Press Releases

Veeva Announces Fiscal 2023 Third Quarter Results

Total Revenues of $552.4M, up 16% Year Over Year;
Subscription Services Revenues of $441.6M, up 16% Year Over Year

PLEASANTON, CA – December 1, 2022 — Veeva Systems Inc. (NYSE: VEEV), a leading provider of industry cloud solutions for the global life sciences industry, today announced results for its third quarter ended October 31, 2022.

“Consistent execution and strong innovation have us tracking a year ahead of our 2025 targets and set up for significant growth toward 2030 and beyond,” said CEO Peter Gassner. “Thanks to the team’s focus on customer success and product excellence, our impact and strategic partnership with the industry is increasing.”

Fiscal 2023 Third Quarter Results:

  • Revenues: Total revenues for the third quarter were $552.4 million, up from $476.1 million one year ago, an increase of 16% year over year. Subscription services revenues for the third quarter were $441.6 million, up from $380.7 million one year ago, an increase of 16% year over year.

  • Operating Income and Non-GAAP Operating Income (1): Third quarter operating income was $121.4 million, compared to $132.7 million one year ago, a decrease of 9% year over year. Non-GAAP operating income for the third quarter was $219.5 million, compared to $199.4 million one year ago, an increase of 10% year over year.

  • Net Income and Non-GAAP Net Income (1): Third quarter net income was $108.5 million, compared to $105.9 million one year ago, an increase of 2% year over year. Non-GAAP net income for the third quarter was $183.2 million, compared to $158.2 million one year ago, an increase of 16% 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 $0.67, compared to $0.65 one year ago, while non-GAAP fully diluted net income per share was $1.13, compared to $0.97 one year ago.

“In the third quarter, we delivered strong financial performance across the board including results above our guidance,” said CFO Brent Bowman. “We are well positioned for durable and profitable growth as we execute on the large opportunities in commercial and R&D.”

Recent Highlights:

  • Groundbreaking Strategic Partnership — Veeva established a 10-year strategic partnership agreement with Merck, known as MSD outside of the United States and Canada, which builds on an existing 12-year partnership. Merck will take a Veeva-first approach to new industry-specific software and data, selecting Veeva products when they are fit for purpose. The partnership helps accelerate Merck’s digital strategy and makes it more efficient to evaluate, purchase, operate, and create value from Veeva products. This agreement is the first of its kind for Veeva, supporting its vision to become the most strategic partner to the life sciences industry.

  • Expanding Clinical Leadership — The Veeva Vault Platform is delivering a unified suite of products that help customers manage their clinical operations more efficiently and speed drug development. These products are becoming the preferred choice among life sciences companies with more than 450 customers using Veeva Vault eTMF and more than 175 customers using Veeva Vault CTMS.

  • Veeva Vault Safety Reaches Critical Milestone — The first top 20 pharma customer went live with Vault Safety across their main divisions and most countries. Drug safety and pharmacovigilance is one of the most complex and critical areas for pharmaceutical companies. The successful go-live demonstrates Vault Safety’s product readiness for the enterprise and Veeva’s commitment to customer success and product excellence.

Financial Outlook:

Veeva is providing guidance for its fiscal fourth quarter ending January 31, 2023 as follows:

  • Total revenues between $551 and $553 million.

  • Non-GAAP operating income of about $199 million(2).

  • Non-GAAP fully diluted net income per share of approximately $1.05(2).

Veeva is providing updated guidance for its fiscal year ending January 31, 2023 as follows:

  • Total revenues between $2,143 and $2,145 million.

  • Non-GAAP operating income of about $820 million(2).

  • Non-GAAP fully diluted net income per share of approximately $4.19(2).

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, December 1, 2022, and a replay of the call will be available on Veeva’s investor relations website.

What:

Veeva Systems Fiscal 2023 Third Quarter Results Conference Call

When:

Thursday, December 1, 2022

Time:

2:00 p.m. PT (5:00 p.m. ET)

Online Registration:

https://conferencingportals.com/event/badXudFz

Webcast:

ir.veeva.com

 

___________

(1) 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.

(2) Veeva is not able, at this time, to provide GAAP targets for operating income and fully diluted net income per share for the fourth fiscal quarter ending January 31, 2023 or fiscal year ending January 31, 2023 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 and employer payroll taxes on CEO stock transactions. 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 December 1, 2022 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 as a result of competitive factors, customer decisions and priorities, events that impact the life sciences industry, issues related to the security or performance of our products, issues that impact our ability to hire, retain and adequately compensate talented employees, the pandemic, fluctuations in foreign currency exchange rates, and general macroeconomic and geopolitical events (including inflationary pressures and impacts related to Russia’s invasion of Ukraine). We have summarized what we believe are the principal risks to our business in a section titled “Summary of Risk Factors” on pages 39 and 40 in our filing on Form 10-Q for the period ended July 31, 2022 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.

VEEVA SYSTEMS INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)

(Unaudited)



October 31,
2022


January 31,
2022

Assets




Current assets:




Cash and cash equivalents

$         865,159


$      1,138,040

Short-term investments

2,157,396


1,238,064

Accounts receivable, net

242,859


631,134

Unbilled accounts receivable

82,085


63,266

Prepaid expenses and other current assets

38,986


36,679

Total current assets

3,386,485


3,107,183

Property and equipment, net

51,135


54,495

Deferred costs, net

27,875


33,106

Lease right-of-use assets

57,249


49,640

Goodwill

439,877


439,877

Intangible assets, net

87,382


101,940

Deferred income taxes

98,573


5,097

Other long-term assets

34,141


25,127

Total assets

$      4,182,717


$      3,816,465





Liabilities and stockholders equity




Current liabilities:




Accounts payable

$           40,926


$           20,348

Accrued compensation and benefits

40,265


33,834

Accrued expenses and other current liabilities

32,860


36,109

Income tax payable

54,466


7,761

Deferred revenue

510,098


731,746

Lease liabilities

11,665


10,981

Total current liabilities

690,280


840,779

Deferred income taxes

1,546


2,216

Lease liabilities, noncurrent

50,225


43,607

Other long-term liabilities

21,874


18,226

Total liabilities

763,925


904,828

Stockholders’ equity:




Class A common stock

2


2

Class B common stock


Additional paid-in capital

1,438,213


1,196,547

Accumulated other comprehensive loss

(45,642)


(11,958)

Retained earnings

2,026,219


1,727,046

Total stockholders’ equity

3,418,792


2,911,637

Total liabilities and stockholders equity

$      4,182,717


$      3,816,465

 

VEEVA SYSTEMS INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(In thousands, except per share data)

(Unaudited)



Three months ended
October 31,


Nine months ended
October 31,


2022


2021


2022


2021

Revenues:








Subscription services(3)

$ 441,569


$ 380,738


$  1,272,850


$  1,088,293

Professional services and other(4)

110,782


95,373


318,821


276,985

Total revenues

552,351


476,111


1,591,671


1,365,278

Cost of revenues (5):








Cost of subscription services

65,734


59,648


188,722


164,774

Cost of professional services and other

88,173


69,916


256,369


203,023

Total cost of revenues

153,907


129,564


445,091


367,797

Gross profit

398,444


346,547


1,146,580


997,481

Operating expenses (5):








Research and development

130,257


98,635


377,740


276,760

Sales and marketing

93,910


72,423


259,642


208,822

General and administrative

52,873


42,781


159,030


126,121

Total operating expenses

277,040


213,839


796,412


611,703

Operating income

121,404


132,708


350,168


385,778

Other income, net

12,458


824


23,565


7,054

Income before income taxes

133,862


133,532


373,733


392,832

Provision for income taxes

25,405


27,663


74,560


62,538

Net income

$ 108,457


$ 105,869


$ 299,173


$  330,294

Net income per share:








Basic

$       0.70


$       0.69


$       1.93


$       2.16

Diluted

$       0.67


$       0.65


$       1.84


$       2.03

Weighted-average shares used to compute net income per share:








Basic

155,392


153,514


154,958


153,020

Diluted

162,295


163,034


162,189


162,663

Other comprehensive income:








Net change in unrealized loss on available-for-sale investments

$  (17,499)


$    (2,741)


$  (30,722)


$    (4,044)

Net change in cumulative foreign currency translation loss

(808)


(308)


(2,962)


(2,686)

Comprehensive income

$   90,150


$ 102,820


$ 265,489


$  323,564









(3) Includes subscription services revenues from the following product areas:








Veeva Commercial Solutions

$ 239,276


$ 223,183


$ 703,356


$  649,156

Veeva R&D Solutions

202,293


157,555


569,494


439,137

Total subscription services

$ 441,569


$ 380,738


$  1,272,850


$  1,088,293









(4) Includes professional services and other revenues from the following product areas:








Veeva Commercial Solutions

$   45,283


$   41,675


$ 133,027


$  124,241

Veeva R&D Solutions

65,499


53,698


185,794


152,744

Total professional services and other

$ 110,782


$   95,373


$ 318,821


$  276,985









(5) Includes stock-based compensation as follows:








Cost of revenues:








Cost of subscription services

1,636


1,292


$     4,606


3,514

Cost of professional services and other

13,227


9,616


$   37,035


26,579

Research and development

37,415


22,311


102,139


61,463

Sales and marketing

23,576


15,102


64,500


41,772

General and administrative

17,333


13,724


48,083


39,591

Total stock-based compensation

$   93,187


$   62,045


$ 256,363


$  172,919

 

VEEVA SYSTEMS INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)



Three months ended
October 31,


Nine months ended
October 31,


2022


2021


2022


2021

Cash flows from operating activities








Net income

$     108,457


$     105,869


$     299,173


$     330,294

Adjustments to reconcile net income to net cash provided by operating activities:








Depreciation and amortization

7,157


6,899


21,443


20,407

Reduction of operating lease right-of-use assets

3,094


2,855


9,062


8,556

(Accretion) amortization of discount on short-term investments

(1,565)


1,574


(1,016)


4,859

Stock-based compensation

93,187


62,045


256,363


172,919

Amortization of deferred costs

5,378


6,597


17,107


19,426

Deferred income taxes

(31,056)


(2,021)


(84,369)


10,174

 Loss (gain) on foreign currency from mark-to-market derivative

7


(65)


1,193


368

Bad debt expense

1,089


58


1,210


195

Changes in operating assets and liabilities:








Accounts receivable

69,272


72,147


387,066


352,470

Unbilled accounts receivable

(4,307)


(16,870)


(18,819)


(20,764)

Deferred costs

(5,376)


(3,353)


(11,876)


(11,445)

Other current and long-term assets

7,326


4,407


(3,750)


3,278

Accounts payable

10,002


4,028


20,663


2,265

Accrued expenses and other current liabilities

5,465


(537)


2,654


8,646

Income taxes payable

49,323


12,010


46,705


11,993

Deferred revenue

(174,544)


(141,083)


(222,013)


(199,042)

Operating lease liabilities

(2,624)


(2,941)


(7,736)


(8,602)

Other long-term liabilities

2,375


1,340


4,013


4,412

Net cash provided by operating activities

142,660


112,959


717,073


710,409

Cash flows from investing activities








Purchases of short-term investments

(710,833)


(256,008)


(1,716,250)


(935,626)

Maturities and sales of short-term investments

310,713


248,093


757,434


657,062

Acquisitions, net of cash and restricted cash acquired




(2,133)

Long-term assets

(5,609)


(2,314)


(9,605)


(10,295)

Net cash used in investing activities

(405,729)


(10,229)


(968,421)


(290,992)

Cash flows from financing activities








Changes in lease liabilities – finance leases




(384)

Proceeds from exercise of common stock options

4,575


5,368


30,116


43,310

Taxes paid related to net share settlement of equity awards

(15,118)


(21,414)


(47,251)


(36,510)

Net cash (used in) provided by financing activities

(10,543)


(16,046)


(17,135)


6,416

Effect of exchange rate changes on cash, cash equivalents, and restricted cash

(1,475)


(1,469)


(4,398)


(4,414)

Net change in cash, cash equivalents, and restricted cash

(275,087)


85,215


(272,881)


421,419

Cash, cash equivalents, and restricted cash at beginning of period

1,143,431


1,067,916


1,141,225


731,712

Cash, cash equivalents, and restricted cash at end of period

$     868,344


$  1,153,131


$     868,344


$  1,153,131









Supplemental disclosures of other cash flow information:








Excess tax benefits from employee stock plans

$            888


$       10,404


$         5,981


$       45,464

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.

  • Impact of tax legislation. Veeva excludes the direct cash payments associated with the newly effective tax legislation requiring the capitalization of certain research and development expenses for purposes of calculating non-GAAP operating cash flows. Veeva does not believe the impact resulting from changes in the tax treatment of research and development costs to be indicative of its operating performance, nor does Veeva management consider such impact in assessing the level of cash provided by operating activities. Accordingly, Veeva believes excluding the impact of this change in tax law provides for better evaluation of its current operating performance and comparison to past operating results.

  • 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.

  • 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 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.

 

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
October 31,


Nine months ended
October 31,



2022


2021


2022


2021


Net cash provided by operating activities

$                 142,660


$  112,959


$                   717,073


$                   710,409


Excess tax benefits from employee stock plans

(888)


(10,404)


(5,981)


(45,464)


Impact of tax legislation



37,946



Net cash provided by operating activities on a non-GAAP basis

$                 141,772


$  102,555


$                   749,038


$                   664,945


Net cash used in investing activities

$                (405,729)


$   (10,229)


$                  (968,421)


$                  (290,992)


Net cash (used in) provided by financing activities

$                  (10,543)


$   (16,046)


$                    (17,135)


$                       6,416











Reconciliation of Financial Measures (GAAP basis to non-GAAP basis)

Three months ended
October 31,


Nine months ended
October 31,



2022


2021


2022


2021


Cost of subscription services revenues on a GAAP basis

$                  65,734


$    59,648


$                   188,722


$                 164,774


Stock-based compensation expense

(1,636)


(1,292)


(4,606)


(3,514)


Amortization of purchased intangibles

(1,126)


(1,005)


(3,342)


(2,826)


Cost of subscription services revenues on a non-GAAP basis

$                  62,972


$    57,351


$                   180,774


$                 158,434











Gross margin on subscription services revenues on a GAAP basis

85.1 %


84.3 %


85.2 %


84.9 %


Stock-based compensation expense

0.4


0.3


0.3


0.3


Amortization of purchased intangibles

0.2


0.3


0.3


0.3


Gross margin on subscription services revenues on a non-GAAP basis

85.7 %


84.9 %


85.8 %


85.5 %











Cost of professional services and other revenues on a GAAP basis

$                 88,173


$    69,916


$                  256,369


$                 203,023


Stock-based compensation expense

(13,227)


(9,616)


(37,035)


(26,579)


Amortization of purchased intangibles

(139)


(139)


(411)


(411)


Cost of professional services and other revenues on a non-GAAP basis

$                 74,807


$    60,161


$                  218,923


$                 176,033











Gross margin on professional services and other revenues on a GAAP basis

20.4 %


26.7 %


19.6 %


26.7 %


Stock-based compensation expense

11.9


10.1


11.6


9.6


Amortization of purchased intangibles

0.2


0.1


0.1


0.1


Gross margin on professional services and other revenues on a non-GAAP basis

32.5 %


36.9 %


31.3 %


36.4 %











Gross profit on a GAAP basis

$                 398,444


$  346,547


$               1,146,580


$                 997,481


Stock-based compensation expense

14,863


10,908


41,641


30,093


Amortization of purchased intangibles

1,265


1,144


3,754


3,237


Gross profit on a non-GAAP basis

$                 414,572


$  358,599


$               1,191,975


$              1,030,811











Gross margin on total revenues on a GAAP basis

72.1 %


72.8 %


72.0 %


73.1 %


Stock-based compensation expense

2.7


2.3


2.6


2.2


Amortization of purchased intangibles

0.3


0.2


0.3


0.2


Gross margin on total revenues on a non-GAAP basis

75.1 %


75.3 %


74.9 %


75.5 %











Research and development expense on a GAAP basis

$                 130,257


$    98,635


$                  377,740


$                 276,760


Stock-based compensation expense

(37,415)


(22,311)


(102,139)


(61,463)


Amortization of purchased intangibles

(29)


(29)


(85)


(85)


Research and development expense on a non-GAAP basis

$                   92,813


$    76,295


$                  275,516


$                215,212




















VEEVA SYSTEMS INC.

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (continued)

(Dollars in thousands, except per share data)

(Unaudited)



Three months ended
October 31,


Nine months ended
October 31,



2022


2021


2022


2021











Sales and marketing expense on a GAAP basis

$                   93,910


$    72,423


$                 259,642


$                 208,822


Stock-based compensation expense

(23,576)


(15,102)


(64,500)


(41,772)


Amortization of purchased intangibles

(3,555)


(3,464)


(10,550)


(10,210)


Sales and marketing expense on a non-GAAP basis

$                   66,779


$    53,857


$                 184,592


$                 156,840











General and administrative expense on a GAAP basis

$                   52,873


$    42,781


$                 159,030


$                 126,121


Stock-based compensation expense

(17,333)


(13,724)


(48,083)


(39,591)


Amortization of purchased intangibles

(57)


(57)


(169)


(169)


General and administrative expense on a non-GAAP basis

$                   35,483


$    29,000


$                 110,778


$                   86,361











Operating expense on a GAAP basis

$                 277,040


$  213,839


$                 796,412


$                 611,703


Stock-based compensation expense

(78,324)


(51,137)


(214,722)


(142,826)


Amortization of purchased intangibles

(3,641)


(3,550)


(10,804)


(10,464)


Operating expense on a non-GAAP basis

$                 195,075


$  159,152


$                 570,886


$                 458,413











Operating income on a GAAP basis

$                 121,404


$  132,708


$                 350,168


$                 385,778


Stock-based compensation expense

93,187


62,045


256,363


172,919


Amortization of purchased intangibles

4,906


4,694


14,558


13,701


Operating income on a non-GAAP basis

$                 219,497


$  199,447


$                 621,089


$                 572,398











Operating margin on a GAAP basis

22.0 %


27.9 %


22.0 %


28.3 %


Stock-based compensation expense

16.9


13.0


16.1


12.7


Amortization of purchased intangibles

0.8


1.0


0.9


1.0


Operating margin on a non-GAAP basis

39.7 %


41.9 %


39.0 %


42.0 %











Net income on a GAAP basis

$                 108,457


$  105,869


$                 299,173


$                 330,294


Stock-based compensation expense

93,187


62,045


256,363


172,919


Amortization of purchased intangibles

4,906


4,694


14,558


13,701


Income tax effect on non-GAAP adjustments(6)

(23,306)


(14,394)


(60,817)


(59,147)


Net income on a non-GAAP basis

$                 183,244


$  158,214


$                 509,277


$                 457,767











Diluted net income per share on a GAAP basis

$                       0.67


$        0.65


$                       1.84


$                       2.03


Stock-based compensation expense

0.57


0.38


1.58


1.06


Amortization of purchased intangibles

0.03


0.03


0.09


0.08


Income tax effect on non-GAAP adjustments(6)

(0.14)


(0.09)


(0.37)


(0.36)


Diluted net income per share on a non-GAAP basis

$                      1.13


$       0.97


$                      3.14


$                       2.81


 

________________________

(6)

For the three and nine months October 31, 2022 and 2021, management used an estimated annual effective non-GAAP tax rate of 21.0%.

###

Investor Relations Contact:
Ato Garrett
Veeva Systems Inc.
925-271-4204
ir@veeva.com

Media Contact:
Maria Scurry
Veeva Systems Inc.
781-366-7617
pr@veeva.com

 

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