Veeva Systems (VEEV) 1 Sep 222023 Q2 Earnings call transcript

Company Profile

Participants

Ato Garrett	Senior Director, Investor Relations
Peter Gassner	Chief Executive Officer
Paul Shawah	Executive Vice President, Commercial Strategy
Brent Bowman	Chief Financial Officer
Kenneth Wong	Oppenheimer
Brad Sills	Bank of America
Rishi Jaluria	RBC Capital Markets
Saket Kalia	Barclays
Keith Weiss	Morgan Stanley
Gabriela Borges	Goldman Sachs
Dylan Becker	William Blair
Kirk Materne	Evercore ISI
Tyler Radke	Citi
Ryan MacDonald	Needham & Company
Jack Wallace	Guggenheim
Joe Vruwink	Baird
Brian Peterson	Raymond James

Call transcript

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Operator

Ladies and gentlemen, thank you for standing by and welcome to the Veeva Systems Fiscal 2023 Second Quarter Results Call. [Operator Instructions] Thank you. Ato Garrett, Senior Director of Investor Relations, you may begin your conference.

Ato Garrett

Good afternoon and welcome to Veeva’s fiscal 2023 second quarter earnings conference call for the quarter ended July 31, 2022.

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

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

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

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

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

Peter Gassner

and at had operating income revenue everyone QX was XX% operating to Thank of revenue $XXX guidance. $XXX XX% revenue solid to up you, a was income or Total our year-over-year XX%. Non-GAAP up with guidance million, $XXX Ato the million. call. was subscription ahead million welcome We and our and

the We the at about currency our gets to engine to to executed stronger in more and $X.XXX revenue each top well solutions our our to well was innovation continue have as billion relationships guidance solutions full factors. quarter. X.X% have we good, our down of $X.XXX year revised get billion macroeconomic better. Hiring end We offer working foreign is and by due from and customer

landscape competitive stronger. have strategy and product Our also never been

track revenue the We have into in in our planted runway continue cross for long billion to a ahead to XXXX $X and of growth seeds of goal well future.

We to the Session open will Question-and-Answer questions. call your up now

Operator

[Operator question Instructions] Your first Kenneth comes with Oppenheimer. Wong from

open. is line Your

Kenneth Wong

Brent. one could causes more on side it’s to love Is a pricing clinical realize in taking maybe industry? away, Peter questions. for the impact take for commercial it headcount the side perhaps attractive or that? get your less reductions it drug we remarks love investments prepared then but would on the Thanks see more that on while I a or and follow-up my is in to maybe less and would area, that looks mentioned got get where where the on opportunity pricing I have Fantastic. and for Peter, legislation your take just your you

Peter Gassner

Yes.

drug have part implemented of pricing, it’s the roughly part the life big gets it half X sciences, drugs about specific insurance. certainly to On that’s about U.S., has top do is of XXXX. to and the which perspective, it the And with Medicaid, with doesn’t this a do it not to private in it the and then put whole is it. U.S. first, but to And in of

Paul changes had steady So and There works how to as and to it’s you this question long-term. out it is out have short plays how In just it’s the goes. over for as no And too over we say see early long-term. well? the the she a medium-term, follow-up

Kenneth Wong

in stabilize? Brent. worsens for And a that what assuming when at thinking in sense exiting July? the then guidance, mentioned when I Brent, kind that or levels? the that for stays to Did about you guidance, headwinds look How wanted I current pipeline of at kind are you get look follow-up guess No, the I just of June. the did it

Brent Bowman

Yes.

So thanks, Ken.

in to June, that So at yes, macro see we in some similar plan the of of pace. July continued and started factors a

growing step a we take XX% revenue FX. are you If a normalizing revenue perspective, from guide for after back

the days. that. the about to over about XX related of unpack half last we reduction as to And if So FX the are is strengthen the reduction, happy continued pretty you dollar

overall the to relates half macro dynamics. other The

bit Specifically, commercial more. a impacting it’s

basis Crossix have users impacted impact add-on and bit from are CRM tightened have macro. priced we are the on by some But I enterprise to the impact really environment. macro on in SMB business agreement, want also that the been FX long-term of Commercial. really we And bit. We change per seen products the Vault a user, they What little out not priced the R&D the they to of in environment. customers point our and no the lower have change in seen specific unit competitive has as in budgets R&D advertising reflects not have – more a per Most so overall saw are or guidance

Kenneth Wong

for you Thank Perfect. the color. it. Got

Brent Bowman

Yes.

Operator

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

open. is Your line

Brad Sills

holding sounds looks of up-sell ask so Are it could say to lead and one please. another then to starting macro, taking bigger potentially to that deals? to is questions. small wins? What one lead particular, on just potentially I like quality, about start, quarter like wanted the much my Thanks the Great. and Maybe just XX they R&D this in saw out you deals some if strong you and the activity initial it add-on some could you stands macro. footprint road? the wins, for in quarter bigger this those it on of this quality Is would first wins will, for down despite the kind

Peter Gassner

area really quality the It’s customers. that take across in provide will those I Yes, one.

all is what’s picture, a on big good have years product So quality suite strategy picked common of a number happening products of ago platform. to a we

now and management. information training we QMS, QualityDocs, introduced LIM, have laboratory So

We have announced that.

company So really and a the then we we only just that as products. that executing. of And has account are good well have we integrated are suite coverage

product So be yes, be just to it can can starting a that’s – it at starts they customer customer that be established a or new biotech very thing that us happens might an small be it from need only beginning area the the quality in to and be lead customer into a going in are the they in then multiple going add quality quality and is that’s or and clinical first others. it one of quality areas could our and product regulatory areas to where

SMB, across goes would tech over I even So med it’s mix into segments, as enterprise, say three goes across well. it and pre-commercial all

Brad Sills

Thanks great. then Brent, Peter. one please. That’s for And if you I may,

not QX, Could on billings, macro, your you. sounds within haven’t commercial side. impacted it or assuming meaningful seen looks Just us for just like a guide that in then you deceleration. macro are pretty forward? growth, R&D what going kind X% just you it like unpack here And help of currency versus you the for Is the Thank you in assuming did there? guidance you are that as more

Brent Bowman

guiding talk believe But numbers have. in I we closer X%. XX% to can I that don’t QX. constant billings I a Yes. to the on we currency the recognize for are basis, are seeing in as of second we is things. the revenue the as been similar a has half the macro. really FX, reduction billings what the One two is factor that to well

dollar. the billings is predominantly to strengthening about And then to FX, again, related a On is related to again. third side, the balance the commercial

piece a Crossix number in ago talked uptick So, add-ons. second some lighter remains strong. the we of in user about the and R&D

the happy are changes. guiding FX billings adjusted and billing we the business XX% an for strength on So overall and with of term

Brad Sills

much, so Thanks Brent.

Brent Bowman

Yes, you. thank

Operator

next Capital Jaluria comes Rishi Your with question from Markets. RBC

Your open. is line

Rishi Jaluria

taking Wonderful. question. Thanks my much so for

in year. think longer above for the can just guidance I see to of because is better reaccelerate First, for subscription of XX%? and asking of takes to off at should be for scenario next seems kind we that the kind about growth And then understanding the of you or back in term be puts of back where follow-up. I guidance about or I billings overall it take Is not half wanted thinking how table know will we we now, next of way am quarter. potential the a provide of just the now. subscription it still half maybe face But idea the revenue, reacceleration? got some have by year guidance there right year, be to value the start the for a if reacceleration that right the I out the

Brent Bowman

Yes.

by challenged revenue underlying as it definitely had the acceleration prior macro. see we impact. the days and guide slight and we as on ago. has out FX, business We thought that been So called in the XX FX remains strong The expectation an

our It’s that So as is in ever. favor environment. at as unchanged the competitive strong

I about So way and it the also opportunity would ahead. about think think that

opportunities We about in Link still have then opportunity commercial, DevCloud. lot in we system are the broad early, if and days are well R&D as think like. for And and across a you as early the operating a Data we of Cloud

growth opportunities in of of us. front So lot

Rishi Jaluria

your see helpful. their business forward, the you little SMB called kind especially guess what the and help model how that? spending so much customers in – am maybe given is, And call is are you. prepared you a then of SMB in just maybe macro? can kind on how can the Thank I Okay, you this it. That’s your defining big just understand us some side. that how with how we you I going to you better would big got about of directionally, understand and Just headwinds to maybe think of remarks, out I wanted surprised

Brent Bowman

kind happy sure, step Yes, good Maybe to. take back. to a of

off, with And revenue the think being of CPMC. enterprise largest top Veeva’s and XX% know about our pharma XX represents pharma represent total we overall we I define first as pharma med enterprise revenue XX% the so companies. roughly and of tech customers or So balance

which wide of made total and balance this types. So pharma is range different of of the SMB, XX% is of customer roughly the is that up

billion XXX-person the startup way to $X small revenue. of have company We all

So small defining we of that. that’s percentage how a pre-commercial and is are it

Rishi Jaluria

Got it. That’s really helpful. Thank you.

Brent Bowman

bet. You

Operator

question Barclays. Kalia next from Your comes Saket with

is open. line Your

Saket Kalia

or complicated take sales Are year? while. adjustment things, very those all-in talk the Thanks a Veeva just with bit and deals maybe were about tie into how guys. start curious questions you, this cycles my for Okay, longer those the here. taking two all-in we Brent, if deals big the obviously assuming I quarters, very for great. know for and Veeva guide? playing just little those that lower to can sizes, Hey, can earlier In are just deals we a the billings you out

Brent Bowman

Yes, no, happy to.

seen have we what So deal increased scrutiny. is some

deals. of that’s a So on could that and impact sizes basis – deal-by-deal various

– And the into playing guide our large that’s we year. booked deal back for are a you think referring So, to QX. the I in

So additional anything than wouldn’t large other general say change is there scrutiny. deal significant yes, I in deals some

Saket Kalia

Maybe remind macro, it. us of for if business I in there bigger if just it. of That’s you follow-up are Got I a my you of more, little mean sort for helpful, was this and dig bit downtick what’s Got wondering Peter. into Crossix the sort offerings changed the the could will? kind what you, in

Peter Gassner

has Yes. it. different all related to a to Crossix few It’s advertising. parts

– is is patient of for and going programmatic, audiences. it which us audience us, your it can measurement, advertising buy you is some how Some are more of from

little we macro integrate Crossix to but X going at environment, to the say I cloud, forward. was bullish it we the together to is idea so data advertising can there ago, due real CRM the and bought that marketing. through it less about lot use And would out. people a bit industry really Crossix. But level, develop flows playing and Crossix bring the sales we are to offering. so of the So and a to Crossix also that’s details spend to macro years on When in help

it of and revenue where establishing in Therefore, of some take are So changes less pattern percentage agreement. a we measurement it and a customers new overall, we Crossix But type Crossix baseline a increasing these be variable out over a time. even a little to go offering forward. agreement, certain with play will enterprise our an we’re as while is broader done as making

Saket Kalia

Makes guys. sense. Thanks,

Peter Gassner

Thanks.

Operator

Keith next Stanley. comes question Morgan Your from with Weiss

Your line is open.

Keith Weiss

I and guidance taking you, more guys question. the one for one question. have Thank product question Excellent.

base impact. more have speed of the equation, income Data Cloud? with what big no does on sort that side take coming network sort a why confidence de-risked excess overall that $X.X by or I a maybe And down question for in talk side, to far have? On the could some getting garner product the isn’t little taken progress billion get go-forward us there $XX that away are Can right of cloud is existing down basis if of can to guidance conservative it’s been a that It’s the are down could necessary a through like enough? space billings the the I not basis. on to from is you on on about numbers could I like on And going was taking million dig into numbers taking the have So potentially down? data go-forward huge, be us friction effects investors it was mean, that they time that Brent, then to you I’ve faster a isn’t numbers been cut very progress get enough? they help And go-forward are a or forecast like you more give there Is confidence this just and slow us basis that wondering bit. the up hoping the

Brent Bowman

Yes.

let one, first Yes. take So Keith. that me

the of business today. give our our portfolio view consistent we – we products. So have you the information we best guidance of best And the have a to take philosophy, all with customers and broad

And pipes active we conversations And our pretty we at stages. have visibility various have with into customers. our so good

for. they a of have we pacing So are sense of the what looking

also So spend rates deal factored some in. we there we’ve And in and considered some factored current lower that are FX, SMBs. increased at. all We’ve the scrutiny is they in that

So that here. informed our was all guidance

Paul Shawah

around Keith, the your question take of I’ll cloud. part data second

first, that highest level, Compass. So Cloud Data just the defining Open Link, Data, at and is

me really We in number great really one while, a enterprise for been and quickly. as may state product, ago hit That’s key customer of the people you that let for think of is I each momentum, be Link. Data them our momentum reference around has to Open SMB. but referring grower. Compass, link announced data, years a that the

the product. four announced with first also of – they very getting early We they additional we’ve a that products getting excitement of Link in the with all lot created are because which momentum Link stages adopters, but are are early

And that’s launched we family prescriber. Compass that’s have is then Link area, referring So applications, that’s time, patient of be additional sales that Compass. data data, area. I And well. over is third doing in – will to is the may you driving really And remember, our think and which we what speed first

We’re on journey, is could finding the patients treat. they’ll really side. of That’s focused the they buy couple data and start wins for. those the a marathon they’ll on the the that patient what customer based cases defining four to there. a in We brand patient with will like for We’re use it a us, and really customer Think they doctors think a have Compass early about it patient data. well. cases. right? about with way for our had use It use data to brand maybe And patients, would more stages very progressing that understanding something treat be is how win It’s that

We have new then to other on brands customer we that those and success selling deliver products that, maybe brands, once will across areas. in additional team, expand products then And within company. in also that we to brand deliver

take There will time space. – It step-wise. accelerating is in we’re that of kind it’s see can you So for us.

of on about on focused how those. of can highly executing in all accelerate the and We’re think we’re further it. kind there, time about we things we And most

data All gives products the the what’s So each sense that execution. a are together. in feed going you all right? on well, and cloud with other, we connected of I It’s am happy but

we we right and execute continue we – are have we are So going the to strategy product think to there.

Keith Weiss

Outstanding. Thank you. helpful guys. Super

Operator

comes Your next from Borges Gabriela question Sachs. with Goldman

open. is line Your

Gabriela Borges

afternoon. does think COVID I headwind trajectory good commercial that on [indiscernible] Could that’s do piece of with Peter or you production seat-based CRM the about largest to for Brent. specific remind trajectory the love pricing. of been we based Hi, think returning consistent this? dynamic saying of production. help have of do than new going more the seats one that piece the we’re the I pretty core you’ve customers us, you forward? I’d in through How revisit the business, will know for

Brent Bowman

Yes.

is in the share. space, And number changed believe regarding XX% right time, But seen So take still expect commerce that haven’t we has to expand do that the to the less of so feel continue we business CRM over it. Veeva with our that view. as anything we add-on continue that of overall. to as We fact impact will good be footprint associated to our well share about the take ability as we

Gabriela Borges

about follow-up love in The CDMS. the customer trajectory on or know becomes the prepared Would or a the of driver you. in the as significant announced comments a a quarter there is XX detail, next the growth, there months is well. of material little A scenario get should perhaps XX in we either I next think where of in to more was more Thank and couple win remarks. that CDMS months? how

Peter Gassner

I’ll confidence. one. And the I with gives enterprise in – I me and that quarter. couple success The with a say, especially the of a customer that? some the the with we progress cycle have It’s why of take customers in the CDMS. the would enterprise momentum, segment. of enterprise happy the other large do say just really progression customers sales lot

digital The patient-reported area. as have time, ePRO, well. outcomes, trial Then which leads there core our we be is the purchased that are I Over There type other the area. to CDMS also and think in management the and thing. of randomization goal adjacent recently into products You in CDMS supply is success there. to leader that that right? Our trials, get will

things. of a adjacent lot there So is

So we happier one’s a That be Compass. we’re is and of That game. the marathon, like also. progress that with couldn’t one but one our ahead

would CDMS. most Compass say, different started, too that very race win I going It’s that so to race. for in just Pete’s think to getting call people Compass because early we’re

Gabriela Borges

Thanks for the comment.

Operator

Becker Blair. next with William Your comes from question Dylan

line is Your open.

Dylan Becker

Hi, guys. growing that heavily remarks obviously, guys that Maybe that’s Thanks first to are going the number necessarily platform. taking tonight. I in for customers of for It’s in was there the think vision unified prepared something embedded a Peter, with relative not But the question. something happen strategic discussion. to you for

maybe the can look map? progression some of how So those maybe And support option like? about can value What standardization future the earlier the over you that to some time? tools broader platform its of talk road of can you assign with that

Peter Gassner

Yes, good it’s a question.

products just we’re ago, we X So really each And painting more progress with lot fitting this I it, right, picture. saw years We ago, little, And we Cloud now getting together we and on doing Dev executing. just executing – where the that as now big year. a products are of very we’re years getting Commercial, big first, we’re a and well. started this nicely. made of we’re guess, picture, better, them X that

in have it Data in well. and consulting, leveraging good, commercial quite started in for years XXX our happy profitable stable, X CRM Cloud we new business actually So Crossix, areas. our it’s and customers going success content, ago. consulting We has people. which and and is is that and big business these we’re

really product long-term with R&D side environment this well, and the there the is quality and the we quarter us to macro I well. this is is helps commercial executed employees. time, right encouraged for seeing the customers our with during executing on on actually side, and flight a by because was because So just we’re what strategy and we’re

and they a I a that have and for And So the you all relationships. guys, crisis. one the the the Do the really happens. the and COVID and me So and people, ladder overspending And even through the you why in dot-com stay you it’s product planting the seeds get about you you these field war lot. – seen more just blueprint like now do more just boom right? dot-com COVID, more it’s of focused? working. right strategic because the they – excellent excellent we getting hires, plan, growth. and optimism about up it’s Can – see macro, saw YXK saw happened right? financial things governments, okay? that than you with by execution. saw all doing? products, that Can for etcetera. you to you’re execute got then you I’ve we hear future things, of more thing together have more bust. When the excellence to inflation, last correction, the that’s get I I in I’m feel those fit what the rehires, more relationship. Ukraine, a Those better, more I But

Dylan Becker

follow-up that could innovation on a new the we of announcements well if maybe to product kind of as in of consulting highlighted maybe And segment and value you lot too, a to certain the Yes. ongoing business of strategic a extent that point. number the

out maybe Now potential reliance capture. Veeva that’s of area maybe an well. point overall favorability seeing on market, incremental from growing you expand and we’re speaking decisioning to your develop And more that to of in to and guys in we the to as obviously, say, go capabilities value are to to to capture hey, long-term and these today what but on opportunity, but it kind more want drives of is develop of solutions, the that relative today, the you continue

Peter Gassner

a group, company, sales sure. the it’s a It’s don’t discussions of The I very picture consulting feedback about good. our complete don’t And with tight. for very our feeling and group how loop that’s business has Yes, that every being introduce our company Veeva, company world, change any I our I for leads one product But go-to-market group. with between our our about inside know really able you. in And mix that is and relationship tight know into this agree they to motion. – consulting can both products is products, also because we customers about their influence to but have kind strategic

Dylan Becker

guys. Thanks,

Operator

Your comes Evercore ISI. Materne Kirk from next question with

line is open. Your

Kirk Materne

chance might Peter Peter, start, just you much. second is macro One very for just curious a have bit. actually been to I sort Brent, moving at all. list to then haven’t yet. customers. one Brent, up assume Thanks commercial the your the in mentioned just is customers? know priority specifically just thing the it’s small you environment? of are referring of top customers, on a I your I of your smaller a of R&D reason Yes. environment normalized hard ask for funnel And in of about there anything side. kind products necessarily R&D they kind perhaps curious of was seen around But businesses help those for little the reprioritization more are on biotech more guess most seeing that. the I certain not that comments The a that and I I you was customers you just you’re be know versus a may guess, of some where might at any ago end if tougher I

just was could if I So Thanks. clarify you little bit? a that curious

Peter Gassner

Yes.

not sure, And nice that we I question of the selling Those have this staff get a are environment, guess, first there, it’s The products, nice-to-have the first don’t to be in right? downturn. products. for lot great

have real We ones. foundational

and down. advertising, good related the us. over you which it say things are up for The is required business can So Crossix that’s looking I long-term, modulate the would but

in okay, this not a when reassess nice-to-have is environment. want It’s products. building be really work here doesn’t susceptible is the cause have. the building to footprint what’s don’t little about to bit little nice in capabilities macro more going – you it’s have well bit, But a for to people That on. you product where in our these So long-term, hiccups

Kirk Materne

not follow-up That I that, I even imperative was They R&D the was wondering, become curious. product anywhere. in things was I are of but Just of more referring product an might going versus others. short-term are portfolio, portfolio, just be meaning, are But there all within that the to your foundational. your might on your actually case, none realize products I

Peter Gassner

and an excellent all really It’s because question. their are they Yes. foundational, in they No, not areas. are pretty

the to If safety, you. that’s you’re important in thing most

to clinical in data that’s you’re thing the important If most you. management the area,

is no any there or in So particular particular slowdown area. boost

Brent Bowman

of we describing and is Kirk, that of before that space then, see lower your But our that’s because exposure about that in very was more we some the spending a second talked And small. to relatively SMB SMB that definition wide did – lower in is question, I space. it SMBs, pre-commercial half really

Kirk Materne

Thank you.

Paul Shawah

reflecting I question, here. you your and answer was give Kirk, just on a bonus

products, than terms which – In temporary with the in of cycles run the more to the natural that just industry has do the longer it macro.

the example, just for So, a in – second some in natural in area. are and cycle. actually the in success And our we good it’s is that of the best just regulatory last industry, approaching the products function the end had year of the having enterprise progress have in that’s we regulatory customer replacement upper a of us

natural rather more So, it’s the rhythms the macro. than

Kirk Materne

all. you, Thank

Operator

Your comes from with Radke Tyler Citi. next question

Your line is open.

Tyler Radke

the guidance. R&D a your just wanted that to FX, you you notice quarter, question, did come you of for to ask just pipeline? slowdown didn’t we on question. Kirk’s Thanks your revenue of follow-up the that take year, guidance was and look the the started taking if in then for And of how I kind linearity I I it at Yes. in down terms up when the but presume the tracked guess also full slightly. some in

are deal delays, CDMS the portfolio be are portions R&D to guess of deal sizes where tend perhaps that larger. the there I certain So, seeing

understand Just any the and moving help there comments us pieces on linearity? you. Thank

Brent Bowman

Yes.

questions there there. So, a are few

of in to impact June. the started later on some part So, the see we linearity, of

from little a a we see to a lower additional scrutiny. in was deal SMBs the started and where bit So, that bit of headwinds of little spend

later quarter then to growth year the that typical bit closer year. then related more exclude a started we a on R&D, see XX% And So, of to of a June. basis, out FX if the – full started in it’s full little to on impact and you month the

the from momentum are very So, are the pleased in we space. R&D with we seeing what

they deal completely to immune not Now, are additional scrutiny. either

approval could on the So, a have inspection if large anything of not space. be deal, But there R&D that. additional levels significant in we it’s and seen

Tyler Radke

you. Great. Thank

Operator

Your Needham Ryan with & comes from Company. question MacDonald next

is open. line Your

Ryan MacDonald

Hi. Thanks for year-over-year in taking calendar budgets picked ‘XX remain year are the budgets the up some about on of my for question. some marketing. the that as Maybe sales of recently first, of static and thinking to commercial sort are a on business, for we basis checks starting side

you you does is impact, in that business? year, into how Just next the phenomenon beyond side commercial that are are you of a that half – if perhaps the something and as year back particularly thinking how Thanks. the And of this curious about seeing well?

Paul Shawah

Hey Ryan, up when specific you are that. seeing? phenomenon? you Can is this broke Paul. It you Yes. said What repeat of kind the just

Ryan MacDonald

Yes. look remaining are and we In marketing checks, on pick next to rather budget year. starting up year-over-year our that The static of at we budgets of heading planning sales are growing basis. into some as sort for a than

prolonging side updated business? Thanks. potentially we of you that does any of And – put so that? today, And context that about say are the the how does the guidance – – seeing in on of guidance what the the commercial of sort as to headwinds when two,

Paul Shawah

Got it.

like no, we their It’s Okay. Thanks hitting does be longer lot life talked that swing of a repeating is not that. indication planning of I impacted – most is most that have year. haven’t pharma Yes, are these what any companies. cycle, entering for we in lot conversations the those planning of those again, yet. cycle so full right And industry will a sciences of longer things, where about, Thanks Ryan. and kind kinds now, budget – of Peter seen next heard seeing are budgets just

that So, yet, time heard will tell. haven’t but we

Ryan MacDonald

quick a at the just churn maybe level? And at on spend commentary. of you this of SMB a Thanks. Are lack expansion clarifying is seeing question in the more or SMB SMB Thanks. any level, the

Paul Shawah

a mostly of It’s lack expansion. Yes.

users, add-on of app additional happens. of there add-on that the is level So, CRM of Chrome churn some users, always

You acquired companies as example. don’t get but see it, one

single business quarter. It It’s or That Brent they up It earlier. go common. had was out down. Our this quarter. very unusual more every natural. not what of go in That they very go is was happens referenced companies or

Ryan MacDonald

the for color. Thanks

Operator

with Your next from comes Wallace question Jack Guggenheim.

line open. Your is

Jack Wallace

hit got And different to use Hey. I them for realize just decision-making a got from here. geographic then maybe in where I particular, collectively follow-up. there others? taking angle. than the for the you. guidance question I any Are it pretty I more slowing question. Thanks we areas, a of have is the want two Eurozone hard

Brent Bowman

Yes.

worthy seeing particular geo from perspective. a calling additional not are of that exposure an it We specific anything was out in

Jack Wallace

leaving you not to as work then talent about private Got of you. particularly companies of potentially that thinking in talent, a may is attractive faster-growing be it. public multiple previously being be place a out of Thank the higher to good the as occasions there quarter, couple the and and Veeva in that private or called And markets. some smaller compression, some

a you closer thinking couple getting up at in Thanks. balance have the potentially pipeline deployment? about more billion of picked doing cash. we just got sheet, much? nearly Are $X capital your Looking deals Has M&A

Peter Gassner

will one. the year it is take Certainly, I was ago. now Yes. hiring than a that better environment

so valuations M&A are environment bit, a the terms a down, when attractive potential, of is and yes, little looking, are comes we but we always come more the M&A off and patient. In speculation it

on to a do. – of acquisitions. have track far, so We record That’s XXX% success our hard

exactly are a And looking. but are but are we find you might it. So, surgical, bit you looking, you and when when careful something, you don’t find we know

Jack Wallace

again. Thanks

Operator

Baird. question from next with comes Your Joe Vruwink

open. is Your line

Joe Vruwink

everyone. Hi Great. Hi.

performance. most the peel bit the to The $XX seems second Crossix rather that, to more imagine onion large it revenue revenue in to little does a that that change basis, And implies budget a of coming what that directionally correct? I just Just Is in that of half. Crossix If it the guidance, performance. million back specifically ad seeing? kind the is be to apply changes subscription of commercial of business lower on I speak extent

Brent Bowman

FX would there then related. other a the of Crossix bit little kind more called the And you If was can it is at you balance half – impact if and look be Crossix, then balance broadly. you between business more which a you to split the pronounced out, reduction, of the take

good observation think is I a one. So, your

Joe Vruwink

your kind don’t is resiliency, to history like stand we caught of industry, enterprise then operating out question to getting to kind business. those exclusively like have it’s ahead through on falling And expect XX% are of organic of up the asked it effects align in maybe a lag? a this what line ebbs of is that you and seem Great. and things events, your see I R&D seems But Okay. different with you would know potential commercial Is be based that in that times. the there in with data, that solutions macro specific changing. does couple be just this forging flows commercial there where those It or being areas the is and in

Brent Bowman

So, impact more is the where commercial user-based as I it’s consumption. more are we seeing you today think on the mentioned, side,

modulates bit in So, the a that more macro.

was pronounced so some year. and the Crossix, business, with of within we saw it more So, again, our in add-on

seen haven’t We it side. on R&D the

those the ELA-type over the less term deals. strategic – say type they would And On really impacted, be to time. longer business, I longer likely are are

Peter Gassner

it more. If would has case go we with it are being market down PromoMats, special to to like the that a are high the commercial where advertising. products with CRM, and add maturity our bit content, do up little going well, as very product look and can the Crossix the a I you at mature see that of that’s

the That’s where natural their new about the it quality live happy, environment to so just to mostly and products. competitive encompassing remember your are value That’s with to CDMS, we the and area the just than started, as just capturing in there the consulting capturing with that’s, cycle early then susceptible business more market has the of have do R&D getting not out adopters including macro. getting right. has data and there, are areas market. That do it’s growth these where You we other cloud, area, share, And these getting Link right? new then safety,

Joe Vruwink

very much. Thank you

Operator

[Operator Instructions] Your next question comes from Jessica Long with Raymond James.

Your line is open.

Brian Peterson

Hey. It’s Peterson. Brian

of just to end most disclosure about the the pronounced appreciate SMB that questions. wanted am some to investors lot nature. it the there, is I exposure you But pronounced earlier because business. commercial all on more the I I where SMB weakness there impact? think Brent, we are from SMB given larger is people are more pre-commercial seeing was think So, where that questions with the if had just the I follow-up a of maybe more actually on thought just a getting R&D focused,

to we if out. that just know split sure are to don’t is all and a on want I way I page clear there make same So, the there.

Brent Bowman

Hey Yes. No. Brian.

So, exposure the are on the lower it’s the end space. we side, the said on we of seeing as and more more commercial is before, SMB

cut and scrutiny we both on is are said But as pronounced seeing, that commercial I the across SMB, larger spending on the still more and lower as far Now, on increased side. before, like commercial deals that lower R&D. the end in

Brian Peterson

And any Okay, priced? methodology? just help is Crossix like terms of got you how maybe one last it. guys the just that clarification, on in Have disclosed

Peter Gassner

We don’t really disclose detailed level. at a that

spend will But Crossix in priced follow they of does differently. the products general. multiple are the in that general, amount have advertising We in customer

you that’s the should that. think So, about way

Brian Peterson

Thank Understood. you.

Operator

to closing I would in to the There CEO, remarks. back for of call queue. Gassner further are turn like Peter End questions Q&A no

Peter Gassner

the for for the customers call continued outstanding for to joining Veeva quarter. your Alright. and Thank partnership you. everyone to your today team Thank our the you and thank in you work

Operator

today’s concludes conference call. This

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