300 $250 461 476 $200 $150 119 105 113 95 18 10 $100 22 68 17 54 $50 22 101 103 11 83 78 47 43 $0 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Fiscal Year En
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 June 1, 2022 Copyright
Slide 15: Calculated Billings – Quarterly
Calculated Billings – Quarterly $million $900 $800 $700 $600 $500 $400 804 688 $300 499 ~ 480 $200 421 406 305 319 271 $100 $0 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 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 $3,000 $2,500 $2,000 $1,500 2,839 2,264 2,351 2,376 $1,000 2,150 $500 $0 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 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 5,685 3,000 4,926 5,182 4,690 2,500 2,000 1,500 1,000 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Quarterly Net 184 236 256 300 203 Additions Y/Y Growth 28% 22% 20% 22% 21% Fiscal Year Ending January 31 Copyright © Veeva Systems 2022 17
Slide 18: FY 2023 Guidance
Guidance Total Revenue $2,165-2,175 million Subscription Revenue ~$1,745 million Commercial Solutions Subscription Revenue ~$955 million R&D Solutions Subscription Revenue ~$790 million Services Revenue $420-430 million FY 2023 Guidance Non-GAAP Operating Income ~$835 million Non-GAAP Fully Diluted
Slide 19: Q2'23 Guidance
Guidance Total Revenue $529-531 million Subscription Revenue ~$426 million Q2’23 Guidance Services Revenue Non-GAAP Operating Income $103-105 million $201-203 million Non-GAAP Fully Diluted Net Income per Share $1.00-1.01 Calculated Billings ~$480 million Guidance issued on June 1, 2022. We are not
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 Q1'FY23 Commercial Solutions 366.2 431.7 494.3 593.6 176.6 180.9 189.9 197.5 744.9 207.8 218.1 223.2 227.3 876.5 227.7 R&D Solutions 74.6 127.7 200.1 302.7 93.7 102.6
Slide 22: Appendix: Definitions
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 23: 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 24: 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 25: Reconciliation of GAAP to non-GAAP Measures
Reconciliation of GAAP to non-GAAP Measures Q1 FY'22 Q2 FY'22 Q3 FY'22 Q4 FY'22 Q1 FY'23 Gross margin on total revenues on a GAAP basis 73.2 % 73.2 % 72.8 % 72.0 % 72.4 % Stock-based compensation expense 1.9 % 2.4 % 2.3 % 2.2 % 2.2 % Amortization of purchased intangibles 0.3 % 0.2 % 0.2 % 0.3 % 0.2
Slide 26: Reconciliation of GAAP to non-GAAP Measures
Reconciliation of GAAP to non-GAAP Measures FY'19 FY'20 FY'21 FY'22 Operating cash flow on a GAAP basis $ 310.8 $ 437.4 $ 551.2 $ 764.5 Excess Tax Benefit (ETB) (45.8) (50.4) (80.7) (56.2) Operating cash flow on a non-GAAP basis $ 265.0 $ 387.0 $ 470.6 $ 708.3 FY'19 FY'20 FY'21 FY'22 Operating cash
Slide 27: Reconciliation of GAAP to non-GAAP Measures
Reconciliation of GAAP to non-GAAP Measures Q2 FY'21 Q3 FY'21 Q4 FY'21 Q1 FY'22 Q2 FY'22 Q3 FY'22 Q4 FY'22 Q1 FY'23 Operating cash flow on a GAAP basis $ 105.3 $ 95.4 $ 68.4 $ 478.4 $ 119.1 $ 113.0 $ 54.1 $ 481.0 Excess Tax Benefit (ETB) (22.1) (17.3) (21.6) (17.5) (17.6) (10.4) (10.7) (4.9) Operati