EX-99.1 2 veev-20240731q225xex991.htm EX-99.1 Document



Exhibit 99.1
pa01.jpg
FOR IMMEDIATE RELEASE
Veeva Announces Fiscal 2025 Second Quarter Results
Total Revenues of $676.2M, up 15% Year Over Year;
Subscription Services Revenues of $561.3M, up 19% Year Over Year

PLEASANTON, CA - August 28, 2024 - Veeva Systems Inc. (NYSE: VEEV), a leading provider of industry cloud solutions for the global life sciences industry, today announced results for its second quarter ended July 31, 2024.
“It was another quarter of great execution, with major product advances in clinical and CRM that position us well for the industry cloud opportunity we see ahead,” said CEO Peter Gassner. “Thanks to the team’s focus on product excellence and customer success, we also had some very strategic wins that can pave the way for future opportunities.”
Fiscal 2025 Second Quarter Results:
•Revenues(1): Total revenues for the second quarter were $676.2 million, up from $590.2 million one year ago, an increase of 15% year over year. Subscription services revenues for the second quarter were $561.3 million, up from $470.6 million one year ago, an increase of 19% year over year.
•Operating Income and Non-GAAP Operating Income(1)(2): Second quarter operating income was $166.5 million, compared to $104.0 million one year ago, an increase of 60% year over year. Non-GAAP operating income for the second quarter was $279.8 million, compared to $211.9 million one year ago, an increase of 32% year over year.
•Net Income and Non-GAAP Net Income(1)(2): Second quarter net income was $171.0 million, compared to $111.6 million one year ago, an increase of 53% year over year. Non-GAAP net income for the second quarter was $267.3 million, compared to $198.0 million one year ago, an increase of 35% year over year.
•Net Income per Share and Non-GAAP Net Income per Share(1)(2): For the second quarter, fully diluted net income per share was $1.04, compared to $0.68 one year ago, while non-GAAP fully diluted net income per share was $1.62, compared to $1.21 one year ago.
“We delivered strong financial performance in the second quarter, driven by execution across the business,” said interim CFO and Board Director Tim Cabral. “We have a large opportunity ahead in life sciences, and have the right product strategy and operating model to deliver profitable growth through 2030 and beyond.”
Recent Highlights:
•Vault CRM Suite Expands with Service Center – Veeva reached a significant milestone on its path to connect sales, marketing, medical, and service to enable true customer centricity with the release of Vault CRM Service Center this month. Veeva also added 14 new Vault CRM customers in the quarter.
© 2024 Veeva Systems Inc. All rights reserved. Veeva, V, Vault and Crossix are registered trademarks of Veeva Systems Inc.
oa01.jpg
1


•Veeva Clinical Platform Innovations Drive Greater Speed and Efficiency – The new release of Veeva Site Connect added significant capabilities to streamline and simplify the clinical trial process for sites and biopharma sponsors. Site Connect is gaining momentum including a win with its seventh top 20 biopharma. Also in clinical, Veeva Clinical Database (CDB), a major innovation in clinical data, has been selected by seven top 20 biopharmas to reduce manual query work and increase speed and efficiency in trials.
•Customer Success and Product Excellence Fuel Long-Term Opportunity – Based upon Veeva’s track record of customer success, product excellence, and innovation, in Q2 a top 20 biopharma, with only one prior Veeva Development Cloud product, standardized on the full Vault RIM Suite for regulatory and Vault CTMS for clinical. Veeva also made major progress with emerging biotechs and added 12 Vault Basics customers in the quarter following its April release.
Financial Outlook:
Veeva is providing guidance for its fiscal third quarter ending October 31, 2024 as follows:
•Total revenues between $682 and $685 million.
•Non-GAAP operating income between $273 and $275 million(3).
•Non-GAAP fully diluted net income per share between $1.57 and $1.58(3).
Veeva is providing updated guidance for its fiscal year ending January 31, 2025 as follows:
•Total revenues between $2,704 and $2,710 million.
•Non-GAAP operating income of about $1,080 million(3).
•Non-GAAP fully diluted net income per share of approximately $6.22(3).
Conference Call Information
Prepared remarks and an investor presentation providing additional information and analysis can be found on Veeva's investor relations website at ir.veeva.com. Veeva will host a Q&A conference call at 2:00 p.m. PT today, August 28, 2024, and a replay of the call will be available on Veeva's investor relations website.
What:Veeva Systems Fiscal 2025 Second Quarter Results Conference Call
When:Wednesday, August 28, 2024
Time:2:00 p.m. PT (5:00 p.m. ET)
Online Registration: https://registrations.events/direct/Q4I255069
Webcast:ir.veeva.com






© 2024 Veeva Systems Inc. All rights reserved. Veeva, V, Vault and Crossix are registered trademarks of Veeva Systems Inc.
oa01.jpg
2


___________
(1) The customer contracting change that standardized termination for convenience (TFC) rights in our master subscription agreements resulted in a change in the timing of revenue for certain customer contracts and reduced revenues, operating income and non-GAAP operating income, and net income and non-GAAP net income in the second quarter of fiscal 2024.
(2) This press release uses non-GAAP financial metrics that are adjusted for the impact of various GAAP items. See the section titled “Non-GAAP Financial Measures” and the tables entitled “Reconciliation of GAAP to Non-GAAP Financial Measures” below for details.
(3) Veeva is not able, at this time, to provide GAAP targets for operating income and fully diluted net income per share for the third fiscal quarter ending October 31, 2024 or the fiscal year ending January 31, 2025 because of the difficulty of estimating certain items excluded from non-GAAP operating income and non-GAAP fully diluted net income per share that cannot be reasonably predicted, such as charges related to stock-based compensation expense. The effect of these excluded items may be significant.
About Veeva Systems
Veeva is the global leader in cloud software for the life sciences industry. Committed to innovation, product excellence, and customer success, Veeva serves more than 1,000 customers, ranging from the world’s largest pharmaceutical companies to emerging biotechs. As a Public Benefit Corporation, Veeva is committed to balancing the interests of all stakeholders, including customers, employees, shareholders and the industries it serves. For more information, visit veeva.com.
Veeva uses its ir.veeva.com website as a means of disclosing material non-public information, announcing upcoming investor conferences, and for complying with its disclosure obligations under Regulation FD. Accordingly, you should monitor our investor relations website in addition to following our press releases, SEC filings, and public conference calls and webcasts.
Forward-looking Statements
This release contains forward-looking statements regarding Veeva’s expected future performance and, in particular, includes quotes from management and guidance, provided as of August 28, 2024, about Veeva’s expected future financial results. Estimating guidance accurately for future periods is difficult. It involves assumptions and internal estimates that may prove to be incorrect and is based on plans that may change. Hence, there is a significant risk that actual results could differ materially from the guidance we have provided in this release and we have no obligation to update such guidance. There are also numerous risks that have the potential to negatively impact our financial performance, including issues related to the performance, availability, security, or privacy of our products, competitive factors, customer decisions and priorities, events that impact the life sciences industry, general macroeconomic and geopolitical events (including inflationary pressures, changes in interest rates, currency exchange fluctuations and impacts related to Russia’s invasion of Ukraine and the Israel-Hamas conflict), and issues that impact our ability to hire, retain and adequately compensate talented employees. We have summarized what we believe are the principal risks to our business in a section titled “Summary of Risk Factors” on pages 35 and 36 in our filing on Form 10-Q for the period ended April 30, 2024 which you can find here. Additional details on the risks and uncertainties that may impact our business can be found in the same filing on Form 10-Q and in our subsequent SEC filings, which you can access at sec.gov. We recommend that you familiarize yourself with these risks and uncertainties before making an investment decision.

###
Investor Relations Contact:
Media Contact:
Gunnar Hansen
Maria Scurry
Veeva Systems Inc.
Veeva Systems Inc.
267-460-5839
781-366-7617
ir@veeva.com
pr@veeva.com
© 2024 Veeva Systems Inc. All rights reserved. Veeva, V, Vault and Crossix are registered trademarks of Veeva Systems Inc.
oa01.jpg
3


VEEVA SYSTEMS INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
July 31,
2024		January 31,
2024
Assets
Current assets:
Cash and cash equivalents$1,165,754 $703,487 
Short-term investments3,719,324 3,324,269 
Accounts receivable, net364,719 852,172 
Unbilled accounts receivable39,432 36,365 
Prepaid expenses and other current assets78,614 86,918 
Total current assets5,367,843 5,003,211 
Property and equipment, net56,685 58,532 
Deferred costs, net23,439 23,916 
Lease right-of-use assets43,146 45,602 
Goodwill439,877 439,877 
Intangible assets, net53,339 63,017 
Deferred income taxes291,044 233,463 
Other long-term assets55,464 43,302 
Total assets$6,330,837 $5,910,920 
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable$28,307 $31,513 
Accrued compensation and benefits37,151 43,433 
Accrued expenses and other current liabilities32,801 32,980 
Income tax payable5,616 11,862 
Deferred revenue956,381 1,049,761 
Lease liabilities
10,182 9,334 
Total current liabilities1,070,438 1,178,883 
Deferred income taxes591 2,052 
Lease liabilities, noncurrent43,912 46,441 
Other long-term liabilities31,198 38,720 
Total liabilities1,146,139 1,266,096 
Stockholders’ equity:
Class A common stock2 2 
Additional paid-in capital2,117,109 1,915,002 
Accumulated other comprehensive loss(5,575)(10,637)
Retained earnings3,073,162 2,740,457 
Total stockholders’ equity5,184,698 4,644,824 
Total liabilities and stockholders’ equity
$6,330,837 $5,910,920 


© 2024 Veeva Systems Inc. All rights reserved. Veeva, V, Vault and Crossix are registered trademarks of Veeva Systems Inc.
oa01.jpg
4


VEEVA SYSTEMS INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(In thousands, except per share data)
(Unaudited)
Three months ended July 31,Six months ended July 31,
2024202320242023
Revenues:
Subscription services(4)
$561,277 $470,637 $1,095,232 $885,183 
Professional services and other(5)
114,904 119,588 231,294 231,367 
Total revenues676,181 590,225 1,326,526 1,116,550 
Cost of revenues(6):
Cost of subscription services78,791 71,169 156,939 138,744 
Cost of professional services and other91,581 97,849 187,317 196,937 
Total cost of revenues170,372 169,018 344,256 335,681 
Gross profit505,809 421,207 982,270 780,869 
Operating expenses(6):
Research and development176,429 157,228 339,140 304,188 
Sales and marketing101,528 96,995 198,829 185,498 
General and administrative61,365 62,935 122,642 125,604 
Total operating expenses339,322 317,158 660,611 615,290 
Operating income166,487 104,049 321,659 165,579 
Other income, net58,573 38,826 110,302 69,074 
Income before income taxes225,060 142,875 431,961 234,653 
Income tax provision
54,019 31,247 99,256 (8,496)
Net income$171,041 $111,628 $332,705 $243,149 
Net income per share:
Basic$1.06 $0.70 $2.06 $1.52 
Diluted$1.04 $0.68 $2.02 $1.49 
Weighted-average shares used to compute net income per share:
Basic161,708 160,396 161,566 160,129 
Diluted164,564 163,284 164,497 162,989 
Other comprehensive income:
Net change in unrealized gain (loss) on available-for-sale investments$25,175 $(8,891)$6,314 $(3,463)
Net change in cumulative foreign currency translation (loss) gain(104)267 (1,252)209 
Comprehensive income$196,112 $103,004 $337,767 $239,895 
(4) Includes subscription services revenues from the following product areas:
Veeva Commercial Solutions$271,810 $243,430 $533,126 $482,754 
Veeva R&D Solutions289,467 227,207 562,106 402,429 
Total subscription services$561,277 $470,637 $1,095,232 $885,183 
(5) Includes professional services and other revenues from the following product areas:
Veeva Commercial Solutions$45,068 $47,319 $93,840 $92,183 
Veeva R&D Solutions69,836 72,269 137,454 139,184 
Total professional services and other$114,904 $119,588 $231,294 $231,367 
(6) Includes stock-based compensation as follows:
Cost of revenues:
Cost of subscription services$1,642 $1,748 $3,196 $3,253 
Cost of professional services and other13,176 14,216 25,711 26,938 
Research and development48,984 45,292 90,727 84,198 
Sales and marketing23,671 23,489 46,714 43,624 
General and administrative20,903 18,150 37,939 35,601 
Total stock-based compensation$108,376 $102,895 $204,287 $193,614 
© 2024 Veeva Systems Inc. All rights reserved. Veeva, V, Vault and Crossix are registered trademarks of Veeva Systems Inc.
oa01.jpg
5


VEEVA SYSTEMS INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
Six months ended July 31,
20242023
Cash flows from operating activities
Net income$332,705 $243,149 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization19,519 15,636 
Reduction of operating lease right-of-use assets5,508 6,025 
Accretion of discount on short-term investments
(14,254)(10,783)
Stock-based compensation204,287 193,614 
Amortization of deferred cost7,651 9,301 
Deferred income taxes(59,801)(46,727)
Gain on foreign currency from mark-to-market derivative(107)(547)
Bad debt expense234 496 
Changes in operating assets and liabilities:
Accounts receivable487,219 323,493 
Unbilled accounts receivable(3,067)44,633 
Deferred costs(7,174)61 
Other current and long-term assets4,344 9,245 
Accounts payable(3,343)8,054 
Accrued expenses and other current liabilities(5,517)(1,129)
Income taxes payable(6,246)19,197 
Deferred revenue(103,652)(36,083)
Operating lease liabilities(4,666)(4,290)
Other long-term liabilities2,750 (2,373)
Net cash provided by operating activities856,390 770,972 
Cash flows from investing activities
Purchases of short-term investments(1,392,297)(1,600,566)
Maturities and sales of short-term investments1,017,605 696,793 
Long-term assets(11,528)(12,551)
Net cash used in investing activities(386,220)(916,324)
Cash flows from financing activities
Proceeds from exercise of common stock options34,834 38,228 
Taxes paid related to net share settlement of equity awards(42,490)(37,043)
Net cash (used in) provided by financing activities(7,656)1,185 
Effect of exchange rate changes on cash, cash equivalents, and restricted cash(1,252)309 
Net change in cash, cash equivalents, and restricted cash461,262 (143,858)
Cash, cash equivalents, and restricted cash at beginning of period706,670 889,650 
Cash, cash equivalents, and restricted cash at end of period$1,167,932 $745,792 
Supplemental disclosures of other cash flow information:
Excess tax benefits from employee stock plans$4,262 $65,300 
© 2024 Veeva Systems Inc. All rights reserved. Veeva, V, Vault and Crossix are registered trademarks of Veeva Systems Inc.
oa01.jpg
6


Non-GAAP Financial Measures
In Veeva’s public disclosures, Veeva has provided non-GAAP measures, which it defines as financial information that has not been prepared in accordance with generally accepted accounting principles in the United States, or GAAP. In addition to its GAAP measures, Veeva uses these non-GAAP financial measures internally for budgeting and resource allocation purposes and in analyzing its financial results. For the reasons set forth below, Veeva believes that excluding the following items provides information that is helpful in understanding its operating results, evaluating its future prospects, comparing its financial results across accounting periods, and comparing its financial results to its peers, many of which provide similar non-GAAP financial measures.
•Excess tax benefits. Excess tax benefits from employee stock plans are dependent on previously agreed-upon equity grants to our employees, vesting of those grants, stock price, and exercise behavior of our employees, which can fluctuate from quarter to quarter. Because these fluctuations are not directly related to our business operations, Veeva excludes excess tax benefits for its internal management reporting processes. Veeva management also finds it useful to exclude excess tax benefits when assessing the level of cash provided by operating activities. Given the nature of the excess tax benefits, Veeva believes excluding it allows investors to make meaningful comparisons between our operating cash flows from quarter to quarter and those of other companies.
•Stock-based compensation expenses. Veeva excludes stock-based compensation expenses primarily because they are non-cash expenses that Veeva excludes from its internal management reporting processes. Veeva’s management also finds it useful to exclude these expenses when they assess the appropriate level of various operating expenses and resource allocations when budgeting, planning and forecasting future periods. Moreover, because of varying available valuation methodologies, subjective assumptions and the variety of award types that companies can use, Veeva believes excluding stock-based compensation expenses allows investors to make meaningful comparisons between our recurring core business operating results and those of other companies.
•Amortization of purchased intangibles. Veeva incurs amortization expense for purchased intangible assets in connection with acquisitions of certain businesses and technologies. Amortization of intangible assets is a non-cash expense and is inconsistent in amount and frequency because it is significantly affected by the timing, size of acquisitions and the inherent subjective nature of purchase price allocations. Because these costs have already been incurred and cannot be recovered, and are non-cash expenses, Veeva excludes these expenses for its internal management reporting processes. Veeva’s management also finds it useful to exclude these charges when assessing the appropriate level of various operating expenses and resource allocations when budgeting, planning and forecasting future periods. Investors should note that the use of intangible assets contributed to Veeva’s revenues earned during the periods presented and will contribute to Veeva’s future period revenues as well.
•Litigation settlement. We exclude costs related to the settlement of certain litigation matters because they are non-recurring and outside the ordinary course of business. Because these costs are unrelated to our day-to-day business operations, we believe excluding them enables more consistent evaluation of our operating results.
•Income tax effects on the difference between GAAP and non-GAAP costs and expenses. The income tax effects that are excluded relate to the imputed tax impact on the difference between GAAP and non-GAAP costs and expenses due to stock-based compensation and purchased intangibles for GAAP and non-GAAP measures.
There are limitations to using non-GAAP financial measures because non-GAAP financial measures are not prepared in accordance with GAAP and may be different from non-GAAP financial measures provided by other companies. The non-GAAP financial measures are limited in value because they exclude certain items that may have a material impact upon our reported financial results. In addition, they are subject to inherent limitations as they reflect the exercise of judgments by Veeva’s management about which items are adjusted to calculate its non-GAAP financial measures. Veeva compensates for these limitations by analyzing current and future results on a GAAP basis as well as a non-GAAP basis and also by providing GAAP measures in its public disclosures.
Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Veeva encourages its investors and others to review its financial information in its entirety, not to rely on any single financial measure to evaluate its business, and to view its non-GAAP financial
© 2024 Veeva Systems Inc. All rights reserved. Veeva, V, Vault and Crossix are registered trademarks of Veeva Systems Inc.
oa01.jpg
7


measures in conjunction with the most directly comparable GAAP financial measures. A reconciliation of GAAP to the non-GAAP financial measures has been provided in the tables below.
© 2024 Veeva Systems Inc. All rights reserved. Veeva, V, Vault and Crossix are registered trademarks of Veeva Systems Inc.
oa01.jpg
8
VEEVA SYSTEMS INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(Dollars in thousands)
(Unaudited)

The following tables reconcile the specific items excluded from GAAP metrics in the calculation of non-GAAP metrics for the periods shown below:

Reconciliation of Net Cash Provided by Operating Activities (GAAP basis to non-GAAP basis)Three months ended July 31,Six months ended July 31,
2024202320242023
Net cash provided by operating activities on a GAAP basis$92,874 $265,036 $856,390 $770,972 
Excess tax benefits from employee stock plans(1,141)(3,211)(4,262)(65,300)
Net cash provided by operating activities on a non-GAAP basis$91,733 $261,825 $852,128 $705,672 
Net cash used in investing activities on a GAAP basis$(113,842)$(618,930)$(386,220)$(916,324)
Net cash (used in) provided by financing activities on a GAAP basis$(11,484)$2,577 $(7,656)$1,185 
Reconciliation of Financial Measures (GAAP basis to non-GAAP basis)Three months ended July 31,Six months ended July 31,
2024202320242023
Cost of subscription services revenues on a GAAP basis$78,791 $71,169 $156,939 $138,744 
Stock-based compensation expense(1,642)(1,748)(3,196)(3,253)
Amortization of purchased intangibles(1,123)(1,126)(2,222)(2,216)
Cost of subscription services revenues on a non-GAAP basis$76,026 $68,295 $151,521 $133,275 
Gross margin on subscription services revenues on a GAAP basis86.0 %84.9 %85.7 %84.3 %
Stock-based compensation expense0.3 0.4 0.3 0.3 
Amortization of purchased intangibles0.2 0.2 0.2 0.3 
Gross margin on subscription services revenues on a non-GAAP basis86.5 %85.5 %86.2 %84.9 %
Cost of professional services and other revenues on a GAAP basis$91,581 $97,849 $187,317 $196,937 
Stock-based compensation expense(13,176)(14,216)(25,711)(26,938)
Amortization of purchased intangibles(138)(139)(273)(273)
Cost of professional services and other revenues on a non-GAAP basis$78,267 $83,494 $161,333 $169,726 
Gross margin on professional services and other revenues on a GAAP basis20.3 %18.2 %19.0 %14.9 %
Stock-based compensation expense11.5 11.9 11.1 11.6 
Amortization of purchased intangibles0.1 0.1 0.1 0.1 
Gross margin on professional services and other revenues on a non-GAAP basis31.9 %30.2 %30.2 %26.6 %
Gross profit on a GAAP basis$505,809 $421,207 $982,270 $780,869 
Stock-based compensation expense14,818 15,964 28,907 30,191 
Amortization of purchased intangibles1,261 1,265 2,495 2,489 
Gross profit on a non-GAAP basis$521,888 $438,436 $1,013,672 $813,549 
Gross margin on total revenues on a GAAP basis74.8 %71.4 %74.0 %69.9 %
Stock-based compensation expense2.2 2.7 2.2 2.7 
Amortization of purchased intangibles0.2 0.2 0.2 0.3 
Gross margin on total revenues on a non-GAAP basis77.2 %74.3 %76.4 %72.9 %
Research and development expense on a GAAP basis$176,429 $157,228 $339,140 $304,188 
Stock-based compensation expense(48,984)(45,292)(90,727)(84,198)
Amortization of purchased intangibles(28)(29)(56)(56)
Research and development expense on a non-GAAP basis$127,417 $111,907 $248,357 $219,934 
© 2024 Veeva Systems Inc. All rights reserved. Veeva, V, Vault and Crossix are registered trademarks of Veeva Systems Inc.
oa01.jpg
9
VEEVA SYSTEMS INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (continued)
(Dollars in thousands, except per share data)
(Unaudited)
Three months ended July 31,Six months ended July 31,
2024202320242023
Sales and marketing expense on a GAAP basis$101,528 $96,995 $198,829 $185,498 
Stock-based compensation expense(23,671)(23,489)(46,714)(43,624)
Amortization of purchased intangibles(3,546)(3,555)(7,014)(6,995)
Sales and marketing expense on a non-GAAP basis$74,311 $69,951 $145,101 $134,879 
General and administrative expense on a GAAP basis$61,365 $62,935 $122,642 $125,604 
Stock-based compensation expense(20,903)(18,150)(37,939)(35,601)
Amortization of purchased intangibles(57)(57)(113)(112)
Litigation settlement
— — (5,000)— 
General and administrative expense on a non-GAAP basis$40,405 $44,728 $79,590 $89,891 
Operating expense on a GAAP basis$339,322 $317,158 $660,611 $615,290 
Stock-based compensation expense(93,558)(86,931)(175,380)(163,423)
Amortization of purchased intangibles(3,631)(3,641)(7,183)(7,163)
Litigation settlement
— — (5,000)— 
Operating expense on a non-GAAP basis$242,133 $226,586 $473,048 $444,704 
Operating income on a GAAP basis$166,487 $104,049 $321,659 $165,579 
Stock-based compensation expense108,376 102,895 204,287 193,614 
Amortization of purchased intangibles4,892 4,906 9,678 9,652 
Litigation settlement
— — 5,000 — 
Operating income on a non-GAAP basis$279,755 $211,850 $540,624 $368,845 
Operating margin on a GAAP basis24.6 %17.6 %24.2 %14.8 %
Stock-based compensation expense16.0 17.4 15.4 17.3 
Amortization of purchased intangibles0.8 0.9 0.8 0.9 
Litigation settlement
— — 0.4 — 
Operating margin on a non-GAAP basis41.4 %35.9 %40.8 %33.0 %
Net income on a GAAP basis$171,041 $111,628 $332,705 $243,149 
Stock-based compensation expense108,376 102,895 204,287 193,614 
Amortization of purchased intangibles4,892 4,906 9,678 9,652 
Litigation settlement
— — 5,000 — 
Income tax effect on non-GAAP adjustments(7)
(17,030)(21,395)(37,438)(100,459)
Net income on a non-GAAP basis$267,279 $198,034 $514,232 $345,956 
Diluted net income per share on a GAAP basis$1.04 $0.68 $2.02 $1.49 
Stock-based compensation expense0.66 0.63 1.24 1.19 
Amortization of purchased intangibles0.03 0.03 0.06 0.06 
Litigation settlement
— — 0.03 — 
Income tax effect on non-GAAP adjustments(7)
(0.11)(0.13)(0.22)(0.62)
Diluted net income per share on a non-GAAP basis$1.62 $1.21 $3.13 $2.12 
________________________
(7) For the three and six months ended July 31, 2024 and 2023, management used an estimated annual effective non-GAAP
tax rate of 21.0%.
© 2024 Veeva Systems Inc. All rights reserved. Veeva, V, Vault and Crossix are registered trademarks of Veeva Systems Inc.
oa01.jpg
10