VEEV - Earnings call transcript Q1 2020

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Operator

Good afternoon. My name is Chantelle and I will be your conference operator today. At this time, I would like to welcome everyone to the Veeva's fiscal 2020 first quarter results conference call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. Instructions]. [Operator you. Thank

of Head you begin may Rick Investor conference. your Lund, Relations,

Rick Lund

fiscal welcome ended quarter And afternoon. XXXX April to XXXX. quarter Good the Veeva's first for earnings XXth, call

Executive call SVP Shawah, Commercial Cloud; our Gassner, on President; Cabral, of are Tim Financial me Wallach, our today's our With Chief Chief Officer; and Matt Paul Peter Officer.

on course statements of strategies based our anticipated materially. performance current regarding the will of These management's and various conference statements uncertainties. Actual we call, expectations subject this the results and trends, During will may forward-looking forward-looking business. and differ make views to and the be are risks

Please refer at on www.sec.gov. website on at our and in most website release to recent Investors the www.vivo.com filing SEC's under the earnings company's the XX-K, the section available listed our on and risk is included in the factors Form risks which

after If during obligation current XX during information. any is to replayed Forward-looking today, of statements Veeva forward-looking revise or are update viewed statements. May the as made being not any this disclaims contain call call made may today, the information XXXX. accurate call or or the presented

provide guidance any guidance during call, updates but on will further in performance we not the forum. on provide our do unless today's or quarter so will public We a

this today's Form discuss before SEC on in exhibit to On A found an reconciliation results. financial with non-GAAP X-K call. our the GAAP aid metrics can website we filed the understanding will be of our certain which in as to call, release, also that the the is just and we believe metrics earnings comparable available

it and Peter. us over to that, With you thank joining I will for turn

Peter Gassner

everyone Rick. today. us And thanks for joining Thank you, to

up guidance. margin another our year-over-year. results I'm operating XX% non-GAAP and was great Total Subscription was million, $XXX quarter our XX%. with pleased for grew revenue year-over-year the to XX% quarter revenue of ahead report

for our thank your team It Congratulations year. to Veeva the to was an you outstanding start customers and continued to the partnership.

quarter. QX where some side the the share starting highlights on commercial of excellent business I'll another had we

market added the SMB extend core in at and Veeva Many Veeva continue purchased We OpenData time. in on also the US both CRM Europe. the customers leadership same We of CRM. side to these new our many customers

good CRM enterprise global rollouts made progress also We with existing customers. in

also add-ons adoption. and saw Engage to Align, further well. continued CRM management, Events do

top Europe For with after in added initial example, XXX last users a year. XX than their Engage success pharma pilots more

With the of biggest date hosted was We Commercial weeks industry. more in Summit it to our ago Philadelphia. its X,XXX kind event a largest the is our attendees, few in than and

one of The community sense of and great. feeling year. get Summit. of was and It's ideas from and a always customers lot our of We energy the our highlights

the major instance, In commercial and doctors. Notes, of announced CRM Summit relationships for manage themes better of Approved of the risk to use Veeva taking The CRM, success notes, emerging compliance areas text cloud. AI field a were with our reps way will multiple which providing use free in AI reduce customer we to

Customers are innovation Approved investment CRM our Notes overall. about early planned continued year. excited is release core will and Notes and for of next Approved CRM part our and subscription be in

provide first artificial Commercial, intelligence advanced Veeva in action next and year's we designed best desire AI customer Veeva last recommendations more Summit, is strong Andi. and At build we would is an do In right Andi insights there to analytics. with our announced application, CRM. a application AI to Veeva

at great a of Andi announce We are I'm is early about adopter lot a pipeline developing Andi and happy Summit candidates. discussions to had now available. that of

Overall, it was another Summit. Commercial great

with each saw products more with was a early continued new XX application and we success record. quarterly new Vault to across strength Vault. customers, including QX, In Vault Turning momentum Veeva We added area, established which products. almost

deal proven enterprise looking CDMS. on XX product a We big for a solution customer and for The is our was EDC for first a platform. for cloud This top the Veeva. milestone won

of EDC handles customer well entry, protocol enterprise ways offerings some The existing our and our innovative true as data systems are Data The and the data for older Workbench. cloud data and review, are system comprehensive cleaning amendments, liked reporting also with not as vision applications.

in customer They The areas nine past and the for delivered because and completed that went months Veeva with trust in well. had some R&D have years, in our pilot multiple in commercial. them eight the success both studies teams over CDMS last

quarter, move with forward multiyear for they to last decided So, CDMS. a enterprise deal

for great Veeva. was This win a

and ensure is the to of project it our company top in to CDMS. this use of success to One priorities innovation drive

We clinical and a for XX,XXX for the with just with customer deal in around a Vault multi-product also XX regulatory Europe the top QualityDocs Vault over live in signed This users went world. areas. pharma

great product teams to This After decided to example success way the and customer implementation, with they go submissions working the with future QualityDocs our a submissions archive. and services of business. on leading eTMF is forward

days growing adopter small have first We four pleased our overall with maturing It's newest and for I'm development every companies, Safety, product we adopters but still signed Vault Safety cloud. and these our pipeline for is early in small were early line of our also progress. have day candidates. early deals a Product with

modern industry. is mission-critical and other a the applications, integration points with will application Vault for a sciences. great on our a for a having so complex single thing is have solution It's life Safety many platform

our we of are and life concentrating a sciences Turning application, announced chemicals, where We recently consumer on Claims. cosmetics. outside goods, Vault new to business

speaking marketing real creation claims management we for saw a help to a will to usage. claims application. customers, lifecycle, Claims need manage the QualityOne from When with early product approval

have project a customer discussions XX at new top CPG We a early already with have and underway others. started Claims

customers. well, existing and Progress with continues new as QualityOne both in customers bringing on expansions

company. quarter, For closed cosmetics this an major with deal QualityOne another example, we initial

companies While still consumer that and our are responding offerings early, in we're finding cosmetics. to chemicals, goods, product

exceptional well executed and quarter. traction across new We another on in all In markets. had great areas, excellence, closing, customer success and focused we had product

I'll review With Tim to to in results over more turn that, detail. our financial it

Tim Cabral

$XXX revenue was represented up million up revenue, Thanks, total Peter. XX% from million, in consistent over year nearly another of Vault nearly from year. company. execution last a across QX QX quarter increase. $XXX ago, XX% the of XX% was of one Total

compared million, bookings, million million last XX% Subscription $XXX Outperformance last quarter, to QX from in tailwind year. from year. favorable was a very revenue dollars bookings XXX $XXX a those strong grew this a of by of linearity metric of driven more as to couple and

services was roughly flat continues from expect primarily to million, Services to with roughly services $XX $XX revenue Strength XX% R&D revenues from in be revenue QX. one come projects. I almost QX ago. up year million Vault

came by $XX income XX% high end operating non-GAAP on top line. This million, guide. Our driven primarily the was operating above in was the outperformance our over a margin, which of

company, XX ago. added year the one in Across net the people quarter, we X,XXX from at finishing up X,XXX,

the $XXX outperformance ahead was strong million, primarily compared at of QX. to million revenue of our for $XXX quarter at billings came Calculated to sheet, services deferred in million. end which in $XXX the Turning by bookings and driven million This of was was guidance $XXX revenue. balance the first result

an date million calculated QX. to for rate calculated considering this, that billings XX% have growth calculated for When included $XX that of in rate, that would Adjusting subsequently the year-over-year first renewal large last quarter. year XX%. The been remember a growth billings in please quarter was its year-over-year QX renewal growth customer of the billings of shifted

the momentum internally. Please a are to this underlying of that numerous it make good it remember do Therefore, of and a year-over-year on that variable do of factors basis. indicator metric there is manage we comparisons quarterly believe highly business we our not not

revenue are billings Our momentum. guidance the indicators guidance for subscription and the full of fiscal calculated best our year

of to which a billion an guidance the $X.XXX expect we QX billings billion full is ahead, million calculated in from $X.XXX roughly increase Looking provided $X.XXX last $XXX year, of quarter. the for billion and range

to XX% expect of We in QX. billings our come year continue to for the to about XX%

came equity $XXX the by balance This at on included cash sheet, end tax QX. which operations, in exited in million billion and billion to compensation. at benefit in QX cash Elsewhere driven and the up almost was of related with increase from over million investments, in $X.X excess performance $X.X our from short-term $XX we

to to increase million our this slightly now This an from more the tax from benefit. For excluding is full excess than benefit. $XXX cash for tax expectations operations year, excess expect previous we million $XXX the $XXX be excluding million,

sharing by up wrap outlook for and for rest me of quarter next XXXX. the Let our fiscal

non-GAAP expect of net share between For income on quarter, $XX and share $XXX the to a revenue XXX.X million. operating of income million diluted million non-GAAP per $X.XX second of million, fully $XX count approximately based million, to $X.XX we $XXX and

million previous billion, increase in the range of guidance. year, billion we a revenue the representing to our from $XX For expect $X.XXX $X.XXX

subscription that, within of And roughly expect least revenue revenue growth revenue at to Commercial and XX%, XX%. roughly grow Cloud We expect XX%. Vault subscription growth subscription of we

For $XXX from previous fiscal to a million an margin and and both non-GAAP $XXX dollars guidance margin of margin XXXX, almost in a is of we about $XXX XX%. XX%. million of increase This to our $XXX of income anticipate million operating million,

move guidance, note litigation consider cases. as have we expecting year into an you the hiring of for plan increasing that are we rest our next the As this margin fees we and aggressive the phase of

We a XXX $X.XX of $X.XX of fully non-GAAP million. on per share and targeting share are count now based diluted net income between approximately

to start great a was it conclude, To the year.

to forward industry deliver and our success. continue teams teams to product with customer Our field continue the innovation lead

this growth execution, calendar confident our XX% consistent ability through Given XXXX. revenue we in to least deliver remain subscription at

joining back operator As the call now always, will I questions. it you for to turn thank the for and

Operator

Instructions]. [Operator

first Your with from Roderick question comes Tom Stifel.

is line open. Your

Tom Roderick

questions. Thanks my afternoon. for Good guys. Hi, taking

your wanted again. It here question So, a first land looks ask pretty to you could about -- talk quarter exciting And I get on tremendous I top hoping that CDMS was to clinical like XX the see bit the more. first side. deal. little a just enterprise Vault

question, sort first, course, being Two the of that parts to dynamics. competitive of

change been competitive or in about As product? dynamics were gather while. fix sort talk I you the of this there, you've a on what that that for customer probably were or to with the got top what you to looking to over they Can you went

set secondarily, those those think get how CTMS? of compare to, about the deals top opportunity sort compared XX say, within into you as enterprise-wide? the Are of wallet larger then, at did CDMS, CDMS as And share you a

Peter Gassner

is Thanks, Tom. Peter. This

customer the deal, of is one for that longstanding As This far many enterprise Veeva's that had as we're and CDMS of had competitive. the large players years. competitive a for the certainly for landscape

formal but a there there was process, selection process. RFP So, certainly was no

were – they chance looking can they And more they collect do sites. have The terms critical companies. to trying them very and process accurate quickly. faster research completing clinical pharmaceutical and CDMS They're what of these is better clinical trials really completing data the in from for, of the a it, for it's their

So, it's application. a really, really mission-critical

and collection data better had that system true-cloud workflow. a needed just they And

a a and really great. better Just system overall to chance be

think great. that's for, they a what looking to is chance were I be

So, it's competitive and we won.

is In larger terms is or the CTMS bigger, wallet – deal CDMS and bigger mentioned size application larger than than the you application sorry, of a CTMS. of the share, a

roll idea, full the to at and So, an it's you deal. rollout, it per an deal. this a out eight-figure give year over time; multi-year be It deal, will will

certainly Vault a largest application. it's us. application single our significant So, area for It's

Tom Roderick

thinking And have decision That's bit Fantastic. and of a of already separate reps given really do resource be other that sales a of to sales you in to CTMS seems in makers. you little rep products? eTMF, this a the worked a to in opportunity, same as clinical a that But you've hard about that land or of I nicely similar need bag great. just different and top worked category that's has separate does conjunction maybe This with go-to-market XXs integrate know on lot the standpoint, quick sort been these the independent workflows. there right go start existing strategy the a selling you follow-on from

Peter Gassner

area, This different have I'd say different clinical which area, management CTMS is data the and of area you than a the both. where it's Yeah. combination operations is will clinical eTMF. a

team. So, and We but with pharmaceutical the specialized do R&D specialized product a company. need consultants salespeople, different they certainly the area broader of it's sales work

then specialization of R&D to tying Veeva combination people a for Vision. the broader certain it's So, it and together

Tom Roderick

deal. this on Congratulations back Thank queue. in Wonderful. you, I'll jump the Peter.

Peter Gassner

Thanks, Tom.

Operator

comes from Securities. with question Ken next Your Wong Guggenheim

Your line is open.

Kenneth Wong

I Hey. also wanted guys. Thanks a for focus I bit on guess taking my to Vault. question,

raised guys outlook You XX%. there subscription the to

CDMS, Also, dynamic? called some customers. you the Vault changed kind signed faster of mature. an of pipeline you in out what's customer. it like is new that Is wondering growth guys it guys sounds getting more Just enterprise

to figure out got takes Just the you what kind puts of trying the to higher that are and number.

Tim Cabral

is this Ken, Yeah. Tim.

QX represented for a is of all Vault. think things. those It bit. strong very year answered question to a I a you the combination sort the Certainly, of start

across products a also the quarter, entire contribute seen We across the we the And are good a the eTMF in that quarter, great a contributing had development meaning cloud. quarter very and we've good had are past, quarter, ones good had seeing had on a strength the CTMS board, Regulatory. QualityDocs

strong to guidance only and to start the but year XX%. roughly revenue guidance subscription the to revenue raise us So, Vault across-the-board a roughly really subscription strength not overall enabled the XX%,

Kenneth Wong

little focusing bunch Thanks, for opportunity Peter that Matt. Veeva Tim. maybe these a that on while for have you or it does going on to be QualityOne Can further markets more a down out little kind have whether this line? something the And to some then, it. you're have for make aggressive still aggressively a now a you portfolio it not Got you in or or guys is sense feels a The more guys you that X.X guys are there? accelerate to verticals. bit, touched now, the talk being like of investments now And broadened those of about

Matt Wallach

Ken. It's Matt. Hey,

being market in segments. So, we've And teams. just markets. We've announced we've for and continued salespeople in the three people on we're product to Europe. first And aggressive aggressively specifically to product those these added that add the US already

already. like feels it being So, aggressive we're

there a crank. are goes also more rep parts turn not still right application lot, the sciences but those we're Now, easy, learning on we are of life the that bag moving So, is and these. – are we that this in just the everyone just Not reminding right? another

and super multiple selling. we learn. making would early that a say, And so, to and being in in after segments, now multiple and that are with there's market aggressive reference multiple But sure we're product, we going are of companies the still a use types start new products here for because already customers brand that I us successful lot

Kenneth Wong

Perfect. Thanks lot, a guys.

Operator

next Blair. comes Your with question William from Bhavan Suri

open. is line Your

Bhavan Suri

how And congrats. wanted for to a business Hey, of touch the Thanks question. guys about of little think you taking Vault the there. guys. bit on my I growth sort just breakup and

think the customers customer both you double now over count maybe you Vault growing they that existing you. the thinking you're obviously, forward Vault, and with past cross-sell customers touch, how the versus Can Vault and expansion years between if the growth So, about and you, adds almost of fast count. customer expand about formula or CRM going Thank how new few and just within really existing on Peter/Tim, new base?

Matt Wallach

Matt. is this take actually Bhavan, I'll that one.

the of So, come because companies is large the majority top vast to we customers, already, existing have pharma incremental going so customers. many of revenue XX from

So, just going dynamic for forward. Veeva the be going to that's

hopefully Those it We and we looks track have the we're XX eight-figure like relationships. end by significant target really – a that. customers for of of XXXX are had on multiple

on for benefits and of They because get benefits, enterprise tremendous IT And when get they product one more a customer single an benefits, another they same Veeva, the existing get customer Vault, good from they get the it's having for administrative it's buys there's business of many certainly source truth. advantages that great so having but platform.

from of larger be So, long terms because to of But important. have always tail customers revenue, in a existing incremental smaller so it's customers going many. also is we the number

Some customers to become big. are going of those

could Some they of go competitors get help with large. customers, competitors if those

customers, the But I every time. is are over us see angle. and companies we'll to those large important from So, from different going to story that come revenue existing think

Bhavan Suri

CRM like also add-on? a think or one Align serve in suite, that on of halo Got you. rest Peter. is Nitro – AI, Got effect about or When and Andi Matt, general, it. for Andi or whether and the the a specifically, And it's it. on CRM you maybe, this AI Maybe can

I the And a how So, follow-up quick can an a of sort think on of Vault that guess, number a that, AI is, to or then, submissions, that side early? side, automate in similar you AI particular like introducing we right? got is seeing appetite that. on X for I've do about steps still engine regulatory, the part and we optimize can that are you of

of I of there and of guess, core for you. interest and optionality Vault halo the AI sort side, working just the first, with that? So, side the is obviously on Andi getting effect CRM Nitro; on what B, sort and Thank then,

Paul Shawah

question. is Thanks This Bhavan. Hey, Paul. for Yeah. the

So, on Andi…

Bhavan Suri

Paul. Hey,

Paul Shawah

to speak. Yeah. Good

product We the is actually on we of at it. showed we Summit. customers So, this year, Andi. team on a at this we something to interest. attend and year a focused we a announced our tremendous time, Summit real this hundreds was the customers a sessions life didn't at ago have have And there and had then, demoed And and focused didn't product product

there of effect for a it product the excitement potential is because and very So, significant the deliver. the halo can around what

customers, a on will sales actions really customers. uplift to is we suggestions, delivering potential Andi significant best have a have next believe focused on which impact for our to

a lot early lot on we of excitement, our So, out lot of and next are deliver months. off Andi That's adopter for of there's can the a us. couple kicking over of we're for that what potential improving focused which a there's program next in

In thing into concept is just beyond – embedding I'd one say around terms the the application. the of AI just of other Andi

So, notes to super extremely using space – AI compliance CRM customers. Notes, free one text that that in and they alluded better resonated big the at to the comments. and the to had we're they called two in use use visibility That sales to reps We'll that have That's Peter which we all better AI to valuable well. drive in their compliance around also announcements, drive Approved is compliance Summit, where as system.

in with Auto Vault Claim the we're as PromoMats side, Vault AI starting on doing Linking. also then, And mentioned, you

have that the to about means you that a a to specific reference material. underlying that is back make link you what product, claim So,

So, we're interest already of of in we're getting some in that terms the Vault and strides think I see you'll embedding making and around for and already more in that AI excitement there, future.

Bhavan Suri

That's really in. more cool. squeeze might I one

as is years process gets term? that teams that an and you or obviously, quality about life management area that something OLS are So, and [indiscernible] think the in quality QualityOne embedded where we AI and too, outside quality is down road near are interesting two – sciences, talking

taking Thank thanks my for questions. And you.

Peter Gassner

In sciences – this terms there. still Peter is life of of – we're outside early

quality, how I I going how lot. need our to in What's is were regulatory relationships. new that? I change tackling learning do is a that on have I If we're have process, do customer is developing compliant that deep I We're on basic a can to need And to all my is we complaint in legal/regulatory what So, we're product. sciences life for blocking very different outside a the a integrated in So, claims claims there of they need of and together platform. I finding new set how partner companies. same to can What and way? filings do claim change area product? How about a register ingredients, I countries? making a for related. in packaged the this If label, a need things highly that have regulatory, fast And consumer get things, do like clinical the this When product, claims quality, a approved? am goods on I the of do

future. but will not in life So, immediate outside that's on. of the what sciences, we're come focused AI

Bhavan Suri

questions. guys. you, Got Thanks congrats. And it. my Thank for

Peter Gassner

you. Thank

Operator

Your with comes J.P. from next question Morgan. Sterling Auty

line Your open. is

Jackson Ader

tonight. can for actually phases be is side, on new Ader Jackson Is It's rolled does our be to CDMS going how a all us out trials on win, Question more to going guys. bit forward? enterprise-wide little to it like? look when CDMS Hi, color going What that give just new an from talking thanks. all and about you Veeva? we're Sterling Great,

Peter Gassner

Yeah, management the management in that take can that deal there's has work I And the inside clinical type side many systems it people system, too. to phased do that groups the the from research monitoring. that data to with to different there's data many statistical in also the people people the in people because, these Yeah, customer be one. with clinical of people

you because So, there it. will train up people get and going them be have a to phased approach on

XX from related point, for on the going will at the new now ones two trials in trial example, or be system, and system Yeah, be you're it clinical therapeutic all it put to so existing years break it area some you where long That from add-on trials, you a to of all now. some little off reuse may system. have be the all have on on That's started months going a between will Because, hesitant on of how and new multiple Veeva. take. or sort

You're trials. going to family with of related to want keep the that other

system. thing, expect – nuanced but a to we would of now, years two it's the on from the certainly bulk in So, trials the be our

Jackson Ader

possibly a sense. talking lot think subscription And figures? a total Is I That made contract you an clarify, of these for on Is just or value? makes eight we are annual timeframe the we types about deals about? basis? then, comment being Okay. that What of Peter, kind of CDMS can that

Peter Gassner

was Yeah. basis an I how basis it's subscription up, figures specifics When at eight on that out years, getting – fully many and that's That's the at there fees the into rolls quoted run rate. annual ramped annual several an years. not the for of over the terminal. but But figure – the on terminal

Jackson Ader

right. Got us. you. Thank That's from All you. all

Peter Gassner

you. Thank

Operator

comes with Needham. from Your next Berg question Scott

Your is open. line

Scott Berg

of Hi, a an outside couple I everyone. and have Congrats to here. life a great sciences I the follow-up extension quarter. of a kind one questions. on a guess

customer bringing that Can going types Safety of forward? some there of I there. You're imagine are between claims sets. similarities life outside sciences set would those

Peter Gassner

will. will. it Yes, Safety

are large interest drug versus bodies that's Safety will We us life safety the is it going life have and keep – And to for inside that of sciences, [ph]. the something the feel different, a safety a Now, that's not mission-critical outside applications. for it's of product products is really busy. sciences, immediate that the And safety. because different consumer to flavor process of different it slightly regulatory

out safety probably years outside sciences. we're life of for talking So, couple a

Scott Berg

question, seeing Tim, little the in follow-up quarter, margins company just my I probably for and a has was operating kind reviewing but of that bit model nitpicking on And a XX% Great. current the around are a over been any kind percentage spend and there flat G&A? years. Thanks. look last leverage at relatively three you not I of of the revenue why it's as the

Tim Cabral

say in seeing are we're couple also, the as leverage I for hiding we're that Yeah. seeing on G&A. within lawsuits and litigation a we in seeing prepared But would that leverage mentioned Scott, the G&A. I of increasing my we're working remarks, fees is

Scott Berg

Great. I all That's have. Thanks for taking my questions.

Operator

comes Stanley. Your with Stan from next question Zlotsky Morgan

Your line is open.

Stan Zlotsky

Hey, this are gentlemen. be on newly people for going guessing planned good see acceleration Good Maybe you ago. year over it's to versus don't Matt, afternoon. call. case. hear in acceleration that really many the your expecting here a And, I to Commercial XX% year, question this to one. Cloud, an think is just to the I'm you last a

new If products you SMB growth adoption they would any were customers, by to be? Engage, rank Events, the other it drivers in of Would like the Cloud, continuing be add-ons? what Commercial

Matt Wallach

the Thanks out. Paul Matt. I'm Stan. question answer actually now. is Hi, Yeah, this let for call the to going

Paul Shawah

Matt. Stan. get one steal Paul. How This is I this are Hey, to from you.

in as So, to and any yeah, strength strength add-ons general. the the particular. from one I CRM – in attribute – in thing actually broadly in really I'd you've excellent quarter across is really heard. Commercial in Commercial, the wouldn't

they as to expanded into be global existing from saw in customers we rollouts markets. completing went new more customers, CRM, global and their significant who So, expansion were specific,

get customers and launch saw seen those side, they they And build also out and to team. majority the We've they deals win continue approval a expansions there also. new vast drugs existing we the growth We SMB of as as on well. sales also, from

that talking that face strength. giving And video add-ons to example, the pull we've traction been we're additional well add to customer and in the customers to how a of to foundation in continuing time to the sell now as foundation us had on building add-ons that through really in to how really face, we to call that they're seen for face. And are access quarter them this is like changing get newer, the from right to other about able is that's momentum our they more at model, they're Engage, never video some to with summit events. face great for than So, then, access doctors, building CRM they're the which that customers, would've selling getting getting they're accessing to speak they've and

see starting we're to the on add-on traction pull-through that So, side.

strength really So, and say pretty that would is the I CRM add-ons consistently.

Stan Zlotsky

Got it. was trying the guidance I for drivers? What going applies presume for to to as was would accelerate at your Cloud the Commercial full right, to far the forward I rest the And still answer year for XX%. the get of year, as

Paul Shawah

correct. is That

Stan Zlotsky

Got it.

Paul Shawah

be Yeah, would drivers right. those [indiscernible]. Yeah, that's

Stan Zlotsky

How and despite doing? quick we're in out practices competitively on And the a Great. How product in it. doing product early is like is heard live. got Okay, restrictive call, already had Nitro the that follow-up. adopters maybe couple We you that a – the QX the space? there six were

Peter Gassner

Yeah.

is customers So, live. doing of go early a the quarter really And couple we well. Nitro had

about customer promo their metrics very to the from office the In into getting summit. is two benefits main fact, we One that putting had foundation three customers speak in presentations out field, which our detailed getting stage shared Nitro, and they're for then was at faster, the AI. on

our behavior So, of on that We're is some anti-competitive there very IQVIA. also from growth and the really unfortunately We're customers, measured. early still we the success are also. customers seeing have to early Nitro some well. adopters doing the added early market. customer We've in That adopters, focused

so And an we're impact for with headwinds get far. some that But, hopeful Nitro. creating that able that's has that So, to us been we're resolved yeah, over time.

Stan Zlotsky

the largely skewed maybe in a margin with bit heavily quarter, Thank you. from any last in more to it quarter And operating the operating Tim. the hiring hiring to a me. throughout. And one little when maybe outperformance versus back that's of performance the revenue the kind margin Perfect. seen this it there half quarter? the of coincided usually being degree, bit little more mentioned outperformance. Because for strong Was Tim, we've it's you linearity linear

Tim Cabral

for perspective. question. thanks quarter really We hiring good the Stan, from had Yes. a a

linearity. I the think I it it probably overall, strong relates of loaded bit in revenue impact million my one right. quarter. outperformance back-end think Stan, say know more as probably There a you did to last than little was XXX% this, you're a thing is that of very And, couple I was on is, But, that more had subscription prepared remarks, revenue year. the margin. especially line seen we XXX The

So, expenses right and no bottom operating sold the that against to goods drops of line really with no it. down cost

But that little So, of margin up in I in the I fairly as we terms starting over forward. the look what like we with last think of half model XX% lastly, that and go second say, would firm also operating operating is was a year benefited what of to saw performance. the the margin consistent operating

Stan Zlotsky

so Thank Perfect. much. you

Operator

Your next James from Stephens. comes with Rutherford question

is line open. Your

James Rutherford

taking Hey, good the A from for questions. afternoon. And thanks couple me.

back kind CDMS space? competitor in deal – of conversations First, announced but nice in starting circle go since Obviously, was favor a against your it's question very change to too push legacy customer and the the perhaps your seen more to that on whether things when you've milestone. win. is But it's that I want curious early, how I'm you

Peter Gassner

Yeah.

oriented, is in management outcomes fact data and a out noticed They in getting it oriented, patients, therapies the industry. community. think certainly to kind I interested patient scientifically are approved. of was getting therapies tight Clinical really the

than community. would flows and communities. in say scientific flows It the fast. I the faster commercial in faster information So, clinical

in We've lot an So, uptick there's conversations. of a interest. seen

customers. me.' thinking, there maybe So, uptick there an I in be could by for 'well, that customers' pilots is in interest, think, is more think I large possible

certainly, or successful whether will be? is But, something people How not, this that XX lot fruition the think are into lot that. over wanting of interest the eyes see And next on Now, I project. a up. of that's months. a we'll will to There's know that it turn

James Rutherford

Okay, that's I if may. helpful. follow-up then for And a Tim,

contributing, XXXX? and frame think, last million of that curious revenues much I'm think today life what on can of product sciences heard had $XX you. might if I it we over outside to stands up where Thank how said. was contribute ARR is fiscal you I the you

Tim Cabral

Yeah, James. Thanks for the question.

Peter's progress with be of from what you terms Peter that continues in that is remarks, is we're product would and the is. Matt the customers. sciences really strong. the life innovation outside early adopter seeing about good which What contribution year this to said in The I early specifically team, talked what we're our earlier, heard prepared momentum say haven't qualitatively We seeing

We of haven't this the at quantified now. size specifically is what that business time

James Rutherford

thank Okay, much. you very

Operator

KeyBanc Your Markets. with comes Brent Bracelin Capital next question from

is open. line Your

Brent Bracelin

and a Great. the for the The XX%? full and question about Commercials But what would that's to side. of in down the of you've Is you and to grows by that more wanted customers what's increasing most help year Is I one than XX%, Vault on Day? you're is had raising going more Vault the Obviously, demand to close frame both As guide Do Good follow-up. this happening. question lot surprised Analyst the have here. kind financial million. as something this think of mix it again quarter I Veeva afternoon. to given optimism this growth highest what talked a a parts to of the business? year. you to? all-in today, here, attribute about one and on you you increasing a talked And you you of mechanics question just the thanks wanted the the drill on kind Subscription accelerated of $XX byproduct at about confidence taking

Peter Gassner

product, good that's is This overall It's Good Peter. our execution number good execution. in execution field, our in one.

a granted, to We month, grand for what every right? idea those matters A every things every have week, saying, day, quarter. a can't do just is It's most. execution every grand You idea. used say you take we

consistent effort our customers. it's team by by So, the the on. partnership in what's going of bulk think great just That's Veeva I

– that There's and We there's areas. I what things. areas, diverse involved. applications Vault Now, they guess a now specific have XX sets for of other couple very are backdrop a

generally with Customers the Veeva. So, can get I can together, internal are create a that successful are projects operations integrated to I the with they're wow, like working can see, a lot I applications, more efficient halo does effect. be of – starting much and people. and my

So, more any with the bites apple at particular XX customer. with applications, now there's

those the going on. think So, things I are two

continue have with success, grows success. And as every you reputation. long year continued as then to Reputation

the So, success, grows. we longer the have reputation

extra the continuing Veeva customer. hustle We – for have to we the the team products continuing are and mile day, more go is every

real great No So, just but that's it. magic, execution.

Brent Bracelin

helpful. I you. And you. Thank Tim, That's for then, guess,

going seen think and the as get we've as these think Andi more to path it. us to about based and functionality part or add-ons? we products. certainly platform be opportunity as to Just the to usage? of we models monetization around Nitro Thanks. is tied opportunity Nitro the for you As in the use through of people new layer of about Andi, Nitro in those monetization you're Andi, two kind companies to differentiate. around kind other SaaS consumption and Walk What AI revenue tied going weave monetization Are

Paul Shawah

Brent. Hey, Yeah.

So, this is Paul.

Andi. One Nitro You things was was other mentioned two there. the and

and that. AI. opportunity And the of capability. we've CRM. the talked a them around monetization the users be necessarily from. of So, basically, driven And being I'll using data foundation field separately. a that's certainly commercial metric That's concept It's about as will for which the not take warehouse. is size Nitro roughly Nitro a It's what AI driven size is significant for there's a AI by, organization. the We're

for the is monetize engine, suggestions action also directly drives does user, that field. per customers. and on we'll best a well. specific and about a month as basis the in that next That insights and our per drives that that's as to People very talk Andi typically thing. And it industry application

then, AI application. into that heard the talk And the some you Peter building also we're prepared about his in remarks of

efficiency, the compliant, really kind components differentiating about of existing value-adds smart more that or of part are the are smarter of – and just And some some driving application and just making of those are those just more license.

part So, Notes, Vault Claim license. about we talked what CRM And core Auto PromoMats Peter that's part the the what Linking, as of license. about Veeva talked that's is Approved of

are little both So, products of the specific where you some of kind embedded mix bit into a very of application. a see and are then others

Brent Bracelin

And a color. Helpful thanks lot.

Peter Gassner

would that on I broadly just to add speaking. Yeah,

added going Some AI subscriptions. existing be is into the to

are And Some I future AI are applications own. brand pricing we to new be in a the where if surprised transaction-oriented be on fits. AI going wouldn't it their subscription have that

So, thing Veeva is to run the complexity. Veeva remember the – will to

area. the systems. the the can the application case, it use part find case that's the and for use going And it a of pricing transaction-oriented area, to system, does really, as an on AI-oriented really model that really depend is that finding will that on fits in in depend and just We fits that for

Brent Bracelin

Thank you.

Operator

comes with James. Your next Brian question Raymond from Peterson

Your line is open.

Brian Peterson

Hi, gentlemen. quarter. taking on question the the Thanks and for congrats

So, terms XX we that having just as the on just the how that is anything that I'm you record read accelerating of much Vault deal applications that's or in referenced? Or anything can that close rates there Vault with curious actually function wins, into a is of well? sales of velocity

Matt Wallach

This question, is Matt. It's good Brian. a

the logos. was that So, of number new

So, companies that very first their Vault. bought

And so, at going that they of that success other of because it's to customers. is – Vaults be those bought

the se. it So, more help going patients. industry many the be there's to to all by is But goal driving people think overarching in to shots that because The I what same guess, yeah. that life opportunities, I new so there's Vaults? in is more these work contribute of are that it would sciences industry. companies faster is is That that on objective companies per adoption

help I intense they'll if so company do they what is another because, is so, – And referenced selling and find we the help it. can patients, reason why

Vault. about so Vault of customers our prospects introduce companies. use because to has many to are their been to pretty positive a new of we're so happy across getting these So, their opportunity use to And applications, eager of lot talk

Brian Peterson

Got Matt. you Thanks, maybe And, on for Tim, it. Vault. one just

we how investments curious, going forward? service impact margins on having about the Thanks, thinking across guys. that the you're capacity success any be Given and product portfolio, should I'm

Tim Cabral

Yeah.

the on pattern there, have of can best seen lot Brian, pollinator strong team cross-pollinator across you've on So, expertise a be grow the like team. a side good business lot a of obviously, us or industry. in Vault, the domain a Veeva of company a time, a that best we that over Vault of practices services as really And recognition practices

that's So, happening.

through talent only which In certainly which not fabulously Veeva, over our terms to of has of gone capacity continue build years, Generation we couple well accelerated years. that. recruiting We've the our the last college model, is in the engine

people As as well great the in industry. finding

necessarily constrained. So, we're not capacity

US in Asia. and Cloud, to some thing Brian, stages that, over And is, we've Commercial would a ecosystem partners Europe, to the and saw in I primarily, nice built time, one starting of other add quite like early you in

perspective, a those So, capacity good shape we're dynamics. from in given

Brian Peterson

Thanks, Tim.

Operator

Davidson. from next Your Jaluria with D.A. question comes Rishi

line Your is open.

Rishi Jaluria

start my where QMS products QualityOne on Veeva Thanks we existing purpose-built new. of to guys. questions. a brand kind be in looks and for new It solutions to Should into OLS taking expect Hey, wanted and normal? be products I something to versus Claims. of repackaging taking QualityDocs a this them you're idea new

follow-up. bit alongside versus investing in solutions? I've a got you're hit margin And retooling a that, little since of product then, actually a a dollars then, is development And for potential there existing

Peter Gassner

brand rolls the out for the way. specific a QualityOne use It's is case, different the It's is, It a a to from separate application. standalone. of Yeah. reason it that the very new right and it's Vault. different way that users set a is think it, And in claims Vault in about has a

first our claims a example, was customer for from XX CPG So, four customer. top

Now, roll-out needs application own claims it because had own turns in a bought out and way. first they that specific Veeva they it its need from this is the very their on to

customer, believe, buy from and we that other Now, will Veeva time. products over

outside life sciences. now applications hit, other regulatory, and the need terms So, they of for features effort in of and the specific the margin QualityOne

things hit. able costs. that of So, I would in be no margin will small difference terms see to you in see be This overall the won't really

platform at two You look if ago, we are that leverage even have the versus in at effort – striking. the remember Vault of the platform. Vault you of area look our now getting the Vault covers, iceberg platform. you the Like, pretty That a of the where is to is, the most covers if lot under most product that's the in under of effort is our years from maturity it's actually the

we've the operating and a the power tremendous made two, the and the leverage model the sales but You lot years. application Vault the over platform actually of coming last is sales, through three it really see strides of where the

Rishi Jaluria

a maybe wanted to follow-up, And helpful. That's back. just then, it. as step take Got a I

sort target rate run run or $X four overachieved you're XXXX. quarter. next hit billion XXXX, that. $X rate billion you've billion go And calendar of you if going year to out in put that Clearly, for So, your by years $X guidance, ago, target this we

a about schedule year-and-a-half So, margins. ahead of higher with significantly or so

look Vault it back, take helpful. ahead higher to able margins? of were where If schedule was it kind things Was of solutions goal had able of of to particular off taking that go and a else, larger you to hit that with you Thanks. kind Was what significantly you're would areas that a it be it set was Or that expected? as after? like were you anything or

Peter Gassner

That's great right. Yeah. question, a

number our I right? will question is efficient to the there would Nothing actually – think I we've is making efficient thing what gotten got we We've to happened. retained energy. larger. we of had long way, plan, be we news and bad to a range got in acceleration, so some As More you get as think better have we back roughly assume our some some the bad size more that the doubled efficient we've larger. went I in selling And that XXXX, along that I ago we've the right? fact, the XXXX, basic of we And you're guess, than unexpected the grew quite that or now since bad more think. And, expected. would close one company, anticipated so. happened, time say, don't as when plan, nothing

happened well. that's So,

news, good bad to are things break decisions key that process, And just happened probably execution, things. and on had those Outstanding think and the some way, unexpected we I no really would way the there. along so accelerated and got say, our us. that I we

Rishi Jaluria

helpful. Thank Got That's it. you.

Operator

comes next ISI. question with Evercore Your from Kirk Materne

open. Your is line

Kirk Materne

Hi, for quarter. Congrats question. the on guys. the Thanks Thanks taking very much.

the features if of for obviously, as Difficulty] just be on But just they, each probably are compare more you of platform for number almost Would year, go that. Vaults that [Technical some coming about the after get they products are discussions you earlier platform, at I everything on platform are and expect the sort curious are actually based kind talking as a specific about much I'm Summit, customer integrated a that curious the – of companies there the to are of kind along with benefits are point off buys on an just some from we it just are having comments, if specific now and – to that as just year on I'm the last that curious, of Matt's early Given [Technical in they of things meaning more a guys But tips that? bidding if Difficulty]. that was customer your where to, too bidding direction. about heading say, discussion product a this

maybe? Sounds your like curious thoughts but [indiscernible], just on

Matt Wallach

to platform. we I early way. first enterprise we first an Vault, think don't Vault together it's as When I PowerPoint the that remember Yeah. think very put slide invented too was

that could thought was five, I got there six we So, it of we that expected runs the part that that there. four, would electricity we the And we take company. years time. think idea the at before get companies than make faster And did

your The way you asked question is interesting.

platform this two across having the discussion thinking board. think across what second on and the regulatory, we not all. the from first great one, like, hey, systems you second of I think probably I benefit one at you when clinical, the when and internally as, starts least second before quality, been get them commercial, got got if we've is medical, possible application, application major of never the platform, buy that, benefits when which record you're the is the see has the same buy you When my

think deployment. But to is And so, I enterprise-wide do successful think the first don't formula the a project we But companies one a think. entrée way the don't to different. lot here. of good that is successful necessarily an second are And I think have I a

their the had was their a making one PromoMats. then, They employees, remarks with actually that basically world their to QualityDocs, second submissions about decision is and expand went And enterprise the platform. to live as all XX,XXX of And so, specific around example, just we prepared submissions, also it eTMF company an employees with Vault. archive, in talked the

specific So, it answer I this does support hadn't there. way, the but planned that example

Kirk Materne

And on that's maybe just OLS. one Okay, helpful. then, one last

and in certain more the customers covering bigger OLS, terms that sort success. You to outside distribution size always or sales out you in the perspective, and of portion the sure it's from into scale have that number targets on the in where [indiscernible] been of versus industries? Are about that like into more of a there time capabilities ARR of had turn sort us or distribution important on there? more customer might just even guys you're specific your we on that perspective? start are is adding of When has US are really making a to making for a opportunities. of gas meaning key a to get mentioned are Where we a you these the and we success selling from the customer you from away I'm with just – year [indiscernible] there broadly just of focus amount translates curious have on time sure kind or the customers it's distribution having your success coverage focus successful to now just or

Peter Gassner

for We're really success. Yeah. more I introduced example. would the say just this claims on early days. focused we're customer application, We

regulatory new. customers features. but some our have life of in needs using science, it's more It application We outside

through to CPG optimize halfway to but QualityOne top we We than get then have out they're less their of through that. through have that. have rolling and our all sites, that's they XX manufacturing And that

the we So, focused are customer really on success.

with is way sales quite our ready. in feel as excellent. and we in products sales to way there product game Veeva the a if use as make that's sciences not to get just outside for And what life to field. a many it we'll can But becomes sure. true the headcount can you trying Now, buckle you're we complete these That's of be incrementally tremendously the successful stay if projects are and adding we down,

outside regulatory, for feel to and of We're quality, there thing competitive one don't claims. is know life something pressure we doing applications Now with quite sciences. platform, clinical, this with unique Vault

of also it's espousing model or get So, evangelizing of anybody and is that sciences this that competing life can value time. not and there with we're that, that sort this We're you that. takes in in outside

Kirk Materne

much very the questions. for Thanks Great. taking

Operator

I apologize.

of out now We turn time. Peter are back it to I'll closing remarks. for

Peter Gassner

our today. like Thanks, as and we'd everyone, time well your for to and partnership. our employees thank And for for their dedication, Thank their you. partners customers trust as

Operator

today's concludes This conference call.

disconnect. now may You

Veeva Systems (VEEV) 29 May 192020 Q1 Earnings call transcript