VEEV - Earnings call transcript Q1 2021

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Thank you for standing by, and welcome to the Veeva Systems Fiscal 2021 First 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. Thank you. ahead. go Please

Rick Lund

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

management’s the regarding strategies our and on the During the call, views sciences conference be our this current forward-looking industry we will will performance and related life COVID-XX and trends, to of business. the expectations course of make These statements on forward-looking uncertainties impacts of the are statements risks various and anticipated to including based economic global business, subject those and conditions.

Please our on section listed the Company’s factors on materially. refer website on the recent risk available veeva.com Our to earnings Investors website in and XX-K, under actual in and our most at Form the sec.gov. the at included SEC’s filing may risks release is results which differ the

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

not and effects of future our correct. today’s we in COVID-XX. our will beyond part environment guidance but not matters further assumptions on caused including that control assumptions recovery a will will on from we as the be The operating provide call the we forum. in negative guidance is during provide performance may on macroeconomic our We quarter in in and which do or to public our will are be updates based Such by provide any any today the pace unless timing guidance the so

the believe today’s found also our as aid of discuss A is that comparable just our be we an on certain which financial One on an in release, that our results. posted to updated SEC investor with the call, call. non-GAAP we reconciliation to in historical understanding our our of and filed Form earnings recent before concurrent metrics contains note, release, guidance. and have exhibit IR final our can presentation we On earnings summary X-K financial will website a QX and with the results available the website metrics GAAP this

interested a With you will provide us materials a for reference to those our continue Peter. helpful forward will these in that, on business. to it over as and We basis thank turn I quarterly going joining for

Peter Gassner

Rick, to today. thanks you, and joining Thank us everyone

year-over-year. I to I Subscription affected healthcare margin like professionals pandemic. non-GAAP and clock coming have give an XX% XX% patients the diagnostics, to like and to and first guidance. those was COVID-XX. revenue extend had equipments, results the customers would strong vaccines are was grew of quarter by with Total We $XXX update million our Before all revenue been our treatments to around our thank for XX%. in who operating on the and a sympathies also ahead produce up would I who our year-over-year business, working supporting

stopped find digital getting April. XX up Pulse and between adopt see than times U.S., meetings Veeva two the the end than end business, Veeva million $XXX it Tim billion have lower up more visits from Veeva. are and doctors top that full-year Sciences, the are in times This in This reflects of clinical but get guidance $XX comparing It's at non-essential for in normal. largely telling telemedicine than meetings the in Vault. avoid and is confident the doctors of delaying that overall. April. and innovation live our to related with doctor Using quarter has to $X impacting and XXXX. evolving guidance very us causing Using visits crisis more good to in-person sciences Healthcare are non-essential many interactions sciences Veeva to to has We e-mail innovation. product segments patients, significant research by in increased The new and Veeva on many the product rapidly projects. the is When first remote patients billion special income made to programs busy in-person for visits as product customers outstanding events beneficial clinical of a releases data $X.XXX his delayed April costs now. more reps decreasing the and customers ever will stopped. plans capabilities, and And productive. over did be will companies our world visits in revenue many than World Doctors of the with throughout doctor executed some by Life was related virtual. we and digital become visits raising to many patient time we revenue February than were I’m most providers our have and changes certainly an long-term forward remote to down our travel. it the CRM, them for Veeva, and doctors, than in-person are to in February industry track, caused U.S. entirely to mix industry existing financially in-person slightly COVID-XX Necessity finding of rapidly. time more also section. effective see are detail target ever change we strategies. disruption been operating industry the and But communications which and $XX The to to pharma ability using doctors others capabilities in is discuss and from our release for Engage far interactions stayed patients Crossix major associates, approved used We are changes Crossix less more particularly million. This Physicians due in is a a than globe, and our visits industry also the to and or to procedures. top right million they also the areas, of quickly is and affected pandemic sciences new reaching These digital relatively of look our ensuring advertising job both see to mix down. of depending life largely to COVID-XX promoted the around solutions. changes a less certain guidance related total back and where looking is getting life data, This achieve have been digital remains X% more is full-year once significant have our processes their of team healthcare in others with our to rapidly digital life need Crossix elective from more more effects and supporting industry February so XX% the field it systems to and strong XX%. Many are companies trials Doctors helping creating digital in they It on the portfolio. data, things CRM in and are by by U.S. in of to sales opportunity than the

Data a And Data to Like expand Veeva we've powered biotech emerging the technology people HR XX together countries. events. I'm early platform, announcement data bright offerings which platform of we bring needed March been and The QX two advantage. a for and had Vault, major top commercial as also in through and We our team. two asset MyVeeva. will platform. executing disruption. Veeva proud an become data I'd touch feedback big many personally markets already It's the so the We quarter summit of the Data quickly But of the development Cloud other a on for of like the effectively data with just time, take the adopters areas to Cloud innovation, marketing new in analytics, from data so one finance. with patient Cloud Crossix first much Cloud safe of for better many been pharma. we've customers U.S. scale into has delivery in Veeva Cloud privacy large, our I'm areas is Cloud years Veeva it services to important data all entered, planned company the signed Customer This Crossix and the way. platform will to for to solution to as greatest and and will innovation. on is us patient our a aim end as ripe a to through a and thankful and far area Over underserved to has Veeva as we by innovation a us positive. one bring all distinct industry. world-class year-end. for market by more innovations very for Vault so Data working Data year sales, built Data turned the pilots, team, product and be of large around virtual leader. be with we all right the to coming and gives could saw

starting a and early there. and for We’re focused We’ll U.S. in product concentrate market. on adopter grow patient from data success way the excellence around

is of deliver eliminate release we clinical our through will doctor application. and for facing appointments MyVeeva for experience. experience. paper remove trial R&D clinical patient announced and the site from is paper two ago trials. process free and product Just clinical sites. patient the The first managing for process has a help enable participating potential sites to in Summit, weeks research remote and will our the research and to and to be the It for clinical Customer the planned trial the patient sponsor This transform clinical will visits. at around most better MyVeeva QX world MyVeeva medications patients

about excited very MyVeeva. We’re

We quarter Veeva sample remote also the to monitoring research to in Site sites. request Veeva our add management remote to and source reacted for solution Engage clinical Vault, quickly

and products operationalize quality of define time Veeva. our companies high strategy. add changing Overall, roadmap we're use more to with we're and these exciting significant high helping to capabilities. seeing at digital digital already look to new and It's other product look In their We’re partner in the companies industry digital people new be customers uncertain times, capabilities an join and companies. to quality and

Veeva. seeing both We’re play trends out for

inbound increase We great and candidates been and attract faster in qualified an talent new able have see interview cycles. to

well how they're strong, and have greater appreciate seeing stronger. now relationships extra time been Veeva deepening in collaboration gone executed We're this getting but change. has roadmap. always mile around the customer long-term and partnerships even our of Our Customers

to had digital Now, active and quarter as customers. with and of Approved also I'd wins Cloud SMB marketing. at market a gain better quarter. for of like and quarter and Veeva share Crossix And strong. quarter Meeting additional important earlier, sales very Commercial further logos continued XX Adoption CRM Commercial Data by a Engage connect area. enterprise Cloud saw the mentioned Veeva record highlights in expanded for in in very a I to the new was also Email and with to the number ways as Cloud. added we expansions OpenData in share was few It

into to activity give into Veeva Veeva are solutions sales analytics bringing and how data marketing together. CRM We’re insights the field brand activities marketers Crossix working marketing

example, media on field. campaigns can by doctors impact recently called the the For on see of brands

the Commercial strategic of digital have needs each is connecting solving Cloud customer facing announcement major needs the Crossix a industry Cloud for for the The a specific We the of data of of teams, This about and is partners region. Cloud. leveraging start. and bold Data big commercial. is Commercial country in acquisition and vision and type

broader Our in opportunity resonating approach strategic the with engage is giving planning customers. to and us even our

more We very Top a another to development from was and is the marks top application. pharma good And summit event XX at the to customers a select advancing highlighted had restaurant cloud event XXth feedback pleased area QualityDocs. enterprise more another XX quarter Vault our progress, as their tripled strong Europe very standard. last weeks was ago. customer first virtual two selling. It QualityDocs over where see R&D continue we for in example to selecting more Vault, our is QualitySuite applications Vault looking are time. just than was Turning we’re attendance year really by success and to and effective online held Vault This the positive. on standardizing customers and for very Vault adopt Clinical

pharma by CTMS. Startup and Vault for CDMS, round quarter eTMF, suite XX the Study customer clinical This full out will Top and existing adopting

enterprise another Top standardizing on Additionally, after European QX. and Startup adopt eTMF decided its Study to in standard as XX RIM

We Partner CDMS also announced our announcement CROs and shows top has Program. CDMS data have joined a increasing is of the Sponsors This see five Vault management. the the are transform product. seven that clinical Vault and the CROs of to momentum that significant very potential like CDMS

demand, Now and to a demand outside consumer cosmetics and have experienced industries from our essential companies companies Cosmetic CPG benefited significant have seen and work selling have while Sciences major these consumer certain drop Life impacts stockpiling seen in goods, have products. products COVID-XX. for from higher

pandemic, an the this initial this suppliers. in needed establish demand. supply and and has execute testing quickly Since and attract to XX Well, for To experienced their to spike QualityOne onset rapid chain, secure they continues a quarter customer the companies new top information of team deployment. auditing for CPG Our their selected

able team management quality was deliver a Our system to three supplier within weeks.

to search and short I'm more a the Life it the early announcement Veeva’s outside to company see it's business within in share transition for in happy trusted but So and the reputation announce industries. we'll I'm our these Tim. success, Veeva of that, to the been industry that times such remain for amount advisor June, been ensure to complete. is details accomplished they've of confident Tim have is Veeva’s future. as also continued issue start due will to what new everyone, He Veeva These like build partner have to never formal new teams some after completed at will been very a is an CFO. tough to COVID-XX, disruption experiencing proud we've smooth at time. that on further a how customer to With our and and transition staying time. of in over for I'd inspiring a I've turn Sciences

Tim Cabral

Peter. Thanks,

to available and begin, I you guidance. refer summary on the Before of I for financial QX investor our website results IR to our want a updated presentation our

QX the comments our pleased QX results presentation, included our that details very my be in with on Given performance. will I'm brief.

While our strong, the was with response I most COVID-XX financial results were team's impressed the to pandemic.

about contribution to results. the went in those execution our on working side to pivoted home, the the primarily had year. in first benefited from quarter share related cancellations by our margin quarter, Vault customers. the meeting support exceeding offset World outperformance tremendous bookings entered to talk and our I'll everyone services in-person was field expectations. strong color the Physicians first QX partially both with some impacted acquired Engage more was Operating the quarter the quickly rest staff Commercial with This recently I'll Then how momentum. efforts business. to showed outlook space and due for our from revenue in significant impacted events, speaker sales teams Services Vault. revenue detail during projects. extra QX both which Cloud office mainly a Our of record on in mile driven Subscription and by Veeva good CRM and demand our We our from

this our year. While employee in-person the for cost Calculated primarily guidance. in travel, by slightly our fees customer from we those of the were events saw quarter, to quarter mostly cancellation savings related and offset less billings exceeded the

does the were change before not However, this our in full-year change cycle widespread. to COVID-XX not calculated decreased billings, made was well annual note, roughly the by and to million. billing is quarter, Please billings shelter-in-place related as orders from QX $XX affect quarterly a which large customer an change

also operations XX% a cash which cash We typically QX flow coming compensation. at QX with excess operations, this cash quarter $XX included in million from from exception. was over in million, equity strong to tax $XXX related had of and represents no benefit

down has on million year, slightly Our tax for comment flow lower I been billings expectation benefit the later. will $XXX due revised to expected which from cash for operations excluding excess the the to about full-year

impact on guidance, Life on been business, industry serve. observations negatively to COVID-XX impacted Before on like not we to go our and the in to the Sciences the The Many our I that as impact and have would the other as address industry most of I in they half the the some the industries. of changing our continued year, expect recovery indicated customers second are not for of begin appetite cases investment. their has

this Our approach by to informed outlook. guidance is

relatively remains sciences customers our needed adjustments. have life to the industry While make healthy, certain

speaker For in-person World Meanwhile, shift example, Crossix we’re are their focus Physicians customers our businesses impacted our spend pushing advertising their Commercial has canceling and seeing and which Cloud events, negatively customers enable been Commercial our respectively. as Cloud. with virtual doctors, have field And also target contacts Peter than mentioned, reps COVID-XX. to markets others which to impacted of more by maintain has segments certain benefited out

pre-commercial cosmetics and industry business will small modest and environment, that recurring this Vault changing our a market to our portion represent device impact revenue for we've segments med but this reduced of top Specifically, have on exposure impacted on SMBs, dynamics. contract research these these companies. guidance customer a those Based line base, organizations, Combined, segments new account to year. our

our range We have to also for increased uncertainty. account the widened

Cloud, million $XX by we in $XX roughly billion note, the million $X.XXX $XX to will which down do Crossix to by $X.XXX $XXX CRM includes to Subscription from now any XXXX. Crossix to expected partially offset we subscription revenue brings business fiscal and expect not $XX contribute in Commercial quarter-ago. Commercial was Cloud material $XX for the the adoption end the in the We be our million million be top million This $XX contribute Veeva For of from World billion. benefit year, This billion meeting guidance strength previous Crossix. $X.XXX total full-year, from to a from about Physicians expect revenue expect down add-ons. Please is million to guide. full-year, Engage headwinds CRM are for Within million revenue. in of

to providing of when need expected Vault the And revenue we this our be the address to charge to to reduction We’re for is crisis. in is product. of the product free customer mentioned Cloud customers the earlier. $X an start currently is offset use million to of business, continued customers with in flexible million million to reduction Commercial $X expected to anticipated of Services million the includes we Physicians charging COVID-XX million now $XXX driven World strength $X project this the I by subscription million. segments, $XXX This in be Professional by partially $XXX demand. roughly Vault be which timing and

For we be the $XXX over non-GAAP margin anticipate between and full-year, million to XX%. non-GAAP operating of and $XXX operating income million,

to maintaining We customer around of travel expect and savings cost aggressive our through still end our hiring year, move realize to the virtual while plan. the events

This now on $XXX $X.XXX segments Physicians QX customer and projected mentioned $X.XXX targeting We’re be of are to revenue to relative will $X.XX Please expect sequential Crossix services professional businesses due billing revenue seasonality expected muted total to to reductions and earlier Crossix $XX to this note calculated be expected billion to up diluted the the World with as of recognition total QX. benefited revenue in a $XX to in to an in expected This that QX, billings term $X.XX million full-year total. COVID-XX XX% In COVID-XX billion. $XXX greater quarter. be day changes. from million share a million than extra million. impacted billings year count growth we $XXX make revenue impact QX $XXX fully QX of to and EPS to is previous more includes is of approximately of the Calculated an and of potential year's million. of billings for about million related years. QX

and work of million. In on industry. fully operating to to non-GAAP to diluted $XXX pandemic non-GAAP a serve the income Their of address We inspiring is $X.XX based the $X.XX $XXX industry life it spotlight and expect has team help we been $XXX million joining fortunate continues And share expect approximately move to customers sciences Thank summary, million a to Veeva count will industry's operator you EPS to we’re forward. call the able shines I’m to for for importance. to back proud ways quickly step-up turn the on and your the our I the to today. to questions. the find be

Operator

[Operator Thank with Sandler. comes Bracelin Your Piper question first Instructions] Brent you. from

Your line is open.

Brent Bracelin

industry are the roadmap stats Great. of One the kind the Peter question are you increase. new world to visits, follow-up as in really you for you visits, My Tim. to product is XX% of telemedicine think less of physical to around what things about to here. add digital more quick telemedicine visits, and Peter, this, what XX% reduction changing visits for the a relative patient thanks more doctor now make there's that friendly? this platforms doctor it digitally type need where the to for kind

Peter Gassner

for question. thanks Brent, Yes, the

from So visits in April see in the something February yes from lag. near and telemedicine data in and one terms doctor two time, we visits, doctor Crossix XX% to or days real the reduction that's of

So have that in that's we tremendous a asset Crossix.

wanted We're ways. just to to a that's going many I moment there asset. that recognize yes, in leverage a take to tremendous So

April, telemedicine. is XX%, XX% of the done by doctor visits them that Now the what the in other was were of one,

So X% up that was February. from less in than

with it have over So are and is the Internet. sees means each interacting they adapt patients doctors to what other Life Sciences that clearly and that. to

associates software will digital more area in what research that things other more between Veeva Vault the So instead be to of of interact paper. office. to have the the and with view virtual the on patient and in-office clinical in that rather doing site records And go allow last need clinical in there adding is remotely, more all of thing remote having when the to can they happened we're patients providers the and than And remotely enable a Engage healthcare to pharma them then our their to and trials. announced sites visits. then And view that's Site virtual product interactions to doctors, -- research to to, for they was clinical MyVeeva monitoring from we the so a allow mix the investment commercial

and So more are commercial be particularly, clinical enable digital the a pharma to is virtual doing They'll industry that in-person mix doctors, general the on means that then we're I'm make industry convenient and And so things will make in make that's it. more industry more R&D for information it'll excited the more side, digital. that more Overall more -- make it they those in the about in some to can it will we overall why the efficient. what will and efficient, and bring it'll side, have of patients. and

rough, a really it's good help But a healthcare digital that's the to the increased definitely, though overall, move very is it hard ecosystem. go will this it's through. thing which of everybody COVID-XX to in benefit the So even

Brent Bracelin

to These are frame be right the come unique it? way additional platforms. add-on features, that this a isn't Is going change to the to wholesale

Peter Gassner

some them I say evolution would as major, would going it's new well. to of of a products and our say I are Well, all products be

sure. yes new already think has will and customers our this But MyVeeva. products will in this products making better for result bring over I result in in So will there evolution it and time existing

Brent Bracelin

larger million just delays. deal set, QX the as here we guide factored there factoring what's super calculated in imply think moderation $XXX a of Great, little helpful in and does there, are Tim for then billings you that about

it understand billings for baked May assumptions here Just what to a so in you run? short like the into saw as far what's trying in relates in the slight to in April, moderation

Tim Cabral

things we that. Number to the underlying to would time I any period, say couple year, other over one, Brent, change to of things. two And QX it early haven't has the May the relative but seen Yes, for demand as material certainly reduced contributing base in relates last a quarters. guide, are the in renewal

bit up has bit. little QX gone gone a down has quite QX So a and

customers change we quarterly So Brent, my see some potential overall primarily annual around there, requesting we're annual, in that's talked it’s about I whether remarks assumption the which in is what that payment calculated, for timing talking prepared there the also about to to impacts Brent. quarterly, the that's in that whether

bit two seasonality have, We little well. that contributed in it. do business, to the that slightly is So of said as a those impacting I as Crossix

Brent Bracelin

all we with home. you. challenges loud comments. with the and color Mine's the little color, from appreciate work family a have the here, Helpful but Thank

Peter Gassner

Brent. Thanks,

Tim Cabral

Brent. Thanks

Operator

Your next Kirk Materne Evercore with comes question from ISI.

open. is line Your

Kirk Materne

studies impressive about serve have have budget, is things? the projects? Peter, these results right on much. so just might could perspective base too they're the on Yes, that's that about dealing one with to talk At other going all things doing transformation, And client your that they're new question evolving digital transformation take much perspective, plus that that in do many think to lot I your projects one to thanks the sort meaning on the be be a dealing IT is for they no really and same time, and while of you digital much was me would be managing they're a they addition taking them curious concerned obviously, have how would they handle, ability from now. digital dealing very so a to frankly, the through going just science about I thinking of that with that, because Thanks. with

Peter Gassner

Yes, customers all, first Kirk a great hard. I working really of job doing think our they're

hard. So working, I they're rising that's think to They're extra the they're working bottom line, challenge.

of so nature of really in the long lot cycles, think they're that's nights business. they weekends, a after going also and the But it. So

from to approved drug if have going they years want know have six to that, they a now, get now. they So

So they think in long-term cycles.

So they continue to do things.

a they have they have drug that, to Now this and pivot, a with have COVID, emergency candidate, cetera. that to there happened they et diagnostic, do are new they projects to have produce

of their they're emergency for society. are preponderance working on medicine of long-term are of that's to a rest to to the are be need of emergency maybe That's population, not long-term not a pharmaceutical XX% working the the But the as there projects. The projects. working the people XX% gain. for And larger they're on successful provider that on what on do So they working things company. that's especially

favor those they clinical Now those first our new system of a the distributed will or system they of type and our projects, a quality quite that for coalition it's emergency a that’s weeks. it in needed trial few producing three go in that's the time companies, doing uses needed company ventilators some there's and of and

so only from Okay, project. we're do we one that can that. emergency Right, the that benefited

of they of the we're will doing, are and delayed our be to puts be there'll projects, But about equal. on don't process us, maybe that's, investment projects that. that's because cetera the and margin probably emergency et takes Sometimes then an relate business one what change, and for long-term type

Kirk Materne

that's one from is a color virtually. Tim. maybe Tim selling more one helpful from quick, start real about commercial Okay, customers thinking and perspective, quick just your

You'll just that you're maybe giving sales a might and of any but CAC virtual have that near-term, of Do in but thought. all in how just marketing a acquisition your do curious a terms you I think And have you perspective, of even Thanks. or any that perspective, customer the more selling the kind perspective, from only from impact sort long-term. of cost maybe you not can thoughts Veeva on in respect. at not do leverage if in guess efficiency

Peter Gassner

had in-person Veeva the intimacy. live executives deep with is start as one. we our region, for customer and they that's customers company relationships we've in And built Tim can I'll certainly And our often. visiting summits. us Yes, are well. have then on are account that a Customer

Zoom can't been very we But terms in and now. we've company a other virtual that course, do products. of using Of

spreading was our So to We it we'll do continue first customer summit quite at customer that. had knowledge. effective virtually,

in-person. confident in were this. we believe more it a to then and get for of then of think pass as see digital okay relates sciences a life customers. to also with our that. We'll I we're and we'll industry, missing likes to So vaccine they're COVID. over I'm it where time. financing, employees in to people okay. mix they're Everybody the you. in-person, to our a have But a be have also, I is before I'll treatment, we'll largely which normal be And going Tim, it's to going particular, matter and back

Tim Cabral

Kirk, of with address this that remote given echo yes customers, only to we in have, a Sure, Peter the would enables depth relationships environment. really what our industry I I general work not but said, us think

relatively of with that and intimacy than have industry. think, we effectively the depth these I companies have are the the don't relationships more that

any So over needing last weeks, I Kirk seen sales work haven't say our the really processes. to we XX-ish would remotely in of impact terms to

Kirk Materne

much. very thanks Okay,

Operator

comes Your Sandy Draper question from with SunTrust. next

line Your open. is

Sandy Draper

question very this on I it's very you Cloud. guess is Thanks obviously, opportunity. the a Data early first be Peter, could long-term significant the commented much. but

do up stage but why company main it are lot people what data to intensely that want the of of came because take -- is sort has there's a In think or the of hear Top I'd time a release, biotech pharma have signed just to there, at a smaller of distraction, early a XX one probably I terms said when company like, what response but at and been lot the competitor love one it you look operationalized. out you been

or would And so out think to pull I decision, it it's very difficult switch.

the from may you what there And general give look to customers? on distraction, extent it. of or been Thanks. then can to take at feedback have getting So admittedly, some commentary customers a but the a that what's is comments lot

Peter Gassner

Sandy. Thanks in March. launched We it

development with months was did the announced acquisition new that Cloud, something even of something the planned That we Data to was a we announced. day Data around planned, after and things. team Now, we lot the was before right? the Crossix And Cloud mobilized six acquisition closed

March the on starting to is a we stopping when and or lot hey, many of the go on a decided, know other there We we be to that the of this This when But middle happened long-term pandemic need that eyes in forward. a is thing. long-term things. Now were don't in pandemic, thing.

going So launched was this, it the proofs for when pudding, in we like most big new hey people, you but do the something. certainly and to launch noticed, something you're

can you if see Let's do it.

they had have we're that which that B, not choice, I and the Now, innovation. that premise choice believe is needs true. on And A, industry it the is needs

with the In client deeply view Veeva entrenched and modern. the better it's uproot really a entrenched those type come it equivalent you data difficult of to of not client to difficult I software, those uproot was when players. things, server existing server solutions, days, So They're those are started, but very they yes, solution.

and their It's what and The we they daily. the medicines interactions early privacy get like days data in happen what a That's would You could that completeness. do and the doctors with that adopters of will innovation patients all innovation are we safe snowball. sciences it and to and timeliness two in the starts about patient of track feel can't I here. track for, that's people telemedicine, of that I in it knew terms thing looking to today. of accuracy life way, type about talked with how and

color adopters. In the of early a on I’ll little give two terms

large they're They're And do disorder. of they're of a relatively product not whether patient Top them happen already couldn't anything. in they a pharmaceutical sources. brand blood before in check to on market. journeys, data focusing the they're And company, on mapping journeys, XX doing be the which is physicians. One right a with they mapping group rare is patient And their replacing targeting a double that

the company, on company are they platform they're DNA platform company it's engineering is going RNA, market a many is have different platform precision close. medicine but a and that Now, of means candidates have any candidates, they the a some yet, company candidates don't with what types other

patients how they're journeys overall out are market on target So products what and the population, many can targeting they to doctors and how is they're find for and seeing doing those patient really trying physician yet. many patient really

really, and Cloud So those things business there. innovate really would will I on and believe focus just that going are with our grow examples from successful are Data of

Sandy Draper

on now there really willing doesn't sure you about system. think, aggressively five understand becoming Veeva CDMS at want they're I or that's CROs but make but that commentary, more, to real sense it of even differentiation they're restarted. for the on come program. in more maybe rebound, more are trials think, be the Thanks. then I I are And environment follow-up platform for are you more flexibility? near-term customers, seven up when excuse expecting since the will signing guess sound I getting see as new looking the are a customers CROs, more I have start the back? speed, enterprise greater of Great, for a be Do going people like who you the discussion there about, the committed is announcement to we as be, looking obviously urgency CRO One think your the cover Do or guys there's all just things you to going these helpful when trials a partnership about think pressure, they're under speed, are think I to some to innovation,

Peter Gassner

it relates a or Yes, also to now, to up, have trials our a CROs CDMS there's so large little product, clinical it's couple as EDC dip start Yes, large. a they going down and have slow and boom right. and a

the offer give services out ones, And and for So and companies that's seven, large are customers then service now the focused true to technology with the clinical especially say, sponsors in the use are this would want technologies of that operate the to best CROs them that sponsors, CRO in ones happening what's dynamics. they're prepared your to is don't Veeva service They we oriented are what's which and and trial that to biotechs. you Veeva CROs customer large the happened coming Technology interested to for themselves, Veeva on want to CROs the their they're five small operate their attention. be companies. services, very hey, really pay there and to Veeva What's want gets smaller were companies, really small tools we prepared largely companies that these

the four of now, we flexible can than we And XX. of Now, sponsors build instead sometimes for more Simply, why that? can weeks average asking are an the build competition studies. studies faster

For the a the happen has data industry example, in that doesn't or loaded, unloaded existing to amendments, and That studies system. be amendment. is oncology have state-of-the-art in new our

better technology. it's So

a nor at nor do we Now, takes is time. all want area the once. risk change avoidance customers license, of This we, do

ever it's the have first planned going actually here, in was Our patient start delayed huge trial largest but company, trial its with to set clinical biggest their March to June its week few was actually, have trial is fate the just a news EDC, good days. to in so of in first

that's really CDMS on customer is in focused what So the success market. we're

Sandy Draper

Thanks so comments, for Peter. the much

Peter Gassner

Thanks.

Operator

with Your James. Raymond from Bryan next comes question Peterson

line open. Your is

Bryan Peterson

thanks taking Hi, for the questions.

meeting as There some how on hit it's Engage some Is So stats the utilizing to been may some customers think usage. out I on technology. first, I your Cloud rapid of And have headwinds seen of wanted be Commercial the I of impact cuts adoption. there on they're more share there a there how anything thinking from And can trended? your potential curious, are also about that could that's there? Any that motion, thoughts headcount you any business? was digital

Paul Shawah

pretty being to movement I want Hey, like, super and help happened team channel be back side which up just together fundamentally super getting shut countries with I'll Bryan, able whole that industry doesn't and to sales but a much really bit that compared is utilization, so and able that so do how right. starting on kind take just one. is just testament the to Paul. we we're April. the team significant that and of I the is in seeing has utilization. is markets really have the metric and the things most into we've digital a lot to about lead about adoption And really help important been the and them feels February the way up adoption. with important, just at faster because really able product you to people think matter if to you're right pleased to industry good most that through that's many so really One look it's across take thanks. largely different proud And globe. industry, a It's the the coming first, think for Engage And and down able is step the This has back yes that is Veeva I'm if pleased happening to on you're Veeva mean, kind shut been of there turn you we've channel segments. industry out much what's down about open the and the little help

and really adoption right able utilization the what industry understand now product. So Engage. more to more that be that's see customers and and we're and just and we're that of continuing more is focused shift with pleased and really to starting of get the using helping to on continuing out each our is week, most we're more And appreciating and the adoption

Bryan Peterson

hear. different from maybe And good software and here, to That's season different earnings Peter. one gone companies. I'm an of just heard We've messages kind we've curious. through for

framework? change that hiring billion about that been investments long-term the in on do You there think pace curious you of how call came that investments? I'm you confident you're target. near-term pace Thanks, the about any out guys. very of how $X that just or Has think the curious, over

Peter Gassner

management because a I’m step-up. good innovation Yes, let's see that of at to prepared here, of a and great, teams more stress high that's closer now no spend that bad are level, we a three time, of quite just And see of part months. time getting of ever yes and we're when lot things is companies than XXXX and and billion engine. culture great happen. that's great confident part building the is And passage it it it Part $X point of in is a tremendous a team this you good but

better at So customer I that's this better what relationships, felt lead to will Veeva, that and seen innovation. innovation

didn't why that's I future. in quite Gosh, write Bryan. And it confident feeling the I'm So down

I in So you excuse me. write in had and question didn't specific there feel a future, down the but confident XXXX it

Bryan Peterson

of No, you're I about sort hiring guess how referencing I thinking right. was

hiring and short-term, thinking with are freezes, long-term. So obviously differently people

get to curious your So on thoughts that?

Peter Gassner

hiring. Yes,

cetera. you specially message Veeva main at software work there the engineering if have to my of would any out So to that like et people extra is

hiring Yes, We that's the innovation of on. we’re because going hiring. are definitely

quality getting we're hiring, a good the a finding we’re little good process is So environment And too, we're interview faster. candidates. hiring

this, quality for that In to quality they flight count a of to So count to up times on. like work want it's a want we there's time stress think do on. that people And to companies great companies great with companies quality. talent. can business And can on they load

it's boost be think to I real a hiring. for So going our

Bryan Peterson

Peter. thanks, Great,

Operator

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

Your line is open.

Rishi Jaluria

successor. you’ve the about looking start customers to Hey everyone's of with staying certainly are guys, wanted Tim asking working thank live that to going and safe you for that with of taking facing some you sense talked Hopefully and Asia? certain in headwinds standards And to procedures, then to wanted trials, even on Glad you the in they of some delays business visits is remarks, working the right. forward allowed are elective bit usual questions. in some you get to elective in non-essential to and close terms up procedures we're as in are high my your by mean, I can seeing asked a from curve Peter, set. reason I I us they're the elective prepared miss what and Japan little reopenings for seeing than more here. because and ahead the a visits

for follow-up. of for as a maybe that, you an are future, I of your we kind out from that of of conclusions business what what if of the seeing got think to in there? here indication I've sort your And customers the the what we sense does draw wanted and a rest get So can future,

Peter Gassner

et clean your to to return events, gradually of way There's highly not different more, than going vigilant, vaccine and being about general, Japan for treatment. group knows big, everybody different yet. your because to too by think effective normal business, relates cetera I no region, it certainly there's as little no a temptation, a guarded it's much large it's Korea in a China hands but example,

be careful. to you So have

larger that getting they're and we that, to gatherings. a to where in slowly would group more I get careful, And going can before they're being expect to their that very visiting careful staying business, large would countries about now fully other U.S. we're but that return then the back return from people away the groups. need to So we

Rishi Jaluria

Got helpful. it. That’s

in meeting because steep Xx how solutions you a engagement are the seeing these are greater of approved Is changes e-mail kind side normal? the these times post-vaccine, adapting You’re a And of about remote to going then you're sciences impressive irreversible pretty how remote matter Thanks. seeing necessity? virtual a it's are a be February lasting is industry? some XX the lasting term near of basis And no be change? to talking things that's happens? back engagement medium products, long going to Or in of the something more customers April. adoption this on adoption go Philosophically, hopefully to this Engage on long right, some up thinking what about life

Peter Gassner

good Yes, one. that's a

anyways, is the was what longer time. we're of just really think of what industry seeing a an go through period going to over acceleration I

three I transformation industry was probably was just to saw I that think And on of digital accelerate COVID, track, remarkable was was we literally digital we have been is happening shift digital now And of two this that. a couple or pace the the within saw, But adoption. with months. and never career, to years with turn my industry three on seen what's in on increasing. adopt channels. to lockdown, forced over So months steadily It

and to So be allow And remarkable. that putting will be I the but turn ready customers to to prepared. able for place to our also on, customers that call to be technology it's foundation made in to quite our out shamelessly

We're we're seeing getting benefits, more the happens it. I going patients engagement So telemedicine but with make some actually this whole those like with happened seeing it's the are do they more really just working And efficient. deep of the and think shift telehealth like and already think is predict with faster. can't I a do product telemedicine, customers. what we lot pandemic, obviously, to industry

going to more they're it. of do So

digitally, digitally, appreciate and do that more see analogy to I starting true digital they're that they'll engaging the is really are engaging think same more comfortable farmers are moving it faster. time, comfortable of of to where more over benefits doctors here, where

Rishi Jaluria

great, helpful. right, much that’s All Thank guys. so you

Operator

comes Guggenheim Your line question Securities, open. with your is from Wong next Ken

Ken Wong

there? clinical how of do like earlier for the of my product patient, But does more of wondering Peter, know very CDMS in. a you see much the on kind more thoughts sounds like question. be that's Any help it cater thanks your not based taking it really manner. this telehealth for a shift trials seem typically potential traditional just you Great, targeted and to and you product just what into doctor could something potentially I but it's towards MyVeeva to market that mentioned then could push this kind guys transferable.

Peter Gassner

in our MyVeeva, them than enabling about say research Veeva. thousands to life will sponsors, faster industry We're really just I great And clinical that's, otherwise in whole really sites there, business patients we're area, process area. sciences would. involved. in industry. Sciences, I around world to sites mean, tremendous our Life and for overall medicines that over research CTMS, going giving sites. in the they products believe amount patient's business the And clinical the critical for there's within really bring have to the free research and But a First business CDMS, Yes, clinical to operations and And that's feeling. of of a help great clinical medicines, clinical help our that'll that's patients, clinical I a the the excitement to research transforming time whole clinical the the everybody when suite. the And that

and one is I that read So sorry, then didn't that.

was, question do that that Your thing? going and second of telehealth type I see more into

Ken Wong

Correct.

Peter Gassner

a a visit enable I Veeva going to business don't broadly, different. MyVeeva trial. But clinical a remote Yes, in is into the is see telemedicine something that's a to patient from doctor which

in provide people wouldn't at other be for this area. that for and EMRs us that see not caregiving. the that's the you'll think normal I things Yes, the time. We

area really the not ideas really would it's and technology of a same. and Some different are market But that's focus focus on. an the have to you we

Ken Wong

sense could in you're the you, what Got for billings billings in terms or then Tim, And the weigh similar should much weigh baking of out. it. you revenue color. be, term terms assume we quantification in how down that quick in then coming guys a seeing one in that billings? of part, and the the side what's for what the And inorganic how reduction, that any that Thanks down on to are for for of could just terms change of any

Tim Cabral

you're The for is do you two think good billings those guidance Yes, businesses. Ken a I right. proxy for revenue

would think So about I I how it. think that's

want I will exactly a uncertainty, yet little there's really say I bit assumption billings around going to timing to We much that said, haven't terms, gauge a they're shift the talked about land. trying to quantify more would that's where changes there's as slight is, so payment impact a trying to and What billing. of bit

but where of saw one now course, QX, from wasn’t quarterly related this customer a change to All a the we COVID annual billing. customer of in

have we some but So wanting quantify in to at there not it point. this

Ken Wong

thanks lot. Great, a

Operator

Your Morgan with Stan Stanley. comes next Zlotsky question from

Your line open. is

Stan Zlotsky

kind into like improving Perfect. in the follow-up. right in if everybody's business, Thank the seen your actually as help interactions did as quite quarter-to-date it at right has within that's of a sales you side presume continuing with the is then it versus April, sales customers? and in we timeframe, sales is consistently drastically to characterize essentially, customers derivative looking your of interactions business It's level like March, second April pharmaceutical varied March, an the I so in May, the And CPG see that the customers what engagement much for on uptick and space, those between right side Vault very you're quick the have second would within activity the CPG May. derivative, your a guys. is like seeing Maybe what you saw can high prospects far what

Peter Gassner

Sciences. I'll that engagement pick of inside and to sales one, Life

been I it's think high.

myself would intense communicate the of Zooms pressure executives on giving boy, has of than an been a it's had helping than customers them I more helping need. ever been say, account before cooker busier information team time because executive we've and right gosh customers, the we just Our information. they

sales do I bear fruit. think these So they'll engagements,

develop long cycles, long-term, we the have Over relationships. we sales

I supply things terms CPG relatively think that go percentage CPG. had They they had projects, more, CPG speaking on. emergency going also in more of what more had happened the chain they the that of to on. In to But had

did probably conversations a yes, in bit, maybe so not as they So life strengthened sciences. much

Stan Zlotsky

shut on, I then sudden trials, of necessarily downs. although Veeva, and impact little the as from trials Vault to to that to drug kind additional, to if the to there's over your of characterize benefited a all trials, economic a on like not like may all components pause Vault drug all the Got the usage drug far and bit order moving recall need to due within side. drug the the the that everybody's you're as Vault it. hearing would listening development? came have support But trials to COVID kind if And is anything start right additional And in

Tim Cabral

is Tim. Yes, Stan this

would on operations with start over is trial driving talked on I we've and products say time. large It's to help trials help more or the introduced. terms So clinical some of side and it get not side innovation data good there, as to them driven, about and in it starting manage necessarily operation eTMF we've to you're clinical right more of efficiency demand a adoption where penetration is the data effectiveness driven, more have we the other some

the early know adopters. in we're On a the of focused that clinical on and still early side, in innings as data very our side, journey, you CDMS management

impact our the a in doesn't this material So for material will revenue anything not except way, I in way, well, say, Stan.

Vault there reduction talked guidance in we're informed year. the our little certain impact and for are not segments us about, where on a slight the I As of seeing bit

Operator

William Your Suri Bhavan comes from Blair. next question with

Your open. line is

Bhavan Suri

out and when tell larger to they companies that use I bit there's network question biotech the it here. a there, whether have there little until right I you're earlier, pieces plays other we guess smaller answered guys. safe And with we use you're it on effect CRO, bought they to technology better. it call eTMF, across of want some now. of of touch all a CDMS work announcement, CRO they Veeva, the this or use squeezing integrates well, with me think glad better, that I in for to Hey, may a better, a was clinical because Thanks on to that, want but Appreciate those that trial, whatever works sort want hey, to if it pharma to that Veeva look EDC, I companies sort where integration say, is you pieces, the you the wanted want

that's I like is of doing large you out? instances a play clinical see incorrectly? trials that have that am pick there all, about We done Or thinking pharma is CDMS, that did case. We're already with something that effect a could network at that

Peter Gassner

through their suite. thinking processing from integrations if and to Bhavan pre-built Yes, they are is you're this management to the experience straight people, IT have benefits have as there's our refer about full it clinical, sort end-to-end Yes, their and the their correctly, seeing operational clinical our that clinical for Veeva material we and can suite, people a data for that team. suite in Peter. a and of Customers operations productivity clinical

So and that's more pronounced more have scale. they in the larger because companies,

optimization gives benefits. them more so integration more then, And then and

network the So exactly if development clinical higher operations quality on and clinical you having on at a management. we've integrated a demand. data things. then regulatory, It's some they effect it, and safety, get of level, manufacturing, really since cloud between between see that's and network have a And between a whole potential It's data some effect. the there's compelling you effect management that's your the Veeva, message get driving live of the suite on clinical customers of and now operations, compelling. the the safety introduced it's and clinical an And network

Bhavan Suri

Got it, got it.

point, so a EDC in touch the And to standardization have the you space. I some maybe want CROs and I the Obviously, CDMS, competitors competitively. just guess at then couple

EDC you've you've the clinical it's or from CDMS But III if slightly have acquired. top sorry. of data the acquired, while than space reaction any for competitive been patients, in to that's Phase them, product now you've One been but had a capture since specifically we've had does and wins trial again, seen love a them understand multiple wins, yours, different actually space, from

seeing you’re love in Thank out So understand what competitive to the environment there. you.

Peter Gassner

competitive particular any terms change. environment In haven't of seen

of are time operations. their focused customers internal I think care companies and at on all taking this their

same. the have, on back it So to we basics. it's think And it's the advantage our I still is

real the release. real technology. other it's two. with history There's Veeva that, don't We Cloud management more case have clinical management XXX% the integrated data whole is cloud two the on with have every other clinical And that same and time newer based, more real harder, data That's cloud competitors not system. the It's modern large then and in exactly customer suite.

and competitive from lasting are in success any focusing environment. haven't it's on advantages. seen those now So really And our that, customer we the so changes just

ago, agile first We year our summit. There's good the last our able just top about run have couple great in XX before. happy which the sized companies, Summit, we from at I was triple a by were way the studies faster gosh in presentations summit, an and our very to build four could than attendance nimbleness can say and in R&D customers certainly weeks was much customers, virtual were basics, seen, two the the And they weeks would a trial. impactful with we we really we're

those So can public forums, competitive time. their over change those in our stories they success customer favor dynamics in

Operator

Auty And JPMorgan. Sterling our question last comes from with

is open. Your line

Sterling Auty

certainly Tim one this is pandemic. Yes, is earnings your the go out call, final with way and guys, Hi this thanks. to

great a on congratulations So tenure.

the you. examples, what use in and drivers the Thank key terms look, the just high perspective, in if drivers one the wondering of some wondering headwinds, seeing characterize if given this from cases demand, customer key how we the a then from in versus that from most you're but prevalently in could the gave much it? wonder you're is are What performance are of Just you within new coming unpack level you this I Vault just in expansion specifically? of the terms what separate some as seeing of that, areas in from R&D quarter maybe existing customer clinical,

Paul Shawah

to over I’ll turn bit Tim on and performance. I'll the an the this perspective, talk Sterling, industry key Paul. it then to Hey little comment a from about is drivers

Tim that So, to dependent so bit we're on I idea a alluded trial with think earlier trial. this the not little by

delayed That or it's generally not have impact. seeing individual doesn't an just being we're and trials a So as cancellations, paused shifting. are really generally

pipeline have kind of time. projects working some the are that that we're in projects and on, and period deals these been of have budgeted been the So for that

momentum. So these, of need a There is be that you sense continued more kind that is to also in efficient. like times

little a of accelerating thinking improve tailwind, to about of some bit is improve productivity. companies of where able in a these efficiency, projects they're there terms just So

So I it the about turn the performance that over side. I'll of seeing talk a tailwind little Tim a bit to as we're well. to think that's

Tim Cabral

guys you to to Paul. just join for well. August as this second earnings intend Thanks, my you Sure. the Sterling call. know plan in is I last be to

really of in revenue or coming quarter really opportunities. upsell looking we Paul's from both sell weeks quite So material the throughout our fronts. we the think into quarter new cross QX, the versus so, I To point, QX, performance has or last pipeline XX momentum of on the a and the good been seen of haven't in haven't terms in seen the early or shift contribution at

material from shape or no change there's change So that in perspective.

we’re the the for While still comments strong very and be strong, impact modest continue clinical and it's well. seeing as regulatory to side talked on we about, quality

as engines the that sense, Sterling. seen same if still pre-pandemic, three are makes the we've growth of So

Sterling Auty

follow-up, make we way? is about the quarter on we're right then sequential that and to day page. one same the the think does extra It revenue in much How the that housekeeping so sure did just contribute, can

Tim Cabral

Yes, million. about $X

Year So rate the day, about XX $X day. is a roughly Leap our February million run subscription

Sterling Auty

you. thank Perfect,

Operator

back the presenters turn I will to for remarks. any closing the So call

Peter Gassner

And call you very everyone team pandemic. joining work one the day. proud like to I'm to I work I'd combat customers. thank you today. Thanks all much. Veeva our like supporting more the entire for So customers thank with your really for all doing the for every the to to thank work would time they're those

Operator

concludes This today’s conference call.

disconnect. now may You

Veeva Systems (VEEV) 28 May 202021 Q1 Earnings call transcript