Veeva Systems Inc (NYSE:VEEV), a leading provider of industry cloud solutions for life sciences, today announced results for its fiscal first quarter ended April 30, 2016.
“It’s been a great start to the year. Simply outstanding execution by the team and strength in every one of our markets — across Commercial Cloud and Vault — contributed to a fantastic first quarter,” said CEO Peter Gassner. “I am also pleased to announce today the further expansion of Veeva’s industry cloud with yet another major Vault product.”
Fiscal 2017 First Quarter Results:
- Revenues: Total revenues for the first quarter were $119.8 million, up from $89.9 million one year ago, an increase of 33% year-over-year. Subscription services revenues for the first quarter were $96.0 million, up from $68.9 million one year ago, an increase of 39% year-over-year.
- Operating income and non-GAAP operating income(1): First quarter operating income was $17.8 million, compared to $20.9 million one year ago, a decrease of 15% year-over-year. Non-GAAP operating income for the first quarter was $29.4 million, compared to $26.3 million one year ago, an increase of 12% year-over-year.
- Net income and non-GAAP net income(1): First quarter net income was $12.5 million, compared to $13.0 million one year ago, a decrease of 4% year-over-year. Non-GAAP net income for the first quarter was $21.2 million, compared to $17.1 million one year ago, an increase of 23% year-over-year.
- Net income per share and non-GAAP net income per share(1): For the first quarter, fully diluted net income per share was $0.09, compared to $0.09 one year ago, while non-GAAP fully diluted net income per share was $0.15, compared to $0.12 one year ago.
“We had yet another exceptional quarter, posting results ahead of guidance and delivering high growth and profitability,” said CFO Tim Cabral. “Cash flow was also a standout in the first quarter, with the addition of more than $100 million to the balance sheet.”
- Continued Industry Cloud Innovation – Veeva announced its latest application, Veeva Vault QMS for quality management, the company’s second major application for the quality area and 10th Vault application in all. Veeva also announced the availability of Veeva Network Product Master for a single, authoritative view of product information globally.
- Strategic Commercial Cloud Wins and Expansions – In the first quarter, a top 20 pharmaceutical company started its first Veeva CRM project in one region with the possibility to expand globally over time. Also in the quarter, a recently added top 10 pharmaceutical customer expanded its initial Veeva CRM deployment to new divisions.
- New Product Success – Veeva Vault Registrations and Veeva Vault SubmissionsArchive, the company’s newest regulatory solutions released in December 2015, gained significant traction with eleven customers to date. The latest Veeva CRM add-ons, Veeva CRM Events Management and Veeva Align, saw significant global go-lives in the first quarter and major new wins.
Veeva is providing guidance for its fiscal second quarter ending July 31, 2016 as follows:
- Total revenues between $125.5 and $127.0 million.
- Non-GAAP operating income between $30.0 and $30.5 million(2).
- Non-GAAP fully diluted net income per share of $0.13(2).
Veeva is updating guidance for its fiscal year ending January 31, 2017 as follows:
- Total revenues between $516.0 and $520.0 million.
- Non-GAAP operating income between $127.0 and $131.0 million(2).
- Non-GAAP fully diluted net income per share between $0.55 and $0.57(2). (Original Source)
Shares of Veeva Systems are up nearly 7% to $31.83 in after-hours trading. VEEV has a 1-year high of $30 and a 1-year low of $19.97. The stock’s 50-day moving average is $27.15 and its 200-day moving average is $26.07.
On the ratings front, Veeva has been the subject of a number of recent research reports. In a report issued on May 20, Morgan Stanley analyst Stan Zlotsky reiterated a Buy rating on VEEV, with a price target of $32, which implies an upside of 6.8% from current levels. Separately, on March 2, Needham’s Scott Berg reiterated a Buy rating on the stock and has a price target of $33.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Stan Zlotsky and Scott Berg have a total average return of 4.8% and -0.2% respectively. Zlotsky has a success rate of 72.7% and is ranked #1533 out of 3869 analysts, while Berg has a success rate of 51.2% and is ranked #2572.
The street is mostly Bullish on VEEV stock. Out of 6 analysts who cover the stock, 4 suggest a Buy rating and 2 recommend to Hold the stock. The 12-month average price target assigned to the stock is $32.67, which represents a potential upside of 9.1% from where the stock is currently trading.
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.