VEEV - Earnings call transcript Q4 2020

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to Veeva’s Fiscal 2020 Fourth Quarter Results Conference Call. At this time, all participants are in a listen-only mode. After the speakers’ presentation, there will be a question-and-answer session. [Operator Instructions]

I would now like to hand the conference over to your speaker today Rick Lund, Head of Investor Relations. sir. ahead go Please

Rick Lund

are welcome Tim earnings Fiscal and call XXXX. of today’s January and Officer; Chief and Shawah, our Paul year fourth Chief full XX, SVP call on me year for Cloud; With Gassner, to afternoon, our XXXX Executive and Veeva’s Commercial quarter ended Peter Cabral, Good the Officer. quarter Financial

filing These trends, call, forward-looking our on views Please of the uncertainties. course and various which is make on earnings will to the refer website of listed risks available based release we the will on materially. the risk in risks veeva.com section may this performance statements in and conference business. included at and be management’s strategies and Investors Company’s under statements the our website sec.gov. recent Form are During the differ expectations and factors at anticipated on XX-Q, the regarding most subject results forward-looking current SEC’s Actual the our and to

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

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

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

our of we a in with release, As to disclosure our using as public seen FD. earnings intend channel website begin have consistent also you may Regulation

filings SEC to in monitor releases, our and webcasts. calls Investor following Relations press and please our public website forward, addition conference Going

On to for we results two that provide impacted Commercial fiscal around I’d revenue quarter. details contribute and we call, total this subscription XXXX remind fourth and Cloud acquisitions they revenue. the guidance how Finally, will our closed to fiscal QX these XXXX like and everybody our acquisitions in how

addition, some provide that include contribution rates In do comparing to growth we these in periods will cases acquisitions periods not. the from that

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

Peter Gassner

was Past our Thank revenue and XX% up ahead year-over-year, and quarter XX%. QX million, Veeva. to our and and XX% another and everyone $XXX passed operating results an our us was Rick, of a ahead retained year expanded success product $X you, revenue grew was was We subscription customer a deep quarter guidance. our one for leadership non-GAAP excellence. for of half focus thanks with joining today. plan. in Fourth strong revenue margin on year position exceptional billion We

industry. creating that safety, new accelerated example, model transformation our to in established within CRM the laser Crossix. in in markets markets, innovation embedding like ways their teams like while autonomy startups new fundamentally our gives and be while agile will for of remain we advance our We our on CDMS for acquisition core This a startups the driving dedicated focused in in made AI are areas also refined new to where the We’ve addition we transformative and potentially markets and pace operating with existing innovation Veeva. of

we and billion Veeva. revenue congratulations exceptional we operating this the up to expanded opportunities set of achieve Thank you, Also major on key team ahead new Veeva developed year. this their In our execute in model leadership have to and well to entire and have has outstanding been people that from the ourselves to team $X the board for the on the thanks a XXXX. year our and brought which people very team, within growth product, work all, has perspective target talented

I’d It a We year Commercial in and quarter further quarter year. share extended our was Now highlights for Veeva some and record CRM. for like the leadership core Cloud. to

Our bookings year increased pace increased the we last wins customer also saw over an XX customers year adding compared prior. of XX new and new to

Cloud fueling growth their the core in foundation strength for commercial to Our companies as CRM Veeva overall is in as Commercial future. look

hyper This diagnostics customer five in strategic sizes. seven companies of adopted example, expanded CRM cutting and a our ever of applications of enterprise our quarter, Commercial with in deal For anticipating wide. SMB figure growth use solution commercial largest their who the specialty the and importance all additional edge was Veeva Cloud shows for

had as also to a the quarter gain market. the of OpenData wins in momentum in continue we number data Veeva

is One a models key to selling new OpenData solution, wins current greater their as as depth the to they their the partner of success. move our operates of a and was key This head-to-head expensive. committed XX they that pharma more information, our that top true replacing selected U.S. data was and in agility required better vendor found

Also either into that brought we’ll independently. close going have patients go in in well. team Crossix acquisition with the and coming together DNA company The Crossix right The data on what accomplished Veeva. commercial year beyond area, new exceptionally could strong Coming revenue has is I’m pleased the plans. well to share around

an you’ll exceptionally joint have year. We hear this and vision more strong which about roadmap,

I’d rapid the like their Before Veeva the special team our a the CRM extend Vault, customers thanks for to surrounding to to help navigate challenges response to moving coronavirus.

about access for in are areas. connect online users reps allows depend to using currently field information This CRM impacted treatment that with engage patients. the doctors on the them through for Veeva we For customers free meeting, research and providing for September latest not their

capping product we driven was across and a In quarter strength Veeva Vault, a geographies. year off great had ever by best areas that

Vault customers modern to cloud with up more from winning with are Vault based ago existing benefits success year are existing and because single having a customers their of a Vault new XX% platform. closed all applications upon XXX We customers more We buy use. of the continue year their on the and customers expanding and

as built is now top we of Our Vault a We The the Vault XX us enterprise were In be has pharma selected momentum a proven two of allowing a at XX have rapidly applications Veeva a XX custom legacy with asset all. areas. average These and customer across patchwork good examples customers three top solutions. the unique Board. range were RIM seeing Vault struggling standard. to develop and a quarter their to pharma of applications across applications. platform to Regulatory and and has powerful now Vault scale Vault in

replace Vault with will systems than more XX One RIM.

great past the business as XXX We now of has size have years, two Over the the ahead. than customers subscription and more RIM look we potential RIM doubled.

Clinical strength significant area for eTMF. pharma top is for and XX opportunity XXth us. another we our In of QX, signed

is unified platform. record with Vault eTMF solution Veeva opportunities world-class applications of on customer of a see established additional Our success clinical cloud track customer providing as benefit for a the

I’m customers QX, ahead. It’s beyond eTMF significant years and XX growth For on Study of seeing standardized the clinical have are suite very instance, we’re an Startup. in application. already clinical excited other eTMF pharma clinical runway our at the than since our seventh customers less about on XX quarter and least existing eTMF Study one expanding a the four we top standardize top been started in Vault to they Startup,

our newer and momentum. that with products. R&D two also we both and Safety I’m in the have early are of the pleased progress showing biggest are Vault CDMS on opportunities side good

terms XX time. more early than We about potential for dozen a areas than to revenue, of feel two These the CDMS. and over small we products adopters have in very studies for still safety leading these but market started on more have be good are

had with a a be chemicals number on companies, our big of including track important continue expansions and will a who innovate sciences build we some and and of one for This life to top as cosmetics, company record wins both customer cosmetics CPG RegulatoryOne. standardizing and in company CPG, an XX year success adopt added XX areas. Outside to QualityOne, top we new will

helping looking right we customer for business We trusted new informative a in year this our great the set for the provider industries. focus was these is right grew the establish for a and Veeva. evolved our early and kept Veeva ways. We as things the In which on reflecting Way. in an course and on success year doing It Veeva adopters, ahead, new important

the to into We on team, have a operating the growth opportunity well right model, ahead big focus and future. fuel and technology our execution

it hand to Tim. like I’d over to that, With

Tim Cabral

was a strong another Thanks, Peter. finish outstanding year. QX to

will contribute this of assist acquisitions World. and Crossix with our additional are XXXX in transparency these fiscal during our we As reminder, understanding of a results providing first And our impacted and quarter how an this call to is level your guidance. to Physicians

$XXX $XX million million, and in the was total than from for quarter fourth total XX% Physicians XX% QX. revenue Crossix revenue million ago. a $XXX Total of XX% quarter. more World year the versus contributed up Vault in was revenue of

For the XXXX. from million fiscal year, was revenue million total in up $XXX $X,XXX

grew Physicians revenue World, and Crossix total Excluding year-over-year. XX%

of down XX% year, $XX compared the the million as contributed in XXXX. the $X in of revenue million year. write million For from $XXX quarter prior the purchase in which revenue of QX, full XX% nearly million. impact $XXX Vault total includes fiscal XX% accounting Subscription up a represented roughly in to totaled revenue subscription Crossix of

Vault period. QX. seven XX% represented an was subscription in Crossix XX% revenue from in the of growth points contribution This versus incremental of

and For in revenue from XX%. the excluding Crossix Commercial at year, full from million subscription the Cloud $XXX up subscription fiscal million grew XX%, in XXXX. came revenue $XXX subscription impact grew revenue Vault

was in our illustrate value revenue continues growth our and annualized and within customers This customers. and rate are attrition life of industry. Net revenue XXX%. sciences XXXX, revenue earnings fiscal defined metric the reflects subscription increasing release the In we existing to retention to is providing the

year. in $XX from came revenue XX% up million last Services at $XX million,

revenue year-over-year. Crossix and grew service Physicians World, Excluding XX%

$XXX This our of by acquired offset $XXX in expenses dollars business For $XXX operating of the totaled million, revenue was the a both business. high result outperformance additional million, driven of came Non-GAAP million in which fiscal our for was service one-time revenue commission the XXXX. full end and couple income up above core guidance. from by million in part year, Crossix

We Physicians Veeva. XXXX year of ago. ended Fiscal added joining XXX and a World the XXX X,XXX from a Crossix with this X,XXX up employees employees net headcount including total quarter,

and the less calculated quarter. the our million in deferred third $XXX which revenue sheet, million, to $X at for is the the end receivables. million fourth After guidance. contributed in high the quarter of in was Moving quarter million about end quarter. to revenue, World the acquired Calculated for $XXX million the this, billings balance Crossix deferred includes billings compared net $XXX calculated roughly billings the $XX adjusting acquired Physicians at to $XXX of ahead unbilled of of came million

comparisons Looking calculated are expect that ahead, million of make $X,XXX not XXXX a with coming for manage it factors of QX. in momentum do million it good this QX variable numerous is basis. on we of approximately $XXX quarterly to and our billings and that do fiscal Therefore, metric billings not we XX% indicator business Please year-over-year believe of highly of XX% for there underlying those the a to internally. remember we

guidance of the revenue our are year by guidance calculated end mainly $X,XXX World million balance QX exited from subscription and Our billings for on down of best Crossix $XXX the and cash the and acquisitions. This fiscal was full in momentum. Physicians short-term sheet, driven the investments reduction we Elsewhere indicators with QX. million the

$XX flow cash benefit. operating includes excess million In was $XX in million, which QX, tax

total cash roughly million For operating the benefit. including in tax in a at of year, came $XXX million, excess $XX flow

tax nearly the quarter XXXX. was year in benefit, full in collections our above planned We the QX year $XXX fiscal including of to for $XX flow Excluding guidance. operating had million had cash we another QX, strong million collect

the For to cash be benefit. excluding least expect at XXXX, $XXX we operating fiscal tax million, flow excess

like for to for of QX our outlook share the fiscal and full I’d Next, year XXXX.

income $XXX operating million. per expect share the share non-GAAP on income of to based services diluted $XX fully be $XXX of revenue approximately non-GAAP and We and $X.XX $X.XX For contributing million quarter, shares. $XXX a to of first million we $XXX to revenue roughly total net XXX million million count anticipate with between million

we note, XXXX. will fiscal maintain non-GAAP Please tax at our rate XX% for

something not quarterly is rate evaluate we’ll this again reminder, a next year. adjust and it we that As

of to to earnings an the from $X,XXX increase For expect in range on revenue total million outlook the provided our initial which the million, year, we is $X,XXX call. QX be

the expect Physicians million million to we contribution World that between Within Crossix fiscal and $XXX in $XXX number, and from XXXX. be

number, roughly to Commercial revenue of to contribute we expect full be for in expect be between subscription We subscription year. million roughly the for million revenue $X,XXX revenue Included the cloud Crossix expected $XX that $XX million. $XXX is subscription year. million and to

This we $X.X year-over-year. revenue of will down, to approximately representing our is increase purchase an the impacting see million number roughly write expected impact accounting subscription million mostly $XXX results. of roughly includes Vault of QX which be XX%

subscription Before moving the to some Vault like growth I’d on, outlook. context for provide additional

we market migration Vault As Vault to MAPS slow. share, Zinc to near Commercial strong end PromoMats, the leader growth become of the to the successfully our and expect with market we Commercial

the Additionally, we as revenue with year, from from booking fees. contracts revenue both linearity benefited disclosed ramping have a unbilled the tailwind XXXXs favorable multi-year throughout fiscal and from subscription recognition of resulting

full million XX%. we roughly of of on, expect year, non-GAAP Moving almost for $XXX the a margin non-GAAP operating operating income

a million. diluted on income expect non-GAAP $XXX of share net of based we about Finally, for year, count share approximately $X.XX per fully the

team delivering record done summary, excellent job another In year. has the an

focus ability to in continue $X in innovation XXXX. on in we and be our billion calendar our Given execution, deliver revenue confident to

Thanks over for today. turn the for joining questions. And I’ll the to now call it operator

Operator

Instructions] [Operator from first you. from Securities. Guggenheim Thank Your question Ken Wong comes

Your open. line is

Ken Wong

Great for my question. thanks quarter and taking guys

for China. in and any everyone And The the first on, might in is but there your projecting. there’s following maybe you business? to as it seeing you then might think that impact want guess, coronavirus you relates I’m first flow – maybe it are directly thing probably to guys. we obviously how the what or headwinds well to should their guys the through customer be how as I tailwinds second, Obviously, just some of and headlines, touch base, impact again, sure about seeing I

Peter Gassner

Peter. is This right. one. All I’ll that take

by hope they the a and hearts affected the go this our First, out people, to that families have recovery. we seriously speedy are

As clock. where helping they’re the develop working around hard really they’re we’re help it our actually goes can, things that customers, for to And to will vaccines to try the but or cures our working this. we know situation, we customers,

In terms as little slowdown customers any to some seen seen would of regions, nothing in to yet a projects remotely seen be slowdowns our haven’t our project or material of financials. business, canceled. We’ve that we adjust haven’t bit working

we In where Veeva, from have in we’re policy. that heavily countries work we’ve terms are home of impacted offices, a instituted

Veeva up for normal. company. Now very grew video a handle conferencing very well. virtual that’s as We We very

well we’re handle to positioned So this. I believe

Veeva they we’re doctors that by up industry mentioned they on customers of licenses to September. our way is CRM to script do interactions the meeting continue that Engage doing, they One That that until our the I things remotely. and helping their providing can free can the with need

working So time. at material medicines in impact customers no summary, the our here. There’s provide our this to are business hard to

Ken Wong

Great. And quick follow-up. maybe a then

happen up foot that that don’t left it competitive to there’s make crack the things engagement, that customer like a down button perception sneak open, a landscape, on a whether Just product sure maybe was door was maybe the to Any allowed efforts, retention or competitors efforts customer a maybe line. outreach, in.

Paul Shawah

this Ken, is that Paul. I’ll one. take Hey, Yes.

the level doing. it’s similar on landscape competitive landscape – to a the more specifically The and pretty what So then me is high come over we’re in competitive competitive much on scope been let really terms haven’t last the Things at what kind there. of we that changed certainly they’re competitor, in as our of that IQVIA are all that primary is ones you regional much. primary the competitors global know, have, year. but overall there’s

terms market IQVIA in pricing to of be bundling. how the has and of in continued aggressive they approach

short-term thing have bit oriented, over that I work more could sort of product. instead of think been Some their projects services of standard And a the out.

long-term the projects great. over are think I custom not

we before, XX. highlighted great what we’ve we year. customers that success CRM really new perspective, last I’m was the of net XX it had proud with compared really where Peter accomplished. year had Veeva’s From

came So year. them we’ve grown head IQVIA, of expanded replacements. with And them most last IQVIA to and those we’ve of actually and them wins, share our of were of were most head – many

That’s strategy innovation of product on what on terms the proud is for our – really think, which one, of focus right The we’ve is where and I the accomplished. we we’re success. doing, in focus customer results, themselves what I’m So speak results. think

So different we’re CRM And AI that highlighted many Peter of some in core doing. innovating ways. the within we’re

we’re relentlessly – new to and side. we’re and the our a add-ons new expanding the also continue add products success and add-on we’ll focused innovating customer We’re then areas on

our we’re that’s and best doing lead don’t to to to success. strategy decision. continue specific of So those be But accounts and going make things we’re customer specific at sure there expect sorts a could happen. that on innovation I focus our to factors

Operator

Bank. comes Deutsche from from next Keirstead question Your Karl

Your line is open.

Karl Keirstead

you. two Tim. both Thank for got I’ve maybe,

think subscription is you result. looks a Vault XXXX growth, the like out XX% XX%. with revenue It on to closed for growth, guidance I decel fantastic Tim, your So fiscal a

given on side it maybe the bit the to Vault this is just – But little It there that slow mind just So more clinical elaborating shift commercial might do describe on your a just engine, is you start the reasons stronger Thanks. growth what’s sides. for to down? your that and obviously, mix on. there’s like going sounds a trial Maybe happening. be

Tim Cabral

keep Karl. the Certainly, there and your and growth you’re the the XX% terms of XXXX in To Vault comparing with couple with VAULT XX number versus point guide. guidance. the happy was Sure, the correct, A momentum mind… results, a happy fiscal in of things business to

Paul Shawah

XX%.

Tim Cabral

dynamics favorable this in we don’t commercial. that repeat year. to market Vault’s a couple also we’re Zinc expect PromoMats, XX%, sorry. keep to I there you’re we But Vault as become MAPS nearing A to slow this end the the fiscal share, that fiscal if we’ve And bit. couple leader and of things – Commercial of XXXX market guide. migration of business right, and involved in mind of a XX% the said really XX% Commercial, expect was XXXX

is say, talked XXXX ELAs. view year both bookings XXXX the our we linearity early our and don’t on Vault, we to gave One And saw expect of billion lastly, that would $X we consistent fiscal dynamics don’t XX. ago, recognition this second we XX the we fiscal the and this the in consistent as Vault is informed assumption that our definitely that a in those favorable And we through the days the fiscal as about I way guidance. But multi-year basis of from the XXXX. was have business. Again, target well the of happen necessarily that guide the with revenue tailwinds viewed

Karl Keirstead

That’s okay. my fourth quarter X% revenue then I’m Tim. used the guide to Veeva. it, closed, just That’s helpful, million. maybe Got million a is performance bit higher than And seeing quite and beat of in relative to follow-up $XXX on your just that’s $XXX a with

elaborate just did So on mention came that. sound if you doesn’t was the acquisitions. that from like it upside in I’m wondering line. Pete roughly could It

period So three upside might’ve revenue sort was that months there of you factor some a ago? in lot. than more Thanks driven anticipated

Tim Cabral

Sure.

the bit other past, in than more more a last talked little Most part the from ago. stronger business. I a right good XX acquisitions would businesses. our that came part was it’s execution of performance the days gave as being we’ve off the of I contribution Karl those think of smaller that quarter. was we about talked stronger a we $XX in sort in ago, anticipated XX it When we services And bit had anticipated we in as that say and revenue part higher. million also the of as well due acquisitions. the saw normal, had roughly we accounting from quarter, days had a to bookings guidance lumpy purchase and the was And beat,

even that – up period. move day a down business part can of those XX within So the and

Karl Keirstead

on both Thank answers. it, Tim. helpful Very Got you, okay.

Tim Cabral

Karl. Thanks,

Operator

Kalia comes Your from Barclays. from next question Saket

Your open. line is

Saket Kalia

solution. Tim. maybe with Hey, Vault this think said taking started Hey, I start that Peter, were that for my Peter. just questions Thanks year you, to here. one new there with XXX about Vault we customers

the you that that just you customers sort those XXX can with versus past? with initial Looking land would typically has in them changed how new of land history the of back what product, the of profile talk at net maybe about

Peter Gassner

That’s question. a good

at a because In haven’t much. much need. in clinical people area. think gotten people see if I start a They I’d the from will they quality that terms where for years quality area the the be starting of ago, now to, really where there’s of bit Cloud. has profile our have one four say regulatory if in I suite any quite a most changed maybe more quality – area a shift we than start little look area, seen would area broader. Development we or generally in you the It used

We have was which QMS our our product, and one QualityDocs product. training original our products, our

need. the smallest needs They little because a bit hasn’t they quality maybe will The area the changed. in either those will generally that’s higher, it the the materially first clinical the area in would but start So of or companies. companies where start area, be smallest have most the

Saket Kalia

grow Got CDMS, it. Tim, priced, type trials kind the you just And for Does here agreements? my how revenue those of on of impact of broader billings part or it. maybe follow-up size typically or maybe those as the us you, number Got ELA can and of directly that are of trials. remind for then that’s you

Peter Gassner

would customer. general, small time, going that small one. jump over small be graduate applicable no with try customers. areas, through. In trial-by-trial particular They’re out pattern to on work and time new ELA This is in to us we’re could that some It to a takes an Peter. to that a to can in certain all start There’s I going revenue.

I saw there’s would also actually years the there. in days So we early no it’s say what with clinical of ago. particular Veeva quite to five similar pattern

Saket Kalia

guys. Thanks, helpful. Very

Operator

Stanley. Your from next Stan question from Zlotsky comes Morgan

open. is line Your

Stan Zlotsky

could I during pharma you call. And quick for much product. A that a overall are us on detail more clearly get Tim. Could then And noise a on I Peter, from my data how bit any questions so give data background going? with a have your couple higher win you us top follow-up end. your updates little maybe you a this efforts and win? apologize just XX mentioned level, some of Thank at for Perfect. you

Peter Gassner

a pretty in pharma They’re standard. in many was areas. was areas therapeutic top oncology, diversified – different This XX pharma. a It the U.S.

So might for that health Anderson MD complex be Mayo quite because navigate health are their the lot all diverse and related systems. of The Clinic, doctors are to there. to or the they a needs data have system they

So they and wasn’t a wanted. They a expansiveness need of wanted quite of what of robust set set and what quality from data. provider legacy the provided just data and had they and service quantity the quite a they the data wasn’t

So we that that’s were solution not migrating able it. better a a less they’re that’s but year than and to it’s show them towards And long, project a long, project.

pretty a have it’s been replaced. the – down So middle

OpenData of terms data offerings, where by it’s market a – country. our In our country that’s it’s

So market we’re in the leader China.

in quite Europe. and for country the by us here we bit country. It’s a U.S. making and are doing We’re in progress well earlier

So goes I’d say steady, steady on as she OpenData.

Stan Zlotsky

you. And did XXXX, both see fiscal Vault, Okay, you guidance revenue for how Tim, fiscal look nature XXXX. you on a those those not going you to Thank them? contracts both be into result you. you fiscal you contract at Clinical us, those benefits remind to of much perfect. ramping ramping to especially, then perhaps Could side, And the do headwinds perhaps expect Vault in benefit there benefits back Thank from of as XX% a R&D. for expect simply the or of when turn do XXXX

Tim Cabral

Sure.

It for Stan, And to XXXX of of dynamic. deals, point being types goes about particular terms headwind. was that in those a from it fiscal you the are a XXX tailwind a in results, very So tailwind astute.

over and ELA came way late deals guidance in turn we still we XXXX, lot fiscal that in ELA Now XXXX XXXX’s XXXX. rate opportunity headwind Stan. that the but included a but growth see results created really That to gave, this be around clear, in could that deals, of XXXX a in is tailwind a that fiscal the a new year slight into was into in

Stan Zlotsky

it. you Got much. Thank so

Operator

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

open. Your line is

Rishi Jaluria

with a to solutions tried maybe some a more the they’ve now a for And to. something okay, to it. Is that’s mind, they’re that Tim. resistant little serve they’re obviously Peter, Maybe bit that? for bit little maybe And taking by my point on impacted sciences you like life that CRM exciting questions. more up ahead, following process even to in you’re is point maybe just obviously change is this, your regions so adopt that a of, up industry follow-up that as to like trigger big forced product, Thank if the being for guys. earlier could think a used the forced mean, I Hey, it Engage maybe industry. in for to, then Engage thinking they’re Or on because about seems it, corona. really to are just doing helps you like much what accelerate about way that but got is the brought change wanted it it’s adoption. I there that, better CRM follow-up getting I’ve

Peter Gassner

Rishi, change you’re I involves to think, process going right. compliance. like business is this This that

too on can they that maybe customers and adopt be measured fast. Sometimes not might

do things. Now they’re being forced some to

of So as this. Engage a adoption result of faster we a think will – it will bit see I

real forward that’s straight answer So the there.

Rishi Jaluria

helpful. appreciate okay. really all just year’s next And detail it, the then in That’s to the Tim, Got acquisitions, quarter’s back terms and going numbers of transparency outlook. this and

Just the from implications maybe acquisition. the gross into dial margin wanted

on do implications of for Thanks. margin that about was services the margin. World, acquisition? gross net Crossix we How accounting gross So get from Physicians heavy, the think very

Tim Cabral

Yes.

from is and think margin, results, gross we’re at margin, the be roughly it there’s margins you’ll Crossix gross revenue. that realize roughly services you see is some those And our where a our I in Rishi, fiscal would into or as services XXX-ish acquisitions. of Physicians XXXX. our where of little World of So subscription bit in all – subscription majority QX if gross impact about at look and to expecting to that you basis points

Rishi Jaluria

right, helpful. you. All that’s Thank

Operator

Your comes from Bhavan from Suri next question William Blair.

open. Your is line

Bhavan Suri

that Hey, space a so. the look taken guys. When if guess, EDC I think just Congrats at modern CDMS little touch big I and by do for primary the least on thanks for year to more renewal or bit about was wanted out competitor at in primary XXXX taking a my them. And now. call. competitor you I very

clinical think As to you about that when space, are sort I’d up capture you’re with are well. How the Phase get opportunity, one XX top potential to the in that obviously set evolving, love guys about you’re because of these thinking pharma you X color how market. some on trial

how and trying vis-à-vis just how for big and going being thinking is the a them. renewal So this sort this opportunity you’re business understand to about evolve of being to acquired competitive the year year the

Peter Gassner

I step in level back our Development R&D guess, Right. Cloud, that’s high a at for area. Vault

important it’s that’s less think large connected And It’s the to eTMF very I regulatory. very big, and a penetrated. than and broad safety, area it’s CTMS us. EDC very to the for to for to area the That’s us connected. connected it’s XX% early The the a connected know days.

is market our partner that’s So the really can long-term. the leader goal of in. trusted over where products the have the become and that be industry we to applications And we

new. new. have them and quite on progress where quite them some some CDMS particularly, that’s of of we Some are quite we’re

the leadership we’re well trials, early into success is seeing But still customer we’re innovation the very we’re It’s that product having. positioned and XX what that’s future. the we’re there, many. for not So

on measured now. very that being right take actually we’re projects we So the on

on focused laser projects. these of We’re customer success

in around around multiple, of to multiple multiple very trial We’re world a start for the hundreds sites countries. world, a large the about sites customer,

the customer looking common the is integrated of will of focused care not suite in just customers We’re on for because are what one whole for then think itself, laser Cloud platform. take looking only. They’re market just CDMS And the together I success. on Development the

we that’s remember important with long think to it in out build to up some work. serious vision XXXX with time and started I the takes back a it’s engineering

So that’s have really we our eye of XXXX prize. on, what we’re on that the that our us confidence thing in focused goals. gives That’s type

So XXXX. company out focuses that’s our where really to the that is of

Bhavan Suri

Health, IMS OpenData have to exceeding by sort touch Got the the an expectations maybe one doing challenges not then some We’ve limited the to owned data sort Got helpful. it, it that’s on want bit. about be maybe, been of talked given maybe past IQVIA. the better I seems from of been our it. doing obviously it of it’s open-date – they’ve asset part just and that But And competitive or environment seems feels outside. little in to this given was a like

just other there has something trying understand, that? about talked that is more changed something of of we than business in that should from added China. past. maybe sort about growth in little unique there? there I’m anything and Is that see the has to from But business? you forward the Have going to both that it there think helping KOL network pieces you – data and a How

Peter Gassner

the down that I service after think story having and that a the of restrictive like. that policies and year superior don’t improving improving And just data buckling is IQVIA have we year OpenData or policy data just use customers product. IMS OpenData that has product, we very

So some that’s production, why customers. and all to we’re new the seeing that’s

policies. anticompetitive affected is by also OpenData IQVIA To the the con,

would what’s doing IQVIA when product want from sales with And is Therefore, which well. better other our is us match mistake, significantly tailwinds OpenData So the products, causing without customers they’re these no our be superiority. sales. impacts products. OpenData just this issue, to antitrust it Make causing And what’s anticompetitive the we’re prevented our win that. progressing to OpenData

that’s trial. We the trial, and two jury about have a until more years

call out that at the in who anticompetitive hoping customers but harming thanks the testified industry. to Also, the customers. verdict. IQVIA depositions confident about And customers defined to the case. finished get were timeframe six tactics outcome, of customers. just We there no guarantee. largely there’s to the I’d Thanks the pretty say the would in least our here, and it’s the years, feel right two we’re I But

So and to grateful their those we’re testimony. really customers

Bhavan Suri

Thanks.

just that, about you with follow-up thank a questions. Just thinking taking the but customers, my for

Peter Gassner

was I your reading mind.

I think of situations. okay that’s types these in

Operator

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

Your open. line is

Sterling Auty

Hi guys. thanks. Yes,

from you the million Vaults where new Vault and adding in the in think not is mentioned an coming X versus because products looking average So can growth at customers? X more us quarter that adding I and ELA of how the you much additional it’s the million versus now between Vault both is help outlook, in growth understand cases

Peter Gassner

have don’t that. exact math the on I – That

do say roughly a little I and a skewed is big quality – bit Why it’s I to is more it’s even, guess that? would new Regulatory big I a area. a customers area, is maybe area. Vaults. adding Clinical think big

their three areas in have sort we So of big are that prime now.

very not that yet have their We in areas are CDMS. large early, such other as prime very are they safety and

we So applications. three two Cloud. prime or their then And Development the have the major Development in are three within that areas Cloud, in each

to mix would going So a that’s simplify, a you And there, but new a guess, have Sterling, we XX-XX time. exact Vaults. be I maybe number adding applications on to new at of say that Vault don’t it’s average, mix and into for this I

Sterling Auty

one follow-up. And you. then Got

calls of you – to Just you are are and you we forever. where terms you want remind, that Tim, would these to having keep love on But in where process?

Peter Gassner

working going that’s and on Tim the I search, Sterling, are well. and

transition. that remember the until it’s here find through right we can also think Tim successor I important to the and is

defined So there’s no transition period.

some person We’re focused on finding the and the seeing good over long-term, candidates. right we’re

Sterling Auty

you. Thank good. Sounds

Operator

from comes question next from Your Sandy Draper SunTrust.

Your is line open.

Sandy Draper

Thanks follow-up a to they Sterling’s similar – both two if talk the RIM. maybe that from eTMF, so XXs Where you RIM about customers. about on little top I context XX guess sort are the a bit just top of Pete, new from coming can backgrounds, Vaults? joined to question. Just some two much.

Peter Gassner

accurate Sandy, XX, Europe. that of in to be – one both was these, one are top them the XX actually, Actually, was The and on a so of one top specifics other one. headquarters just was a

on, full wouldn’t believe their early have European-based. would I the actually, on Development Both in Now I I be happen but to that’s to commitment particular quite read say, don’t these, – journey of pattern made early suite. I both these of but any an both – with emotional that, Vault. they’re into they Cloud

think Now Cloud holistically, of Development that holistically, the first evaluated specifics, evaluated the these our before much emotional regulatory, believe have I both than concept But application. meaning first they’re Cloud application. starting different they in bought the the but don’t I that’s customers is commitment I actually Development exact commitment, purchasing-type of having

Sandy Draper

really great. helpful. Okay, That’s

Peter Gassner

always happen Sandy, it way. that doesn’t

Sometimes, Cloud. and it there they a solve picture need evaluating in need, want customer they before full be will Development solve particular that will a to the and

customers before first Development more be measured and Cloud will area. other evaluate full some specific And solving the a

Sandy Draper

to makes a ears had a follow-up, chance go that the you and sense. transformative Vault in to just I my certainly transcripts perked about the of before turned all Yes, business. I’m you’ve And up back Crossix that talked lot used see search back acquisition. be early when talked with And and thinking Okay. about for days, transformative. haven’t out word that to being if

your Just more to you opportunity it business, some for the just use really love just some relative that transformative. word, I using opportunity behind see being is that to when when Thanks. what you – existing you that get word, products? transform to the thought talk would about

Peter Gassner

astute very day that synergy. word because Crossix is hour to and And the expertise synergy that. cultural and and It’s Their about It’s I patient the team The transformative. hand-in-hand, the data synergy, Yes. days. feel that carefully the hour unparalleled. innovation see now I it. privacy around data worked is product how is and last we’ve with day, use over XX there,

do I like about think very it’s Vault. similar So

involved of you type to the XXXX. stage, earlier right, that thing. talked transformative Now have be I I have about about transformative potential might much potential XXXX, talked or in to might

So days. it’s early

the going Veeva, like the but Transformative, when XXXX. are into to meaning it changing how what look us course, by DNA new potential markets, earlier, of Of guaranteed to we work changing things out, is everything it’s be bringing has transformative. not as

Sandy Draper

it. Got

Operator

Your from comes next from David question Canaccord. Hynes

Your line is open.

David Hynes

one Hey, the Pete, Congrats results. on want the R&D much. suite. to thanks ask very I on

large of a I and for idea safety how feel your be of relationships might material think CDMS pretty to be. potentially can less pretty overtime. have a we your scale how good customer relationships I have

and can you small then bit scale just you those start little me? Or are in And typically like larger that do frame relationships CDMS? and you So try for a where land safety?

Peter Gassner

than the In land revenue CDMS. has. Because the goes what we’re amount with general, seeing we incidents generally they’re is there, customer safety safety, in right the we case smaller now of actually do in

customers also small this cases. And So I measured measured. very is we’re would quite a the their very now, in where volume are companies right area, safety in have approach, very, getting area, of into an that say, low safety

that think So like in go not of It small. probably does. that, and will CDMS I be jumping the ELAs, way things broad we’ll

company. it’s it’s CDMS, similar by But safety similar like is very and small size in in its very needed very market that a

a to that’s medicine you’re you’re do As have clinical as a need as trial, it. going human, given to to a starting soon soon as you

system. safety You’re a going to need

the revenue safety are on based in based is the is and incidents So starts parallel, safety happen. CDMS on safety up that number CDMS but versus based that way, of trial

little So it’s profile. a bit different

David Hynes

that’s helpful. then Okay. And second… Yes,

Peter Gassner

these The been other CDMS is, similarity, last has are in is over say, innovation. it’s much area not I the would an Safety would where than say innovation so areas. of even just terms less I to really there years,

Development Cloud. feel approach. of Also, our of quite we the rest has a tremendous confident to the So safety in integrations amount

a there’s maintain build benefit our system, if then integrations. of not and CDMS or system our having a and So safety is system customer using the tremendous our, let’s to getting our say, CTMS

going take advantage So an as that to I think a while well. out. will That’s give overtime to us play just

David Hynes

a Super right, second policy? If Veeva? And since think your then bit lines. narrative were question it’s rein attempts in a margins those come to are obviously, pricing, care but do impacts drug under makes with that actual Tuesday, to out a And button a question, you hypothetical is figured it engagement industry sense. ask And political pressure, hot or there customers’ be I Sure, that along for health of topic. the how

Paul Shawah

Thanks is for question. this David. Hey Paul, the Yes.

approaching the we’re as timing election good in clearly, U.S. season the So

global. this. every customers one the market issue, time. are our There’s in no business. they think market customers The happen about really When the is think. And U.S. one think that is this of exact I I all don’t we there, our think changes drives to Veeva certainly talk about overall over our customers market. typically, global. some regulatory

on pricing, So slightly pressure I they’re that impact potential And may I think there’s I it, think of side a although muted. there’s that thinking the where impact think the I increased up other think about also there’s balancing and concern is being access. end

well. pricing, you But the you think may that slightly thinking unit I reduce impact as side increase negative. may may When be it net volume, about there’s of overall

our all, balanced think customers overly that. is are But not I you and being they think this it’s when too hypothetical. being concern think I about said So really

We’re projecting it. are as on much you as

David Hynes

That’s surely. Not helpful. Thanks, guys.

Operator

next from Your Tom Roderick comes question Stifel. from

Your open. line is

Tom Roderick

year. Peter, a of great for Congratulations thank team Gentlemen, as of a finish has to been your the to a I you’ve But nice not many my taking this. well. here precedence know you been lot beginning, questions. there’s and on since

don’t the on community sort what of life precedent a the the science coronavirus to facing world to As HXNX from community. topic back with issues is. going know the the in about I think around response all when what way we’re right you the you Maybe take was yourself the

impact search will put How Historically, do more this result as of bump out and world take facing sciences might the forward? through the you vaccine. what the longer-term, good in in for play be the money we of does R&D can companies R&D a us think be kind Certainly, a some here? and to your we life sort a customers this of go just towards you spend? thing? Can And that mid-term

Peter Gassner

I think days coronavirus. still it’s early in

– could months So nobody from how underscores importance right. an this six development of and situation research sciences this to of of is personal any the industry inaccurate going the is now. world, exactly is the kind knows a think we important don’t be My be life I long-term belief prediction core what for in because and

to sciences ability precision industry a think, medicine, is very other in overall, very have life happening we’re the revolution the the potentially target that’s or will especially people repair moving which into the specific life sciences life greater gene. I appreciation of as attract disease, So a sciences, specifically into it potentially and a specific industry,

maybe of time the I a for the will the really a shot coronavirus. importance And underscore think or golden be customers for coronavirus, that And its own industry a cure in life really in and certainly one arm a for sciences. So will way, develop shine hope of vaccine industry. our spotlight. I a it’s can this

Tom Roderick

for outside turn life really I just that. enough. appreciate let kind of question, to helpful. And That’s my of Fair me sciences. second

look market focus particular relation you industries success three in. segments How speak cosmetics CPG some the of look as sciences and with Thanks. you’re on feedback kind products might XXXX? putting we outside chemicals? you additional Can at we these on focused kind had and to what or verticals into finding at you some life you’ve do been continue that think are of the in this success has they And to where You to some you should year? of there? verticals additional of customer market some Or that find three as success specific

Peter Gassner

Yes.

the Customer products, our our feel of They like to consistent. They life they applications, outside them. our For CPG, approach. we’re our on like vendor We QualityOne; feedback And and sciences, cosmetics a focusing and long-term like and Quality don’t is our chemicals. that, products, like platform. within partnership RegulatoryOne. Regulatory on focusing we’re

on their what we’re do. can long-term success, focused We’re thinking always and we and

knows So to they large fact like the like company They that that that. how handle global a customers. are we

We’re feel they very that. that, at adept and

we’re creating we’re and a the that’s that feeling is and that with customer The steady growth So happy success business. type success customer good. there of is

at year, new that we’re of targeted. this terms we’re something we In that’s early verticals, this do still looking time not to those verticals in

success. focus and there So we’re going customer down buckle to on the

Tom Roderick

help, Outstanding, thanks for appreciated. your

Operator

Your Securities. Sills of next from question America from Bank comes Brad

line Your open. is

Brad Sills

question. thanks Hey my taking guys, for

CDMS. Just about wanted ask to

map you. in replacement it there pipeline? deals that reference more selling there? approach you you to last in for kind that tipping like maybe business. terms your cycle us refer Thank reference that where the validation you be that that on that and see market quarter, the even like that first X top road Are start need need could you of when selling the a we a could – kind Do of with road had Is XX. more think maybe deals in that Just the Phase catalyst map, to point trial something where in your in are you was of remind very coming there’s clinical? in measured I win

Peter Gassner

It’s CDMS, early. trials. XX Yes. early, it’s remember, quite

X We’re starting Phase a before. major We’ve trials trial. Phase X done

of we done. a So we’ve But trials Phase company, with X them. they’ve is number we’re largest one major the what a were to a ever referring starting of done trial last large quarter

First of to patient of I types that for be for matter in in here things, going think, those a trial is weeks.

focus really our that’s So where is.

a lot the momentum market. in There’s of

as or on do customers as and it’s really actually the market. up support more trials that’s feature and to a And when our we take these measured going anything features, we type all in a large not with model. round services get the we that’s of very scale being it’s that and team to product of to product enrolled reference going it’s selling We’re But and It’s how happen. unlock out thing. more many

the some happy. yes, it I’m super at when Veeva And these and says, That’s customer we for them point been running So trials, future, seeing." a we’ve put the years, and in have are to all summit hoping flow. "Hey, on a we’re customer two benefits our new we starts really and them we’re

commercial We So mentioned Vault. our long-term it’s game. a

years was to the PromoMats. roughly our later there, we a Vault that market. have We sold when first XX of in XXXX And position remember, real in we’re commercial leadership application, terms

entrant has actually our feel there announced since started enough, I confident market. but interestingly been since Also, CDMS, not the while, position. it, a we takes a new very to CDMS in we

So I a have feel we advantage. good

a good just somebody. here. like competing I will for well focus to we don’t on leading turn the then head have we success, a start things really cloud and platform, us. and have with feel We like I quite we’re feel have customer out

Brad Sills

are I more, one the a outside with domain guess are Those where may, you force verticals in of And terms sciences, and to Peter. sales go-to-market. obviously life building out expertise different in Thanks, just if different I go-to-market.

You been building you. building of out sales those very I you kind kind verticals? guess of other in are references organization. in steady ahead go-to-market a have of of three in guys your where Thank build-out

Peter Gassner

terms sciences. burst of – it’s a going of the see steady for expenses, grower sciences, the in – way in of we’re And outside Outside say to of – be going of us. think of right. the We’ll be that our growth any life the we’re a type I there, you roughly to measured won’t to expenses is align. our characterize revenue our in life that of growth I outpace Actually, will and field, will growth would

goes. So she it’s steady as

CPG I a three our actually and guess, other and it’s the chemicals, quality; We’re bit. Of group finding particularly would regulatory inside cosmetics, two. not of chemicals, inside as far little as the ahead

So you’re just from outside going to steady growth. sciences life see nothing dramatic us, of

Brad Sills

Peter. Thanks,

Operator

Chris from comes from question next Merwin Sachs. Goldman Your

Your open. line is

Chris Merwin

much taking Cloud, And Commercial customer called just like I my in for nicely out accelerated in Hey, you it SMB. looks big know XXXX. there thanks I really very win noticed for growth customer question. a

should also runway So bit you about that customer in there. the about I and could was that more a if talk improving the just seeing you’re wondering traction segment how Thanks. we think

Paul Shawah

us. been really SMB the just of think drivers. was have is drivers the Commercial those in significant happening. one Yes. one of I approvals that big for year Paul. This really is a Chris. year Cloud that of had Thanks, We strong and was last overall, SMB And part

number European the If market, majority and U.S. you the FDA, quite winning high, the approvals market, look of those. the been at of the we are has

want in way. driving ways, a those – position differently. to have They launch. many They we’re They do to things to where innovate. in they fortunately, digital launch, to need very a successful a we’re So want in companies, want

their So they Veeva to look choice. as

much science some driven hopefully the and some that Veeva they seen looking number come sized medium many the possible for much life system the is end also is of space strength, more they Commercial Veeva that we’ve from more Cloud. What So of CRM of up with about for customers has and more is breadth a in significant learn Veeva, because in approvals will something what larger they and small to buy broadly more what continue that, and years. with than what

over the a in last driven of over segment. you’ve particular that last that strengths in last, seen couple the particular really but strength year SMB So years, of the has some the

Chris Merwin

Got it. much. Thanks very

Operator

the the to of to call I like questions over for for would remarks. out closing time Peter We’re turn CEO, today. Veeva’s now Gassner

Peter Gassner

you’re Thanks Conference of forward today, developing. team look everyone. customer work again to to for all at the that time again Morgan Stanley the and virtually partnership for for the for success many you connecting I the Thanks with your industry, and and thanks all trust tomorrow.

Operator

this you Thank concludes participation. conference Ladies and gentlemen, today’s call. your for

You may now disconnect.

Veeva Systems (VEEV) 3 Mar 202020 Q4 Earnings call transcript