VEEV - Earnings call transcript Q3 2022

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Ato Garrett

Good afternoon and welcome to Veeva's Fiscal 2022 Third Quarter Earnings Conference Call for the quarter ended October 31, 2021.

As a reminder, we posted prepared remarks on Veeva's Investor Relations website just after 1:00 p.m. Pacific today. We hope you've had a chance to read them before the call. Today's call will be used primarily for Q&A. Q&A EVP Gassner, Bowman, Commercial Financial for Officer; Chief our today Officer. Shawah, Paul Strategy; me are our Peter Executive Chief With and Brent

regarding we course to of performance various are current These be uncertainties. make this views the will business. strategies call, risks statements on During forward-looking the and of the statements subject based trends, forward-looking anticipated and our and and may our expectations

release risks results the may Please listed differ included in our risk and the in on earnings actual factors Our Form filing refer our materially. recent to most XX-Q.

disclaims information the statements. forward-looking Forward-looking so call during call, any during public information. our updates statements this available revise not may to made as are or on We the form. during in the us XXXX we on to call may is obligation X, replayed further today call based facts will presented Veeva or today’s on we current of our do not the quarter provide contain December or unless guidance If or but made accurate update any viewed the any today. being guidance the discuss performance today, after

are the metrics reconciliation in over may the that financial our turn today's the on the and to And release for I'll metrics investor website. in certain available earnings joining comparable On our thank aid you call can in supplemental call, both GAAP also A discuss understanding to we we With non-GAAP which of us. of believe results. Peter. that, be presentation, found

Peter Gassner

business total another revenue strength great million. of Non-GAAP to our the welcome with everyone. $XXX was XX% million and also income to quarter the revenue. $XXX XX% was to Subscription up results $XXX Veeva for Total million. revenue above up Ato, was operating It XX% guidance. across or you, and was Thank call,

CRM, in in the with Veeva Crossix area, in saw in across my Cloud. a very quarter the Development good R&D strength had noted particular board Link. As In Veeva we core commercial we analytics, strength prepared remarks, continued and

now will your for up We call open the questions.

Operator

Instructions] Stan Zlotsky [Operator line first with the Morgan from comes Your Stanley. of question

Stan Zlotsky

an afternoon Hey, questions. call you million thank see in shift the And know much what -- headwind high-level, the just quarter, in the I quarter. on billings out happened as our that quarter? there for Maybe remarks incremental in you call starting in buying to think prepared anything more taking I did the that far Good that guys. Is so and to the one-time as you $X any patterns?

Brent Bowman

about XX. No, Oh, nothing other business. $XX I'm very overall with we broad a that, one items and in the we momentum hey, in strength the pleased the million The to overall happy at Stan, Brent. it's than in expected I called saw But came out we're billings was of that the of anomaly base that quarter one-time strength else. the business. with

Stan Zlotsky

that kind mindful we're quarter, be renewables of to as versus as from else? we that out or into need pulling that you QX. thinking mentioned QX, essential then Got as shifts to think $XX any the than other guidance of as it. note way other about shifts Anything trends be anything any QX underlying the be else And going far to we demand should it. Got pushing for I the incremental million far of

Brent Bowman

the mindful that second of ACV, you the out, pleased called is so very again, half addition to A linearity the was be items, half. couple the we're base the broad to $X a Yes, the of just million so in first booking item benefit with strength. towards and

quarters and in strongest had we QX 'XX. remember, two you our booking 'XX QX If

So impact. an that has

have attrition CRM expect, an we does as to as that and well. through, the flow revenue is starting addition, impact In on

mindful be opportunity in been that things we all, ahead. with we've the how competitive the of. are look happier positioning at those never But and our all So

Stan Zlotsky

so Thank much, you it. Got guys.

Operator

Dylan from Blair. comes William question next Becker with Your

Dylan Becker

Hey, maybe guys, the you with nice in the job guess starting here. quarter side. commercial on Paul questions and taking appreciate the I

to see Data kind to Cloud, of on and we'd sets you additional in about data thinking pharmaceutical to driver up components some Cloud guess are of companies. of three with I beyond. love in and with for together seems kind with that wins come year Data early the I of for dig data a tighten as kind maybe feedback But to guys to nice the maybe like these And some So next understand adopters wanted those here and releases just that into about coming value value loop think sales but XXXX really prescriber how really key here. opportunity this of we

Paul Shawah

as have data, for Yes, U.S thanks Yes, market referenced, question. about we're prescriber And excited patient and potential data so next the with have much in QX QX in the have next you which you're really of to really today right. year. available Overall, we're market. we data Data the significant in so year market, big is of going we sales Cloud, where that

where and number could They're many is data excited of to the we're early of for in finding proposition life highly for marketplace. patient approaching. we robust more portfolio. day be customers company are what targets. Veeva's out allows more value patients, market. the is of that differentiated, exists we their When the patient we that that have they’re data, to have proving Data in finding in majority the who of do cases, what a more that's us do And Today, is expand which be we're -- sciences patient sole data. to So that, vast we provider

create has a better out we that data So can the our always and proving hypothesis set we're been market. in

with super Cloud. we're we're about So Data excited going where

Dylan Becker

Okay, great. for well. And helpful. one maybe That's as Peter then

Analyst Day a that broader and about the set. So on lot I a innovation around recent of across opportunity think quality month highlighted we've of of ago the kind kind it seen you of kind well,

to shakes that of around here maybe that sciences applicability in itself. kind of something kind that suite cadence kind how life of into you dig XXXX in potential again more So innovation I the of are opportunity But guys of and quality out thinking timeframe. outside expanding the again, the viewing of potentially verticals, long-term maybe guess that

Peter Gassner

Yes, very excited to is quality broad very business about we're turning out us. for be a

the product and So we ago, laboratory. -- MedTech, so now control for surveillance, a specific quality automation QC added adding actually, year to or was that automating validation that's limbs

So broad. long QC time. it's building limbs, QMS and which even just we're then quality has for -- some it quite well docs the we've new had also that And is really a big in one. and are and market, pretty, products doing mature and a It's that pretty product now

are that products a providers So bit, that's that mature it are goes those sciences, targeted new. et life little but sciences, of And of a brand service that to just outside manufacturers, has one combination products quality at contract CROs. its and products life is cetera,

our can lots quality us, suite. for It So business a that's sure. need big of for be people

Dylan Becker

Thank taking you for question. guys Great. the

Operator

Your next question Securities. comes from Ken Wong with Guggenheim

Ken Wong

for Thanks of my CRM for me. questions Great. couple taking A question.

Or a about experience? that particular customers a guys the greenfield I script opportunity you is mildly the one, new existing guys? product? I right this introducing with providing maybe mentioned, you think by CRM. this just additive MedTech to a The think What's found Is that for first way

Peter Gassner

Veeva for industry. a that opportunity into and pharma that's platform it new Yes, us. CRM for and we -- Salesforce.com, a changes. Today it's pharma is built and the the And that's of going Ken, on well, Salesforce sell biotech none

was going to as can we're think side And the for really them. space. have we continue announced MedTech pharma differently of you we the So as execute to what

could the down So think MedTech heavy a surgical gloves. anything of sells be a company as from on equipment to medical this all way that

are it's we're couple for industry, vault, well. really Veeva and broad a CRM. a a the in of been years area for selling R&D it's applications and of past to bit doing So We've MedTech different primarily

We MedTech. customers CRM what building for MedTech cloud we're R&D MedTech. in R&D, where sell to really for opportunity application creating the industry an space. is an have doing we're the is over But that's and We're XXX big industry-specific we

-- So it's it -- additive. it's and is a new

Ken Wong

to Super guess and enterprise should a top from there? there derivative some pretty guess, used I except it. I out? it say you had everyone think guys Got that we but a was notice Domino. perspective? it Matt the enterprise I was just that of I was up XX happenings on help, you What's recall, bounty for that Roche last enterprise that vote And is customer understanding a then locked also helpful. regional my this much can customer. a couldn't of Or mention another

Paul Shawah

XX. I we this on It's give will won't specific do that all one the have top -- But say of. we're I Yes, proud -- I comment won't is customers.

globe, somewhere least this major markets. at Some, in all the point, at the

gains share elsewhere this expansions takeaways which added and that's wins in enterprise one top this the in heard take right? executed that competitive just really -- U.S these had the is you America Peters have quarter. had We've market. CRM. we we're win. as well been We We in So in you remarks really of market XX, proud been referenced, in and things strong some time, really executing, Latin This We've Japan.

broadly So we're that CRM, executing really in on in happy cylinders Yes, commercial. and more progress. all core so with

Ken Wong

taking Got my it. for questions. Thanks Fantastic, guys.

Operator

Peterson James. Your from is next Brian question with Raymond

Brian Peterson

taking the for gentlemen. Thanks Hi, question.

versus productions 'XX? at about some fiscal were the your year So those XX how ago, I'm think we I wanted fiscal 'XX in progressed? curious the of has year how on to where impact that rep of we should hit just reductions And sales versus customers. days

Peter Gassner

Yes, I could give an update. you

We XX% also next particular, through happening end next fiscal regards in see anticipate talked With the about just the it end with of So saw was year. year. QX, end more of light. roughly year most 'XX reduction rep of small do quarter we a in it we'll and this the we of most very a it reminder, relatively reductions, happening happening as to through by of

Brian Peterson

just about your when engaging reductions, -- I'm Okay, on the call, kind maybe and a spending interesting it. with maybe with we're talking helpful. that. like, you rep more you. And think software move of about they could side hear got about It's to technology customers commercial to And a derivative starting tech That's on curious you're are digital.

dynamic? should about So, we're levels even kind that going reduction, spend still think we this up? think that, do of How we seeing overall though about

Peter Gassner

to they're reason able related, very they're gains more becoming much because because is the productivity they're Yes, digital. have the

driving science more a largely our the it more not those last what's base, gains. years the little our as over it we've they consume they why those and some as happening correlation what the Either across or reductions, it's time. and productive, digital gains what over you which been customer help become get decide certainly more take a they have how digital, And So products efficient. they playing is that they more they there's been, of benefit yes, now of become they more see deeper into industry happened can which advantage are and they and takes productivity to can efficiency to there we've this the gains, the shift of. couple out a and take customers as while, get But reach

Brian Peterson

lot. a Thanks

Peter Gassner

Sure.

Operator

[Operator Instructions] Your Morgan. J.P. question next with comes Auty from Sterling

Unidentified Analyst

is seeing on Sterling. that add-on? could anywhere was to particularly within you're this add-on you I speak Hi, Drew new of CRM the wondering for or products, pipeline if else

Peter Gassner

progress Yes, I continue to add-ons The that. to well. can talk really

helping tip XX of some you with engage. very that months, I add-ons. you saw customers some spike the acute spikes Over the digital add-ons say with to would specific the get to spear and saw XX that our last

operate taken much broadly So of more strength new all efficient. those the of the be help become add-ons them together, across our Engage. that, add-ons -- they we've some we're But help better of generate customers and data because to like more all digital, industry they're seeing them more They moved help newer differently.

strength we're in add-ons CRM, only broadly. also but not core more So, in seeing yes, the

Unidentified Analyst

it. Got Thank you.

Operator

Stephanie next Leerink. with Your is question from SVB Davis

Stephanie Davis

the Hey, a call the SMB bunch quarter question. had that thanks wins. for want just guy, of congrats and remarks I to prepared in taking my

should How both hoping broader was traction the to relative just that market. given been scales that I contracts lately? could the So think seeing we've SMB, in go-forward about we and opportunity IPO in activity talk you end

Peter Gassner

their that's market. important some the is oncology, rare really companies, medicine often you this where launching interesting the first innovative, biotechs, mean, something most have be specialized could Yes, SMB and it's this space disease. highly is, a of I

the get early from which very into are we products, So clinical cases, development is with our in -- spectrum. from often cycle promote to to they able start across set. closer commercial many often as in then -- we and where else them anything And most product to regulatory, would Vault anything our the start launch,

space. we're in So, strength good that really having yes,

Now, have clean strength, unique have and going advantage having that we'll customers anticipate forward, those continue to a the slate. I of

with obvious, may commercial what to some compared becomes them. going whole So them cloud, tied with for a really cloud easier going development have and somebody lot legacy to really that systems

it's we customers, a there. big yes, are value So, with making progress small great proposition those

Stephanie Davis

That my attach earlier they're Are of relationships? more follow-up. products or about think we up to touches some can much established near-term? on within then add-on how than And to suite, in your your there likely some the that

Peter Gassner

are and are their in There they depends it on lifecycle. where

with the And as positioning -- can which it teams, in likely in often part start and And would the then marketplace. affairs in the the certainly advancing in earlier So the regulatory. they in of their much start quality, to with Development closer area. areas would start Cloud, you medical earlier products they the of commercial lifecycle, clinical, expand like some first organization commercial, to become that is they that's then they start to product because actually see where

So can spectrum. help them along we it's that really entire

Stephanie Davis

helpful. Thank Super you.

Operator

MacDonald Ryan from Needham. is with question next Your

Ryan MacDonald

taking my wins in my first Crosssix really one questions. is Thanks the omni-channel for the around analytics. guess I

seeing Just of digital investment as with purchase in of momentum more to Obviously, becomes what see rep important you're curious sort of an that reductions in space decisions. Thanks. physically. those terms channel

Peter Gassner

exactly the of Crosssix a really which momentum. right, the the Yes, driving you're is best lot product very in marketplace. it's

long very it's and well doing that been has -- the in product a market. So been and for time building maturing that we've

We the down that in space. innovating continue also expect Crosssix We're to trajectory.

for CRM, So if for. data looking Crosssix, looking it really innovative we interesting we where and things what in are you some remember, innovation. took of customers of enhance us of kind They're is which comes some did the to we out that that our

and driver the and it's as working working. to going And So a not what's they big are customers you're understand doing of right, turn need is Crosssix. digital, measure more well. more And our there's why that's what's the

that. about years. continue a excited That'll the and be for we're grower several over So to big us next contributor

Ryan MacDonald

Cloud of then was your Data Great. cases prepared remarks follow-up, as in around thought and a the discovery types interesting data of use customers within And I or it new of far. sort maybe new the thus

use cases. examples some some of curious be Just of those hear to new Thanks.

Peter Gassner

Yes.

visibility term. today, diagnosed, mean these need they'd for and indicators more [indiscernible] have medicines, are that data, to patient mentioned the we we patient to precision that that medicine we in good to with datasets patient specialized and of what’s -- treat some across we're some data, have are I started they journey. our particularly getting super be life what have the longer they sciences the to a newer, as So deep are patient what really may the able that that How of happening that other the they to for expanding that's talked in marketplace that valuable to patient customers the a is longitudinal company, -- earlier. And able

can So patients think to it help may where data that you really patient about helps be. identify

think think can as may them You on, over a it transition to what they're helping their to -- when and about about to them treatments they medicine.

also segmenting can about customers. and You think as targeting it

really are all So good our today. really seeing And taking are they're that and advantage early some customers specific of using cases those with. use results

Ryan MacDonald

Thanks color. for the Great.

Peter Gassner

Sure.

Operator

Bracelin [Operator Instructions] with comes from Piper question Your Brent next Sandler.

Hannah Rudoff

questions. Rudoff Hi today. all. for Brent This on taking is Hannah Thanks for my

on First a last one of is question. the kind follow-up

going you to find rolled than sets see maybe I data competitor targets a I once the more three that all about past, number think data. where customers talked your around legacy data have do using out? using being you guess in you've XX% able patient

Paul Shawah

to and to, match question. depend Yes, we're able It that's we're on area that a really find to we're others because with, it where find, able not therapeutic we together we're robust. the you're technology, a where modern good certainly do approach, taking and using create competing will we're to competing, datasets able who believe, data those the and we're something comparing are

targets health additional going professionals cases, not range. of may may It's in additional they out pleased value So customers able the as going that. some the get continue we're getting as much. it? be that's It range, and more of to But Data care patients, that we've I it that the Do right? see data. be higher, it find and been to are why may because in would it's invest only we go thought Cloud direction heavily right to to we In

Hannah Rudoff

year? Great. you going about how are headcount And then into next thinking

Peter Gassner

take that. Yes, I'll

XXXX. So, in we're with employees towards journey XX,XXX pleased our

we're to and innovation. organization have a success customer very aggressive targets, and on the focused We building drive

leaning we're investing our in to in people. So,

Hannah Rudoff

you. Thank

Operator

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

Brad Sills

the I any XX ask did clinical about for you. Congratulations Thanks, in top great. wanted a that that quarter. nice Oh, How question during for guys this taking quarter Thank the deals to quarter? here. CDMS? on segment fare CTMS,

Peter Gassner

we're looking I more more along, are more we a is know, oncology go really doing more bit as flexible, customers. more trials like as had you we're going doing adaptive, to that's those we complex, us. continues CDMS. well little are CDMS, We also -- to Yes, be need continue something [indiscernible] continue some for mean, to clinical to to they're trials, add why which some you

perform quarter, CTMS. also And the then every So at enterprise we well. expanding ETMF, with our looking more are and And progress in like the continue products established to to like of trials, some adding more customers make progress making also. continues areas

part important of really of that's digital And believe are clinical then for vision our going. where So that. and proud trials, of course, really in clinical customers foundations is the

Brad Sills

may, lot runway seen regulatory Vault of base that the update years. the the business Great has that's if well installed to into the that In is cross-sell launched upsell traction earliest been an base? just from on I to here? what's a and you'd over the other and How that, hear. penetrated And then that words, also,

Paul Shawah

right. about and whole regulatory, it you're earlier it's of in Yes, of think It the is the also regulatory. still left of runway ones was a lot a like other still areas. -- one there's suite products And

ability and submissions, publish archive registrations. and So have submissions and we the to

number submissions, a customers is with started publishing. So it's they're you're really and One two where seeing dynamic of who have may and dynamics. registrations expanding products

buy we additional existing with kind Peter also comments So all regulatory to enterprise saw our first had we're customers that of you're then go seeing expansion apps. And seeing scripted on from suite. the you in

playing So left those runway are dynamics two certainly out, of there. lot and a

Brad Sills

Great to Thanks, Paul. hear.

Peter Gassner

And QX would of of half Brad, lot start I of frankly, this the in color clinical say little good second and in And management. data of we've a more QX seen here. momentum end year, a the the QX,

reflect been, pride that's I a think I spot. as real

that's Now, calendar long a particularly with away, right or averse into runway, progress year. that large in so this this close risk doesn't because a but enterprises real bright spot, area CDMS turn that's orders deals our far, has in

Brad Sills

Thanks, Peter. Excellent.

Operator

at hand further time. management are over closing questions remarks. no for the now There the it this to I'll

Peter Gassner

everyone success. you, you. team and joining for for their call. Veeva Thank for today's Thank customer right. All our to the I'd to partnership commitment like continued their customers thank

Operator

today's concludes call. conference This

disconnect. You may now

Veeva Systems (VEEV) 2 Dec 212022 Q3 Earnings call transcript