Veeva Systems Inc (NYSE:VEEV) announced results for its fiscal third quarter ended October 31, 2016.
“Our ability to execute across multiple large markets, along with a track record of bringing real cloud innovation and a commitment to the customer, is fundamental to our model,” said CEO Peter Gassner. “This cycle of customer success and our expanding portfolio of cloud solutions fueled strong performance in the quarter and positions us well for continued expansion.”
Fiscal 2017 Third Quarter Results:
- Revenues: Total revenues for the third quarter were $142.8 million, up from $106.9 million one year ago, an increase of 34% year-over-year. Subscription services revenues for the third quarter were $113.6 million, up from $81.7 million one year ago, an increase of 39% year-over-year.
- Operating income and non-GAAP operating income(1): Third quarter operating income was $33.8 million, compared to $20.1 million one year ago, an increase of 68% year-over-year. Non-GAAP operating income for the third quarter was $47.5 million, compared to $28.2 million one year ago, an increase of 69% year-over-year.
- Net income and non-GAAP net income(1): Third quarter net income was $21.6 million, compared to $10.5 million one year ago, an increase of 106% year-over-year. Non-GAAP net income for the third quarter was $31.7 million, compared to $16.9 million one year ago, an increase of 88% year-over-year.
- Net income per share and non-GAAP net income per share(1): For the third quarter, fully diluted net income per share was $0.15, compared to $0.07 one year ago, while non-GAAP fully diluted net income per share was $0.22, compared to $0.12 one year ago.
“Consistently strong demand across product lines drove better than expected revenue and profitability in the third quarter,” said CFO Tim Cabral. “We continue to execute well against our multi-billion dollar market opportunity and remain slightly ahead of our revenue target for 2020.”
- Innovating in Clinical Data Management: Veeva announced its plan to bring a modern cloud approach to clinical data management with the launch of Veeva Vault EDCTM andVeeva Vault eSourceTM to dramatically cut cost and complexity in clinical trials. Together with Vault CTMSTM, Vault eTMFTM, and Vault Study StartupTM, Veeva will deliver the only suite of unified cloud applications that streamline clinical operations and clinical data management, from study start-up to archive.
- Continued Global Momentum with Commercial Cloud: Veeva’s fiscal third quarter saw a number of notable Veeva Commercial CloudTM wins around the world, with top 20 pharmaceutical companies as they increasingly look to Veeva to enable greater commercial agility and efficiency. Key projects also continued successfully, including a new top 20 pharmaceutical with a U.S. go-live, its first-ever Veeva CRMTM project, setting the foundation for future expansion.
- Successful Veeva R&D Summit: Veeva R&D Summit, now in its third year, grew more than 50% to over 650 attendees. More than 130 leading life sciences companies joined the two-day event to learn and share their successes with Veeva’s unified suites of applications for clinical, regulatory, and quality.
Veeva is providing guidance for its fiscal fourth quarter ending January 31, 2017 as follows:
- Total revenues between $145.0 and $146.0 million.
- Non-GAAP operating income between $40.0 and $41.0 million.
- Non-GAAP fully diluted net income per share of $0.17.
This fourth quarter guidance implies the following for Veeva’s fiscal year ending January 31, 2017:
- Total revenues between $538.9 and $539.9 million.
- Non-GAAP operating income between $153.7 and $154.7 million.
- Non-GAAP fully diluted net income per share of $0.68. (Original Source)
Shares of Veeva are up nearly 6% to $44.00 in after-hours trading. VEEV has a 1-year high of $44 and a 1-year low of $19.97. The stock’s 50-day moving average is $38.87 and its 200-day moving average is $36.46.
On the ratings front, VEEV stock has been the subject of a number of recent research reports. In a report issued on October 14, Needham analyst Scott Berg reiterated a Buy rating on VEEV, with a price target of $46, which represents a potential upside of 10% from where the stock is currently trading. Separately, on October 13, JMP’s Rishi Jaluria initiated coverage with a Hold rating on the stock .
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Scott Berg and Rishi Jaluria have a yearly average return of 7.8% and 6.1% respectively. Berg has a success rate of 59% and is ranked #481 out of 4235 analysts, while Jaluria has a success rate of 50% and is ranked #2223.
Overall, 2 research analysts have assigned a Hold rating and 5 research analysts have given a Buy rating to the stock. When considering if perhaps the stock is under or overvalued, the average price target is $45.25 which is 8.5% above where the stock opened today.
Veeva Systems, Inc. provides industry-specific, cloud-based software solutions for the life sciences industry. Its solutions enable pharmaceutical and other life sciences companies to realize the benefits of modern cloud-based architectures and mobile applications for their most critical business functions, without compromising industry-specific functionality or regulatory compliance. The company’s customer relationship management solutions enable its customers to increase the productivity and compliance of their sales and marketing functions. Its regulated content management and collaboration solutions enable its customers to more efficiently manage a range of highly regulated, content-centric processes across the enterprise. The company’s customer master solution enables customers to more effectively manage complex healthcare provider and healthcare organization data.