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1. Company Snapshot

1.a. Company Description

Veeva Systems Inc.provides cloud-based software for the life sciences industry in North America, Europe, the Asia Pacific, the Middle East, Africa, and Latin America.The company offers Veeva Commercial Cloud, a suite of software, data, and analytics solutions, which include Veeva customer relationship management (CRM) and Veeva Medical CRM, Veeva CLM, Veeva CRM MyInsights, Veeva CLM, Veeva CRM Approved Email, Veeva CRM Engage, Veeva Align, Veeva CRM Events Management, Veeva Nitro, Veeva OpenData, Veeva Link, Veeva Network, Veeva Crossix, Veeva Data Cloud, and MyVeeva for Patients; and Veeva Vault, a cloud-based enterprise content and data management applications for managing commercial functions, including sales and marketing, and medical content and communications, as well as research and development functions, such as clinical, regulatory, quality, and safety.


It also provides professional and support services in the areas of implementation and deployment planning and project management; requirements analysis, solution design, and configuration; systems environment management and deployment services; services focused on advancing or transforming business and operating processes related to Veeva solutions; technical consulting services related to data migration and systems integrations; training on its solutions; and ongoing managed services that include outsourced systems administration.The company was formerly known as Verticals onDemand, Inc.and changed its name to Veeva Systems Inc.


in April 2009.Veeva Systems Inc.was incorporated in 2007 and is headquartered in Pleasanton, California.

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1.b. Last Insights on VEEV

Veeva Systems' recent performance was negatively impacted by analysts cutting their forecasts despite the company's strong Q4 earnings and revenue beat. The company's 16% revenue growth and upbeat FY27 outlook were overshadowed by rising costs and a cautious outlook. Veeva's expanding AI capabilities and major life sciences partnerships are growth drivers, but increasing costs remain a concern. The stock has a "Moderate Buy" rating from analysts, with 18 buy ratings and 6 hold ratings (Marketbeat.com).

1.c. Company Highlights

2. Veeva's Strong Q4 Results and Guidance Drive Optimism

Veeva's Q4 results were impressive, with total revenue reaching $836 million and non-GAAP operating income of $366 million. For the full year, total revenue was $3.195 billion, and non-GAAP operating income was $1.434 billion, demonstrating a strong finish to the year. The company's actual EPS of $2.06 beat estimates of $1.94, showcasing its robust financial performance. The revenue growth was driven by the company's strong execution, particularly in the basics area, and the acceleration of customer count growth to 5%.

Publication Date: Mar -06

📋 Highlights
  • Strong FY2024 Financials:: Total revenue reached $3.195 billion with non-GAAP operating income of $1.434 billion, exceeding guidance and Q4 revenue hit $836 million.
  • CRM Growth Projection:: Vault CRM is forecasted to represent ~10% of total revenue by 2030, driven by 140 live customers and cross-selling opportunities.
  • AI Integration Momentum:: AI readiness is enhancing data and automation, with 10 top-20 pharma customers adopting Vault CRM and partnerships like Anthropic’s Claude for Life Sciences.
  • 2027 Guidance:: Subscription growth of 13% and normalized billings of 11% expected, fueled by new products (RTSM, EDC) and R&D/commercial expansion.
  • Customer Growth Acceleration:: 5% year-over-year customer count growth, driven by Vault CRM adoption and a 14% win rate outside the top 20 pharmaceutical companies.

CRM Business and AI Readiness

Veeva's CRM business is expected to be around 10% of total revenue by 2030, with a stable growth trajectory. The company is seeing some influence from AI readiness in its business, particularly in areas such as data and automation. The partnership with Anthropic on Claude for Life Sciences is seen as a positive, enabling the development of long-tail applications. Veeva sees opportunities for growth, particularly in commercial content creation, with clear ROI potential.

Customer Growth and Cross-Selling Opportunities

Veeva saw an acceleration to 5% growth in customer count, driven by strong execution from the team. The company has 140 customers live on Vault CRM and is seeing opportunities for cross-selling other products, such as Network and OpenData. The company targets to have 14 of the top 20 pharmaceutical companies on Vault CRM, with most decisions made and a few expected to happen over the next couple of months.

Guidance and Outlook

For fiscal 2027, Veeva expects subscription growth of 13% and normalized billings growth of 11%. The company sees a mix shift in growth coming from new products like RTSM and EDC, and growth in commercial and R&D. The guidance assumes no significant changes in the macro environment, but conversations with customers indicate cautious optimism. Analysts estimate next year's revenue growth at 13.0%, which is in line with the company's guidance.

Valuation Metrics

Looking at Veeva's valuation metrics, the P/E Ratio is 35.45, P/S Ratio is 10.09, and EV/EBITDA is 32.32. These metrics suggest that the market is pricing in a certain level of growth and profitability. With a strong track record of execution and a clear vision for the future, Veeva is well-positioned to drive continued growth and value creation.

3. NewsRoom

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Caerus Investment Advisors LLC Invests $994,000 in Veeva Systems Inc. $VEEV

09:02

Source: defenseworld.net

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Brevan Howard Capital Management LP Lowers Stock Holdings in Veeva Systems Inc. $VEEV

Mar -17

Source: defenseworld.net

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How Much Upside is Left in Veeva (VEEV)? Wall Street Analysts Think 52.1%

Mar -16

Source: zacks.com

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Veeva Systems Inc. $VEEV Shares Bought by Alliancebernstein L.P.

Mar -15

Source: defenseworld.net

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Is Veeva Systems a Multimillionaire-Maker Stock?

Mar -14

Source: fool.com

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Veeva Acquires Ostro to Expand AI-Powered Engagement in Life Sciences

Mar -13

Source:

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Capital International Investors Trims Position in Veeva Systems Inc. $VEEV

Mar -12

Source: defenseworld.net

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Veeva Systems Inc. $VEEV Shares Sold by Crossmark Global Holdings Inc.

Mar -12

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (11.90%)

6. Segments

Internet Software & Services

Expected Growth: 11.9%

The expected growth rate is based on the global revenue growth hypothesis. Veeva's strong position in the life sciences industry, coupled with the growing demand for cloud-based software solutions, supports this growth rate. The company's consistent innovation and expansion into new areas within the life sciences sector further justify this expectation.

7. Detailed Products

Veeva CRM

A cloud-based customer relationship management (CRM) solution designed specifically for the life sciences industry.

Veeva Vault

A cloud-based content management platform that enables life sciences companies to manage regulated content, including documents, images, and videos.

Veeva Network

A cloud-based master data management solution that enables life sciences companies to manage their customer and product data.

Veeva Commercial Cloud

A cloud-based commercial platform that enables life sciences companies to manage their commercial operations, including sales, marketing, and customer service.

Veeva QualityOne

A cloud-based quality management system (QMS) that enables life sciences companies to manage their quality processes, including document control, training, and audits.

Veeva R&D

A cloud-based research and development (R&D) platform that enables life sciences companies to manage their R&D processes, including clinical trials, regulatory submissions, and product development.

8. Veeva Systems Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Veeva Systems Inc. has a low threat of substitutes due to its unique cloud-based software solutions for the life sciences industry, making it difficult for competitors to replicate its offerings.

Bargaining Power Of Customers

Veeva Systems Inc. has a medium bargaining power of customers, as its customers are primarily large pharmaceutical and biotechnology companies that have some negotiating power, but are also dependent on Veeva's specialized software solutions.

Bargaining Power Of Suppliers

Veeva Systems Inc. has a low bargaining power of suppliers, as it is a dominant player in the life sciences software market and has a strong negotiating position with its suppliers.

Threat Of New Entrants

Veeva Systems Inc. has a low threat of new entrants, as the life sciences software market is highly specialized and requires significant expertise and resources to enter, making it difficult for new competitors to emerge.

Intensity Of Rivalry

Veeva Systems Inc. operates in a moderately competitive market, with a few established players, but its strong brand recognition and customer loyalty help to mitigate the intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 1.19%
Debt Cost 3.95%
Equity Weight 98.81%
Equity Cost 7.74%
WACC 7.69%
Leverage 1.20%

11. Quality Control: Veeva Systems Inc. passed 7 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
HCA Healthcare

A-Score: 6.4/10

Value: 6.7

Growth: 7.2

Quality: 5.0

Yield: 2.0

Momentum: 9.0

Volatility: 8.3

1-Year Total Return ->

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Amgen

A-Score: 6.3/10

Value: 2.9

Growth: 5.0

Quality: 6.8

Yield: 6.0

Momentum: 9.0

Volatility: 8.3

1-Year Total Return ->

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Cencor

A-Score: 5.9/10

Value: 3.4

Growth: 6.7

Quality: 4.3

Yield: 2.0

Momentum: 9.5

Volatility: 9.7

1-Year Total Return ->

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Stock-Card
Veeva Systems

A-Score: 5.5/10

Value: 1.3

Growth: 8.1

Quality: 8.9

Yield: 0.0

Momentum: 8.0

Volatility: 6.7

1-Year Total Return ->

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Stock-Card
GE HealthCare

A-Score: 4.2/10

Value: 4.2

Growth: 3.8

Quality: 6.2

Yield: 0.0

Momentum: 4.5

Volatility: 6.7

1-Year Total Return ->

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Stock-Card
Centene

A-Score: 3.8/10

Value: 9.5

Growth: 5.6

Quality: 3.3

Yield: 0.0

Momentum: 0.5

Volatility: 4.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

184.03$

Current Price

184.03$

Potential

-0.00%

Expected Cash-Flows