VEEV - Earnings call transcript Q2 2021

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to Veeva Systems Fiscal 2021 Second Quarter Results Conference Call. At this time, all participants are in a listen-only mode. After the speaker presentation, there will be a question-and-answer session. [Operator Instructions] I would now like to hand the conference over to Rick Lund, Head of Investor Relations. Thank you. ahead. go Please

Rick Lund

Executive welcome Officer. call and With fiscal second 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; July 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-Q, 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 August 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

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

to metrics also presentation, in on the Form exhibit earnings with I certain just we be financial GAAP to which comparable discuss believe both you With will And call, the reconciliation filed investor website. non-GAAP release aid the Peter. that of in that, found our can supplemental of can over A the as the before to understanding available we On in metrics and our today’s for also A joining an X-K this found it SEC be will are call. reconciliation thank turn results. us.

Peter Gassner

revenue million, and joining a QX year-over-year. XX% you, Subscription XX%. welcome, year-over-year and quarter. non-GAAP margin operating up everyone, today. us grew is was revenue strong Thank XX% $XXX Rick, Total was

which guidance guidance also the This reflects on to our that year how more now above We’re we understand the COVID-XX. improved million the the initial revenue top back-half industry raising is full-year provided adapting in end, is had and life time $X,XXX into we’ve total to of March. to visibility the sciences

look to At Our some from the at the the stockpiling. More quarter now delayed optimistic of shows are starting and telehealth XX% back visits as clinical of the visits areas are up the to that the total life of have visits, at expected data sites trials an Of levels time, half a were pre-COVID in-office patient trending Crossix QX second-half. roughly XX% same of reopen. restarted. sciences improving are are as they studies patient XX% customers visits. that of reversal up end disrupted, with fewer July. and low They second was research procedures more see clinical as reported

the and before higher industry digital aligns our with pandemic. While offerings it approach and Overall, the than the their this from of rethinking is this ago, a few down current a is peak to well significantly months X% XX% future is strategy.

get a virtual with programs for as life for created the we’ve targeted pandemic, our lot of to and This partnership a their at Approved business and Cloud. that’s brand with one there in Overall, the significant MyVeeva share. MyVeeva it free single of discussions strategy. doctors of industry earnings Today, company. talked deals of patients trials for product is our place, information, be large applications. for for our recently connect adopters. and the also for the This for for on domestic patients the to life Physicians market consumer-facing early place potential in the Doctors expand with extra MyVeeva to Veeva and engagement go to looking now make of will where as the wanted quarter, Summit data June. like and pharma is the announced and market, to this. extended of Commercial One the CRM our area, website events for Doctors clinical which the a for Meetings, is MyVeeva is Doctors Engage better has a easier doctors trials mobile provide the for strategic single It I MyVeeva Doctors. areas our doctors for the MyVeeva. doctors. territory and update In our from provide in to MyVeeva the We excitement support an innovation appreciate last of We clinical standard go to update have year. potential One customers type overall a They an our contact mile, the with and industry we services give two since and to application I we sciences online. teams allowed is newer has changer. going new is earliest position a ways game sciences. will the us won Veeva two for provide Engage and quick World serve Veeva for no Meeting on Veeva about increasing format. as this to U.S. companies end on be important the the Email leadership This teams and usage directly and can Veeva easy-to-use Veeva doctors Japanese commercial we’re a through I Veeva days define partner handful gain end will to for Data provided is at product in innovation momentum. with gaining available year digital in customers are they to product currently in call,

three availability provider. take we’re many for innovation legacy confident Leadership The in is needs and market But our market December. This data. longitudinal is We’re Data the early adopters the strategy data years. first encouraged our will by now now working alternative with to offering general targeted U.S. early for Cloud and patient and our progress. in

ahead commercial, been never excited. have Looking in more I

for our We and future customers. innovation continue partnership real well-positioned are to and increase the bring to leadership we our as position

brief update move I a against Vault, to trial our on IQVIA. Before antitrust

near confident that We years, court filed This the and to Due expect we benefit remain Commercial customers, we to in delays, has products Andi. XXXX. case. to in Veeva software our case illegal the For case harms tactics now trial XXXX go Nitro patients to COVID-XX-related Network, business. our and and and of end include IQVIA monopoly antitrust used monopoly Veeva. could maintain data their leverage their Cloud impacted

On to work the streamline drug Veeva development. Vault side, customers they increasingly look as to

QMS, globally. had to selected to Veeva Momentum decision clinical a great XX made of the adopt is quarters. and greatest XX top of and pharma The as well. this the for every seeing regulatory. Development building top both customers is areas area of XX their and across in top XX another Vault quarter RIM Cloud. are record Vault QualityDocs suite our one was modernize. Two selected QMS enterprise deploy as for a standards. We registrations top This full It need QualityDocs Vault one pharma will also

technology, and which have In top We For of second in first the first more Vault instance, just product. we since our than CTMS, the seven years operations CRO. go in a had XX, we XX outstanding quarter, we had with heart top released quarter. customers another signed the added is our now CTMS top an live XX three clinical

had also We top pilot CTMS pharma. additional two XX started

I’m studies on Veeva on brings, the than we the the started with complex making oncology good a had CDMS deployment. benefit side. top a now really who also about will We’re data XXX to If broader excited CDMS. and of win innovation that as Vault appreciate well progress agility lead clinical. could eTMF quarter, pharma, the Customers In handful as More a Vault Vault CTMS. second clinical successful, CDMS. the this have XX with trials and a integration of run on

continues to expand. in position operations leadership Our clinical

all it’s MyVeeva in there’s Clinical making area lot trials. great and in large data, together interest We’re and is a progress for clinical nicely. a clinical of coming

industries on impacted Finally, encouraged The I’d having use customers success life to serve who we by with efforts Veeva. I’m their we’re by be But of continue expand share outside of to existing like our the the to update continue an pandemic. sciences.

applications For instance, business units. incumbent will all replace quality top across the an our CPG with their established company

executing customers. top strong XX and agrichemicals Additionally, we had standard. well. continue The solutions has regulatory selected a progress team is make enterprise as to with quarter the new Overall, business their

mentor going Veeva is part-time many staying Before Veeva the to Tim closing, an I’m to I team. forward with years special want advisor his partnership. us, give earnings of last with Tim. This his and grateful to thanks as a for call and basis is on

Finally, to our to and many globe. ways to of And looking Veeva thank to with of to pandemic deepening the lives new this I’d for forward With their to come. up like years I’d over and to turn acknowledge to creativity come our with employees improve I’ll the the for Veeva’s tireless support customers. it better patients that, fight and innovation to to efforts all for their customers partnership around I’m like Tim. customers continue

Tim Cabral

Thanks, Peter.

business refocused second-half across growth. strongest and had which ever. QMS and backdrop, Commercial products gaining customers uptake to mentioned, saw strong the investments long-term are in had relatively sciences overall, our adoption. their working Vault like After industry spring, key saw demand great Peter broader CTMS, for on and increased Against healthy operations the year. in our core and life in portfolio to continue outlook for many are support remains the confident industry its continuity As a QualityDocs projects We have product QX. this make of through of the performance our customers technology quarter we bookings

demand in a applications. Development of In range was of resilient Cloud particularly R&D across Veeva implementations addition, services

demand Taken a which, together, in revenue $XX drive also strong our outperformance in above our these Strong bookings outperformance, billings was resulted demand, calculated meaningful our that total services customer for fewer-than-expected drove in million help better-than-expected billings with guidance changes. QX. factors also new deals for QX Calculated year. in closed requests closed quarter. which billings in from included the for the This benefited expected duration the and QX, later subscription were billing coupled business

shaped QX. that quarter was XXX record the employees net added a favorable environment the dynamic Another We hiring for in Veeva. new

new program hiring of Our our class Veeva, feeds primarily the that our services Generation university by teams. hiring product was and boosted

for in are year. the We investing and to aggressive the have the committed back-half of an hiring business plan

margin operating points QX, savings travel-related and event in basis saw expenses. customer Additionally, XXX from lower benefit cost

uncertainty the continued of rest Given in not the cost we this savings the at ongoing see these around to of expect quite pandemic, year, benefit. although the level areas for

Turning to guidance.

combined, quarter, business. and that outlook Please small industry mindful our discussed customer face customers by our and certain segments dynamics overall of growing our that products last we headwinds. remain the for continue Though COVID-XX-related of improving informed as portion note services. to demand represent and environment a is Our segments for these continued we

fourth full-year, the unchanged the of $X,XXX ahead total million be back revenue brings outlook Commercial we $XXX revenue is to This million call $X,XXX million, to in be we expected $XXX subscription million revenue $XX full-year Meanwhile, our is be for contribution early the to quarter at million. our expect Cloud provided Crossix to For about full-year full-year. the to roughly March. Vault is increase revenue Subscription anticipated million. $X,XXX subscription expected during with guidance $XX now million. be roughly to

are both World, spend headlines is we persisted virtual somewhat levels. our quarter. to Physicians Advertising momentum. events Crossix the pre-COVID-XX rebounding of neither in with While businesses in But see second with expectations line performed and for are the starting these QX near saw and

of our total revenue full-year unchanged. $XX million So remains million guidance to $XX

on of to and $X.XX $XXX EPS income a is operating operating projected $XXX $X.XX expected non-GAAP $XXX between count full-year margin approximately million, Full-year to diluted be share million. non-GAAP Our million of a roughly XX%. be fully to is

year-over-year for calculated ahead, the We $X,XXX third $XXX anticipate Looking revised are end full-year up billings we’ve Therefore, do quarterly million, to our guidance. highly a previous is the factors remember $X,XXX million metric do a this indicator billings of basis. of that underlying our to about good our believe calculated quarter. variable of million internally. there the high that it not from numerous Please momentum we of not business manage we on make comparisons and of it

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

are for are upon million, cash excess up We previously operations, full-year our the raising also strong in seeing to our the demand million tax $XXX full-year billings. benefit based from flow guidance we from $XXX expected excluding

contributing share For be be operating and projected revenue million $XXX to a $XXX to QX, to million. $XXX approximately $XXX subscription $XXX EPS of total million, Non-GAAP million. diluted $X.XX $XXX million about income is is based $X.XX fully revenue count expected to to expected to on million non-GAAP is with be

take to to moment like would a thanks. I close, my I express Before

to Matt to great teamwork Board me role of XX innovation and thank the always the and partners values. the incredible amazing team for giving over entire and opportunity First, being leadership entrusting team and the I CFO. our execution, Thanks the for living of Veeva Peter, spirit and past this with want for me our years,

would turn of day. focus ever in leadership I’m their to my it, And on the such for it mission-critical with Veeva Thanks impact as excellence work hands front I’ll has the the the they I’m a questions. our us Veeva bullish and Brent with over in confident and customers opportunity I’m operator like for as team to today. do we’re capable every leaving in for in Lastly, now, joining for industry. making extremely I thank my Today, team.

Operator

Lynch. America [Operator question Merrill of Instructions] from is Our Sills first Bank Brad with

Your line is open.

Brad Sills

guys, on your Tim, new Thanks, great. and, Oh, role. congratulations

You’ll be missed.

a been help You’ve years. big over the

Tim Cabral

Thanks, Brad.

Brad Sills

absolutely. Yes,

I kinds that large the on feel like clinical. at category. the a been really there to referenceability these focus my kind we So this – know had after deals top for more Obviously, the and like coming it XX on of is kind go sounds set expect feature of CDMS and you there. Do question point? building CDMS? Should you’re has just deal of of you

Peter Gassner

we’re complex Yes, are areas, Yes. that mature. do growing incrementally business, is take Brad, yes. one. the I I’ll these product getting that, more clinical. The feel

area, things capture core it’s the right part I to early. there’s We’re in It’s a feel getting some reference data we’re more electronic customers. clinical, lot a big Still broad like too, is the trials. like It’s early. CDMS, on mature MyVeeva become CDMS, starting for The of in of but in but new track. pretty its product, clinical

So happy with it. doing I’m well. really we’re

Brad Sills

it I we Thanks. then catalyst life win CPG so much, in that segment great. potential the a sounds chemical is the That’s talked like of first previously life you’ve And its industry? for that of sciences? this outside as Thanks Peter. here, outside know sciences, Should that cosmetics. kind agrochemical, and about view

Peter Gassner

do strongest verticals, our say, would some I including CPG have two and agrochemicals. chemicals, sciences, life some Outside cosmetics. We

now. agrochemical We handful have of a customers

I has would CPG changed focus. I nothing say, would is – main cosmetics and still – but our there. So

Brad Sills

it. much, Got so Thanks Great. Peter.

Peter Gassner

you. Thank

Operator

Kalia next is Saket Our Barclays. question from with with

Your line is open.

Saket Kalia

Hey, guys, my thanks congrats Okay, echo for let here. great. here And you, Tim. taking me questions for my

Tim Cabral

Thank you, sir.

Saket Kalia

something where sure. Is adoption is customer Peter. is like maybe more – Quality? first there about just increased customers is what something success Veeva favor of that Can replace talk what the else they Maybe this a Maybe little something to think is like using to adoption? driving you, prompting you of quality? in helping you bit reference before feel broaden were Or you for

Peter Gassner

question. great a It’s

we’ve of number point but one, factors. it’s of suite. the I exactly combination to filled out – I a think a now couldn’t there’s

QualityDocs SOP for management. have the We

for the We that things the have types had all one unified those CAPAs we Management Quality of in deviations, have training, System before. and also Nobody platform.

So hard it to bit was for at little first. a understand customers

are early early people Now That’s do it. of seeing interest. lot a – creating adopters

boost, and one of That’s end to than of life time unheard the in little existing systems. there’s their a measure exceedingly That’s browser and the the The a us performs need It view performance fast Vault. provides from is all of, COVID thing remotely document promote. actually, think, about we access more around average users We things it’s less I to okay, world. everybody seconds. time, that’s bit sciences, because the perform. X.X

are these providing customer is momentum. So conservative know, very most things thing quality conservative. But one to maybe our segment,

So in is the fast conservative segment fact really that outstanding. we’re moving this

Saket Kalia

bit maybe is you, a utilization, for Physicians World that, maybe look remote healthier I’m more follow-up some my is for talk like how Maybe that impacting like little if of just what you professional higher I at some from engagements. gross great. That’s Can maybe But services margin, things about imagine curious Tim. all?

Tim Cabral

Yes.

the what hit on head quarter. the services drivers the two professional terms of you’ve of think I to head this terms primary saw in the we nail – in margin

Just really at to And business travel time, recap, utilization. strong time, of strong in a a of most demand don’t has that any bit travel leading to costs have the the really same Saket. we

of benefit you But of said, our bottom while, needle professional services line they as in they did So move the terms see the to in gross the World, did that of really we size It doesn’t Physicians services. business expected. size margin. overall in that line relative well the QX. I with in of our what

Saket Kalia

Thanks, helpful. guys. Very it. Got

Operator

question Next Stifel. Tom from is with Roderick

Your line is open.

Tom Roderick

we’ll I Great. questions. you it. fantastic miss And, It’s Thank you. with my working Tim, been appreciate for taking you.

on of deeper question, in you for next I’d love kind the bit Peter, you. a adventures So can the to this. guess, of and, handle dive luck I best little

and pull you’re are the we with plays going that’s purchases longer-term picture portfolio on looking Obviously, you more to conversations trigger on think very buyers Can then out the I’m kind across In the on with particularly manifesting new how just big spending near-term, the one the how going themselves net of with sure picture having is years of near-term caution big at on about thinking when you respect your do there’s that’s favorable. about IT. space. interested strategic some to about trials and net three new Vault sort with the picture the and strategic activity As that talk the and and trends on side?

Peter Gassner

drug years high Yes. take XX-year a level, sciences these to think, – a long bring to Tom, the know cycle. long their XX product view things market, as I has on life life could important to

And start and it don’t hasn’t emergencies, delays – that have a project non-Veeva. might There non-Veeva, they sometimes long-term to burst like relates a view anything relate with, projects. might So When they see We priorities changed. business of or customers COVID-related that They have shift our may little one which caused existing relate or for that bit. we Veeva delay see to do us. a Veeva, little when to of to that.

good. So – digital. in all for but They’re all, and it’s efficiency looking

and through feels know life comfortable causing found burst it’s with – me sciences thing nice they this is COVID. think has society like their for a see way it. to good They can and their and feels way of I it’s have they very steady. very totally contribute and So for It it’s it innovation majorly us and to

Tom Roderick

of being modeling at perspective, year. shown of Can how a this roll model. for a clinical Take users how thinking in out pay the the side you’ve through to to excited That’s other will from as pricing about just Yes, hear perspective enthusiasm that this that, MyVeeva, or share the this really even out end it? And year? then couple you might that’s with us go-to-market access sort then side And how out one for trial quarters customers now the out in later coming on on for start and fantastic. a to this of So great. for some the patients of you and plays the doctors. us access this play can

Peter Gassner

Yes.

for trials you’re clinical patients These are right? in about it, It’s doctors. and excited right. the for Veeva, very applications and new We’re consumers,

that, And benefit In we patients That’s as that, for far a the when little into reasonable amount details customer success charging – life be bit the go we’ll sciences. that monetize too right? able of we’ll early how there forming go exactly that model, and value way then won’t monetize forward. our of that’s doctors be what it’s through with the product directly to And the first. we’re early just adopters. as providing terms and for of of a on the in we’ll that, tremendous to and as focus size There’s or where we really a

Tom Roderick

it. to in Thank appreciate very I Great. you look that. Fantastic. forward We more much.

Peter Gassner

Thanks, Tom.

Operator

is from Davis SVB Stephanie question Next Leerink. with

open. is line Your

Stephanie Davis Demko

guys, on them. echo Hey, move the congrats a well-deserved let quarter on. on and me Congrats

novo competitive into you new hoping So little data. the I the or finish for deeper these clients introduction? And what could dive a they over bit it’s given longitudinal wins in pushed was line, takeaways? patient new relatively Were de

Peter Gassner

patient take They that Peter. they is Yes. been before. looking answer to people The sure. competitive, that that answer analyze longitudinal one. some These patient they’re I’ll were – that’s to This for able data, hadn’t questions These takeaways. to guess, – I these were not data were were

So to a specific they’re brand.

data have because and maybe feel would today. unsatisfied strong, looked something and They’re other go the they Veeva they out data Well, there. sets maybe looking partly sets get partnerships decided not to there’s with strong that They with better innovation. like unsatisfied. at for they too with have that’s they’re ours, So

main on I’m improve not about. is about going shape excited the what the product. with But thing really they’re early It’s and sale. journey to to this So the That’s the us. together the partnership know working adopters, help thing along the and early the main

getting feedback. early from just We’re It’s invaluable these adopters.

Stephanie Davis Demko

just World, events continuing than and us the ongoing? virtual the still a pivoting you found given Crossix the just any many longer ways guidance grow business then monetize expected. Have pandemic alternative of for Physicians to to And events Understood. with are bit reiterate and

Peter Gassner

Yes.

that. on bullish pretty We’re

we our that’s pandemic really people. because is that, think everybody is have go impressed to customers longer here we And a, than they’re So virtual uptick – as looking digital forward, yes, some business a something in being and realizing forward I little power with they we’re of the is initially partnering in expected events. the on

plans there. So pretty excited about we’re our

Stephanie Davis Demko

you understood. Okay, for Thank that update.

Peter Gassner

you. Thank

Operator

next with question Joe from Our is Baird. Vruwink

Your open. line is

Joe Vruwink

Hello, to commercial things to when wanted areas to best months? and to you And on guess, having there’s science suite. wishes couple refer I visibility also your go excited are everyone, Great. being the I extend never comments Tim. more back my around Peter, particular of the maybe Veeva’s life there visibility just there customers within commercial more things of where about Are last into some dive create never months? things, last maybe the to the products that But few touched this is which excited? driving things, few maybe things And and that, actually perhaps that broader in are one you events comment just a set and you’ve on the area. integrate Engage you are been specific that ability into could more if new virtual any maybe of into that

Peter Gassner

I value is like not and things horizon to And like, only is, in MyVeeva of to planning are it’s XXXX, with XXXX a Engage, here but really have things. we towards combination say, my would and longer-term, One usually excited customers I focus. our feel right? do a with little my events. impactful a commercial, go excited that’s we’re I we potential So virtual digital, or as to with of about what get about. add ton Well, the I things I’m going feel

large I feedback very innovation side. commercial is the And customers. early Data then data, is a on And that the technology-based from can see very that’s strategic. bringing to Cloud, So we’re pure value the and customers market, added the the the that

only say in together. is And hiring, and the procedures hiring, important. pandemic our we’re experienced around also that. into the that’s that and basically this bringing So policies the would and partnership, the get causing how And Veeva awesome but customers the the the the and last teaching of to graduates thing, in then right new stress way our closer not company partnership the I just them time

good So, there’s just right, work of future. our really about and maybe together you and sprinkling is the come things hard I’m timing luck. But some sometimes optimistic and

Joe Vruwink

you other beyond the model? With top other Okay, line you already, I greater question gears you’re high than I’m things helpful. XX% still watermark. amount and upside providing want back performance Because brought a a hiring. other there doing And touched drivers Veeva as Are professional of that’s profitability. being up, in leverage? have on to shift there just the curious, above strong already good are the of kind things service margins on

Tim Cabral

this Yes. Hey, Joe, is Tim.

other to that area our benefit travel-related customer tune XXX about The saw was of quarter we to little we we points the basis expenses that all moved very in fact and of the virtual. had the events

both well, tune operating those So for materially – performance QX. the impacted basis points margin to impacted the of XXX

a level that. do year two the in of As we we across less than at little uncertainty savings probably and look Joe, saw pandemic, likely out in the the the QX, expect we bit given those expense lines, to not continue,

Joe Vruwink

Thank is That helpful. you, both.

Operator

Auty Co. is JPMorgan with question from next and Our Chase Sterling

is Your line open.

Sterling Auty

investors, a guys. I’m kind tenure. you Hi, could congratulations I’m from just getting Thanks. great Tim, of question set curious just Yes. level if Veeva. answer to on a frequently

how new just many seeing? So might trials you you Vaults support quantify a way they’re to up COVID-XX, As And wondering be the and at is research? think COVID about might the starting benefits be be how looking looking you of that Vault might to are clinical benefiting COVID-XX investors for, from? many there

Peter Gassner

one. Peter. exact it’s A Sterling, for very that is work numbers you. specific I’ll I to take Hey, COVID-XX. of small portion our have don’t

strategic. and it’s Now, it’s important

if very a life had it’s team work, a to But or portion. you overall hustle small done really work revenue. of sciences and clinical that has it’s portion business really overall, and of important. our small we’ve sciences where And the so COVID-XX we life very help. is technologies can trial financial, But look terms at in

Sterling Auty

you one going be that biggest Great. quick what follow-ups. to use case? MyVeeva its I do is to level, high Doctors. for biggest think you A what expect the use for do I And understand, the give then case solution? be The you But Can think, us intention.

Paul Shawah

this Sterling, is… Hey,

Peter Gassner

don’t Yes, Yes. you Paul, take why that one?

Paul Shawah

one. that right. take to I All Yes. want

this So for a to a view Yes, us mean, in question. kind direction and digital. – really day of is going platform the doing one. next a digital What as this Sterling. a it’s that’s of different this that really is significant approach innovation here lead I kind the Paul, to next and lead industry space. Thanks It’s I we’re and

– would it’s If takes with have every you brands. law Every digitally the pharma it’s accessible that to They that complex up so a so HCP, – different with different companies, different of that multiply pocket And to from many to app many remember are so problem of via when love with companies, solving the able company dealing different or doctors, it’s download deal end with you you they have too and website. doctor. the can’t fact accessible most those think they’d engage out, the because in companies. they be pharma so for pharma any, probably about to They just go multiple via many different But many websites, an multiple large passwords. it’s the to numbers apps. be

all of putting We’re place. that into one

it a in all app, doctor website. easy the industry, one place really And to the building it around. or making We’re for we’re entire on on an access

company a science samples. share person differently that a create human There’s doing means to from there’s to who We’re And life to involved. relationship or able once the they’re is certain sciences human connection able from the request medical rep they the the some the to digital they’re connection, HCP. things. chat, able a they’re creating being, standpoint or with able a information, do They’re that is, what liaison

of this use about – our So interested we’ve of – real a this. secure interest communication. talk early as prospective we’ve ton They’re as had after with cases some announced customers, we with in

interact do secure how customers with a that compliant. they is So in way

not by Engage accessible So do a things message do doing be like text to compliant. They’re their to that on may ways be for via like things them. terms. looking schedule like samples own would be, things Meetings it they’re looking to MyVeeva with so But requesting more doctor

they about how to they we’re want big reps. it way access the the to problem That’s and the solving for that think relationship when enhance with sciences to their life really, the we’re So and that to making it. have easy really doctor is,

Sterling Auty

so Thank Excellent. you much.

Operator

Wong question Securities. Ken from is Next with Guggenheim

open. Guggenheim Wong is Securities. Ken line with Your

Your open. line is

Ken Wong

that, about mute. sorry Oh,

You into sort a you grander as view market? guys Or on have one-off to aspirations focused expand primarily consumer? we previously have customers? push particular do Should just MyVeeva guys of that biotech pharma into

Paul Shawah

Yes.

and So of this products this that, is that pharma hey, they just think or device their to for think, patients, full doctors is portfolio patients. interesting about they the think practice an be one. products their their just use or don’t that When applicable necessarily med the they could to about

life more we’re lead said could that long-term focus interact med with a vision is us down customer. we us companies. to path and would – as The life device. Having on enabling into. us sciences which play and a our life doing is, Now, a certainly solution long-term grow today are Remember, that, able here we something a over broadly that’s for what HEPs for that companies, that is would for sciences purely consumer to the time us but sciences

– that about capabilities processes lot some and But a is longer-term That’s to potential the of today. enabling the have or that focus. need what we’re not they thinking there our and they but improve. that’s We’re really

life thinking pharma, really about We’re that traditional serve. customer the pure biotech sciences, we

Ken Wong

Tim, without Paul. asking a you can’t question. Thanks, leave And you let then, Great.

maybe kind XQ about in terms things how Help is the seasonality of of early forward calculated back-half? you understand, into think in QX? XXX, guide, we potential one-off think light that us a of Any or the a mentioned be aware much As of of should guess, I look, I Street. kind realignments the we guess, billings pull little signings. of I

Tim Cabral

Hey, Yes. Ken.

QX duration increase two renewal of the expense into two terms the underlying last of thought we the QX, then we better seasonal there QX. in base. the talked going at pull a drivers a renewal means quarters of is forward the bit those So are to thing got in QX seasonal pulled of other which in and QX close billing and QX about deals basis QX that in we’re in those And

So little movement compared we’re QX slightly as QX towards see seeing and it to last bit a we QX. year, base, renewal more lower,

Ken Wong

the Thanks for it. Got color.

Tim Cabral

Thank Yep, you.

Operator

with Rishi from is D.A. Davidson. question next Our Jaluria

is open. line Your

Rishi Jaluria

pleasure and conferences. everyone years. else over so you wishing thanks with for virtual echo about And, I a guys, great you start want Hey, and best the my taking I working Tim, by much the questions. to been asking it’s

whatnot. So commercial not if you and I’m had a few mistaken, of them,

level conferences Given a a how replicate have has best How networking and been And from that referenceability being is other so environment? best got of share – virtual important customers it then and referenceability to able to the having Veeva in some way follow-up. I’ve of and able to being having cases virtual each use practices. in with

Peter Gassner

It’s There working are well. cons. well. and pros working It’s

the we do have with in I recognize face-to-face day. are those customers First, relationships good developed largely and our

– think we’re – some extent, a that. to to difficult utilizing we wouldn’t develop I relationships more the it in We virtual new bit. it are world? is maybe So is

same that, having else. said with we’re footing Now, everyone on the

used looking that to seeing our So on to I we’re think forward they’re person our very well again. we’re executing and events. in getting But customers

Rishi Jaluria

XXX Great. then events. when effectively you That’s that. and I bps that physical quantifying of having savings And Tim, appreciate the of T&E and, And helpful. quantify you’re not $X �� from

now cases person? I we’re to of virtual environment? a this shift realizing to other we about sustainability right in cost sustainable the of beyond versus, that. year, to levels selling how even try this the return doing in again, resembling But if is that the things actually In we savings? think post-COVID, in so a how training in certain virtual put savings doing there Just kind doing and think first permanent you’re software that are do going some of implementations of on something to more do words, normal, back seen think these number I’ve cost

Tim Cabral

lean I don’t Yes. do we next the any Rishi, But way in guidance work year. I I in want – the point for will think future. hitting certainly to of terms a on into you’re think

asked engagement events, we when customers certainly Peter is our were with You imagine, about the question plan what to you face-to-face to and our back those about before. move our talk heard him we’re customer just would the enjoy – they with them. I And

see people the because during get say travel companies, time, virtual I that will albeit the save three like that incredibly think all this some going do instead during I via to seeing going Does people we’re travel would have in do using not benefit, that think I you’re connect. see On had some means connected of benefit, a other to effective companies And future? those possibilities. are you’re we Zoom I and think companies benefit to at across having side, customer, – benefit. certainly to all you have extent this time. person to one And will are the two pandemic to

Rishi Jaluria

you. Thank helpful. really That’s Great.

Operator

Our next with question from Stan Morgan Zlotsky Stanley. is

Your line open. is

Stan Zlotsky

guys. the Perfect. follow-up. meantime, XX you in since very quick win Phase two customers since what been Thank from managed And X at acquisition. comments guys top qualitative pharma there? also have during you’re one over so a It’s – acquired. on level. two you little a them the Maybe seeing in a to Metadata the much, have just Well, high seen you year What was time? a that Because question have

Peter Gassner

are Stan, strong it’s by Peter. Metadata is market share competitor. in the the space. leader They a

innovation the MyVeeva with And a honestly the clinic our acquisition of tightly it database together data and focus to seen results clinical to doing that’s lot the change operations not with clinical for clinical things from really bringing suite this area. trials. we’re on management, now as that’s clinical integrated own have We whole that

particular I’m a Metadata, from still competitor. seeing they’re strong So not changes

Stan Zlotsky

QX there? on And appreciate. in Thank was would some of also about you. to Okay, the left. you the Hi, Tim maybe you QX? just talked you make saw following quantification before appropriately he some and on up that billings perfect. wanted I maybe on just pull-forward that us help billings quantify guys Ken’s of sure question, that into concessions QX, drilled And could any

Peter Gassner

Sure. question. Stan, the thanks for

other some around probably see millions QX very seeing too would be changes. from So of to there didn’t overall compared life pull-forward, probably There few thought not is seeing. we as most that about, flow very it is QX. segments that in call the much in We we of pandemic much relatively which that. the on into not I and it Stan, much see But material of the other in companies relates as our the we Stan. billing, we’re be one cash healthy sciences it than to you’re more about QX We that are it some some are I that first not Stan, like with, in a customer with and the as have requests overall, really remains much. talking didn’t segments – would engaged back-half in Where talked it’s may expected, think the billings seeing companies, industries area, we’re customers that to went a testament

Stan Zlotsky

Thank it. Got you.

Peter Gassner

Sure.

Operator

from question is with Next Brian James. Peterson Raymond

with Peterson James. Brian open. is line Your Raymond

Your line is open.

Brian Peterson

on just calls the me. sorry, by so again, – starting we Oh, of results. what life sciences? billings And investments questions in you just go-to-market competitive dynamics the but accelerated base. we about by kind the those button, the absolutely. will sounds mute outside and miss markets. But no some out maybe I’m the But confused OLS, product for – in congratulations way, these on in it Tim, we of adding customer of to you’ve the customers like curious about should just you’re some think learned when fit And on

Peter Gassner

we’ve we’ve area, that honed and motion Hi, products is quality into Brian, focusing really this What the our is take learned where our fit regulatory of we’re industries. is, Peter. one. these I’ll working the kind and

go-to-market, as In be terms of go that’ll we gradual expansion forward.

markets a as data sized market. products CPG, is this big remember, this are This inside life a good. But market clinical and it’s there reasonable our sciences. about management in is Now cosmetics, big as

see we’ll steady nothing increases, drastic. So but

Brian Peterson

your just relates at you’ve as business things I if seen by Just curious geographies, I’m on Understood. in COVID-XX, looking with different across there’s geography? to question markets. And trends it guys. know color manifest one different Thanks, all? more maybe think, to that I get

Peter Gassner

I think, Yes. geography, we’re steady. By pretty

seen haven’t things. We

activity, no too have business of right? Europe financial largely mostly the Now getting or we interactions, ways, to gone change employees customers Asia, many geographic person, in not. terms in to back But In visiting mix. together, see much, things performance normal in difference U.S. in not

Operator

Our is from Sandy with Draper next Securities. question Truist

Your line open. is

Sandy Draper

a Thank this Paul. you probably have been for just follow-up, my asked. of very much. Most questions Maybe is

a separated but mean, partner on that it’s on the app? phone, the and pushing – up and Doctors, comments pharma have about it’s I’m or Or different pharma the the for can doc talking companies? information. get a the and MyVeeva there how can interacting sign customer, and how company logistically, you doctor, is, trying companies, a different up app four I four the different of instances has product your around I’m pharma out the with you’re understand information On understand trying you the for to between get does have one if setup just for customer, Pharma the to many product where however companies are

Paul Shawah

question. Yes. described there. good magic, that precisely just right you a is what That’s And the

and one it. In one so one powerful on website. then device. fact, and why it’s be they create the by it’s company as app And That’s on app a and they’re invited connection can it’s one

then have much one one So LinkedIn, life sciences then they’ll there, LinkedIn everyday a and profile connect and one-time, that kind create once, on across – will connect on model, able and get all up be where of same thing can of set doctor might you you’re from that you’re with one anybody you single will through to a think of on application. people. MyVeeva with your Once analogy, account to LinkedIn. invited, may have world is they’ll start and you about an you

order standalone So why an combination the things that unique relationship versus different so And else the of it’s digital the combined nothing we then see a it’s it’s like with effective. of pure that exists why that’s relationship, with relationship, without that. digital industry, one kind a magnitude really more of that, consistently digital why pretty the precisely is – relationship because reason and the in

kind with is, at higher much office, for rate It’s the of and key corporate it’s look say, because another approved sent human relationship, combining home with e-mail that much, let’s with you e-mail a being, that So also digital a MyVeeva. e-mail when human versus example engagement the the of perfect rate from by an that’s relationships. with approved engagement point

yes, good, So question. really insightful

Peter Gassner

Yes.

about this one and a Sandy, thing search, manager, or company think and think to amazing Like you things there. of that. the about that find brand, and you’re on revolutionary for it searching you connected are find pile a way kind you all of it. to there person Absolutely in then to go That’s the a is contact you really. Okay, the

Sandy Draper

it. have And a actually that’s both of Got only my Don’t guys. question. commentary That’s really helpful you, from follow-up.

So I’ll step queue. back in the

Peter Gassner

Thanks, Sandy.

Operator

Our next Tyler question Radke from is Citi. with

open. Your line is

Tyler Radke

I the for I you. customer. All very think Peter, wanted is right. question CRO much. to the Thanks ask about

your selection some deal of the kind customer think maybe But where quarter and us first signed top that Obviously, How were that rest your a with ultimately you to? CTMS seven of kind CRO. I more in base. were a we through in a they just headwinds segment greater how big are CRO CRO the could evolve you see just you I general. the opportunity walk kind believe And ago, bit COVID process. facing cautious of of on

Peter Gassner

a get couldn’t being were the they’re by also particularly area, customers channel out a small So but because data hit. our that’s we their both, CRO yes. for cautious trials COVID, will on hit and bit a for right? they got of management large. They Yes, business clinical would immediate pretty CRO stopped, management because very use is there, important our software, for clinical data for, us, They do sometimes

of is – they’re one. the was broadly not and terms Their user for not they it and customer, particular, it the doing they to. doing a it of heartbeat it’s had fast, That’s efficiency. before and deal have of systems area, get process they people. the lot In in They this CTMS it’s this in that not it. out configurable, increased friendly, wanted or couldn’t of CTMS CRO it’s information that more

together that a other promising. it’s network, data into about management realizing part our things connecting system is Veeva clinical clinical And is quite they’re and is So efficiency. the

A their better think are need they to with it’s couple Veeva, technologies. most I own an which But realizing is unless industry technology, to, align a standard and close do, try right? there’s So for develop be like the to probably would to some that becoming. CROs to Veeva

Tyler Radke

whether business Obviously, increase Helpful. business – better in But a the saw – from notable wanted or up improving of to and kind follow-up, or second was right just by function, quarter. step here you’ve – any was by the by the curious trends gradually trends trends. continue seen through August I like you And given there that far? if kind improvement quarter so increasing sounds to understand that it kind it’s of my go a in linearity just of of QX quarter, into kind quarter,

Tim Cabral

And Tyler, way. this is Tim, the by

how the so pandemic? during shaping Just Is trends specifically? – clear, talking are what or that as asking you’re about I’m are you about the

Tyler Radke

Yes.

of by we’re quarter business if it obviously then kind improving steadily – kind of your has activity and was kind trends? QX or by into Just sorry, now continued month throughout business your QX, that of

Tim Cabral

Yes.

new and like. in as new software quarter customers and you our and see I and, I I I know say think guess, they have to that is, had users, you products linearity want add never with the really engage have. a need say strong would Peter, – when I work we if We us with buy this. us what don’t would companies a I from guess, some to they

As And early short to bit way work August. companies pause this our demand. of the say. got that going the was to Veeva was continues to it And into are And that like in a would QX primarily during relates say, would a I we’ve pandemic, QX, of that and good customers I say used time, new Tyler. I out pause, continued probably a we there coming software seen as would

Tyler Radke

Thank you.

Operator

David with Verity. Our comes last from Larsen question

open. Your is line

David Larsen

in best And hear Thanks. you your one correctly? and had Hi. Tim, items. line that that what I drove bookings ever think you in item, remarks quarter line mentioned that that your of what prepared I the Did performance? was

Tim Cabral

Dave. Yes. Sure,

pharma. content Development all on manage application management-based documentation It Cloud the area. documents the quality was So and environment QualityDocs, focuses the your and within quality is it needed is that to the which area in

I a an you’re So that this area. very combination is important One, have part of think of of And the leaning in enterprise it’s I companies and quality clear things. in, become we some seeing the think a probably couple for area leader a for and for market, SMB it’s priority Development in area opportunity us longer as them. in seen the secondly, a this the And the we quite around of we’ve becoming have Cloud this. front the tail products uptake nice like

as we’re So couple combination this we’re and underlining of a things fact in of moving the the area really leader forward. that

David Larsen

Okay. follow-up. one And then quick just

For work? and that already of Can it it? great lot what actually of for Like MyVeeva they’re value talk Internet, meds record on the how they’re about patient like like sounds sort side for record, sort responding certain on to clinical through trial. can the patients that? there. about does Docs, side what MyVeeva They already sort patient in there’s description novel of the you a to and does, certain How can meds. I sort think, it’s dial of of the how of And responding a new

Peter Gassner

what’s the signatures over meaning, can some data, About electronic by medical that paper, patients, faxes. But, and they for over do giving consent well to example, XX% right the done things et cetera. MyVeeva of for is consent, XX% of called electronically. procedures their through patient just

So fragmented quite and few few a these it’s applications there’s a really quite for different a different things. of

easier – amazon.com it a for world. it’s it on trial buy really much what patient. as to a patient. clinical go is a not bringing what great It’s it’s to together all something that’s than through that’s So And the about

David Larsen

Okay. And last one. just one

are Thanks. most where most with you see them? in And how Like, seeing the in frequently do IQVIA, them do market the you them compete market? For where you frequently?

Peter Gassner

commercial Yes. often applications and the on, what on also in space. given to then side We a primarily don’t see – focus with, IQVIA data see focused R&D they had been some primarily they’re on them so – within as of in know, you going market announced side. We commercial. kind the the software commercial they’ve The particular

to see there in them so but much tend most, we not R&D. So

David Larsen

Great. Thanks much. so

Operator

does this Peter turn closing Q&A period. over I’ll for to back the conclude now it remarks. any And

Peter Gassner

that, to that’s now steady we When contributed infant. say he Thank And operator, throughout to again a our bookkeeper of I’d our Cabral. throughout this later, Tim And to started strong way like are, company society an like and and you, a the thank together, our been Veeva was general. customers, Tim in venture has partnership and Veeva has an to employees, a years major part-time time amazing investors you here Tim XX team. in take built journey, rock and was

So, Tim, today. XX. at us decade. with you of my you, get Goodbye. Investor forward I And joining vote great CFO thanks you everyone evening. the to for to Thank for again and October a Day talking on Have online look

Operator

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

Veeva Systems (VEEV) 27 Aug 202021 Q2 Earnings call transcript