Veeva Systems (VEEV) 31 May 232024 Q1 Earnings call transcript

Company Profile

Participants

Gunnar Hansen	Director of IR
Peter Gassner	CEO
Paul Shawah	EVP, Commercial Strategy
Brent Bowman	CFO
Joe Vruwink	Baird
Ken Wong	Oppenheimer & Company
Brian Peterson	Raymond James
Richard Poland	RBC Capital Markets
Dylan Becker	William Blair
Craig Hettenbach	Morgan Stanley
Hannah Rudoff	Piper Sandler
Jack Wallace	Guggenheim Securities
Jailendra Singh	Truist Securities
Saket Kalia	Barclays
Stephanie Davis	SVB Securities
Tyler Radke	Citi
Charles Rhyee	TD Cowen
Stanislav Berenshteyn	Wells Fargo Securities

Call transcript

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Operator

Hello, and welcome to the Veeva Systems' Fiscal 2024 First Quarter Results Conference Call. [Operator Instructions]

I will now turn the conference over to Gunnar Hansen, Director of Investor Relations. Please go ahead.

Gunnar Hansen

Good afternoon, and welcome to Veeva's fiscal 2024 first quarter earnings conference call for the quarter ended April 30, 2023.

posted X:XX on p.m. we website Investor reminder, after just a prepared Veeva's remarks Relations As Pacific today. you to our read hope them We have before call. had a chance

Q&A. Q&A Today's me Shawah, Financial EVP, Brent Chief primarily Officer. be and call Paul for Strategy; our will Executive Officer; today Peter are Bowman, for Commercial Gassner, our used With Chief

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

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

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

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

the joining to us, that, over With call Peter. you and I'll for turn thank

Peter Gassner

welcome, the call. you, Gunnar, everyone, to Thank and

track, The guidance of execution In at start quarter environment compelling a delivering on We strong macroeconomic and of another CRM demo at to with was across million. $XXX the Vault of Commercial. Summit. Commercial, R&D year, had revenue development and we stable was coming gave a it in total is ahead results great and

early We our expect have to first CRM live on next year. Vault customers

announced CRM TRM. Compass products also our two for Vault AI in application, We data new first Bot

Development We areas. Cloud across also momentum continued saw in all

Our of a and ahead. R&D clear we runway long in product and Commercial have growth and compelling, strategies are

we'll call to your point, up open this At the questions.

Operator

first from line of [Operator Instructions] Your the ahead. Joe Baird. Vruwink comes question of go Please

Joe Vruwink

a everyone. hi, maybe CRM. inform ago. great. Curious to starting Hi, out customers into just any thinking hear help and like maybe or about key partners off, you're few saw messages the And introducing feedback to how of or Summit the change, start on what Commercial summit the Maybe and XXXX. didn't Vault they out from product liked that of and weeks XXXX

Paul Shawah

Hi is question. Joe, Paul. the this Thanks for

We our of great. great CRM. a of It demoed showcase excitement. had to audience broad X,XXX was We nearly It first was Summit a people So was generated event. there. and Vault lot a

there couple of that say a were was excited our about. I'd customers specific things

First past in is get of over going the the delivered functionality that everything we've years. to the Veeva full XX they're idea CRM

that into Vault CRM. of forward All plays

is they'll customers go -- invested have advantage they've our everything get they backwards. means So in what never for that of. to the They

So customers. our value really full a prop functionality was big for

need sales CRM the Center, announcements access have. also functionality, for like These that number is to things people which hybrid big need is say and calls access would the we but that inside handling reps. Veeva inbound to they I two Service and cases. are reps core

CRM application, excited but be part this is also of is going one So they're all super which Bot, exciting. to that

application part It's saw be CRM. of is going that building. You about to Peter's be generative to first some remarks going Vault and this of AI, the we're

So excitement. of generated that a lot

industry maybe guess taking move we're the approach thing helping to the I was CRM. the third then to And Vault

helping customers their about model, data the configuration. we're They're make to same move same transition. how help So excited their them going data, application,

So positive of CRM. in positive really a Vault our direction on feedback events, lot overall, really

Joe Vruwink

things biotech seems now all do meeting been kind outside execution? expectations. here And has same That's quarters dynamic Is pretty over Is It's time. like great. macro ultimately Veeva Okay. the Thanks Paul. that of it maybe the sitting opportunity? where it your comments? then just maybe your the I reconcile on two stretch delta here, guess, those just macro funding, on How few a maybe the of and Veeva's macro. you

Peter Gassner

Yes, one. industry and general, customers. operates This established especially on very long In that I'll the is large our take pretty Peter. cycles,

affect of the and are ups little a in These our really biotech. effect small customers, approved emerging more much. So We have don't macro don't call too what product. environment downs them an generally the bit do see we

So in when But funding we last -- we a there. that gets has changed the bit tight, see days really pressure little see nothing at a level. of macro XX

susceptible continues downs so just ups those business that's and move to guess I forward. to So small and we're not why

Joe Vruwink

Thank you.

Operator

Thank you.

comes Your of of Company. the Oppenheimer Please from next question & ahead. Ken go line Wong

Ken Wong

Brent. fantastic. is This question first Hi, for

about What zero? the how right big think mapping we about should balance wanted that? the spike that trajectory? drove a tailwind on until that? What's unbilled the AR, sheet going runs on saw be it And to a ask to Is up Just to cash just flow.

Brent Bowman

Yes.

of a couple things So there.

on million. by what we're the a On our decline, quarter. AR, But in strong that was year really right? in the line, with full for through. execution termination overall, was there playing of part So we've the there seeing a $XX you're the the OCF On number think pleased increased convenience I unbilled on basis,

So XX%. is we're about million, growing at which $XXX

quarter the year. for really about the and -- the execution the for I and outlook feel good for So

Ken Wong

it. Got

was of the the So kind of the any inclusion you to expected or play abnormal this TFCs? contract, it kind wasn't of removal it how with of -- out

Brent Bowman

correct. Absolutely

happen in for year we to know a intact. expected the happened from is put and what it just what to perspective, we happen, context, full still So we TFC complete QX in expect

So no surprises.

Ken Wong

Got it.

Operator

you. Thank

of from Brian next Please go Your comes Raymond James. ahead. of line Peterson question the

Brian Peterson

the for Hi, Thanks one for guys. Paul. Maybe just taking question.

would Summit to to are So of to be relative some on I far? the Vault. comment been to over was early remarks at actually understand on there -- CRM been expectations? expect customers how big so think in And to may migrate some some love there's that also Thanks Has the have customized you a Paul, debate any and is it implementations least a there of that I how the lift investors, How feedback live prepared guys. at trending on next your year. that from

Paul Shawah

done Yes, what customizations, of Veeva I close have of some other relatively done our standard standard adhered to delivers pretty the way more product have straightforward Yes. question. would larger in the it is some for companies kind Brian, so the thanks and think companies. particularly companies or configurations have about

-- CRM. and there's ways make So then different to move to Vault the

then is do to business migration. a sense, make that way as And another to just about So a think changing process, transition. technical in way one is process change they

level a process if taking to of is the going they've they're depend much just the they're complexity to do simple approach over, that to move customization change keep how going to things just or going on if they're move done, migration. So the of technical and but also

customers. are that is decisions for But to same, important what application the all So And their trying data made for customers. there. data to configuration it we make easy the simple. them, as design the make really for model to going keeping same, their we're we as try on lots doing our Keeping of some variables the moving moving possible of

move as of much a we're possible. as So automating

Now year. you're right, we be, customers did early Summit going will what next Likely those will talk as net be customers. potentially some live our about new as early

For a in like then that that XX example, I first move. go expect to live starting this would new would in SMB wins, likely quarter, we be would migrations that, announced XXXX. happen company it And

over Veeva to of customers with to who in in CRM XXXX still the Vault XXXX, on those So most are XXXX starting first the moving happening frame. CRM

Brian Peterson

Thanks Great. Paul.

Operator

RBC Your the Rishi next of go of Markets. ahead. from Please comes Capital question Jaluria line

Richard Poland

is Rishi. Thanks. Poland on Rich for Great. This

XXXX just the So first to question would XXXX frame. be time on

that that on a adding earlier functionality that's curve? the to guess, that kind that with center, help something I Just of, those the well think bit service platform could about into the being that happen curious specific like you're as should Is as we bots the of the platform? some little as migrations new something Vault

Paul Shawah

the you're will to be Yes, Vault specific platform. Those right. announcements

So service with Vault same will of be the CRM all part Vault CRM. will that of also center and be CRM the part be application

But Summit customers So and functionality for to I are can they over heard they're of And was the excited are new we've The be that additional get there of them deep customers the market-leading feedback to from excited on a application about that They move. that about tell you opportunities. the both based may time. may or get CRM. get full Veeva not promise those going innovation was promise. incentive

Richard Poland

that then On and now you. It kind Compass past the And incumbents kind Great. in across the ready just quarters. added follow-up. in know like data the -- of have two there. with you're of of take space seems personas new has I the, Thank that guess, come all to I on that some the a been of messaging

So that guess, about am time think I opportunity? starting attack the we about should to I how that really thinking And line, for right?

Peter Gassner

introduced regulated One of had our system. data a Commercial think suite streamlined, full in but the and right something Yes. data quality management that's suite products. and content compare domain, now, to management simplified and years it's to, we thing area, system, for you many it could a the That's of way about document the products area for different QualityDocs, we've

doing That's We a common model have data have structured Compass. all training. on unified QMS, we're for platform. management fits which and one It what on is data system, a we quality together

have the data anonymous patient the rows So patient in about which prescriptions, data, procedures, XX we billion of patient diagnoses. now, U.S. is

at level. January Compass is we're level and data Prescriber individual prescribers Compass and the prescribing the what prescribers' patterns, in projected products national also adding State and Now are and and about those the Zip Sales,

together data purposes. on very separate separate So different model. common They're one products, they all sit

suite So to talking you customers. about thing how to get better and have get all we to compelling. And to we'll look then have customer of corners, And will I Usually those the just and three for them happy, simple. other and the service. the customers It's win. them customers to is And find get have And that's have always think live at off better first message product January, have to it, time service competition. a do, will one that's this like the we products, products. have data best using in about what our talk them to best we of Compass get pretty there, round when

we've what done game. And product Vault some our so I just an strategy. to it's of about just It our in now it's to and comfortable down very so feels before, execution feel suites executing. similar

Operator

you. Thank

next Your Becker of go question comes Blair. the of William line Dylan from ahead. Please

Dylan Becker

Appreciate really, prepared for wanted in comments I and taking here. in job Hi, Peter, really nice Maybe, on guys. question the to two the hone remarks.

you models Compass machine and data these I clinical serving industry. holistic you that gives Bot, out First, through about the the about kind Again, specialized and point focal you're talked know have long-term highly AI wondering the unique of to view you learning as automate how AI a you the to thinking Commercial, rolled kind data utilize the optionality for the of there key but sets. processes. CRM

over evolution you're So about how capabilities the of AI wondering time? thinking the

Peter Gassner

system to AI core Yes. We -- relates we're because our I it record. a like as of position

So that's need. going something you're always to

that's be should the people needed I world of even of Core think will system records thing in understand. always AI. one that

If systems to hey, going financials. away. think Brent, me, operational your it I you'll do really making from same need now, manage need years processes. around tell customers regulatory, you clinical around Brent, ChatGPT financial drug you a I'm can't but it trials, joke the safety, right? there, to around quality me, around take have our I yes, He's system XX do their won't for ask one, a critical

to needed. be always So those going are

valuable. we're and Now leverage data building are and Those AI, proprietary will assets, our data those assets. assets, more able affected also but more not Link, by will data we also make those be building be assets Compass are and AI these assets to

think got get first. Bot I more develop three things. we'll We CRM right. We'll -- applications more time. So basically do over to the we'll that develop

data get also will proprietary will -- our more We valuable.

their third well is own fit the do AI we'll make our applications applications. customers thing have very And when proprietary

open they a of ecosystem, being it's Vault and to other especially develop other So in there really work applications part because an themselves, well it or they that's the that platform, make we'll lot vendors of with fit that's have do from AI Veeva. the how

customers, they in we're and intelligence an this plug ecosystem the own which their their We and own can partnerships. in for are broad platform

So do. very to really going we It's excited what is Veeva. AI I'm clear out about play how for need to

Dylan Becker

crystal But I the I another quality, Maybe innovation too, up their pairs That's comment appreciate I Veeva? dig opportunities bit. just been a how clear, like maps was the there. the want kind develop with one, little engine that deeper a Thank you, color off are around piggyback being of and think in with and maybe as look that business. able customers wonder, given and at a et the historical ever saying, which how the some scratch of maturation with larger plan I customers. now as too, here's of these the standardization surface of you've strong to is, today, of safety, cetera, kind is to relative record impressive guys. of again, that function to Veeva there track opening clinical now Compass the data, you the Maybe that those maybe hey, road and for on maybe this and increasingly

Peter Gassner

things. two Yes,

what, thing main since company, a very we're really, multiproduct that for, on something We've good multiproduct we've been the We've a XX company. getting been in is for -- being working that. XXXX-ish, been now. guess, I think years like at I business

XX than years more So now.

know there's it a economy, operating getting and in to how good are. people have model, products. it. We our know a into of And roles Veeva lot model manage that fit we're that operating and responsibilities lot of how at And what we in

Veeva, which great is processing. And down true people doubling can rare so X,XXX just we getting multiproduct better relatively at more we So being do parallel keep here. and a company, at

level. mean -- then that's, engine. And what by I our say, the innovation so I That's would macro

at others, have we are overseeing other who Veeva me, the who instance, than good innovation. For doing at now people are

relatively So we that have level rare. and of it's scale,

that than we've and faster, clear have that get really doubt Now have just of we relationships relationship, get benefit helps, you customer deeper the get you customers also, because you feedback. customer ever early you had, more the when

an And the making when innovation, we're third make often I thing integration also an products. our we say, would to is existing

integrated that's just have, doesn't at, look on another good our our into But you advantage a having clinical example, their safety own. that very if it's up So for the own. product on product, products, product its a promise an of they're starting company safety it if

So innovation I'm answer question, it is there, long-winded very but insightful an It's engine. something very proud our rare. of

Operator

Thank you.

the Morgan line question from next Please ahead. of Your of Craig go Stanley. comes Hettenbach

Craig Hettenbach

you. thank Yes,

that seeing impact kind following Just a in of the debate emerging front. exposure And last space some up context given kind to kind macro that's then to broadly, able year, more are what on on you provide the on commentary, think of to just of rough of just of biotech, terms in you you're about I funding. source talked the add SMB

Brent Bowman

take Craig. Yes. that. This Sure, is Brent. I'll

a mentioned exposure emerging So if revenue, biotech. in we it you the not -- have total think to X%. about Peter earlier, terms don't significant we're of about it's And as

comprised kind approved And about So of think employees that. with of about product. no can you X,XXX that's

So that kind the that context you gives of part business. some of of

And right? then Craig, question, want it make second sure I to your I get

Craig Hettenbach

of what some terms of you've kind to on recently. add on Just in seeing broadly the maybe macro, impact more just SMB been

Brent Bowman

Yes.

seen significant over last we days, So haven't the macro. the a XX really in change

factored So area. in all be but that continues into we're impacted, the we guide, and executing it -- to we that well

Craig Hettenbach

for resonating you just your of And a the CAGR, XX% that recently. target, just Sanofi a Peter, follow-up what's and the it. that? R&D quick what target in about the Got broadly, more means space how of feeling multiyear on are And then kind for announcement

Peter Gassner

that catch didn't I which Sorry, question about announcement.

Craig Hettenbach

The Sanofi announcement?

Peter Gassner

I Okay. know don't more of do a you are specifics one, Sanofi. the the we And of Paul, announcement. lot I in... that do know work with -- you

Paul Shawah

announcement to quality Sanofi quality where suite. Yes, the that... probably I referring you're Is think you're quality adopted our they've think management I documentation,

Craig Hettenbach

Yes.

Paul Shawah

a And innovation first and that what applications quality think excited we're think We've all, another about proposition a unified example saw. of there. seeing new of value in I And suite, I introduced you're good lot there, through. significant quality. what that So is of that's this Sanofi market. playing It's

streamline to and bot and processes, quality that. standardizing modernize do quality their trying on They're they're to

good So large sense example another to a of of modernize super exciting, in kind company the a all in quality process. of going manufacturing

Operator

you. Thank

Piper question of next ahead. Sandler. Your Please line Brent from comes Bracelin of the go

Hannah Rudoff

Brent for is Thanks This guys. on for Rudoff taking Hannah my Hi, today. question.

before are BGA a rather one first Just than you, of as a products time? adopting are full them three one your for at Paul. all there for just to adopting that guess customers I Compass suite waiting

Paul Shawah

have the announced data. way focused launched patient We we in and been we on -- this,

So to getting we're are exploring, customers testing they're more it's focused in finding them Most can Peter's view of They're doctors. more broader relatively They're actually get earlier, our a patients, finding quickly, they're into patient data. and started that, the data. better on market. they're that finding point

very we've focused So been that's the segment specific market that on.

We available sell it because to yet. hasn't haven't focused been the trying suite, full been on

say I part back, focused market So that that wouldn't really of are on we're companies holding not the yet. because

It from that be we'll given of of that we have that products, need a market. next everything broader full part we're having year, the fact by Now will far the January of away open a set not full up replacement. to

Hannah Rudoff

of second release? future Makes Brent. Bot any Okay. thinking one for products CRM monetization How then And are and your you then you, sense. AI the product about

Brent Bowman

we ensuring with the Yes, right working it's really early right product now. on We're our have customers. focused that

right our that's So now. focus

there. of we the have kind of about get of and we're sizing details front get and then right, product in we'll the more opportunity overall us. opportunity the excited on But the Let's the into

Operator

Thank you.

go line of Needham. of from MacDonald Please comes question the Ryan ahead. next Your

Unidentified Analyst

question. taking not for CRM to start the Bot. applications wanted is my announced clear new CRM some be I Vault of the you would center CRM, service with Shea will Matt but free, service the This the center be for if it's Thanks it you Ryan. and on announced guys the bought, and at Hi. I around it free. know

as lever you more monetizing additional you do a add generative you as a we So replatforming over time some on about tool Vault? as CRM the view plan per this you the Bot to the potentially AI revenue And so retention future? your in the of think CRM, increase account likely around do applications investments to as go or through or on other

Peter Gassner

Yes, I one. can take that

start Service So CRM. if included Veeva maybe type some like pure Veeva with they somebody we inside licenses use will result in thing Center, more over a that time, It that's in maybe probably of because rep, sales was that. CRM, didn't CRM

it's users. included may in it more license, the So mean but

CRM the included not will that's Bot license -- most product so by will user. be likely have will an that licensed that a

that yet. for be right Brent product new. mentioned, So don't the have that net and will as that getting on sizing we're or we for But focused pricing

Unidentified Analyst

helpful. has data when competing of thinking point your love it. but against those other with Link the platform, you of been That's broader vendors go-to-market Compass, or selling price to Has assets. the And around Just well? assets, some some strategic and your would anticipate on existing being and displace to competitive then service quality as data Got enough across get what the data integrations incumbents? do

Peter Gassner

for a while, is often specifically that's people, a real-time customer new had it's customers. we've for of key intelligence. which category This Link, Link With somewhat

sort either they that had did substandard in was a So it that area. they internally vendor or of

people, bringing the that with we accounts And we're market kind of asset the Link as suite, trials is for the you get and the that. on research kind and data creating continuing teaching we're then can it's and key then clinical So out a broaden for preclinical here's sites. out Link of value there, like

more of an So campaign. that's education

is that's data And a For that's has quite IQVIA. built replacement Compass, they've on hey, -- simple, major have save there of probably a that go up with modern are a moving that more primary it's reason IQVIA can there, fewer solution, some yes, time. would direct few where -- products, the more money over I that. that we set over the us. They don't But incumbent the there think And a parts.

the works more a complex delivery, medicines that but modern is one It'd data product for more better be replacement. that and better

Just And when dominant was a a from replacement was like parts. Pharma market was that originally, a CRM. that leader there replacement company started, SebelCRM the in that was job, Oracle

to is hard CRM better to that's It's for work, of Veeva Aviva. be better. going right? no out the execute No. IQVIA with that with have with happen. and type make Sebel and Make similar with We data thing Aviva. out, mistake, cloud, it's This a that to well is

Operator

you. Thank

ahead. of question Gabriela comes Borges Please go Sachs. of next from Goldman Your line the

Unidentified Analyst

last Hi. Can circumstances This visibility year into outlook? Can compares visibility circumstances to into Or is last could of how what to [Kelly just in too outlook kind that you quarter? through out under what walk exceed now provide Valenti] on you your that year? that for us -- turn And Gabriela. be you some 'XX fiscal now bullish? would

Brent Bowman

Yes.

for thanks question. So the

So we fiscal our looking year out guidance. reiterated at 'XX,

$X.X least There's get And the in change. least at and worse. income. There's situation It macro no no constant. at billion expecting So improvement. doesn't is $X we're operating current that billion

time. of So look our that's we out as kind in assumption

that's best right in large about a we early and So days business opportunities. the have we're look market opportunity, the now. We're excited the of

Unidentified Analyst

to seeing business to product roadmap early still And partnership product then as or I Merck partnership are back to it's of that, either circle Veeva's a from you additional any year. days any Merck? realize last a impact want with adoption I you that result announced the for perspective but

Peter Gassner

that the level. with because their CEO be data with getting business thrilled certainly specifics with and it it, one. Veeva a driven. we're from like Merck to say starts partnership, more that comment that's out open is a value Merck working. is of partnership I We're on of customer I'll would getting the how manage by learning a at I couldn't product true, helping think adoption. I very value the that digital partnership that, to transform really We're true take to relationship

possible. our so specifically rethinking we'll products. about are -- strategy it's don't we as what not So what's what and I much product shaping do

is delivery I a different a because shaping how selling notion. and with partnership partner a strategy not a manage -- our and it's It's it's think it and selling notion. we partnership It's But customers notion. whole more

with be it's So year. me, of I the To more one of that. happy couldn't highlights our

Operator

Thank you.

next question line Guggenheim Wallace Your Securities. comes of from go Please Jack the ahead. of

Jack Wallace

wanted Hi. Thanks environment seven questions. six, you to about I for has seen for business. Salesforce taking so ask competitive CRM It your What my your to the move Thank have to your been the months other platform. far since larger from the and announcement you. -- own IQVIA? competitors,

Paul Shawah

I take can Jack. Yes, that.

IQVIA see pretty still we consistently. So

that We see competitors. None changed. of also regional has

We continue new XX we've added We the I'm them. excited the wins time. the of in that most to win compete with about quarter.

customers continuing we're to in environment. add pretty a tight So

about our So execution progress, I'm excited our in CRM.

we're made been but some we surprised you to by With the together announcement, not Salesforce. on that's support months customers It's to that, I'm our I'll about the regard you asked support way asked Salesforce continuing. joint is working well. also, pleased give since IQVIA, commentary six I'm about working that that, partnership, you joint

to an standpoint. day-to-day operational So well from together we continue work

the contract, which space. the the that us have -- -- to is maybe technically would gives in with language them in we did agreement one them. There's I CRM pharma the our terminating thing Salesforce right. add terminate the announced changed that's the right does We with compete

applications. is, little guess, deep a guess, needs a for maybe reality industry-specific market the I bigger the We've the in this space of very, invested reason. I picture maybe CRM. very difference, lot but a a a pharma So space building bit We're in the is leader that's

go Nobody And seen there, and any is I close really any really is that. haven't to path. even nobody that company competitor, down

to that So industry. focus to continue deep functionality continuing the we really very for on innovate enabling success, customer and

where pleased competitive is. environment the So

Jack Wallace

And the America Thanks. to in for Europe the still and quarter, those helpful. follow-up Asia the Latin North local and players? a wins in most out of or that, particularly you're just That's those in muscling as competitive America where wins the

Paul Shawah

two, them of of were displacements in There North most of majority America. that were in Europe, couple for had. -- these them time. I And competitive also Most were or a in a are North America. the we but believe, the There first in couple were are companies commercializing one

So companies IQVIA, that them. replaced had and like we existing products

So bit biased it's the more market. towards a but mix, U.S. of a

Operator

Thank you.

line the ahead. comes Singh Please Your of next Jailendra question Truist of go Securities. from

Jailendra Singh

getting projects Thank through? scrutinized? kind of projects back you color Thanks are being there? to out the assume projects a or Is these specific on pushed to these environment I getting what Are more going a across does continuing type go later of prepared seeing date it solutions? taking of the little board or bit you for In to canceled? pressure to And certain you. funding around like guidance your terms remarks, in called Can put my macro project out questions. And environment. want scrutiny. discussion you give to your What

Peter Gassner

Yes.

any so changes seen - last in haven't Our real days. the we XX

get spending a It's little as not the for screening and curve. companies tighter. large they're for with tighter. want for they is that compare It's as funding valuations easy years to to because for justify small apprehensive ago, environment easy two you project example, If is more not funding the about at the future biotech

So -- been but none in of that included and it's in changed the our guidance. XX days, has last

Honestly, extra And scrutiny specifically just play asked project how scrutiny. that you out? does

and Let's just depend project. CRM the to for area, to -- quality scrutiny. It product area, be the the could on be safety and regulatory This area. there's in done, the area say project budget extra and this going they're going how it in is the doesn't much is

for going happen check ROI to just is that. When company our and the double

of -- our more long -- and a project one-off a well more that. those doesn't are see on for not people to done and stuff. term, do more ours that focus more projects That our go well, and on investment the are type having that just tend of those capabilities discretionary What lot we thoughtful need But well core through. issues. companies with be do companies you'll little has scrutiny, spend or Now generally that is project do pretty projects in

Jailendra Singh

helpful. that's Yes, really

Peter Gassner

clear more to point experimentation less say, due experimentation, a to that's of scrutiny. now than was I'd there's And that years there ago. two put on going

Jailendra Singh

sense. makes normalized That And cadence. Okay. then follow-up a quick billings on quarterly

fiscal expect of for in QX we on expect billings is number. just the QX? acceleration can like QX, about the you us drivers the you the of for course, us what And embedded calculate behind on kind have fiscal quarter we growth you if the remind half? curious talked from to you remind in second what growth Can Now but can QX in drivers growth

Brent Bowman

Yes, sure.

yes, so And take to noise we're the normalized try the providing out you. billings to of of for equation some so

anchor basis, a increased our full year $X to million. we by So on number

So XX%. that's of growth about

pleased there. execution So real the with

to what you've business, seen newer renewal has bit. a QX, of base underlying some Specifically our shifted the in

the QX. So it first more the from half was QX, shifting away half, to back

increase of you're well. an part into that's Also start will why acceleration the as in seeing QX in price and billings CPI So come the QX growth. to play

in a and are year. confident in the the back we couple why those So half acceleration the the are contributors of of

Operator

you. Thank

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

Saket Kalia

of like was XX. bit, and think displacements, a Whether maybe way, if the little specifically, questions those talk my of find for great clinical revenue more kind about Hi, rates a before? displacements have which more? Does some was some I business is is kind for able maybe -- I for and make bit Great. data you six you what Like Veeva that you top Veeva maybe the customers the more value what whether you little one? by think for Peter, add the Or of Thanks paying it been run than higher replacing little of of before just customer do taking do are potentially a wondering of bit for sense? that sort Okay. you, and value adding comment management here. feel EDC one a to were had guys. could

Peter Gassner

because more I to value Yes, we're modernizing. able we're think add

to data data build management We're electronic one to that So areas if you of look in clinical their -- the of our are core EDC, area, faster. customers are clinical capture. the able studies able

faster, and studies downtime, going able studies they're clinical without to without data that their being unloads. getting means that do amendments So to

Those with examples. better that means work a couple are can So research the of their just clinical they side.

them So helps it's that with a efficiency. better their system

maybe for I Our it it, on pay less us usually. are bit terms competitors. different I In the people But on a depends, the the with actually all it. -- what is little bit they pay think average, significantly have over they right? their think because put probably less pay they cost to I map less a mean they of less, little manpower customers us but

We want that. at lower always and want we things innovate more deliver to make to We want a better So efficient. value to price. and do more

data industry So at some we want clinical the look of share to I that in of up. the you return. that return, some the some to -- gets area, bring point then customer one but -- And if want

recently with two live have customers management data our our have one is only them both. and both just We and product safety top and XX clinical live of two, only now that

highly level. next integration Now over and a those integration process XX standardized months is the what at develop systems. we'll do the business here Highly efficient between efficient

just because hasn't to customers a system. the companies seen management industry of efficiency, both no safety had those more and get going much, clinical going efficient. and industry it's to that just That before, the data are much make The systems, drug

less, and real profitable business. to So that's deliver more run what do. a we Charge always want

Saket Kalia

before maybe more have the billings a billings. billings answer, it Yes, absolutely, Brent, very of in and you, which for the the little I half. helpful normalized my calculated was mechanical on acceleration follow-up shows. bit just the question, just second by a for way,

there the two between minor I difference a before. was think

we're about them being equal. Now roughly thinking

just Just changed, little into what for than that just terms your deeper around now if on billings you bit before? our expectations on a were maybe a what of can little thinking similar anything, of notification, you go sort more both own make those

Brent Bowman

to, happy Saket. Yes,

So there's co-term. what So change remote normalizing a are first, if frequency what or we're for we our is a normalizing? business, in

that's what for to going So like full year. the a look the we have year entering view

terms. QX, So once they changing into were billing we few had a customers got there where

those before. new we deals thought basically, what So offset

full one So billings year and the and billings same. a calculated on normalized basis, are

full You're out. but going the it quarter-to-quarter, differences for have nets year, to

Operator

next Please ahead. line Stephanie from SVB of Securities. [Operator Instructions] of the Davis go comes Your question

Stephanie Davis

the up on Thank questions Salesforce you taking follow just bit guys. earlier. Hi, had you question. my to want for that I little a

far base has the your your transition it new from client on into the platform? what been platform apparent of way, so Is feedback about another off and in the Asked yet? in-house radar

Paul Shawah

Yes. know on this. to large next customers, of the Remember, something on going I for is have This point years. a through is that sure it in the deal. have focus this. some big XXXX, focused at -- to about these larger is certainly a mean customers over they're They do companies think and the that large customers, this some they're for they they to our and have topic of plan conversation, companies, but global make enterprise, with several

but So benefits very get it what the our working for all understand of large of them also we're with this. to they closely help means the that customers them, implications, out

-- and there's think what the does forward. of the a understanding with see understand them a it's I this and path the having last And it about that that, I Summit that rationale. mean there's So was lot six real and helped think understanding months

to ultimately innovation of they're that And going them. level for new a get

do going to work Now get there. be to certainly to there's

-- Our exist customers sure alternatives really that It's will in the us doesn't other be market for that relative the minimize of will some customers. on have make to doing we size projects certainly, to And our today. to that. this

This lot a easier. whole will be

deliver we're months thinking over was six they're about helping, the So appreciating digesting of how They're going about to and it. understanding that's time. and last innovation the some now

Stephanie Davis

just on And a follow-up All billings. right. Helpful. quick then

the benefit, the out the the XX%? you receivables, acceleration that half the unbilled growth billings And from had $X takedown million to that in of bridging quarter. you out? You called of new second parse you this some benefit the to rate normalized kind clients of are Could how

Brent Bowman

Yes.

maybe just if break we what to in down it happened QX. of So kind

perspective, more that from a strength was then of of And we QX underlying portion had and a beat the it nice the was a from part business. So expected. annual billers in we than

slowed we that So through.

AR look year unbilled at you full that that billings. we no question asked normalized had you on The like how the foresee, impact me

impact So direct a -- but there. there's not

Stephanie Davis

folks. Thanks Awesome.

Brent Bowman

Sure.

Operator

you. Thank

question ahead. Please line the of Tyler go from comes Radke Citi. next Your of

Tyler Radke

look come back sounds to Is expecting at taking for Thanks you're out year Compass some next that suite. like Yes. that displacing kind XG be your engaging in product. be rolling on suite and net CRM customers going the It customers Compass you question. out IQVIA suite? the the actively similar Summit of wanted to I to to new of to you Vault or customers to be terms in on rolled adopting referenced are who the the

Peter Gassner

be in similar in customer, a right? a which a will very product of mix. free, it be for a a a existing be to be the pattern, quite from large in just may our from will mix many to being brand, we particular could the Veeva. full of were come for precommercial, ready Continue patient a That nimble company not that just a But IQVIA will our XX. go top brand, It they're I think that for customer, whether brand-new maybe maybe it company customer, products, is of sort launch. one will a or replacement more that that has all small with smaller, come whether in sort to of see what

Tyler Radke

customers and a you're I about kind that wins I some how to Got you the sales it. you cycles, departures broader are was side, in talk R&D you product in and if sales have about just and leadership understand And of believe the tends could just the the thinking but just changes in then adapting environment? us trends That's longer side, lot and had CDMS, of help CDMS seeing be to helpful. you're nice the about talked on clinical on wondering EDC some current suite. the of given R&D just how

Peter Gassner

that's going mentioned went area. clinical a remarks there top live in customer months, my generally not well It's as even that fast. the XX went That's product. data of customer all That's the prepared in new six months, do unheard very for customers the would much of. years. that XX core is a so thing six our kind deal live months, kind super management in in months many in That's super, two on What EDC I that studies, of actually these XX

they So up the did. especially coming we generate I to our That its customer be what there kind in going think will of fall. talking momentum, own have that's R&D Summit about

the moving. with and pleased It's competitive is quite environment that not really actually I'm So benign.

it's the we since at environment, look competitive not you entered into it. If it moved

a that our EDC management, our in We're also supply that's make randomization core core product, data capture. trial call as area with a early Now big that's and areas, also but to just progress you well. our that's CDMS, electronic starting other

a a outcomes, patient-reported then three that well. in big those And leader the area been EPRO as been there's has a that's And never company categories of before. all

do think time. we're set to over out that I

management of accomplished that's company what that's the suite of ever in is clinical make a that. all fact does, data great. the area, Veeva And And been just products integrated there's an it's sort none that's

just for very I'm about data started getting while EDC progress, clinical that's excited So our management.

Operator

you. Thank

the of question comes TD from Cowen. line ahead. of Charles Your Rhyee go next Please

Charles Rhyee

briefly tough, growth. revenue recall, you it to taking Peter, this of Thanks question. I the you've one in Yes. is called Crossix that mentioned about I the for that out contributed guys think past slowing being kind the here? If talking environment us causing at near in little there. growth Can give all Crossix detail environment you the term. bit some update more us maybe maybe for Has improved an the a give

Brent Bowman

question. Brent. take is this Yes, I'll that

areas that the headwinds over of that's bit we've more So and overall, hasn't Crossix XX It back changed, as little of half for of well. last applicable talked had of the marketing year a last days the in the about one the was macro budgets.

state. So still it is that in unchanged

to customer a for our -- very, So with base. strategic a exciting lot us very business meaningful it's still and very

about So no change opportunity, the excited we're macro. but in the

Charles Rhyee

up the a And implying then, a just XX-ish follow-up. guidance, percent. step maybe operating margins it, In Brent, in Okay. the call you're

second sort quarter. of Summits the and marketing OpEx for and you kickoffs. give OpEx think sales in steps should just these we Maybe sense give the mix sense us I'd of lines? bit that the should You had more a Can cadence, a we for little kind up about in various us expect? how the imagine the little line

Brent Bowman

year to about R&D I field quarter. have and through Commercial kickoff because flow to Yes. in we quarter. think one It's Summit, course different the a going of mean a Summit it's -- I going have the in We'll

it's So would was QX that, model to field little year, kickoff. the an I bit that a for one relatively That the overall I would example smooth. be over incremental where don't up try it's as think and step think about larger.

Charles Rhyee

Okay. Perfect. you. Thank

Brent Bowman

No Sure. problem.

Operator

of next Please Fargo line Berenshteyn Stan go Wells Your question ahead. from Securities. comes of the

Stanislav Berenshteyn

from to announced, questions. can Maybe they win I their EDC just Hi. vendor as I'm any switched or and you should who the taking legacy provided curious, their feedback say? they away my just share provider was why revisiting legacy EDC have Thanks you with us is, for DC

Peter Gassner

Yes.

the we've wouldn't in is the That I be we're -- both one would two or change customer main of case mention relationship. It's really and around of replaced those. terms for systems. modernization. replacing of large And In around better always incumbents Oracle, general, modernization, Medidata for

to update and the a then Veeva upgrade clinical that ability research suite faster those do clinical and a clinical So site, a the research we around clinical to clinical data and study, between application, operations of change experience research well things. that as has to suite, a maintain And a faster two be better study. better go as modernization for also would integration deliver management

take completely on the burden customer. that we So for

it It's more and because what operations modern, have that's So is. More we complicated. clinical not integrated that better the service suite.

Stanislav Berenshteyn

Are one sales there? And rep rates in any Okay. updates any And growth global Crossix? numbers? seeing Can on you Commercial. a on maybe the then on give any pharma updates changes quick us you

Peter Gassner

and continues can go related little and Crossix, business the that sales one take up and of on. that one and downs maybe spend its campaigns, ups because Paul, number. Crossix will down I'll then, reps have quarter-by-quarter and It to bit. terms marketing In a it's

integrating And our tightly, more -- way, Crossix more they're use integrate them Professional really customer something it and we're help is directions integrate now, to together bit more So to excited going CRM our taking system that's in a integrated that sales Crossix more at to about. and it's little tightly to forward. marketing The sites. They're like our business. Services bidirectionally

Crossix, to we core for as to the same remember data build And well. use leverage that platform that's

looking quarter. enterprise more So to over to will smooth our of of we're time, that and excited converting to out down to license committed in forward some the customers Crossix Crossix then and and that agreements and up

the then sales terms Paul? And in reps, of pharmaceutical

Paul Shawah

you give I'll Yes, an update there.

and it's roughly And the all terms Just then with a play reductions anticipated. reductions expect will have we time what year. long had we already very that about than this in being slight had most end done, the in system. in said played see when did we reductions majority less I slightly it out the line of for initially of We projected up the the through And will reductions, out talked through the the of quarter, that the XX% talked remaining of it. had remainder and about

Operator

Thank you.

line question ahead. the from Bank go of Natalie of comes of Hao America. next Your Please

Unidentified Analyst

taking for question. Thanks my

you press touched you pharma. earlier, top the a bit that mentioned release, QMS XX And on a Quality. So won Veeva in

you to bit more going the you. talk has driving what opportunity opportunity. Can segment So more really expand capture the Thank strength on the a that you're large a on seems Quality pretty bit been have a to in category how and there?

Peter Gassner

a Yes, us. big Quality is area for

is we the suite, procedures, Quality quality things have operating that. documentation that like So management, standard in which QualityDocs,

laboratory things CAPA. product, our Then what's then called Learn GXT, quality. Which validations. we and and system Deviations, Then which LIMS, which for validation Quality, the other is systems also our training quality And learning called system. manufacturing Managing information have also computer We also, we for Managing is in announced content is have have management we our there.

before, available and all So model and been big never very vendor it's area, that's unified a from one platform. data the on

to takes We So set that and early that. plans of roughly to on execute time The that's ago, we build what that. unique. it doing long were years quite have. XX out a It's

there What's We're customer fueling is very the momentum success. excited.

do things you change all, of it are systems unless need Long you implementations, lightly. it. and not do these First to don't out you easily or

are So time their when each running customer of out frame systems existing has their gas. own

they're quality of our don't broad say probably systems products, in the is going will a legacy core training, I QMS. Hey, our think awareness validation when. most see be that real. because days there's established I is to for better product get there's customers, question would going LIMS. first. The new is want a wait not now I products, probably these be Docs investing And then feeling Veeva be their and and lot about Veeva much to they that they to for alternative. do

gone. get Let's that

where long things, ahead, on about patient When it the EPro, first we So that's seeds prescriber. types we a the customers. our are planted replacement growth Compass, even and is. runway talk in, don't have It's long, cycle. where we few of a how nobody LIMS a those long just things customer. have we like for we've have

Our why by it's there's safety safety driven and I customer suite, we success. runway have build out more to of our say That's magic it, in no growth, suite. long to

Operator

go no turn remarks. There the Peter Please would you. Thank for closing time. Gassner are to questions further call I back ahead. like to at this

Peter Gassner

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

Operator

call. concludes This today's conference

disconnect. now may You

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