(State or Other Jurisdiction of Incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Title of each class | Trading Symbol | Name of each exchange on which registered | ||
par value $0.00001 per share |
Emerging growth company | ||
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. | ☐ |
Item 2.02. | Results of Operations and Financial Condition. |
Item 9.01. | Financial Statements and Exhibits. |
(d) | Exhibits. |
Exhibit No. | Description | |
99.1 | ||
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
Veeva Systems Inc. | |||
By: | /s/ Timothy S. Cabral | ||
Timothy S. Cabral | |||
Chief Financial Officer | |||
Dated: | November 26, 2019 |
• | Revenues: Total revenues for the third quarter were $280.9 million, up from $224.7 million one year ago, an increase of 25% year-over-year. Subscription services revenues for the third quarter were $226.8 million, up from $178.2 million one year ago, an increase of 27% year-over-year. |
• | Operating Income and Non-GAAP Operating Income(1): Third quarter operating income was $80.8 million, compared to $63.1 million one year ago, an increase of 28% year-over-year. Non-GAAP operating income for the third quarter was $111.6 million, compared to $84.8 million one year ago, an increase of 32% year-over-year. |
• | Net Income and Non-GAAP Net Income(1): Third quarter net income was $82.2 million, compared to $64.1 million one year ago, an increase of 28% year-over-year. Non-GAAP net income for the third quarter was $95.4 million, compared to $70.6 million one year ago, an increase of 35% 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 $0.52, compared to $0.41 one year ago, while non-GAAP fully diluted net income per share was $0.60, compared to $0.45 one year ago. |
• | Veeva Acquires Crossix and Physicians World — The company recently closed two acquisitions, adding new solutions to Veeva Commercial Cloud. Crossix, the leader in privacy-safe patient data and analytics, provides complementary solutions and enables expansion into new areas. With the acquisition of Physicians World, a trusted provider of events services, Veeva addresses the industry’s growing demand for world-class events management software and services, all from one vendor. |
® 2019 Veeva Systems Inc. All rights reserved. Veeva and the Veeva logo are trademarks of Veeva Systems Inc. Veeva Systems Inc. owns other registered and unregistered trademarks. | ![]() |
• | Customer Success in Commercial Cloud Drives Market Share Gains — Veeva continued to expand its Commercial Cloud business with key wins. A top 50 pharma selected Veeva CRM for their European markets based upon their success in the U.S. Another top 50 pharma selected Veeva OpenData in the U.S. to improve field force effectiveness. |
• | Veeva Development Cloud Adoption Deepens — In the quarter, a top 20 pharma selected Veeva Vault QualityDocs as their enterprise standard, marking the first Veeva R&D application for this long-standing Commercial Cloud customer. The quarter also saw a major milestone with Veeva Vault CDMS now rolling out in a large-scale Phase 3 trial for more than 12,000 patients across 700 sites and 32 countries. |
• | Total revenues between $296 and $299 million. |
• | Non-GAAP operating income between $100 and $101 million(2). |
• | Non-GAAP fully diluted net income per share between $0.51 and $0.52(2). |
• | Total revenues between $1,088 and $1,091 million. |
• | Non-GAAP operating income between $409 and $410 million(2). |
• | Non-GAAP fully diluted net income per share between $2.16 and $2.17(2). |
• | Subscription revenue between $10 and 11 million(3). |
• | Services revenue between $3 and 4 million. |
• | Total revenues between $13 and $15 million(3). |
• | Non-GAAP operating loss of $6 million(2). |
• | Calculated billings of ~$30 million. |
What: | Veeva’s Fiscal 2020 Third Quarter Results Conference Call |
When: | Tuesday, November 26, 2019 |
Time: | 1:30 p.m. PT (4:30 p.m. ET) |
Live Call: | 1-833-235-5654, domestic |
1-647-689-4160, international | |
Conference ID 637 9736 | |
Webcast: | ir.veeva.com |
® 2019 Veeva Systems Inc. All rights reserved. Veeva and the Veeva logo are trademarks of Veeva Systems Inc. Veeva Systems Inc. owns other registered and unregistered trademarks. | 2 |
® 2019 Veeva Systems Inc. All rights reserved. Veeva and the Veeva logo are trademarks of Veeva Systems Inc. Veeva Systems Inc. owns other registered and unregistered trademarks. | 3 |
® 2019 Veeva Systems Inc. All rights reserved. Veeva and the Veeva logo are trademarks of Veeva Systems Inc. Veeva Systems Inc. owns other registered and unregistered trademarks. | 4 |
October 31, 2019 | January 31, 2019 | ||||||
Assets | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 892,581 | $ | 550,971 | |||
Short-term investments | 602,407 | 539,190 | |||||
Accounts receivable, net | 116,874 | 303,465 | |||||
Unbilled accounts receivable | 30,899 | 18,122 | |||||
Prepaid expenses and other current assets | 15,360 | 21,666 | |||||
Total current assets | 1,658,121 | 1,433,414 | |||||
Property and equipment, net(3) | 53,290 | 54,966 | |||||
Deferred costs, net | 29,873 | 30,869 | |||||
Lease right-of-use assets(3) | 24,055 | — | |||||
Goodwill | 95,804 | 95,804 | |||||
Intangible assets, net | 19,948 | 24,521 | |||||
Deferred income taxes, noncurrent | 6,455 | 5,938 | |||||
Other long-term assets | 12,895 | 8,254 | |||||
Total assets | $ | 1,900,441 | $ | 1,653,766 | |||
Liabilities and stockholders’ equity | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 9,914 | $ | 9,110 | |||
Accrued compensation and benefits | 15,977 | 15,324 | |||||
Accrued expenses and other current liabilities | 15,707 | 16,145 | |||||
Income tax payable | 7,195 | 4,086 | |||||
Deferred revenue | 250,674 | 356,357 | |||||
Lease liabilities(3) | 7,430 | — | |||||
Total current liabilities | 306,897 | 401,022 | |||||
Deferred income taxes, noncurrent | 9,042 | 6,095 | |||||
Lease liabilities, noncurrent(3) | 19,882 | — | |||||
Other long-term liabilities | 6,055 | 8,900 | |||||
Total liabilities | 341,876 | 416,017 | |||||
Stockholders’ equity: | |||||||
Class A common stock | 1 | 1 | |||||
Class B common stock | — | — | |||||
Additional paid-in capital | 704,915 | 617,623 | |||||
Accumulated other comprehensive income | 173 | 928 | |||||
Retained earnings(3) | 853,476 | 619,197 | |||||
Total stockholders’ equity | 1,558,565 | 1,237,749 | |||||
Total liabilities and stockholders’ equity | $ | 1,900,441 | $ | 1,653,766 |
® 2019 Veeva Systems Inc. All rights reserved. Veeva and the Veeva logo are trademarks of Veeva Systems Inc. Veeva Systems Inc. owns other registered and unregistered trademarks. | 5 |
Three months ended October 31, | Nine months ended October 31, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Revenues: | |||||||||||||||
Subscription services | $ | 226,760 | $ | 178,214 | $ | 642,187 | $ | 503,809 | |||||||
Professional services and other | 54,161 | 46,517 | 150,386 | 126,078 | |||||||||||
Total revenues | 280,921 | 224,731 | 792,573 | 629,887 | |||||||||||
Cost of revenues(4): | |||||||||||||||
Cost of subscription services | 31,964 | 28,335 | 93,822 | 87,394 | |||||||||||
Cost of professional services and other | 41,365 | 33,039 | 115,228 | 93,361 | |||||||||||
Total cost of revenues | 73,329 | 61,374 | 209,050 | 180,755 | |||||||||||
Gross profit | 207,592 | 163,357 | 583,523 | 449,132 | |||||||||||
Operating expenses(4): | |||||||||||||||
Research and development | 52,575 | 40,001 | 148,694 | 116,024 | |||||||||||
Sales and marketing | 45,524 | 37,699 | 130,962 | 110,306 | |||||||||||
General and administrative | 28,693 | 22,563 | 78,042 | 62,934 | |||||||||||
Total operating expenses | 126,792 | 100,263 | 357,698 | 289,264 | |||||||||||
Operating income | 80,800 | 63,094 | 225,825 | 159,868 | |||||||||||
Other income, net | 9,141 | 4,606 | 22,634 | 10,087 | |||||||||||
Income before income taxes | 89,941 | 67,700 | 248,459 | 169,955 | |||||||||||
Provision for income taxes | 7,696 | 3,615 | 13,523 | 11,274 | |||||||||||
Net income | $ | 82,245 | $ | 64,085 | $ | 234,936 | $ | 158,681 | |||||||
Net income per share: | |||||||||||||||
Basic | $ | 0.56 | $ | 0.44 | $ | 1.59 | $ | 1.10 | |||||||
Diluted | $ | 0.52 | $ | 0.41 | $ | 1.49 | $ | 1.02 | |||||||
Weighted-average shares used to compute net income per share: | |||||||||||||||
Basic | 148,157 | 144,737 | 147,467 | 143,765 | |||||||||||
Diluted | 158,750 | 156,025 | 158,124 | 155,706 | |||||||||||
Other comprehensive income: | |||||||||||||||
Net change in unrealized gains on available-for- sale investments | $ | 753 | $ | 33 | $ | 2,176 | $ | 695 | |||||||
Net change in cumulative foreign currency translation loss | (487 | ) | (1,153 | ) | (2,931 | ) | (3,534 | ) | |||||||
Comprehensive income | $ | 82,511 | $ | 62,965 | $ | 234,181 | $ | 155,842 | |||||||
_______________________ (4) Includes stock-based compensation as follows: | |||||||||||||||
Cost of revenues: | |||||||||||||||
Cost of subscription services | $ | 560 | $ | 405 | $ | 1,528 | $ | 1,166 | |||||||
Cost of professional services and other | 4,825 | 2,782 | 12,261 | 7,767 | |||||||||||
Research and development | 9,899 | 5,820 | 25,732 | 16,282 | |||||||||||
Sales and marketing | 6,882 | 4,825 | 19,207 | 13,743 | |||||||||||
General and administrative | 7,155 | 6,086 | 19,719 | 17,689 | |||||||||||
Total stock-based compensation | $ | 29,321 | $ | 19,918 | $ | 78,447 | $ | 56,647 |
® 2019 Veeva Systems Inc. All rights reserved. Veeva and the Veeva logo are trademarks of Veeva Systems Inc. Veeva Systems Inc. owns other registered and unregistered trademarks. | 6 |
Three months ended October 31, | Nine months ended October 31, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Cash flows from operating activities | |||||||||||||||
Net income | $ | 82,245 | $ | 64,085 | $ | 234,936 | $ | 158,681 | |||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||||
Depreciation and amortization | 5,643 | 3,383 | 16,642 | 10,477 | |||||||||||
Accretion of discount on short-term investments | (722 | ) | (848 | ) | (2,996 | ) | (1,380 | ) | |||||||
Stock-based compensation | 29,321 | 19,918 | 78,447 | 56,647 | |||||||||||
Amortization of deferred costs | 4,832 | 4,595 | 14,524 | 13,697 | |||||||||||
Deferred income taxes | 432 | 1,824 | 1,771 | 2,642 | |||||||||||
Gain on foreign currency from mark-to-market derivative | (74 | ) | (19 | ) | (112 | ) | (182 | ) | |||||||
Bad debt expense (recovery) | 270 | 84 | (42 | ) | 262 | ||||||||||
Changes in operating assets and liabilities: | |||||||||||||||
Accounts receivable | 28,319 | 21,658 | 186,633 | 134,353 | |||||||||||
Unbilled accounts receivable | (9,515 | ) | (5,212 | ) | (12,777 | ) | (6,641 | ) | |||||||
Deferred costs | (4,500 | ) | (4,504 | ) | (13,528 | ) | (11,426 | ) | |||||||
Income taxes payable | 3,909 | 1,029 | 4,858 | 525 | |||||||||||
Other current and long-term assets | 5,610 | (6,018 | ) | 1,513 | (9,527 | ) | |||||||||
Accounts payable | 1,253 | 2,982 | 1,216 | 3,520 | |||||||||||
Accrued expenses and other current liabilities | (1,682 | ) | 406 | 231 | (3,698 | ) | |||||||||
Deferred revenue | (78,326 | ) | (62,860 | ) | (105,637 | ) | (70,616 | ) | |||||||
Lease liabilities | (1,625 | ) | — | (5,143 | ) | — | |||||||||
Other long-term liabilities | (3,886 | ) | 1,053 | (2,270 | ) | 1,620 | |||||||||
Net cash provided by operating activities | 61,504 | 41,556 | 398,266 | 278,954 | |||||||||||
Cash flows from investing activities | |||||||||||||||
Purchases of short-term investments | (190,695 | ) | (214,839 | ) | (628,784 | ) | (589,070 | ) | |||||||
Maturities and sales of short-term investments | 194,661 | 130,137 | 571,398 | 447,947 | |||||||||||
Purchases of property and equipment | (881 | ) | (4,163 | ) | (3,167 | ) | (5,558 | ) | |||||||
Capitalized internal-use software development costs | (356 | ) | (495 | ) | (1,061 | ) | (1,009 | ) | |||||||
Net cash provided by (used in) investing activities | 2,729 | (89,360 | ) | (61,614 | ) | (147,690 | ) | ||||||||
Cash flows from financing activities | |||||||||||||||
Reduction of lease liabilities - finance leases | (241 | ) | — | (729 | ) | — | |||||||||
Proceeds from exercise of common stock options | 1,607 | 4,867 | 8,618 | 19,728 | |||||||||||
Net cash provided by financing activities | 1,366 | 4,867 | 7,889 | 19,728 | |||||||||||
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | (487 | ) | (1,154 | ) | (2,931 | ) | (3,530 | ) | |||||||
Net change in cash, cash equivalents, and restricted cash | 65,112 | (44,091 | ) | 341,610 | 147,462 | ||||||||||
Cash, cash equivalents, and restricted cash at beginning of period | 828,676 | 512,940 | 552,178 | 321,387 | |||||||||||
Cash, cash equivalents, and restricted cash at end of period | $ | 893,788 | $ | 468,849 | $ | 893,788 | $ | 468,849 |
® 2019 Veeva Systems Inc. All rights reserved. Veeva and the Veeva logo are trademarks of Veeva Systems Inc. Veeva Systems Inc. owns other registered and unregistered trademarks. | 7 |
• | 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 under FASB ASC Topic 718, 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. |
• | Deferred compensation associated with the Zinc Ahead business acquisition. The Zinc Ahead share purchase agreement, as revised, called for share purchase consideration to be deferred and paid at a rate of one-third of the deferred consideration amount per year to certain former Zinc Ahead employee shareholders and option holders who remain employed with Veeva on each deferred consideration payment date. In accordance with GAAP, these payments are being accounted for as deferred compensation and the expense is recognized over the requisite service period. Veeva’s management views this deferred compensation expense as an unusual acquisition cost associated with the Zinc Ahead acquisition and finds it useful to exclude it in order to assess the appropriate level of various operating expenses to assist in budgeting, planning and forecasting future periods. Veeva believes excluding this deferred compensation expense may allow investors to make more meaningful comparisons between its recurring operating results and those of other companies. |
• | 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, purchased intangibles, and deferred compensation associated with the Zinc Ahead business acquisition for GAAP and non-GAAP measures. |
® 2019 Veeva Systems Inc. All rights reserved. Veeva and the Veeva logo are trademarks of Veeva Systems Inc. Veeva Systems Inc. owns other registered and unregistered trademarks. | 8 |
® 2019 Veeva Systems Inc. All rights reserved. Veeva and the Veeva logo are trademarks of Veeva Systems Inc. Veeva Systems Inc. owns other registered and unregistered trademarks. | 9 |
Three months ended October 31, | Nine months ended October 31, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Cost of subscription services revenues on a GAAP basis | $ | 31,964 | $ | 28,335 | $ | 93,822 | $ | 87,394 | |||||||
Stock-based compensation expense | (560 | ) | (405 | ) | (1,528 | ) | (1,166 | ) | |||||||
Amortization of purchased intangibles | (688 | ) | (690 | ) | (2,043 | ) | (2,397 | ) | |||||||
Cost of subscription services revenues on a non-GAAP basis | $ | 30,716 | $ | 27,240 | $ | 90,251 | $ | 83,831 | |||||||
Gross margin on subscription services revenues on a GAAP basis | 85.9 | % | 84.1 | % | 85.4 | % | 82.7 | % | |||||||
Stock-based compensation expense | 0.2 | 0.2 | 0.2 | 0.2 | |||||||||||
Amortization of purchased intangibles | 0.4 | 0.4 | 0.3 | 0.5 | |||||||||||
Gross margin on subscription services revenues on a non-GAAP basis | 86.5 | % | 84.7 | % | 85.9 | % | 83.4 | % | |||||||
Cost of professional services and other revenues on a GAAP basis | $ | 41,365 | $ | 33,039 | $ | 115,228 | $ | 93,361 | |||||||
Stock-based compensation expense | (4,825 | ) | (2,782 | ) | (12,261 | ) | (7,767 | ) | |||||||
Deferred compensation associated with Zinc Ahead acquisition | — | (4 | ) | — | (14 | ) | |||||||||
Cost of professional services and other revenues on a non-GAAP basis | $ | 36,540 | $ | 30,253 | $ | 102,967 | $ | 85,580 | |||||||
Gross margin on professional services and other revenues on a GAAP basis | 23.6 | % | 29.0 | % | 23.4 | % | 25.9 | % | |||||||
Stock-based compensation expense | 8.9 | 6.0 | 8.2 | 6.2 | |||||||||||
Gross margin on professional services and other revenues on a non-GAAP basis | 32.5 | % | 35.0 | % | 31.6 | % | 32.1 | % | |||||||
Gross profit on a GAAP basis | $ | 207,592 | $ | 163,357 | $ | 583,523 | $ | 449,132 | |||||||
Stock-based compensation expense | 5,385 | 3,187 | 13,789 | 8,933 | |||||||||||
Amortization of purchased intangibles | 688 | 690 | 2,043 | 2,397 | |||||||||||
Deferred compensation associated with Zinc Ahead acquisition | — | 4 | — | 14 | |||||||||||
Gross profit on a non-GAAP basis | $ | 213,665 | $ | 167,238 | $ | 599,355 | $ | 460,476 | |||||||
Gross margin on total revenues on a GAAP basis | 73.9 | % | 72.7 | % | 73.6 | % | 71.3 | % | |||||||
Stock-based compensation expense | 1.9 | 1.4 | 1.7 | 1.4 | |||||||||||
Amortization of purchased intangibles | 0.3 | 0.3 | 0.3 | 0.4 | |||||||||||
Gross margin on total revenues on a non-GAAP basis | 76.1 | % | 74.4 | % | 75.6 | % | 73.1 | % | |||||||
Research and development expense on a GAAP basis | $ | 52,575 | $ | 40,001 | $ | 148,694 | $ | 116,024 | |||||||
Stock-based compensation expense | (9,899 | ) | (5,820 | ) | (25,732 | ) | (16,282 | ) | |||||||
Deferred compensation associated with Zinc Ahead acquisition | — | (71 | ) | — | (289 | ) | |||||||||
Research and development expense on a non-GAAP basis | $ | 42,676 | $ | 34,110 | $ | 122,962 | $ | 99,453 | |||||||
Sales and marketing expense on a GAAP basis | $ | 45,524 | $ | 37,699 | $ | 130,962 | $ | 110,306 | |||||||
Stock-based compensation expense | (6,882 | ) | (4,825 | ) | (19,207 | ) | (13,743 | ) | |||||||
Amortization of purchased intangibles | (802 | ) | (977 | ) | (2,530 | ) | (2,901 | ) | |||||||
Deferred compensation associated with Zinc Ahead acquisition | — | (10 | ) | — | (40 | ) | |||||||||
Sales and marketing expense on a non-GAAP basis | $ | 37,840 | $ | 31,887 | $ | 109,225 | $ | 93,622 | |||||||
General and administrative expense on a GAAP basis | $ | 28,693 | $ | 22,563 | $ | 78,042 | $ | 62,934 | |||||||
Stock-based compensation expense | (7,155 | ) | (6,086 | ) | (19,719 | ) | (17,689 | ) | |||||||
General and administrative expense on a non-GAAP basis | $ | 21,538 | $ | 16,477 | $ | 58,323 | $ | 45,245 | |||||||
® 2019 Veeva Systems Inc. All rights reserved. Veeva and the Veeva logo are trademarks of Veeva Systems Inc. Veeva Systems Inc. owns other registered and unregistered trademarks. | 10 |
Three months ended October 31, | Nine months ended October 31, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Operating expense on a GAAP basis | $ | 126,792 | $ | 100,263 | $ | 357,698 | $ | 289,264 | |||||||
Stock-based compensation expense | (23,936 | ) | (16,731 | ) | (64,658 | ) | (47,714 | ) | |||||||
Amortization of purchased intangibles | (802 | ) | (977 | ) | (2,530 | ) | (2,901 | ) | |||||||
Deferred compensation associated with Zinc Ahead acquisition | — | (81 | ) | — | (329 | ) | |||||||||
Operating expense on a non-GAAP basis | $ | 102,054 | $ | 82,474 | $ | 290,510 | $ | 238,320 | |||||||
Operating income on a GAAP basis | $ | 80,800 | $ | 63,094 | $ | 225,825 | $ | 159,868 | |||||||
Stock-based compensation expense | 29,321 | 19,918 | 78,447 | 56,647 | |||||||||||
Amortization of purchased intangibles | 1,490 | 1,667 | 4,573 | 5,298 | |||||||||||
Deferred compensation associated with Zinc Ahead acquisition | — | 85 | — | 343 | |||||||||||
Operating income on a non-GAAP basis | $ | 111,611 | $ | 84,764 | $ | 308,845 | $ | 222,156 | |||||||
Operating margin on a GAAP basis | 28.8 | % | 28.1 | % | 28.5 | % | 25.4 | % | |||||||
Stock-based compensation expense | 10.4 | 8.9 | 9.9 | 9.0 | |||||||||||
Amortization of purchased intangibles | 0.5 | 0.7 | 0.6 | 0.8 | |||||||||||
Deferred compensation associated with Zinc Ahead acquisition | — | — | — | 0.1 | |||||||||||
Operating margin on a non-GAAP basis | 39.7 | % | 37.7 | % | 39.0 | % | 35.3 | % | |||||||
Net income on a GAAP basis | $ | 82,245 | $ | 64,085 | $ | 234,936 | $ | 158,681 | |||||||
Stock-based compensation expense | 29,321 | 19,918 | 78,447 | 56,647 | |||||||||||
Amortization of purchased intangibles | 1,490 | 1,667 | 4,573 | 5,298 | |||||||||||
Deferred compensation associated with Zinc Ahead acquisition | — | 85 | — | 343 | |||||||||||
Income tax effect on non-GAAP adjustments(1) | (17,662 | ) | (15,153 | ) | (56,088 | ) | (37,497 | ) | |||||||
Net income on a non-GAAP basis | $ | 95,394 | $ | 70,602 | $ | 261,868 | $ | 183,472 | |||||||
Diluted net income per share on a GAAP basis | $ | 0.52 | $ | 0.41 | $ | 1.49 | $ | 1.02 | |||||||
Stock-based compensation expense | 0.18 | 0.13 | 0.50 | 0.36 | |||||||||||
Amortization of purchased intangibles | 0.01 | 0.01 | 0.02 | 0.03 | |||||||||||
Deferred compensation associated with Zinc Ahead acquisition | — | — | — | — | |||||||||||
Income tax effect on non-GAAP adjustments(1) | (0.11 | ) | (0.10 | ) | (0.35 | ) | (0.23 | ) | |||||||
Diluted net income per share on a non-GAAP basis | $ | 0.60 | $ | 0.45 | $ | 1.66 | $ | 1.18 |
(1) | For the three and nine months ended October 31, 2019 and 2018, management used an estimated annual effective non-GAAP tax rate of 21.0%. |
® 2019 Veeva Systems Inc. All rights reserved. Veeva and the Veeva logo are trademarks of Veeva Systems Inc. Veeva Systems Inc. owns other registered and unregistered trademarks. | 11 |
Cover Page Cover Page |
Nov. 26, 2019 |
---|---|
Cover page. | |
Document Type | 8-K |
Document Period End Date | Nov. 26, 2019 |
Entity Registrant Name | Veeva Systems Inc. |
Entity Incorporation, State or Country Code | DE |
Entity File Number | 001-36121 |
Entity Tax Identification Number | 20-8235463 |
Entity Address, Address Line One | 4280 Hacienda Drive |
Entity Address, City or Town | Pleasanton |
Entity Address, State or Province | CA |
Entity Address, Postal Zip Code | 94588 |
City Area Code | 925 |
Local Phone Number | 452-6500 |
Written Communications | false |
Soliciting Material | false |
Pre-commencement Tender Offer | false |
Pre-commencement Issuer Tender Offer | false |
Title of 12(b) Security | Class A Common Stock,par value $0.00001 per share |
Trading Symbol | VEEV |
Security Exchange Name | NYSE |
Entity Emerging Growth Company | false |
Amendment Flag | false |
Entity Central Index Key | 0001393052 |