Billion Dollar Unicorns: Veeva Systems Executes Systematically

According to Accenture, the invasion of cloud technologies is revolutionizing the life sciences industry in three key ways – personalization; use of external innovation and data sources in the development of new products; and in leveraging a global operating model. Pleasanton, California-based Veeva (NYSE: VEEV), a Billion Dollar Unicorn player in this market, is witnessing robust growth and delivering stellar performance.

Veeva’s Financials

Veeva was initially set up to offer cloud-based customer relationship management and regulated content management solutions for the biotechnology industry. Today, its services help health care providers with access to payroll management, expense management, and customer relationship management services over the cloud. It offers drug sample tracking, electronic signature capture, and healthcare affiliations management along with content management capabilities such as content collection and organization, workflow, and approval processes.

Veeva recently announced its first quarter results that continued to impress the market. Revenues for the quarter grew 32% over the year to $157.9 million driven by a 33% increase in subscription revenues. For the quarter, subscription services revenues grew to $127.3 million. Revenues from professional services grew 29% to $30.64 million. Net income per share came in at $0.24, compared to $0.09 a year ago. The market was looking for revenues of $152.2 million with a net income of $0.22 per share.

For the current quarter, Veeva forecast revenues of $163-$164 million with an EPS of $0.20. The Street had forecast revenues of $160 million for the quarter with an EPS of $0.19. Veeva expects full-year revenues of $665-$669 million with an EPS of $0.82-$0.84 compared with earlier forecast of revenues of $655-$660 million with an EPS of $0.78-$0.80.

Veeva’s Product Expansion

Over the past few years, Veeva has been focused on product development. Veeva offers two key product suites – the Commercial Cloud and Veeva Vault. The Commercial Cloud offers customers with access to a wide range of services ranging from multi-channel planning and execution to complete customer insight and compliant content management. It offers ways to its customers to effectively engage with end users through preferred channels. It is seeing a strong adoption in the segment and during the quarter saw a great mix of enterprise customer expansions along with adoption by several new SMBs.

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Sramana Mitra is the founder of One Million by One Million (1M/1M), a global virtual incubator that aims to help one million entrepreneurs ...

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