VEEV - Earnings call transcript Q3 2021

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to the Veeva Systems Fiscal 2021 Third 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 your speaker today, Ato Garrett, Senior Director, Investor Relations. Thank you, and please go ahead.

Ato Garrett

to quarter XXXX ended welcome call quarter and the for October afternoon, Veeva's third fiscal earnings Good XX, XXXX. today's Shawah, Brent on Executive Officer. me call Gassner, Peter With our Officer; Paul our EVP, Bowman, and Strategy; Chief Financial are Chief

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

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

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

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

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

Peter Gassner

you, Ato. Thank

in produced sympathies the Before and we gratitude candidates, get in to of our started, our and many The all industry customers. so has by help a matter including pandemic, like I'd to affected treatments, all rapid months. our extend to ways, to approved diagnostics, working everyone vaccine those effective

and help. to proud working these proud has of stepped how team amazing I'm Veeva be the up are with to We companies,

ahead had another year-over-year. QX, results XX% and to also Now, of we guidance. turning consistent revenue and Subscription year-over-year, Total $XXX operating XX%. quarter margin of revenue non-GAAP was was XX% execution up million, grew

open during long-term. been models help pleased up with how and immediate we're digital for digital them customer with also results We've a find relationships expanding to transformation. in major and right the to clinical, are We needs able the we're and customers to commercial channels digital helping our

emerging the digital-first commercial the announced full innovative They strategic an we CRM, define Cloud, commercial and QX Consulting. new Data Business strongly trust the partnership help utilize wins Veeva in in That yet. and expansions. came an our on MyVeeva, XX and example, ability Link, including side, quarterly Veeva new CRM confidence increase added our commercial For them execute cloud, recently with We to deliver to customers, of our biggest through and level model. biopharma will

We in international CRM existing with expansions multiple had customers. and grow continue to market share

Link. Veeva areas, including newer Doctors, and progressed our also well We Cloud, for in Data MyVeeva

innovation to our us the We're We in quarter. is selected runway in of growth Vault years. progress generate Development coming also With commercial, We to our three XX regulatory. and new the with products given four now remarkable operations, built net sites, for customer as major clinical well operations I the to clinical help pace sponsors, advance a Clinical trust paperless Network to CTMS This a of power and we will potential that clinical Site select over the customers, customers including at to on of in and seen Veeva exciting unified think for This the pharma first through to first productivity our technology. trials. suite standardize with a an launched customers. that and Veeva clinical three expect of XX and XX adopters, Vault trials. can industry they transformation ago. clinical implement patients, enable time move about long chosen sponsors, time change. conducts area we've in will This in customers of Customers pharmas area the our products and patient-centric is as including early Vault, change QualityDocs increasingly Clinical Site within up than the more was eTMF, Veeva progress have Network, which adoption to and Vault Vault just the over expand commercial. connects of a had based Clinical having these uptake new six is set where product excited operations. CTMS. have a customers more of It's industry particularly XX we're real of the operations, We're Vault to we've fundamentally excited leverage We quality, announced on our seeing over Development clinical meaningful connect top-XX have years who and the next they is years Veeva Quality, to QX am a transformation also Safety And recently In QualityDocs, usage once, continues sites for announced now rapid bringing to Cloud we increasingly each and are In Vault products top our and multiple digital. has customers. We significant Connect, XX two Network adoption. Connect. application, standout how in had Cloud. purchasing top-five added closed gains top we

another started our drove This changes a looking agile companies also can us the We Outside global cosmetics, life major in quarter. drive to continues and with CPG to win customer. in that as AI the consumer are for dynamic quickly first Safety pandemic goods project adapt. solutions sciences, in them help large of QX

from with brought liters cosmetics, and these Overall, We chemical in to growing nearly and across momentum and consumer practices are XXX pleased summit quality best goods, an industries. for we reach our insights. together share and online also regulatory

Now, I'll additional as look share some thoughts next to we year. ahead

neighborhood Events, At of the new reductions efficient Cloud and market ways see more to the business, time, Digital to the Engage, over Commercial adopting add-on of same in of will customers such be the the this side Align. will increase expect Solutions. we share our as field further CRM products by and believe drive force We find year. coming On XX% likely adoption in CRM

greater early MyVeeva. year be expect adoption an Cloud adopter and Data also for for important Link, We it and Veeva will

sciences across CDMS interest a We Clinical early CPG, Network, still and very strong in future for and corporation. adopter of markets broad on early regulatory. proposed in to years. cosmetics. but expect serve also our excited We're will like in and its benefit progress and update growth in the coming continue another well Safety, the expect about Vault It's large of us momentum And the we these of conversion consistent I'd Cloud, year board to customer strong life quality, finally, of growth, revenue public and clinical, to outside terms particularly we Development have in with you which chemicals,

has with customers completed largely investors, positive. We and been feedback have process our and the communication

completed the also revised comment with filing a the We proxy SEC, and week. are this process

has innovation, change. industry during and the on team of We really to that exceptional for help great I'd XX. hold I to January throughout special great execution In position on and the flexibility, of proud am us how shareholder a of teamwork, products to conversion It's proposed will PBC time this vote the the put combination Veeva trust, that the closing, year. a like people, say in meeting

Now, I'll turn over it to Brent a financial for update.

Brent Bowman

beginning ended closed in teams of and that in CDMS outperformance and cycle. This execution. and teams, strong roughly was into on similar this services were business We quarter very bookings like expected than XXX QX savings previous QX. moved services our expected, from quarter. employees, Bookings have pandemic virtual in demand Cloud, those led year. in services Peter. a We benefit product of total was above related subscription reference anticipate from margins QX a and travel was billing CTMS Billings to our and billings in of was Development services Much MyVeeva. Thanks, quarter. better million a and the teams acceleration especially and benefited margin in XXX notable operating Cloud net cost applications X,XXX comparable level to points from that applications quarter This calculated in that strong. customer working to than the operating selling a performance basis Hiring the of next from better events increase also are for of early led and benefited both QX. our also increase guidance within with duration revenue. for performance safety, Vault especially product headcount to QX the a with the $XX also newer reduced both Data in the to like strong QMS in QX

to of sequential guidance quarter, to this always change. roughly days of resulting implies in fewer the seasonal services the million. the $XXX our revenue million holidays The million biggest $XXX million to to revenue about a is subscription There from billable Note $XX $XX business be million for are has million that of a for degree quarter, expected normal and and this revenue total factor revenue reasons of of third variability. the couple million our with to is Turning around of high fourth services kickoff. services field $XX size a drop $XX while pattern from our $XXX

quarter is expenses typically product. also seedling incremental quarter, business operating supplier our non-GAAP Non-GAAP margin with similar for QX events fewer about lower invest we this expected Cloud $XXX in to subscription of data $XXX line. a we year, events expenses in Data These the margin is will million Note appear income expect revenue seasonal fourth digital related to costs our Our a the million, XX%. around additional holiday. be services while of as a that contracts to operating pattern has

Please manage and large million our factors not quarterly believe demand calculated to near-term customer also to we term expect to a of to annual seeds basis. this $XXX.X to million. billing Therefore continue underlying year-over-year EPS plant we as we of make billings quarterly will business, variable scale of the of meet highly quarterly $X.XX to is benefit from grow indicator good We share switch momentum hire count of internally. in billings be comparisons to non-GAAP roughly diluted anticipate is million do on there on that that it of one not numerous term. $XXX do We projected metric QX That for and aggressively includes a remember, QX. we this a $XX related $X.XX longer to approximately growth. about based

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

of million, previous at prospects million. Note contribute EPS that diluted now metrics expect X,XXX All the million to within billings to about about come $XXX fully We share revenue, in million and has the $XXX of spend $X.XX our within and $XXX $X.XXX based billion, $X.XXX approximately cloud benefited billion, companies. non-GAAP for to QX $XX full-year estimate about of of a the $X.XXX is about commercial the million imply million. advertising subscription income $X $XX life $XXX following subscription from for non-GAAP This $XXX Vaults revenue. to of revenue the expect finish Subscription rebound Total we full-year. now $X.XX at operating to that of guidance up calculate project from sciences on count year million gradual and million. of to revenue of numbers these billion within We business million

$XX line, million revenue combine contribution positioned million to total for now represent world and the expect Crossix book $XXX Within full-year. to from we to the

primarily also previously, Finally, our in based the operations, million, raising we cash on excess the flow million $XXX for guidance are benefit tax up from to outperformance excluding full-year QX. billings $XXX from

that outlook initial and in the an formal give for next plan expect of we'll me $X.XXX we fiscal let process our a call. the we provide for billion XXXX. Currently, $X.XXX still is $X.XXX subscription to of of QX initial for billion that total close, are earnings to I roughly Before outlook guidance on Please year Within $X.XXX guide, billion. finalizing billion. revenue note the revenue

things. for next of a points will about early healthy, Based is earnings three This confidence which of We for on full-year. would future, next which and the from call, early provide invest remains specific including this in more the spinning roughly the year. fiscal and non-GAAP the represent 'XX, gives guidance expect compression Vault. margins XX% we Commercial driven on our Cloud for XXX industry plans, by life to us of science operating Overall, continues guide primarily breakdowns basis

investing supplier continue Cloud in Data to plan additional we relationships. our product data through First,

that point next at to and we're assuming will expenses some Second, return event-related year. travel start

plan aggressively by very we and ability outstanding and next extremely operator And with product hiring continue Thanks me for With team's laid the to in questions. revenue I'll the of to excited we've quarter, me $X in billion the customer year. success pleased consistent our for that it foundation the to saying target let confidence turn for achieve that, I'm Lastly, today. and total in I'm over XXXX. us for results innovation. The in now, performance calendar our joining for gives close

Operator

William from Bhavan [Operator with Blair. Our first Instructions] question comes Suri

Your open. line is

Bhavan Suri

clinical there. question, I hopefully Maybe vaccine that's for broadly and in of want the to to platform. shifted customers know of it of to start from potential might love we'll of candidates guys. job has Hey, my handful really guess I'd market and the months. how you. have idea think are so of them seen nice you sort the with Peter, adopt Veeva taking the now appetite sort about We've shifted all if we platform, as a technology Thanks come or existing next happened, seeing to disseminated the several transforming that have the

that some tunnel, there seeing who feels Because a but new you're that of accelerating early. like said should and at a You I'd logo even you of understand the coming to out any COVID has sort or digitization, make integrated do within been initiatives. customer we platform base to sort mentioned sense maybe been start of the it existing a this shift Are of sense. not of one chosen of large you light is beneficiary there the but cloud, sort and that or too sort like now a the COVID, had of would just sense not that, there's beneficiary has of of end of

hearing from love new any or color would customers that? you're see So to seeing around if existing anything, and

Peter Gassner

progressing as the about expected. think overall Got sciences have largely would industry it. Bhavan, vaccine candidates, the is that I life

broadly with the life been and that in science is gone to you be some people or the industry no would markets now mostly; shift The no to thinking on time sort if in back I May-ish so the are I the the important overall clinical think side. that there. I very line have of next were year, vaccinated and have zone time realization commercial there's that expected, that's they're think so major would is digital surprises just major they're the side think happening to for what going

beneficiary, the probably tunnel. the that's at end light So COVID so much major the not the of seeing

the I they than in but as maybe invest industry April. I last overall digital and with now be they or sciences more digital right March -- way think that comfortable would thinking opposed was will the think more to life anticipated, feels

Bhavan Suri

it. Got

Peter Gassner

us. And that'll help

you it's a As speaking us, have a it's to that'll broadly -- it's more shift but quarter, and short-term coming. digitization not help thing, not in think particular circular I

Bhavan Suri

love for what and about know coming the hearing think information the excitement, Yes, follow-up available but understand color interest that level talked offer to of there to this isn't Patients, you your flow you I and would from here, when just [indiscernible] love with I'd be helpful? really Patients about MyVeeva of customers out, you're to as them make any that, of for you. Thank then MyVeeva better, to setup you MyVeeva on of connectivity talk the sort really today, levels, that Doctors,

Peter Gassner

customers. Yes, -- MyVeeva it's our customers about Doctors, for more helping really helping MyVeeva, with MyVeeva both their Patients for efficiently is our connect

management but heavy is well. there, a enthusiasm change there So there's lot of as

So something that'll some through. that's to take time work

side. side, commercial it's on So business particularly of the process a on lots not change, clinical it's and technology, the --

there uptake shift. So I slow and steady that's major because think a

to early ramp. too So any of a type it give

Bhavan Suri

job, Nice my enough. questions. guys. Thanks for Fair taking

Peter Gassner

Thanks.

Operator

is question Sachs. Christopher Merwin from next Our Goldman with

open. is line Your

Christopher Merwin

Hi, customers, for increase detail can my more new Thanks. thanks any ones taking step about I growth had record that so about commercial a or in much count? CRM that ask there in kind XX other share you think the you nice just you of curious, commercial up I to small question. wanted Was customer of -- customers.

Paul Shawah

Yes, Christopher, Paul. is thanks. This

a SMB launch. really that companies legacy in those Peter system, we're referenced are and a seeing are that pre-commercial to are they're of The core great CRM market, XX net companies, Others many yes, is these and looking really that we're in U.S. XX choosing our -- them that so new was CRM CRM are are pleased. this so on Veeva. So strength wins, space,

And is trust really. strategic the other years delivered partner. a there a as more the months, over become think get they thing to couple One industry over them in is several the Veeva are and and things more there's Veeva we've trust is looking partner on just as I that that several think and to the efficient, this. because last I the driving digital

specifically quicker kind as are to to them CRM. wins. get new net to digital CRM in -- so So great We've there, get of relying they on and so a need had momentum Veeva and partner those

Christopher Merwin

Got to than and quick it, that, add-on out there? those and or those maybe call just you'd follow-up are before winning wins, larger adoption with seen a they better better I mean as you've have and anything

Paul Shawah

in do, fact. We

today today and may looking CRM and that upfront, so for say, of than, one buying a ago years or they're they're ago is just they're at two what companies many walked to is Veeva and partner, Typically two What one common time. even years broader three typically more CRM away -- is is or and Approved So strategic system, maybe let's looking more add-ons. go different in two Email is and Engage, four for much three come or they they're like happening have digital more or which a the the products digital then -- more CRM and add-ons certainly add-ons same faster. all with looking

in but related uptick seeing the also as we So well. are CRM, add-ons

Christopher Merwin

Okay, great. Thank you.

Operator

Our Guggenheim Ken next with Securities. from Wong question is

Your line is open.

Ken Wong

Thanks is you perhaps now. in Cloud area, think your or help for here? from you my the taking or anything Peter landscape question a hurt Great. Commercial bit can talk the question, Paul, position guys CRM customers during just that on competitive competitive the about building This perhaps guys. Chris's pandemic you're seeing might

Paul Shawah

to foremost, increasing OCE share. talked are has IQVIA's for marketplace thing dynamics now. product that that standpoint, of their landscape say and been one market trying to at the product about roughly the over the had a by dynamic market well, is we net the start. they're a or really in as the digital win CRM that new the looking new what hasn't the deals. expectations they it's a from by The on is Salesforce.com, that the going the before, two meaning product, couple I across a are overall for met out a record same, wins years can That's that changed quarter, we've in it's some get and would so trust. of the looking it. seeing built happened that the -- It from number Yes, they the most we and competitive first We're partner us that's net execute hasn't new that new numbers, we're in could services of evidenced companies and is, replacements to last continue

we've that So, had more expecting we those of and hard, and -- have those expect take those I'm two more replacements, I will are time. those over see will those time, you'll -- they -- but

Ken Wong

you Data Paul, gross the build lot, guys and a Brent, product. you on margin some touched for maybe Thanks to as Great. one you, Cloud start headwinds up

Just margins, to a that one-time what numbers might be you help if color we will helpful? hit going think is more about might would our be that over and to is as that time? continue that be able wondering gross hit, something of quantify to forward, Any there build

Brent Bowman

be our so we're we at breakout investments, that been gross year, as time of mentioned guide, the for years, going but would as be, is Cloud. factored margin that much couple well over Yes, look to specifically XXXX over not so and our That our Data something a next you building ops margins going there's as number factored we'll out, that's guide. into to in projections how a

that guess So, from I'd that, you I perspective. leave with

Ken Wong

Great, thanks lot. a

Operator

Our James. Bryan with next question from Raymond Peterson is

Your line is open.

Bryan Peterson

for taking Thanks the everyone. Hi, question.

of sciences. life start wanted actually So with efforts I outside the to

have quarter. You and of that the gradual build referenced inbound but has take I expected, this from the customers than know you quicker on does go-to-market that adopters, kind but who win early timeline sure not accelerate there's been potentially I'm this, interest side? large on another CPG focus wants go-to-market a to large

Peter Gassner

it's hard would in, hard out. I to get relatively regulatory a I not and say quicker than area it's application is so to -- sticky very in claims and that we're get manufacturing expected. there, Bryan. management, This quality Hi, a

not they on. will is jump that something this So

not other us market steady, really in temporary cosmetics the Pandemic than there, it's thing affected in hard-hit here it. sector. it's a a So expected because that's how has we been

Bryan Peterson

XX%. that some are make expecting sure down you more, broad-based maybe down fiscal the reps and is I'm to heard year follow-up, think that made across Peter, the a curious, right, that just comment I I and field they're were base about or maybe is be line. and 'XX, on I Okay, in to sales customer instances in the that want and some I

guess I and longer-term targets? that's fiscal to for kind in I'm factored then year about that Just, how your trying 'XX, of think to

Peter Gassner

have Yes, that Paul actually take one. I'll Bryan,

Paul Shawah

some give on commentary I'll that. Yes,

but XX% overall the the sales number, customers. force First, what on also is so based efficient it's we about really, discussions we on we with digital as of more about and and at market, very the well, that become future to way digital. with Veeva that Veeva. estimates always good believe for customers, We're the the move help as conversations multiple in thinking the industry strategic based out and think what is look really looks really like, we more This

shift. we're adopt products including to see Commercial that And that and we're shift we're and Engage, Cloud, more products more they in innovation. of as Approved So embracing in you'll trying like that, also the companies more -- Email drive efficient, as Veeva our become and

accelerate we're Doctors, -- trying new products, industry faster to helping get efficiently. it more we and with as So digital for to the MyVeeva like

faster. an is accelerated little be to -- would is industry is I point just that the still is super compared have, we've what bit confident some We're bigger think a digital where one it maybe XXXX, we because seeing reduction moving -- happening always targets level thought for we at in we've pace because of reduction. guess, to about the we're we're the So contemplated to the

Bryan Peterson

Paul. Thanks,

Peter Gassner

on [Multiple that… add -- Speakers]

Bryan Peterson

Peter. Well, sorry,

Peter Gassner

then depend might there, medicines more I much, always specialty to add broad-based but have why there another. more others, it might not on there have general that little the more trend so no one therapeutic company-specific so much, factors, a reduction, doesn't than just there's be customers Bryan, macro little and the about on than although it customer less, more specific a Sorry, say one would will affect really and some areas areas would

Bryan Peterson

you. Thank

Operator

Our from is with Stanley. question Morgan Stan next Zlotsky

Your line open. is

Stan Zlotsky

Veeva's quarter. with maybe existing customers Cloud talking When in headwind a to you next so they're on about guys. to prepared decline are they to sell, pharma sales your thinking of would you're spend positioning my less in receipts? afternoon Good product enable congratulations how strong for very and in of Hey, remarks them one strategic questions, order your XX% Peter, versus Veeva, for Commercial and to about you, trend. thank the year. much frankly global for potential headcount by there's the and and taking mentioned How your thinking just potential you

Peter Gassner

Stan, as the Yes, is digital more reduce receipts, technology-enabled. they selling is more what's and happening becoming motion

for, So, technology, on this we a come, this come would it been of our going and a and as bit they'll we next for data has us, good that's gradually, it. people, that's thought so and year overall in Commercial knew, a we happy knew COVID favor on that to a on about more power Commercial good the Veeva because growth trend the more on be spending is trend kind mentioned bit for less technology something into to -- XXXX. the little a certainly the is and trend we'll that that's so Cloud Paul boost grow a Because we're of Cloud little actually, it's little

Stan Zlotsky

and to bit, duration. billings? one that longer Could on anything else time a That guess sense, would anything this you QX right a of it. little for saw it, is or then, mentioned dig QX to and Got duration got billings in I in a makes that Brent, billings, on little you that you due note you slow benefit saw bit into to FX

Brent Bowman

first. second answer question I'll Yes, your

in function So saw factor, see the on and deal coterminous a to spoke very note of nothing that less and customer there, the minimal QX, tailwind release I of. it's and a tailwind sometimes duration regarding really FX, FX, to so a and created coterminous, that duration, the you we specific often the then few fields, on

Stan Zlotsky

you thank so much. right, All

Operator

is with from question D.A. Next Rishi Davidson. Jaluria

open. is line Your

Rishi Jaluria

this for thanks some my on guys gave year. continued see to Engage about at recently analyst; growth strong really us Engage talking questions impressive taking to execution. they virtual numbers and wanted Hey nice meetings the I maybe CRM with start

gave December how about meetings, you of said, business Engage started kind thinking Engage commentary expect year? XX% I then, should should as the number, And force with XXst just year field think next you you about follow-up. got meetings we putting next I the growth that be the how around sales a XXX% context the we think that, period, and when on especially that Engage in free with that and as reduction that well in traction with

Peter Gassner

one let me right, take All that first.

to isn't use to right. really digital. becoming This involved So, in of continuing -- a adopt, trend companies lot it a are well, the how management continuing to change more in this go change learn continues Engage is they're to

our customers providing, only we're using domain software are getting it helping but efficiently. and doing the the the and guidance technology, and the around really expertise not business So, them, also better, Engage we're

and of the where Those are are period that We're the year. are value. around our as happening the We well that free ends end seeing customers at into into discussions the renewals.

product they We expect in the continue as the with next partner. the free trust majority -- year, to working it's in This of working. is us companies marketplace is that strategic the because and are started Engage going a

continue will So, most with companies that.

a as wouldn't most of year and do get I also they'll expansion this was even amount but continue, think see significant but into next next question follow reach -- well. most year, that about full won't year. users, the opportunity they deployment companies Your will a expect you'll also year, I their companies they

Rishi Jaluria

future. then, helpful, historically seeing growth to sustaining I a and the on on of XX% and surprised target because plus for subscription there's foreseeable little That's subscription the for kind closer the preliminary next Okay, just rate of got I revenue know growth and outlook guess been XX% that's the it. discussion year.

thing Just a baked to especially mean, into the XX% on you're fund for subscription right. on talking maybe the to want target this assumptions what are I outlook about that fact get sense do any good organic ex this growth Crossix that maybe subscription XX% I'm growth and us a and about year, pieces next be there. physicians talking moving year world, might that understand help

Peter Gassner

to. Sure. I'm happy

strong by us ability very I'm first for So, pleased success. drive and to customer their the demand

splits call. any come to targets, under that us going year next for guide QX in what's up hood would into us our regarding this on XXXX well to So, for our typical that's lines get that, not the very get

So color positive in the and the I'm the in continued good as space. growth seeing give going we're very any to bulk about commercial as the not around but space, that, we're growth feel you well

Rishi Jaluria

you, All guys. right, Thank great.

Operator

next Our Sandy is with Truist from Draper Securities. question

Your open. line is

Sandy Draper

have Thanks A lot questions my much. of so answered. and been asked

to know pay? just data looking Thanks. the others try at cost connectivity think maybe in to or you're connectivity, finding that you I about, that they that sources So system to and think you're acquisition to about customers that as maybe building that others go other what how that to just one to way can? a trying the when data understand a on get but sources carve trying approach and you're competitor you're new costs, connections? exclusive cost this are going Are the paying set to not versus I'm and sources versus out finding data might how and specifically data or data there, data rights going a sense to that Data people what to

Peter Gassner

bit keep little one. that strategy. Data I'll take We'll a to the best acquisition, close that Data production Yes,

So and hope the platform, it competitors, to the data the Crossix that's and unique, of a is patient cost bit the that found I ingests, reasons way more to matches it Data because in Data some and we're one we have that's think quite data Cloud, come way of why sources. you to we our less very hope give really broad a we brush, will jewel but data we the unique Crossix doing, that's proprietary things the in than

state is any about because products, it different view, that. you between Data patient Cloud. server copies a So cost, interaction to actually dependent software. triangulations one lower multiple from in payer, back, client we so technology, data the in going the people it, multiple there's what Then we're and piece because we on particular we're at the with a about on it, cloud data together, making of when of have difference that It's get because of healthcare views step not think doctor each our on very real to when how information the multiple we're and system, transaction the so as if moving different able says happy of that

same data, patient the of on from real view patient events flow the the longitudinal of prescribers So healthcare longitudinal we're the in the through focusing picture they view. point as

So I going to would way the entrench either thing. to going of to valid too be us say, compare it's not fundamentally to we're things, because doing do a different

Sandy Draper

so, helpful, have terms to an intense but build going like of trends, me That's behavioral get get process, is years my to and things in change once dataset, years that maybe change the that to and they've Peter, you're of you people for really and there sounds because education it years. so will been definition to the doing may be it. Got way lead by I things to and have follow-up, and guess doing

why reasonable guess you're about that the have educating really then the it? way I market is and build data better, point you So step is to to first a the think going set about think a it's something to

Peter Gassner

you're the Absolutely, want that you'll you classic way maturity of those be doing a also on they product different. true that innovation it'll cycle early things to fundamentally when to lifecycle, doing find open adopter but to follow find the people have early because

really, you'll happen really biotechs, be Now, larger maybe larger conservative, looking edge, that for rightly small more with find have that'll they may we're oftentimes, steer. to so companies a boat and that

especially technology, and our win, maybe commercial the which dots they'll Insights, Cloud I for to trust, analytics, and is complete also Cloud didn't of true, Data biotechs, together; the package looking the get a between but they customers to all can they're Data want be CRM well, that Data customer I small from seeing Veeva. Paul now can So product vision gradual. as mentioned, connect

think Cloud business our will today. I effect have over it's on CRM positive even showing a Data already So the and business time,

Sandy Draper

I Great, that's it. commentary, appreciate really helpful Peter.

Peter Gassner

Thank you.

Operator

is with question Kalia Barclays. next from Our Saket

is line open. Your

Saket Kalia

Peter, my see on great to great. CTMS first thanks for Okay, for in Vault uptake taking clinical. you, the Maybe here questions I is think guys. Hey,

something was like adoption make it could of that and availability, think sense? CDMS compare you each ramp then contribution? I different and how XX would of perhaps bookings CTMS and ramp customers curious, years in terms this to be in perhaps Does I'm just in how three

Peter Gassner

Yes.

was myself get off mute. Sorry, to trying I

started different in roughly Let's CTMS the the is see. of here. same thing Veeva, applications at a more built. terms were maybe They One themselves little time applications. are a CTMS quite CTMS They year, a

clinical CTMS was the So base the we CDMS, had built before operations that of from CTMS. suite on

a build. So a or and application a, head is CDMS would it a harder to deeper guess start, I gave overall that

than So connects clinical CDMS mature faster difficulty] to CTMS the [technical site. gotten directly research

a So They there'll their studies. hesitant be have there. little more to build

cautious. little So start a few we'll trials with more be will studies that a

CDMS also, it's [technical years. more six we for the Veeva's reputation cautious data seven or So we've what market. clinical management that's build difficulty] in them had a about area

well So it was established.

but why So that's CTMS faster goes no mistake. make than CDMS,

human best is a our it. of task, about it to setting that Vault you well-formed series the CDMS that, doing AI of indicators [technical a so a can that think could One how task to handle doesn't framework relates that handle ways of as we're one future of Vault, the how difficulty] up have is in that

a data where case. of You that that mentioned intake AI, the plays safety is

what have or do those product through and a come and that's some high So can What case a is words thing well, be pretty before? it's other it. the I code is words complaint going apply form, about? this that's some here? in safety.ai actually on -- to actual What how understand either duplicate we that read seen where How an email I about? volume So on

see volume something be clinical to handle areas classifying another needs done, you'll that trial. a as That's relates documents relatively in other another Vault come that inbox can year to where it see involved, into that's an area a You'll next it. is area high and

in of product bad complaint. over That's the You'll a product. et product safety well than which complaints, This in cetera. enjoy off terms quality as a et was is I didn't event that cetera. different packaging time see color product is That's that suite this had a a

things So that that you'll it's over like automation time. see where

Saket Kalia

new the of XXXX is insight this happening of that users kind financial Okay. wanted Engage. the for new contribution potential next outlook users clear therefore is, just year, make fiscal That's sequencing? a and talk I year to about sure the have when of great, that right Paul, I'm the standpoint and that will slow you when those totally visibility is kind already just on of most from growth you fiscal the on on

Paul Shawah

Yes.

of up perhaps customers Engage we we'll continue be year, next on year beyond that will end you renew, the turned So that engaged the when a I Engage, the larger that than market, overall at being will turned the larger free our was because referencing renewable. look and as bump even to with continue have we well, contribution. the of and the on see many size this and bump When companies will that majority and them expect the year that of to see for have

will expand reason, a this more that well, haven't Engage net on their year, start turned whatever of same see companies we'll customers, on those then, and companies for will new over it over significant but our to as companies will happen So and usage increase of also time. time of the yet Engage, turn

Peter Gassner

a just be to year, billings be in that'll as if And fiscal manifest see you clear. contribution year bump then that able add, to and in I maybe will revenue might itself Joe, 'XX, this fiscal

Saket Kalia

you. Okay, great. Thank

Operator

question MacDonald Next Needham. from is with Ryan

Your line is open.

Ryan MacDonald

Day, Thanks modules recently. X.XX I'm to At question. by MacDonald Analyst trends Berg. in showing believe 'XX X.X fiscal with on I taking Ryan penetration Scott year to per slide my customer increasing for the Brent, from

should view the quarter looks these decrease expanding growth your achieve module XX% cross-sell to to growth? subscription near-term annually. the think you increase of or a of growth cadence than about moving the expectations, penetration to we This drive -- be are company How the but just forward, at expanding As by a less over is subscription to plus penetration rates? need not

Brent Bowman

we've upsell established. expect that to able to business hit you be a balance perspective, you'll targets us see well, change of cadence that -- additional think of to for to new should install think base, the the expect within consistent our with the motion don't as so from I you I should

Ryan MacDonald

recovering Excellent, bit, like at physician's excess come those the a if and a think for sort in the it's initial remained consistent. this follow-up, year look have it to great see we starting and as look cross seems I expectations to for world, of expectations above but at relatively

As vaccine, how the to physician's a you're business and visibility going world looking into that 'XX? you think for Thanks. recovery to we starting are are at now assumptions into get that some year starting about calendar perhaps

Peter Gassner

the towards think into that to the in That'll sometime year with begin. comfortable, traditional reasonable the would that that a event, I expectation think the be towards with I where broadly looking of me, take of we're for end physician next recover Excuse so the I'll face-to-face feel sort vaccine will. speaking world gentlemen. people

Now and really having said that, in we're digital. we around lead are doing starting momentum to innovation to get a starting bit

other both potential a year, not there and there's going we look around following and digital at maybe next with long-term face-to-face adding that. gaining that year, events share you're I more So to and value but the in believe market as the be services

physician a on So, now. I'm It'll fact pretty little right nine bullish world another business. the months, of in lagging have

Ryan MacDonald

again. thanks Excellent,

Operator

Lynch. Sills from next Bank question America Brad of is with Our Merrill

open. is line Your

Brad Sills

are Hey, ask got we the types segment number where we real next category? we are cycle the top where are Thanks that us question. those you wanted my it's down, that for XX, a been progress more taking at recently. expect kind XX tier Can I for of in to already you've looking more you've a progress. the in of we there Should or segment, top market and some great. guys. seen are of clinical see can replacement of particular about remind you Oh, -- wins you wins

we of a you. cycle. on approach now so been see got selling references Thank could any color that seems we replacement, you've point where provide are of and so it reference this steady like tipping You've perhaps can in very the there, kind you of kind on

Peter Gassner

in those first, how to was eTMF, and but have In more It's our Then Yes. operations legacy have happen CTMS, In but get. applications, to which we good mostly replace these clinical also, share still module, of market operations, I all in Greenfield are basically the just and data top Top very the that'll there's clinical, are have and XX of a clinical management, their has pretty new, very, data to very is for it's new very, there a important next management. that then have out a road. big the have new of don't we clinical years, there's In of is data Studies has are many clinical startup, management. study module, -- leg we but thing an that the the that areas: early, XX to there's new clinical exact applications. clinical clinical whole long amount network, whole really the players handful system the clinical relatively over the the two that's eTMF, so XX, operations, we early number go out literally Payments, decent those other and X and our the applies a we which customers there and clinical that

go, have early you you roughly eTMF So we're to really very early days in it's one and and materially way truly a has clinical, that application days. penetrated only

Brad Sills

maybe on because so resources, steady need go growth that in any category build acceleration Thanks, consistent that you in it of chemicals, more for Peter, is of then, mentioned in pretty cosmetics, outside balanced see don't driving just Life product, but that for function across like what's awareness order sounds guess it. to of just within in CPG, I to there's much kind expectation ramp and more Sciences, that business there's just kind Got a and your kind you it Sciences, business? to growth expect really it of to there, needs kind opportunity Life to color is we that of balanced, market is

Peter Gassner

First of we gave that at all, Day. we're the growth Analyst numbers, happy with

when XXXX. in you it, nicely, or that at So pretty $XXX million it's by neighborhood look so closed

technologies, write industry. a industry very of and off, have to they a adoption those what Companies quickly, a lifecycle. costs, that's investments it natural lot to Now, prone steady efficient and not see and and got you've to jump previous it's capital in capital cautious one there growing very those be through, that's it's happens slow is there, tends has it need

So that's something or there, on the many in what's street we more going so middle product cycle, have not system. have That and that, feet adopters. on only need the late then early majority, or selling it's you and you now like record to, adopters,

Brad Sills

it. so much, Got Thanks Peter.

Peter Gassner

you. Thank

Operator

Davis is Our next with Stephanie from question Leerink. SVB

open. is line Your

Stephanie Davis

questions, and taking for on the you congrats my Thank quarter.

mind, for as these be could adjacent the are startups, lower number we're on you'll drug either markets question, M&A quick acquire some many new? growing priorities relatively in bounds given product would in IT scale are space. and what with them in that maturity, and you startups your assets a or of of or a seeing and IT phase of that development Just There's the

Peter Gassner

Thanks, Stephanie.

marketing the the would life accomplish In full play terms on, of Crossix we that a can larger provide our market Crossix to we than marketing that bigger always us XX eye on, or do on we to or analytics culture, times it's core then we our data with platform is we go people tremendous a take that boost, find has to that, we best like that looking which with market supplied and a find would like can that sciences where them that's give general, a with the something so The in asset, of will innovation we canvas Veeva, or if it, that there. boost a either technology we fit behind Data there, is I have certain can they we combine M&A, we're can something then feel knowledge, on those with keep for we when like Crossix, that's always a to, area, in will into, analytics example more. acquire and Play, something can find that can we seed in of

specific we're eye looking always So area there's that keeping I about we're a an can at, but not talk and or that now, on it. looking

Stephanie Davis

product, how we towards trend real offerings about are with out that real earlier maybe see up the following a then your laid can of and world the little Data questions bit more And Understood some evidence? is within right. your solution? when some All

Peter Gassner

Yes, that's thing, a of world real in evidence, real right. terms

compensation, that sort your sales side, non-real a R&D thing, and or might targeting also in type planning world of can that evidence, have which of commercial have traditional and used side. world but data then be used You the in for you real be

is that real. So

the commercial Our focus in data. evidence is not the versus real in world

get to got we that right. So

a have very we we integrative then then -- going, longitudinal patient that it Absolutely in Crossix thing asset but there. that and future, Now way, be that's the is data expand a data first wouldn't platform. we'll we'll that's data first, going to real in do relevant and from that get the in

Stephanie Davis

and keep you and a Would invasion for that at more later? now data them sell or yourself off bit likely to it look development little

Peter Gassner

would raw Oh, not sell yes. any We rights. data

for We it. consulting then data that, that it's group selling our where that we'll it something type or that for continue but We build platform, thing network, have and and we but make be may use internal OEM a use like to we'll a products data customers, do long time used not then use that. would to of that caustic our it in

Stephanie Davis

a Thanks understand. I lot.

Peter Gassner

Thank you.

Operator

J.P. last question Our Morgan. Auty Sterling is with from

Your line is open.

Sterling Auty

thanks. Yes, guys. Hi

the super would business potential business you're So, Election, two? your with way next that is the of runoffs one the keeping legislative for Georgia, the impact on high-level anything have the it the think direct from customers there start, is other, to outcome either or a in know, an you or holds your to the impact regulatory assuming as and eye or in Presidential you that action or could on that year question

Peter Gassner

for question. Sterling. Yes. Hi, Thanks your

happens election industry. big legislation happening the is we're really all keeping medicines it innovation industry an industry balanced what reality a industry. by the the all thing policy These of So, time driving what kinds patient be time. doing on in to patients. new is, tends certainly changes that with also everybody the It's for out on Legislation around and the outcomes a focused customers, things global right happens lot I but eye and elections innovating and a changes, is happen mean, our the a the and and as the of policy

way long wash tend changes of say a that's they a some with to So to the that, these be innovation.

political those expect customers, our impact yet and We landscape on any we impact either. some any really the of in over near-term don't haven't changes the seen of

Sterling Auty

with in a but doing of your All question, to follow-up head CTMS, around an in kind seeing kind and right, had better has Is we're of came Oracle, that vendors CTMS, any of changed excellent, in one think in -- competitive strong win terms offering, anything just more changed there and or then I'm rates displacements? you that curious, that the was questions terms anything waiting. one in I active job a metadata fold of of change Siebel, and landscape space you're legacy of couple any kind or other

Peter Gassner

that of; caveat only at client guess server that seeing the has entrance customers the dynamics, no Veeva success in we're large I is replacing Sterling, no new change are really we're to CTMS aware enterprise. the at the scale competitive there.

thinking, would --" many to does point for sense sort the this CTMS? I at solution. customers of When the see people, are "When best to the and market and that's to I think have the a go make alternative So, de-risk proven I think because they it

Sterling Auty

it. you, Got Thank guys.

Peter Gassner

Thanks, Sterling.

Operator

call closing I'll session. turn for Peter Veeva's conclude over does now the to remarks. any this And Q&A back

Peter Gassner

him you we like I thanks look wish a and wish Thank well, for Rick call Thank you and is and all his contributions you all we extend This service to to last with a and at all earnings Rick's for special season, Lund year. role forward years with to holiday happy his you. CFO, Veeva. today. I'd talking also next joining next us a and us of as

Operator

concludes and This now disconnect. you call conference may today's

Veeva Systems (VEEV) 1 Dec 202021 Q3 Earnings call transcript