Veeva Systems (VEEV) 2 Dec 222023 Q3 Earnings call transcript

Company Profile

Participants

Ato Garrett	SD, IR
Peter Gassner	CEO
Paul Shawah	EVP, Commercial Strategy
Brent Bowman	CFO
Ken Wong	Oppenheimer
Brian Peterson	Raymond James
Dylan Becker	William Blair
Anne Samuel	JP Morgan
Craig Hettenbach	Morgan Stanley
Gabriela Borges	Goldman Sachs
Joe Vruwink	Baird
Ryan MacDonald	Needham & Company
Tyler Radke	Citi
Stephanie Davis	SVB Securities
Brent Bracelin	Piper Sandler
Rishi Jaluria	RBC Capital Markets
Jack Wallace	Guggenheim Securities
Brad Sills	Bank of America
Saket Kalia	Barclays

Call transcript

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Operator

Good afternoon. My name is Emma, and I will be your conference operator today. At this time, I would like to welcome everyone to the Veeva Systems Fiscal 2023 Third Quarter Results Conference Call. [Operator Instructions] Ato Garrett, Senior Director of Investor Relations.

You may begin your conference.

Ato Garrett

to for Fiscal XX, the welcome Earnings Third XXXX. and Call Conference quarter afternoon, Veeva XXXX Systems Quarter Good ended October

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

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

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

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

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

Peter Gassner

was call. the Non-GAAP and QX, revenue macro was we welcome of $XXX XX% income total everyone or of Total results continue Ato, ahead guidance. you, well. the We million, million. to our was to delivering quarter difficult strong Despite year-over-year, had Thank revenue. environment, XX% $XXX operating and $XXX the up a to XX% in execute up million subscription revenue

innovation increasing. strategic Our and engine strong our with partnerships industry is the are

We also in significant and quarter wins. very clinical had record a hiring quarter with some strong a

time. At open We also we announced moving application This questions. allow up Veeva we'll Veeva that to a and us this call to over point, Vault the to experience. CRM customer better are the better your deliver platform will a

Operator

[Operator Instructions] Your first from question the Wong line Ken Oppenheimer. today comes of with

Ken Wong

wanted straight And Peter, to, guess, to into Vault the with I just dive CRM. I move

in also transition? just got Brent. your on And toes that contract down hurdles think when guys a what Salesforce in would like, and these the our definitely some what then some slow noncompete And You might 'XX potential 'XX. that take are about keeping follow-up quarters. a migration end looks on with that for we 'XX. last clarity, period I path just then be grace through maybe would us the for few ending love Does

Peter Gassner

is until Yes, Ken, contract it the XXXX. goes

XXXX. a XXXX, and there. competing we're in to goes starts period market contract. where not that in wind customers That's then And the existing according that's the So for there's that together to down

business and the Veeva it's There's with are about change supported until XXXX. nothing today could usual. customers So as CRM

time. will then moving so, of some have to have Vault the and migrate We They adopters, CRM in CRM mainly well plenty we'll or and XXXX the early that's expect when time. on on majority be adopters customers early over XXXX, selling

how think Ken. of basic to the it, that's So about

Ken Wong

Brent, then, on numbers. And the just quickly Fantastic. Okay.

to just or perhaps some the R&D in the or in due of FX, or remarks impact billing prepared reduction dynamics macro? some terms subscription out you clinical the that the is there called slight are In primarily subscription, from that

Brent Bowman

R&D Yes. X seeing basis. a Overall, the of well with yes, little bit happy things. for reduction FX at a The of on is as Solutions little we're bit One combination incremental of growing deal about you're adjusted is a FX full as year XX%, timing.

X the little things, So drove a reduction. what bit of

Operator

with of question the next line from Your comes Peterson Brian Raymond James.

Brian Peterson

fees a getting there from that offsetting guys sales force a questions save? some agreement. impact that? would perspective, that from to kind lot new be you use the of number And it annualize of financial to So and you would Or investors potential disclosed guys accrued the on payable right is that on we're to cost

Brent Bowman

of If We're to still out significant our be anticipate We impact. this ahead XXXX year our material to targets. new to you don't tracking to going largely be We announcement. a don't platform. real the of there We're also power look investments a resources there our Vault inclusive and any required. internal about expect leverage

Yes, time there. payable. is a there that's XXXX, out accounts Beyond long some

in You number. That's quarterly our can see a financials. monthly

you So use a estimate. as that can ballpark

Brian Peterson

maybe a follow-up. And just

volatility throughout sounded quarter cycles. were some there like be quarter? seen curious I'd strong really the any get color there. just in would You results, to how It some last we've mentioned love clinical that sales but that progressed

Brent Bowman

Yes.

happy did talked momentum. really QX in we about with close in Those the So QX. deals few

pleased very that. about So we're

similar different not to from ago, a that we days of scrutiny kind worse. said not what basically but seen days better, XX saw that. we XX ago, overall, bit perspective, little a So significantly additional nothing than of And macro we've that's

Operator

Your line comes the Blair. question from Dylan Becker of with William next

Dylan Becker

the from of a per EDC. of have introduced have a cube EDC. of workflows data Maybe expand just entirely lot Peter, complexity capabilities. an management I to not perspective, piece you're guys clinical of beyond that but just can the those, areas guys and number -- of thinking you opportunity I know talking functional new how process sources I time unlocking some stakeholders in to you almost set existing give around addressing and a and right, putting proverbial about an us think you there, but spend sense you a think here, highlighted logged together Rubik's the and strength the about We

Peter Gassner

Yes.

there So in patient-reported data two the are EDC. quarter. at applications our we are that randomization and the in Two a significant selected management core clinical and product. very out it's the our out of top RTSM, right then heart more the management, CDB the very, wins application bought are that That's XXs very those have trial bringing supply that clinical, and outcomes,

up clinical in companies, of that's there very getting good us sign to in clinical we we many then, clinical research many, -- broader these eTMF future this So we and there's look read data you of come. make for sites, good you’re in And at to clinical as connect. management. in that's we a can on of things large very And us right, when connect things operations, us at sign as with applications that’s a come top getting early EDC the into

clinical, we're very management So days in clinical super of very, the the especially clinical, area. data I'm about early excited

Dylan Becker

think here allocation growth investment? at helpful. but that down Obviously, of perspective, kind maybe of that and about about headcount That's more a it. should the I guess a XXXX should Got we to prior look road we and And XXXX how any hiring year. how hiring pace of than of then lot obviously any it, prior or framework, initiatives period kind the from here? as added kind thinking already a be further new resource of we

Peter Gassner

start-up and the environment. Yes, it's values is can idea where work, great quality aligned penny for to shiny crazy companies hiring a feel looking so stable work. companies, shiny best anymore. People do they are the great the not doing of their

So see product you're anything environment. We'll sales, dramatic it's going a to invest great of across business: all from Veeva. hiring the and services not really specialty but areas

we if You'll We the see that focus under quality come hopefully, hiring hiring. grade we this come we targets. continues, -- really under anymore. go often the environment on measured won't And our hiring pace in in our targets We've at.

we So for Veeva indicator people. a hire that. great leading of I'm really pleased can about when That's

Operator

the JP Your next Samuel question Anne comes from Morgan. of with line

Anne Samuel

little the I behind to bit speak CRM. you moving rationale away was maybe the from hoping a MedTech could

positively You the Investor spoke fairly Day. at to

So just shifted? what wondering maybe

Peter Gassner

Peter. foundation. MedTech common Ann, CRM the and a CRM, share is they Yes, this Pharma

those together. You have things to do

So existing since with We first, yes, that really platform. CRM that MedTech take the may get our needed CRM but are And these the Pharma had customers, CRM care tightly prioritize later, of the come Vault to to sequence we moving base prioritize then, interrelated. need set up. to applications

Anne Samuel

of held on makes you a really to nice quarter. third And then That guidance. had in you the income the lot the full outperformance on line year operating of lot a sense. just

should in be shift is I of expenses there just that wondering, So or XQ any about? thinking we was anything incremental there

Brent Bowman

Yes.

of Service items. that? a our Services as is with always the benefits factor lower seasonally as payroll it's well and quarter. QX, margin reset the type operating tax is Why kind on holidays always utilization Regarding

seasonal see. a for big So reduction will invest but we're continuing unusual. long-term Those nothing factors, the are that's else two growth. to And you then

Operator

Your next Morgan the of Stanley. Hettenbach question Craig with from comes line

Craig Hettenbach

of some of you're of from sense the of Any commentary. a and macro quarter-to-quarter? on seeing that up terms kind following on any front what add-ons Just in number just tightening

Paul Shawah

Yes.

what of to last the quarters. over seen similar couple we've pretty are others The

significantly getting I not that expansions, a end highlighted worsening think little we or in particularly in space either. a lower June, were in the the not of back talking SMB we you not -- bit slowdown to improving fewer any

of a change there. much So really seen haven't

Craig Hettenbach

Got that's has then broader a market called of just out XX%. growing advertising is under And And pressure, it. been an area you Crossix clearly, on strength. relative question the about but

could to reaccelerate market you're market visibility what and when in of that that? start seeing again? maybe any Just that Any sense into

Peter Gassner

bit the overall, our as worse, Certainly, from ball would stay the far turn a crystal same in really that focus value have Yes. the don't the on get application. that. spend or or advertising around caution the of that is on increasing just I What project little when as a

license and and customers. CRM-related and increasing other multiyear revenue a our CRM enterprise baseline service agreements the customers more with moving for So with integration to increased of agreements, products provide stability -- products to functionality,

business. about really Crossix excited So the

I well. a it's think map, going we and have quite clear road

Operator

the Your Borges next question of Gabriela line with Sachs. Goldman comes from

Gabriela Borges

is do us could competitive they switch customer the CRM look CRM through more to that they from what risk to evaluate specifically, looks a Peter, like Vault? you a there when with with to transition? transition that Paul, products walk And for Salesforce

Peter Gassner

could content including the such e-mail as of the end think use we're able still like data that use we'll looks application, to applications we'll and about customers their it that their multichannel on front-end same you will as moving across, when be developed, iPad. the the platform, they've and And migration the all customization tools back the the have really templates. back-end So bring

competitive it's customer develop will have and or We'll lot your to whether to ride, in relationships, tooling. So of a you're innovation. add to you out like. value And and continue a platforms of right? only that's things integrations to what look that. moving market, it have The mind continue competitive there, terms like always customer It's will not,

I a any kind see we're is We're So different don't And not not really We're rewriting introducing paradigm. there. the the it. CRM. application main anything thing replatforming of new

of of Veeva the So is Veeva and on The majority for Vault a very the our I customers migrate time. most Veeva feel have is majority platform. other the over Veeva's Veeva guess Vault thing will mature of on them of is revenue vast application. their the comfortable customers platform where that I the bulk that's application, the that And Vault business actually is

landscape. a is So I this think customers, positive their that overall simplifies for

Gabriela Borges

is follow-up full swing I at talked believe into customers hitting your about quarter, second Paul. planning half. The the budget you last for

just there the to into is willingness to cross-sell and pricing And on here, budgets your specifically, invest? because response update budget Is perhaps ability what any fixed? you commercial hearing looking an negative for on impact XXXX So increases? are the to

Paul Shawah

change significant No the on Yes. side. budget

haven't pressures. changes, any have it's not seen there. really industry, of as the and process, pricing you about -- the these haven't When large through gone timing customers think that we susceptible they're we macroeconomic not enterprise, and particularly in any Our change some seen to

by being seen And question, customers. large, of any around we and seamless had the second -- inflation built have we've that been reason with it is trusted has You history pretty a we that the which really increase had. partner. a haven't And a was our long

license haven't had historically We any increases. pricing

know hasn't an And our So environment. large, issue. customers it and a different is been by this

Operator

Vruwink next Joe of question with the from Baird. Your line comes

Joe Vruwink

are Just sense. conversation. In between now think acknowledged made customer the that separate I a the about conversations orgs. for past, R&D commercial some shareholder staying CRM the letter comments Yet makes on common you've distinct and platform typically how both and

Veeva is approaching uniting new will seeing differently, customers differently benefit procurement the are about offerings? wondering, I'm So thinking you product or two opportunities by that

Peter Gassner

Joe. look application their do our they Vault they may yes, -- platform. a create excellence and easier Vault for platform, I would applications synergies there, are So Or more say, area. excellence, audit the efficient applications, get no in with the primarily, And it's more might that Veeva of operations. just Vault to they behavior, the thing as concerned customers change and Veeva of customer in But they type in center be synergies of on for auditing

that there. do see connectivity applications, and and see And Veeva we I commercial, R&D we So then between commercial, drive there. that. clinical, between opportunity between will And specifically, think the the help that's medical something

there connectivity, that the innovation I But there. market there. I asking great connectivity And for are will way we'll the mainly, customers that. be think Some really to haven't and bring had create for think leading solutions that you and going we're

Joe Vruwink

That's and guidance. outlook the like new specifically the on billings, I question guidance the And last something the Vault is Okay. then influencing that's XQ -- numbers now the and great. Brent, timing think quarter is $XXX on implied million, one the that deal just $XXX just million. I have

So and impact quarterly annual an the we're one and kind in the number of at other? impact looking

Brent Bowman

There Yes. quarterization. you're mean of part right. I it, Joe, is always some

So that's just benefited basis. about year otherwise always would in look kind at build QX. full it say I likely on why million. QX more $X that of billers annual have a we

timing little of those of it's So billers. the bit But annual part just that's in renewals equation. of a

business. happy with the very mentioned, We're around space space. momentum, EDC the So the very, the in fundamental Peter to nothing as there's clinical

So really underlying business momentum around concerns good no business billings. and the

Operator

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

Ryan MacDonald

for Peter. one first Maybe

Summit, curious, remarks customer about the or at the Vault the seeing of about be of now. in spoke you having of the given would in of sort Safety prepared pipeline just I live and you're that that event You increased development what sort R&D first talked impact here? the conversations off terms of customer go-live milestone

Peter Gassner

has have that's somebody guess Excellent It's medicine they or think have a we safety and they bad et a I reaction there. be of to and to a around question to adverse called processing what's where either routed reaction classified case bad events, world. applications. have takes back, they step recorded very a complex application health then authorities, a and cetera, and the

application. do application. one code That company very to cloud-native that and like all complex just as We're So first it's do it. a run a really else, we means the able everything the there's version customers of

breakthrough. a that's So

customers have upgrade Our on-premise they used are to of to issues. lots applications,

that Now customers. of this the XX, live. top is customer one top This larger XX the is

that's now? of wouldn't for next years Now that from are is it. really And go all years customers years now, mainly the X thinking, there's the X but the say from then I So that, And think, Veeva now, Is probably from with it I proof works. safety. will it is X I way, when, question year? significance

satisfied would And always other the and would speed that our Now it work's side. safety days, better. I'd of that, better get and a implementation about have just customers happened, the Veeva. industry have of exact was has for to significant never that it be I the time course, thing the milestone, application It numbers But the the also never with have, most half and won't I'll done. expected was we very for that quote probably add, taken. better

was by industry. noticed also So that the seriously

Ryan MacDonald

a color. implementation and That's impressive pretty helpful lifetime. time That's go

Peter Gassner

enthused I'm that? you about Can tell that

Ryan MacDonald

I'm strategy the But bit. here. partnership type change? Just to to discussions, here how be the relationship around Maybe relationship strategic important how strategic in curious of strategic was your sort guided have there. long-term it unified within strategic of And I'd this the on second Merck that everything this that, Merck like platform a much CRM relates question decision-making and being to sort curious, of XX-year a relationship the sort a or in CRM a my bit, involved, there? of just is of

Peter Gassner

and of I on together, model terms model, that there level done a years model only about governance patterns how over We're see the a orientation, -- of get in. we customer when the based we won't say generally, any that operating a and talking many put at we're orientation of nature, not really it's into how we then operate there. platform strategic it's Merck. In the in Merck, on talking would repeated of specifically trust details that they I agreement success governance strategic partnership more

products at individual So a versus level be it platforms. would or higher

Operator

of Radke comes Your Citi. line with next Tyler question the from

Tyler Radke

of you large just customers, that just you ask those on give were a just of of some frame. November kind about in EDC on Is accounts. And the Could you opportunity contracts main the displacements believe time sense to of -- that? in kind of incumbent signed of that -- Wanted a bit some little kind these I in the those market? color talked the the Vault and you give size us

Peter Gassner

these XX yes, EDC -- have leaders an to be were need Yes, of one top wins the people displacing because customers. with they application. do And were they market

but market in say the one both terms we're I in deal than won't of top sizes, of our larger And then other of so And the EDC X leaders displacing applications. Veeva. is in there that cases, one area, specifically

these would So be are certainly our deals. one of deals. larger largest some -- They're it of our

application, years you by ramp will by the these start study EDC over because study Now multiple with study.

So but very that's actually, long-term revenue goes. way it's our applications, a slowly, slower the of most the than ramps a for approach, commitment that

with EDC faster than -- So right now, have progressing I thought. our are we would

we bullish I been start wouldn't today we me asked -- have as 'XX have with what's actually as are in probably would be of where you would happened. the in XXXX, If EDC,

our is -- the So be is extremely also to success customer clinical the management. of data there it's focus the going because on part the first EDC

really on. and customers. it, So focused with be our the going we're laser-focused that's these happy feedback on through product be to We're large that's improving outstanding and having implementations we're just of

all do to get great success, do, have got a there, a lot We services. but of time. Customer It's things work better to to we right? and staffing the

Tyler Radke

give on it expecting great you’re the there. when of in Compass, comments made start plan? us to we that ramp numbers. of And some relative optimize kind that, an to that’s the to you update around that you like revenue turning approach on to tracking Yes, hear. just when maybe sounded And continuing how timing to see that’s Could the and

Peter Gassner

At Yes. a Compass, that’s That’s certainly a marathon. market. tough

business a questionable make have there very entrenched You it hard. has some practices player that that

with happy a product, We’re count adopters. and the on smallish early our of customers. progress of go have the specific won’t set into we I

As next generate start low. really to to we confident It’s long-term momentum It’s in be when in our position year. a going not it’s revenue, to be to the in play. I’m very the that market That’s and have for marathon, our product to competition. going great and one tuned But stay milestones. about is to strategy. the I’m a milestones. be thing you market just the needs that confident going

You when we’ll don’t get actually but know here. you know they they’re coming, when let

Operator

Your the of question SVB Davis next with line Stephanie Securities. comes from

Stephanie Davis

off out about as we've the already Is but effectively you of moving platform? built hiring this you've beaten the thought that tech to through it. add should this like as of risk already WIP the med Or engineers? think on had entrants know off built of I you platform associated Salesforce we've we Vault us Is the walk have? this been I'd Could I platform, it. this to death when resources

Peter Gassner

main build know that We're Stephanie, we on we're when one. Vault, that. thing efficient. that applications take highly on efficient I'll to Yes. The highly is

work lot that So gone has platform. into there's the of a

then really we So incremental we're of application. using back And of see porting parts much the don't over the end. just the CRM investment. material We're

We're client for It example, into types application So going that to we for robust rewrite at of has a CRM. not it. have iPad very all. all functionality Veeva

the application to So material that's is it's Vault platform. in Veeva, leverage the code rest it's and footprint, template then and existing the investment not -- we get why of the the leverage, because just from the both of

Stephanie Davis

way and there you Asking as your approach either taking same or different kind CRM this you look a are platform the new offering? and of the in the switched perspective, in X improve a any opportunities from are feel platform? bringing Or the experience to an platforms more in origin move user to you of

Peter Gassner

going Yes. to Excellent the question. In we're back re-platform general, end.

at that So going experience to we're or time. things change the up user not do dramatic

Now road an have really that, for we've been been map we -- executing CRM on. that's having said existing

features That's have Connect of a needs because for starting new into we CRM. going sales just our get thing So engaged, now. reps. continue Vault allows and That's have new engage engage between that adopted that to a functionality customers compliant messaging example, that compliance lot to doctors right oversight. that's

So functionality and I end re-platforming going on going keeps reinvigorating would front the of it on. the just a that that back will the as for end continue think been and and That's while, on.

Operator

Your Sandler. next Bracelin question with line Brent comes from of the Piper

Brent Bracelin

cycles. I'd of through view your industry seeing what vendors. the growth software around pretty of get little investors pharma you've economic We're in aspect MedTech largest a few is unique the appreciate. Peter, a profiles material don't maybe cloud that obviously a be slowdown curious some of lived to

you products? serve, that growth? maps Is to you it that execute they're Is market allow to I the levers tied vendors. that of trusted and parts partner a what it to strong relationship? really expand road mean durable multiyear having to maybe fact these underappreciated are of so continue it just And is it's the sustain large, kind going

think trying vendors in space of the some from and seeing picture slowdown bit here different other cloud the your to in Just a through perhaps a we're of lens?

Peter Gassner

a seen same lifetime. and 'XXs the this I going the since war in this, I high interest last far rate one. early it's Europe this high 'XXs year and the start inflation up right? like unusual, and quite before, been in and that about rise haven't this the year haven't We early raise this think to my ways with will of into lot a There's Yes. or with seen fact

the the not would success unusual these in downturn feeling, This of factors customer of airlines part what in very makes resistant. Veeva like their said -- or critical insulator restaurants. record is recession is over we've but that So is the -- times. Having track like recession-proof, our in of cetera. when times Veeva's built favor, Also our hotels industry, and up time. I bad. a medicines, luxury are health not downtimes. that it's and need going say viewing are first, success up, that, the our care nature That tremendous items, health or et in things People medicine without good Medicine a industry that, care costs go customer

bad. I be a their last with So spending it private have systems to is smaller where the goes funding times bit in is They of type too And is would say record. the thing the much. are They much as conservative The are then products doesn't companies funding. they environment more little down, get expansions. mission-critical change Good segment if can't we that affected the of do.

need clinical trial your You management system.

Just like system don't need. your on financial of speculative maybe of focus on add need your you And system What that. of really system. not is That's the what piece may we the you on, and need technology top you or ERP you records. need

for have that favor we So us. in going

not maybe not maybe that's either. for in do And going bit, the when of our stability. best a actually things stable. think up lot things fast, things that's downturn a When best of all best the times operate relative for stability. are in when pretty We go We the things So favor Veeva for best Veeva. booming I

Operator

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

Rishi Jaluria

CRM things ask X I to to non-CRM balance out. question X and wanted question

want little actually to competitor Salesforce I obviously on explicitly, to time more How So avenues start in it's selling get side, to and verticalizing should that the goes I've themselves. follow-up. continues to solutions the So saturated vocal directly sciences, whether find the market bit XXXX. about growth software. maybe in over or trying more sales a away now life get They're right? been potential the out-of-the-box force deeper wanting for we non-compete about the And a obviously their away. a ask vertical into for CRM the to functionality got become then solution think actually has

Paul Shawah

Paul. Yes. Rishi, this is

the of yes, -- And way And think means the Salesforce, a is we with through a Salesforce's industry. So XXXX. agreement that our that first Salesforce. with through history goes the partnership for really XXXX, the the way great very to life preferred sciences about what -- are long partnership partner

So and how to between, now invest, to expect can't that then. all decides I focus don't certainly where Salesforce comment and to decide between change that. We on at they after

lot I to So know the it's continue super don't a transition and time for market innovate the It change here, to easy see make We're any and there. we very it of here. expect customers is the -- It's life space that industry. sciences space. takes regulated, specialized We get do highly leader to a right. a complex

only others not can on on what we and focus do. So our horse

Rishi Jaluria

was And What there you're adopting of Okay. That's business? from wondering to expand pushback the the what talked that, remarks, of has CROs part them? needs you out if making totally solution maybe I significant then, of that seeing for in prepared CDMS with you're any the on Peter, can And some so CDMS the become on been fair. you CROs that to about maybe side a to progress far? that happen

Peter Gassner

we just in CROs, interest CROs. get and Yes. the momentum continued

but going their vendors. They not measured are and they have hesitant, response. that their the be not somewhat in they're their up they're -- set existing policies procedures Now do hesitant, somewhat way to things with

and sponsors But causing efficient with seeing bit operate more is to sponsors the CROs what in little momentum change asking more asking about there. Veeva, is So the it's actually some slowly a Veeva. that then happens of about proof more Veeva

use The in gradual to tend I just change. the general, So technology. market-leading think slow a CROs, it's will

I think way and the on along that. come Veeva being to and its is market-leading technology CROs with will the

Operator

from Securities. Guggenheim next question Wallace with the line of Your Jack comes

Jack Wallace

the at Salesforce. One more on

re-platforming to in why about Vault. Just trying to now change of the think to kind make

Why pressures there I why because switch. platform think were and contract a going better and before I the maybe cost in-house. But the now? you the resigning? understand avoid why And last better the forward that inflationary reasons the savings not to wanted

Just change thinking about the timing around in the platforms.

Peter Gassner

Yes.

are customer In when strong, timing, The feeling the is terms always good make it's changes first, the application is strong. of good. things to

we years Vault So going. why very robust years make because versus ago, CDMS the about now, had ago. ago or platform maybe to done have change. also that time And wasn't enough years is you a you couldn't have at in platform very quite that's maybe the X Also, maybe if X out CDMS a and years stressing look X really have now. Vault ago, it good and safety X now Maybe it mature we safety mature going it

So wait? time too question. ready not I It's have heads its better timing. why time. And move, guess It early. Day, now Vault percentage clearly increasing. would better and is as is gives to from is that only I a been our bulk application. the of you the saw that's other of our customers experience that of is on platform right think why plenty We the up. plenty customer Vault it's platform, and application The have -- and now, own just a revenue Analyst can the

will and So our timing. it's to fold. customers. Veeva in the right bring It CRM It's just time for the better be

Jack Wallace

it you. like sounds R&D next helpful. is that's 'XX, probably ongoing the continue That's through year support you and one and will list, this migration. The And it. then, Brent, Got for

But about relative for thinking bit year 'XX a there, the say TFC the to to good cadence to odd with little the XX% revenue targets next context be of changes. that on about is Just that the year revenue 'XX is going targets. percentage still spend XX%, of thinking an the period? the of I a target

Brent Bowman

So remember, a XX%. about yes, going provide right as to tracking we're execution, not but year our guidance target. out targets happy the have a growing the mentioned, momentum Peter rate And we're And and that's now, there. XXXX we with future run at ahead.

execute ahead, broad we're we're pleased on that we year for a about So with have to track portfolio and against. the

Operator

Wong Oppenheimer. Ken with again from comes question next of line Your the

Ken Wong

right of my stuff in spinning Lots now. head

that how way that of of So a second, back year love maybe impact the impact And just is that would just when Brent should possibly CRM, fiscal potentially of in? Would What's hit out that kind pricing? called at on the impact Investor change? of any 'XX? one Day, at that like the about right on the start for could sense the then rolling should TFC you for on Vault this we the start thoughts think something to just

Paul Shawah

take on pricing. Ken, Yes, this question is the Paul. I'll

the all have stay pricing it So also the licensing same the and is that CRM. same think available way all to we add-ons the the will and with will of model about be Vault

for customers. changes pretty nothing easy It be really seamless and So our there. will

Brent Bowman

convenience, the then Ken. And termination on for

So think about -- you yes, other is And forward. the the there point QX of of how XX% that diminishing the should balance about $XX is the next million that, the And will going to of it's on of February be that business. one Solutions year. the an R&D with majority side vast And X kind we of expect balance the over is effective year. of have impact

going well. working customers with track. So and We're on it's we're

Operator

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

Brad Sills

the to wanted about ask hires. new I

this hires quarter. new XXX mentioned You

the where marketing, sales hires are where standpoint from R&D curious Just product you're and on a new focusing areas please? and versus

Peter Gassner

quarter. broad-based. believe right? account team I bit in our If our lower true, growth additions in at the think that a G&A. really partners, engineering, in there. support it's our team, product management, you It's I is Yes. account executives, is It's services our the look the where area It's net our was our the XXX

pretty there. We a efficient have model

and product-facing where growth customer-facing is it's people the is. So

Brad Sills

verticals, more, here talked whole be you approach? One that update a any Day kind about Analyst forward, of those still or at something just sciences is that going I and here, you've increasing on verticals? lot please. life very selling And focus could much the are Outside an not may, -- you reference if are where with early in

Peter Gassner

We're biotech. and where our doing the consumer is products the main That's portfolio have the our well pharma revenue. in Yes, product in is our where broadest. we That's bulk of focus area. the

the just customers, we noticed a a on I think I is passed milestone XXX sheet sort of which there.

grow to pretty model strong that there. customer and is reference continues it So

broader. product just that smaller It's MedTech is and is just the by MedTech as growing side. segment. And is R&D is product well footprint bigger our Our footprint in well, sciences for us

Operator

question comes [Operator next with Your Kalia Saket from Barclays. Instructions]

Saket Kalia

of pipeline, consolidation is, the at were question year. just start about you this deal. opportunities? clearly, those extent of call how is the how we apologies right? of of of types all-in questions guess to these I I the that I'll maybe those deals late, Can But joined that not some the Merck with it? were pipeline of I thinking types these way. about beginning the Veeva that, by all-in so you're like the fiscal deals. talk if asked. Merck, mean, talking But Congrats on one about of and It feels the

Peter Gassner

Yes, are tell can get partnership when imminent way of to as customers, we now, may They'll a really strategic get them have just was product none will or of And none formalize -- I'll those, level a of some our happen. They're over I with not to Merck deals achieved right the term. with one. that strategic long think none deal of Merck. more quite those those partnership. to but there's a time. happen -- structure there's but over the strategic of you happen those And that take may we partnerships but many partnership those those bundles. And they we it's of We shouldn't more agreements. that

everybody it Veeva, easier Merck's the going that makes to with an when it very is in so case, the So Veeva, pleasurable we're products, consume environment has product it to in we evaluate, change simpler go it and it to was do. for just need operate what efficient Veeva that that. idea say with to on we and make a made it work Veeva we make And and and purchase like

Saket Kalia

question been look the the I'll of of but death, anything CRM it. as platform, the with go or beat next the and understand with Got just have direct that about is switching but frame anything back joint thinking is is long, That the very time the just of sense. that change the I and customer sort will I one this, any it. is anything the there to will for I'm Maybe that anything course, whether makes end. curious understand -- feel Vault there the in with maybe Got there away? change way different to is Paul. with might platform. see will the Or IT question I here have

Paul Shawah

Yes.

to first IP pretty IP with regards the on , it's platform Veeva. the clear has, Salesforce application, where So there's one that in there's the what in and and that's

line So there's a there. pretty clear

of combined. think wouldn't kind of joint that's going it or as So anything away that's I about kind

of as change is keep migrate the in Part and our possible. to feel back the to strategy Regarding as front look end and just end similar

easier So much limit experience that a that our it for It the retraining. it. transition. is reason make do customers will our things using make industry working of will much why like for is The front-end There's to customers.

of that. So lot we're not a focused on changing

time give us a that, this changes an make and deliver opportunity better over does to Now said having application. some

And further keep So and term. common us it are familiar time, then innovate a of to in platform give balance. short on. the over it's We'll things will kind very that

Operator

queue. call no closing showing for remarks. the turn the questions I'll are management We in over Veeva more to back

Peter Gassner

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

Operator

conference This for call. Thank concludes today's you attending.

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