VEEV - Earnings call transcript Q4 2021

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to the Veeva Systems Fourth Quarter and Full Fiscal Year 2021 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, Mr. Ato Garrett, Senior Director, Investor Relations. ahead. go Please

Ato Garrett

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

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

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

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

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

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

Peter Gassner

Ato. you, Thank

the thank disruptive year. ago, safe the I'd now life our only last first, sequenced industry important was sciences was and customers doctors overall, adapt therapies. transformational and of Life speed. to COVID-XX to and support the year your to incredible the our healthcare about the was genome outstanding mission. like execution to also The a world. amazing COVID-XX really That's diagnostics effective and efforts innovation industry systems vaccines, already stepped team So to ways. Thanks for year and XXXX The scale and and in for just the Sciences up have over their a Veeva we speed around against new enabled for work patients the team to quickly from Veeva. and

non-GAAP grew XXX delivered revenue Veeva XX% and XX% total exceptional also XX%. margin Subscription for million the year. year, performance revenue over operating results, over year our to quarter was year and was Turning up year,

CRM us commercial position up growth billion was products and also XX year XXXX had Engage and up was a expansions future year-over-year as accounts. a for revenue with for extended move our existing CRM of international number In QX, customer was that the enterprise paid the Veeva subscription of subscriptions development cloud commercial core for important long-term. at end $X.XX wins the X.XX will leadership year-over-year. XX% we customers the with In fiscal up It of growth customer period. we over further billion new new full standout XX% Our revenue to and set quarter

adoption with to Engage digital the pleased new patient have very Data early and and high of they with we customers. for drive adopter I'm attach QX, look pleased the five as rates progress expect customers We capabilities efficiency. In field the Cloud. in data with Veeva U.S. are also now to released

cases, with also were not identify able and to customers feedback their datasets. are data and our in [ph] multiple is encouraging. available patients other prescribers [preparing] the we that We In were existing

U.S. In go us long. with data, come with prescribers stagnant over been the potential put in partnering the we're to among by full and vision. the opportunity, well great a Veeva our with of available the partnerships our very our deeper help early roughly U.S. context, adopters. is start commercial time. all approach delivery the sales all all an year, ahead, to Cloud core Veeva the in in if a with for with is and focus to starting execute operationalize first for products data on and innovate too and the build when expect to for commercial U.S. There's business in handful a additional a the consulting potential to to have This of excited from of to we QX, industry in offering major optimize breadth allowing goes the we define Having the support continue our see days, area Veeva by CRM early commercial for second deeply It's by software partnering way. Looking long-term this increasing strategy. in that's go XX% in our end the with for in in is To year, in interest customer We're us Data to us we will and cloud had the this countries but offering biotech biotechs of digital industry. of

Crossix I'd are acquisition. mostly world operating to The science platform. growth growing Crossix integrated more by also in the like as XX made year, the share the and the months physicians we on and further acquisitions data we back invested is well. than area Crossix look since data we team XX% expand two As ago, in the We about

services helping pandemic that and was event made the quick industry in the lead been physicians has world events. hit when a Our pivot business digital

We expect these to line growing roughly new in overall year thrive, with the businesses to in continue Veeva ahead.

with value wins board drug regulatory wins to big better development to regulatory overall, clinical. to industry On the major Quality in power a we in that year, Vault customers across milestone another than safety. vault XXX the quality, are also really year as number in the build can are the One R&D end-to-end. with quarter clinical, set EDC, had was and starting adding out we year the We quality we suites closed go and was the in great lives side, industry there. streamline XXXX, development had The only is CDMS and cloud and appreciate are RIM unify the first these vault truly product record involved we of for and more the of It believe the CDMS, offerings a significant they important a Vault now functions. to

crucial data take significant notice. and studies has starting execute and to a build more trial industry to impact on access speed and The quickly the is and faster. been to customers allows customer's EDC trial than get before While agility

the smaller In the for Partner make seven their of Vault further technology will of the have CRO critical fact, Program, provided customers partners announced use leverage often CDMS Having a Vault is six because top the easier of which it CRO that partner. Vault CROs we validation by joined just strength of CDMS. CDMS mass to they

clinical also that connect vision to over a patients Veeva make time the We key building the industry XX% at but network, have still we days made early less network and clinical in excellent This cost. has site, the sponsors. have is trials for faster progress It's blocks place. with XX% bold to potential for

customers MyVeeva research part link have just sites clinical make site with went faster Site the first up Connect, Connect first network. study which another important application. compliant. for startup patients and to We customers their and and Site our study more of sponsors seven live and is is together network on execution first the clinical clinical signed the few

MyVeeva patients a is few eConsent. adopters. And we're application working with already for in early first The

our big milestone exceptional In a very Friday. MyVeeva use applications R&D. We're for the had directly. great first across execution commercial much and patient sign innovation fact, we form and excited clinical progress, That's last to about Overall, been board network. to really use an so consent Veeva electronic see in it's patients having

downturn in of and RegulatoryOne. a XX related expected. we with with consumer as Looking cosmetics solid another good They nutrition COVID industry. outside million In in and Sciences overall XX of had revenue selected wins outside a chemicals. new expansions disruption Life and significant customer Sciences, year Despite goods a top QX, Life company had the quarter over

Before we February close, share benefit to that corporation. Veeva officially became wanted a I in public

passed Brent year corporations than to right products fuel our in proposal by In our board. personal innovation move I'll are in come to the exceptional decision. now position to stronger talent we to continues of about over XXXX was Veeva all, the you consideration right over my also details in company and and deepening across a financial the We're and with to vote. posted your more of a relationships. turn our benefit vision was with article the for I of shareholders positive attracting performance. and customers, of overwhelming team, of a medium and seeing in customer Thank importance perspective it future This it an Our decades a discuss operate now the ever our beyond. to to the also majority effect to the this on But public broadly. all growth stakeholders. important support ensuring execution Veeva in

Brent Bowman

development products QMS. roughly to extremely year record believe cloud fiscal Thanks, by the tailwind was core quarter. be ‘XX record in This for in dollar add Development strength and in conversions cloud Engage a cloud and We on continued momentum extremely commercial our our Veeva and another execution Peter. opportunity. In well performance the a will revenue. and year CTMS captured were driven suites we of with total quarter had bookings close quarter, the bookings to bookings CRM subscription The commercial outstanding of over strong a cloud CRM XX% fourth our product performed including Engage. across quarter Veeva. great particular

future. be CRM subscription add-ons. of virtual subscription world the growth for second terms the million to in into financial the Engaged million changes of subscription from fiscal Total billings bookings benefiting in our strong services expect year. are Strong will world not and events above integrated year for break out other XXX the demand was fully XX and and growth million acquired X at We revenue half expectation XX from calculate million and posted and and was physicians XX our to which billing revenue physicians’ a includes Engage lead [ph] few bookings quarter results with had customers, a large which above QX. Crossix ‘XX after year. previous billings including them revenue guidance. Total businesses will [earnings] These Crossix similar was million XXX for in million,

net was customers defined for and customers growth and increasing and are net gain we This Our we year illustrate earnings the another XXXX existing previous revenue of of in within We the release, to the XXX to attrition the revenue serve. revenue annualized from with the quarter industries rate and our reflects continues hiring, had is we of providing retention subscription metric ended XXX%. quarter employees strong value quarter. the

our we business. was Fourth in which a outperformance teams. were driven field quarter majority smaller employees, For Operating vast and by our development revenue margin more subscription margin services XX.X%, and dip than expected the in seasonal new net year, added which guidance. exceeded the of than operating XXXX product was professional

for previous event As our XX Approximately from the million, quarter. collections excess provide QX collected Operating XXX line first the was roughly operating guidance. in flow in guidance basis 'XX was margin I'll point year which 'XX. with push a to a XXX benefit QX cost lower year fiscal and fiscal cash includes quarter were quarter, travel savings below the related of expected benefit now excluding tax expenses, for million the which reminder, and in our was to

XXX million. between XXX XXX roughly expect and million, subscription we QX, total revenue the For of revenue million

note time-to-time. a plan These benefit sales We incremental expect quarter changes compensation year XX based a million. 'XX non-GAAP year. diluted and million relevant Note from travel be assumption do changes. approximately fiscal rate non-GAAP and for the to for the for some XX% of past approximately at have the first we and our $X.XX between XXX X this million Please that three we'll in share and law as approximately significant QX are million we expense $X.XX includes reduced XXX quarters. is we EPS similar 'XX to changes count full tax income to non-GAAP our This tax for XXX have in operating that to QX projected events in on from million. made any fiscal including events maintaining year monitor resulted

year-over-year growth there We terms billings of variable quarterly billings for this do account in good of not about underlying this of to reflects internally. would of mentioned in indicator into do QX million our remember QX implies growth Please dynamic, If billing expect This growth a our calculated the billings XX%. the moved of basis. comparisons changes make is XXX which a business to normalized believe that closer billings QX, on related of roughly Therefore, quarterly we million that from approximately earlier. are we to numerous manage XX%. highly X factors we metric we and not QX be momentum year-over-year that it

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

full the for guidance toward Turning year fiscal 'XX.

We billion subscription $X.XXX revenue XXX billion, the million. to consisting approximately subscription our high-end total guidance. to million of $X.XXX cloud XXX roughly of XX of a billion million expect $X.XXX increase commercial prior revenue and revenue Expect of roughly of of Vault

for income XXX of growth million. the We a is for priority Investing about operating year. non-GAAP expect

Our and guidance suppliers our and Cloud additional field data hiring with Data primarily teams. products investments new our reflects development in for product

back year. of expect related the We to half travel expenses event to in and the start increase

terms billings $X.XXX our imply adjust approximately which billion million, we calculated XX%. billing for a 'XX, year totaled expect growth XX in in We customer guidance changes XX% fiscal rate. which reflects roughly If normalized growth billings approximately of of would year-over-year

billings to QX. XX% about expect year of We full be in

XXX non-GAAP EPS share $X.XX of expect diluted year fully for approximately million. the approximately on of full We a based count

quarter expect year we I'm the In Finally, XXX year. million. the benefits strong the very expect exiting happy with coming fourth excess and operations, momentum cash full tax closing, of the our we excluding in about flow from growth

today. We are over And achieve X for to billion I'll revenue. target turn it positioned joining our now the in of to XXXX well for operator questions. Thanks us

Operator

Wong question of first will Your Instructions] [Operator be from Ken Guggenheim.

Ken Wong

guys. one for is quarter This Peter. Fantastic you,

even a you've give maybe So us bit more can And you're little customers arms feedback for on to change pretty Life you your corporation? feedback kind your then on and from importantly, from getting perhaps other What to industry executives, are what of from a you leaders public within hearing this public of to PBC? lead? outside potential been call with transition perhaps to a Sciences other benefit this follow

Peter Gassner

question. excellent the for thanks Ken,

it, because to the our very it to For society is way in we're industry, customers, it's not we're just our charter our about a is just helping. all saying not concrete also that And to say It's committed a we and because employees, it to shareholders. to what Veeva discussion wrote starter.

in depend also helping. So can absolutely and Veeva they It's recruiting. on long-term it's helping

have seeking be We a number out want people, us they of that. part of and to people

will So I an also a different wouldn't of be exposing generate It's that's Veeva in ideas new us that say for think that it's ecosystem there's helping long-term. I happening, ideas. the to us thing unexpected, positive

I've they're from others it. other of certainly out companies, In terms in had interested and reached

so board the matter. a PBC I this think rightfully decision is

a it other them. really may for and over the this So be this may snap it be is something that and PBCs right companies is decision for not years not plays out right

that on fits how I provide about I try to it guidance Veeva. just and and can advice whatever neutral for So stay

Ken Wong

And perspective. hearing million, rate. we if you benefit growth on teens we've out you also Brent, up on that from reach feel a it wanted makes positive. to XXX actually growth, been potentially it's on tell from I've of kind touch some get doing that's could And and better, had looks cloud what like are to it color you the what investors commercial then, mid companies that and that the guys follow a just follow And for called other

a you think how cut expecting highlighting there quarter. be are walk that a extent assumptions of a I seasonality through and us we sales some of bit pharma us reps last with there a feather that be in were there? any might And in [desell] going maybe guys are of the sales is in aware reps lot potential to of into you the should outlook? there [ph] that to Can some reductions

Peter Gassner

about I'll I about your then, don't question first the financials. take on part why the headcount And billings the and answer impact Brent, So let reductions?

So talked last about first from quarter. a headcount perspective, that we

industry So been so, think out we we've next always seen bit the about bit across ordinary. XX% a far, that's of little been know down little to or the about now, we likely shift. over one we two happen and There's downs, it's a unusual seen we reductions we anything going we think that's has reduction it'll years. so happen believed the haven't haven't was over and that'll happen it wide reductions said or the happen, to a QX. been there a next not little broadly, But, as more yet year the bit But that in ups industry companies up still

effective standpoint, that gains here to those have the to do to that industry now, for We in XX% the heard it's we market an will in industry digital. reductions digital, Now, efficient, customers pharma The using more of Engaged industry about field productive. having believe and they optimize from the or I that the about, you time. the prepared important how the either apply going industry to Brent's They why have to will moved that that happen? that make think and said efficiency And still what's, it is reach that, now helped make share we is has remarks, context thinking is them more force. more more do have opportunity takes become

So do And within in that out. well. reductions we that as thinking we impact haven't think have guidance will I those the seen included yet. our But play

Brent Bowman

could growth we Maybe broad in, see XX% the add guided in did to, the Yes. that strength across I portfolio. we

a have CRM We So core Engage. in and Crossix, core did add-ons. CRM pop

one you'll flow the probably fiscal expect that to revenue 'XX. billings. that through traditional it line see that's we And then Engage through through So year would with QX item add-ons. our that -- in flowed grow And other more beyond

Operator

Your next Peterson question of the James. will line Bryan Raymond come from of

Bryan Peterson

follow on I kind to that. up of wanted

Just you're do XX% what is of kind about Is potential? total market you potential understand offering? facet penetration? I of I to Engage, that you that heard see just think clarify, reps, to giving term that this long-term think and longer penetration that just I the sure I penetration so how the And of share? is the make that want maybe

Peter Gassner

Yes.

So is total -- the opportunity. the of XX% Engage you're right,

it's what that it's seats So a total the we the have, think of Engage. as CRM as we not percentage market for

then industry grow So, right see more we and industry steady that that hit as revenue, and you technology of fiscal the will we mentioned, year. to the Brent the quickly. add-on. with happened, expertise beyond impact products that, the year, were last growing there quickly knew relatively this like And largely course over We'll our see it move the for a

are we're have pop And we may with rate cash think the that, And and some at has that then, what growth. with XX%. of bit than about to it in current the email, this of close talked higher where approved seen approach see a hit I steady with we marketing already most So it'll beyond to which year.

Bryan Peterson

the I step to any clarification. thoughts thanks if Thank did how results this to and dynamics Okay, I for in core curious hit the XX you Obviously, your on significant CRM share had expectations wanted you. the the position just year, have wins the new that think on and a about that there. take versus for a perform core competitive market guys back be pretty space? CRM. just And you leadership

Peter Gassner

that Yes, cover thanks. also. I can

right. wins, So, XX a record. yes, had you're was last I quarter, we mean, CRM that

This quarter, we had XX CRM wins.

As a of them we there, them pre-commercial companies, U.S. of the look lot across in market. are many those

of in and We domestic the are even but some markets, then Brazil also wins seeing Europe, in in like in Japan.

need a shares, execute. winning domain in execution, operating the they for they we're because They share, right, we've landscape, over that. gained gained pleased need can to of, share, can people most guidance there's This doing have like and we've what partner particularly a them to with overall proven competitive we're for terms who difficult share we've expertise are is that's partner somebody deals looking gaining a a want they the trust. partner So, can companies year-over-year. reason productive field trust, we're digital with that also that about you partner we've to gaining and in reason the for can been a quarter-over-quarter, that all And the in the they're times, the also looking that they And that be really last a has we're in we're field, And transformation. innovate year. them through want get that

because light the is competitive appear. others on actually the how operating last standpoint, difference So our a in improved rest it's year has over the of the shined other and a how market or really Veeva -- from alternatives position between

really happy from progress with So standpoint. a competitive

Operator

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

Brad Sills

Engage have maybe years we you roadmap out, look some about customer maybe, the there's on now, getting still nice or think there from only wanted -- you're new a well, made on potential. that, Are obviously year. on be wins about, the that's certain in XX% the XXX%, But on doing finish executing three to think out congratulations could real you're not Peter thinking over penetrated products upsides? two, about offerings overall perhaps that time, ask further earlier, term, might is the And something to near to when be are CRM, you that further I comments could core commercial wins.

Peter Gassner

of that opportunity, products to our not terms sell Thanks, in there comments future today, referring Brad. about have we have XX% all the today. products, in about is market, us, in they Yes, today of sell we biotech, but we with to of a XX% about we really when the opportunity when products when the that CRM small my that U.S. the talking complete commercial go the core

So opportunity other that the products. XX% of that the comes of breadth from our

it Some sizable then, will that good commercial the data of we is have and will a that from chunk from we size cloud Nitro. the chunk there's pretty add-ons And content, a and grow Crossix also area CRM is have grow.

but look So haven't, have now in commercial, when we where for markets, which like the very days, certain this from. the comes in opportunity that's U.S., complete its early we today, we

we've we come the have a long data CRM, just from where the the long now days and tail areas. So analytics way really a had with being we products largest

Brad Sills

after guess? getting itself. industries And are cetera? opportunity, in consumers, going you're that in approach consumer here. after the sell these million outside packaged more Thanks letting you to the et XX more is aggressively are revenue of just today, on then, really know kind product you please, I nice opportunity. more And that milestone Sciences haven't in goods, been of investing aggressively at great. chemicals, Life some Where some that if That's the investing and may, of that reference selling go point one you business Where a perhaps Peter. I I

Peter Gassner

chemicals, pandemic. had although Life packaged in here a that on has also Sciences, the And focused on the cosmetics consumer tough goods, cosmetics, outside quality regulatory with focused we're and areas. the and Yes, the we're year

So it's and market steady And similar CDMS slow reference, about our the market certain I to in of would relatively what consider mover. it's it is size. a to put a size

So that we're too areas we're fast. these But are happy, our engagements. customer deepening don't move

market have we still to the business on said would So track there that we that, million give to guidance by XXXX like in on about we're segment that. $XXX before, for and have the of

there going Life Sciences. So things plan to are outside according

Operator

Stifel. Tom Roderick comes of from question of next Your line

Tom Roderick

Peter, to back I CDMS. comment your wanted to go on

how or what other front. about I'd XXs you to said for if would more you think of And which up but partnered entrenched bit of you seven presence share more that more over competitors. building that of that hear of lower We'd on mind feeding just side, love I the bit mean top talk I bit six take CROs your know a top And now that end love little a in with CROs that don't market the the where the emerging startup the perhaps about, at a about that. are hear are Thanks. more kind time does some little CDMS shift side. the the against to the

Peter Gassner

the Tom, I the top a very, asking six efficient, of program, seven partnership as want in asking to CROs Veeva they consider one don't very significant They Yes, customers very for. for our it. focus work except done. because top that And that technology seven lead every CROs supporting getting CROs for Quintiles. on are that's when that's what customers into are significant, aren't means

that. I conservative, with the And to mid sciences XXXX life roughly the customers. the pleased be over have success work early customers time expect is leader us market Veeva. the clinical into are can be year I'm and better they that market that that a means adopter feel by we're to very with But this our very efficient And takes bullish or really way two the technology. So it this asking CROs very on with for now ecosystem. its the management market on cautious our It's we a but data the timeframe. product in in and means

in first line of wrote So for leadership. code. XXXX that entered I the we're happier. We And set couldn't market be now

area. that about enthused very So

Tom Roderick

that too to asking rate of of we success driven front but organic on those Fantastic. appreciate you have more That's much be some cloud out some that. last the and longer on Engage great the customers once trying progress. sense as of in year, to behind When benefits can for a for term, sort of year. having the point the being sort commercial commercial on a been And the And by Brent, that lap just is by conversion not customer as what the about acceleration free Engage you it, would us Engage. how put fine monetizing normalized the growth on of of this to think details you're is we directionally model reason guide the sort give from

Brent Bowman

break that don't out a in And with Yes. we products little guiding providing results. and specific texture. But

at sense dollar we in said we what thought remarks, opportunity a the of my As we prepared was XX%. had you captured we gave that

the we of are equation that. piece is, other trying size The to

if we've talked about CRM. think percentage, you So of course, that we taught, sizing about

So around we orienting see about XX%. that

think you that if to how quarter. about had So something outside the growth consider Engage have of record would bookings there. it commercial And our a rest portfolio of that's quarter sizing

did we Engage. strength broadly So of outside have

Operator

next comes Your from Hooker Donald of question KeyBanc.

Donald Hooker

kind the news you've big some of PRA of had With if curious the any Sciences, changes CRO in sort take of of obviously, guess, the and merging. potentially space, on I the Health ICON

You there? kind from thoughts is there for your CROs, working perspective, given of out landscape you commented, about excited on lot the Veeva partnering, about merger progress any you're with CRO that

Peter Gassner

that consolidation happen space. That's Yes. And can there's large in a certainly CRO the merger.

our Both to us. our of for products. PRA going are not think some be good ICON I actually customers, So but of have our they that's and news products all

to I they for look efficiency, our think probably more they'll for products. and get Veeva as more look of together they

But areas. also there's smaller consolidation Now, starting always specialized CRO up in that the certain CROs in is industry. a

-- always consolidation it's both happening. startups there's and So

don't level change I a CRO industry. macro in see So this

Donald Hooker

then, follow And you. question. Thank maybe up Interesting.

and sense small it's Just a curious you. thinking Veeva a companies it regulatory that's the that opportunity just with a growth providing? on know and clinical? could get would your consulting talk market update us consulting have I of business. for focus, think regulatory how the not of that environment, a is bit I expand struggling if are doesn't clinical of lot therapies coming like but particularly about I it's though about biopharma that lot business changing are is was there changing you area Veeva nice a sort and small, you dovetail granted, out are you Can and little sponsors and I to more to -- the with technologies, in new even lot imagine a there these wildly the types the into of but to maybe commercial area of that

Peter Gassner

it and a data different bring it When that's, efficiency, in and of optimize now whole optimize need be business within you and package. area R&D operations takes to a the it grown and customers products. operate what is processes talk business And new always that. clinical a process how and in into that processes to going and quality will is execution lot optimize of about you better new So and optimizing available, have given need the U.S.? And available? the process, what this field let me in How help is it's the those How customers products, time How our safety? brings doing and year. the lots that's commercial, I in consulting. change flavor. software, boundaries clinical step regulatory commercial, we've that do do do not really they data a they also to different region? to a functional Veeva at starting side, the related but you're we technology think, in the software can we boundaries, it because now Whereas the between business do R&D across relatively complete of is Yes, out groups, the you better we small really side, may of really bunch look France? operate is to back with and technology In that in that consulting, purpose our And clinical but as you're have related help and your particularly, what

very it's Veeva for So significant overall.

Operator

Your of next question line comes from the of Barclays. Kalia Saket

Saket Kalia

Maybe first for commentary around you, data cloud. some the Peter, interesting

to quality not data the quality even on it's like offering potentially of potentially is? can another actually so Sounds is, better you only data better down what that and customers, of that pricing sort the brushes, about And just question envision road? talk enables better but broad the option how that data, you

Peter Gassner

it's I better. how guess

First it is it's and really out innovate, really innovated, hasn't set to XX the push approach hasn't that really it innovate. of sciences the years existing the all, really life data we old, with had to approach competitive big, to

of then a approach and longitudinal longitudinal taking on a different are prescriber approach data data. but data, we data I sourcing. specifics data, definitely sourcing, So different data to And patient to we're that, into won't the sales get focusing our longitudinal then

that them if can to you datasets they So industry has look have, be better used coverage ways. new gotten but at in the complete in it, we're datasets the more with historically, past, bringing used the

what this think, is So analysts but hold data of they this find get wow, way data be data, a detailed very the we done. is it's work, should when

new. Now, it's

there's change. so And resistance to

moving change, it's excited resistance client innovation. So almost like to but cloud. really server about we're There's the from to

Saket Kalia

follow up you. it. Brent for the Got maybe And

think to I on if sound that but on the you guide, huge when those this dig tweaks recap could sales impacting you a a talking compensation were of how dollars, touched of just didn't potential potential little level like high mentioned but what tweaks about you expense sort you bit dollars. curious of into the kind kind and some are

Brent Bowman

Saket, happy certainly Yes, to.

we're the in alignment. did on it year aligned P&L we substantial of to changes into align as OTEs, plan result going higher nuances to our to But do get customer sales to the goals they're The made the based that the in comp enhances ensure our result we any a we're So incentives looking changes success. change periodically of expense treatment. the changes. fiscal And to amount broadly, but and not in accounting did

align all all, direction for it's customer success. So, in in we think right the to moved

Operator

Joe Vruwink from come Baird. will of question next Your

Joe Vruwink

new few truly back that becomes But industry? to or And patient-centric at you it's broadly, innings. think if wanted virtual is kind that's practices I or of still greater if evolves beginning way your made early but you or different different, the rise in clinical across And comments over Vault clinical the are and it just years? the we're go maybe trials. there opportunities practices about or how to of do a in MyVeeva, change more next the develops I understand development the certain the norm, hybrid embarking on do this Peter, clinical the

Peter Gassner

that's clinical or more way, decentralized and more going trials network. the that actually trials. by the the won't Whether really, core paperless approach really or clinical not, vault are the can really the I more we But where do to more is clinical happen, affect decentralized think, patient-centric the trial. is help

usually think in the the data virtual fills patient, them data So, office, electronic the want able not type whether about we doctor trying That's the the do There's to right form, back to to what middle. when from when or that after be patient flow done you sponsor. out actually that their into today. an seeing paper that's in when have -- into it's we're how

So clinical and that That's The research Veeva so life we biggest automate what guess the to we're haven't the we're the product, ever that we ever processes accomplished to biggest that across it. process about industry. or has whole because we're really automate trying SiteVault for patient, quite with can undertaking. doing software our the sciences yet. undertaking providing research an we've accomplished started is the undertaking and clinical it's free, I institutions excited

Joe Vruwink

one ask can I if follow-up. And

performance bit in in outlook update? and around the and more it than regards specifically last seeing of quarter given of you financial is initial drove and you're have what are this initial between today's larger commercial near-term the there change 'XX, quarter's kind Engage, than the the that revenue fiscal the from expectations specifically, and cloud update on for because communication. uplift the to any Other a typically a change other Just factors

Brent Bowman

in the my news Well, is good it's answer broad-based.

development before, broadly demand in strength commercial customer outside And good adoption seen cloud cloud across in as suites. I we've and our So, said more of Engage.

we're of our drove the a that really swath increase is So, guide. in strength that seeing it broad

Peter Gassner

recognition I our strategic that it's ourselves customers. slight And time proven a on flows we're that our we goes more. more through becoming that as to feel a with partner We've guess business.

continue broader more into We quarter. we're prove to bringing And and ourselves the product print executives company. grows in our more every senior

So, things broad-based improvement. that -- to lead those business will all

Operator

next will from come of Your Sterling Auty JPMorgan. question

Sterling Auty

and I you clinical? us revenue descriptive R&D a give would a a revenue. that, Vault the from revenue the coming number maybe if update mean is it of commercial, different bit And maybe on kind what of all by I'm of you versus know just today? describe areas, Vault split curious could of I versus up bulk just how in the mix there's breakdown kind pure of total that how products of much the of

Brent Bowman

Sterling, Hi, it's Brent.

segments break the major don't at revenue Vault we level. into So, or down the product

we've in about TAM. think I the market regarding talked the opportunities

a of billion $X those we across that have broken all we've and runway So, segments. down, long

front getting. So with safety in we're really suite, lot a regulatory, pleased we're of there's headroom and the of the clinical across and us quality, traction

Peter Gassner

the And commercial not largest numbers, to the in down Vault Sterling, break specific the contributors families it revenue into but content. are

got that and the largest. operations Now, into, place the was first are Those clinical we the quality. three

the safety. not a large. And and Our Those longer management data the good especially as but then, tail quite newer ones It it. as are clinical the regulatory very has on are well, new. is very,

think it. So how roughly of to that's

Sterling Auty

outside or how aspirations safety in of And all expected you the be kind additional life would quality think look you there, business at other and be, area, be might opportunity about helpful. come follow-up it to might that then, very solutions when That's one contemplating? of your longer-term the Great. of from when that sciences, much is you

Peter Gassner

sciences on will time, outside and sciences. executing plans of than quality at anything be about that's At but But things. other million, this that that's maybe used other and we're we talk really XXX not early regulatory life course, is of that and outside Safety we contemplated no life and million. have always -- XXX do would executing into when regulatory on. the And And, we're area. time, none in that's now visibility quality there's we very have what we of of the the in this potential would

Operator

question will Suri Bhavan come next Your from Blair. of William

Dylan Becker

echo you first for guys. questions This and for on I Bhavan. taking maybe guess we'll a Dylan on a quarter. Appreciate more is the Hey, congrats solid toward mean, question me, Peter. I our

thinking maybe not CRO a how of CRO this overall another quarters we the of couple drivers Now, kind as in be these CDMS. added should But of CDMS partnerships from only announcement, in adoption. of we initial top that

Maybe as but kind sponsors across these I on CROs point it just question integration on and and the well another, more clinical as side? the overall adoption platform focal of for opportunity a expand of broader, kind their think you the of clinical to suite. more mentioned earlier becomes

Peter Gassner

Yes.

seven, integration right small. in fabric it's is that. area and sciences. for Veeva indicates sponsors, think becoming driven six, I This it by from What clinical the service with of focus the data the interest a is on large The is, part the really the that in to life CROs top core CROs. partners management

type help tell right? excited we be end we'll that's And also I think optimize see more about that's innovate the further overall. going When up with CROs, of they processes to our the it, I their technology, and So to you. them will couldn't causing to industry something change it

there's And even were cloud have products, of roughly existing not remember for the to data products, that inefficiencies the foundation players foundations You those the made major into system we're the would of I the they're There's all say release. built that for the XX the how major existing clinical Veeva, applications of example, players, are those that breath years upgrade lot management fresh on two area. ago. a true not clinical kind a management same automatically, is to data air of not and still, to

Dylan Becker

No, being sense, Paul. maybe Maybe and kind things clinical like that. of of for there. and world uptake I as of integrated maybe are with events, maybe especially guys the the kind investing physicians may rest it of webinars, just of in like online one kind the fantastic sounds given the business a you if virtual But suite it lot more or that's well makes Right. within more,

generating a what there than opportunity XX take acquired greater sense acquired because you opportunity XX had to months sizable or of there's checkbox when and I how it get initially maybe to back? think that growing seems more around when of was business or that expected kind them, on like this maybe positioning Just them wanted a it's maybe capitalize you you to of insights initially you're a

Paul Shawah

acquired pretty markets, haven't business still when shut the Yes. That's events a smaller in the business lot quickly exactly they're have been part much down or what's we happening of since pivoted the happening, them some events. of physical the not, and we've are digital is gone for to also they're they've And down only good reason, considerably. beyond now markets but the but not growing pretty that. growing pandemic, very what And across of zero, consistently most because gone

and can say, together spend you easier. digital no a the bringing because You little where on is geography think people a overall you're The reach physically, get with cost bit event about let's not is is a that a barrier. Compliance the hotel or less, longer restaurant. event a

a focus doing on industry moved of I next continue we to So, think couple the reasons the digital the and will over lot has pivoted that. there that see the years. impact of that business that. some more starting And to -- already that events to from of are And has we're

broadened are So the I people the companies are when I where and our concept portfolio. a do do handle event a see think others of that at virtual joining this future some space, actually physical virtually. hybrid that a we'll do can think what event it's now of and location in We in they physical, is the about mix prospects

So it's really space. strengthened our overall positioning that in

Operator

next Your will Davidson. Jaluria question Rishi of from come D.A.

Rishi Jaluria

seeing. kind can then traction if more the could the I solutions that together? seeing follow-up. point then a got a place Any of Is using traction be in the customers you first stitched color different And that going are are you're those would where helpful? on what and give I've of bunch after it greenfield see other a impressive the business. you're continued to Wanted solutions? these bit go color, to Are you CDMS you're that especially seeing. in strong momentum that on maybe mostly to displacing us CRO wondering Nice little back first traction and give was

Peter Gassner

I hear was couldn't We're displacing always you on mute, me. Sorry, something.

we top be or -- generally, a play with will displacing players a displacement. There not players. will players of a often much. time. And there. are have wholesale of not the a I it's where most one That's They market. very the two localized large regional not at study we Now, start it's smaller, too

as better EDC. be And the to replacing it's why, top So we'd two. a

development So then, more the true review, agile process study is huge a and cloud. the and builds a review environment bit of with And reason. are that's faster its data streamlined a basic more the the

always and product. And very And product some then, especially, now have CTMS So, our a our it's eTMF upgraded. good increasingly product. CTMS eTMF CROs have those have product we of many and

process applications Veeva whole pre-integrated suite the can integrations. people And looking about smooth same they're reason suite more When SAP. get are don't things They why flow from it's have have can all because So, efficient. more to way, the at CROs a It's efficient. they the maintain troublesome efficiency. that from of these are get they getting a together,

Rishi Jaluria

maybe can at bit subscription the get rate. in on about from you more of drove it level thinking years? if color And on mean, wondering maybe bit tick the forward? be net how last prior to little And retention couple 'XX. that of actually little was give it's and actually then, really the improvement should see impressive a year I a going I color to we metric highest that up like what then and wanted looks since FY I

Paul Shawah

Yes.

side been qualitative but commercial the on that. change of a view has our the a in we've to And been on side, give doctors' customers you under them forced pretty we've a been offices were pressure virtually. significant research business closing on just continuity, good me When were Last operate the with Let more both operate more They've about think these maintain we they're were the when differently from operate have remarkable year put down, established as also position there. efficiently, companies development how and clinical of business. operating. we've helped down, where and been most foundation closing digitally, sites standpoint

that's that in think up numbers retention showing the I you're seeing.

viewed as opportunity strategic for to that even couple as years. beyond even of last partner. shine a It's us are created more We the

retention challenging consistently these what that's in that So companies think partner that in execute seeing times, higher I can need you're of a rate. and part

that about bringing How that together. area, each process it become exercise. a road in they vision And cloud areas It's commercial a grow add of really all selection last buying what do we easy. over make broader about the talk cloud becomes I'll I broadly that? development Companies is, they these vendor into and decisions matter after then, do are they a that a than exercise one into development cloud think to cloud, how more time? So the of development thing of get really mapping vision.

Operator

Your next question comes Bracelin from of Brent Piper Sandler.

Brent Bracelin

than finish with commercial Maybe model is we'll for actually largest here. only now the this Vault in start the Brent is but Peter product first growth. accelerating also And saw now and with not time. our subscription larger Brent,

strength about quick was as drove Vault? talked you drove that you broad-based, think about again, involved other this that any follow-up drivers for just demand factors acceleration one this So but the there quarter, in Peter. And

Brent Bowman

into adoption, further that eTMF buying adopt products the Yes. just more and We broadly seeing so integrated saw, Vault across look suite, as people clinical they like the you're platform.

lot in It as quality a So it. CTMS. QMS broad-based. saw is strength saw of in strength strength and We truly our in We suite well.

really time broad adoption with across set. so, exciting our And it's product an

go to vault more are customers all the So space. in, starting in

Brent Bracelin

Got it.

faster of know like products. think, sounds of uptake it there. Vault I I there's XX little So, a add-ons some the XX, there's,

made to wanted good you, hear. you biotechs. around I commentary follow-up I the for guess, So on Peter, to

it a it that the me on to other Is process? this saying time-to-market? at the And why the to wanting of Is have biotechs seeing could more faster as talked to biotech? primary digital-first coming go biotechs to you're the to well. mean, internal the why about My interest precursor they a go question I and we biotech seeing first? kind a that biggest level? increasing efficient in Veeva. want Help of benefit You what's in benefit are understand have firms going want? digital that kind is, you, just some be focus just all-in digital Is all

Peter Gassner

many a for so many, commercialize critical the the of through trials millions make go will they drugs very, for It's to as clinical concept of to and they the dollars very time time. that's then, be biotech their or a have a company. years many the and biotech, break using developing So

when in context them some the us commercial go to Veeva. and they cloud broadly of with wanting the that's So coming to in --

really them to trust. somebody Now, right really why partner learned want is using Many need on And trust. They have need do digitally. they the They've to do can R&D digital they of important and that? know a they they they have they side. Veeva. been can A, trust us it

of And It's new. so, way do same this is the not to kind it.

a that company And I critical it for So, them. is looking can for all put think together consulting our in they're business this.

In they do us, consulting is just in package, of because part you fact, business go when a that with can't all basically with required technology. that

You to need make work the work that you. process technology business for

down the there here that from consulting and fall contractor. and from and have That's place. why contractor. for the the might digital and Otherwise, themselves to the would and critical if general us. they have they we biotech another That's it's come from from be trust more general to buy the So to package. has here here and us They areas software get be from could they complete data content company

you do So, hey, how do that us? for

Brent Bracelin

in and of we're certainly side. big a helpful explains consulting seeing why you so much. tick Thank up on the Certainly, job a openings number

Operator

question come will of Materne Evercore next from Your ISI. Kirk

Kirk Materne

you your their you're operations, go-to-market from of that journey the the or months, through making in talking the you you or own have on can your think when by gotten have people about months out there customers that where planes thinking people site, time your curious in helped point changes? Peter, you're getting person be the you again, And talking can can sales all how was lot fact customers on sell any with then to actually over are spending digital will are to of might in virtually portfolio only may helpful. whole six level? a perspective. products about I that kind things be thinking are the like data, I'm not you pretty about start these conversations own where how few at transformations some effective those much hopefully, year, but coming a thinking having about person a be next pretty big

that might So you be this anything year of you're then just anything moving maybe by out walk past can COVID? through changing helped kind and

Peter Gassner

pivot customer online those is we had two-day we Last a to always think we are changing year, part those very in What of Veeva. customers person, do do would our I we are quickly key they our have summit. can always to this summits, together. do put year went Those better. and well, event. We the We but

even formats So, at this virtual our year, really events try to we're out looking that We're new excited better. about. going doing some we're

a thing. the And marketing more the have So that's engagement and continual. one little customer

twists to last road to product product You've map our turns. and model, we our our all got hard remember had support customers and to pivot on so their year, and

optimize So, in fire. to we sort steady of a think, with were hair I This processes. on and of year, we're state, our some COVID sales so going marketing and we're

but than in-person I speed interaction any one help back product business. getting think any impact that more terms I will that does product, of the think in other don't together, Now, of do generally

overall, time if I will ineffective together. back get more over don't a business think be we little

Now, that of out way just Veeva, needed. affect people just has personal connection that provides think energy won't ideas travel your norm. is I shaking It overall, a with and and you of

So I'm you get out get something really looking we that didn’t can, this is it, and to missed. travel. because we're there not that? being interaction to When forward having going to We used how about

team We're to our So together Veeva again. is, back customers. whole the looking and get

Operator

final Stan question one Stanley. for from Morgan time have we Zlotsky And of

Stan Zlotsky

certainly obviously revenue bit. the that we completely actually much from up second, much as come result. due of a little saw the organic because driver beyond? maybe of that mean fiscal Engage unpack the retention well. How sustainable But net a to to in up obviously, installed benefit the onetime really us an even product, product in this was going or contribution a or of fiscal the domain into ‘like tick on it it selling was a wanted I was revenue base, was versus strong you. to year retention tick in that's how that very And impressive I help 'XX, by a quarter. Crossix forward Maybe into and for inorganic’ to back the Congratulations maybe disproportionate what's net XXX% 'XX

Brent Bowman

it's Hey, Brent. Stan,

that. development But cloud Engage continue to our base. I currently and that contribute expand of did So, also, as was say to what our customer up would across tick broadly is more a we offerings driver big land

than it drive cloud that just was more substantial pop. cross and the of that development So, There onetime selling number. happened attach was a space some that helped in

Stan Zlotsky

the XX%, into about reductions. way you right? this ask And us the potential you reverse to guys in in QX, to That's do global mean, baking much your just not baked or for And And have than are there? QX? reductions renewal for -- what's in if of the in XX%-ish baked maybe truly is about talking XX% talking the something about what XXXX. slightly XX%, as headcount base is guidance Got happens you of in taking I it. happens to decline were type of What kind billings helpful. headcount fiscal less in What 'XX? that pharmaceutical were question decline a you as

Paul Shawah

Yes.

happen, So, time, see will we over time believe, over next to two we, an change gradual as this over as abrupt happen don't one We it in and in that it them reductions bake in we the change. see will a and because are those baking fact, we years.

somewhat to the on happens Now, Maybe muted that that happen because fiscal not hit year a may the time. a be fiscal even us next change anticipating think portfolio. and over period that be cloud impact financials our until or in have commercial by the going in And will of will that of this a CRM will add-ons in to having the year. offset I continue lot strength we're broader

commercial see offset in. the we again, in those cloud fact, most reductions there So baked core have, some you is But strength. by of of what

Operator

call the no And remarks. we questions. to closing presenters any have turn for further I'll back the over

Ato Garrett

looking for year conference right. also to great at Morgan All forward and Thank of and everyone, the ahead. to forward you. a many with we're you, Stanley tomorrow you talking are your we Thank time looking

Operator

concludes today's very joining. conference for Thank call. this you much And

may now You disconnect.

Veeva Systems (VEEV) 3 Mar 212021 Q4 Earnings call transcript