Veeva Systems (VEEV) 29 Feb 242024 Q4 Earnings call transcript

Company Profile

Participants

Gunnar Hansen	executive
Peter Gassner	executive
Joseph Vruwink	analyst
Paul Shawah	executive
Saket Kalia	analyst
Brent Bowman	executive
Hoi-Fung Wong	analyst
Brian Peterson	analyst
Rishi Jaluria	analyst
Stanislav Berenshteyn	analyst
Brent Bracelin	analyst
Jack Wallace	analyst
Karl Keirstead	analyst
Ryan MacDonald	analyst
David Windley	analyst
Craig Hettenbach	analyst
Anne McCormick	analyst
Carolyn Valenti	analyst
Jailendra Singh	analyst
Bradley Sills	analyst
Charles Rhyee	analyst

Call transcript

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Operator

Hello, and thank you for standing by. My name is Regina, and I will be your conference operator today. At this time, I would like to welcome everyone to the Veeva Systems Fiscal 2024 Fourth Quarter and Full Year Results Conference Call.

[Operator Instructions] With that, I would like to turn the conference over to Gunnar Hansen, Director, Investor Relations. Please go ahead.

Gunnar Hansen

to Conference XXXX and Call ended XX, welcome Full Quarter fiscal and January Earnings Year for XXXX. afternoon, Veeva's Fourth Fiscal and year Good the quarter

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

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

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

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

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

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

Peter Gassner

year of a It the revenue non-GAAP strength with in execution results welcome, across a quarter quarter to for and the million. Total the with great and $XXX and Gunnar, you, guidance. call. $XXX business Veeva, of was everyone, was Thank our above income operating million

the total many was billion, Veeva industry of revenue for million. operating a legacy Suite, and non-GAAP year clinical on in established to think platform back Compass giving new and industry accomplished. important progressed This that look of I our alternative data. on was Veeva $XXX was all year, significant. the the better the milestone past a we'll ways I'm We and most For commercial the cloud. We and team year income one the delivered the $X.X proud as was It

We'll call to up questions. the now your open

Operator

first of question come Joe from with Baird. Instructions] will [Operator Vruwink the Our line

Joseph Vruwink

services ask to mentions shareholder CRM Maybe approach planning outlook original large I those is to you're take related about from can customers. you views. changed at your investments and from these preliminary letter and The plans? how how differing go initial wanted migrations to it it's just both the with into

migration there's activity outlook to perhaps been this point? customers, customers, undertaking than more large XX question, related then And top to this assume has ultimately announced that publicly does maybe

Peter Gassner

with that into an It's guidance and anything one to solution They in database. over happy the it's get provide Vault much we'll sales, strategy. take just our investment do. a asked same to as all little services. them right with CRM medical, Veeva -- not marketing were as for. better CRM make to I'll able industry-specific wasn't the change customers major We can solution how have join integrated internal in our bring maybe things well. CRM. There's We're Vault and Paul, think in been It's a thing closer in We've no time, and to about refinement just going related all then decided moving a you view. more

wasn't really were budgeting or anything it for for. asking they But

right to thing customers that want those one customers. do remember, we because really just we the for have So just Vault those with of things the -- CRM that's is

customer one of Vault just and the CRM We have things. big is relationships

them So we that. want to help through

So terms progress CRM you change real type give customers, top with no XX and maybe in Paul, can update. an of

Paul Shawah

last XX Joe, -- top are We that footprint. progressing over now global pleased Really, that We're you to thanks X top our Yes, Veeva so to their CRM I'm our this heard pharmas. announce announce customers. existing of quarter. customers CRM, for is us a with X we third Vault to the well move question. pleased XX announce committing all that of XX announced They're all moving to top commitments.

doing the example in and making. marketing just integrating something are a of and that's given about. progressing and another unique of We're of of kinds we're talked tight We're way. top customers. progress rest sales all deep different that Peter XX other very the that and conversation has innovation So fundamentally medical well, with And conversations in many those the also

to So time top XXs Vault I'm committing more about you'll optimistic CRM. over hear

Joseph Vruwink

wanted is color because quite on moment. a level, at focus in just lot outlook, commercial like decelerating. on looks on win. is Okay. based the being of to there's congratulations new it the and what business R&D of the That's to awarded the set traction maybe great segment R&D I suppose terms At accelerate the I

but think maybe with better beyond is XX than upcoming the activity there just seeing two this the XXXX? maybe I new that fiscal of be visibility quarter, between top enterprise might strength lines XX this the for revenue reflected rating actually upcoming level Is were months, example. for you're wins in this in EDC

Peter Gassner

one. that take I'll Yes,

TAM, for XX% if breaks level if down, $XX a the high the big is we're how you a it's right? and business less we about and back -- So than step penetrated. just overall, So TAM billion,

they're and way profitable long-term then growing fit together. a products not a business remember and to like products thing these important lot And And or They're So things that that durable other It's products to many That's then a are to complex like we have going critical quite something we is of years. for got go. be e-mail products. that. that. is this thing long the because a

that one. It's sort growing really relevant the parts And the with That's that look So a biggest it Development well three parts. right break of the from and foreseeable and about revenue I to now, down it's R&D grow opportunity, so and different of of our into can XX% you at will into about area. XX% overall or revenue context, our future. XX% think it's the really perspective, Cloud, roughly it's the

advantage we systems. mission-critical clear lot these competitive a are because products, there, And and have we a have new of

Now programs. These what systems. these rush They are Joe, don't in some long-term is you don't mentioned, and are customers these rush areas. critical

a years of and they we So and from couple had for to roll these that out X will they now. will wins example, revenue X full get

important was X% impact later. One thing quite years it's still remember less when and Cloud, a in on comes the fiscal bit going growing the XX yes, of and over much our ago, revenue, XX%. than So were now to we Development about that public, XX%

suite. CRM kind this you've of And areas call the Cloud. CRM -- our like then other Development the we and the got add-ons, that's that So

of core in high Vault then migrate and things. of have and we before new that or service the we really growing like some centers. add-ons. area, two to is we automation One, It's CRM can on because marketing really Veeva share CRM sell products happy And need stable. CRM customers those the our And market not revenue customers the and to add-on

things that XX% the of is that's we other success call moderate steady XX%. roughly stable a products. is some Crossix where commercial. to really then like of mix and is commercial customer are kind And So content but the continue stable market high commercial, in with other and we at this grow pace other we things And a and leaders, if a those

And Compass. products on growing then high like but and potential percentage can small we now, they're And execute a rapidly newer well. have these are Link they basis, if and

see we execute can if well. Now -- remain to we have

growing area grow foreseeable into well. about, other now, continue this as I the and overall, can future to So XX% talked or that so that commercial that's roughly

So I just business background good look at give how the to thought that to it was overall. on

Operator

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

Saket Kalia

that start about great billings, year's had year's success to congrats additional can way market. in You've question those maybe the is, maybe on growth EDC The to two billings those Does Great. sense? Is how with -- right? just billings next talk ramps without make I'll there a next of you. of contributing ramps. EDC about those Maybe or sort Okay. the are you wins. Brent, benefits of with sort think

Brent Bowman

Yes. Thanks, understand. Saket. I

we're top months. you EDC still well XX think 'XX, said, So real exceeding our so wins, X billings way of early wins by of in with example, And exited have those we as guide, there. last days, the Fiscal the been X about if Peter how pretty so executing pleased

ramping still early we're So that in phase.

they're contributing So fiscal forward. year X more did 'XX those in to year And contributing. contribute look fiscal 'XX. out continue they as They're will than we more in

Saket Kalia

you're here of maybe little seems Can it. feeling us health higher-level bit how like the for your a Peter, Got question. an of helpful. it are it. customers, in about on It's Got things That's great follow-up mean, markets. think last my spend for I update end which how thinking a you you are tougher you. give just since with just just XXXX? is so time compared XXXX versus investing But you what to in a hear. about to relatively customers technology stable quarter, much was do

Peter Gassner

Yes.

science we've now of disruption a while and it. more little think I to there's optimism. conflicts people And are of well. had for going getting this interest kind a rates used and is The

a little optimism. more there's So

could Of course, change. things

will the year, that more that off especially the following this time, a things get the kicked that projects towards about year. end a But those get think bit of I translate in of thought year. lot into

safety So say, don't projects, up me lot my wake day one our let redo just drug "Hey, you a system. of and

there's these industry from now. -- thought I some There's projects. like and feel it. are I that management some feeling overall, into But it's big the the right Now change

Operator

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

Hoi-Fung Wong

question for first Brent. The you,

you growth about I have haven't think teens solid more couldn't being little help the billing. outlook think I a on a notice used and but you the prudent language As is Yet subscription past. guys mentioned in the which you outlook, I with

are the additional it come you about guide, cushion? through can of thinking in love sense I any back makeup I how get the year. kind baking progression additional guidance? might we give love when of about just about Would Is the So guess just you're you of demand think the would color thinking a to the as on

Brent Bowman

got there's things the impact frequency. the and you our a service and approach variables how play, in Ken, macro Yes, impacting how we it's or like to guidance. of no business overall, that's number There's our and obviously philosophically, duration on change subs whether billings,

So hand. we all we step kind those variables, variables a we've of and back a prudent and given think approach look holistically at at take taken the

how not guide. So we in change a fundamental

Hoi-Fung Wong

Got it.

Peter, couldn't a installed help migration potential you based study trials appreciate and that guys a being could an that market portfolio I was. the opportunity for historically, have going Really on opportunity the you color. in maybe see we And migration? of a what winning through then of the notice new with for on feel forward I talked but lens saw EDC January like Okay. Like you did base about as end the customer. set that guys that where possibly side, enterprise

Peter Gassner

to about Let's that. think How see.

and migration a ramp that they a we win they one would Veeva. study-by-study that we don't it's we run or doesn't your agreements with our may migrate. directly long ones biotech, how it's migrate over when change deal they two agree, ramp EDC, at study And revenue or which sell or And be studies, or costs be where enterprise won't whether really really small three The -- impact have and for the types. they doesn't may all. the other sometimes that One that or field, based Then on an where study. all on studies hey, enterprise it's only and time. are revenue over a running whether On there's for two CRO term, that fast you'll will that's EDC time, we compete

to enterprise an and What it get and a They point up with rolling quite they're long where a let's they out is, want will environment, studies consistent to clean time, say, with a ours, clinical XX IT have might Veeva. want for to their for is, they they and if XX, site experience. customer signs up run they're a that comfortable and have agreement research

what studies clean. it that straggling Who having just So happen up gets needs security what it with has a for tools use downtime, could it's clean is, years. straggling legacy they that And honestly, put migration technology some our be vendor, on, be X, that whether patch on X could rather knows whatever brittle. to to the than X, not

So capability. into our in sales that migration capability that have really translates advantage that enterprise has an nobody and capability because actually we else

only affect really would where study. have it in an So there. the we're competing by market doesn't small effect It study

Operator

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

Brian Peterson

one more multiple about are curious, this diversified like areas across product is the quarter. base? a customers in at hear BI? Congrats past those it on I'm some several this take a mention some across large obviously wins apple customer wins We few there? once. with Any customers much been There's bites the quarter. concentrated lot buying the of color with Or strong the that and looking the products to

Peter Gassner

one. I wins operations were say and this We a take I guess products. had big customers. more I operations some would with quality clinical those multiple had is clinical in That Europe. win can We for diversified, with customer that was a certain diversified.

couple customers. a top of EDC with were those have actually XX We different and of

I U.S. and all both say think, Europe and just best spread it's no, customers. way around, the to So different in it's it,

Brian Peterson

a That's at here? about over great Brent, next follow-up. are How know looking to capital years the priorities to maybe few hear. grow. deployment cash guys you the balance thinking continues And I

Brent Bowman

a to cash. Overall, change. our a of allocation Yes. We business. profitable We capital Brian, run continuing no strategy, current generate lot

we use focus uses are at M&A. So look as management other leadership we do to company, disciplined M&A. of And cash. M&A we on today consider as our we'll cash disciplined a approach a and are that a take is how focused We team, a but of

Operator

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

Rishi Jaluria

is kind playing role different like? look first Whether know quick I walk own life cards bit those if And can AI would targeted bit to But you AI a companies ask ask think how want in whether way your on maybe us more changes? are it a on maybe because those that's got you of your that's you of terms feels close of and to AI out I what And changing of what drug play what follow-up. could ask in things. little strategy. conversations development, you wanted accelerating you're I've to marketing, chest seeing little in through like I a sciences sort the

Peter Gassner

most and direct language do happening discovery. like as that. things retina the folding and impact been say analyzing would that images, while protein models a AI things I Rishi, drug very it's before models large well can like AI targeted with and Very,

this AI R&D, close but AI area and not the is -- very So powerful, I multiple specific, is very the there to one is this just therapeutic very science model in there's -- models. specialized

there's of a, people productivity will areas, an with large for of lot really, write a at continue. fabric just models. say have what can part other faster? Then So in that's look e-mail the experimentation my kind terms And it that the language going on, can and are: I I of they general for industry people, now. that's of would of

Can research their they information they faster? check some e-mail Can faster.

author one that's I cases I author Also, can thing that's a So Can specific faster. faster? on. going document protocol I regulatory can -- a like use authoring,

very be accurate. also Now to faster have thing, one but is

on on control that. would has it. I lot these So not production yet And things quality say of of to There's on critical broad that. there's experimentation some be use certainly,

three: research, authoring. and cases So probably biggest those use two general -- are the really productivity

the faster, our much system that may which called work it Direct a happens develop, applications our the on for be Vault the now. family. been That's making transactionally manner way all of last to then that's which develop, we really And -- Vault much, of we're between data utilizing Data transfer we've XXXx our kinds out for revolutionary really system X faster top, something years roughly and to AI a pretty in that's different may some consistent as going some doing also critical far as platform of And the API. over come on fast in our heavy role, consistent Vault customers than

that's we've done. been So the that thing biggest

in language invested haven't We heavily really models. large

come far, I that areas, that's pretty control our to that's The models data that, data So in really commodity, Veeva application a top, but access the don't the and position the guess, thing application would good sources. the is important, to AI will pretty and not about -- where just would we will data future. that durable I kind AI plays. sources, wouldn't the the -- sources, in be quite say the see the a change AI and I in largely we're say on of because tech

Rishi Jaluria

Yes. Got it.

Vault from the then looks -- first ops can that full maybe Okay. in deal That's quarter, what adopting the do full suite, those to suite wins? uplift and talk customer you eTMF to you of more helpful. really like had your you what And in the types the accelerate about clinical maybe sorry, can of

Peter Gassner

Yes.

the years, that has course, that larger I thoughts quickly applications it. I that's give say had customer, into fully of I a one. would on can go customer of of eTMF, had deployed here, the won't and exact you one for our specifics that's and that but Now there specifics of number my

When tripled it's the And clinical that but into end-state in operations, won't clinical than the our they got go in applications so tripled. other they know case. opportunity, numbers, more than our exact in four more operations, I I

around training for look friendly significant. in clinical it's that's training, maintaining important at really sites system, the really trial a doing world and that When compliance study thousands you a and way. of management system the the CTMS, So research important system

to sites product from sites the sorry, research from the clinical automating -- that's company. thing processing. the information to then That's to out flow the The another Connect, which and payments processing is pharma about the called Site key, payments the our research sites the

during the to we're way. During things conduct of of the media study, to critically automated at end-of-study site that are have that the an that the get study end the startup, doing in the and also and called out

triples and that last of holistic modernize like of of to would want to a of number customer case. eTMF. And going says, it study this across there just That is and a way comment. need, a partner always be won't common use to So more need, our than where group we that a in still or a That's hey certain ton clinical number use customer payments it, a a to do over common operations, we're I say more let's a years do there's there's really value "Hey, a we're in looking group training What's products." more training. area Veeva hey, ,study let's use the need Veeva. has has the value The

Operator

Our of next from with line Stan will Wells the come question Berenshteyn Fargo Securities.

Stanislav Berenshteyn

Compass out demand anecdotes products? reception, any but rolled Compass you share those early, on customer National. still you about Prescriber, can I it's So realize customer

Peter Gassner

well, very especially It's patients, good these but a products. Yes. early. Compass It's are and quite question, especially Prescriber National, innovative

server sort -- to wow. customers to for while things. It's So like a a of, the from client doing cloud. to cloud adopt almost and these. of it's sorry, It's going way It's going different from take understand

not some, first from they're customers interested. they're for busy reaction and has the the been So

into well, like, "Oh, they to I this look like, that different. really This are then And they wow, a different. to this, really And bit. is is they look some, have into want this." absorb little For when

on ZIP level products scripts can can I've physicians like, but been to in see unattributed a not and can And medical data they setting, health see specified, I we And -- system. the I HCP that then to the the that I are that where that doctor my have 'Wow, jumped see on the early see administered level. they competitors' for don't the before." down retail code health able adopters, target the never is -- can product, can target the -- I not like things where some

before. possible that things just not were are These

a and not long So years for time, really possible here. for XX

generally companies of hey, they're wow, process adopters, market. let's How innovative can the early it's coming have is available, some come what don't should in do So for which innovative going existing just They will I that -- data and and type it's that. any data? time, it's infrastructure go I that people and to now So take with for to optimize? it's

thinking, some getting we've precommercial they're, they're have -- this had "Wow, for is And Very well, companies limited they and that to they new they small what okay, do brands, and just brands, the are latitude in in set, products, going to some right? then reticent have can Because they're motion, do. brands, be what what these don't time, takes data to brands ones and large off And go disrupt risky that. freedom go I big it's and we'll the and and a hardest of life a established The it's patent they have and that because working. want there. they

a little of we're seeing. bit that's color So what of

Stanislav Berenshteyn

as Maybe sticking that. appreciate here. I interesting. very the with theme marketing a follow-up, That's just

called You prepared pretty taking share it's strength Crossix. just the in Is well seems on remarks. market you growth? it are as actually here? based Or It overall broad-based out

Peter Gassner

just the doing applicable. What's for track Crossix, sort there I most of out. continue All believe largest taking data is and grind success, share, we're just our record of we customers customer is the yes. what successful to with it we're happened network are

I during with some experimentation more areas. a boom So times think other there was little

fingers I their bit. little haven't. got burned a people we that Some think And

We haven't burned anybody's fingers.

success leads the customer So way.

thing. the that's main think I

Operator

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

Brent Bracelin

there compare, contrast was versus the to segments, you what XX I a And enterprise environment green you seeing lens maybe back you're specific to the with year what SMB? compare SMB seeing go this Are segment. the the with there then XX year? or not? demand that relative there then also are shoots last towards hoping segment enterprise Can and any just in top to top

Peter Gassner

it a continues segment emerging of a is able number escape This of a be we of the funding of sliding saw biotechs, year, and business still out there. of you one. we're it that record get too around of get This when The turned acquired new until number is resigned it hey, turns go know because the the for tough that there's around, say never companies and kind XX, around you and IRA take is small in hasn't there's global bad top to And tough, that act, the center I it's companies us small Then inflation, so it velocity I'll to yet. hasn't we all tough. were environment Peter. bit turns a some is the know -- just feeling yet, hurt that, in but conflicts, there's could just going. keep would

on there's I focus there's really They're that's seeing execution long-term renewed important. Also, think execution. and that -- a

Like, example, science I brands ago. now X area. some That's in we some think something well. about really as the years for there's excitement didn't Bay city the exist have big that X,

the lead And science will like, the so renewing optimism wow, people's way. that's

XX really emerging different top versus in biotechs. the the it's So

Brent Bracelin

that And to question $X Helpful going color there. And very year is flow to back the a my here could then and is first be important follow-up M&A. for exceed the billion XXXX cash time. fiscal is

$X have cash. billion in You

M&A. tuck-ins. technology Just the thinking Historically, around it's been philosophy small through on

the well? larger as bolt-on now think after much cash generation business every a differently thinking M&A a cash and bigger of area? you're Just maybe the outsized lot generating got a given size generating to about year. flow you you a little today Would go ever coming You're acquisition business, new more in through

Peter Gassner

can talk the to philosophy I M&A. Yes. general of

secret, I I can just formula. think you it's give the no

we're the somewhat we're all, go has has in, First make it be some business what sense complementary interested market. adjacent to either It of market it's to with that or to to doing. a

It number absolutely acquisitions have at that to had fail. But considering cultural succeed. company work. you're XX% otherwise, has all fit our a of So be of that acquisitions it Veeva, the would will with not And we've one. because acquiring just

So it's this discipline.

or the cultural but and a it a culture things, acquisition. it's The that thing, culture our doesn't culture, our a best of with not not whatever, is is will company fit an fit that real be many indicator successful

clear need could you of very structure you them. acquire day announce clear you it an enough If out it's thought actually therefore, indicator say have integration because and bench both you And or business plan to product this been in don't strategy happen, a organizational strength the it to so that lose that's you'll ahead you Third, from people. the to thing. to would teams doesn't that can't that it the have operate time isn't

that, in the So those think parameters. I are

more we I be willing we would us don't that we go was something seller. other $X would If that saw So think and cost you to that. the parameters need fit that by is size. need right those limited billion thing than would for you But a

going to don't rather that. that's And XX% parameters. just And fit it in We're do of it. so that things is it's to than a on would I failed acquisitions not timing of why fail shareholders because return rush waste people buy money these and acquisition. they

Operator

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

Jack Wallace

been to increases. to We've big some and the it some wanted guide deals. there's go got the price ramping back coming into momentum a Just We've lot like of year. got seems

a Am the a buyers, of question strategic in of sources is guidance revenue that order a grinding to that to I and range. think that I mark. about of it's correctly? handful of matter coming willing to like in at of end billings of but I pipeline the year thinking how wins higher healthy a subscription little upside of feel there's prudent times high belabor bit the don't a above you really it's just out -- get or it into the maybe potential here, to floor had does kind the whether but want or get more term

Brent Bowman

Yes.

what of would we factors calls interpret level the of the considered I numbers guide. I I think start reflective wouldn't words all today. have a prudent would conservatism historically. I have the on the incremental we've say that guess as and is like guide the that's we we've We've there. call there's choice those of into this best that's talked of baked So considered about of we And the

number be think good the conviction little the we way. which in contemplate would on numbers can I provided. of we a it So really like a and There's to feel bit overall, business, services that that portion of have But the business. at of items lumpy

Jack Wallace

you then wondering impact taking helpful. on any lingering I'm from just help It you're there that the And much potential on to was rep at couple CRM more of kind play is impacting then of migrations? how XQ? just over improve XQ That's just there. automation just And the the services. guidance, approach just years seems the last reductions aggressive had a

Brent Bowman

take the that your can portion around the first portion -- rep behind question digital rep those that's There's reductions. largely of on reductions, -- of the I us. on

So I incremental as that at as headwind an fiscal of you year look 'XX. think wouldn't there's

Operator

the question comes UBS. Your Karl next from line of with Keirstead

Karl Keirstead

me, AI, we about there? other income to you software be where raised into to margin Brent, fiscal skinnier about meaningful. A way needing the your level. a upside. to it pretty operating the decision talk your raise going against calculus lean XXs talk you've R&D, invest seem of they're somewhat posting backdrop To Can in guidance that's the to 'XX. But high of could for number companies

Brent Bowman

Yes, to. I'm happy

provided $X typical, So standardization. first some we around which context a and taking wanted not big maybe to provide is TFC step about guide a ago, we so bit the back, just a year billion-plus

and our operating from And we've that, And well, we efficiency year. platform. and the Vault and that. reflects of fast that We've been out model over our forward executing the efficiency get been months, past So XX operating the power the XX% now and right? also model, and effectiveness executing the of you reflects

that. We're to are those. changing necessary execution. but down growth. making success We're comes just And about see to the short and really drive it's not we overall, customer it -- investments So

Karl Keirstead

maybe -- we Brent, sorry, going And as my follow-up say something? I'm to are

Peter Gassner

in Yes, teams smallest want efficient I a in that possible our together. relationships, was say people -- teams. -- lean customer processes, use That this with we're can and concept but we Not just of want a getting We scale, teams. being we're more our we call diligent. Vault the layoffs, little is getting high-performance We're our platform, think efficient, we're doing I more we our perform Peter. well would in as lean

of are that I increasing us increasing. time. see margins our you'll margins So discipline kind And this that's from why think over

Karl Keirstead

Got it.

follow-up, Brent the maybe we would any Helpful. like from comment. to we're hearing both have I of then optimism impact And optimism real that back message. just sounds billings you, think Peter if this us and a year? revenues and that that, increased go on Okay. It thinking could dissuading as are

more press, that projects optimistic, start Why your Why are spend not to forward, not? could I little come not. if But might stalled why could to move a clients getting just be start if back. discretionary

Peter Gassner

complex stand I critical and than have have think systems these that have discretionary system services, things time. in we with right, we most little very of other time. deal we these with, thinking they They and because deal more more thinking

do think this live happen know that year. I impact said year. we some it's in don't We And to times. would don't what's just going this So stuff uncertain having that,

got interest global rate on. some on. conflicts We've going have things We going two

So the uncertainty. September, is we not to guarantee right have as everything going be same that it's now. to Again, that it in a figure is

Operator

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

Ryan MacDonald

X I X start in noticed quarter even mix Vault the to with and out and first X Veeva the CRM. Maybe of wins CRM.

contracting are And for like the be migrate Vault, from now able still want CRM. that something over it hearing whether then 'XX you're of -- selecting putting Is way do wait on to commitments to to terms so to Veeva what a of or to curious in customers different or in Just April it new they you CRM. in Veeva anything till that? the is duration don't versus rationalization CRM there be

helpful? there be color would any Just

Paul Shawah

that. Yes, Paul. This Ryan, can is I take

away Veeva the choose on these need what So would preconceived conversations sure specific That to of customer. it's that the the right that Vault may with based have they common we We about requirements We includes decision. There talk that their going really we a and transparency. are make be example try go don't go listen one they the want features CRM. with their other. to Veeva to way. We and want all quickly. customer early them. they lead start with why reasons and of are, customers, a or they to a in choose dialogue. We full why notion. make And be We then things guide CRM talk the to do on those some we may CRM functions But over very in

Veeva and this to CRM on end give full and Just the in April. you on will Vault be in CRM at We're track a in by the everything of be perspective, for way availability with parity we'll general that year. well a

milestone. Vault. timing will in a comfortable that we're starting really line And time it's be confident that issue. and April, and in So And everything

So that there. gives you some guidance

similar In really how terms a contracting, a not we're in of the we're change. very way. contracting There's material --

user same, that and is in contracts, very but it's the similar. all we then it's the pretty per licensing do, And the base. it's terms much not all deals timing of annual of So exactly same,

Ryan MacDonald

space days new appreciate picked from need it Super sort have time we've seem data be this Maybe But the one Prescriber, whether those on sets of remain vendor-specific data to up over competitive that to is or that. issues. maybe helpful. follow-up early to constant the and are grow with in a additions it, the strategy. for available other I Obviously, now. data vendors their data maintenance National thing there's

whether moving got But you out and expansion sources forward, thinking addition other you've data or strategy maybe of it or I'm license National and now that how rolled sort acquisition you Patient, in organic makes -- you're curious M&A Prescriber sense. if about from or to that's that

moving Just curious forward. data expansion thinking how strategy about you're

Peter Gassner

we acquisitions. customers. data we course, buy yes, data it make data our end products call to data terms And we In that sell inputs, of acquisition, of

of We there. as data a lot kind pretty than We're Compass, we that's different relates we're fundamentally multisourcing. to industry-leading strategy different really common process excellent from of a one the have where it tokenization really out patient sourcing unique sources, have and

we duplicates. when together it So and multisource avoid different can a of this, bring from places lot do we

that, data us. data source to we'll more do we be will no have particularly extra when So sources than what's critical common, but

don't expensive, we see or and it's number good, can have want years, that means source not is a which we'll something see purchase cost not cost stability a terms, we of So as, for of too it contract a data than multiple won't the for the a know is we good and to that. we that's and years when high just deal good And do over that. what we pay, if we such hey, then we set

something Very There's function step cost see going business that. importantly Veeva. dramatic So compass not our for these no data our Crossix or in to us, power you're anything like they from acquisitions, business. and both

So good-sized different, very to we're power data that's cost. that businesses percentage our lowers right? of able two and purchases, set With so one data

Operator

Jefferies. line of next Windley Your with question from the David comes

David Windley

does for Does Europe Peter, products, Annex the on that regulation influence at that impact quality any in have quality stimulative your X all? need products? your

Peter Gassner

nonpublic long one. it's know out research, I don't to what but not I is, back thing. a can to I offline get figure can do material I -- as that if have We to some back X as you. Annex probably we'll get you

on So sorry that about stumped that one. you me one.

David Windley

ask one instead. Well, that, a I'm I'll sorry, I did but different

flexible data about data on think strategy, that good when So I cause does breadth base deals. expense just the because that you Maybe to grow I the disproportionately operating going ability allows more to the to pay see have your the does does comments was the you the be of say you I answer is understood you to ask, made breadth your sourcing data? breadth to opposite. you to that Or money? buy of

Peter Gassner

really That's overall believe can exactly believe. compares we beta know cost have it of on because our wouldn't strategy. I only a as comment to We we lower others. I really what this.

quality. we this do reason main the Now is for data

three a data data is reasons quality. medical an somewhat for we that's getting be of chance different And is something center. the better done overlapping, this -- getting might you're infusion can data you project they're that of sources, if from which in claims, So one have why it

project or points data CVS. Why? that up also something because the Well, something we're from pick can along multiple sourcing you line. We for Walgreens at

for do that. view patient, can of So the brands. we And more is over the only real you can benefit holistic data X,XXX project

few and biggest just projecting was you're that. ago that brand Lipitor when you drugstore. at at data, do if Because started legacy based in got if on large Lipitor years a can't these data were look XXXX, products at you've can't you the the Veeva XX when or started, You retailers' even XX or the do time

way just into don't the Biggest brand and that that. now or et It get drugstore is work cetera. you HUMIRA, Keytruda walk and doesn't

to for we'll over And So do the but I that I modern therapies. it a ours I I really think only cost that, time. have think is complex data well don't have prefer way that. approach do is today's do to think lower

David Windley

you when be? are and that, say, way a some feeds more you're actually might your situation Got in hostage that that, ask stumper, it. And a the significant collecting then data is again, to where but mature Change switch, products in being more this some to others makes that follow-up and situation care relatedly, fairly data that is future health reliable the held than not Healthcare data hack maybe a cyber a

Peter Gassner

Yes.

not of I'm I that, but the Now of am attack. details attack of made, aware as how the Change, aware of the it I relates am was course, to specific very or the of is not to whether But aware the going I'm inside switch. and it on But not -- get Change. disclose a yes, we data not. them what's going from

the here modern are different good are system care they in the of that happens switches, relatively operating there standards and point thing are the Now their that play. can that software on health such software for most pharmacies to

can health good system recover. that's thing that a So care the

going real the picking up routed, going gets details, a again, way we're pick there's we're chance without data because For into in a along multiple lot us, up to way. it it of good the whichever places

what scale Change, business, it unfortunate we our I'm going I terrible affect with at it's Crossix think and with wouldn't -- these -- or on but certainly were our in attacks, even business. happened if cyber Compass what's would not So I it's

Operator

will question the Stanley. come line with next Our Craig Morgan from of Hettenbach

Craig Hettenbach

when down. coming on OpEx you year? have just run this this question some there's to on there margin. Is margins or you -- fiscal see -- strong think you for after a services element of about Can touch I beyond Nice a think new Brent is on 'XX. a the rate do 'XX normalization guidance

Brent Bowman

services. would it's we Yes, more broadly again we're model, how teams broad and I seeing and we're thinking overall, really disciplined It's say that uplift really executing and broadly. by about driven lean say, margin leverage I would operating the hiring our a isn't thing. how really

'XX targets. fiscal our So and year we for we not year. going the those feel ability guide there. how good to operating hit about this basically in informed talk about full what's we've income margin beyond And our time. at executed in good fiscal But feel that's to point I'm

Craig Hettenbach

Got for then Peter. And just a follow-up it.

you on wins. the is versus in think touch resonating new then offerings? momentum factors EDC competitive customers Can you're on what with key you seeing Just differentiating most and just

Peter Gassner

of multiple success of would arms say sales I way. it's the to to get would in today. sort I thing a them the Well, quicker study. peers part a feeling a terms capabilities, weren't happening end that?" of That's say, build a be when up not existing lot actual into very very lot least be authentic to complex leading get able has we reliably. agile because study and big required and build their benefit. I about couple at the for And the build existing that a our work would happy of I would say references, right? a be is -- you're is current A it then no more actually coding. as study coding, coding would you of So you what and easy providers our out doing this to Veeva we How customers a are positive using productive "hey, market, reach -- these customer think middle If customer existing the of if

when the have unforeseen whoever the coating, coding managing keep grows be Now a under study, that because is can hard that it's is interesting you errors and people for bit complexity things. a there that headache the control of and study it's to and for but

coding. you do Veeva, custom with don't So the

that's something the the say operations clinical management. platform, And leaders want existing one data is a in area. would and that other and management you from clinical clinical people not I the clinical is get data can

data a keep and don't between that develop products operations running that's their to They integrations their as from integrations. both change. people to those deal And have management vendors. has customer clinical the have to headache develop the different common then that So really to data architecture They want a two clinical with.

is to contributing. So And that have a everybody do today those well, how you system, better come might good ask, I are say customers changing that it's not and have things well, would very, this all it is and priorities, reason very it. buying you a critical

customers You pain area all don't do it all the time. not unless in you and at have that same have pain

Operator

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

Anne McCormick

to budget I to in extent the was in hoping others happen late quarter. question heard to did go the back industry the that the from flush We've some earlier annual optimism. around some

at to all? maybe comments see your maybe did that optimism space? other that driving any point around curious, that you the in can notable are you shoots And Just green

Peter Gassner

one. I I that take guess can

really critical For budget complex so don't more we discretionary. the that things, and ours too because much see flush, much are not

have We see customers don't in may big because much. then I as So based That a partnerships. just it's have want relationships be the feeling really on see terms just on we strategic deep this the happened. intuition, -- of it on clear, lots as is don't we everybody to have And based And we with discussions. much. don't -- that of optimism overall, we

There's you but it, quantify you can't no down feel we and it, So really calculate into know when -- that. there's that's it feel -- can't -- you no science. all. I it It's

Operator

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

Carolyn Valenti

changes, This upcoming the Act to are just invest? about risks due to A for me. question in is the Callie noticing be Gabriela. It potential how about regulatory and you're might Reduction way would with And for that how customers you're impact on companies about impacts think potential on Inflation impact? change biopharma future the particularly of update any industry any an associated Valenti get thinking the great as election and also then thinking how they the any

Paul Shawah

Paul. is this Callie, Yes.

to way and the you the guess regulations, particularly, IRA. specifically I So brought up think about

are and foremost, impact. it, first long about starts because about of that's thinking -- and terms the the side the what Our customers drug in on development thinking really cycle certainly they're it, to that long that's

that today kinds the where going that relates things to approval they the kinds the invest to in are to decisions Those The which -- going indications to get molecules, make small they're impact for. IRA. it of as molecules which will of they're have an large around molecules, try

those and thinking So happening is now. those decisions

on So the on it the would it's R&D acute say than side side. I commercial is that more

it companies. gradual somewhat doesn't and acute then on a standpoint, and commercial XXXX, hit From -- it's until specific really it's the focused and somewhat

start and side, action more are and They're to more I the more they're So but decisions. making of it thinking companies making will think changes, also innovating. responding. commercial R&D. impact They're on over And time,

science of You heard the some the of around the the and innovation optimism new medicines.

of the So industry or potential headwinds I will of drive there's optimism kind think the also innovate negative of of a continue lot IRA. and that through some the to

to more generalization, changes, you you may the benefit regulation. is and In using terms change, you digital is of it more positive put to with you regulatory management. other change becoming because things become more generally and to generally generally and helps net need and modernize are digital, need those they're that companies drive of to -- usually to need place, become agile. but like in kind a And regulations this comply to When when comply, technology you other of things neutral -- are elections

answer, hopefully, about of kind but generic that of sense it's a and it see. typically think gives how we So you we a what

Operator

from Our Truist will Singh of with the come next Jailendra Securities. question line

Jailendra Singh

of on couple questions macro a commentary. have clarification I your

First, a quick on side. clarification services the

indicating since you timing. environment lower one largely the has the But your of your project last called for services You call. earnings be factors outlook to been in unchanged seem that out

from elongated? back pushed your of a time more is is have expectations projects these getting little now lines Or So been some that it more out coming bit?

Brent Bowman

or -- days. I XX the last in was said worse it better what so we hasn't mean it's gotten

obviously, days XX about ago. services, talked in impact, see So did an we we

bit So timing continued the that has on side. project a

of talked investments we items reduction what into driven guide. That that we the was has in the implementation the there's largely well is that that primary the other as some as services making. of we're driver. our couple contemplated So excellence about And a

take of you that slight that So all reduction informing the our together, guide what's if and had. that's we

Jailendra Singh

And you well follow-up quick in, in-house it's R&D might think flag the those GLP-X one companies obviously, area known pharma to a for chunk trial R&D a some is spending. providing Clearly, doing weight understanding be tailwinds CROs. R&D I is that of Development your lot these Okay. to Cloud business? and then very dollar think going of versus loss allocation dollars in-house are our decent on trials Do even that outsourcing

Peter Gassner

back That a think goes I versus haven't and seen trials. forth. in-source I on shift dramatic outsourcing

it we maybe our really the in-source outsource, I now, companies, can their So think dramatic anyway. much too the going a that outsource. haven't lot they're they pick to seen And the big I change. of the in-source right to always If a we -- doesn't trials affect CRO. up business or And

doesn't it So really right us now. affect

Operator

of come the Our Brad will question from Bank at America. line next Sills of

Bradley Sills

Prescriber seems cloud. presence exciting Data pretty time Cloud. elaborate to and looks the I to here, on those? with you like wanted like data no better market to just some a here, ask come National. revamped it Peter, about Compass the releases the enhancements and Could It

are growth? you about excited what augment that cycle So And how could there?

Peter Gassner

the for and your that use I years tactics are going it. data for you sizing, is We really liked stuck the Compass. to a in That there. things. we big not network data -- the that can data. Veeva planning, It's say has projected more And Crossix. It used And innovative and around that of data call XX timing something the bought proud couple network. incentive grow to than it field since on And the market field data do critical approach add on we're last that about can in we feel of a the force years, to what's use, for hasn't when critical copying We of entrant excited data for innovative am get taken the use really business. for segmentation I plan, been to Yes. sources, we've and great. Crossix new easy we vision think started. going type team? always I'm targeting, data approach would business it's Who And how I more that that a Crossix, and we grow over you're compensation, like is Compass, we out had of

and fruition get so it it, feels just really when we to that of And XX only people It started like so now Vault. X great. it's It's right? feels coming innovative out

it's think and Because facts what is it's, I innovative this? it's the are and different wow, on our side. But

have just think our the released And end happy January, with the happy the of really ahead But we gosh. timing of be we skis. I better, So and get in I'm out really we don't team National, want With to have. I customers. and early couldn't Prescriber I'm them happy some

we work it, of the pretty next for that and service incentive the the on do But future data really if December That's think having released we we using a year. compensation hard customers the bright. happy way So with January. the are year, execute, over from but I that's product is it a to the got paying the in end set happy long

Bradley Sills

that upsell to that's while more, transition, that of cross-sell years, of to maybe Suite from sounds maybe the ability solutions, will kind of One platform. to the please, reacceleration Commercial guess, solutions at newer if Peter. I you're we transition years these and that's going have now, once may, these mean some It through that on we're X.X Cloud. the newer and point, I at on, due But a new that to weigh like optimistic. great, for cross-sell through point? here you should I better that will in understand opportunity X some the on that you're going That's the take the

Peter Gassner

by will the start don't gradually But up, the in want XXXX, make reacceleration, have that so, X or be still Veeva by out open ability far. will Well, be Hopefully, we certainly -- next and Because to the to XXXX, using then within but of in opening migrated. I years right? CRM up customers all terms I will certainly, in think. that there'll any XXXX they'll projections cross-sell

medicine it think a So for take Veeva industry, you that strong about it's as way correct think the the sciences we're right, about replatforming. could industry, to the This life to it. since in do you about replatforming, to has think it, this

positive a the to will not long it right revenue revenue term. short the and the the in but a It's be positive thing the to term, it's in

Germany think For field, the aware regionally could do building, the example, marketing the quite which be be and the because stuff we're U.S. life will that sciences. team. different will is in innovative this it it extra, way And is this I automation it in life extra sciences you Japan it aware will specific, extra, and be sales of be

team of team marketing use same control opposite data, all on let to all sales a your the you but same So marketing segment. of sales sales to use marketing operating inform part your sure, team, could the some automation your could our because for you campaign they're control or

inside it's not and Salesforce.com like industry So specific. of before. been having That's Marketo done

So these as coming you at center our and along. be able products the the can is service tell, excited I'm Summit center of call future, one, show the really especially about May, we'll some Customer to in

right it. yes, doesn't this So good taste it got that? for X X How we've medicine to years, or happy about about I'm take really now. But and

Operator

the Charles line come Cowen. Our of TD from final question Rhyee will with

Charles Rhyee

the at cadence And of how maybe of quarter, contracted op in should year? the Brent how win think sort is already the the the this more we give of year? in much much you to the color point? Obviously, guiding revenue then. just Any full just for that course you margins first through can secondly, do on the XX% questions, margins, of of course in then follow-up how over guidance, terms of year, subscription need for XX%. some maybe like you're guidance Really And

Brent Bowman

we say -- quarters. But of income op margin, we full again, executing Yes. between -- a regarding the the feel going really I guidance the op be that in QX. we we little always we're on movement efficiency overall, year would how have. What feel There's provided the for bit in about to good

additional going But color It not good about curve. the how I secondary executing your we're provide write down. subscription? your sorry, around question, that -- QX we I'm to So numbers. any and well, on and was it Then QX, slope other didn't of just feel that those know

Charles Rhyee

of that the is year? contracted In through you much need guidance, course the subscription revenue to win much how of versus already the how maybe

Brent Bowman

our say least I at was equally if is What not than Yes. better would times. is visibility previous it in good, as

more as deals. So part of ramping informed the close visibility we have get and and have that to we these we business continues

So visibility at good past. least in as is had as the we've

Operator

I'll to now the Peter any call back for hand Gassner closing remarks.

Peter Gassner

year like and Thanks our drive will interest questions our really the Veeva thanking come. work good that. a Veeva. for your for years help customers clarity. impact First appreciate and team have that Thank for everybody your partnership for growth and to and understanding And to I insightful their on and by I off, these more trust believe thanks then The everybody in you. the really major all industry the close the of in who thoughtful Veeva have I'd asked and to questions.

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